Home Crypto Crypto Market Analysis Daily Crypto Update 06.07.2018 – Retracement Continuation

Daily Crypto Update 06.07.2018 – Retracement Continuation

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General Overview


Market Cap: $264,564,228,297

24h Vol: $16,267,409,706

BTC Dominance: 42.6%

In the last 24 hours, the evaluation of the cryptocurrency market capitalisation has failed to go past the resistance at around 275 billion dollar area, so it has retraced since to the 261,722,000,000$ level at its lowest today.

Retracement Continuation | Forex Academy

Consequently, the market is currently in the red, with an average percentage change among top 100 coins ranging from 5-8%.


News


In the last 24 hours, there are four headlines that came out, that are considered significant. The headlines are those regarding governmental relation to the crypto space and utilisation of the blockchain tech and they are all positive.

First in the line is that Uzbekistan “has signed a decree on the development and integration of blockchain technology, crypto assets, and crypto mining with the goal of modernising the state administration system and advancing digital economics in the country.”

President Shavkat Mirziyoyev signed a decree “On measures for digital economics development in the Republic of Uzbekistan”

Malta has passed three bills into law that establish a regulatory framework for blockchain technology, as reported by the local media outlet. The bills include the Malta Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act.

The South Korean government is drafting major new industry classification standards for the domestic blockchain industry.

The scheme will reportedly serve as a basis for policy making, notably aimed towards “blockchain promotion and regulatory frameworks,” and covers areas including blockchain systems construction, decentralised applications (DApps) development, and cryptocurrency exchanges and transactions.

IBM has signed a five-year AU$1 billion ($740 million) deal with the Australian government to use blockchain and other new technologies to improve data security, Bloomberg reports. The major contract will see IBM provide technology such as blockchain, automation and artificial intelligence (AI) to Australian federal departments, including defence and home affairs. IBM’s Asia Pacific head, Harriet Green, told Bloomberg that the new partnership will give Commonwealth citizens access to the “world’s greatest technologies” “across many, many government agencies.” The new partnership will catapult Australia to “the top three of digital governments in the world,” she suggested.


Analysis


BTC/USD

The price of Bitcoin has decreased by 1.7% from yesterday’s high at 6645$ and is now sitting at 6523.50$.



Looking at the hourly chart we can see that the price of Bitcoin has retraced back to the minor support level above the 0 Fibonacci level. As the selling pressure is stronger than the buying and judging by the steepness of the down move, I am expecting the price to decline further to around 6310$.


Market sentiment 

Hourly chart technicals signal a buy overall.

Oscillators are signalling a sell, and moving averages a buy.


Pivot points 

S3 5990.5 
S2 6271.8 
S1 6401.6 
P 6553.1 
R1 6682.9 
R2 6834.4 
R3 7115.7

ETH/USD

From today’s open at 470$, the price of Ethereum has declined by 1.1%. The price went lower to 455$ but has recovered since to 464$ where it is currently.



On the hourly chart, we can see that the price action is forming a triangle, which is why I am expecting the price to bounce a few more times inside it in the following days.


Market sentiment 

Hourly chart signals a buy.


Pivot points

S3 427.49 
S2 447.80 
S1 457.66 
P 468.12 
R1 477.98 
R2 488.44 
R3 508.75

LTC/USD

The price of Litecoin has been declining from yesterday’s open at 85.43$ to the 81.20$ at today’s low. Since the low, the price has recovered and is now sitting at 83.80$.



As you can see from the hourly chart the price has broken out off of the triangle and found support on the prior range resistance levels around 81$. Now the price has recovered, but I think that this current green candle is there to test if prior support from the triangle is going to serve as resistance, and if it will, the price is going to go further down.


Market sentiment 

Hourly chart technicals signal a buy.


Pivot points

S3 73.146 
S2 78.610 
S1 80.963 
P 84.074 
R1 86.427
R2 89.538 
R3 95.002

Conclusion


As the evaluation of the cryptocurrency market capitalisation hasn’t exceeded the 275 billion level and it want’s to, the sellers must be baited to sell for the lower price and exhaust their supply which is why I am expecting this retracement to last a bit more before the uptrend continues.

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