Wednesday, July 26 8:56am GMT - Crypto markets are consolidating sideways in a narrow range awaiting the release of key economic data by the Fed relating to the purchase of Bonds and it's balance sheet normalisations plans.
The data is to be released at 1800 GMT, Market players hope will give a sign of when the Fed will begin paring it's bond holdings and raise rates to reflect this.
RSI has turned on BTCUSD day chart - and is heading back into the downward trend line from previous weeks.
Are true values appearing?
Has the dust settled from BTC's epic bull run? The major alt-coins are firming up across the board towards round number figures which have been touched numerous times in the past as support / resistance.
Possibly the fair prices look as follows (given ranges of approximately +/-10% variation):
BTC: $2.5k
ETH: $200
Dash: $200
XMR: $40
LTC: $40
Do you really think Cryptos worrie much about normal economic fundamentals on a day to day basis?
My opinion is that there is FAR to much novice emotional trading going on in Cryptos to correlate Crypto moves to normal economic decisions..
But hey, this is just my opinion :-)
@csmit Sure because BTC is valued in the Dollar. It's paired BTCUSD - So regardless of the market the strength of the dollar is how it gets it's value. The correlation works similar to Gold, although like you mentioned there is so much emotional trading currently and high expectations that every move is getting quiet exaggerated.
I feel the markets currently are coiled, anticipating the news on Segwit. Whilst currently enjoying the previous peak due to the weakened Dollar. Let us not get too comfortable on these figures, as a strong dollar can drive down prices fiercly as we saw in the run up to trumps election and brexit - with insane volatility on Gold and the Japanese Yen as people seeked safe heavens for their savings.
Bitcoin has also been used in this manner I believe, but people are wary of what is it actually worth - may be far less then the current sentiment.
Yes you are right. BTC is priced in dollars but I think emotions currently far outweigh any fundamentals.
Are you involved in BTC mining?
@csmit Let's see, I've traded this correlation for the past months and it's rarely been out, but sure there are a tonne of emotions riding right now so a panic sell could also be on the cards due to the uncertainty of the split coming up.
Yeh i'm mining some dash and ethereum right now. are you mining?
yes i would agree about the novice emo part, u can 'feel' that energy going on and just makes the market easier to read for myself, different waters, different style of swimming :)
@majorleeblunt yeh and with this this split coming up it could really give BTC a shake