The daily pump & dump is a weekday update on the crypto market providing you with an abbreviated breakdown of price action related to Bitcoin, Ethereum, and other trending altcoins.
Today’s summary:
- Bitcoin can be retested $30,000 following a rejection.
- Why does Ethereum trail the rest?
- ICP postings As insane as you can getIntraday rally
Bitcoin Retests $30,000 – Can The Key Level Hold This?
Bitcoin prices were fiercely rejected at resistance levels of $32,000. The cryptocurrency was sent back to test support at $30,000.
The fall took BTCUSD daily to the middle-Bollinger Band – which is a 20-day simple moving average. The line may be held, which could mean more upside. However, losing the line would suggest continued downside.
Bitcoin is trying keep above the 20 day SMA. Source: TradingView.com.| Source: BTCUSD on TradingView.com
The immediate obstacle for bulls is to close at $32,000, but bears will not be far behind.
Similar Reading| Hammer Time: The Bullish Signal That Could Save Bitcoin
Ethereum losing its head (and shoulders) against BTC
Compared to Bitcoin, Ethereum isn’t performing as well. This top altcoin does not reflect the overall state of alts, some of which are experiencing strong recovery today.
Ethereum could fall against BTC -- Source: TradingView.com ETHUSD| Source: ETHUSD on TradingView.com
ETHUSD’s middle-Bollinger Band is much lower than Bitcoin’s 20-day SMA and middle-Bollinger Band. This can be seen when you examine it closely. This discrepancy can be seen in the ETHBTC-ETHUSD pair. Horizontal support could cause further collapse.
Internet Computer Starts up 20%
Internet Computer is a market outlier today. Dfinity Foundation’s coin saw double-digit gains for the day. Much like Bitcoin is visually more bullish than Ethereum considering price action and its location within the Bollinger Bands, ICP looks the most poised for aggressive expansion.
Bollinger Bands can be used to measure volatility. The Bollinger Bands are a volatility indicator. When they tighten it means that there will be more volatility. Closing outside of the upper band isn’t always a bullish signal and can result in reversal. A strong rise higher can be possible if volume arrives as the price closes above the upper band.
TradingView.com - Source: ICPUSD| Source: ICPUSD on TradingView.com
Given the crypto market’s 98% decline since its debut, the intraday increase of 20% is not surprising. It was launched at more than $500 per ICP, placing it immediately among the top 10 cryptocurrencies in terms of market capital.
LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday| LUNA Aftermath: Total Crypto Market More Oversold Than Black Thursday
From a risk versus reward perspective, returning anywhere near close to debut prices from today’s price of $9 per ICP would represent nearly a 5,000% ROI or a 50x on the capital. This may be proving too enticing to pass up.
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Featured image taken from iStockPhoto. Charts from TradingView.com