Yesterday, cryptocurrencies had a decent rally that raised the price of Bitcoin by 5%, Ethereum 4.4%, Ripple 0,4%, and Litecoin by 9.5%. Now, cryptos are finding selling pressure at resistance levels, which is taking out some of the advances reached yesterday.
What is happening?
Charlie lee announces the Litecoin halving event in four days. He ironically adds a tweet by the Federal Reserve, announcing a 0.25% rate cut.
I'm announcing today that in 4 days, I will be cutting Litecoin mining rewards in half for the first time in 4 years. This should help prevent the possibility of a cryptocurrency downturn. 👍
And I will cut it in half again in 2023! 😮 https://t.co/YmUIHx5fLi
— Charlie Lee [LTC⚡] (@SatoshiLite) August 1, 2019
Bitcoin transactions have risen to historic levels, according to a longhash.com article. Another article by beincrypto.com tells that Bitcoin Hash rate displays major dominance over its forked chains, explaining that while BTC hash rate is at an all-time high, Bitcoin Cash (BCH) hash rate has dropped 60% from its top, and Bitcoin SV (BSV) is down 80%.
On July 31m, The Financial Conduct Authority (FCA) announced it would not regulate the Bitcoin and Ethereum. It was issued in a document titled “PS19/22: Guidance on Cryptoassets”. According to it, digital exchange tokens do not fall under their jurisdiction.
Ripple Ceo, Brad Garlinghouse said, Facebook sabotaged Libra with an arrogant approach. In an interview on Fortune, Garlinghouse blamed Libra for forcing regulators to lump all cryptocurrencies into one big bucket.
"I think the U.S. dollar works pretty well. We don't need a new fiat currency"– Ripple CEO Brad Garlinghouse on why he thinks Facebook took an arrogant approach with Librahttps://t.co/faVtrXTMej pic.twitter.com/aAs8YyyiEU
— Bloomberg TV (@BloombergTV) July 29, 2019
US Fed rate cuts are helping Bitcoin, according to Fundstrat co-founder, Tom Lee.
Bitcoin’s becoming increasingly a macrohedge for investors against things that could go wrong. Rate cuts are adding liquidity. Liquidity is pushing money into all these risk assets and also hedges, which is helping Bitcoin.
The price of the Bitcoin has hit resistance at about $10,170 and is currently retracing 1.12%, but still above the ascending trendline. MACD is in a bullish phase, and the price moves above the +1 Bollinger curve, making highly likely a continuation to the upside. It will find resistance at 10,200 while its nearest support is $9,900.
Ripple is moving sideways. The price could not hold a bullish action even on a day on which other cryptocurrencies rallied. That said the price had not retraced completely the bullish candle it did on July 30. Currently, we are neutral on XRP. To change this stance to bullish, we need to see a price close above 0.32. Its nearest support is presently 0.31.
Ethereum has retraced the gains of the last three 4H candles. Currently, it is still moving with a slightly upward bias. The price is touching its support of $213. We believe that the price will move to the upside, helped by a bullish Bitcoin.
Litecoin has retraced 2% after a movement of 9.5%. That is expected. The price is still moving above the upward supportive trendline and the MACD and Bollinger Bands show bullishness. The current outlook, then, is bullish. the next target, after having surpassed the $100 is $106. its closest support is $95.