Hello dear subscribers and Rubikators. You know, last week the market was quite active, low and high as always.
So during the following lines we want to show you the market perspective in a general way.
Quick News To Highlight
We will not fill the tank today with much news. But we must emphasize that Enjin launched its market place as we reported earlier and the acquisition of Icelandic crypto trading firm Algrim by Ripple to make an expansion in Europe.
Also, the association by several exchanges to guarantee the security of its investors in the question of which assets have better security.
theblockcrypto says that Ripple has a score of 4, while EOS, Stellar and Tezos scored 3.75. Bitcoin, Litecoin, Monero and Dai scored a perfect 1.
Price Volatility Bounces Back
According to tradeblock, after touching a recent low, price volatility in the space bounced back as digital currencies experienced a sudden crash this past week.
Volatility had been decreasing week over week as bitcoin consistently traded around $10,000 per coin over the past several weeks.
This calmness was short lived, however, as bitcoin experienced a sudden crash on Tuesday and then continued to bleed lower over the next few days before staging a modest recovery.
In the figure below we diagram 60 day price volatility for bitcoin. As shown, bitcoin volatility had been trending lower before the recent surge in activity.
Total Market Capitalization & Sentiment
Over the weekend, as with most other weekends, crypto markets were relatively quiet and we saw total market capitalization bouncing within a tight range of ~$212.1 billion and ~$217.6 billion, and according to coinmarketcap.
However, just a few hours ago, total market capitalization dipped below that range to $209 billion, but quickly rebounded to $219.8 billion where it currently remains. 24-hour volume registered an average of $50-$59 billion over the weekend.
With respect to the feeling and activity of the community, alternative.me and santiment shows us that it has fallen in the last days and the fear within the market remains. Even investors do not feel very confident.
Bitcoin Could Surprise Us In the Next Few Days
Bitcoin is currently trading around at ~$8,221. Just a few hours ago, it was trading below the $8,330 mark at ~$7,840, for the first time since mid June 2019.
The $8,000 region is one to take notice of, as it a moderate support level for Bitcoin. Back in mid May to mid June, Bitcoin broke to the upside of this zone and shortly after commenced its parabolic rise to ~$12,500.
That zone for now behaves like a zone of accumulation and supported by the EMA300 in the daily chart.
Should Bitcoin break below this support zone, we could very well see it falling back to $4,000-$6,000 range.
Also, on the daily chart, the 50-day EMA line is also about to cross to the downside of its 100-day EMA line, signaling a bearish cycle approaching.
RSI is at ~28, indicative of strong bearish momentum as well, and MACD indicator It still does not show a reversal signal in the daily chart.
In the case of the weekly chart we are a bit confused if the candle that was opened means a possible price reversal. We are really hopeful that the trajectory we had traced since last week will happen.
What we do know in the weekly chart is that the price is supported by the EMA50. But we have a problem: next weeks we will have a cross between the EMA9 and the EMA21 and if we see past hysterics, what really happened was a price drop.
Anyway we will continue to evaluate continuously. The market always has some surprises up its sleeve.
On the other hand, it is clear that the MACD indicator for the weekly period continues to show us a decline and a negative price correction.
RSI marking 41 points on the weekly chart tells us that bitcoin is slowly leaving the oversold zone. The problem in general is that the indicators show us a mixed trend.
See you in the next story, With Love 💛, Rubikators Team.
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