Bitcoin breaks above $7200 as Dogecoin, ReddCoin, MonaCoin and Nano lead the alt retracement
Bitcoin broke over $7200 yesterday and several signs indicate that the move is slowly over-extending itself. Indicators are turning short-term bearish; another important moment was the fact that over 10k BTC shorts have been opened in a past couple of hours by a whale on Bitfinex. Add to this the overwhelming bullishness of Crypto Twitter and you have the perfect recipe for a dump. However, the bulls are still apparently very strong and willing to absorb anything that the market throws at them.
massive absorption at hidden buy wall at 7320 on finex pic.twitter.com/WEIjoUnpOx
— zyzz (@CryptoZyzz) September 2, 2018
We looked at what the trading world had to say:
Bitcoin (BTC)
LNE posted the following analysis of BTC technicals:
“There are 2 clear directions on the chart right now. I believe we are in a 5 wave impulse – in the 3rd subwave of the 1st primary. If this is the case the 3rd subwave should hit around or just under $7,400 and then retrace as low as $6464 (it is possible to turn on a higher Fibonacci line) This is worst case scenario for this pattern. Then I see the 5th wave headed to the $7,700s. If this is an ABC pattern we will break $6464 and keep heading lower.”
Their analysis asks a question “does direction matter” both in real life and in trading, so check that out on this link if you are interested in having a discussion about these concepts. ReinisLeja gave us a short overview of the graph/MACD/RSI/Stoch RSI and left an even shorter comment beneath:
“Looks very the same situation as in the last rally.”
Trader alexyeoh commented below:
“Weekly MACD just crossed over for the first time in 2018. Bull run.”
@TheCryptoMonk presented the following target for BTC:
$BTC on its way to the next target. pic.twitter.com/UL1HNbyUwM
— The Crypto Monk ⛩ (@TheCryptoMonk) September 1, 2018
Ethereum (ETH)
Trader super55 thinks it is a good time to short ETH:
“I think that this triangle is still alive. Sell from market.Stop loss – daily candle close above 304.3. Targets – 203.5 & 180. Set 0.2…0.5 your standard risk for this trade. From green zone I expect new uptrend.”
Ripple (XRP)
TotoParasca thinks XRP is in for a positive move:
“Ripple is in a good shape to continue the increase at it has just crossed the downwards trend and is looking to find the touch for the uptrend.”
Bitcoin Cash (BCH)
CryptoTradeSignals listed several positive FA developments which could lead Bitcoin Cash into a bullrun. The latest ones he cites are:
- September 1: CoinEx Exchange announces they will create a BSV token and award them to users on a 1:1 basis with their Bitcoin cash (BCH) holdings, based on a snapshot at the time of the fork — should such a fork happen.
- September 2: The cryptocurrency payment processor Bitpay just recently the firm added Bitcoin cash support for merchant invoices and the company’s debit card loads.
Check out the full list of BCH bullish signs from the year of 2018 here.
Other thoughts
The rest of the market has cooled off, temporarily halting its run upwards. After running up 240% over a couple of days, even Doge decided to take a seat for a while.
I hope you took profit on $DOGE.
Would be bad to give it back to the market. pic.twitter.com/kMbUzCfaCp— The Crypto Monk ⛩ (@TheCryptoMonk) September 1, 2018
During the last 24 hours, Verge was the best market performer with a rise of around 17%. This might mean that retail, uninformed money is starting to move in so take that for what you will. Holochain was the only other project that broke double digits with 12%. The red zone was much more populated this time around as Dogecoin led the pack with a 20% retracement from its yesterday’s levels. ReddCoin, another heavy gainer just a day ago, now retraced 11% and was followed up by MonaCoin (6%) and Nano (5%). For now we wait and see what happens tomorrow, but the signs are piling on that BTC doesn’t plan on going under $6800 anytime soon.
