Bitcoin Pausing in a Range, Waves and Lumens Rally as LTC Falters, Analysis Sep. 12Sep 12, 2018, 11:11AM
Bitcoin is pausing in a range between key support at $6,000 and resistance at $6,500. Waves and Stellar see rallies on new developments.
The price of Bitcoin still trades in the range between the key support at $6,000 and the recent resistance at $6,500. The price action this week has been light on volume and traders are likely feeling confused after the latest rally failed to mount any serious momentum and without imminent news, many will be afraid to buy this support level out of fear of further losses.
We now trade at $6,259 on BTC but the lack of buying strength this week hints that we may drift lower to test the $6,000 level. It wouldn’t be a surprise to see another negative news report coming out from Wall Street in an effort to push the market through the low.
For now, I would urge caution on buying here. The next resistance will be around the $7,250 level, where the price failed at the start of September but there will need to be some positive news coming out to propel BTC back to those levels.
The overall cryptocurrency market is trading in a similar pattern as the largest move in any coin over the last 24 hours is 2.71%. The market capitalization of the market has drifted underneath the $200 billion mark to trade currently at $187.13 billion. This is a pause after the recent bearish activity and as the market usually follows Bitcoin, this pause is likely to continue this week.
Stellar Lumens rallied on Tuesday to test the $0.200 resistance level, which was served as support in early-August. Unfortunately, we have seen the price pullback from the resistance and we now trade at $0.1885. There are some support levels below at $0.175-0.180 and we would need to get back above the $0.200 level to see further upside. The volume on these moves is still relatively small and price is likely just drifting around support and resistance levels until we see a catalyst appear.
The Stellar Development Foundation has announced that it acquired the blockchain enterprise, Chain Inc. The new company will be named Interstellar and will be based in San Francisco. Chain Inc. is involved in the building of cryptographic ledgers and will now migrate its products and user base onto the Stellar public ledger. The undisclosed deal was rumored by Fortune to be around $200 milllion. Chain Inc. had previously attracted capital from big names such as Visa and Citigroup.
The new CTO of Interstellar, Jed McCaleb commented on the tie-up,
Chain’s team has led the market for enterprise adoption of blockchain technology, which is a critical component of building a future where money and digital assets move over open protocols [...] We are thrilled to be joining forces to help organizations build on Stellar.
The price of the Waves token has surged 33% in a day after introducing a major update that supports smart contracts. The update is still in the voting process, yet it is expected that the smart contracts will be added within the week.
Many blockchains are now moving ahead with smart contracts and I noted in my previous article that IOTA was implementing their own contracts through the Qubic upgrade. Waves’ contracts will be unique in that development will be somewhat restricted initially. This will likely avoid complications as the contracts come onboard.
The price of Waves is now trading at $2.19 after giving up some of the Monday gains. The close on Monday tested $2.50 support level and was unable to close higher. Waves had been on a long downtrend from the beginning of May but has been basing since August for this rally. If this is a brief pullback then Waves can make a move to the resistance at the $2.80 level. A weekly close higher in the $2.80-$3.20 would be a strong indicator if further gains.
Litecoin has seen further bearish activity and the promising rally of August to the $68.00 level has now seen a collapse back to the key support level of $50.00.
The triangle formation in Litecoin saw a bearish break and we now have to see support develop at $50.00 again if LTC is to mount another rally.
Litecoin is in danger of losing the number seven spot in the list of coins by market cap, with Tether sitting only $50 million lower. Stellar sits $800 million higher at $3.6 billion and Litecoin will need to see some form of news catalyst to hold onto its major coin status.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.