Ethereum is trading in a tight range above the $240 support against the US Dollar. ETH price likely to accelerate higher above the $245 and $250 resistance levels in the near term. Ethereum is trading above a major support and pivot area at $240. The price is likely to surge if it clears the $245 resistance and the $250 barrier. There is a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD (data feed via Kraken). The pair could either rally above the $245 level or it might start a strong decrease below $240. Ethereum Price Approaching Crucial Break After testing the $230 support zone, Ethereum price started a fresh increase. ETH settled nicely above the $240 level and the 100 hourly simple moving average. The recent high was formed near $246 before the price declined below $242. However, dips were protected and the price seems to be trading in a tight range above the $240 support. It recovered above the 50% Fib retracement level of the recent decline from the $246 high to $239 low. On the upside, there is a major resistance forming near the $244 and $245 levels. There is also a major contracting triangle forming with resistance near $244 on the hourly chart of ETH/USD. Ethereum Price The 76.4% Fib retracement level of the recent decline from the $246 high to $239 low is also acting as a resistance. If ether price breaks the triangle resistance and $245, it could start a strong increase. An initial barrier is near the $250 level, above which the bulls are likely to aim a steady rise above the $255 and $260 levels in the near term. Bearish Break in ETH? If Ethereum fails to break the triangle resistance, it could start a fresh decline below the $242 support. The main support is now near the $240 level and the 100 hourly simple moving average. A successful daily close below the $240 support zone could open the doors for a larger decline. In the stated case, the price might accelerate lower towards the $230 and $225 levels in the coming sessions. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is currently struggling to stay above the 50 level. Major Support Level – $240 Major Resistance Level – $245 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
An accurate bitcoin fractal from 2019 shows its price at or above $20,000 by the end of 2020. The cryptocurrency is forming ascending price channels after each successive upside move, signaling continuation to the upside. Their occurrence alongside other bullish fractals last year shot the price up by more than 150 percent. Bitcoin is going to hit $20,000 by the end of this year, according to a precise technical pattern. The benchmark cryptocurrency is currently trending inside a rising channel, confirmed by the formation of more than two reacting highs and lows. The price bounces off the lower trendline of the channel support to target the upper trendline, which is resistance. Similarly, it corrects lower after testing the upper trendline to reclaim the lower one. As long as the price fluctuates inside a rising channel, its bias remains bullish. That typically follows with a breakout in the direction of the previous trend. Since bitcoin was rising before the channel’s formation, its likelihood of heading upward is high. BTCUSD rising channel patterns since 2019 | Source: TradingView.com, Coinbase The analogy takes cues from a 2019 fractal. As shown in the chart above, the bitcoin price broke out of its 2018 bearish range in December 2018. It rose steadily inside a rising channel before an upside breakout on April 2, 2019, shot the price upward from $4,132 to $5,121. That led to a price rally that would exhaust near $14,000 in June 2019. The upside, meanwhile, formed two ascending channel patterns, each resulting in a massive breakout. Same Pattern, Different Year Bitcoin in 2020 is repeating a similar pattern. The cryptocurrency reversed after dipping to its yearly lows below $4,000. It then trended inside a Rising Wedge, which is, technically, a bearish indicator. Nevertheless, traders invalidated it to establish a more definite bullish bias. The price eventually rose above $10,000 before it corrected lower to find support above $8,000. That led to a series of similar attempts. The price rose and form higher highs and higher lows, with its recent move almost closing-in towards $10,500. The fluctuation locked the price inside a rising channel pattern. Golden Cross formation strengthens Bitcoin’s bull case | Source: TradingView.com, Coinbase While rising, bitcoin also formed a “Golden Cross” – a technical indicator that occurs when an asset’s short-term moving average (blue) crosses over its long-term moving average (orange). The cryptocurrency painted the same Golden Cross during its 2019 rally, right while it was trending inside the second rising channel pattern. Conjugating it with the current upside scenario also serves as a strong bullish case for Bitcoin. Why a $20,000 Bitcoin? The last set of rising channels, as well as the formation of a Golden Cross, helped bitcoin to surge by more than 150 percent. Meanwhile, the move uphill also appeared against a string of supportive macro indicators, such as a falling yuan, Facebook’s Libra launch, and rising U.S.-China trade worries. Bitcoin could repeat a 150 percent price rally because of underlying fundamental and technical factors. Even today, yuan risks falling because of increasing geopolitical tensions between the U.S. and China. Meanwhile, quantitative easing from central banks around the world is making Bitcoin an ideal store of value, like gold. “Bitcoin ended 2019 at about $7,000, near the bottom of its range, favoring a shift toward the peak,” noted Bloomberg in its latest report. “Last year, the high was about $14,000, which would translate into almost double in 2020 if rotating within the new band, and mean little in the big picture.”
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Bitcoin could attract higher demand from hedge funds as government bonds return poor yields. Portfolios with 60 percent exposure in the stock market and the rest 40 percent in the sovereign notes would diversify into Bitcoin/Gold, according to Dan Tapeiro, the founder of Dtap Capital. More than 90 percent of government bonds trade at yields below 1 percent. Bitcoin and government bonds will battle each other to secure a position in the world’s leading global hedge funds, according to Dan Tapeiro, the founder of New York-based investment firm Dtap Capital Advisors. Bending 60/40 Investment Rule The veteran investor on Friday said funds with at least 40 percent exposure in the bonds market would need to find a replacement for it. That is because more than 90% of the government bonds are trading at yields below 1 percent. Risking poor returns, fund managers will reshuffle their allocations for safe-haven alternatives. “Nothing more bullish for gold and bitcoin,” said Mr. Tapeiro. “[It is the] beginning of the end for [government] bonds as a functioning productive asset class. Traditional 60/40 portfolios will need to find a new defensive asset to replace a portion of the 40%.” Percent of advanced economy government bonds outstanding by yield | Source: Bloomberg The Bitcoin Bull Case Fixed-income analysts noted earlier this year that significant sovereign bond yields have gone erratic on two differing accounts. First, investors fled high risky assets in March 2020 to seek safety in bonds that, in turn, sent their yields lower. On the other hand, global central banks slashed their interest rates and announced unprecedented easing. That worked as a double-edged sword on the overall bond returns. Hedge fund managers hold it because they guarantee positive long-term outcomes despite the risk of inflation caused by money printing. At the same time, they tend to bend their 60/40 investment rule to seek short-term profits from riskier safe-havens. That is where Bitcoin, an emerging asset, could benefit. Bloomberg, in its recent report, noted that new quantitative easing measures from global central banks could raise demand for “stores-of-value such as gold and bitcoin.” Mr. Tapeiro repeated the same, adding: “Gold is the most liquid best defensive asset that exists.” XAUUSD trending higher on increasing safe-haven bids | Source: TradingView.com, Coinbase Both Gold and Bitcoin are trading higher than global equities on a year-to-date timeframe. But Bitcoin has largely surpassed the yellow metal in terms of yearly returns. As of Friday, the cryptocurrency was sitting atop 36 percent YTD profits. In comparison, spot gold was trading 12.69 higher.
