Bitcoin started the week with 10% rally, rising to 11,722 USD as of 06:30 a.m. ET. The dominance of the world’s largest cryptocurrency is approaching 70% and all these happen on the background of collapsing stocks on the global markets. While Bitcoin historically has had a relatively low correlation with most asset classes, it has lately moved inversely to Asian stocks. It is anticipated that the coin may cross 12,000 USD if it continues to grow with the current momentum.
The upward trajectory strongly contrasts with the action seen last week, BTC price only finding resistance at 9,000 USD after a weekend of sharp price drops. Unsurprisingly, traders were buoyant, shaking off bearish sentiment to predict fresh highs and continued bullish signs from Bitcoin.
Fears the United States had again heightened the ongoing trade war with Beijing piled extra pressure on China’s currency, which at press time traded at a low not seen in around a decade. That specific political turmoil, many argued, appeared to be the catalyst spurring on both Bitcoin and gold. The political events have impacted Bitcoin markets noticeably this year, with issues such as regulatory scrutiny in the US weighing on sentiment in July.
The market surge is anticipated to continue for a while. The traders and investors have suffered a lot due to the price drop in the last month. They were all looking forward to a recovery in the ongoing month. Bitcoin is expected to trade around 15,000 USD to 20,000 USD by the end of 2019 or the beginning of 2020. The future with the investment in Bitcoin is promising and would bring a high dividend for long-term investors.
Bitcoin’s recent price movements have been coupled with 3.9 billion USD in total volume traded during a 24-hour period. Many analysts believe that this hints at a need for greater levels so that Bitcoin can endure any further price gains above resistance found at 11,880 USD. However, if one considers today’s trajectory, this is more than likely to happen.
Bitcoin’s rally this month comes after a July sell-off as lawmakers including Trump questioned Facebook Inc.’s plan to create its own cryptocurrency Libra. The digital currency has more than tripled this year, recovering much of its plunge during 2018.
Crypto market recap
Crypto market is one the rise on Monday, taking the positive momentum from the Bitcoin rally. The total cryptocurrency market value rose to 309.834 billion USD, adding almost 20 billion USD within 24 hours.
Ethereum gained 6.34% to 233.26 USD. The cryptocurrency price action has been uncertain for the past three weeks as it has been trading in a sideways consolidation. For a bullish rally to begin price levels must overcome this resistance and close higher than it. A logical price target is the point of control from the previous breakdown at 270 USD and is highly achievable if price rises above the current key resistance.
Ripple’s XRP is up by 3.85% to 0.3269 USD. The cryptocurrency has made its way above 0.3200 USD. However, the upside momentum remains weak. Without a clear follow through the coin risks to slip back into the previous range. The XRP has created a double top pattern with the neckline at 0.3190 USD. This is a bearish model that warns about growing downside risks. If the above-said neckline is broken, the sell-off may continue with the next focus on 0.3150-0.3140 USD. This support area is created by SMA100 and SMA200.
Litecoin is the biggest winner today, gaining 12.4% to 103.21 USD. Today is the block reward halving for the cryptocurrency, which seriously supported the price. Once the process completes, miners will gain just 12.5 LTC per block of mined transactions, instead of the current 25 LTC. While not guaranteed, this increased scarcity has the ability to push up the price of a token.
Bitcoin Cash and Binance Coin have minor gains, growing by 5.4% and 2.2%, respectively. Meanwhile, the EOS is up by 4.3% to 4.42 USD.
Among mid-caps, Monero is performing best, adding 8.9% to its value and reaching a level of 94.23 USD.