Month: July 2019

Three Cryptos Are Showing Strength Against Bitcoin. One Is Binance Coin

In the last few days, bitcoin bulls have been working really hard to put together a significant rally. Unfortunately, every attempt to bounce back has been met by a selling wall. Consequently, the king of cryptocurrencies is now close to breaking support of $9,000.

What’s positive about a weakening bitcoin is that it gives badly beaten altcoins the opportunity to recoup losses. On top of that, uptrending coins may end their consolidation as the leading cryptocurrency plunges. We’ll look at the latter to maximize the chances of profits. Here are three coins that are showing strength against bitcoin.

Binance Coin (BNB/BTC) Painting a Large Continuation Pattern

Binance Coin has been in a strong uptrend against bitcoin even since it breached resistance of 50,000 satoshis in December 2017. On April 20, the utility token posted a 2019 high of 481,340 satoshis. Since then, the market has been pulling back.

A quick look at the three-day chart of BNB/BTC shows that the pair is creating a large bull flag. This is a continuation pattern that signals the likelihood of a move higher. With bitcoin losing momentum, we might see Binance Coin finally break out of this pattern.

The strategy here is to consider buying on the breakout. Investors should wait for the market to breach the diagonal resistance of around 300,000 satoshis. After the breakout, the target is 460,000 satoshis.

Lambda (LAMB/BTC) Flexing Its Muscles Against Bitcoin

Lambda is probably a mid-cap coin that you’ve never heard of. However, you’ll likely keep an eye on it after reading this article.

The cryptocurrency is in the midst of a massive rally against bitcoin. If you look at its chart, you might feel the fear of missing out; don’t. LAMB/BTC is flailing oversold signals, so you’ll likely have the chance to buy it on dips.

A look at the daily chart shows that Lambda is attempting to take out resistance of 2,730 satoshis. However, it appears to be overvalued. Hence, we believe that a pullback to support of 2,000 satoshis is in order before the cryptocurrency can take out the resistance. This will allow Lambda to create a large cup and handle pattern to indicate bullish continuation.

Thus, consider being patient and buying as close to 2,000 satoshis as possible. The initial target is 3,100 satoshis.

Ravencoin Threatening to Reverse Its Trend Against Bitcoin

Ravencoin (RVN/BTC) is a market where bulls are beginning to take over. It may be struggling to take out immediate resistance of 498 satoshis. However, a look at the four-hour chart tells us that it is only a matter of time before bulls breach this resistance and blast off.

The cryptocurrency appears to be painting an inverse head-and-shoulders pattern on the four-hour chart. The reversal structure may only be visible on the shorter time frame, but it might just be enough to instigate a strong bullish insurrection.

The key level to take out is 498 satoshis. Above that level, the target is 595 satoshis.

Bottom Line: Buy Uptrending Coins

Bitcoin’s continued weakness will likely provide our three selections the room to launch their bullish rallies. For now, it would be better to bet on coins that are showing strength than trying to catch the bottom of badly beaten crypto tokens. Investors might want to consider following the levels that we mapped out to maximize profit potential while minimizing risks.

Bitcoin and Altcoins Showing Early Signs Of Recovery

  • Bitcoin price is currently consolidating near the USD 9,500 level.
  • Ethereum is holding the USD 202 support and ripple price is likely to correct higher.
  • LAMB, KCS and CRO gained more than 10% today.

After strong bearish moves, bitcoin price started a short term upside correction above USD 9,350. BTC/USD is currently (08:00 UTC) consolidating near the USD 9,500 level and it might slowly recover above the USD 9,650 and USD 9,720 resistance levels. Similarly, there are a few positive signs emerging for altcoins, including ethereum, ripple, bitcoin cash, litecoin and EOS. ETH/USD is holding the USD 202 support and XRP/USD is likely to climb above the USD 0.312 and USD 0.315 resistance levels.

Total market capitalization

Bitcoin price

In the past few hours, bitcoin price mostly traded in a range above the USD 9,300 and USD 9,350 support levels. BTC/USD is currently trading near USD 9,500, with an immediate resistance near the USD 9,580 and USD 9,600 levels. If there is a successful break above USD 9,600, the price could continue to recover towards the USD 9,720 and USD 9,850 levels.
The main hurdles on the upside are near USD 9,800 and USD 10,000. On the downside, the USD 9,300 are is a solid support, below which the price could start a fresh decline. The next key support is near the USD 9,050 level.