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Bitcoin is recovering and showing positive signs above the $9,700 level against the US Dollar. BTC price is likely to accelerate higher above $10,000 as long as it is above the 100 hourly SMA. Bitcoin is correcting higher and it recently cleared the $9,740 resistance zone. The price even broke the $9,800 level and it traded as high as $9,884. There is a bullish continuation pattern forming with resistance near $9,850 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could surge above $9,880 and $9,950 as long as it is above the $9,680 support. Bitcoin Price Could Rally Again After forming a decent support base above $9,400, bitcoin price started a fresh increase against the US Dollar. BTC broke traded above the $9,600 and $9,740 resistance levels to move into a positive zone. It even settled above the $9,700 level and the 100 hourly simple moving average. Moreover, there was a break above a key bearish trend line at $9,690 on the hourly chart of the BTC/USD pair. Bitcoin Price It opened the doors for more gains and the price traded as high as $9,884. Bitcoin is currently consolidating gains and trading near the $9,800 level. It tested the 23.6% Fib retracement level of the recent wave from the $9,469 low to $9,884 high. There is also a bullish continuation pattern forming with resistance near $9,850 on the same chart. If there is an upside break above the triangle resistance, the price could accelerate above the $9,900 and $9,950 levels. The first major resistance is near the $10,000 level, above which there are chances of more upsides towards the $10,400 and $10,500 resistance levels in the near term. Fresh Decline in BTC? On the downside, the first key support is near the triangle trend line at $9,780. If bitcoin price fails to break higher, it could correct lower below $9,780. The next major support is seen near the $9,680 level and the 100 hourly simple moving average. The 50% Fib retracement level of the recent wave from the $9,469 low to $9,884 high is also near $9,677. Any further losses may perhaps negate the current bullish view and the price could dive towards the $9,400 support zone. Technical indicators: Hourly MACD – The MACD is struggling to gain bullish momentum in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now moving nicely above the 50 level. Major Support Levels – $9,780 followed by $9,680. Major Resistance Levels – $9,880, $9,950 and $10,000.
Bitcoin’s dominance over the crypto market has remained steady for the past week, although it has been declining since the start of the year. In order for altcoins to garner any type of immense momentum independent of that of BTC, it is imperative that the cryptocurrency cedes some of this dominance. One popular cryptocurrency analyst does believe that this could soon happen, as he notes that the crypto market is now closer than ever to seeing the prophesied “altseason” that allows altcoins to post massive gains. He explains that there are three primary factors that support this notion, and that it is imperative BTC’s dominance declines below 62% in order for this altcoin rally to ensue. Bitcoin’s Crypto Market Dominance Remains Steady at 65% Bitcoin has been largely outperforming smaller altcoins in the time following its mid-March meltdown. This is clear while looking towards the growth its dominance has seen over the aggregated crypto market in the time following this bout of capitulation. At the time of writing, Bitcoin’s dominance is sitting at 65%. This is around the level at which it has been hovering at over the past several weeks. In late-February, BTC’s dominance hit its year-to-date lows as altcoins begin incurring massive momentum. This market-wide uptrend proved to be short-lived, as the turbulence seen across the traditional markets caused virtually all cryptocurrencies to decline. This downtrend reached a boiling point on March 12th when Bitcoin plummeted from the $8,000 region to lows of $3,800. The capitulation seen on this day proved to be more potent to altcoins than it was to BTC, causing the benchmark crypto’s dominance to rebound from lows of 60%, ultimately finding itself caught within an uptrend that led it to highs of 68% in early-May. Here’s Why “Altseason” is Closer Than Ever One analyst recently explained that he believes the proverbial “altseason” is closer than ever. He justifies this controversial opinion by offering an analysis of BTC’s dominance, noting that it recently posted a bearish retest that suggests a significant decline is imminent. The crypto analyst also went on to explain that it is about to break an 871 day uptrend, and that a decisive decline beneath 62% would mark the start of altseason. “BTC Dominance vs Alts. This is by far the closest we have been from a technical standpoint to an alt season starting. 1. HH/HL structure has broken + bearish retest on dom 2. About to break an 871 day uptrend line on Dom 3. >62% would lead to alt pumps unseen for 3+ years,” he noted. Image Courtesy of Pentoshi It does appear that this breakdown is slated to occur in the coming two months as the apex of the triangle formation seen on the above chart fast approaches. Featured image from Shutterstock.
At the start of May, Bitcoin experienced its latest block reward halving. This event saw the number of BTC issued per block cut in half from 12.5 coins to 6.25, meaning that there is less supply to satisfy demand. Fortunately for buyers, demand is rapidly increasing, suggesting Bitcoin should continue to rise. Institutions Are Scooping Up Bitcoin According to technology data analyst Kevin Rooke, Grayscale Investments has seen an influx of Bitcoin investment activity over the past few weeks. His analysis found that in the past week alone, the American firm added 9,503 BTC to their Trust holdings while miners produced 6,863 coins over that same time frame. Grayscale bought these coins in response to client demand for shares of the Trust, which trade under the “GBTC” ticker. Image of Bitcoin accumulation by Grayscale Investments from cryptocurrency and technology data analyst Kevin Rooke (@kerooke on Twitter). Analysts see this as bullish because the clients of a single Bitcoin firm are absorbing more coins than are minted each week. As a pertinent aside, there’s been a similar trend transporting with Grayscale’s other flagship product: the Grayscale Ethereum Trust (ETHE). A top industry analyst shared on June 4th that the Trust traded at $239.50 a share, more than 1,000% higher than the value of the Ethereum backing the asset. This suggests strong retail and institutional accumulation. Ethereum price action vs. ETHE price action. Following the Footsteps of Paul Tudor Jones The surge in Bitcoin accumulation by Grayscale’s clients seems to be related to one of two things: 1) the block reward halving, or 2) Paul Tudor Jones. While the firm was already seeing mass inflows before, things have really started to pick up in the past month, after the halving and after Paul Tudor Jones promoted BTC. It isn’t 100% clear which one caused the boost. But in reality, the two events are closely connected. In early May, the billionaire hedge fund manager came out with a research note titled “The Great Monetary Inflation.” The note saw the Wall Street veteran explain why there is likely to be the debasement of fiat monies in the ongoing recession caused by the global illness. Bitcoin, to him, is a way to hedge his portfolio amid these trying times. He explained that the asset’s scarcity, which is enforced by halvings like the one we saw in May, makes it the “fastest horse” in the asset race at the moment. “The Great Monetary Inflation” was shared widely in mainstream media, leaving some to suggest that it has drawn institutional players into the Bitcoin space. A Big Catalyst for Bitcoin The entrance of institutions into the cryptocurrency space is expected to be a large boost for this nascent market. Bloomberg senior commodities strategist Mike McGlone made the following comment on institutions in Bitcoin in a June cryptocurrency report: “Despite the lack of a U.S. exchange traded fund, Bitcoin on-exchange instruments indicate greater buy-andhold interest, supporting prices. The Grayscale Bitcoin Trust (GBTC), the largest, is taking an increasing amount of supply off the market, yet its premium continues to decline.” McGlone added that the accumulation shows institutions are “dip buyers,” suggesting they see long-term potential in the cryptocurrency. Goldman Sachs, though, would beg to differ. Featured Image from Shutterstock Price Tags: btcusd, xbtusd, btcusdt Data Analyst: There Continues to Be Mass Bitcoin Accumulation By Institutional Players
