The crypto markets are locked in a sideways struggle, with both bulls and bears failing to push the price of bitcoin away from the $7,200 level.
Though the Crypto Fear & Greed Index is still lurching towards extreme fear, technical indicators are beginning to flash green. A weekly golden cross has formed on the bitcoin chart, which suggests that although the cryptocurrency market is still in the doldrums, its long-term fortunes could be set to change over the next few weeks.
Golden cross gives bitcoin bulls hope
Just as the bitcoin bears are becoming very confident, the 50-week moving average (orange) has crossed over the longer-term 100-week moving average (blue), forming a golden cross for the first time in over three years.
This bullish breakout pattern indicates a long-term bull market going forward, which would be supported by several fundamental factors. Along with the entry of institutional platforms like Bakkt, and increasing volume on professional exchanges like CME, 2019 has seen monthly active addresses on the Bitcoin network grow substantially.
The Bitcoin network now has far more active addresses than any other blockchain, cementing its status as the blue-chip cryptocurrency, and suggesting an increase in on-chain demand.
But before this success is reflected as price action, investors might have to suffer more downturn. In a recent video, veteran trader Peter Brandt explained how he thinks bitcoin could eventually make it to six figures but first is likely to drift down to an eventual low around $5,000 in July 2020.
As for now, bitcoin needs to break out of the bearish channel before the bulls can get the upper hand. On the way to meet sellers at the top of the channel at around $9,450, the price is likely to face resistance at several other levels, including the immediate resistance at $7,500.
If price moves lower from here, immediate support is likely to be found at around $7,100.
Istanbul fails to generate gains for Ethereum
Gone are the days when a hard fork meant wild price action as traders piled into a cryptocurrency in anticipation of free money when the blockchain split in half.
Ethereum’s Istanbul fork, which rolled out on Saturday, has not resulted in two competing cryptocurrencies, and instead represents just another step towards the eventual implementation of the Serenity upgrade. This will shift Ethereum’s consensus mechanism from Proof-of-Work to Proof-of-Stake, theoretically reducing transaction costs, increasing transaction speeds, and minimizing energy usage on the network.
On the chart, the price of Ether hasn’t registered this milestone in development and remains bogged down by the generally fearful sentiment of the crypto markets. Just like last week, the price is now sitting between support at $140 and resistance at $150.
Tezos surges against the tide
Tezos refuses to follow bitcoins lead and has defied broader cryptocurrency markets this week with a 30 percent surge to become the tenth largest cryptocurrency by market capitalization. This puts the cryptocurrency in good company—ahead of Stellar and just behind Bitcoin SV.
This rally tops off a year of positive trading for Tezos, which has outperformed bitcoin in 2019 as exchanges have cashed in on staking. The coin started moving up in late November as Coinbase added Tezos and only climbed even further as Kraken joined the party on Wednesday.
XRP continues to fall
Ripple’s XRP has suffered the worst of the downturn this year, with price now down 93% from the height of the bear market, compared to bitcoin which is down 63%.
And yet there looks to be more downside in store—the ailing cryptocurrency is now testing the key $0.21500 support area against the US dollar.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.