Dec. 26 Mars Market Recap: BTC Saw a Bottom Divergence and will Remain Volatile in a Near Term; Rebound Momentum of ETH and EOS is Getting Stronger

Dec. 26 Mars Market Recap: BTC Saw a Bottom Divergence and will Remain Volatile in a Near Term; Rebound Momentum of ETH and EOS is Getting Stronger

Dec 26th 2018| Investment By:Mars Finance
Among the other mainstream currencies, ETH and EOS were still the followers of BTC, while TRX and BCH had strong fluctuations, but still moved with the market.

Topic in Discussion

BTC stopped the decline at $3,800 after breaking below $4,100, $4,000, and did not continue to fall in the short term, which was also in line with our previous expectations. There was a previously verified strong support at $3,800, as well as the strong support of the 30-day MA. Investors preferred to cut loss rather than bargain-hunting, although the price peaked below $4,400 brought the broad market a strong pressure, and investors knew the short-term bottom position after going all the way from $3,200 and had a certain profit market. The substantial funds outflow in BTC or the whole digital currency market also demonstrated this kind of preference. 

But Mars Finance doesn't think the BTC will straightly hit bottom again. This round of decline occurred when BTC rose for 4 consecutive days from $3,200, with a rapid and substantial trend of over 30%. At this time, BTC has a large demand for correction. Although BTC has been fluctuating around $4,100 since the 21st, the demand for correction has not been alleviated as the rising expectation declines. In addition, part of the profit before had lost again in 19th, 20th, and the current holdings almost started at above $3,700, so the overall profit volume is limited. As can be seen from the volume, two days of decline did not bring a high volume, and investors are in a strong wait-and-see mood, so the BTC is likely to fell slightly and then rise with volatility in the after-market.

Among the other mainstream currencies, ETH and EOS were still the followers of BTC, while TRX and BCH had strong fluctuations but still moved with the market.

Market Overview

As of 6pm on December 26, according to CoinMarketCap, the total market value of digital money market is $127.6 billion, $2.26 billion less than the total market value of yesterday, down 1.74% from the previous month. The total market turnover was $18.4 billion, $4.77 billion less than yesterday and 20.58% lower than the previous month. 

Today, the major stablecoins change as follows, including USDT current price of $1.03, up 0.96%; TUSD, USDC and PAX of the other four stablecoins increased slightly, with their current prices ranging from $1.02 to $1.01. GUSD slightly reduced 0.04%, current price $1.01. The on-exchange demand of stablecoin continues to grow with USDT as the main outflow channel.

 

Mars Finance monitors 32 of the top 100 digital currencies by market value, with 60 of them falling within the range of -5%. The 100 digital currencies rose by an average of 0.67%. ETERNAL Token was the best performer, up 170.30%, followed by Linkey, up 18.63%. DEX was the worst performer, down 43.62%, followed by TenX, down 11.07%.

 

Market Forecast

BTC

The BTC rose below $4,000 today and began to weaken under intense pressure from $4,000, but the 4-hour MACD saw a divergence. The position of $3,800 is supported by the 30-day MA in a short-term, but it should not be taken into account too much before the final direction is selected. BTC is likely to remain volatile below $4,000 in a near term, or decrease with volatility. 

The main net inflow was 282 million yuan over 24 hours, while the retail outflow was 23.9887 million yuan, which showed a strong short side dominated market.


ETH

ETH's rebound momentum was strong, but it still went with the market without an independent trend. A strong rebound is likely to emerge when it rises. There is a support above $120, and a pressure at $140.

The main net outflow was 67.1412 million yuan over 24 hours, while the retail outflow was 701 million yuan, which showed a strong short side dominated market.

 

EOS

After the weakness of EOS, there is finally a hint of revival. EOS continued to rise in today's rebound market and reached a high of above $2.75. The overall rebound will of EOS was much stronger than other mainstream currencies. Driven by BTC, it may maintain volatile in the short term with a bottom at $2.50. 

The main net inflow was 6.8588 million yuan over 24 hours, while the retail outflow was 144 million yuan, which showed a strong short side dominated market.

 

BCH

Today, the trend of BCH was also slightly improved. There was a pullback after the volume shrinkage, but the insufficient volume does not have a great impact. It will oscillate with BTC in the short-term, but the large-scale ups and downs are difficult to change. 

The main net inflow was 745,100 yuan over 24 hours, while the retail outflow was 301,000 yuan, which showed a strong short side dominated market.

 

Industry Overview

As of 6pm, 13 sectors out of 27 blockchain industry sectors of 5 classifications went up, according to TokenInsight. Among them, "other applications" sector saw the best performance with an average increase of 7.37%, followed by "information technology service applications" sector with an average increase of 3.98%. The "decentralized exchanges" sector saw the worst average decrease of 4.14%, followed by the "governance protocols" sector with an average decrease of 3.78%.