Ether Stays in Downtrend, Bitcoin Up

Due to important events in the bitcoin space, in this update we will cover Bitcoin and Ether, instead of the usual Ether+Dash combo.

Ether Stays in Downtrend

Ether continues its slow downward trend. It’s currently quoted at 0.07873, down from 0.08875 during our last update. This is a fall of 11.3 percent.

ethbtcdaily-july27-copy

As you can see on the chart above, it wasn’t smooth sailing for the shorts. Prices initially spiked to a high of 0.0111 on July 18th. This is the date when a list of new EEA members was revealed to the public. Notable names among the list include MasterCard, Cisco, and ScotiaBank. The news spike hit our potential trend-ending level at 0.011 but there was no clean break, only a 0.0001 tick above. Thus the downward trend remains on the daily charts.

The bulls still need a decisive break above 0.011 to end the current bear phase. A breakout here would start a new uptrend as well. On the longer-term weekly and monthly charts, ETH/BTC remains in rally mode.

Bitcoin Falls on BTC-E Outage, Recovers

Bitcoin prices continued to fall during the two days since our last update. Popular crypto exchange BTC-E announced an ‘unplanned database maintenance’ on July 25th. One day after it became apparent that the reason for the outage was the arrest of Alexander Vinnik. More on this developing story HERE .

Lots of questions with potential market moving impact remain unanswered. Who has the private keys to the users’ coins now? When will they get them back? Will US authorities take down the site as well? The DOJ imposed a hefty 110 million dollars fine on BTC-E. Does the site have enough money to cover the fine and stay in business? The latest tweet on the official twitter accounts says that they will be back in 5-10 days.

btcusdh1-july27-copy

As you can see on the chart above, the market reaction was a classic V-shaped reversal pattern. First, we got a small crash to $2,401 followed by a rally to a high of $2,594. We are currently quoted at $2,587 dollars per coin. The uptrend remains intact and the bears will need a break below the $2,100 level to end it. A new downtrend requires a breakdown below this month’s low at $1,812. On the long-term charts, BTC/USD is still looking bullish.

Open Crypto account with FXOpen.

Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

More Posts

By with No Comments 0

Related Posts

No posts were found for display