Ethereum price

Ethereum price retested the USD 202 – USD 204 support area recently and is currently moving higher. An immediate resistance is near the USD 210 level, above which ETH/USD could make an attempt to rise further. The next resistances are near USD 215 and USD 222.
On the downside, the main supports are USD 204 and USD 202. If the bulls fail to defend the USD 202 support, there are chances of a heavy losses below USD 200 and USD 195 in the coming sessions.

Bitcoin cash, eos and ripple price

Bitcoin cash price is trading above the key USD 300 support level, with range moves. On the upside, the USD 310 level is an initial resistance, followed by USD 312. The main resistance is near the USD 320 level, above which the price could continue to rise towards USD 320.
EOS is struggling to climb above the USD 4.250 and USD 4.300 resistance levels. If the price continues to face hurdles, there are chances of a downside reaction below the USD 4.050 and USD 4.000 support levels.
Ripple price is holding the USD 0.305 support level and it is currently correcting higher. The key resistance is near USD 0.312, above which the bulls are likely to gain control. The next key resistances are near the USD 0.318 and USD 0.320 levels.

Other altcoins market today

Despite negative and range moves in bitcoin, a few small cap altcoins climbed higher by more than 5%, including LAMB, KCS, CRO, UUU and AOA. On the other hand, JCT, CCCX, ABBC, LINK and RNV declined more than 7%.

To sum up, bitcoin price is consolidating and preparing for the next move either above USD 9,650 or below the USD 9,300 support. The price action suggests, there are chances of a short term recovery towards the USD 9,800 and USD 10,000 levels in the near term.
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Find the best price to buy/sell cryptocurrency:

Ethereum (ETH) Close To A Major Breakout As Price Holds Ground Above $200

Ethereum (ETH) holds strong above $200 as price eyes a major breakout. The recent decline in price panicked a lot of investors looking for a move to the upside. However, we have reasons to believe that the uptrend might still continue at least for short term while the price nears a decision point. The price is still trading in a pennant that is yet to breakout to the upside or downside. Short term, there is an opportunity to trade the move to the upside but proper risk management will be key because there is not much upside to expect here. It could all come crashing down in no time but it is reasonable to expect that it is not going to happen while the market is expecting it. The Fear and Greed Index is back at 16 down from 47 yesterday. This is a sign of extreme fear in the market. 

The 3H chart for ETH/USD shows that the price has ample room to rally towards $320 but it could start crashing from there if it fails to break to the upside. There are a growing number of retail traders expecting the price to crash but that is very unlikely to happen until the greedy bears are shaken out. We have yet to see a stop hunt to the upside that will force liquidate most of these overly ambitious positions. It is pertinent to note that the price has already broken below a strong ascending channel which means that there is not much upside to expect from here. Even if the price were to rise short term, it would still have to face a strong rejection at the bottom of the ascending channel. In chart analysis, every support once broken turns into a resistance.

If we take a look at the weekly chart for ETH/BTC, we can see that the price is attempting to rise towards the support turned resistance. Until and unless this resistance is effectively breached and the price ends up closing above it, there is not much reason to expect any long term bullish reversal. In fact, if the price faces a strong rejection at this resistance, we are likely to see it crash hard and that would be the beginning of a strong downtrend in the altcoin market. 

As long as Ethereum (ETH) remains in a downtrend against Bitcoin (BTC), not only may we not see an altcoin season, we may not even see a bullish cycle even in Bitcoin (BTC). So far, everything is progressing to plan and the ongoing cycle is taking longer than the preceding cycle. This means that we might see the market begin its downtrend soon as next month which would last all the way till the remainder of 2019 and more likely till the first half of the next year.

Bitcoin in downtrend dips below $9,500

For the near term the outlook for bitcoin (BTC) is bearish as it has traded below $9,500 today. However it should be remembered that five months ago it was trading at $4,000.

Godbole’s analysis

Omkar Godbole has an analysis of bitcoin’s price movements yesterday on CoinDesk. It was last updated at 11:18 UTC. Godbole claims that the bullish mood on the bitcoin market is its weakest in five months as seen by a key technical indicator.

The Chalkin Money Flow (CMF) study which incorporates both prices and trading volumes in order to detect trend changes and strength is currently at 0.02 on the three-day chart.

A positive CMF indicates a bullish bias. However, the latest reading is the lowest since February 20 indicating the market is least bullish on BTC in five months.

