Cryptocurrency markets have moved sideways this week, with large-cap coins locked in a range just above the local bottom formed at the end of November.
But some smaller altcoins are bucking the trend—Enjiin Coin has stolen the spotlight with a 50 percent jump on news of a partnership with Microsoft, and Ravencoin is moving up on a technical breakout from a bullish falling wedge pattern.
Bitcoin rebound capped at $7,400
After failing to break upwards, bitcoin is trading in a tight range between $7,100 and $7,400.
The market was suddenly invigorated on Wednesday morning when bitcoin painted one of its characteristic ‘Bart Simpson’ patterns on the chart. First the price ripped up vertically—jumping from $7,200 to $7,800—then after skipping around for a while, it dipped straight back down, making a perfect outline of the mischievous cartoon character.
In technical terms, the sharp spike and sudden drop of the ‘Bart pattern’ is just a more drawn-out version of a stop-run, or a bull trap, which wipes out the stop losses of open short positions before resuming the original trend.
But, on Wednesday, there was another big event that offers an explanation for the sudden move.
As Twitter account Whale Alert pointed out, a single large trader—thought to be from cryptocurrency exchange Bittrex—moved $8.9 billion on the Bitcoin blockchain in a single hour, setting a new transaction record.
Since then, Bitcoin price action has been uninspiring and has failed to stay above $7,400 where bears are waiting with strong selling pressure.
When the price finally breaks out of this range, it is likely to be sudden and violent—a move upwards could push up to face resistance at $7,800 or beyond, and a move down below the bottom of the range at $7,100 is likely to test the low at $6,500.
Ethereum waits patiently for Istanbul fork
Ethereum is gearing up for the Istanbul hard fork set for release during the early hours on the 8th of December.
DeFi continues to drive growth on Ethereum, with 38,000 new addresses added in a single day according to blockchain analysis firm intotheblock, and, accounting giant Ernst & Young has released an open-source code that drastically improves privacy and transaction efficiency on the blockchain.
On the chart, the price of Ether is capped below $150. A move above here is likely to push up against further resistance at around $160, and then $200. To the downside, long-term support can be found around $140.
Ravencoin breaks out of falling wedge
Buyers are in control of the price of Ravencoin, which posted strong gains on Wednesday as it broke out of a bullish falling wedge pattern. This signals potential further gains in store, with resistance levels to watch along the way at around 400 sats and 460 sats.
Enjin Coin surges 50 percent
Enjin Coin is proving to have a knack for forming lucrative partnerships.
The cryptocurrency first scored a deal with South Korean tech firm Samsung in March, pumping the price more than 70 percent. And now this week, Enjin Coin has embarked on another moon mission after Microsoft revealed it would be using the protocol for a system that rewards the developers of Microsoft Azure’s open-source projects with collectible tokens, or ‘digital badgers.’
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.