Bitcoin appreciated by 3.5% to 3,885 USD, but the investors are sending very negative warnings and forecasts. However, there are signs of a possible bounce on the daily chart, though, on a medium-term basis, any upside moves are classified as corrective ahead of what could be the next downside extension and bearish continuation.
The prices are stable above the support area of 3,800 USD and interest of small investors after the renewal of trading in 2019 is stimulating the growth.
However, the biggest winner during the day was Ethereum, which rose significantly by 12% and became the second-largest cryptocurrency. The Ethereum rose to 152 USD, while Ripple is trading at 0.37 USD. Thus, the crypto world has a new favorite, as Ethereum appreciated significantly during the last month.
Ethereum appreciated after the growing 24-hour trade volume to 2.357 billion USD, a majority of which was shared by OEX and OKEx, two popular cryptocurrency exchanges. The cryptocurrency was also appreciated against the news that its co-founded Vitalik Buterin was asked by Tron’s Justin Sun to help him review the Tron white paper.
Ripple also enjoyed a strong start of 2019 with a series of giant deals at extremely low taxes. A total of about 2,133,569,088 XRP worth about 755,702,929 USD were moved. Each of the seven transactions took four seconds, and the fees for all transactions were worth less than one cent in total.
According to Whale Alert, most of XRP appears to be a transfer of funds into escrow by Ripple. The company owns about 60% of the total supply of the token, with the majority being locked in escrow.
Bitcoin ended 2018 with 70% price drop
The nightmare of the 2018 cryptocurrency market is finally over.
Of course, more downside is always possible, if not likely, but at least the year in which bitcoin prices dropped more than 80 percent and the broader market lost nearly 700 billion USD of total capitalization is over.
Bitcoin catapulted more than 2,500% from its year low to reach a new high of almost 20,000 USD by December same year. Unfortunately, after that it collapsed registering 365 volatile days, reaching the level of almost 3,000 USD.
When reviewing bitcoin’s 2018 price history, two technical developments stand out: the moving average death cross and breaking support of 6,000 USD.
Multiple moving averages are commonly used on the same chart and complete the bearish development known as a “death cross” when a major short-term moving average crosses below a major long-term moving average, indicating a significant loss of strength to the longer term trend.
Bitcoin witnessed a death cross between the 100- and 200-day moving averages on April 16, confirming the end of its most recent bull market. Before the death cross had taken place, the price fell to and found support near 6,000 USD in February.
All eyes were on this level from that day forward as the price went on to test it several more times before finally breaking down nine months later on November 14.
Up until this point, many believed 6,000 USD had fortified itself as the ‘bottom’ of the 2018 bear market since it had been strongly defended for what in crypto time seemed like an eternity.
However, the Bitcoin ended the year at a level of 3,747 USD.
Many analysts even forecast that Bitcoin could enter a more extreme death spiral. If its price continues to drop and the mining costs do not fall to the same extent, the incentives to update the public ledger and validate transactions can quickly disappear, threatening the very existence of Bitcoin as a viable payment system. This would mean another serious blow for the cryptocurrency, which possible will drag down the altcoins, as well.