How LOW Will ETH XRP LTC Altcoins Go?
As we can see right now there is a major shift in Bitcoin dominance occurring, today we are going to be looking at some technical analysis for some Altcoins as well as comparing Bitcoins price action right now to Gold. Then we are to be going over some awesome headlines including Binance pledging to burn over two billion dollars in there tokens as well as some Donald Trump controversy and then talking about Tether mistakenly printing over five billion dollars worth of USDT. We’re going to look at really what’s happening with these Altcoins and where we’re projected to start heading in the next several weeks as we’re seeing these altcoins like Ethereum and Litecoin and Ripple getting brutalized right now by bitcoins consolidation.
This is actually a chart we had before this initial ABCD correction occurred and it has stayed strong and true for the last three weeks. You can see we dipped right into this accumulation zone the biggest thing that I want you guys to realize out of this TA here is we bounced on this 50-day moving average this red line right here, which is a very very healthy correction. That’s exactly what we needed and as we talked about two weeks ago we were waiting for this 50-day moving average to start heading towards this accumulation zone that we drew out and that 9800 to 10400 area has acted as a really good entry for Bitcoin to then go ahead and immediately see profits with Bitcoin heading back into the consolidation zone towards that 10700 to 12300 range. I don’t expect us to just break through this EMA the exponential moving average, which is this light blue here. I think we’ll see a target of around 11200 and then maybe see some pullback back down towards this support of around 10700 and then continue to consolidate within this zone.
If we look at Gold’s price action and Bitcoin the fact that it’s pretty much mimicking what’s happening with Gold you can see better price action on the daily for Gold as we’re still above that EMA. So we’re still bouncing Bullish and then not only that we triple bottom here but we are still at this consolidation area. So I expect the exact same thing to happen here with price action for Bitcoin and for us to stay in this consolidation area because you can see, we’re not necessarily seeing the best amount of buy volume. However we’re seeing just enough to stay in these zones and just knowing that the fact we’re in this consolidation zone, we want to pay attention to what’s happening with Altcoins. So the scenario that I’m looking at here right now Is that the consolidation for Bitcoin will continue and altcoins are potentially going to continue to drop.
With Bitcoins dominance right now we’re starting to see Bitcoin break major resistance right now with its dominance and you can see on this weekly chart. We are starting to head back towards that 80% dominance range that I talked to you guys about in the past and I definitely believe this is going to continue to see upside. What’s interesting is we broke a major support level which is now going to act as resistance and so we’ve pretty much got this consolidation area here between 220 billion and 280 billion. I believe will see some sort of consolidation while we start to see more of these altcoins loose satoshi value and bitcoin to continue to gain its value.
Let’s talk about these Altcoins so if we look at this double chart here we look at what’s happening right now in comparison to Bitcoin and these Altcoins. Let’s pull up Ethereum to Bitcoin here, you can see we’ve got this daily chart here to the right as well as this daily chart to the left and if we were to go ahead and look at what has happened since Bitcoin has entered this consolidation zone you can see here what happened to Ethereum since Bitcoin has entered this zone. It has just been traumatized you can see it broke this major support of 2.5 million Satoshi’s and we will look at the weekly chart that is now going to act as a very strong resistance and now we have this huge downside potential to go all the way down back towards that 742 k satoshi range all the way from around 2 million. If you were to ask me right now, what’s the best place to have your liquidity? I would say Altcoins right now are extremely dangerous, we talked about how Bitcoin was going to possibly do this and as you can see, it’s starting to play out for itself.
When we look at Litecoin you can see also broke major support levels still on its way down still in a major downtrend on these on this weekly chart. The same exact thing here with Ripple, it’s actually looking a lot worse you can see that major support here broke and we’re starting to head down. If we look at this daily chart here compared to what’s happening to BTC in this consolidation area you can see as Bitcoin consolidates were still seeing downside with these Altcoins. With that being said I am expecting us to now with this total cryptocurrency market cap breaking this major support level, I am going to be expecting us to see some form of consolidation between this 220 billion dollar market cap to 280 billion dollar market cap allowing Bitcoin to also consolidate and then seeing a transfer of capital and liquidity going from altcoins towards Bitcoin.
I’m going to show you guys a chart here that’s also going to prove all this. If we pull up the coin market cap chart, you can see Bitcoins dominance breaking these major resistance levels while altcoins are on a very clear downtrend right now with altcoin dominance in comparison to Bitcoin. Why is that the case? Altcoins at the end of the day don’t necessarily have the best intrinsic value and that’s what we’ve always looked for here when looking at any sort of coin or crypto as an investment.
