Tom Lee co-founder at Fundstrat projects the Bitcoin price to attain the $20,000 round number in 2019.
He thinks Bitcoin BTC will serve as a hedge to risks from other traditional fiat currencies and asset class. Mr. Lee also mentioned that a rise in liquidity resulting from the Fed's rate cut would drive money into the cryptocurrency market.
Come, let's probe further into the recent fundamental events and technical price patterns driving the cryptocurrency market.
Bitcoin News: Macro Factors Creating' Perfect Storm' in the Rise of Bitcoin Price
According to a recent August 1 report by Delphi Digital, the global macroeconomic landscape is creating the "perfect storm" that will trigger the appreciation of Bitcoin price.
The Digital asset research firm revealed that the dovish sentiment in global central banking policy is perhaps the most critical factor for a rise in Bitcoin price.
The report argues that factors like trade tensions between the United States and China, and the likely aftershock of a no-deal Brexit is causing central banks into adopting more dovish policies.
These factors serve a catalyst that is driving the Bitcoin price as investors are increasingly considering it an alternative asset.
In the long run, another factor that is likely to drive the price of both Bitcoin and physical gold higher is the increasing risk of fiat currency devaluation.
The Bitcoin BTC is in a strong bullish trend following a series of hidden divergence patterns that started on April 04 '19 through June 06 '19, and recently on July 31 '19.
A breakout of significant resistance established on July 27 '19 confirmed The current hidden bullish divergence pattern. The Bitcoin BTC price makes higher lows compared to the RSI oscillator that makes lower lows.
We look forward to the last quarter high of $13200.00 as a significant target for taking profit.
As we take a step lower to the 4hour time frame, a regular bullish divergence pattern initializes the current bullish trend on the BTCUSD pair for a 14.5% increase.
Notice how the bearish accumulation resistance levels give way to buying pressure on July 30 '19 19:00 and August 01 '19 07:00; timely points to renter into a bullish trend.
The regular bearish divergence patterns could not hold back the bulls as they force the price above another bearish accumulation resistance on August 04 '19 07:00.
Ethereum: Buterin believes Future of Crypto Is 'Pluralist' and Backs BTC-ETH Mix.
Vitalik Buterin, co-founder Ethereum on August 2 revealed that the future of crypto is pluralist.
Buterin made this statement while responding to the recent proposal by the blockchain-focused game developer, Blockade Games on mixing Bitcoin (BTC) Lightning Network (LN) with Ethereum.
Tweeting on the issue, he revealed his belief in the diversity and plurality of the future of cryptocurrencies. He also appeared to back the proposal to mix Bitcoin (BTC) Lightning Network (LN) with Ethereum in providing payment solutions for the Blockade gamers.
Buterin who has always been vocal in encouraging crypto plurality, last month, proposed the use of Bitcoin Cash blockchain as a temporary scalability solution for the Ethereum network.
From a daily chart overview, the ETHER ETH exits the overbought area by closing below the RSI level-70 on June 27 '19 and setting up resistance at $363.30. The price plummets by roughly 34.5% after the exit of the overbought area.
Upon entering the opposite oversold area, the ETHUSD price exits the oversold territory by a cross above the RSI level-30 on July 17 '19 ($191.00). A breakout above bearish accumulation resistance on July 31 '19 sets a higher low at $203.47 preparing the pair for a bullish swing.
Although the recent break above the $214.89 resistance level on the last day in July signals bullish sentiment preparing the ETH for an upbeat campaign, a break above either of the resistance level at $235.27 and the support at $191.00 will give clarity to the trend direction.
An opposite breakout of bearish resistance ($207.99) was signaled on July 17 '19 07:00 for a bullish swing that was later countered by a head and shoulder pattern on July 25 '19 07:00.
It's been a rollercoaster ride as the pair quickly transition from swing low to swing highs. A more recent breakout above bearish accumulation resistance of $207.29, flagged in combination with an increase in buying pressure signaled a buildup of the current bullish trend.
Significant resistant levels are established at $240.45, $235.90, and $225.80, while substantial support levels are set up at $195.20 and $190.00 respectively.
Ripple: 'Do Not Paint Us With a Broad Brush' Ripple begs Congress.
In an open letter addressed to United States Congress and published in a full-page ad in the Wall Street Journal, Ripple has moved to clarify its position and involvement in the crypto space.
The crypto company's business model is to provide financial institutions with an infrastructure to aid international payments and currency trades.
Following the congress regulatory pushback against Libra, Ripple has publicly taken an even more pro-market-regulation stance in making its point clear. Ripple stated that it only seeks to serve the greater good and not fight against the established financial order as perceived.
In doing that, Ripple seeks to differentiate itself from most other major blockchain projects and cryptocurrencies. It the letter to Congress, Ripple calls lawmakers to "not paint us with a broad brush," but to instead make a distinction between the players in the crypto industry.
It also called on the lawmakers to encourage regulation that acknowledges fundamental differences between various players in the space.
Ripple XRP from a daily chart perspective consolidates after a 30% decline from a breakdown of hidden bullish accumulation signaled in combination with a bearish accumulation pattern on June 06 '19.
A bull trap pattern flagged on July 09 '19 reinforced the selling pressure for a 27.7% price decline after setting resistance at 0.40827.
As the XRPUSD trades within the resistance 0.34097 and supports 0.28250, and as the pair spikes towards the direction of the resistance level at press time, a breakout of either level will confirm the trend direction.
The above 4hour time frame reveals the pair in a rollercoaster motion as the XRPUSD breaks below support on July 26 '19 23:00 for a 4.4% price decline.
A break above bearish accumulation resistance on July 28 '19 15:00 exposes weakness in selling pressure as the bulls again signaled an increase in buying influence on July 29 '19 15:00.
An increase in buying pressure on August 04 push the price back towards the 0.32371 resistance after an earlier rejection of bullish accumulation support on July 31 '19.
The general outlook of the cryptocurrency market is starting to turn bullish after a five weeks decline in market cap, coming from a previous a second-quarter high at $387.4 Billion to the $234.0 Billion low.
Recent break above the significant resistant level of $277.3 Billion prepares the market for a continuation of the bullish trend, in confirmation of the hidden bullish divergence pattern.
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