An economic bubble is an economic term used to refer to when an asset trades at a price or price range that strongly exceeds its intrinsic value. While some would argue that the Blockchain technology is so invaluable that its value shouldn’t be measured monetarily; leading to the ‘detokenization’ school of thought, it is inevitable for the supply of a fast-rising asset class like cryptocurrencies to not exceed its demand at some point leading to the cryptocurrency bubble-burst since December 2017.
BTC/USD Analysis
After rising to 20,000USD and subsequently falling to recent 4,200 USD lows, a bottom might not be certain yet but one thing that is certain is that price is closer to the bottom than the top. The downside is currently limited to the 200 Weekly MA around 3100USD while the price has found an interim support at 4200 which is just at the Weekly EMA. After breaking yearly lows of 5,750USD, the upside is limited to the broken support at 5800-6100 until a breakout either way occurs. An increase in weekly sell volume suggests capitulation and the weekly OBV has a bullish divergence information.
ETH/USD Analysis
Down over 90% from ATH, the price has been in a steady downtrend since the high of 835USD in May. The recent break-in yearly low of Bitcoin which is a lead determining factor for the cryptocurrency bear market paved the way for more selloff of the cryptocurrency leading to a new yearly low of 120USD. The OBV oscillator is the lowest it has ever been since July 2018 signifying how steep the selloff has been. Speculators blame ICOs which accumulated ETH during their crowdfunds last year for the selloff of the token but at some point, the price is likely to rebound when supply dries up. Price seems to be in a falling wedge which is getting tighter. Two or three daily closes below or above the wedge would signify trend continuation or reversal respectively. with Closest resistances are 171, 192 and 250USD while the closest supports are at 70 and 111USD.
XRP/USD analysis
XRP is the only major Altcoin that has decoupled from BTC, holding strong, seeming to be unfazed by the recent crypto bloodbath and now the second largest cryptocurrency by market cap after overtaking ETH. Supports are at 0.249, 0.269 and 0.375USD and there is a bullish divergence on the daily OBV. After crossing the 200 daily MA on 21st October, it can be said that XRP has ultimately reversed and found its bottom. It’s not a question of if there would be a bull run for XRP but when. Intermediate resistances are 0.57, 0.62 and 0.79USD.
LTC/USD analysis
LTC has been known to take people by surprise when it’s ready for a bull run. Price is in a falling wedge which is a bullish reversal pattern only to be confirmed by a break of the falling wedge upwards.
Supports are at 30.75 and 17.6USD. Resistances are at 48USD and at the 200DMA which is a moving target but currently at 74.555USD. There is currently a bullish divergence forming on the daily OBV so, it is only a matter of time before supply runs out.
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