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After rallying as high as $10,400 earlier this week, Bitcoin plunged by nearly $2,000 in 24 hours on BitMEX. It was a move that liquidated over one hundred million worth of derivatives positions. Analysts were quick to respond to the move with expectations of downside in the crypto market. One trader shared that BTC’s price action is suggestive of a return to the $6,000s or $7,000s. Others echoed this. But according to a macro indicator last seen at the start of 2019’s bull run, bulls remain in control of the cryptocurrency market’s trend. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Bitcoin Prints Macro Reversal Indicator From the $3,700 lows seen in March, BTC has mounted a steep reversal in step with the stock market. Even after the aforementioned rejection, the cryptocurrency is still trading over 150% higher than those March lows. The reversal has allowed Bitcoin’s trend to flip bullish on a macro time frame for the first time since early-2019, according to a trader. He shared the chart below to illustrate this point. It shows BTC’s macro price action along with a custom “momentum” indicator built by him and two other traders. According to the indicator, Bitcoin just saw a positive monthly momentum cross in response to the recent rally. Macro BTC price chart from trader “Crypto Birb” (@Crypto_birb on Twitter). The chart shows that a momentum indicator shows a macro bull trend has emerged. This is notable as the last time such a cross was seen was in January-February of 2019. The indicator crossing preceded a rally from the ~$3,500 lows to $14,000 in the span of five months — a rally of exactly 300%. Bitcoin’s momentum also flipped bullish, according to the indicator, in February of 2015, when the asset bottomed around $200 before rallying to $20,000 in the two and a half years that followed. This confirmation that BTC’s macro trend is bullish has been corroborated by another trader, who noted early last month that their custom indicator is also leaning bullish. $10,500 Needs to Clear Despite the strong macro trend forming, what lies above Bitcoin is the $10,500 resistance. Over the past year, that sole level has rejected BTC rallies on three key occasions: once during October 2019’s “Xi Pump,” when BTC rallied to $10,500 in February, and just this week. Image Courtesy of DonAlt The fact that BTC remains below it shows some uncertainty amongst traders, analysts have suggested. One commentator argued that with the latest rejection, there is a chance “there is a triple top in play,” which may lead to a retracement to the $8,000s and maybe even lower. But if that level breaks, that’s where the fun really begins. Related Reading: Why a Long-Time Bitcoin Proponent Thinks BTC Will Rally Over 3,000% in 5 Years Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Bitcoin Rallied 300% Last Time This Signal Appeared. It Just Happened Again
HackMoney Hackathon, a 30-day virtual Aave hackathon organized by Ethereum developer group ETHGlobal, has announced its three winning projects—Learn&Earn, a gamified online learning platform, YieldHero, a suite for managing Aave, and MagicBet, a no-loss betting platform that enables users to stake DAI. Hacking Lending and Money Maker Protocol Aave Organized by ETHGlobal, an organization focused on onboarding users and developers to the Ethereum community, the HackMoney Hackathon has attracted over 50 projects that competed for $300,000 worth of prizes by hacking the Aave protocol. The money maker protocol was utilized in innovative ways, ranging from online education to one-stop suites for managing interest and yields. Judges Vitalik Buterin, Stani Kulechov, Andreas Antonopolous, Thomas Bertani, Ashleigh Schap, and Robert Leshner announced the three winning hacks—Learn&Earn, YieldHero, and MagicBet. According to HackMoney’s announcement, Learn&Earn placed first with its novel approach to online learning. The platform gamifies the learning process and gives its students the ability to earn financial incentives for completing various online courses. Out of all the submissions, the company said that his hack has “real-world applications” and the potential to scale in the public sector. Innovative Ethereum Products The second place in HackMoney’s hackathon was awarded to YieldHero, a protocol that provides users a one-stop suite for managing their Aave yield. Aave enables users to deposit cryptocurrencies to the platform and earn yearly interest on their funds. The hack utilized several features to enable users to get the best yield by swapping their cryptocurrencies for aTokens, Aave’s native cryptocurrency. It also has a user interface that allows users to redirect their interest to support Ethereum developers. A built-in leaderboard also shows which user is redirecting most of their yield. MagicBet, which ranked third on the hackathon, utilized Aave’s yield capabilities for betting. The no-loss betting platform enables users to bet on real-life future events by staking DAI. All of the staked DAI accrues interest for the user via Aave until the event occurs and the outcome is known. Users that predicted the outcome correctly get a share of the total accumulated interest, while all of the users who lost the bets get all of their stakes back. Featured Image from Shutterstock
Bitcoin Futures listed on the Chicago Mercantile Exchange could form a Golden Cross in June 2020. The bullish pattern would confirm the growing presence of institutional investors in an emerging Bitcoin market. The derivative’s last Golden Cross had sent its contracts’ value up by 78.5 percent higher. As the Bitcoin spot price hovers below $10,000-$10,500 resistance range, its derivatives market is signaling a breakout scenario ahead. A potentially bullish technical indicator is forming on the Chicago Mercantile Exchange’s Bitcoin Futures‘ one-day chart. So it seems, the futures’ 50-day moving average is going to rally above its 200-day moving average in June 2020. The crossover has happened only once since the CME’s bitcoin futures listing in December 2017. On May 17, 2019, the so-called “Golden Cross” formed. Its occurrence led the rate per contract from $7,940 to as high as $14,170 in less than three months. That is nearly a 78 percent jump. Bitcoin Futures inching closer to confirming a Golden Cross pattern | Source: TradingView.com, CME In other words, since the last Golden Cross produced massive gains, its subsequent formation should result in a similar bullish scenario. That Missed Golden Cross In the spot markets, Bitcoin has historically failed to encash on three out of five of its Golden Crosses. The cryptocurrency last painted the bullish pattern on February 18, 2020, but failed to turn it into an upside breakout. On the contrary, the price fell by more than 60 percent in the next three weeks. BTCUSD forms a new golden cross after failing the previous one | Source: TradingView.com, Coinbase On the other hand, CME bitcoin futures hinted to form a Golden Cross in February-March session but never made it. Later, the rate per contract fell from $9,100 to as low as $4,250. The derivatives served as better real-time signals for traders to predict the market’s next move, while the spot market misjudged the bullish narrative. On May 20, 2020, Bitcoin’s daily spot chart formed another Golden Cross but didn’t confirm an upside price rally. Part of the reason is a strict resistance area above $10,000 that never let bitcoin’s uptrends flourish. But the formation of a similar bullish pattern on futures chart, a market ruled by more sophisticated, institutional investors, could validate the spot market’s upside bias. That said, the CME bitcoin futures’ golden cross could signal a price rally in the retail markets, as well. Existing Risks in Bitcoin Markets As stated, Bitcoin futures failed to form a 50-200 MA crossover in the February-March period. The two moving averages almost converged but fell short due to external macroeconomic factors. A virus pandemic led global economies to shut down and sent investors into the safety of cash, devaluing everything else. Bitcoin markets suffered as a result. While such concerns are mainly missing following the reopening of economies, risks associated with a second wave of infections, followed by sparse unemployment and corporate earning data, are weighing on the global market. If that leads to a correction in the traditional assets, investors could liquidate their existing bitcoin positions to cover their losses.
