Crypto review January 10, 2020
What do we see in the crypto market?
BTC
Bitcoin quotes met strong support in the area of $7,000 in the pair BTC | USD. In this area, an increase in bullish volumes was observed, the price rebounded by an impulse.
At the same time, there was no positive news on bitcoin, there are none, cryptocurrencies lower their forecasts voiced earlier, cryptocurrencies themselves are gradually starting to be regulated at state levels, the number of bitcoin wallets is gradually growing, blockchain technology is becoming popular among an increasing number of legal entities.
If you look at bitcoin for several years, it becomes clear that the price of $ 8,000 is not so low. By the way, in 2019, Bitcoin met in the area of $ 3,500 and showed x2 growth over the past year.
Looking at the weekly chart with a naked eye, one can see that the past few weeks are more like a correction within the global downtrend than an activation of a growth wave.
In order to boldly declare medium-term growth, a puncture is required downward amid high volatility, followed by a return to the level. While this event is not observed - it is too early to build forecasts.
But in the context of geopolitical tensions in the Middle East, bitcoin quotes can sharply strengthen from their current positions, because investors don't like to keep their savings in assets that react violently to such circumstances.
The conflict between the United States and Iran may establish its own rules of the game in the financial markets. Bitcoin against the background of these events is quite capable for some time to act as an asset - a haven.
ETH
A direct correlation with bitcoin is reflected on the air. The more advanced cryptocurrency working on the 2nd generation blockchain is surprisingly less popular among the masses.
Despite the general correlation, as a percentage, Bitcoin is trading slightly above the ether. Does this mean that the ether is more stable? - We don’t think, it’s rather a lack of demand.
The beginning of three-fold growth in Alcoin at the beginning of 2019 was laid at around $110, now the air is trading slightly higher, while there are no obvious signals for a reversal in the older charts.
The probability of growth in 2020 is strong enough, but you need to buy wisely. The general mood in January is uncertain, but geopolitical risks may provide some support for quotes as part of investors' flight from risk.
Why cryptocurrency and why ethereum?
- Gold is already trading at local highs, and buying at inflated prices without waiting for a correction is a strategy that goes against the thinking of sophisticated and qualified investors.
The air against the background of other protective assets looks much better. Not so volatile, the price is underestimated, but indicators in the oversold zone.
XRP
Ripple falls lower and lower. Despite the popularity of technology among international banks, one of the most significant alcoins ended the year to put it mildly not very.
The price for investment purposes is more than attractive, but there are simply no drivers for growth. The ability of XRP to meet the needs of banks and enter into contracts with new and new markets participants does not add positive quotes, but maybe this has some secret meaning?
In any case, the coin is greatly oversold, and growth to 2.4 already seems like a myth. Short-term coin speculation will not work, since the spreads and commissions on the instrument are so high that any benefit from this venture is simply lost.
The chart both in the long term and in the short term looks completely unattractive. Of course, it is at such moments that the most serious movements are born, and the most serious money is also earned, but, in our opinion, there is no confidence in this tool yet.
Trading volumes are poor. For growth, you will definitely need a serious info line. Let's wait. So far, the general mood of the market is a sluggish downward consolidation.
On the other hand, the price will not go to zero. The task is to understand: where does this tool have a bottom ...
Considering that many XRP partners are banks in the Middle East, a sharp transition to the upward phase as part of an escape from risk is not excluded.
This cryptocurrency is closer to the Arab countries than its counterparts, while the price in percentage terms is much lower than that of other coins on world exchanges.