Another sensational report from Financial Move in partnership with Monnos!
We live a little bit strange nowadays right? Bitcoin does not "know whether to go or stay" and this has caused a lot of anxiety.
At the moment, due to this lack of definition, the entire market is taking care of the possible next wave of volatility (will we go up or down?!)
But, this is what you want to understand better here, right? So let's go deeper.
This study will sweep the cryptocurrency market and filter the best opportunities for you.
The study below is not a guide to buying or selling. Manage your risk properly.
Market and Bitcoin Overview
Graphical analysis of weekly bitcoin 07/12/2020
Bitcoin is in a zone of lateralization, that is, bitcoin is without a main meaning at the moment.
The main resistance of the moment is the zone of U $ 20,000 (twenty thousand dollars).
An interesting fact is that Bitcoin managed to stay above U $ 19000 and very close to U $ 20000, which is already one more factor, to strengthen this break.
However, in general, it is better to protect capital in USD (or your preferred currency) and wait for a new direction from the markets.
If BItcoin positively breaks the $ 20,000 mark, we will have a strong bullish wave, with no predefined target, since euphoria will take over the market.
If rejected, we believe that the first setback zone is at $ 17,000 and, if not, we may see Bitcoin in the $ 12500 range, a drop of approximately 30%.
Analysis of Altcoins
Analysis of alternative cryptocurrencies, called altcoins
The only positive that we highlight for the week is Ripple.
Ripple has an Airdrop that will take place on December 12th, this tends to be another catalyst for a possible rise in the currency.
However, as we always talk about here, there is a risk that Bitcoin will fall, if it does, the entire market will follow Bitcoin's decline, ignoring any independent analysis.
Ripple Analysis (XRP)
XRP / BTC
Graphical analysis of the XRP (Ripple) cryptocurrency in the 4 hour graphic time
Ripple in the XRP / BTC pair is in a bullish trend.
A symmetrical triangle has just broken that indicates continuity of the trend.
In other words: Continuity of the upward trend.
At the moment, it finds good support in the region of 3000 satoshis.
Resistance in the range of: 3600 and 3900.
XRP / USDT
Graphical Ripple Analysis (XRP) in the USDT (Dollar) pair
At the moment, the ripple is trading for $ 0.59709.
The Design is similar to the price on the pair in btc, so we have two positive factors that increase our probability of a rise in Ripple.
Only caveat, is that a fall in Bitcoin would bring down ripple along.
Among all the market's alts, our analysis highlights ripple as the greatest probability of success in the week.
Supports: $ 0.58 - $ 0.60
Resistance: U $ 0.67; $ 0.75; $ 0.84
By: Isabela Ruiz Roque da Silva
HashRate (Total Hash Rate)
The Total Hash Rate (TH / s) is a metric to measure the mining power of the blockchain network. The higher the number of hashrates, the greater the security of the network and the greater its resistance to attacks in general. It is an important metric for analyzing miners' investments in mining equipment and long-term investments.
Figure 1. Total hash rate on the 29th of November. Source: Blockchain.com.
Figure 2. Total hash rate on December 5th. Source: Blockchain.com.
Last week, we saw a slight decrease, followed by a slight increase in the total hash rate and then a stabilization of the rate. This stabilization is due to the fact that miners are maintaining their mining power in Bitcoin, which is keeping cryptocurrency high. For this week, we can still have an increase in the rate and also an increase in the price of cryptocurrency, as we are close to US $ 20,0000 dollars.
NVT (Moving Value)
The NTV is an indicator that indicates whether the price of Bitcoin is in line with the financial volume of the cryptocurrency in the last 90 days: if the price of the cryptocurrency has gone up and there is little volume in the market (few transactions in the currency), the indicator will always show a peak.
Figure 3. Bitcoin NVT, November 29, 2020. Source: Coinmetrics.io.
Figure 4. Bitcoin NVT, December 5, 2020. Source: Coinmetrics.io.
Looking at the graphs of Bitcoin's NVT, we can see that last week we had a drop in the value of NVT, followed by a sharp rise. Currently the NVT is above 80, so we still have a little bit of slack up to 100, which could give the Bitcoin price a little boost up to $ 20,000 more. But we need to be cautious at this point because if the NVT reaches 100 during that week, the price could fall considerably in the short term.
Of course, we always need to look at the scenario as a whole and not just an indicator.
The market scenario is calling for a more defensive stance.
In particular, we are protecting our capital in USD and expecting a breach that, if it occurs, we will re-enter bought again.
If Bitcoin falls, we will be avoiding a potential 30% drop in our equity, as the $ 13,000 range could be hit if Bitcoin fails to break the $ 20,000 mark.