As of the article being posted, BTC was changing hands at $9,800 on Bitstamp still well above the 200-day moving average of just $6,270 so in the long term the bias is still in favor of the bulls. However, the CMF has retreated from a 21-month high of 0.40 to its present much lower value makes the short term look bearish and this is also signaled by a pattern of lower highs as BTC has retreated from a high of $13,880 to $9,049.

Chart analysis

The daily chart shows that BTC was unable to breach the trendline hurdle near $10,200 yesterday and ended up closing below $9,900/ This left a candle with a long upper shadow a bearish sign. BTC’s inability to take out the trendline hurdle confirmed bearish view indicated by the descending 5 and 10-day Moving Averages (MA) and the bearish crossover of the the 5-,50 and 10-, 50 day moving averages.

The relative strength index (RSI) also reports bearish conditions as it is below 50. The stage looks to be set for a drop as far as the July 17 low of $9,049.

However, for the bears to continue they have to break the pattern of BTC attempting a recovery. Over the last three weeks, when the price of bitcoin dipped below $9,600 it has been short-lived.

That said, the bears need progress soon, as BTC is again attempting a recovery, having clocked a low of $9,650 earlier today. Over the last three weeks, dips below $9,600 have been consistently short-lived (above right). Buyers could step in lifting prices to the 50-day moving average that is currently at $10,304. For prices to turn bullish they need to rise about $11,120 to invalidate the bearish lower highs pattern.

Present situation

BTC opened at $10,177 24 hours ago and that was its high so far today as well according to CoinDesk data. It has been as low as $9,306 well below $9,600 but still well above the low of $9,049. At 20:00 Central Daylight Time BTC recovered slightly from its low but is still just $9,411. This is down over 7 percent on the day or $766. All top twenty altcoins are also down many in the same range as bitcoin. The present price of bitcoin and the twenty major altcoins can be found here.

Is Bitcoin the New Safe-Haven Currency?

Where should investors, disillusioned with fiat currencies and government meddling, flock to for safety? Gold is the first answer that comes to mind, since gold has long served as a safe haven when paper currencies fail. And while gold remains a good choice, it is still quite easily controlled by governments through paper trading. It also has the dubious history of having been confiscated by governments at certain times in history. A new alternative safe haven, then, just might be cryptocurrencies like Bitcoin.

Pros and Cons

Bitcoin and other cryptocurrencies present an interesting alternative as a safe haven. Blockchain technology, the underlying software mechanism that enables the currencies to exist, imparts a level of privacy and security that currency transactions and (dare I say it?) banks cannot match. 

The secure nature of the transactions and the anonymity it represents is an enticing quality for individuals and organizations who are doubtful of the ability of governments to properly steward the economic system. With cryptocurrencies, so the argument goes, the market will truly be free. A nationless system would exist where transactions could be made without government intervention and meddling. Given the current political climate, the idea is very tempting.

But there is a dark side, of course. If governments lost control of their currencies, it could become very difficult to collect taxes. And those taxes fund our medical system, infrastructure, and other communal entities. It could also lead to increased sales of illegal goods due to the anonymity of blockchain transactions. 

It appears to be because of these two reasons, national security and potential proliferation of illegal transactions, that governments are spending so much effort discussing cryptocurrency regulation or even full-out crypto bans. 

A safe haven

While it is likely that gold will never fully lose its status as a safe-haven currency, some of its thunder has been stolen by the upstart cryptocurrencies. Gold’s main claim to fame has been the fact that it does not change over time. It does not rust and does not break down. This durability makes it the perfect currency.

While Bitcoin and other cryptocurrencies do not share this characteristic, they still have appeal due to the fact that they are durable on a political level. It is a store of value that is not controlled by any government. This political durability is very useful as a store of value, much the same as gold’s physical durability protects wealth.

How should you invest?

Although buying coins directly or through the Grayscale Bitcoin Trust is the most direct way to get into cryptocurrencies, there are other methods. Investors can invest in companies that make their money from mining and trading cryptocurrencies. Hive Blockchain Technologies is one stock that comes to mind, although it is almost as volatile as Bitcoin itself without as much upside. 

Using an ETF like Harvest Blockchain Technologies is another way to put money into the technology behind cryptocurrencies. Instead of betting on a single stock, you will be able to participate in the entire sector. With a management expense ratio of 0.65%, it is not cheap but not terribly expensive either. It also has a small dividend of about 0.8%, if that interests you.

Are cryptocurrencies the future?

