QTUM, ICON (ICX) & DigixDAO (DGD): Bitcoin price action driving short-term trend
In the last 24 hours, Qtum has been trading in a tight range at between 0.00208489 and 0.00187142 BTC, and volumes remain low. This is pretty much in line with bitcoin’s current price action. Bitcoin is currently trading at around $7900 and $8100. The $8000 price level is a major psychological support level for Bitcoin at the moment. If it maintains above it, we are likely to see a continued market rally across the market. A break below it could see several red days in the entire market. This explains why Qtum is currently in a tight range, which is usually indicative of a potential breakout. If Bitcoin breaks below $7900, we are likely to see a downward break in Qtum. Conversely, if bitcoin rallies and maintains above $8100, we could see an upside break in Qtum.
In essence, Qtum is currently being driven by overall market momentum, and not its own market fundamentals. It’s an indication of Bitcoin’s sway on the entire crypto market at the moment.
Just like Qtum, ICON is currently trading in a tight range. The price is oscillating between 0.0003620 and 0.0002774 BTC, with the price currently edging more towards the higher price level of 0.0003620. This ranging market is an indication of a potential breakout in the near future. There is a strong correlation between this range and Bitcoin’s current price uncertainty at around the psychologically important price level of $8000. Given that Bitcoin tends to drive the entire market, investors are most likely holding back their altcoin investments, in anticipation of bitcoin’s next price move. If Bitcoin pushes above $8000 and sustains it, ICON is likely to see an upside break as investors take advantage of an impending upside move. However, if Bitcoin breaks below $8000 and shows signs of sustaining a downside move, we are likely to see ICON breakout to the downside in the short-run.
In essence, the current ICON market range, and low volumes have nothing to do with ICON’s fundamentals, but rather the price action of bitcoin.
DigixDAO is currently in a range, but volumes are rising. The current range is just an indication of market uncertainty on the direction of bitcoin, the dominant cryptocurrency. Like every other altcoin, DigixDAO is likely to rally if bitcoin gains momentum above the $8000 price level. Conversely, if bitcoin shows signs of weakness, with a strong break below $8000, DigixDAO is likely to see a move south too.
As for the volumes, DigixDAO has historically shown an element of stability in times of market uncertainty. This could possibly be the reason why volumes are on the rise. At the moment, investors are unsure on the direction bitcoin will take in the short run. As such, volumes of coins with some form of stability such as DigixDAO are getting higher volumes.
The short-term moves of these three coins is premised on Technicals, and more so, the price action of Bitcoin, as it sits on a psychological price level.