Top News for This Week:
Miners Sold More Than Mined Last This Week
According to data by ByteTree founder and Chairman Charlie Morris mining pools account for most of bitcoin inflows into exchanges. Miners have sold 2,788 BTC on Wednesday, which is a lot more than the 1,588 mined BTC. However, since the market has absorbed this selling pressure relatively well, it might be a bullish indication.
Bitcoin Holders Moving Their Money Away From Exchanges.
Crypto analytics firm Glassnode has seen an increasing outflow of Bitcoin from exchanges. Bitcoin exchange balances are at an 8 month low and the reasons for this could be several:
- Maintaining custody of their own assets
- Holding on for the long term
- Concerned about the liquidity of exchanges
Also, the research team points out that the creation of new addresses has spiked by 11.7% between Wednesday and Thursday.
Big Tech Plans For Blockchain
Cointelegraph has released an article with an overview of what some of the largest tech companies are currently doing with blockchain. IBM, Microsoft, Samsung, and Sony are currently working on several use cases, however, Google and Apple seem to be lagging behind for now.
Technical analysis of Crypto majors:
Bitcoin has a market cap of 112.8 billion USD and trades around 6,125 USD on Coinbase after a slight rally was seen this week towards a previous high of 7,000 USD.
Since then we have seen rejection for further upside as the price has broken below a several week ascending support trend line on Friday and has moved lower since then.
Therefore, it is highly likely we will see further downside next week as the price looks to retest previous swing low. If a new higher low can be established in the upcoming weeks above 4k USD area, we could see a potential reversal back to the upside, however, for now, further bearishness is expected.
Alternatively, we still could see a consolidation in an increasingly tighter range until either a clear higher local high or lower low is made.
Ethereum currently has a market cap of 14.3 billion and trades at 128.9 USD on Coinbase as it failed to set a higher high above 155 USD previous local high.
Therefore, we can expect further bearish momentum in the upcoming weeks as the market looks to retest previous low once again. Potential first support can be seen around 90 USD. If the price can find support around this level, we could see further bullish momentum in the upcoming weeks.
Alternatively, a consolidation in an increasingly tighter range will be seen until either a clear higher local high or lower low is made.
Likely we will see Ethereum following Bitcoin, therefore, it is important to keep an eye on both to determine the direction of the next move.
Ripple currently has a market cap of 7.6 billion and is trading around 0.173 USD on Coinbase as it still trades with similar price action as both BTC/USD and ETH/USD.
Previous support turned resistance of 0.18 USD was retested with a slightly higher high, however, a bearish pin bar close was seen on Friday. This could lead to more downside as the market will likely follow Bitcoin.
Therefore, we can expect further downside next week, however, overall, the market has not retraced enough when looking at the overall move from .0344 to 0.1105 USD during the past downswing.
Crypto of the week:
Tezos (XTZ) currently has a market cap of 1.09 billion and is trading around 1.55 USD/ 0.00025191 BTC on Binance as it has reached a very strong support level after retracement was seen from the previous upswing.
First, the previous major high resistance can be seen around the current price of 2.4-2.5k Satoshi. Second, 61.8% Fib retracement from the previous major upswing can be seen at 2,475 Satoshi. Third, we have the 100 day moving average blue line closing in on the price.
So far, this area of support confluences seems to be respected very well with clear rejections seen during the first attempts to move below it.
Therefore, XTZ/BTC is something to keep an eye for this week as we could see a reversal back to the upside. For now, however, the price seems to be trading in an increasingly tighter consolidation. Brea to either side will likely show us the direction for the upcoming weeks.