Trend Analysis

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Trend Analysis: BTC

The trend analysis is based on the wavelet transform. The wavelet transform analyzes trends, cycles and patterns at multiple timescales. Cyclical patterns are removed to provide a “trend” view of markets. This allows the analyst to distinguish between these different properties.

If the trend signal is positive, it means that the market is in an up-trend. If the signal is negative, then the market is in a down-trend. The trend signal will be zero when there is no clear trend present.

Crypto Market Cap Chart

The crypto market is currently in a long term down trend. While it’s uncertain whether the market will continue to fall or find a bottom, we can use trend analysis to help us profit from this uncertain market. We’ll be focusing on Bitcoin for our examples because it is the largest coin by market cap and thus has the most liquidity.

Crypto Market Cap Chart – Analysis

BTC/USD is currently in a long term down trend. This can be seen on the weekly chart as price has been making lower highs and lower lows. There are two likely scenarios that will play out from here:

Scenario 1: The current down trend will continue and price will reach new yearly lows below $5,000. If this scenario plays out, we’ll be looking for sell signals in the form of bearish reversal candlestick patterns near previous support levels like the $6,000-$7,000 area (blue box).

Scenario 2: The current down trend ends soon and BTC/USD forms a bottom at one of its previous support levels like $6,000 or $4,000. If this scenario plays out, we’ll be looking for bullish reversal candlestick patterns near these previous support levels. We can then go long

BTC is the largest cryptocurrency in terms of market capitalization and has a market dominance of over 45%. The asset is the most popular among institutional investors and crypto enthusiasts. Given the overall trend, we believe that BTC will hit new ATH in 2020.

The cryptocurrency has been on an upward trajectory for most of 2019. BTC has gained about 150% since March and about 50% since December 2018. Price action has been choppy, but we expect a gradual rise to $12k to $15k levels.

From a technical viewpoint, BTC is currently trading at $7,700 level with strong support around $7,300 level. The RSI indicator is trending above 60 levels and MACD is diverging positively which indicates a bullish momentum in price action.

We would initiate long positions with stop loss around $7,000 level and with profit targets at $8,500 to $9,000 in the near term.

Bitcoin is currently trading above $10,000 and its market cap is now over $180 billion.

The crypto market has been bullish for the last two weeks, with Bitcoin (BTC), Ethereum (ETH), and XRP leading the pack.

On December 10, the bulls broke above $9,200 to reach a high of $10,000 on BitMEX. The price dipped to $9,300 but has since recovered to trade at $9,950 at the time of writing. This recent move comes after a prolonged period of sideways trading since September.

The crypto market is now worth more than $200 billion and Bitcoin’s dominance rate has risen above 68%.

Bitcoin Price Analysis

The chart above shows BTC/USD is in a strong uptrend and just broke above the previous resistance at around $9,200. It reached a high of $10,000 on BitMEX before dipping down to around $9,300.

The price is currently trading above both the 50-period simple moving average (SMA) and the 100-period SMA on the 4-hour chart.

This indicates that bulls are in control of BTC price action right now and that the uptrend could continue if these averages remain intact for an

BTC Market Cap has been on the rise, with huge spikes in the last few months. While this can be attributed to a few factors, this article will focus on what we believe to be the most important, on-chain transaction volume.

We analyzed the data and found that BTC Market Cap is correlated with on-chain transaction volume better than any other metric. This growth is likely because as more people transact on-chain, they are able to exchange value without third parties which translates into higher market cap.

The price of Bitcoin has been quite volatile in history, with some large corrections observed. It is the first cryptocurrency to gain traction, which makes it’s chart very interesting in terms of how it has developed.

Top 10

As we’ve seen in previous months, Bitcoin is dominating the cryptocurrency market. In August 2018, BTC accounted for more than 50 percent of the total cryptocurrency market cap.

Top 20

This month, six out of the top 10 cryptocurrencies have experienced negative growth. EOS and Stellar are the biggest winners, while IOTA and Cardano are the biggest losers.

Top 30

The cryptocurrency market capitalization went down from $293 billion to $214 billion during August 2018. Six out of the top 30 cryptocurrencies have shown positive growth this month. The biggest winners are Binance Coin and VeChain, which grew by more than 70 percent. The biggest loser is Cardano with a 55 percent loss in value.

Top 50

The total cost of all 50 coins has dropped by 26 percent since July 2018. Four out of the top 50 cryptocurrencies have shown positive growth this month: BAT (29%), Binance Coin (73%), VeChain (78%) and Loom Network (24%). The biggest losers are Cardano (55%), IOTA (45%) and Maker (42%).

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