The daily pump and dump is a weekday update on the crypto market that gives you a brief breakdown of the price action related to Bitcoin, Ethereum and other trending altcoins.
Today’s summary:
- Bitcoin retests $30,000 after rejection.
- Why is Ethereum lagging behind the rest of the crypto?
- ICP Post Mad Intraday Rally.
Bitcoin Retests $30,000, Can Key Levels Be Holding?
Bitcoin price was rejected by resistance at $32,000, sending the cryptocurrency back to support again at $30,000.
The decline took daily BTCUSD to the mid-Bollinger Bands – the 20-day simple moving average. Holding the line could lead to further upside, while losing could indicate a continuation of the downside.
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 for the bulls to overcome, while the bears remain within striking distance of new lows.
Related Reading | Hammer Time: Bullish Signals That Could Save Bitcoin
Ethereum is losing its head (and shoulders) against BTC
Compared to Bitcoin, Ethereum is also not performing well. The top altcoin does not represent the position of the alt as a whole, which in some cases has seen a strong recovery today.
Ethereum could head down further against BTC | Source: ETHUSD on TradingView.com
Upon closer inspection, ETHUSD is well below the 20-day SMA on the same mid-Bollinger Bands and daily time frame as Bitcoin. The ETHBTC pair is exhibiting anomaly, which is at risk of further breakdown if the horizontal support is breached.
Internet Computer Boots 20% Rally
An outlier in the market today is the Internet computer. The coin of Dfinity Foundation registered a double digit gain on the day. Given the price action and its location within the Bollinger Bands, with Bitcoin visually more bullish than Ethereum, ICP is most poised for aggressive expansion.
Bollinger Bands is a volatility measurement tool. When the bands tighten, it indicates that volatility will soon arrive. Closing outside the upper band is not always a bullish signal and could result in a reversal. If volume comes in when price closes outside the upper band, a stronger move is more likely.
ICP requires strong volume to keep the recovery going | Source: ICPUSD on TradingView.com
An intraday climb of 20% is expected to decline by 98% since the start of the crypto market. At launch, it had bids of over $500 per ICP, putting the coin immediately among the top ten cryptocurrencies by market capitalization.
Related Reading | LUNA Aftermath: The Overall Crypto Market Is More Oversold Than On Black Thursday
From a risk versus reward perspective, a return anywhere close to the first price from today’s price of $9 per ICP would represent approximately 50% ROI on capital, or 50x the 5,000%. It can prove too tempting to pass up.
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Featured image from iStockPhoto, Charts from TradingView.com
