On January 6, digital currency markets saw decent gains, with the total crypto market capitalization surpassing the $200 billion mark at 3:50 p.m. EST. Since then, most cryptocurrencies have tested heavy resistance and a slew of assets are being held back. Crypto trade volumes have increased significantly, with roughly $83 billion in digital asset swaps in the last day.
Top Cryptos Gain 5-10%; BTC Tests 100-Day Average Resistance
A number of digital assets on Monday saw considerable spikes in fiat value as Bitcoin (BTC) jumped from the $7,400 range to the $7,900 zone in a matter of no time. Today most cryptos have lost a small fraction of their gains, with only four out of the top 10 coins seeing percentage gains on Tuesday morning. At press time, the overall market valuation of all 4,000+ cryptocurrencies is around $209 billion. BTC is capturing 68% of the cryptoconomy with a $142 billion market cap. Currently, BTC is trading for $7,868 per coin, up 4.1% today and 7.8% for the entire week. BTC neared the 100-day average resistance on Monday and touched a high of $7,999 on Bitstamp before being pushed back.
Ethereum (ETH) markets are down 0.12% on Tuesday as each coin is swapping for $141. ETH gained 5.9% during the last seven days. XRP is still trailing behind, trading for $0.20, a loss of 1.3% on Tuesday but up 8% this week. The stablecoin tether (USDT) holds the fourth largest market cap at around $4.63 billion.
Bitcoin Cash (BCH) Tests 100-Day Average
Bitcoin cash (BCH) had a good week, jumping 11% during the last seven days. BCH is down a hair today at -0.04% and is trading for $236 per coin. The digital asset has a market valuation of around $4.3 billion and $2 billion worth of BCH trades were swapped in the last 24 hours. Fxstreet analyst Tanya Abrosimova explained that BCH was the fastest-growing coin, but noted upside may be limited by the $240 handle. She added that a sustainable move above the SMA100 daily at $229.00 could bring $240 back into focus and an extended recovery towards $280.30 (SMA200).
Bitcoin and Iran
Over the last few days, rumors have circulated that the escalated turmoil between the U.S. and Iran is benefiting BTC’s recent price spike. After Iranian leader Qassem Soleimani was killed in a drone attack, BTC’s fiat value jumped more than 8%. deVere Group’s founder Nigel Green says, “Bitcoin is living up to its reputation as ‘digital gold.’” However, claims that BTC traded at $24,000 in Iran were debunked. Perennium.io founder Mehran Jalali explained that the BTC-to-rial rate on Iranian exchanges equates to roughly $7,208 per BTC, close to the global rate.
Extremely Optimistic Price Predictions for 2020 Continue
Despite significant declines in late 2019, BTC price predictions remain bullish. Antoni Trenchev of Nexo told Bloomberg that BTC will touch $50K by year-end, citing the “new gold” narrative. However, Reddit forum r/buttcoin shared 26 failed ‘expert’ predictions from 2019, including Pantera Capital CEO Dan Morehead’s $20K call and analyst Ronnie Moas’ $28K forecast.
Wyckoff’s Sign of Strength
Former Goldman Sachs analyst Murad Mahmudov shared a chart showing BTC may be following a Wyckoff pattern. BTC currently appears in an SOS (sign of strength) phase, suggesting a possible price rise. BTC/USD long positions reached an all-time high on December 22 but have since declined, while shorts remain low. ETH longs are rising exponentially, with shorts largely absent. The recent surge has traders curious about the next market direction.
Disclaimer: This article is for informational purposes only and should not be considered trading advice. Cryptocurrency trading carries high risk.