The Cryptocurrency Sector is on the verge of starting a long awaited rally. The resistance line is at $145 Billion, exactly the level as of early Sunday evening. (https://coinmarketcap.com/).
The Sector continues to be plagued by shady practices. Bitwise Asset Management performed an analysis of Bitcoin’s daily trading volume, thought to average $6 Billion per day. The analysis determined that only 5% or $273 Million per day was legitimate. The rest, or 95%, was offsetting buys and sells or “Wash Trades”. (https://www.coindesk.com/bitcoin-futures-volume-is-more-significant-than-you-think-bitwise-says).
The source of the Bitcoin trading volume is none other than Coin Market Cap (CMC), which has been accused of complicity in the scheme. It’s unclear as to the motives for CMC to provide information it knew was false. (http://www.coinmarketcap.com).
Regardless, the exaggerated volume was a scheme to artificially bolster Bitcoin’s price by making it appear more actively traded.
Individual Cryptos Are On the Cusp of Turning Patterns BULLISH
Presented below is a Slide Show of some of the major Cryptos. The key takeaways are as follows:
- If Bitcoin (BTC) breaks out, its next resistance is $6,100, suggesting a further advance of 50%.
- Ripple (XRP) and Ethereum (ETH) are laggards. Their resistance levels suggest less upside potential than the others.
- Litecoin (LTC) has gained 100% from its lows. It appears to have another 50% to go to its next resistance level of about $100.
- Bitcoin Cash (BCH) has formed a nice ROUNDED BOTTOM. BCH has further upside to its next resistance of more than 100%.
If the Sector rises in tandem with BTC, the indicated target total market value is roughly $215 Billion ($144 Billion X 1.50).
More Bad News Plagues the Crypto Sector
Yet ANOTHER exchange has been hacked with the loss of Cryptos held for sale. Singapore based DragonEx reported the hacking and loss of coins on March 24th. (https://www.cryptoglobe.com/latest/2019/03/dragonex-hacked-users-crypto-transferred-and-stolen/).
The Chicago Board Option Exchange has terminated trading of Bitcoin Futures. That leaves the Chicago Mercantile Exchange as the last remaining regulated US Exchange to trade BTC Futures. (https://www.coindesk.com/cboe-puts-brakes-on-bitcoin-futures-listing).
The proposed Bitcoin ETF by VanEck Global Advisers and Bitwise has once again been delayed until at least mid-May. The ETF is critical for greater investor participation. If approved, it will provide the convenience of buying a stock, presumably with little risk of being hacked. The ETF will create liquidity and help Bitcoin become more mainstream. (https://cointelegraph.com/news/us-sec-delays-decision-on-bitcoin-etf-applications-from-vaneck-and-bitwise).
The True Nature of Cryptocurrencies
Cryptocurrencies have absolutely ZERO investment merit. Holders of Bitcoin own absolutely nothing. No technology, no patents, no cash flow, and no return of any kind. “Cryptocurrencies: Commodities or Collectibles”. (https://markonomics101.com/2018/08/04/inflection-point-part-4-cryptocurrencies-commodities-or-collectibles/).
But, as we continually point out, the lack of investment merit does not preclude trading profits, especially if the Federal Reserve is successful in stoking multiple asset bubbles. “Federal Reserve Stokes Another Asset Bubble”. (https://markonomics101.com/2019/03/22/federal-reserve-stokes-another-asset-bubble/).
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