Cryptocurrencies are still trying to find their way as numerous hurdles to higher prices remain. The king of cryptos, Bitcoin, has once again failed to put together a more sustainable upside rally, and numerous other currencies have traded largely sideways to lower. The entire sector appears to be in a holding pattern, and patient investors may look to wait for lower entry points or fresh news before getting into the market.
Lower trading volumes have been the subject of much discussion in recent days. Trading in Bitcoin has reportedly slowed considerably, and it is unclear if this is simply due to the summer doldrums in global markets or of there is something else at work. Volatility in many currencies has also declined in recent weeks, and the sector appears to be on the lookout for any fresh, bullish catalysts it can find.
In other news, a respected Bitcoin expert is sounding some alarm bells over the potential effects of a Bitcoin-based ETF. A recent article by Forbes.com discussed the topic at length. The article stated:
“Bitcoin and the world of cryptocurrency, though it has reached mainstream consciousness in recent years, is still a close-knit community, with some of the most established voices carrying a lot of clout among investors and companies.
One of the most respected voices is that of Andreas Antonopoulos, a tech entrepreneur-turned bitcoin evangelist and speaker — and Antonopoulos has now warned that a potential bitcoin exchange-traded fund (ETF), which would allow a raft of new capital to flood into bitcoin and cryptocurrencies, could be bad news for the burgeoning industry.
Antonopoulos’ warning over the future of bitcoin comes after Coinbase’s Brian Armstrong warned that mainstream adoption of bitcoin as a means of exchange could take longer than previously thought.
The U.S. Securities and Exchange Commission (SEC) is currently weighing whether to approve a bitcoin ETF, a request filed through the Chicago Board of Exchange (CBOE) by New York-based VanEck and blockchain platform SolidX.
While it postponed the decision until late September at the earliest, many expect the ETF arrive eventually (and if not the VanEck/SolidX ETF then another in the future).
The bitcoin price — as well as the price of other major cryptocurrencies — has been moving almost entirely on the prospect of this particular ETF over recent months, with the bitcoin price climbing to highs of $8,500 after reports the SEC was leaning towards approving the ETF in August.”
Bitcoin: Bitcoin saw a nice rally last week, although it was unable to hold it. After trading up near the 7k area, the currency has again seen all of its recent gains quickly evaporate. Without any fresh, bullish catalysts, the bears could potentially look to again test the 6k level. In addition, due to its status, Bitcoin could potentially weigh on the entire sector or could provide a lift if higher prices are seen.
Bitcoin Cash: This crypto has been primarily range-bound again this week, and seems comfortable in the $525-$575 range. The market is still in a longer-term downtrend, however, and the bulls have had little to cheer about in recent action.
Ethereum: This crypto continues to show little upside in recent action, and will need to overcome some key resistance before possibly moving higher. The market briefly traded for well over $300 in recent action, but has succumbed to selling pressure again.
Ethereum Classic: This crypto has been seeing some buying interest, but like other currencies it has failed to hold any significant gains. The $15 level appears to be near-term resistance at this point, and a test of recent lows cannot be ruled out. prices may have to hit $10 or lower before finding more willing buyers.
Litecoin: This crypto has traded in a fairly tight range, with little to show on the upside. Current consolidation in the $50-$60 area could eventually give way to fresh lows. Like many other currencies, Litecoin may need to see some significant bullish price action in the sector before gaining any positive momentum.
Ripple: This crypto has been seemingly stuck in the $.32-$.35 range for the last several sessions. Like other currencies, it could potentially drift for some time as investors await any fresh, bullish inputs. Although the larger time frames are looking a bit more constructive at this point, the currency does remain vulnerable to another wave of selling that could take prices to fresh lows.