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Litecoin retreated from the $50.00 resistance and found support near $45.00 against the US Dollar. The price is currently rising and it could surge if it clears the $48.00 resistance. There is a major bullish trend line forming with support near $46.50 on the 4-hours chart of the LTC/USD pair (data feed from Kraken). Bitcoin price could also continue higher above $9,800 if LTC first clears the $48.00 resistance. Litecoin price is rising again from the $45.00 support zone against the US Dollar. LTC is likely to first break higher and it might fuel a fresh increase in bitcoin and ETH. Litecoin Price Could Retest $50 Earlier this week, litecoin price climbed higher above the $45.00 and $48.00 resistance levels against the US Dollar. However, LTC price failed to clear the $50.00 resistance area. A high was formed near $49.94 before the price started a sharp downside correction. It broke a few important supports near $48.00, but it remained well bid above the 100 simple moving average (4-hours). A low is formed near $44.58 and the price is currently rising. Litecoin is trading nicely above the $46.50 level. It surpassed the 50% Fib retracement level of the recent decline from the $49.94 high to $44.58 low. There is also a major bullish trend line forming with support near $46.50 on the 4-hours chart of the LTC/USD pair. The pair is now approaching a major resistance near the $48.00 level (the recent breakdown zone). It coincides with the 61.8% Fib retracement level of the recent decline from the $49.94 high to $44.58 low. Litecoin Price A successful break above the $48.00 resistance could spark a fresh run towards the $50.00 resistance. The next major hurdle for the bulls is near the $52.50 level. In the mentioned case, bitcoin could also gain traction above the $9,740 and $9,800 resistance levels. Fresh Decrease in LTC If litecoin fails to continue above the $48.00 resistance, there is a risk of a fresh decline. On the downside, the first major support is near the trend line and $46.50. The main support is still near the $45.00 level. A daily close below the $45.00 level could initiate a fresh decline towards the $41.50 support. Technical indicators: 4-hours MACD – The MACD is about to move back into the bullish zone. 4-hours RSI (Relative Strength Index) – The RSI for LTC/USD is currently well above the 50 level. Major Support Levels – $46.50 followed by $45.00. Major Resistance Levels – $48.00 and $50.00. Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin mining difficulty could drop by 10.25 percent on Thursday. It will be the most significant downward adjustment since “halving.” Historically, wild negative swings in Bitcoin’s mining difficulty has led to significant price drops. Bitcoin risks undergoing a short-term price drop as it becomes easier for its producers to mine it. Sasha Fleyshman, a trader at California-based Arca, noted that Bitcoin’s network difficultly could drop by as much as 10.25 percent during the New York trade session. It would be the most significant downward adjustment since Bitcoin’s third halving on May 11. The first took place on May 20 with a mere 6 percent plunge. Expected bitcoin mining difficulty adjustment | Source: Sasha Fleyshman Twitter Capitulation Scare The Bitcoin network undergoes a self-correcting phase that decides how difficult it is to mine bitcoin after every 2016 mined blocks. A drop in the difficulty makes it easier to confirm and add transactions on the blockchain every 10 minutes. Meanwhile, a rise makes it difficult for miners to find new blocks on the network primarily when they use outdated, low-efficient machines. Therefore, a miner typically invests more power to extract its bitcoin rewards, which are already down by half since the May 11’s halving event. In both cases, small miners end up closing down their rigs. An eased network difficulty makes firms with advanced mining machines mine at a much rapid speed. That leads the ones with lower quality machines to capitulate. Capitulation refers to an act of selling bitcoin tokens in the open market to cover operational costs. It causes prices to plunge. BTCUSD response to successive difficulty adjustments in November-December 2018 | Source: TradingView.com Mr. Fleyshman recalled multiple downward adjustments in the Bitcoin network from November 2018 and their immediate impact on the cryptocurrency’s prices. On November 16, December 3, and December 2018, the difficulty rate dropped by 7.39 percent, 15.13 percent, and 9.56 percent, respectively. Each adjustment led to a plunge in the bitcoin price. “It would mark the 3rd successive downward difficulty adjustment in what I consider the “Modern ASIC era” of Bitcoin mining,” added Mr. Fleyshman. “With the new line of S19s supposedly being sent out, it will be interesting to see if HR was turned off to replace it with new hardware.” A difficulty adjustment before the mining reward cut earlier this year had caused the bitcoin price to drop. The cryptocurrency fell from $9,989.39 to $8,785.52 in just three days. What’s Next for Bitcoin Fractals from the recent history paint a bearish picture for Bitcoin as it prevalently struggles to break above $10,000, a strict technical resistance. As big miners outrank the small ones, it could lead the latter with more reasons to sell-off their existing bitcoin holdings. Meanwhile, there is also a theory running around the social media that small miners have already exhausted their capitulation sentiment. It is visible in a dramatic hash rate decline after halving, showing that rigs have shut themselves down over lower rewards after the halving. Hashrate is picking up again | Source: Blockchain.info Overall, the BTC/USD exchange rate continues to trade in a cautious range above $9,000.
Originally from Bitcoinist.com https://ift.tt/3eL86Hy
Bitcoin is currently correcting higher from the $9,300 support against the US Dollar. BTC price must clear the $9,740 and $9,800 resistance levels to continue higher in the near term. Bitcoin is currently showing a few positive signs above the $9,500 and $9,600 levels. The price is likely to gain bullish momentum if it breaks the $9,740 and $9,800 resistance levels. There is a bear flag forming with resistance near $9,740 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could resume its decline if it fails to clear the $9,740 resistance zone. Bitcoin Price Facing Hurdles Yesterday, we saw a sharp U-turn in bitcoin price from well above $10,000 against the US Dollar. BTC broke many key supports near $9,800 and the 100 hourly simple moving average. It even spiked below the $9,500 support and tested the $9,300 support area. A low is formed near $9,299 and the price is currently correcting higher. It is now trading above the $9,500 pivot level. There was a break above the 23.6% Fib retracement level of the downward move from the $10,366 high to $9,299 low. Moreover, it is trading above the $9,600 level and the 100 hourly simple moving average. It seems like there is a bear flag forming with resistance near $9,740 on the hourly chart of the BTC/USD pair. The channel resistance zone is close to the recent breakdown zone at $9,740. There is also a connecting bearish trend line forming with resistance near $9,745 on the same chart. Bitcoin Price If bitcoin price clears the trend line resistance, it could test the next major resistance near $9,800. The 50% Fib retracement level of the downward move from the $10,366 high to $9,299 low is also near $9,832. If the bulls manage to clear the $9,740 and $9,800 resistance levels, there are chances of a steady rise in the coming sessions. The next key resistance zone is seen near the $10,000 level. Fresh Decline in BTC? There are chances of another downside break in bitcoin if it struggles to clear $9,740 and the trend line resistance. On the downside, the first key support is near the flag channel at $9,600. A clear break below the bear flag at $9,600, it could accelerate losses. An immediate support is at $9,500, below which there is a risk of more downsides towards the $9,300 level. Technical indicators: Hourly MACD – The MACD is slowly moving in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level. Major Support Levels – $9,600 followed by $9,500. Major Resistance Levels – $9,740, $9,800 and $9,830.
