Critics are pointing to large energy consumption by the Bitcoin mining industry as a threat to the global climate. However, CoinShares, a digital asset management firm, estimates that about 77.6 percent of Bitcoin mining is done using renewable energy, arguing the harm to the environment is much less than what it is made out to be.
After the mayhem in November, crypto markets are showing the first signs of buying at lower levels. The total market capitalization of all cryptocurrencies peaked just above $138 billion today, a 20 percent increase over the year-to-date lows of about $115.101 billion.
The markets are unlikely to switch from a downtrend to an uptrend in a short span of time –– we anticipate a few weeks of base building before cryptocurrencies launch a new uptrend. All the virtual currencies will not bottom at the same time and neither will they rally equally higher. Hence, an eye on the chart patterns can help traders enter the outperformers at the right moment.
TRX/USD
TRON (TRX) has overtaken Ethereum as the most popular decentralized application (DApp) platform in the world, according to DappRadar, a website that monitors DApp platforms.
TRON’s founder and CEO Justin Sun said that the virtual currency will add privacy features to its network early next year. The company is also establishing a blockchain gaming fund, TRON Arcade, with an investment objective of about $100 million in the next three years.
TRX/USD
After TRX stayed in the range of $0.01587681–$0.02815521 for about three months, the bears broke below it last week. The breakdown had a lower target of $0.00844479, but the bulls are attempting to bounce off $0.01089965. Currently, the previous support of $0.01587681 will act as a stiff resistance. If the bulls succeed in rising and sustaining above this resistance, a rally to the 20-week EMA is likely.
The TRX/USD pair has not been able to break out of the 20-week EMA since falling below it in early June. Therefore, if the bulls climb above it and the top of the range at $0.02815521, we can expect the start of a new uptrend. However, if the bears defend the resistance, a retest of the recent lows of $0.01089965 is probable.
LTC/USD
Some see Litecoin (LTC) as a failed experiment and they expect the price to fall further. However, others believe that the current fall is a buying opportunity and the digital currency can make a new high in the future. Let’s take a look at what the charts suggest.
LTC/USD
The LTC/USD pair has witnessed a massive erosion of wealth in recent months. Currently, the bulls are attempting to bounce off $28, a level not seen since mid-June of last year. The trend is down as the digital currency has failed to hold key support levels throughout the year. There has not been a noticeable bounce for the altcoin since April of this year.
The RSI has also entered into the oversold territory, which increases the possibility of a bounce. The first resistance on the upside is $47.246, above which the recovery can extend to the next resistance zone of the 20-week EMA and $69.279. After such a massive decline, we anticipate the virtual currency to enter into a range and form a base, before starting a new uptrend. If, however, the bears sink below $28, the next support is at $19.752.
XEM/USD
NEM (XEM) is the third best performing cryptocurrency in the past seven days, rising closer to 8 percent.
XEM/USD
The bears broke below the range of $0.07790717–$0.13125258 on Nov. 24, but could not sustain lower levels. This shows buyers are willing to support the XEM/USD pair at lower levels.
The virtual currency rallied back into the above range on Nov. 28. Currently, both the bulls and the bears are fighting for supremacy. The bulls want to keep the price inside the range, while the bears want to sustain below the range.
If the bulls succeed, it will indicate that the recent breakdown was a bear trap. In such a case, the price is likely to gradually rally back to the top of the range, closer to $0.13. On the other hand, if the bears maintain the price below the range and sink below the Nov. 25 intraday low of $0.06155741, the next support on the downside is at $0.05.
The moving averages are flattening out and the RSI is also climbing closer to 50 levels, suggesting a consolidation in the near term.
BTC/USD
Bitcoin (BTC) had its worst November since 2011, as the price fell 37 percent. Such a massive fall in a period of a month shows signs of distress selling by the bulls. Bottoms are generally formed during such periods of capitulation. Will the leading digital currency stage a comeback or sink further? Let’s try to find out.
BTC/USD
The BTC/USD pair is trying to find support close to the critical support zone of $3,000–$3,500. This is an important zone that should hold. A break down of this will further damage sentiment and can extend the fall to the next lower level of $1,752. However, we give it a very low probability of occurring.
Usually, after violating a critical support – in this case, $5,900 – the price retests the breakdown level. If that happens, the digital currency can rally back to anywhere between $5,000 and $5,900, though it is difficult to pinpoint the exact level it will reach.
The RSI has reached levels last seen in early 2015, which shows the kind of damage the digital currency has seen this year. We are seeing first signs of buying, but will need to see more to confirm a bottom.
ETH/USD
Work has started towards the upgrade of Ethereum (ETH) to Ethereum 1x, which will reportedly improve the network’s usability. The said upgrade might be activated by June 2019. In other news, the citizens of Manila have an opportunity to earn some Ethereum by cleaning up polluted beaches.
The University of Basel, Switzerland’s oldest university, has conferred an honorary doctorate to Ethereum co-founder Vitalik Buterin for “outstanding achievements in fields of cryptocurrencies, smart contracts, and the design of institutions.”
ETH/USD
After showing promise through the middle of the year, the ETH/USD pair has turned weak, as it continues to break down at critical support levels. Currently, the bulls are trying to hold the psychological support of $100.
The RSI has reached close to oversold levels, last seen at the end of 2016. This movement suggests that selling has been overdone and a bounce is likely. The first resistance on any rebound will be at $136.12, followed by $167.32.
If the bears turn the digital currency down from one of the above-mentioned resistance levels, and sink it below $100, a fall to $66 is possible. After such a large fall, the price is likely to go through a bottoming process before embarking on a new uptrend.