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Bitcoin Price Drops to $4,200 Despite Record Low On RSI

Bitcoin’s price continues to slide despite the oversold conditions signaled on the technical charts for the last six days.

The leading cryptocurrency by market capitalization fell to $4,200 soon before press time – a price low not seen since Oct. 5, 2017 – and was last seen trading at $4,484, according to CoinDesk’s Bitcoin Price Index (BPI).

Notably, the 14 percent drop witnessed in the last 24 hours has pushed the widely followed 14-day relative strength index (RSI) below 10.00, its lowest reading on record. An asset is considered to be oversold and due for a corrective bounce when its RSI is below 30.00.

BTC’s RSI fell into oversold territory on Nov. 14, but a strong recovery rally has still not materialized. That said, a corrective bounce might be seen in the next 24 hours or so, as the low on the RSI is backed by a rise in BTC/USD longs.

Daily chart

As seen above, BTC has dropped 34 percent in the last five days, despite being so oversold.

The cryptocurrency’s inability to produce a notable recovery rally in such conditions could be considered a sign that bearish sentiment is currently very strong. Still, the bears should exercise caution in the next 24 hours.

BTC/USD Longs on Bitfinex

As seen above, long positions hit a 3.5-month high of 31,719 earlier today, having risen 34 percent in the last six days – both of which indicate that investors are buying the current dip.

Weekly chart

A corrective bounce, if any, will likely be short-lived as both descending triangle breakdown and the break of the seven-year-long rising trendline has likely set the tone for a drop to $4,100 (trendline connecting the January 2015 and April 2017 lows.)

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  • The record low reading on the RSI and the steady rise in long positions indicates scope for a minor bounce, possibly to the descending 5-day EMA, currently at $5,050.
  • The weekly chart continues to favor a drop to the long-term rising trendline support of $4,100.
  • The immediate bearish outlook would be invalidated if a correction ends up pushing prices above the 10-day EMA of $5,424.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin image via Shutterstock; Charts by Trading View

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Bitcoin Price Hits 13-Month Low as Crypto Market Slumps

Bitcoin (BTC) dropped to its lowest level since October 2017 on Monday, as losses are seen across the broader crypto market.

The leading cryptocurrency fell to $5,165 earlier today – the lowest level since Oct. 18, 2017 – having breached the crucial support of $6,000 last week.

As of writing, BTC is changing hands at $5,283 – down 5 percent on a 24-hour basis and 16 percent week-on-week – according to CoinDesk’s Bitcoin Price Index (BPI). Further, the year-on-year loss now stands at 32 percent, as prices were trading well above $7,600 on Nov. 19, 2017.

Elsewhere, ethereum’s ETH token, cardano and Tron are also flashing double-digit losses on a 24- hour basis. Notably, ETH fell to $155 earlier today, the lowest level since July 16, 2017, as per CoinMarketCap. Meanwhile, XRP, the second-largest cryptocurrency as per market capitalization, is reporting a 6.5 percent drop. Only nine out of top 100 cryptocurrencies by market capitalization are trading in the green and three out of the nine are stablecoins pegged to fiat currencies.

The sharp losses in the major cryptocurrencies have pushed the total market capitalization down to a 13-month low of $172 billion. In the last five days, the total value has dropped by more than $30 billion.

The risk aversion could worsen in the near-term, as bitcoin is looking increasingly weak on the technical charts.

Weekly chart

As seen above, BTC closed last week (UTC) at $5,560, confirming a downside break of the nine-month-long descending channel – a bearish continuation pattern.

The cryptocurrency also closed below the 100-week exponential moving average (EMA), which had been acting as support since June. More importantly, both 50- and 100-week EMAs have shed bullish bias.

The 14-week relative strength index (RSI) of 37.00 is signaling scope for a deeper sell-off.

Therefore, BTC risks falling below the psychological support $5,000 in the near term. Major support below that level is seen around $4,100 (trendline connecting the January 2015 and April 2017 lows.)

Daily chart

Over on the daily chart, the RSI of 15 is indicating that the sell-off is overdone. Hence, a sustained break below the psychological support of $5,000 looks unlikely in the short-term.

4-hour chart

The RSI on the 4-hour chart is creating a higher low, despite the lower low on the price chart, marking the development of a bullish divergence. The divergence would be confirmed if the RSI continues to post higher lows and the 4-hour candle closes in the green. That would open the doors to a corrective rally.

