Unlike Facebook, Bitcoin Is Never Down — Analysis, 11 Oct
On Monday, October 4th, Facebook, the most popular social network globally, went down. The outage continued for hours, and millions of users remained without access to the Facebook services.
The crypto community took advantage of Facebook’s weakness and praised Bitcoin by underlining that Bitcoin is never down:
A cryptocurrency enthusiast with the handle @de_school on Twitter highlighted that the decentralized Bitcoin network is more reliable and works better than the networks of the current tech giants such as Amazon, Facebook, Google, etc.:
Busta Rhymes, a famous American rapper and record producer, voiced his view that the cryptocurrency community needs an alternative to Facebook, namely, a blockchain-based decentralized social media platform:
The famous American singer received an immediate answer from the developers of HIVE Blockchain. They clarified that a decentralized alternative to Facebook already exists. It has over 2 million users and runs on the blockchain of HIVE:
Another intriguing event that took place last week was the statement of Gary Gensler, the U.S. Securities and Exchange Commission (SEC) Chair, that the SEC has no plans to ban cryptocurrencies:
Gensler’s announcement supported the crypto market, and the prices of the leading cryptocurrencies such as Bitcoin, Ethereum, etc., have started to increase.
After another positive week for most major cryptocurrencies, the Monday market starts with mixed price dynamics. According to Coin360.com, one Bitcoin costs €48,969.53 (+2.02%), one Ethereum — €3,040.60 (-1.69%), one DOGE — €0.2008 (-3.88%), and one UNI — €21.12 (-4.88%):
Now, let us analyze the price charts of the leading cryptocurrencies against the euro in the most noteworthy time frames.
In the 4-hour chart (4H), BTC/EUR has already clearly exited the Bullish Flag (common trend continuation pattern) and has resumed the uptrend:
To figure out the potential price targets, we will use the height of the flag pole and the Fibonacci retracement levels. First, we add the new flag pole to the chart starting from the breakout point. Then, we apply the Fibonacci retracement levels to this new potential price increase wave:
The first price target (already achieved) is the 38.2 Fibonacci retracement level (around €45,739). The next goal is the 61.8 Fibonacci retracement level (approximately €50,613). The price will probably reach this level. The full height of the potential wave or the 100 Fibonacci retracement level (around €58,503) represents the final goal.
In the weekly chart (1W), ETH/EUR has formed a Doji after the Bullish Engulfing, indicating that the market has entered a period of indecision:
However, we still think that the bullish sentiment will prevail, and the bulls will try to push the price of Ethereum further up. So let us have a look at the daily chart (1D) of ETH/EUR, where the price continues to move forward within the Ascending channel (uptrend):
As we already mentioned in our last analysis, we think ETH/EUR will reach the level of the previous local highs or approximately €3,350 during its journey within the channel.
Although most of the major cryptocurrencies have started to increase in price, Dogecoin is still moving sideways. In the daily chart (1D), DOGE/EUR is consolidating at the 30-day Moving Average (MA 30) and the 90-day Moving Average (MA 90):
In the chart above, we cannot find any clear signal regarding the direction in which the price will exit the consolidation, so let us move on to the shorter time frames.
In the 4-hour chart (4H), DOGE/EUR is still within the Descending channel (downtrend):
However, as can be seen from the chart, the price is currently testing the upper line of the channel. If there is a breakout, DOGE/EUR may restore the bullish sentiment, and a bullish signal may pop up. For now, we prefer to stay away from the market and wait for a clear bullish signal to take action.
In the weekly chart (1W), after the two Dojis and the small bullish candlestick, UNI/EUR has formed a small bearish candlestick:
We believe this sequence of candlesticks indicates that the bulls and the bears have found consensus, and the market has entered a period of consolidation.
In the 4-hour chart (4H), UNI/EUR has already exited the Descending channel, but it has still not surpassed the level of the last local high from the channel:
As we already mentioned in our last analysis, we will wait for the price of Uniswap to surpass the previous local high or €23.30, and then we may open a small long position.
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Originally published at https://bitvalex.com.
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