Cryptocurrency Market Outlook; Bitcoin Is Dragging Them All Lower
No Catalysts In Sight; Bitcoin Moves Lower
With no catatlysts in sight it is very likely Bitcoin will move lower. As Bitcoin goes so too does the Crytpocurrency market. Traders need to be prepared for lower prices and I don’t just mean with your bearish positions. The next move lower is going to test key support levels that are going to make or break the market. For Bitcoin, this means a retest of $8000 that may goes as low as $7500. Such a move would sorely test the market but not break BTC/USD out of its current consolidation range. If $7500/$8000 confirms as support the bullish flag pattern that is forming on the weekly chart is still intact.
The indicator set up on the weekly chart gives a clue that makes me at least optimistic key support will hold. The indicators are diverging from the news lows in a way that could result in a strong buy signal. Note I say “could result” that buy signal is not yet present, this set up could also lead the coin lower. It all comes down to support, if the market is as bullish as I am on BTC for the long-term support will kick in. If not, well if not then BTC is likely headed down to $6,000, $5,000, $4,000 and $3,000. A close below $7,500 would be incredibly bearish.
Other coins are moving lower as well. The lack of clear catalyst, the growing number of seemingly indistinguishable coins/token, and a public less than enthusiastic about the what/why/how of it all are all playing a part. Ripple, the so-called answer to cross-border banking, is not immune. The coin has seen some adoption but not the kind to drive up its value. In fact, XRP has fallen below its 30-day moving average and on its way down to $0.24 and $0.22.
Litecoin is also showing some bearish tendencies. It, too, has fallen below the short-term 30-day EMA and looks weak. The indicators are bearish but show oversold conditions so the move may not be too deep when and if it comes. At best, bears can expect to see LTC retreat to support at the $50 level. A move below $50 would be bearish but that is not expected now.
Not surprisingly, the Basic Attention Token is holding up rather well while the broader cryptocurrency market wallows. The Brave Browser now has over 8 million active monthly users and that means demand. BAT tokens have utility over the Brave network because users get paid to see ads, if an advertiser wants to use the network they have to buy the tokens. The BAT token is now testing a four-month high and likely to head higher. Resistance is at the $0.28 level, a break above that would be bullish. Until then, traders should watch for signs of buying at or between $0.26 and $0.24.