Bitcoin has seen incredibly mixed price action in recent times, with its rally to $10,400 invigorating buyers while its decline from these highs has bolstered bulls. Although its mid-term trend remains incredibly unclear, there are a few technical factors that offer insight into the cryptocurrency’s near-term outlook. One such pattern suggests that the crypto is currently in a precarious situation, as a bear-favoring triple top formation is currently in play. There is a diagonal trendline that could help invalidate this pattern, and one analyst is even noting that “all bets are off” for Bitcoin if it breaks $10,500 – suggesting this will be the level that catalyzes a massive upswing. Beware the Triple Top: Bitcoin’s Rejection at $10,400 Puts Bearish Pattern in Play Yesterday morning, Bitcoin lost the immense buying pressure that helped send it to highs of $10,400. The break below $10,000 triggered a cascade of liquidations that sent it down to lows of $8,600 on BitMEX – leading roughly $100 million in positions to be liquidated. This also marked the third clear rejection that the benchmark cryptocurrency has seen since it declined from 2019 highs of $13,800. One analyst is saying that a bear-favoring “triple top” formation is now in play, which could lead it significantly lower in the weeks and months ahead. “BTC update: We now got a triple top in play. That makes the support areas I outlined even more attractive as a buy,” he noted while pointing to the chart seen below. Image Courtesy of DonAlt There is one technical factor that could help invalidate this formation and lead the cryptocurrency higher. Another popular analyst spoke about this in a recent tweet, pointing to a recently formed diagonal trendline as one factor that could help guide it higher in the hours and days ahead. “BTC – Diagonal & EQ still holding as Support. h4 closed above a key S&R at $9,580s. First area of interest is $9,790. Time to grind it back up to 5 digits?” Image Courtesy of UB Here’s the Level That Could Spark a Massive BTC Movement $10,500 is undoubtedly a critical level that buyers need to surmount if they want to spark any type of macro uptrend. One pseudonymous trader mused the importance of this level, explaining that “all bets are off” once $10,500 breaks – eluding to the fact that a break above this level could spark a massive uptrend. “I’m not saying it happens right now, but when 10.5k breaks, all bets are off,” he noted while pointing to the below chart. Image Courtesy of Byzantine General All factors considered, now does appear to be a critical time for Bitcoin. How it trends in the coming days could determine where the entire crypto market moves throughout the rest of the year. Featured image from Shutterstock. BTCUSD, BTCUSDT, XBTUSD
After the $1,500 drop that Bitcoin sustained just the other day, analysts are reconsidering their bullish skew on the crypto market. One analyst went as far as to suggest that the cryptocurrency is poised to correct towards the $7,000s after seeing that harsh rejection above $10,000. The analyst in question predicted months in advance BTC would bottom in 2019 at $6,400, and called for BTC to top around $11,000 earlier this year. Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Bitcoin Poised to Drop in the Near Term The analyst in question shared the chart below on June 3rd, showing that Bitcoin’s macro price action from the $20,000 high until now looks eerily similar to the consolidation after 2013’s bull market. During that consolidation, Bitcoin twice retraced to the green growth curve indicated in the chart below. In this cycle, it has done that only once, suggesting it will fall to the $6,000s-7,000s one more time before a full-blown bull run. Macro BTC price chart from a prominent crypto trader “Dave the Wave” (@Davthewave on Twitter). The chart shows that Bitcoin’s price action from the $20,000 all-time high looks very similar to the consolidation after 2014-2015’s bear market. The calls for caution have been echoed by John Bollinger, the prominent technical analysis behind the Bollinger Bands indicator. “The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short,” he said. This comment was made in reference to his indicator, which shows that Bitcoin was strongly rejected after attempting to break out of its current range. Still Long-Term Bullish Although he may expect a correction, the analyst remains long-term bullish. He noted recently that the Moving Average Convergence Divergence (MACD) for Bitcoin (on the weekly chart) is “well situated for the cyclical move up.” This move higher should bring the asset to new all-time highs, as the chart below suggests. “Though a short term correction may well be on the cards, the longer term is looking super-bullish. Weekly MACD well situated for the cyclical move up as compared to last time….” the analyst said in reference to the chart seen below. Macro BTC price chart from a prominent crypto trader “Dave the Wave” (@Davthewave on Twitter). It shows that Bitcoin’s long-term trend is still positive. The fundamentals corroborate this cheery outlook. Adam Back, chief executive of Bitcoin development firm Blockstream, recently shared that he thinks BTC will reach $300,000 in the coming five years. This would imply a rally of around 3,000% from the current market price. The executive told Bloomberg that the vast amounts of money printing and the growing propensity among investors to hedge their investments with BTC will push the asset to these levels. He added that with real estate risky and bonds overvalued, investors are going to turn to alternative investments like Bitcoin next. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Featured Image from Shutterstock Price tags: btcusd, xbtusd, btcusdt Why an Eerily Accurate Analyst Still Expects Bitcoin to Retrace To the $6ks
Bitcoin took a heavy beating yesterday after attempting to break past $10,000 for the first time in weeks. As reported by Bitcoinist previously, the asset plunged by $1,500 in three minutes, falling as low as $8,600 on BitMEX due to a barrage of sell orders. On spot exchanges and some other derivatives exchanges, the cryptocurrency managed to hold the low-$9,000s. Despite the brutal sell-off, a Bloomberg analyst sees Bitcoin hitting $20,000 in 2020. He cited a confluence of fundamental factors to back this cheery prediction. Bitcoin Could Double in 2020 According to senior commodities analyst at Bloomberg Mike McGlone, the leading cryptocurrency is on track to hit $20,000 by the end of 2020. McGlone explained Bitcoin’s price action over the past few months, before and after May’s block reward halving, is looking much like the price action in 2016. Should the historical relationship continue, BTC could hit $20,000: “Bitcoin is mirroring the 2016 return to its previous peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend.” McGlone’s optimism boils down to a large confluence of market factors, some of which are as follows: BTC is outperforming the stock market, which may draw more investors into the cryptocurrency market. Bitcoin is gaining institutional adoption, as evidenced by the CME futures market. The number of active BTC addresses is increasing. The halving should have a positive effect on the supply-demand dynamic of the crypto market. Not the Only Analyst Eyeing $20,000 McGlone is far from the only individual eyeing $20,000. Arthur Hayes, chief executive of BitMEX, explained in the April edition of his newsletter “Crypto Trader Digest” that the asset is on track to set a new all-time high this year. The record amount of fiscal and monetary stimulus being spearheaded by central banks and governments around the world will back the trend, Hayes wrote: “Everyone knows the shift is upon us, that is why central bankers and politicians will throw all of their tools at this problem. And I will reiterate, that is inflationary because more fiat money will chase a flat to declining supply of real goods and labour. There are only two things to own during the transition to whatever the new system is and that is gold and bitcoin.” This was echoed to a T by Dan Morehead of Pantera Capital, one of the leading crypto- and blockchain-centric funds in the world. Morehead explained in his company’s March newsletter that by increasing the money supply, central banks are encouraging scarce assets to increase in dollar values: “As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. I think they will do that. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.” Featured Image from Shutterstock Price tags: btcusd, btcusdt, xbtusd Bloomberg Analyst: Why the Bitcoin Price Will Double to 20 thousand in 2020