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  • The bearish weekly close has likely set the tone for a drop below $5,000. In the short-run, however, BTC may defend that psychological support level, courtesy of the oversold conditions on the daily chart.
  • A minor corrective rally to $5,800 may be in the offing, but that could reinvigorate the bears and bring a sustained drop towards the long-term rising trendline support, currently seen at $4,100.
  • A move above the former support-turned-resistance of $6,000 would invalidate the bearish setup.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

Bitcoin chart image via Shutterstock; Charts by Trading View

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Israel: Crypto Investment House Launches Two New Funds for Institutional Clients

Israel’s first dedicated crypto investment firm for institutional investors has launched two new funds this month, and expects to have $50 million in AUM by the end of 2018.

Israel’s first dedicated crypto investment firm for institutional investors, Silver Castle Ltd., has launched two new crypto funds this month, Bloomberg reported Nov. 18.

The firm – whose high-profile lineup includes the former CEO of Israel’s largest bank, Bank Hapoalim, as well as the founder of the country’s largest investment fund, Psagot Ofek – reportedly expects to have $50 million in assets under management (AUM) by the end of the year.

As Bloomberg notes, global competition is fierce for crypto investment funds today, with over 370 crypto-focused funds with as much as $10 billion in AUM collectively, citing data from Autonomous Research.

Silver Castle CEO Eli Mizroch told Bloomberg that the fund has been focused on building “very, very high security” infrastructure to provide institutions with exposure to the crypto market.

Speaking of the investment group’s establishment, he underscored the importance of the country’s dynamic blockchain ecosystem; Israel has seen an over 200 percent increase in the number of local blockchain companies since 2015, according to data from Startup Nation Central, an NGO dedicated to the local innovation space.

Globally, Mizroch pointed to U.S. investment giant Fidelity’s recently-launched digital assets business as a watershed for international-grade investment services for the crypto sector.

The first of Silver Castle’s two new funds is reportedly based on an algorithmic trading system that combines both long and short-momentum strategies for the five largest coins by market capitalization.

Despite the year’s protracted crypto bear market, Mizroch told Bloomberg that in-house use of the fund achieved “high double-digit” returns in dollar terms for its portfolio.

The second fund is fully invested and automated, and is based on an algorithmically-weighted basket of the top ten crypto assets by market cap, Bloomberg reports. In addition, a token-based fund focused on Initial Coin Offerings (ICOs) is slated for launch before the end of 2018.

Gadi Isaev, founding partner of the Israeli Blockchain Association, has emphasized that Silver Castle’s establishment demonstrates that “pioneers” of the Israeli financial industry have entered the cryptocurrency space. He told Bloomberg that the move was “a landmark event for the entire Israeli market.”

As reported earlier this month, 140 Israel-based blockchain companies attracted $1.3 billion in investments, as of the third quarter (Q3) of 2018, wherein $600 million was raised via ICO.

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Binance Set to Make XRP Its Base Currency?

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Binance Set to Make XRP Its Base Currency?

In the tweet, the CEO of Binance is noting the strength of the XRP community, and asking its brethren to send him their best pitches for why he should pair every coin on the exchange with the digital asset.

He was also responding to suggestions from the XRP fans who believe that doing so would help cushion most altcoins from Bitcoin’s volatility. Additionally, an XRP base currency would allow cheap and efficient movement of value between exchanges.

CZ did something unexpected though. He actually included a LinkedIn link that gives tips on how to get your coin listed on Binance.com. Of particular importance, is the following statements in the step-by-step instructions:

“We require the project founder or CEO to fill out the form. Why? If there ever is a bug with your wallet, a fork or double-spend in your blockchain, we need to talk to a key person.”

After taking over Ethereum as the world’s second largest cryptocurrency, XRP investors say Binance should pair all of its cryptocurrencies with XRP. Just for a reminder, after a close battle with and surpassing Ethereum in total market cap twice in a month, XRP has now managed to edge out the rival and grab the second spot right behind Bitcoin.

This is mainly due to Ripple’s efforts to expand its customer base over the recent months. More banks are joining the RippleNet where XRP is used as a base currency in cross-border funds transfer using xRapid.

The latest addition to the list of Ripple’s partners is CIMB. CIMB Group, the fifth bank in ASEAN adopts Ripple’s tech and enters RippleNet, the company’s network of banks. This will allow the bank to provide its customers with instant cross-border payments.

According to Ripple, CIMB is one of the first banks to leverage blockchain technology in a region where payments are historically slow and efficient.

“Ripple’s blockchain-based solution has been deployed to enhance CIMB’s proprietary remittance product called SpeedSend. This service allows customers to send and receive money with direct account crediting and instant cash collection. The enhancement improves their access to cross-border remittances across the globe — both inbound into ASEAN and outbound to other countries. It is already enabling remittances to corridors such as Australia, USA, UK and Hong Kong.”

