It was a wild day in cryptocurrency as a majority of the market posted big gains on Tuesday. Despite Bitcoin posting +85% returns in 2019, it’s still not tired in 2020. Bitcoin has already gotten off to a quick start as it’s returned nearly 20% so far YTD. Even though Bitcoin had a strong day in the market, it’s worth noting other altcoins did just as good and even better. The overall cryptocurrency market capitalization grew by nearly $12 billion on Tuesday going from $225,000,000,000 to around $237,000,000,000. The outlier today was Bitcoin SV. It’s safe to say a majority of investors did not see this one coming…. Bitcoin SV rallied 100% + on Tuesday which seemed to give the overall markets a needed boost.
7 Day Performance: +4.62%
Analysis: As discussed earlier, Bitcoin seemed to penetrate a solid resistance level at $8200 which sparked a run. Historically speaking on the 1 year chart, Bitcoin has done pretty well following acceptance at these levels which we outline on the chart below. With this being said, it looks like Bitcoin could be targeting the $9,200 level on the upside to ultimately determine longer term sentiment. As we know by now, anything can happen in crypto… If you start to see Bitcoin SV dumping from its large push today, you could very well see Bitcoin dump as well. If that’s the case, Bitcoin could turn bearish on a $8,200 rejection on the downside. As of now it still seems like the $9,200 test has better odds. The technicals look fairly nice and Bitcoin is still historically undervalued when looking at MVRV ratios which our team at Visionary Financial outlined on social media not too long ago.
7 Day Performance: +13.13%
Analysis: Ethereum has done very well the last week, but it’s also got a better chart setup than Bitcoin in our opinion. If you take a look at the chart, we would argue a bull run could be triggered by $175 acceptance. Bitcoin already went through this resistance push today, while Ethereum still hasn’t gotten there despite +13% the last 7 days… Ethereum is also showing pretty nice technicals with momentum indicators pointing north. If the market does cool off in the near term, you could see ETH prices continue to push up and being uncorrelated due to its current technical stage.
7 Day Performance: +9.59%
Analysis: XRP price is very interesting to look at, because the chart setup is almost identical to Ethereum. Historically, ETH and XRP price have not been as correlated as many think, so it’s interesting to see the formation right now. XRP price needs to accept the $0.25 levels in our opinion to keep the strong upward momentum. With the strong push off .17 cent levels, it makes you think XRP finally bottomed out, but it will need a bit more confirmation to prove that theory right..
Bitcoin SV Price
7 Day Performance: +216%
Analysis: Bitcoin SV is not surging for no reason. Some interesting information surfaced today regarding Craig Wright. ( Bitcoin Satoshi Vision ) is a fork of Bitcoin Cash led by Craig Wright who has continued to tell the public he is the creator of the original Bitcoin. Long story short, this has seemed fabricated for some time, but today Craig Wright reached out to the courts he is dealing with and notified them he has the proper tools to present an encrypted file that would help prove the creation of original Bitcoin. Bitcoin SV has rallied on the news. With a rally this hard, it’s hard to justify proper TA, but it seems like BSV price has to hold $358 levels to refrain from selling off. If it can hold $358 levels you might see $400 tests again, but at this point it’s safe to say BSV is buyer heavy.
Image Source: Flickr