Bitcoin ( BTC )

Current Price: $8,000

Last 7 Days: -0.78% 

Last 30 Days: -23%

Last 90 Days: -36%

As mentioned last week, we outlined the long-term importance of the 100 day moving average. As discussed, this level is one of the most important support levels bitcoin price has experienced the last 5 years. If we take a look at the long-term chart, we will see that Bitcoin price has only dipped below that 100 day moving average once before. Following that rejection, Bitcoin ended up falling $ -2,600+ which was a significant drop. Right now BTC price is continuing to hover around this support zone. We argue that Bitcoin will not enter the next long-term bull run until it successfully moves above the $10,000 resistance level. On the flip side, if Bitcoin were to fall below the 100 day moving average ( red line ), we would argue that a long-term bearish trend would be forming. Historically, if this were to happen you could also argue a bear trend into the $5,000 territories.

Even though Bitcoin price does look more bearish than bullish right now in our opinion, it’s hard to believe that a long-term bear trend is forming. If you recall our most recent fundamental report, Bitcoin was still sitting in undervalued territory based on underlying fundamentals. Unfortunately the crypto space has historically been more unpredictable that traditional markets due to increased volatility. Despite our market report, we would still engage in a bearish outlook if Bitcoin price drops below the 100 day moving average we explain above.

Ripple ( XRP )

Current Price: $0.2548

Last 7 Days: +6.00%

Last 30 Days: +1.25%

Last 90 Days: -35%

Building The Bull Case: XRP is coming off a solid last week posting +6% the last 7 trading sessions. The chart is beginning to look pretty favorable from a historical standpoint. XRP continues to follow the trend where it formulates a good amount of consolidation and then moves hard either north or south. We have outlined a majority of these scenarios on the chart above. As we can see from the chart, XRP has again formed some solid consolidation ( trading sideways ) the last few days. We see a bullish scenario occurring mainly due to XRP price performance vs Bitcoin as of late. For the last 30 days, XRP has continued to take some market share from Bitcoin. Below is the XRP price action vs Bitcoin the last 30 days.

XRP is ready to breakout one direction or the other. We build a stronger case for Bullish price action based on its performance vs Bitcoin. As we mentioned above, Bitcoin is also on the verge of hitting a massive bear indicator which could accelerate the altcoin market exactly like it did in 2017 after falling hard from 70% market dominance levels. If XRP can rally from this consolidation phase, we have also outlined 0.26 on the initial XRP chart above. Accepting resistance at $0.26 would be even more bullish and could send it to 0.33+ in the near term. We still believe that in order for XRP to reach all-time highs, some sort of utility will have to kick in. It’s hard to see it have such a large move without an announcement. Many are waiting to see if Ripple Swell will produce any new developments.

Image Source: Flickr

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