Daily Pump and Dump is a weekday update of the cryptocurrency market that provides you with a brief analysis of price action related to Bitcoin, Ethereum and other popular altcoins.
- Bitcoin retests $30,000 after rejection.
- Why is Ethereum lagging behind the rest of the cryptocurrency?
- ICP Posts crazy March during the day.
Bitcoin Retests $30K, Can Major Level Hold?
Bitcoin price was hardly rejected from the $32,000 resistance, sending the cryptocurrency once again to retest the $30K support.
Autumn took daily BTCUSD to the middle-Bollinger Bands It is a 20-day simple moving average. Consolidation on the line may lead to more upside, while its loss indicates the continuation of the downtrend.
Bitcoin is trying to hold above the 20-day SMA | Source: BTCUSD on TradingView.com
A close above $32,000 is now an immediate hurdle that the bulls will have to overcome, while the bears remain close to fresh lows.
Related reading | Hammer Time: The Bullish Signal That Could Save Bitcoin
Ethereum loses its head (and shoulders) to BTC
compare to bitcoin, Ethereum It does not work well. The top altcoin does not represent the case for altcoins as a whole, which in some cases have seen a strong recovery today.
Ethereum could head down further against BTC | Source: ETHUSD on TradingView.com
On closer inspection, ETHUSD is well below the same mid-Bollinger Band and 20-day SMA as Bitcoin on the daily time frames. The inconsistency appears in the ETHBTC pair, which is at risk of further breakdown if horizontal support is breached.
Internet computers increased by 20%
One of the things out of the market today is the internet computer. Dfinity Coin posted double-digit gains on the day. Much like Bitcoin is visually more bullish than Ethereum given the price action and its position within the Bollinger Bands, ICP looks more poised for aggressive expansion.
Bollinger Bands are a volatility measurement tool. When the strips narrow, this indicates that volatility will arrive soon. A close outside the upper band is not always a bullish signal and can lead to a reversal. If volume reaches as price closes outside the upper band, a strong upward move is possible.
ICP requires strong volume to keep the recovery going | Source: ICPUSD on TradingView.com
A 20% rally is expected on the day given the 98% drop since its debut in the cryptocurrency market. At launch, bid more than $500 per ICP for coin mode Immediately in the top ten cryptocurrencies by market capitalization.
Related reading | Beyond LUNA: The Crypto Market Oversold Overall Over Black Thursday
From a risk vs reward perspective, a return anywhere close to pop-up prices from today’s $9 per ICP would represent roughly 5,000% return on investment or 50 times the capital. This can be too tempting to miss.
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Featured image from iStockPhoto, Charts from TradingView.com