Bloomberg Intelligence senior strategist Mike McGlone is bullish on Bitcoin (BTC) as he believes that “something unexpected needs to happen for Bitcoin's price to stop doing what it's been doing for most of the past decade: appreciating.” However, with the S&P 500
hitting a new all-time high today, traders are booking profits in gold and crypto assets. As U.S. markets surge to new highs, Bitcoin price has corrected sharply in the last two days but this is likely to be a short-term blip in a secular uptrend. Veteran investor Jim Rogers thinks that the U.S. stock market is in a bubble and the recent monetary measures by numerous central banks could result in the worst economic meltdown in his lifetime. Daily cryptocurrency market performance. Source: Coin360 Daily cryptocurrency market performance. Source: Coin360 In other news, crypto investment firm Pantera Capital has seen strong inflows into its Pantera Venture Fund III over the past twelve months, which shows that cryptocurrencies are attracting new investors. However, as the bull market progresses, greed takes over and some traders take excessive risk in order to earn quick returns. Although a few traders might get lucky, most tend to give back their hard-earned gains due to reckless trading. Therefore, traders should be disciplined and stick to their trading principles to generate long-term wealth.
BTC/USD Bitcoin completed the ascending triangle pattern on Aug. 17 when it closed (UTC time) above $12,113.50 but the bulls could not sustain the breakout and the price dipped back into the triangle on Aug. 18. BTC/USD daily chart. Source: TradingView BTC/USD daily chart. Source: TradingView The bulls are currently attempting to defend the 20-day exponential moving average ($11,515), which is an important level to watch out for because the bears have not been able to sustain the price below it since July 22. A strong bounce off this support will show that the bulls continue to buy on dips and if they can propel the price above $12,460, the uptrend is likely to resume. The moving averages are sloping higher and the relative strength index is in the positive territory, which suggests that the bulls have the upper hand. However, if the bears sink and sustain the price below the 20-day EMA, a drop to $11,000 and then to $10,400 is possible. ETH/USD The failure of the bulls to sustain Ether (ETH) above $444.15 on Aug. 17 attracted profit-booking, which has pulled the price below the breakout level of $415.634. ETH/USD daily chart. Source: TradingView ETH/USD daily chart. Source: TradingView If the ETH/USD pair rebounds off the 20-day EMA ($392), it will suggest that the bulls continue to buy on dips and if they can push the price above $415.64, a retest of $446.479 is possible. A breakout above $446.479 can result in a rally to the $480–$500 resistance zone. The upsloping moving averages indicate an advantage to the bulls but the negative divergence on the RSI suggests caution. If the bears sink the price below the 20-day EMA, it will indicate that the momentum has weakened and a drop to $366 is possible. Below this support, the correction could extend to the 50-day simple moving average ($314). XRP/USD The bulls could not propel XRP above the overhead resistance zone of $0.326113–$0.346727 on Aug. 17, which attracted profit booking by the short-term traders. This has pulled the price down to the 20-day EMA ($0.285). XRP/USD daily chart. Source: TradingView XRP/USD daily chart. Source: TradingView If the XRP/USD pair rebounds off the 20-day EMA, the bulls will once again attempt to scale the price above the overhead resistance zone. If they succeed, the uptrend is likely to resume. However, if the bears sink the price below the 20-day EMA, a drop to $0.268478 is possible. If the bulls defend this support, the pair could remain range-bound for a few days. A break below the $0.268478 will be a negative sign that can result in a decline to the 5
Wow