Global cryptocurrency markets are coming off a hot week, as a majority of the markets finished in the green. According to the list of cryptocurrency by market capitalization, the top 57 digital assets finished positive the last 7 days which was a great indicator. We further assess what may be coming next for the market.
Notable Cryptocurrency Gainers
When we take a look at the market the last 7 days, more than half of the top 20 cryptocurrencies by market capitalization had double digit gains. You can see the chart below that displays 7 day metrics among a list of popular cryptocurrency. Among the list of cryptocurrency, some of the larger market cap winners included:
Bitcoin Cash +16.8
Bitcoin Price Analysis
As mentioned in previous Bitcoin price analysis, Bitcoin price triggered the bull run after shooting through the 200 day moving average. Since penetrating those levels, price stayed above the 200 day moving average which is positive. If the trend continues, you could see Bitcoin testing $10,100-10,200 in the near term. On the flip side, if Bitcoin price decides to cool off and dips below the 200 day moving average, you could very well see the $8,700 test on the downside.
Bitcoin Active Address Count
Bitcoin active address count can be a good indicator of price action. Typically speaking, active address count helps assess overall usage and utility during a given time. According to the chart below, you can see that Bitcoin active address count is doing very well year to date, surpassing both Ethereum and XRP drastically.
Bitcoin Mayer Multiple
Mayer Multiple highlights when Bitcoin is overbought or oversold in the context of longer time frames. The MM is calculated by dividing the Bitcoin price by the 200-day moving average. As discussed previously, Bitcoin MM is one of the most effective ways to essentially gauge sentiment. A Mayer Multiple above 1 could be considered a sign of a bull market and below 1 could be considered a bear market. Any multiple above 2.4 threshold has historically shown to signify the beginning of a speculative bubble.
Source: woobull charts
Bitcoins Mayer Multiple currently sits at 1.10 , which helps build the bull case right now. Historically speaking, one could argue the MM is following the same pattern it did during Bitcoins initial rally in 2016 and 2017.
XRP Price Analysis
XRP also fueled past the 200 day moving average which resulted in the jump from .25 to .28. As outlined in a previous xrp price analysis, we were looking for .285 to be accepted to argue the further bull move. XRP actually ended up rejecting that test and started selling off a bit. The technicals still look solid for another attempt to test that level. It might give investors / traders a confirmation in the next 24-48 hours in terms of what direction it wants to take. The .285 push could then send XRP to .31+ levels in the near term.
XRP Transaction Count
XRP transaction count is still taking the lead going into 2020. XRP started surpassing both Ethereum and Bitcoin mid 2019 in terms of transaction count. This was most likely accomplished from the MoneyGram partnership which is fueling Ripple payment protocol utilizing XRP cryptocurrency. Ripple continues to be one of the only cryptocurrency projects that is executing traditional partnerships. Most recently, Ripple on-boarded “Intermex” which could have a positive impact on payments ( especially Mexico markets ). If Ripple continues to expand globally in 2020, you could very well see XRP post parabolic transaction figures this year based on last year's metrics.
Ethereum Price Analysis
As we outlined above, among a list of all cryptocurrencies - Ethereum was one of the best performers over the last week. The reason for this can be explained through technicals. ETH also accelerated above its 200 day moving average, but it was a much wider margin than both Bitcoin and XRP. ETH price could very well test $240 in the near term. If Ethereum price decides to cool off, it could do so by dipping below $213. If you take a look at historical price action, you will see the rally Ethereum posted during April 2019 when it first surpassed the 200 day moving average. It went from nearly $150 all the way to $334. It will be interesting to see if Ethereum can have similar price action in 2020.
In terms of price catalyst right now, many believe that Ethereum price is heating up due to “ETH 2.0” which is due to launch in July 2020. This network upgrade will essentially transition Ethereum to proof-of-stake, meaning investors / miners may be accumulating ETH in anticipation of staking rewards.
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