The main argument that people use against Bitcoin is that it has no intrinsic value. Its value comes from the faith in its users and that alone. The problem with this argument is that all fiat currencies exhibit this trait, so the argument is moot. All fiat currencies, including the Canadian dollar, are essentially useless if no one believes in their value. Only gold has intrinsic value.

Cryptocurrencies, at the moment, have their own durability in the fact that they are not controlled by the government. As long as this continues, cryptocurrencies like Bitcoin should retain their value and should be a part of your portfolio in some form, whether by owning the currency outright or by purchasing a stock or ETF that invests in cryptocurrencies or the underlying blockchain technology.

Tron (TRX) Top Performing Cryptocurrency So Far This Year

Looking at the performance of top thirty cryptocurrencies so far this year one clear winner has emerged. Tron, by a clear margin, is the best performing crypto of 2019 and the only one making a double digit gain.

Tron’s TRX token has made an impressive gain of 34% so far this year while those around it have all fallen. Starting the year at $0.0191 (511 satoshis) TRX surged to $0.0342 (843 sats) by January ten before falling back to $0.0255 (741 sats) where it currently trades. Since its 2018 low in mid-December Tron has doubled in price. No other crypto asset in the top thirty can match that.

This solid performance has enabled TRX to flip both Litecoin and Stellar and challenge for sixth place on the market cap charts. At the moment it has fallen back to eighth but TRX is still the top performing altcoin by a long margin.

Without a doubt the Bittorrent token sale and lure of BTT tokens airdropped to TRX holders has driven momentum for Tron. The team has the best marketing kung fu in the crypto world at the moment as no others are able to compete. Justin Sun et al have not feared the crypto winter and have actively promoted the project which has clearly paid dividends so far this year.

After the initial token sale on Binance Launchpad ended in a blistering 15 minutes or so, BTT has been listed on a number of exchanges, most recently OKEx and Upbit.

Bittorrent token has also just been included on Coinmarketcap.com where it currently trades at $0.000503 or 15 satoshis. The ICO raised over $7 million and shifted over 50 billion tokens.

This is all good gravy for Tron which will be leveraging the BT user base to tokenize content for creators and cut out the middle man. Another big plus for the Tron network is the increase in dApp usage. Both users and transactions for Tron dApps are higher than those on the Ethereum network and very close to those on EOS according to dappradar.com.

There is no doubting that Tron is the most hyped crypto project out there at the moment. But the critics cannot dispute the results of that hype which have been plain to see in TRX prices so far this year. Tron has effectively trounced the competition as its two main rivals are in pain. Ethereum has dumped 21% and EOS has shed 10% year-to-date, the Tron train keeps gathering steam.

Bitcoin [BTC] Sentiments Flip Above $10k – Could This Indicator Justify Volatility?

Bitcoin [BTC] made a brisk move above $10,000, once again rejecting bearish trades below the $9k range; the low this time was around $9510. The price of Bitcoin at 3: 15 hours UTC on 25th July 2019 is 10,102. It is trading 4.35% higher on a daily scale.

The $10k mark is forming a healthy psychological level for short and long positions. The short orders fell drastically as Bitcoin moved beyond it. B.Biddles, crypto-analyst, and Trader noted that Bitcoin was giving mixed signals. Nevertheless, the recent surge has also forced traders to close short orders. He tweeted,

A lot of shorts just became not-shorts

He also noted that macro signals are pointing towards a bull run. Richard Heart, angel investor and a trader have quite consistently projected $8500 as the next correction level. According to him, it would be a massive buy signal, and Bitcoin would break strongly bullish above it.

Is Bitcoins’ Volatility Still a Reason for Worry?

Nevertheless, Bitcoin price seems to have reversed a $1000 above his prediction. However, Bitcoin’s volatility continues to haunt its utility as a safe haven. Richard noted in a tweet

I bet you didn’t know #Bitcoin is more volatile now than it was in the 100x run from $200 to $20,000. The last time it was more volatile Was the 2 months around $20k. Many believed futures, options, more participants and institutional players would reduce volatility. It didn’t.

Bitcoin [BTC] Futures trader, Jim Luorio, who had for long supported Bitcoin this year, suddenly exited it and it was due to the volatility itself. In response to Bitcoin vs. Gold, he recently told the media,

“People flocked to gold and bitcoin. Bitcoin all of a sudden has shown some drastic volatility over the last two weeks. Including a $3000 drop in a about a minute two weeks ago. To me, that kind of axed it off the list to what is a good proxy of FIAT currency. Bitcoin is out. I like gold the best.”

