Bitcoin is 6% higher so far today at $4,271 with its crypto peers following its lead. This represents another impressive bounce off $4,000 support but unless momentum carries the price decisively beyond the previous near-term high near $4,500 then we might be cheering too soon. The overall market has put on $7 billion in market cap.
The mere fact that everyone on reddit is still waiting/hoping for the bottom is probably an indication that the bottom may not be in soon.
The Hodlers are the next target of the shorters. The consumers who bought in the crazy bull run are largely out of the market now, so now it’s down to the true-believers to capitulate.
Stop calling the bitcoin bottom
But at what level will that happen? Probably long way from here. We may need to see a sub $1,000 level before some of them start to throw in the towel or at least calling for buying the dips. As you can tell, we are decidedly bearish from here.
The market situation will not improve until the institutional money turns up. That depends not so much on an ETF approval and advent of the Fidelity Digital Asset Framework, Nasdaq trading bitcoin futures or Intercontinental’s Bakkt launch.
Rather, it depends on the direction of the tech sector of the stockmarket which is threatening to fall into bear market territory. If that happens it pushes back the arrival of the institutions as they may shun riskier asset classes, and crypto is certainly at the high-risk end of the spectrum.
BTCUSD 1-hour chart
Stellar ($0.168, up 5.5%) has crept ahead of Bitcoin Cash ($176, up 1.5%) in the market cap stakes to take fourth place.
Satoshi Nakamoto resurfaces
Litecoin is the best performer among the top altcoin, ahead 8% at $34.53, perhaps helped by the resurfacing of Satoshi Nakamoto on the P2P Foundation forum, where he, she, they posted the word “nour”, which in Arabic means light.
Another coin in the news is EOS. It is higher too today, at $3.00 for a 4% gain. There were concerns from inside the EOS world after chief tech officer at Block.one Dan Larimer said he was working on a new coin which would be “immutable, non-programmable and limited to a currency role”.
Larimer has denied that it means he is leaving EOS behind. Larimer has form with the light-footedness.
He is the engineer behind Steemit and BitShares before it, both of which he moved on from. Is he doing it again, is the fear of EOS token holders.
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK’s second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane