Analyses

Mysterious transactions and a negative start of the week – BTC, ETH, LTC Price Analysis, 25 May, 2020

A mysterious transaction took place on May 20th on the Bitcoin network. 50 BTCs were moved from a Bitcoin wallet created back in February 2020 (Satoshi-Era Wallet) that has not been active for over 11 years. 

Some cryptocurrency users said that it could be a wallet that belongs to Satoshi Nakamoto or to one of the BTC earliest miners. However, according to the Hashcash inventor Adam Back, the pseudonymous Bitcoin creator Satoshi Nakamoto is not behind this transaction:

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Source: Twitter

Nevertheless, fears arose among the cryptocurrency enthusiasts that some of the early Bitcoin adopters or miners, who are supposed to have accumulated massive amounts of cryptocurrency, may start to sell their coins and trigger a solid price decline.

Interestingly, the wallet from which those 50 BTC were moved had been listed earlier by Craig Wright, the self-proclaimed Satoshi Nakamoto, in a court document (in the Kleinman v. Wright case) as one of his Bitcoin addresses.

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Source: Court Listener

The cryptocurrency market has recorded a moderate price decrease for the last 24 hours. At the time of writing, according to Coin360.com, one Bitcoin costs €8,111.01 (-4.48%), one Ethereum – €186.79 (-2.98%), and one Litecoin – €39.33 (-3.25%):

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Daily crypto market performance. Source: Coin360.com

 

Now let’s have a look at the price charts of the major cryptocurrencies against the Euro.

BTC/EUR

In the one-week time frame (1W), the price chart of Bitcoin formed a «Bearish Engulfing»:

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Although according to the Technical Analysis theory, a «Bearish Engulfing» formation is viewed as a trend reversal pattern, we would like to highlight that in the shorter time frames this bearish signal is still not confirmed. For example, on the 4-hour chart (4H), BTC/EUR is still within the «Ascending channel»:

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One can consider the bearish signal as a reliable one only if the price brakes down below the channel support. 

ETH/EUR

In the daily chart (1D), ETH/EUR is consolidating between the 50.0 Fibonacci retracement level (€178.39) and the 61.8 Fibonacci retracement level (€199.47):

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In our estimation, within the current week ETH/EUR will follow the price dynamics of BTC/EUR, because no significant events, closely related to Ethereum ecosystem, are supposed to happen in the near future.

LTC/EUR

In the 1-day time frame (1D) in the price chart of LTC/EUR, a couple of days ago a «Moving Average Crossover» happened – the 30-day Moving Average (MA 30) crossed the 90-day Moving Average (MA 90):

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Thus, in the daily chart there is already an initial bullish signal. However, it is worth keeping in mind that LTC/EUR is still within the «Falling Wedge» - a bearish technical pattern. Therefore, opening a long position is still associated with a relatively high risk.

 


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