The main santiment in the cryptocurrency market seemed to have already changed to a bullish one, but based on the price of the main asset, some analysts again see a continuation of the downtrend. Could this be a trap? YES, of course, but only time will tell exactly what will happen, and already the very nearest one – a couple of weeks maximum.

Below is just a few latest news / parts from those news:

Bulls could not keep the growth and bears seized the initiative. Respectively, all top 10 coins are in the red zone.

CHart

Top coins by CoinMarketCap

BTC/USD

Yesterday morning, the four-hour EMA55 kept the price from falling and allowed buyers to break through the upper border of the short sideways corridor at $35,000.

BTC

BTC/USD chart by TradingView

In the afternoon, the bulls overcame the lilac resistance of $36,000 and tried to gain a foothold above it. At the end of the day, the price marked a daily high around the $36,624mark, and at night sellers returned the Bitcoin (BTC) price below $36,000.

Bears’ pressure increased this morning and the pair pulled back even deeper. In the near future, the BTC price might return to the upper side of the range at around 35,000. One believes that today, it will be able to play the role of support and stop today’s rollback, and at the end of the day the bulls can try to test the target level of $37,150.


Ethereum’s EIP-1559 upgrade is fast approaching, but derivatives data shows traders are less than optimistic about ETH’s short-term prospects.

Ether’s December futures premium shows weakness

In healthy markets, the quarterly futures should trade at a premium to regular spot exchanges. In addition to the exchange risk, the seller is ‘locking up’ funds by deferring settlement. A 4% to 8% premium in the December contracts should be enough to compensate for those effects.

A similar effect occurs in almost every derivatives market, although cryptocurrencies tend to present higher risks and have higher premiums. However, when futures are trading below this range, it signals that there is short-term bearish sentiment.

OKEx BTC (blue) vs. ETH (orange) December futures premium. Source: TradingView

The above chart shows the Bitcoin December futures premium recovering to 3.5% while Ethereum contracts failed to follow. While both assets displayed a neutral-to-bearish indicator, there’s evidence that the altcoin investors are less optimistic about a short-term recovery.

Another leg down will do even more harm to altcoins

Another thesis that could negatively impact Ether’s premium is the impact of a potential negative 30% performance from Bitcoin. Filbfilb, an independent market analyst and the co-founder of the Decentrader trading suite, said that a 30% crash in the Bitcoin could prompt altcoins to drop twice as hard.

Clem Chambers, the chief executive of the financial analytics website ADVFN, also predicted another potential leg down, which would repeat the late-2018 crypto winter period. Chambers claims Bitcoin could capitulate and fall back towards $20,000.

While the overall market sentiment is neutral-to-bearish, it seems sensible to predict a more daunting scenario for Ether, including uncertainties from the transition to Proof-of-Stake (POS).

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