However, the signal which measures the speed of price movements is projecting a brighter picture. The RSI signal is currently in the oversold range, given we are in a bull market.

The relative strength index was considered over-bought during the initiation of the bull run this run. This was a strong indicator reason why people held onto short positions. Nevertheless, the volatility in Bitcoin and the bull market explains the market characteristics closely.

Since we are in a bull market, the RSI oscillates between 40 and 90. Currently, the RSI is testing support at the lower range at 43. Hence, we are currently testing the support level. A break above this level could be significant. However, it plummets, it might put an end to the bull market.

Mati Greenspan, the Senior Market Analyst at eToro, also indicated that $8500 would be a good buy signal. However, a break below $7,200 should be seen as bearish.

Do you think Bitcoin will continue uptrend above $10,000 or break below it again? Please share your views with us. 

Ethereum (ETH) Remains Extremely Vulnerable, Bears On The Cusp Of Gaining Control

Ethereum (ETH) has faced a strong rejection at the 38.2% fib extension level shown on the 15 minutes chart. If the price remains below the 38.2%, we are likely to see further downside ensue and ETH/USD will have to fall towards the bottom of the descending channel. We saw the bulls and the bears put up quite a fight near the top of the channel and it appeared confusing for a while but what is supposed to happen always does. A few big wicks to the upside or to the downside shake out those ambitious traders looking to get rich quick and then the market takes its course. Currently, the price is struggling to remain above the 61.8% fib extension level. If it holds this level, we could still have some hope for the bullish case but if this level fails to hold, we are likely to see a sharp decline to the bottom of the channel.

If you are following the price action closely, the market often throws quite a few hints our way. For instance, the price already declined and closed below the 61.8% but when that happened everyone suddenly started entering short positions because they took it as a sign of further downside to follow. The market makers were aware of this and they did the opposite of what everyone was expecting and so the price went back above the 61.8% all the way up to retest the 38.2% shaking out a lot of greedy traders on the way. So, what does this mean? It means that what is supposed to happen might happen anyway but without most of these traders onboard. This is why proper risk management is so important. If a trade does not go your way, you should know when to kill it and get out as quickly as possible.

If we take a look at this chart for ETH/BTC, it exposes further weakness in Ethereum (ETH) as it has once again resumed its downtrend against Bitcoin (BTC). This means that the short term relief rally that we saw when Ethereum (ETH) outpaced Bitcoin (BTC) and everyone was calling for an altcoin rally was indeed very short-lived. The most likely scenario now is the beginning of another downtrend that might see altcoins get battered very hard not only against the US Dollar but also against Bitcoin (BTC).

Ethereum (ETH) has yet to see any signs of a recovery. The outlook is as bearish as it gets on the larger time frames despite misleading price action on shorter time frames. The mistake most new traders make is to use shorter time frames to predict moves on the larger time frame and vice versa. The price of an asset can be bullish short term and bearish long term. Similarly it can be bullish long term and bearish short term. In the case of Ethereum (ETH), it is hanging by a thread to turn bearish short term but it already remains bearish on larger time frames.

BTC At $20k: Here’s When Enthusiasts Expect It To Happen

Bitcoin, the top cryptocurrency by market cap is currently trading at the $10,500 price level. Its 2019 high has been $13,700 while its all-time high is over $20k. On the other hand, Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance asked the crypto community on July 20, 2019, when they think Bitcoin will surge to $20,000 again.

https://twitter.com/jJA8wqQ3kDzWKfv/status/1152870092709027840

CZ’s Question to the Crypto Community

Changpeng Zhao is curious to know when the crypto community thinks Bitcoin will revisit its all-time high and how soon that can be. The CEO in a tweet specifically asked the length of time between July before Bitcoin hits $20,000 again. Given that the tweet is coming from a well-known member of the space, the community was on its heels to give their well-thought-out opinion.

Bitcoin Can Hit 20K by the End of 2019

The first class of respondents was confident that Bitcoin can certainly hit $20,000 by the end of 2019. This group was more than willing to attach a timeframe to it as CZ had requested. As at press time, over 1000 people specifically pointed out when Bitcoin will revisit the $20k price level.

