Cryptocurrencies: Have Bitcoin & Co. found the bottom?

The cryptocurrencies recovered slightly overnight. New regulations regarding cryptos were discussed yesterday in the US Senate. The outcome of the session was considered positive by the crypto community. It´s true that most members are in favour of stricter regulations. Unlike in South Korea, however, they showed much more understanding. It´s the ICOs and wild price fluctuations that worry regulators.


Also from a chart-technical point of view there is some hope for the bulls. Bitcoin shows a positive RSI divergence on the daily chart, and seems to have found a short-term bottom at 6000 dollars. Bitcoin could soon test the $10,000 mark again, but is likely to encounter strong resistance at this level.


The situation is similar in Ethereum. If the cryptocurrency crosses the barrier at 800 dollars, there is hope for a rally to reach the psychologically important mark of 1000 dollars. In the short term, however, it seems more likely that we will see consolidation in the cryptocurrencies. There is still a lack of positive impulses which could lead to a continuation of the rally.


Ripple was also able to catch something. However, the charts don´t send as positive signals as in Bitcoin and Ethereum. The resistance at $0.80 was already too strong. Should the other major cryptocurrencies recover, Ripple should also benefit. But the rally will be much weaker.

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