What’s really interesting about all of this as well is when we look at what’s happening with Binance. As we start to see the BNB coin also break major support levels and is in a major downtrend on the weekly. You can see it’s almost as if CZ is coming out and trying to save the BNB coin as they just announced here yesterday Binance pledges to burn its entire team allocation of BNB over two billion to be burnt. CZs says we want to give back more to the community and we also think that’s best for the BNB token at this stage as well as we want to increase the utility of the token and have more people use it then just say we want to increase the revenue for Binance. It’s hard for me to believe the fact that they don’t want to see more revenue for Binance, I think this is a way for them to now make the BNB coin a little bit more valuable so that it can stop this downtrend and at least hopefully start to uptrend alongside with Bitcoin. I definitely think that CZ and the Binance team is realizing right now that with looking at Bitcoins dominance its broken these major resistance and we’re starting to see Bitcoin take all of the liquidity in this market as we start to see altcoins lose liquidity and lose USD value alongside with satoshi value. So that’s the biggest thing right now with what’s happening in the market.
You can see if we look at confirmed transactions per day, which is also a very important fundamental aspect of Bitcoin. We’re maintaining these higher levels of transactions per day over 300,000 per day which is where we peaked when Bitcoin initially hit 20000 US dollars. We’re seeing this more consistent use of Bitcoin is also showing me that the intrinsic value here is starting to flow more towards Bitcoin than it is towards these Altcoins.
To move on to some more analysis and fundamentals here the US Treasury secretary slams Bitcoin, Crypto, and Libra saying its a national security issue. What’s very interesting about that is you can also see Donald Trump finally tweeting about Bitcoin saying I’m not a fan of Bitcoin and other cryptocurrencies which are not money and whose values highly volatile. Well, here’s the thing, we know it’s not money. That’s not the point of Bitcoin, it’s a storage of value and It’s not supposed to be used as a currency because as a currency in its form currently, it’s not efficient, right? So yeah, Donald Trump might be tweeting about Bitcoin and yes the US Treasury secretary might be saying that is a national security issue but at the end of the day they can’t stop it and if they were to try to quote unquote ban it or try to implement more strict regulatory actions towards this market it’s just going to increase the value. Just like anything else because now not only will Bitcoin become more valuable it’s going to almost be like a drug now, it’s like yo you got some Bitcoin? Let me get some Bitcoin! That’s going to increase the value because now it’s harder to access and so they’re not just going to overall ban it they’re not just going to create crazy regulatory strict rules against it. I think it’s something that just can’t be stopped right now and I think that’s a very important thing to realize but there’s still a lot of maturing this market needs. There’s still a lot of things that are in. a gray area in this market. Such as Tether mistakenly printing 5 billion tokens here recently, just understanding how Tether works it’s almost like a legal Ponzi scheme. They’re currently in a lawsuit with the US Justice Department meaning there’s still maturity to be made in this market. I don’t think we’ve seen any institutional volume come in but more of institutional interest while starting to see large amounts of people utilize this technology to transfer value over borders. It’s creating an economy of its own as we’ve talked about here before in the past and therefore I think that we definitely have a huge future for Bitcoin.
Did you guys see the headline with JP Morgan? There was a ship owned by JP Morgan that was caught with I think it was like two million pounds of cocaine. It ridiculous, right? If they’re worried about what people are doing with Bitcoin, I think we should be more worried about our world bank’s are doing. I think there are a lot more issues on the table than just crypto currencies and it’s something that these governments can’t necessarily stop, whatsoever. They can’t just ban Bitcoin, right? You can just download your own node and download all the previous transactions and now you have Bitcoin again. It’s not something they can control at this point and that’s the type of stuff that disrupts industries, right? For the first time ever we’re seeing a disruption in the world economy, we’re seeing in the disruption in the way that we exchange value with people, right? And so Bitcoin is creating a more interconnected economy and alongside with it’s a duplication of what happened with the internet. Which eventually led to social media that created a more interconnected social realm on the digital side. Now we’re just seeing that transition of finance, which is beautiful.
Marx asks with B&B and the token burn will the value continue to rise?
Response: No, I wouldn’t say BNB burning coins is a reason to start buying up BNB.
All of these altcoins have broken major support levels on high timeframes, so what that means is you can see here with BNB we broke this 2.9 million Satoshi mark right here which was a major support here on the high timeframe for BNB and you can see we’re starting to head down.
