3 reasons why the price of crypt can go up even higher! Capitalization again above $ 200 billion

We present you a translation of an analytical article in which the authors consider three reasons for the possible growth of cryptology, at least in the short term.

3 reasons why the price of crypt can go up even higher!
Crypto currency is restored when all hope seems to have been lost. The surge in the price of the second-largest ETH crypto currency, which began yesterday, once again confirms the unpredictability of the industry.

At the time of the publication of the article, some of the top 10 crypto-currencies in terms of market capitalization record a gain of more than 10% over 24 hours, including Monero (XMR), Litecoin (LTC) and EOS. The ether (ETH) tops this list, having risen in price by 17% per day. In addition, the total market capitalization returned to a level above $ 200 billion after the fall this week.

It's too early to talk about any long-term bullish reversals on the market, but there are three encouraging signals that we can see such a desired recovery, at least in the short term.

Recovery of the Ether
By yesterday, the price of ETH / USD fell more than 40% from September 5 and 85% from the record level of about $ 1,400 reached in December last year.
But now we are already seeing another picture. The price recovered by more than 20%, reaching a 24-day high of $ 207.67 from the day before yesterday's low of $ 167.32 (according to the Bitfinex exchange).

The daily chart of ETH / USD
As can be seen in the above chart, the recent price recovery can be explained by getting support for the downward trend line of the downward wedge, the bullish reversal pattern, in the historical support zone highlighted in green.

In addition, the daily RSI showed a bullish divergence, offering even more reasons for the rally.

To ensure confirmation of a more significant trend reversal, it is necessary that the asset closes the daily (or even better, weekly) candle above the wedge resistance level with a noticeable increase in volumes.

According to the popular method of determining the target point of a downward wedge breakout, it is necessary to add a range of the wedge base to the breakout point. Since the base of this wedge is more than $ 900, the long-term target point will be around $ 1,100, provided that the price breaks through the wedge around $ 230.

Many altcoins function on the Ethereum block, so a strong ETH recovery is likely to lead to the recovery of other coins.

Short-term stability of BTC
The future of the Crypto currency largely depends on Bitcoin (BTC) - the world's largest crypto currency by market capitalization.
Having lost 70% of its record high of $ 20,000 in December, the BTC was able to scare even the most experienced investor. Nevertheless, after a closer look at the long-term technical chart, it can be concluded that the Crypto currency is slowly forming a significant bullish reversal pattern.

Weekly chart
As we see, the recovery of BTC from a low of $ 5,859 in August set the first higher minimum of the year, the previous minimum was $ 5,755 in June. In addition, the recent sale ended at $ 6,119, having formed yet another higher minimum.

The trend line that connects the higher lows indicates a long-term bearish depletion. Therefore, there is reason to be optimistic if the price is above the trend line.

Now the bulls need the BTC to set a higher high, taking a step above the July high of $ 8,507. This will confirm the long-term trend change (from bearish to bullish) and can initiate a stable rally above $ 10,000.

Readiness to accept risks in world markets
Markets of high-risk assets around the world have intensified in the last two days after reports that the US and China are ready to sit down at the negotiating table.
For example, the pair AUD / JPY, which is considered a barometer of risk in world markets, shows an increase of 1% at the time of writing. Meanwhile, the dollar index fell by 0.24%.

Obviously, investors hope that these negotiations will be fruitful, but the trade wars will end only if the US officially cuts tariffs. More importantly, previous experience shows that such negotiations usually stop after a few days.

Nevertheless, the hopes for fruitful negotiations in the US and China can in the short term promote the growth of demand for risky assets.

In addition, Turkey raised the interest rate by 625 basis points to support the national currency, and this move pushed the securities markets higher.

All this is likely to positively affect the markets and crypto currency, as the investor community still considers Bitcoin and other coins as high-risk assets.

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Coins mentioned in post:

CoinPrice (USD)📈 24h📈 7d
BTCBitcoin6549.757$1.14%1.88%
EOSEOS5.464$4.27%8.61%
ETHEthereum225.123$8.71%5.12%
LTCLitecoin58.062$8.11%3.71%
XMRMonero119.627$6.74%7.34%

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