Latest Articles

KMD-BTC Price Analysis: Testing Overhang Resistance With Strong Potential

Distributed Summary:

  • Komodo (KMD)-BTC found its market bottom in July while many other coins continued to bleed out for many months
  • The bottom for KMD-BTC formed the support level for a massive accumulation trading range that lasted for seven months. Last week, however, we saw a very strong and convincing breakout of the trading range as high volume and wide price spread indicated a very disproportionate amount of demand to supply
  • At the moment, KMD is testing overhanging resistance. However, given the strength and length of the accumulation phase, KMD has the potential to see a very strong and sustained markup campaign

Throughout the crypto bear market, most coins were continuously pushing new lows month after month. Their relative strength to bitcoin, in particular, was massively devalued. However, one coin that really stands out in the face of this devaluation is Komodo (KMD).

In mid-July, KMD found its bottom around 16,000 satoshis (sats) and established a very strong support level that formed the lower boundary of a massive trading range:

Figure 1

Figure 1: KMD-BTC, Daily Candles, Stopping Action of the Downtrend

For the last seven months, KMD was bound by a well-defined upper and lower boundary that formed an accumulation trading range.

Figure 2

Figure 2: KMD-BTC, Daily Candles, Accumulation Trading Range

Without going into the minutia of the Wyckoff Theory, we can generally assume that a market is under strong control when it is confined within a well-defined range. The purpose of a trading range is to either distribute an asset to investors or trick investors into selling their assets into a larger, stronger entity. When we see a well-defined range like the one shown in Figure 1 and Figure 2, we see a clear trend of swing highs and swing lows that outline points of interest to the larger, stronger entities and we can see a clear boundary where the entities are no longer willing to buy above or sell below a given value. And when we take into account the trend of volume, we can start to make assumptions about the intent of the entity’s trading range.

A breakout of the trading range typically corresponds to a change of the price and volume trend. In our case, we not only see high volume that is well above the average level of trade volume. Coupled with this volume we can see high price spread that indicates an overwhelming amount of demand and lack of supply:

Figure 3

Figure 3: KMD-BTC, Daily Candles, Trading Range Breakout

This high volume and wide spread also corresponded with a new close above the trading range for the first time since July 2018. Additionally, this breakout led to a test of strong, macro resistance level that is looming overhead. So far, the first whack at the resistance level was unsuccessful:

KMD-BTC Price Analysis. 2.25.19. Figure 4

Figure 4: KMD-BTC, Daily Candles, Macro Resistance Test

Although this market looks incredibly bullish and ripe for a continuation of the uptrend, it’s important to remember that the bitcoin pair does not always correspond to an increase in total value. This is a reflection of the coin’s relative strength to the bitcoin market. If the bitcoin market pulls back in USD value, we could still see KMD pull back relative to the dollar while still pushing upward or holding support on the KMD-BTC pair. However, this KMD breakout is a very bullish signal and has the potential to have a massive markup campaign, given how long and strong the accumulation phase was for this coin.

A Former CFTC Chairman’s Plan for Federal Crypto Regulation

Timothy Massad, the former chairman of the Commodity Futures Trading Commission (CFTC), has outlined a case for better (read: stricter) federal crypto asset regulation in a substantial report for the Brookings Institute, “It’s Time to Strengthen the Regulation of Crypto-Assets.”

Square to Hire Full-Time Team of Open-Source Bitcoin, Crypto Contributors

Source: Twitter

Jack Dorsey, founder and CEO of social media giant Twitter and mobile payments company Square, announced that he is hiring a handful of full-time employees for the latter who will work on open-source contributions to the Bitcoin and cryptocurrency ecosystem. He added that the work done by this team, made up of three or four engineers and one designer, will be independent of Square's business objectives and all resulting work will be open and free.

Will #DeleteCoinbase Hurt Cryptocurrency Adoption?

There has been no shortage of news regarding trust issues in the cryptocurrency sphere. For example, the recent death of QuadrigaCX CEO Gerry Cotten revealed that he personally held the keys for the company’s reserves and they were lost, leaving platform users dependent on the Canadian justice system for a solution.

Huobi Introduces Coin Launch Platform

Source: Huobi

The Singapore-based cryptocurrency exchange Huobi has announce that "Huobi Prime," a coin launch platform, will go live on March 26. The service will allow professional and retail investors to purchase new cryptocurrencies before they are listed more broadly and potentially at lower costs. The announcement appears to compete with Binance's Launchpad service.