The Weekly Results: Altcoin Growth During Bitcoin Consolidation

How was the week for bitcoin?

The past week (September 28 — October 4) was marked for bitcoin by the transition to flat, after the strong fall of September 24. The BTC price has increased by only 1,21%. Thus, the coin's capitalization has grown by only $2 billion, and now it is $146 billion. The flat zone is evidenced by a one-third decrease in bitcoin trading volume: from $19 to $14 billion.

In addition, bitcoin dominance fell from 68% to 67.4%, which indicates an increase in altcoins.

It should be mentioned that Bitcoin managed to avoid strong falls this week, but powerful upward movements were not recorded, too. The price fell to $ 8,000 at the beginning of the week, where it was traded only for a day, but could not gain a foothold at this mark. Notice, our forecasts came true: the struggle between bulls and bears unfolded after reaching the aforementioned indicator.

The Fibonacci retracement grid demonstrates that the price rests at the level of 0.23, which is currently the key one for bitcoin. In addition, if it will be broken, highly likely, there will be an increase to the level of 0.38. And the fight between bulls and bears will begin at the strongest level of support and resistance, which is on the range from $ 8,950 to $ 9,300. This zone is located between the levels of 0.38 and 0.5 on Fibonacci grid. Thus, the next trading zone is expected there.

Why does Neironix analytics team think that growth is more likely than fall? Well, there are a few reasons, which will be reviewed.

Thus, the chart shows moving average EMA50, which goes to the intersection of EMA200, so it may contribute to a new fall. As it is known from bitcoin`s history, a decrease may happen only if EMA20 crossed EMA200, too. However, it is fixed on the chart: moving average EMA20 starts to slow down and goes away from EMA50. This may indicate a reversal of the indicator.

In addition, RSI relative strength indicator rose to the oversold border, but ran into resistance at 30%. It  indicates oversold of bitcoin, however, its price can be balanced in the near future. As a rule, this level is on the area of 50%, and it means the absence of a trend.

Also, let's pay attention to MACD indicator. The graph shows that the 12-day moving average began to unfold a week ago, and the 26-day moving average — only two days ago. A reversal of simple smoothing MACD 9 is expected between the averages in the near future.

The main news on cryptocurrency market was mainly generated by 2 projects — Telegram Open Network (TON) and Libra, — but it did not affect bitcoin rate.

As it became known two days ago, Telegram Open Network will be launched on time, and this announcement has calmed the crypto community. Moreover, a newsletter was sent to investors, saying they need to generate wallet addresses for sending GRAM coins, on October 2. As you know, there was no news about the stage of  TON development and the timing of the network launch during a year and a half. Moreover, the information has been spread in the Internet that if the platform does not start its work until October 29, 2019, then invested funds will be returned to investors. Nowadays all doubts and worries of crypto community have been resolved.

Libra's week was marked by good news, as well as bad. Firstly, it became known that the largest payment systems in the world, such as Visa and Mastercard, are going to withdraw from the Libra agreement and stop their participation in this project. However, the companies still have not provided any official documents, limiting themselves only to unfounded statements.

Secondly, Libra development team posted a roadmap, which highlights all stages of the project development, yesterday. It says that creators want to attract 5 partners, who will act as full-fledged deployed nodes, for the initial launch. This company plans to bring the number of such partners to 100 at the next stages.

One of the largest banks in the world, JP Morgan, expressed his opinion on the recent fall, so experts associate the fall in prices with the launch of Bakkt, however, they believe that this was not due to the low liquidity of the platform, but because of the physical delivery of bitcoin futures.

How was the week for coins from the Top-10

This week was positive for coins from Top-10: almost all of them have increased in price. The exception was Bitcoin SV, whose price fell by 0.01%, which is insignificant. No other changes in the list were recorded: all coins remained at their previous positions.

The growth leaders, EOS and Ethereum, added less than 6% per each.Ethereum grew, despite the fact that this week Ropsten test network due to an earlier hard fork. As a result, the development team had to communicate with the miners in order to transfer Ropsten to the correct block chain. It should be mentioned that the policy of updating caused discontent among project participants.

The smallest growth was shown by Stellar and Binance Coin. As you remember,  this week Binance launched Lending program, created to finance margin positions and receive interest for this.

Bitcoin dominance decreased by 0,7%, while for other coins, this figure increased. In particular, the dominance of coins that do not enter the Top-10 best by capitalization has increased. Now it is 9,92%.

How was the week for coins from the Top-100

The week for altcoins turned out to be successful — 80% of the coins increased their value against the dollar. It is noteworthy that all stablecoins also grew from 0,27% to 0,42%.

However, the average growth rate was only 6,6%. Therefore, it makes no sense to talk about the beginning of the alt season. Individual coins grew strongly, but overall, the altcoin market did not increase much.

The consolidation phase of Bitcoin has allowed many altcoins to push off from the bottom they fell on last week. Some of them began to show high growth results. Therefore, coins appeared in the growth leaders, which last week were far beyond the first hundred of the best coins.

Growth leaders

The first and second place was occupied by those projects that last week were in the third and second hundred coins by capitalization, respectively. Centrality showed absolutely unimaginable growth — 278% per week! Against this background, the remaining leaders look weak, although they added from 20% to 45%.

Such a strong increase in Centrality is associated with the launched bounty program, during which users are invited to test the project network. Also because of a new major update announced by the team, but details of which are kept secret. The project community reacted very positively to this news and showed high activity after that on the project's social networks. This fact provoked a sharp increase in the price of a coin and an increase in the trading volume.

Seele has been growing continuously in the price for three months. At the end of March 2019, they launched their blockchain and have been developing it since then. No events or announcements that could provoke such strong growth were observed. However, such a sharp increase cannot be associated only with an excellent attitude to the project, most likely. The growth is associated with the information in the project's closed sources.

Algorand took the 4th place, which quite often found itself in the lead of the weekly fall. This time he was able to grow by 21%.

Fall leaders

The average drop was 17.6%, which is two times less than last week when there was a massive drop in altcoins. At the same time, the 5th-place NEM coin fell by only 6.76%, which is considered a reasonably small indicator for the leaders of the weekly drop.

In the first and second place are the coins that were a week earlier in the growth leaders - Energi and BitCapitalVendor. Such a sharp fall in Energi is associated with the activation of scammers who offer to participate in airdrops and then compromise the company, luring users out of money. Last week, the growth of project was related to the release of network, but this did not help to reverse the overall downtrend. For three months, Energi lost 75% of its capitalization.

BitCapitalVendor's fall is a correction after two months of non-stop growth. At the moment, the correction is 0,67 Fibonacci and may continue in the future.

Weekly changes of cryptoindustry popularity

The popularity of the Bitcoin request this week fell from 100 to 74. It is due to the lack of exciting news on Bitcoin. The reputation of the remaining vital queries is still low and practically does not change over time.

In conclusion

The total cryptocurrency market capitalization has not changed this week and fluctuates at $ 220 billion. Trading volume decreased significantly from $ 67 billion last week to $ 49 billion this year. It confirms a decrease in the activity of market players, which led to a bitcoin flat.

Lots of altcoins have grown under current conditions. As you remember, they lost 30% during the fall of Bitcoin on September 24. Nevertheless, such growth does not indicate the beginning of the altseason, because the average values ​​are rather low. In addition, the dominance of bitcoin should start to decrease to confirm the altseason. However, such changes have not been recorded yet.

Neironix does not forecast course bitcoin. If you need fresh forecasts of the Bitcoin exchange rate to the ruble, contact the appropriate specialists.