Originally from Bitcoinist.com https://ift.tt/3dvtP6h
After breaking out past $250 on June 1st, Ethereum saw a harsh rejection on June 2nd. The asset fell from over $250 to $225 in a matter of minutes, crushed as Bitcoin slipped by a similar amount on top exchanges. Despite this strong drop, analysts assert that bulls still remain in control of the asset. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Ethereum Bulls Still in Control, Despite 10% Correction In the wake of the correction, a prominent trader noted that Ethereum remains above crucial support levels. The chart indicates ETH is still trading above the eight-day moving average, along with the $225 horizontal resistance. This is important as it shows that bulls remain on control. As the analyst remarked in reference to the chart: “Ethereum Daily [chart] – Bulls have built a pretty nice chart without any real buying pressure.” ETH price chart shared by prominent trader “Cheds” (@BigCheds on Twitter). The chart shows that the cryptocurrency remains above crucial support levels on a technical basis despite the recent retracement. A commenter responding to the analyst asked if Bitfinex’s Ethereum market has anything to do with this. For those unaware, the past few months have seen the number of long ETH contracts Bitfinex traders hold skyrocket to over $300 million in U.S. value. This is an all-time high, far above what this metric was in January of this year or even at the peak of 2018’s bull market. It isn’t clear how this trend has affected the Ethereum price, but it probably isn’t bearish. That’s for sure. Not the Only Bull The abovementioned analyst isn’t the only bull in this environment. Per previous reports from NewsBTC, one analyst suggested that Ethereum is on track to hit $300 by the end of June. The analyst in question shared the chart below illustrating that ETH recently saw a textbook break out of a symmetrical triangle, showing the trend is still positive: “As I don’t believe this dip is the end of all crypto, I’m patiently waiting to long low $200 $ETH into $300 by the end of the month.” Ethereum price chart and outlook shared by prominent trader “Galaxy,” who goes by @GalaxyBTC on Twitter. Another individual shared in the optimism, writing his own analysis: “Things not looking that bad right now, would be nice if we could see a retest of the $220 level before we continue higher as we have not even validated it as support. Even with today’s pretty harsh selloff, this structure is still remaining as bullish for now.” Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Featured Image from Shutterstock Price tags: ethbtc, ethusd Analyst: Ethereum Bulls Still In Control at $240, Even Without "Real" Buying
Ethereum has entered a firm consolidation phase in the time following its recent bout of volatility. This turbulence came about yesterday, with ETH’s buyers propelling it to highs of $255 before it lost its momentum and declined down to lows of $230. Bitcoin triggered this movement, as the benchmark cryptocurrency first rallied to highs of $10,400 on Monday evening before losing all its buying pressure and reeling as lows as $8,600 on one major trading platform. The aggregated crypto market appears to be closely watching to see what Bitcoin does next, but it is possible that ETH will be able to incur some independent momentum. One analyst believes that this next Ethereum move could heavily favor buyers, as there are a couple emerging factors that may help boost it higher. Ethereum Consolidates Within Bull-Favoring Technical Formation Ethereum has entered what appears to be a consolidation phase as it struggles to garner any notable momentum. At the time of writing, ETH is trading down just under 1% at its current price of $238. It has been ranging between $230 and $240 in the time following its immense volatility. It is highly likely that the crypto’s near-term price action will be heavily influenced by that of Bitcoin, although analysts are pointing to a technical formation that it is currently caught within as a reason why it could rally higher. One analyst offered a chart showing this pattern – which is clearly seen while looking towards its BTC trading pair. Image Courtesy of Ethereum Jack The upper boundary of this broadening wedge appears to sit around 0.025. Ethereum is currently trading up 0.5% against BTC at 0.0247. If it is able to break this level, it could see some independent momentum that allows it to outperform Bitcoin in the days ahead. Here’s the Level ETH Needs to Break to Set Fresh All-Time Highs Throughout the course of its latest downtrend, the cryptocurrency was able to maintain above a key support level. This level sits at $228 – which happens to be where BTC had faced some strong resistance during its uptrend seen last week. Another respected trader explained in a recent blog post that the close above this level is undoubtedly a bull-favoring sign. “Looking at the daily for the dollar pair, we can see that price closed firmly above that high at $228 that I was so keenly watching, with consolidation occurring above the high,” he noted. He also went on to explain that the cryptocurrency needs to break above $254 in order for it to see any intense upwards momentum that leads it back to its yearly highs of $290. “There are two possible scenarios that make for high R plays; either we see a breakdown at the trendline resistance after taking out $254, which I would look to get short on, or we close above the confluence of levels and rally into $290.” Featured image from Shutterstock. ETHUSD, ETHUSDT, ETHBTC
When people think of Tether’s USDT stablecoin, the Ethereum blockchain will be mentioned relatively quickly. However, it seems as if the USDT issuance on TRON is also on the rise, as its circulation amount surpassed $2.5 billion.
It is rather interesting to see how the USDT supply is distributed across different blockchains.
USDT on TRON is on Fire
The original OMNI blockchain has seemingly been surpassed by at least two competitors, at least in USDT issuance volume.
Ethereum is clearly the go-to chain for this stablecoin, but competition will arise sooner or later.
According to Justin Sun, the issuance of USDT on TRON has surpassed $2.5 billion in terms of circulation amount.
A remarkable milestone, although it validates the choice for TRON as an extra liquidity network.
As such, this news will catapult TRON’s blockchain to a whole new level.
That said, it is a bit worrisome when stablecoins are the main reason for blockchain use these days.
This applies as much to TRON as it does Ethereum.
None of the dApps on either blockchain come close in terms of volume or transactions.
That is a bit worrisome, albeit the situation will keep evolving at all times.
The race between TRON and Ethereum appears to be far from over at this point.
