Bitcoin Pump, Alt Suicide, Litecoin Halving and OKEx Token Bucking the Trend - Market Analysis

At the time of writing, Bitcoin (BTC) is fighting to hold its new toehold just at $12,000, after an exceptional bounce from $9,400 in early August. Time will tell if Bitcoin will break full bullish again now, but the long term uptrend is very much intact either way - and that seems unlikely to change during 2019.

Altcoins, however, have been committing veritable suicide during July, with little changing as we head into August. Some cryptos, like XRP and Ether (ETH) have seen eye-watering new lows on the Bitcoin trading pair. Litecoin, with its halving now complete, has been doing a little better after correcting from local highs in April. The last Litecoin halving was quite a bumpy ride, and the silver crypto has lost about 20% versus Bitcoin already in August.

OKB

Not all altcoins have been getting slaughtered, however, and OKEx’s proprietary OKB token is definitely one of them.

OKB has outperformed BTC lately(source: Charts.cointrader.pro)

Looking at this 3-day chart, we note that OKB/BTC has had great success in reclaiming some lost territory after a double bottom in June-July. It has held this area near ₿0.00030, which has resulted in significant gains on the USD side. However, the falling volume here is some subject of concern.

Looking at the daily chart and indicators, we have some reason to be cautious about OKB. The indicators have taken a southward tack since late July. The RSI has been trending down on the daily, with lower highs and lows - although the recent low was less low than the previous. Same story on MACD/histogram: MACD has crossed bearish but looks to be curling back up for a potential re-cross; and the histogram has crossed down bearish but looks to be downticking less intensely.

Indicators have broken down a bit, but could reverse before price catches up(source: Charts.cointrader.pro)

Price has held through, impressively, and if the indicators can stabilize and point back north while price holds here, OKB could easily climb to the next level at ₿0.00035. If not, a higher low would also be acceptable.

Litecoin

The silver crypto (silver to Bitcoin’s gold) has successfully halved its block reward only, at time of writing, about a day ago. LTC has been taking a nasty tumble since the month started, though, predictably as Bitcoin began its most recent leg up.

Litecoin has been in general trying to find a bottom for quite some time. Although not being completely “rekt” like some other altcoins, the silver crypto has tumbled since peaking in June. And this downtrend is perhaps not over.

Not a nice picture on HTFLTC Chart by TradingView

Looking at the 2-day chart, we see the high timeframe (HTF) indicators still flashing red. The histogram is still ticking scarily down toward the negative side; the RSI would have a nice bull divergence here, if price reverses now - but that’s a big if.

Although history does not repeat but merely rhymes, let’s take a look at … history. The last Litecoin halving, in August of 2015, was preceded by a huge price runup and subsequent dump, followed by a smaller dump right during the halving event. After that, price (in BTC terms) kept steadily falling.

Hopefully, this doesn't repeat ...LTC Chart by Trading View

With half the reward, miners should - efficiently, anyway - only keep mining if they anticipate the asset’s price to rise in future. If we just look at the price versus Bitcoin, it took Litecoin about one and a half years to stop falling. Eep.

Ethereum

The leading smart contract altcoin, ETH, has been no barrel of delicious cherries lately, either. Versus BTC, Ether’s decline during 2019 has been pretty shocking: after first retesting and then breaking long historical support, it has carved now into multi-year support dating all the way to 2017 - and has still been unable to find vigorous buy support.

Really no love hereETH Chart by TradingView

This 2017 band of support is itself barely holding, and the ETH daily indicators look nasty with little sign of support or buy volume. The RSI daily trend line has been broken, although there are some slightly more encouraging signs on the higher timeframe indicators - barely. Only expert scalpers and long term value investors would be buying at this time.

Bitcoin

Finally, the leading crypto has been going through a period of consolidation since reaching local highs ($14k) in June not far away from all time highs.

BTC is, at time of writing (covered more in-depth here) having a bit of drama as it stands on the brink of breaking out - and up - through that consolidating structure. Briefly climbing above $12,000, which is the critical mark, it has since a couple hours ago been rejected and is battling to maintain presence in the breakout area itself.

BTC is decided whether or not it wants to break outBTC chart by TradingView

If we take the channel seriously, Bitcoin could take quite a tumble if it does not manage to break out here. But likewise, there are several support areas would could catch the leading crypto to form a higher low. Even maintaining the 33-day EMA would be a major success, as this is an important 2019 level that had held Bitcoin’s uptrend until mid-July.

All in all, Bitcoin is still doing very well. No damage to its long term prospects has come, and we could easily see new all time highs soon - especially if $12,000 is retaken and held for any length of time. Even if it’s not, we would need quite a lot of downside to get bearish long term.

As for the altcoins, most of them are drowning to death. Bitcoin dominance continues to rise (now at nearly 70%), and most of them have been unable to find any long term bottoms - even if some are flirting with the idea.

The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Bitcoin Is ‘Worthless’ Says John McAfee After Predicting It Would Hit $1 Million

Francisco Memoria

Eccentric cybersecurity entrepreneur John McAfee has bashed bitcoin claiming the flagship cryptocurrency is “worthless,” even though he had predicted it would reach $1 million by the end of this year, before calling off his prediction.

On social media, McAfee responded to a user who said he believes the cybersecurity expert was only followed because of his bitcoin price prediction, to which McAfee responded bitcoin is “worthless.”

In response various users criticized McAfee for past predictions he got wrong – including for various altcoins – while others tried to defend BTC has value. McAfee is well-known in the cryptocurrency space for a famous $1 million bitcoin price prediction.

On social media, the eccentric entrepreneur initially claimed, in July 2017,  the price of one bitcoin would be above $500,000 by the end of 2020. In November ,when the price of bitcoin was moving toward its $20,00 all-time high by December 2017, McAfee said he predicted the $500,000 mark based on “a model that predicted $5,000 at the end of 2017.”

As such, he revised his prediction to say BTC would hit $1 million by the end of 2020. I January of this year, after the cryptocurrency endured an year-long bear market and subsequently failed to recover to its previous all-time high, McAfee claimed the prediction was a “ruse to onboard new users” and dropped the prediction.

In a tweet revealing the “ruse” McAfee claimed bitcoin is “ancient technology” as newer blockchains have “privacy, smart contracts, distributed apps and more.” McAfee would later on criticized the flagship cryptocurrency, calling it “old” and “clunky.” Per his words, bitcoin is the “Hotmail of crypto.”

Notably billionaire Chamath Palihapitiya, the CEO of Social Capital, has recently argued that the price of bitcoin may increase significantly over the next decade to reach $1 billion per coin.

Featured image via Unsplash.