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Analysis

Ethereum With A Record Number Of Short Positions (300,000) At The Moment

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This week hasn’t been the best one for Ethereum, mainly because of the steep fall and a massive sell-off which affected most of the coins and brought down the total market capitalization of cryptocurrencies to $200 billion – something that we covered in our crypto news section earlier.

The market cap is down $25 billion and Ethereum has suffered even more. According to data from recent investor behavior, the market expects Ethereum to fall even further – mainly because of the sell-off in which ETH was the biggest loser, holding a record number of short positions that crossed 300,000.

In other words, this means that more than 300,000 people shorted Ethereum as investors continued to bet on its price to fall even lower. One of the possible reasons for this is the current existence of sizeable ICO selloffs. Furthermore, many ICOs have sold their ETH positions to make up for potential losses that may occur in the future and to fund their continued project development as well as operations.

According to Thejas Naval who is an analyst at Element Digital Asset Management:

“There’s a narrative that the crypto market was simply falling in lockstep with the equity markets, which are slowly entering into correction zones. We believe this move in cryptocurrencies had nothing to do with the stock market.”

As Naval said, there is evidence that the price of Bitcoin and global stock indices have a little link between them, since Bitcoin was also affected from the recent crypto market crash, falling to as low as $6,200.

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Analysis

Bitcoin Could Soon Fall To $2,400 And Wall Street Could Buy The Dip

The latest Bitcoin news show that the price of the most dominant cryptocurrency is currently hovering around the $3,500 margin. However, no one is certain if Bitcoin will continue with this performance, especially not after last week's sell-off which led many analysts to believe about whether BTC could sustain its price movement. According to one crypto brokerage firm named BitOoda, a further decline is likely but may strengthen - and not weaken - BTC in the long run. As the Executive Vice President of the company Brian Donovan said when writing a daily note to clients, Bitcoin is right now mimicking the trajectory of the 2011 silver bubble during which the precious metal prices exploded to nearly $50 and then crashed soon after. Right now, silver is trading at $15.59 which is nearly 70% down from its April 2011 high. According to Donovan, the silver boom could provide hints about Bitcoin's mid-term prospects. Unfortunately for bulls, this may also bring the price of Bitcoin to $2,400 and a stormy forecast could see this flagship cryptocurrency drop before establishing its footing. As Donovan wrote:
"We believe this thesis still remains intact which could mean seeing a break of the lows in the coming weeks. A 25% selloff in BTC from the current lows of $3,200 would be to roughly $2,400."
He also shared that the next sell-off could be just what the crypto market needs in order to finally break the backs of the bears and reach a new bull momentum in 2019.
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Altcoin News

Crypto Analysts: 2019 May Be A Year Of Bitcoin Accumulation

Over the past day, the crypto market recovered from its previous position and reached $123 billion as Bitcoin also managed to avoid another drop below the $3,600 mark. In the latest crypto news, we take a look at some analysis from multiple crypto technical analysts. Some analysts think that because of the high sell-off intensity in the previous period, there is a strong chance for the price of BTC and other altcoins to drop even further below their support levels in the short-term. Also, they believe that Bitcoin will even decline as low as $3,100 by the end of the bear market before recovering by the end of 2019. Crypto technical analyst Eric Thies said that Bitcoin might start a strong movement upwards by the end of 2019:
 “Similar to 2015, 2019 may be the year of accumulation.’’
Another crypto researcher Willy Woo said that while a crash of bitcoin to $3,122 could lead to an increase in volume, it won’t show signs of starting of the accumulation period. He pointed out:
‘’Despite the technical setup that suggests bullishness is possible, there’s not a lot on-chain volume to fuel a prolonged up move. What we saw in the last 7 weeks was a spike of on-chain volume driven by volatility, coins moving to exchanges to trade. The initial volume spike false signalled a faster detox and an earlier end to the bear market, but in fact it was a volatility side effect. That move from $6k to $3k created immense trade volume, but it was in no way a signal that accumulation volume had begun.’’
Until evidence for the accumulation of crypto assets shows up, there are still expectations of high volatility levels.
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Altcoin News

Scott Galloway Of UCLA Believes Crypto Will Get Worse In 2019

A professor from the University of California, Los Angeles (UCLA), Scott Galloway, believes that crypto will be even worse this year and in our bitcoin news today we find out more about his opinions. Galloway thinks that crypto will struggle even further in the following 12 months because most of the emerging technologies and markets tend to move by cycles. This is why the crypto market seems to be unaffected by the developments in the industry and this is why the value of digital assets moves mostly because of sentiment than by short-term events. Last year, many of the emerging markets such as crypto and virtual reality, had really poor progress and market growth. It is extremely hard for new technologies to go with massive changes since the investors become impatient really easy. However, prior to 2018, all of these technologies had great years which led to their value increases. The professor pointed out:
‘’VR and crypto go from bad to worse. AI fails to live up to the hype. 3D printing rises from the ashes. Smart cameras become a hot category.’’
His assessment seems to be accurate but can the crypto market prove to be the odd one out? This can be so since many industries are really committed to the crypto sector. Companies such as Fidelity, ICE, and Nasdaq have funded at least five projects in the crypto space over the past year. Venture capitalist Jim Breyer even said:
 “So many of the very best computer scientists and deep learning Ph.D. students and postdocs are working on blockchain because they have so much fundamental interest in what blockchain can mean. You don’t want to bet against the best and brightest in the world.’’
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Altcoin News

Crypto Markets In The Green Again As Bitcoin Jumps To $3,712

Bitcoin as the number one cryptocurrency by market cap was crushed within the past week with three major sell-offs when its price dipped below the $3,481 price level. In today’s bitcoin news we can gladly say that the markets are turning green and BTC is back up. Monday is a great day for bitcoin since the price for the biggest digital asset increased up to $3,712 after falling below the $3,500 price point. The recovery was noticed in other cryptocurrencies as well such as Ripple rising 2.4 percent and ethereum rising by 6.4 percent. The best performer turns out to be TRON which leaped by 11 percent after the criticism of the former employee of BitTorrent. It is still not quite clear that boosted the market though some analysts think that this could be a result of the growth in trading volume. However, many other analysts such as bears like Mark Dow and bulls like Willy Woo, think that they identified the technical and most important weakness that could lead the bitcoin price to drop at least in the immediate future. It is important to notice that cryptocurrency isn’t the only asset trying to recover from the previous slump. For example, the Dow Jones Industrial Average traded really low at 230 points in the pre-open futures market but has since trying to cut back the losses after the United States President Donald Trump stated that China and the US are really close to making a trade deal.
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