The post The USDT Supply on TRON Surpasses a Major Milestone appeared first on NullTX.
via NullTX https://ift.tt/2MnO9KS
Starting June 3, 2020, the KuMEX crypto futures trading platform will be rebranded as KuCoin Futures, announced the IDG-backed cryptocurrency exchange giant. In addition to the rebranding exercise, the platform will also be launching an Ethereum perpetual contract with 100x leverage. According to the announcement, KuCoin Futures will be available on its new official website: futures.kucoin.com, and the existing KuMEX communities and social media channels will be renamed to reflect the new brand name. To avoid any confusion, KuCoin will continue supporting the original domain name kumex.com for another 6 months before completely shifting all futures trading operations to KuCoin Futures. There won’t be any changes in the trading experience, and existing users can continue trading without having to go through the registration process all over again. New Features on KuCoin Futures Started in July 2019, the KuCoin Futures platform has been supporting Bitcoin perpetual and quarterly contracts as well as USDT-Margined perpetual contracts. It holds the distinction of being the only platform with a Level 3 data push mechanism to create a fair-trading environment. Having experienced peak trading volumes exceeding USD 200 million, KuCoin Futures expects significant growth in the coming days following the inclusion of Ethereum perpetual contracts with a very low maintaining margin rate of up to 0.5%. KuCoin Futures is also focusing on the development and launch of BCH, EOS, and other futures contracts, along with new features like Cross Collateral, high-frequency trading, dynamic diversions, and big data risk controls. However, these new additions are expected to be made available on a later stage once the entire rebranding process is concluded. “KuCoin has been promoting the underlying infrastructure for the crypto world and laying out a cryptocurrency ecosystem. As the crypto derivatives market continues to mature, the proportion of its trading volume will be close to that of the traditional finance market, and the next few years will be a golden period for the rapid development of crypto derivatives. As KuCoin Futures continues to develop, we will see the value and global influence that KuCoin has in the derivatives market. The KuCoin Futures platform will also become the most important development engine of KuCoin,” said KuCoin Global CEO Johnny Lyu. The decision to rebrand KuMEX to KuCoin Futures is part of the company’s strategy to enhance its influence in the crypto derivatives market by revisiting the core values of the platform to provide the best futures trading experience to its users. It will also be launching more promotional activities like an affiliate program, trial fund, new VIP fee structure, and more, which could play a significant role in helping KuCoin Futures achieve its goals.
Ethereum is down more than 5% as it broke the $240 support against the US Dollar. ETH price found support near $220 and it is currently correcting higher towards key hurdles. Ethereum failed to continue above $250 and it started a major decline. The price dived below $240 and it even spiked below the $230 support zone. There was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD (data feed via Kraken). The pair could resume its decline if it fails to recover above the $240 pivot level. Ethereum Price Turns Red This week, Ethereum price followed a bullish path above the $220 pivot level. ETH price broke many key hurdles near the $240 and $250 levels. It even spiked above $250 resistance, but struggled to continue higher. A high is formed near $253 and the price started a strong decline, following bitcoin’s sharp slide below $10,000. Ether price broke many key supports near the $240 level to move into a short term bearish zone. Besides, there was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD. The pair spiked below the $230 support and the 100 hourly simple moving average. Ethereum Price It tested the $220 support zone and a low is formed near $218. Ethereum is currently recovering nicely above the $230 level. It surpassed the 50% Fib retracement level of the recent drop from the $253 high to $218 low. However, there is a major hurdle forming near the $240 level. It coincides with the 61.8% Fib retracement level of the recent drop from the $253 high to $218 low. A successful break above the $240 resistance is needed for a fresh increase. The main resistance on the upside is still near the $250 and $255 levels. Uptrend Support for ETH The first major support for Ethereum is near the $230 level. The main uptrend support is near the $220 level, which acted as a strong resistance in the past few days. If the price fails to stay above the $220 support, there is a risk of a larger decline towards the $205 and $200 support levels in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is still well below the 50 level, with a negative bias. Major Support Level – $230 Major Resistance Level – $240 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Ripple failed to continue higher above $0.2150 and declined sharply against the US Dollar. XRP is showing bearish signs just like bitcoin and it could dive further below $0.2000. Ripple traded as high as $0.2146 and recently started a sharp decline against the US dollar. The price is now trading well below $0.2050 and remains at a risk of more losses. There was a break below a key bullish trend line with support near $0.2060 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair is likely to continue lower if it breaks the $0.2000 and $0.1950 support levels. Ripple Price Turns Red After a steady rise, ripple price faced a strong selling interest near the $0.2150 resistance. The key driving force was bitcoin, declining more than 6% below the $10,000 and $9,500 levels. XRP price followed a bearish path from the $0.2146 high and it declined sharply below $0.2100. There was a break below the $0.2050 support and the 100 hourly simple moving average. Moreover, there was a break below a key bullish trend line with support near $0.2060 on the hourly chart of the XRP/USD pair. The pair traded as low as $0.1977 and it is currently correcting higher. It recovered above the $0.2000 level. Ripple Price Ripple managed to climb above the 23.6% Fib retracement level of the recent decline from the $0.2146 high to $0.1977 low. However, the price struggled to continue above $0.2050. It is currently following a short term ascending channel with support near $0.2010. If the price fails to stay above the $0.2000 support zone, it is likely to resume its decline. The first major support is near the $0.1950 level, below which it could revisit the main $0.1920 support. Any further losses may perhaps start a significant decline towards the $0.1800 level in the near term. Recovery in XRP? On the upside, an initial resistance is near the $0.2050 level and the 100 hourly simple moving average. The next major resistance is near the $0.2060 level or the 50% Fib retracement level of the recent decline from the $0.2146 high to $0.1977 low. To start a fresh increase, the price must surpass the $0.2060 and $0.2065 resistance levels. Any further gains could lead the price towards the $0.2100 zone in the coming sessions. Technical Indicators Hourly MACD – The MACD for XRP/USD is slowly moving into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well below the 40 level. Major Support Levels – $0.2000, $0.1950 and $0.1920. Major Resistance Levels – $0.2050, $0.2060 and $0.2100. Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin fell $1,500 in just three minutes in an overnight price crash Monday. But the dip has not deviated the world’s leading cryptocurrency from extending its uptrend. A top stock market analyst noted that risky assets would keep growing in value as long as there is a stimulus. Bitcoin has yet another Black Swan event on Tuesday as its price crashed by $1,500 in just three minutes. XBTUSD crashed $1,500 overnight | Source: TradingView.com, BitMEX Observed noted that a misbalancing in the Bitcoin futures’ funding rate caused the crash. That represents a fee that bullish contract holders have to pay to bearish contract holders every eight hours – or vice versa. Before the crash, the derivative market on BitMEX was majority long, which means most of the traders expected the bitcoin price to rally further into the week. That allowed the funding rate to hit new weekly highs at 0.19 percent. On a typical day, it hovers near 0.01 percent. Nevertheless, when the price started moving southward, it liquidated about $120 million of long contracts – causing a “Long Squeeze.” So it seems, overleveraged positions elaborated a small price dip into a bigger one, crashing bitcoin from near $10,100 to as low as $8,600. Bullish Fundamentals Intact Despite the dip, Bitcoin is maintaining its overall yearly gains above strong support levels. So it seems, the crypto market, which is used to surprising wild move, would