We do have this next potential support which was previous resistance. Looking at what happened to XRP, It broke that support and it’s still going down. Ethereum is still going down, so these altcoins are just not looking good right now but what’s really interesting is instead of us just seeing a ton of liquidity coming to this market like in 2017 to see a rise in value and Bitcoin dominance dropping because remember that when Bitcoin initially went to 20,000 the dominance went from 65% and within a couple months it dropped all the way down 33% dominancet. The cause of the bear market was Bitcoin losing dominance but it seems as if the cause of this new bull market is Bitcoin gaining dominance. It doesn’t necessarily mean that the total cryptocurrency market cap has to increase in order for Bitcoin to gain dominance. All that needs to happen is we see liquidity go from the Altcoins towards Bitcoin and so that’s why I think it’s really important to get your information from the right sources when it comes to this market since it’s not a trillion dollar market just yet. Yes, there’s a lot more manipulation, a lot more volatility.
So overall Bitcoin is doing very well right now Gold is doing very well right now, It’s just a matter of time before we see what’s going to happen. I don’t think in the near term we’ll see the 13500 level broken, but I will say from inside sources that I’ve had that a 15000 Bitcoin is very very likely soon especially as we start to see the liquidity from these altcoins flow back into Bitcoin because that’s what’s happening in this market right now. People are seeing the intrinsic Value in Bitcoin being a limited asset that doesn’t have unlimited quantity and they’re losing the hope that they had in some of these altcoin projects. Which is also what happened in the 2000s, right? So history will repeat itself.
The biggest thing that has occurred is Bitcoin bounced on its 50-day moving average all these altcoins have broken major support levels, which will now become resistance which means we’re potentially heading down with these Altcoins and Bitcoin will most likely continue to consolidate here as well. As we see the total cryptocurrency market cap also take a little bit of a break because you can see we also broke major support which is now resistance. If we continue to see a consolidation I wouldn’t be surprised for a bounce on that 100 day moving average before we could see any continued upside for Bitcoin. Remember Cambridge Analytics in March issued the recommendation to over 300 billion dollars in managed assets to start putting some of their funds towards crypto currencies and blockchain and that typically takes about a year to a year and half for full compliance for these hedge funds to then go ahead and go purchase the asset of Bitcoin. So if you give it another 6 to 12 months we may or may not ever see these lower prices below 10,000 ever again but hopefully during this accumulation zone we continue to consolidate here. There is going to be opportunities on a daily basis for us to buy Bitcoin during this accumulation area and sell it at higher levels to just constantly take advantage of these 20–30 % swings.
Question from X doctor is XO apart of Libra?
Libra is gonna be a huge deal, Facebook’s only intrinsic value is the amount of users they have on their platform and therefore when they released Libra they’re now giving access to all of their users to utilize a wallet and now that allows them to potentially liquidate into Bitcoin and other cryptocurrencies or just use Libra. So that’s going to be a pretty big deal and I think that’s why we’re seeing a little bit of some hesitancy from regulatory officials. The US Treasury is looking at Libra and Crypto now and they’re like, man this might be an actual security risk because of all the drugs and all the other things that are quote-unquote being used with Bitcoin to launder funds. At the end of the day JP Morgan just got caught like I said moving cocaine, right? One of my mentors told me this he said if you want to see the state of our government just walk into your local DMV, right? So that’s how the government runs and and that’s why we need something to disrupt it. Will it be Bitcoin? We’ll see!
Question from Monster says what about long term before for altcoins? Like BTT
Response: BTT hasn’t been doing bad but just right now in general all coins as a whole are in a state of emergency in my opinion. They’ve all broken major support which means those will now become resistance and so it’s not only confirmed a downtrend but it’salso very likely for it to continue to see downside.
Question: Where do you see XRPs. bottom?
Response: It’s hard to say with these altcoins at this point they’ve all broken these major support levels. The next support here for Ripple is going to be right around that 1200 Satoshi mark from 2900 satoshis. So that’s really what I would look for right now for the next major support, there’s just no volume. You can see we’ve got no volume, no price action. It’s just not looking good Bitcoin is starting to take over.
Question from Marx: Can US investors still put money into Binance?
No, you can’t open up a Binance account if you’re a US customer. If you are currently on an account that will expire in September and you won’t be able to trade anymore but you’ll still be able to withdrawal. Binance should have a new US platform up by than hopefully. The majority of Binance traffic comes from the US so I don’t think CZ is going to jeopardize that business.
That wraps today’s analysis thank you so much for tuning in once again and please subscribe to our TPC YouTube channel and turn on post notifications, I appreciate each and every one of you guys and with that being said Naeem Al Obaidi out!