There is a small, but growing list of cryptocurrency exchanges that have adopted XRP as a trading base standard. Last August, AlphaPoint, a financial technology company that helps companies access the blockchain and make illiquid assets liquid, launched DCEX, a next-generation digital currency exchange for retail and institutional investors that was the first exchange to have XRP as its exclusive base currency.

This Binance’s move could further detach altcoins from the price swings of Bitcoin. And if multiple exchanges add XRP as a base pair, traders could easily utilize the speed of XRP to move value between exchanges.

Shaky Ground for Bitcoin

The recent upgrade of the Bitcoin Cash network sparked a fierce hash war between the camps of Craig Wright’s Bitcoin Cash Satoshi Vision (BCHSV) and Roger Ver’s Bitcoin Cash ABC (BCHABC). As a result, Bitcoin was affected price-wise, dragging the entire market down with it. After BCH hard fork has completed, Binance announced that they added both a BCHSV and BCHABC trading pair to their website, indicating it will likely honor both Bitcoin Cash forks, issuing double tokens to all BCH holders.

There is a good percentage of investors that already have turned to other alternatives looking for better utility and security. In that sense, XRP has emerged as a pretty great choice. The fact that the crypto is slowly recovering even as Bitcoin and others struggle to stay afloat adds to the charm.

The reasons the community has cited as to why XRP should be the base on Binance are that is already a base on the CoinField Exchange and also the base currency on the XRP United Exchange.

One of the biggest rating companies Weiss Ratings already in August shared in their Tweet that they agree XRP should be the base.

The truth is, XRP has proven itself in the past week as it gained value as the rest of the market fell due to the Bitcoin Cash Hash wars, it’s fast and has cheaper transaction fees and it won’t hurt to know that it will definitely attract more users towards trading on Binance.

Just day before this Binance announcement, Ran Neu-Ner, the host of CNBC Africa’s “Crypto Trader”show, said that these hash wars highlight why everyone should dump BTC and BCH and just put all their money into XRP.

At the time of writing, XRP has been trading at $0.4837 while in the red by 5.37 percent with a market cap of $19.4 billion while Ethereum is down by 7.76 percent at $168 with a market cap of $16.8 billion.

Binance Set to Make XRP Its Base Currency?

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Bitcoin (BTC) Price Bloodbath Continues as ‘Unsustainable’ BCH War Rages

Bitcoin price slides another 5% today as the civil war raging within Bitcoin Cash continues to impact cryptocurrency markets and altcoins taking hits topping 10 percent November 19.


Bitcoin Price Slides as Uncertainty Spreads

Data from Coinmarketcap showed a gloomy picture for altcoin investors at press time, the top twenty assets by market cap all in the red, pushing the entire cryptocurrency market cap down to under $175 billion USD, a yearly low. 

With no end in sight for the infighting between rival Bitcoin Cash factions, an attempt to reverse last week’s losses on Friday ended in defeat for both Bitcoin (BTC) 00 and altcoins, all major cryptocurrencies sustaining further drops after the weekend.

In the top twenty, those drops were led by Tezos (TEZ), which fell by close to 15 percent, followed Neo (NEO), Ethereum Classic (ETC) and Tron (TRON), all of which lost more than 12 percent in 24 hours.

Ether (ETH) 00, still lagging behind Ripple’s XRP token in the market cap listings, also hemorrhaged value, knocking off another 11 percent to hit $157 – its lowest price since July 2017.

Bitcoin appeared to avert similar problems, circling support around $5,200 on the back of a $300 fall Monday.

Cohen Decries Bitcoin Cash ‘Shitshow’

Meanwhile, exchanges have begun issuing official statements on how they intend to handle the fallout from BCH’s controversial hard fork.

The picture is a complex one, with no clear preference among market participants for Bitcoin Cash ABC or Bitcoin Cash SV, while both chains continue to vie for hashing power.

US-based exchanges Kraken and Bittrex have opted to support SV, while ABC’s major proponent in the form of Bitmain co-founder Jihan Wu has publicly stated he would sell his entire 1 million token allocation of SV holdings.

While the BCH token 00 continues to trade at a moderate loss, commentators are preparing for more volatile events as the situation continues to unfold.

Bram Cohen, the BitTorrent creator who has become a regular voice on the cryptocurrency market, forecast the Bitcoin Cash hashrate war could not continue indefinitely and described it as a “shitshow.”

“The current status of Bitcoin Cash is fairly clear, but it isn’t sustainable,” he wrote on Twitter.

“It’s split into two separate things, both of which have comparable hash rate to what the whole thing had previously[.]”

What do you think about Bitcoin Cash’s impact on markets? Let us know in the comments below!


Images courtesy of Shutterstock, Twitter, coin360.io