likely ignore the $1,500 price crash in the context of more relevant macro developments. For instance, the U.S. stock market was as bizarre as Bitcoin on Tuesday. The benchmark S&P 500 rose higher even though investors assessed the civil unrest across the U.S. and tensions with China. A top stock market analyst noted that most of the short-term negative fundamentals do not matter. Edward Moya of Oanda told WSJ that risky markets have support from the Federal Reserve’s open-ended stimulus program. At the same time, Bitcoin’s erratic yet growing positive correlation with risky equities also makes it eligible to keep a similar upside sentiment. “There’s just so much stimulus, it’s propping up the market. The stock market is now no longer a true reflection of the economy, and you’re going to see that remain the case for several years.” Stifel (NYSE: SF) also said in an investor note on Wednesday that the S&P 500 could rally another 8 percent to 3,250 by August 30. The Wall Street firm noted that bottoming economic data, valuation growth, and optimistic technical outlook will offset risks associated with lower earnings. “We believe the S&P 500 crossing the 50 and 200-day moving average on May 26 – May 27 signals a price of 3250 by August 30. Following a recession bear market, [crossing the moving averages] has historically signaled a price gain of 8% over the next 3 months on average,” the note read. Bitcoin Bitcoin painted a similar technical structure on its daily chart on May 20 amid its recovery rally. The cryptocurrency, like the S&P 500, had bottomed in March 2020, crashing erratically by more than 60 percent in just 24 hours. Nevertheless, it negated its losses entirely after rising by up to 161.25 percent, leading many observers to see its growing positive correlation with the S&P 500. BTCUSD SPX Correlation | Source: TradingView.com The connection between the two markets showed signs of decoupling in May 2020. But it resumed back against the backdrop of the rising Sino-U.S. geopolitical tensions over Beijing’s push for tighter security laws in Hong Kong. Bitcoin and S&P 500 erased part of their recent gains last Friday in tandem. The losses surfaced as investors anticipated a new cold war between the U.S. and China. The sentiment, in turn, weighed on the intraday risk-on sentiment. Conflicts Despite its optimistic predictions for the S&P 500, Stifel mentioned a few risks that could spoil its rally. The firm noted that the growing number of virus infections could put a brake on the U.S. benchmark’s upside moves. Meanwhile, it asserted the number of virus-attributed deaths would go down to zero by the end of next month. The real risk, Stifel, could come from political and media reactions to the virus. ‘It may have unpredictable economic effects,’ the firm said. Meanwhile, Bitcoin will have its own-risks to battle. The cryptocurrency, now among the most profitable post-March asset, remained vulnerable to price manipulation at unregulated crypto derivatives exchanges. On a technical front, it has also failed to move above a long-term resistance trendline. BTCUSD is trading 150 percent higher from its mid-March lows | Source: TradingView.com But market analysts remain optimistic without even referring to the S&P 500. One notable trader said that the “trendline” will become weaker after each retest. “General rule of thumb – the more times a trendline resistance gets tested the weaker it becomes,” he explained. “Whoever artificially suppressing $10k to hold this “resistance meme” is repeating the mistake of 2018 “$6k support” holder.” That puts Bitcoin’s upside target near $10,500, its year-to-date high.
Originally from Bitcoinist.com https://ift.tt/2XUYzXx
Bitcoin is down more than 6% and it trimmed most its gains above $10,000 against the US Dollar. BTC price is currently holding the key uptrend support at $9,300, but it is vulnerable to a larger decline. Bitcoin failed to continue higher and declined sharply below the $10,000 pivot level. The price broke many supports near the $9,740 and $9,500 levels. There was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is currently holding a crucial uptrend support near the $9,300 level. Bitcoin Price Nosedives After a strong upward move above $10,000, bitcoin price failed to continue higher against the US Dollar. BTC formed a short-term top near the $10,366 level and recently started a strong decline. It broke many supports near the $10,000 and $9,740 levels to enter into a bearish zone. Moreover, there was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair. Bitcoin Price Bitcoin price is now trading well below $9,600 and the 100 hourly simple moving average. It tested the main uptrend support at $9,300 (the previous breakout zone) and traded as low as $9,299. It is currently consolidating losses above the $9,300 and $9,400 support levels. An initial resistance is near the $9,550 level. It is close to the 23.6% Fib retracement level of the recent decline from the $10,366 high to $9,299 low. It seems like there is a short term contracting triangle forming with resistance near $9,550 on the same chart. If there is an upside break above the $9,550 level, the price could face hurdles near the $9,600 level and the 100 hourly simple moving average. The next major resistance is near the $9,740 level. The main hurdle is now forming near the $9,800 region or the 50% Fib retracement level of the recent decline from the $10,366 high to $9,299 low. More Downsides in BTC? The $9,300 support zone holds a lot of significance in the near term. If bitcoin fails to stay above the $9,300 support, it could spark another sharp decline. An initial support is near the $9,000 level, below which there is a risk of a larger decline towards the $8,500 and $8,400 levels in the near term. Technical indicators: Hourly MACD – The MACD is slowly moving away from the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level. Major Support Levels – $9,400 followed by $9,300. Major Resistance Levels – $9,550, $9,600 and $9,740.
Hooraaay! We are so so happy to finally share this news with the world. Today we have officially launched our KickEX crypto exchange. We want to thank our global Kick Community that believed in us and has supported us from the very beginning.
As of June 1st, Ethereum was up 25% in the past week alone. But right on cue, the cryptocurrency market saw a harsh correction on Tuesday morning that wiped out the gains seen on Monday. Bitcoin crashed $1,500 in three minutes on BitMEX, while other cryptocurrencies such as ETH experienced losses in their own markets. This was a drop that took the wind out of the cryptocurrency market’s proverbial sails. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps John Bollinger, a prominent technical analyst known for making the indicator the “Bollinger bands,” said that Bitcoin investors should be cautious at current prices: “The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short.” The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short. — John Bollinger (@bbands) June 2, 2020 Despite this, some remain optimistic about cryptocurrencies, Ethereum especially. Top Analyst Still Bullish on Ethereum Ethereum is primed to fall towards the low-$200s after today’s correction but is still on track to hit $300 by the end of June according to a top analyst. The analyst in question shared the chart below illustrating that ETH recently saw a textbook break out of a symmetrical triangle, showing the trend is still positive: “As I don’t believe this dip is the end of all crypto, I’m patiently waiting to long low $200 $ETH into $300 by the end of the month.” Ethereum price chart and outlook shared by prominent trader “Galaxy,” who goes by @GalaxyBTC on Twitter. Another trader shared the optimism, writing: “Things not looking that bad right now, would be nice if we could see a retest of the $220 level before we continue higher as we have not even validated it as support. Even with today’s pretty harsh selloff, this structure is still remaining as bullish for now.” Reasons to Be Bullish on ETH There is a confluence of fundamentals corroborating the widely bullish sentiment investors have about Ethereum. As reported by NewsBTC previously, Defipulse.com shared that there is now over $900 million worth of assets locked in DeFi applications. It’s a trend that shows DeFi is growing, and as a result, so should Ethereum. The founder of Ethereum-based app MakerDAO said: “4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.” Adding to the expectations of ETH upside is an analysis by the founder of Mythos Capital, Ryan Sean Adams. He wrote that the asset is “doubly” undervalued, noting that the transaction fees collected by Ethereum miners have recently spiked. This is relevant because according to Adams, the price of ETH has been closely correlated with the transaction fees collected for the past five years. Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Featured Image from Shutterstock Tags: XBTUSD, BTCUSD, BTCUSDT
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