  • 17.4% – majority attributed it to certain events (Bakkt, ETFs, exchange listings, etc.) happening in the space
  • 14.6% – 2020 (between January 2020 and May 2020)
  • 13.5% – August 2019
  • 10.7% – December 2019
  • 8.7% – October 2019
  • 7.7% – September 2019
  • 4.8% – July 2019
  • 1.9% – November 2019

What’s even more remarkable, is that a crypto enthusiast took it one step further to point out why it will most certainly be late November 2019, in their opinion. According to them, if Bitcoin closes this week above $11,300, then blasting off to $20,000 would be a breeze. However, if it fails to by this week’s end, then we can take a cup of coffee while waiting for it to a spike in November.

What’s More Important

While the dates were being thrown around, another class of commenters was spotted. These are those who pointed out what’s more important instead of speculating the price. A user, for instance, said they are more interested in accumulating satoshi (small unit of Bitcoin) because they are certain of where its price is headed.

Educate to Improve Mass Adoption and Price Spike Will Follow

Another said more priority should be given to informative crypto tweets on how blockchain & crypto can drive change in the payments industry. Tweets of this nature from the masses will give potential holders a deep understanding of this asset class. When that happens, it will create demand which will, in turn, trigger a surge in the price as the whole market is expecting.

The latter should be done instead of sending out tweets that only hype Bitcoin’s price. The community should not also sit back waiting in hopes that newbies will just get the big picture on why they need Bitcoin as a store of value

The Humorous Ones Were Also at the Party

It wouldn’t sound like the typical crypto community without the sentiments of the humorous ones as usual. Their predictions came in the form of a meme and hilarious comments. A user said it will most certainly feel like Bitcoin has hit $20,000 tonight after they’ve had more than enough to drink.

Bitcoin Bounce Capped by $10K Price Resistance

  • Bitcoin’s recovery from $9,049 to $10,000 lacks substance and may be short lived.
  • Signs of bullish exhaustion near $10,000 have emerged on the 4-hour chart. A break below $9,580 would confirm the corrective bounce has ended and allow a drop to $9,000.
  • Moving average (MA) studies and key indicators like the relative strength and the Chaikin money flow indices on the daily chart continue to call a bearish move.
  • A high-volume break above $10,000 could yield a move to $10,400, but a 4-hour close above $11,080 is needed to invalidate the short-term bearish setup.

Bitcoin’s recovery from one-month lows looks to have stalled near $10,000 and the cryptocurrency may end up charting a bearish lower high around the psychological resistance level.

The top cryptocurrency by market value slipped to $9,049 in the European trading hours yesterday, the lowest level since June 19, according to Bitstamp data. That drop came after the bullish higher-lows pattern was invalidated with a move below $9,614 on Tuesday.

The drop was short-lived, as expected, though. Prices bounced up in the U.S. trading hours, keeping the former resistance-turned-support of the $9,097 May 30 high intact.

The recovery, however, looks to have run out of steam, and BTC has spent a better part of the last 13 hours struggling to settle above $10,000.

A persistent failure to convincingly beat $10,000 means the market is no longer viewing sub-$10,000 levels as an opportunity to get involved in the bull market the way it did on July 2, when prices charted a V-shaped recovery from $9,614 to $11,000.

Further, technical charts indicate the bounce seen in the last 24 hours lacks volume support. So, the odds appear stacked in favor of the creation of a bearish lower high at $10,000 and a fall back to $9,000 in the next day or two.

As of writing, BTC is changing hands at $9,850 on Bitstamp, representing 3.5 percent gains on the day.

Hourly chart

Buying volumes (green bars) on the hourly chart have been very low throughout the price bounce from $9,049 to today’s high of $10,027.

A low-volume recovery often ends up as a “dead cat bounce” – a short-lived recovery after a notable price drop – meaning BTC will likely fall back to $9,000.

Sell volumes (red bars) have been consistently higher than buying volumes ever since BTC topped out at $13,200 on July 10 – a sign of change in market sentiment.

4-hour and daily chart

Multiple candles with long upper wicks (above left) near $10,000 indicate BTC’s recovery has run out of steam near $10,000. A break below $9,580 – the low of the doji candle created in the Asian trading hours – would confirm a bearish lower high at $10,000 and allow a drop to $9,000.

The bearish view would be invalidated only if prices invalidate the lower-highs pattern with a high-volume move above $11,080.

That, however, looks unlikely as the daily chart is biased bearish. The 5- and 10-day moving averages are trending north, indicating a bearish setup. The 5- and 50-day MAs are teasing a bearish crossover.

The Chaikin money flow index is now barely holding in positive territory compared to highs above 0.35 seen at the end of June. That indicates a significant weakening of buying pressure.

Further, the relative strength index is reporting bearish conditions with a below-50 print.