Ethereum is struggling to clear the $230 resistance level against the US Dollar. ETH price is showing positive signs and it seems like a close above the 100 SMA (H4) could trigger a fresh rally.
Ethereum Price Testing 100 SMA (H4)
After a strong rejection near $250, Ethereum started a major decline below the $238 support against the US Dollar. ETH price traded below the $230 support level and settled well below the 100 simple moving average (4-hours).
The decline was such that the price even spiked below $220. A low was formed near $216 before the price started an upside correction. There was a break above the $220 level, plus the 23.6% Fib retracement level of the downward move from the $250 swing high to $215 low.
The upward move was capped by the $232 resistance. It represents the 50% Fib retracement level of the downward move from the $250 swing high to $215 low. The price is currently trading above the $225 support, but it is struggling to gain momentum above the 100 simple moving average (4-hours).
Ethereum price testing $230. Source: TradingView.com
Recently, there was a break above an important bearish trend line with resistance near $225 on the 4-hours chart of ETH/USD. This is a positive sign, but the bulls still need to push the price above the 100 SMA and $230.
If there is a successful close above $230 and $232, the price could start a strong increase in the coming sessions. The next target for the bulls could be $250.
Fresh Decline in ETH?
If Ethereum fails to continue higher above the $230 and $232 resistance levels, there are chances of a fresh decline. An initial support is near the $222 level.
A daily close below the $222 support zone could start a steady decrease. The next support is near $215, below which the bears might aim a test of $200.
4 hours MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is currently correcting lower towards the 50 level.
Major Support Level – $222
Major Resistance Level – $232
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin is still holding the $9,000 support zone against the US Dollar. BTC is now approaching a crucial juncture and it could either rally above $9,200 or start a sharp decline below $9,000.
Bitcoin Approaching Crucial Juncture
This past week, bitcoin made another attempt to gain traction above $9,300 resistance against the US Dollar, but it failed. BTC trimmed gains, and declined below the $9,200 support level and the 100 simple moving average (4-hours).
It even spiked below the $9,000 support level and traded as low as $8,933. Recently, there was a fresh increase above the $9,000 level and it seems like the price is forming a decent support base above the $9,000 level.
There was a break above the 50% Fib retracement level of the downward move from the $9,300 swing high to $8,933 low. Bitcoin price is now facing a major resistance near the $9,150 and $9,200 levels. There is also a significant bearish trend line forming with resistance near $9,140 on the 4-hours chart of the BTC/USD pair.
Bitcoin price holds $9,000: Source: TradingView.com
The trend line is close to the 61.8% Fib retracement level of the downward move from the $9,300 swing high to $8,933 low. Above the trend line, the 100 simple moving average (4-hours) is near the $9,220 resistance.
The main resistance is still near the $9,300 level. Therefore, BTC must surpass the $9,200 and $9,300 resistance levels to start a strong increase in the near term. If the bulls succeed, the price might easily rise towards the $9,500 and $9,600 levels.
Downside Break in BTC?
If bitcoin struggles to clear the $9,200 and $9,300 resistance levels, there is a risk of a sharp decline. The first major support is near the $9,000 level and connecting bullish trend line on the same chart.
A successful bearish break below the $9,000 support could spark a sustained downward move below the $8,800 level in the coming sessions. The next major support is seen near the $8,500 level.
4 hours MACD – The MACD for BTC/USD is gaining pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.
Major Support Level – $9,000
Major Resistance Level – $9,200
Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin’s volatility has been eerily low over recent weeks. As Bitcoinist has covered extensively, indicators tracking the metric have plunged to multi-month lows as BTC has been caught between $8,500 and $10,000. On July 3rd, a trader shared the image below, showing Bitcoin’s historical volatility index (one-day, BitMEX) over the past two years. The chart shows that the index is at its lowest value since the end of March 2019. Bitcoin Historical Volatility Index, one-day chart, BitMEX chart from “XC” (@Runtheirstops on Twitter). Chart from TradingView.com BTC’s implied volatility is also at lows not seen since March 2019. The width of the Bollinger Bands, another measure of volatility, is also at multi-month lows. The Bollinger Bands are a classic technical indicator often used to signal important levels and market volatility. The volume in the Bitcoin market has dropped alongside the slow market, reaching the “end of the line,” as one analyst put it: “Volume trend reaching end of the line. All closes outside local ranges were fakeouts. Watch for this behaviour to break – good odds it’ll signal real direction. Local unconfirmed (skewed) iHS neckline lines up with diag resistance from ATH to now.” Low volumes and no volatility in confluence, analysts have said, suggest an imminent Bitcoin breakout of macro importance. Traders have mixed opinions on which way Bitcoin will move after this consolidation. But a Bloomberg analyst recently threw his weight behind the bull case. Bloomberg Analyst Expects a Bitcoin Breakout to the Upside There have been many analysts saying that Bitcoin’s ongoing consolidation will break to the downside. In reference to the chart below, a full-time trader said: “A couple more clues developing that lend themselves to HTF distribution. 1. Rising Demand on the verge of failing. 2. Side by side, ascent vs descent with selling the dominant pressure from volume.” He added that should the drop transpire, a correction under $7,000 is entirely possible. Bitcoin distribution analysis shared by trader “Cold Blooded Shiller” (@Coldbloodshill on Twitter). Chart from TradingView.com Yet according to Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, the ongoing consolidation is more likely to break higher than lower. The analyst wrote the following on Twitter about Bitcoin’s medium-term outlook: “Volatility should continue declining as Bitcoin extends its transition to the crypto equivalent of gold from a highly speculative asset, yet we expect recent compression to be resolved via higher prices.” Attached to this optimistic message was a chart of Bitcoin’s 52-week simple moving average, which BTC is holding strong. Also depicted is the total amount of capital in the Grayscale Bitcoin Trust, which has skyrocketed in what some see as a sign of strong institutional interest. What’s Behind This Optimism? McGlone is optimistic about Bitcoin for other reasons. In reference to the ongoing spike in active BTC addresses, McGlone wrote in a recent Bloomberg report: “The number of active Bitcoin addresses used, a key signal of the 2018 price decline and 2019 recovery, suggests a value closer to $12,000, based on historical patterns. Reflecting greater adoption, the 30-day average of unique addresses from Coinmetrics has breached last year’s peak.” The analyst has also mentioned central bank money printing, the CME’s adoption of BTC, and Bitcoin’s ability to outperform altcoins on a macro scale as reasons for the asset to rally. Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bloomberg: Eerily Low Bitcoin Volatility Will "Resolve Via Higher Prices"
Originally from Bitcoinist.com https://ift.tt/38sOdD5
Bitcoin and the stock market have formed a close correlation in recent weeks, but this is now showing some signs of breaking as BTC trades sideways while most equities begin picking up some momentum.
The stock market has been seeing an intense recovery, and its momentum appears to be picking up once again as many states and cities that were previously on lockdown begin opening up.
One indicator of the market’s newfound momentum can be seen while looking towards the number of publicly traded companies that are seeing their stock prices hit fresh all-time highs.
On Friday, 59 common stocks on the NYSE were able to set fresh highs. This is still a far cry from the numbers seen before March, but it does show that the traditional markets are making a comeback.
However, despite the recent correlation between Bitcoin and the traditional markets, it remains unlikely that this will be enough to propel the cryptocurrency to fresh highs.
Stock Market Recovery Ramps Up Amidst Promising Payroll Data
The past couple of months have been rather lackluster for both Bitcoin and the traditional markets.
Investors have been mostly sitting on their hands as they await more data regarding just how far-reaching the pandemic’s damages were to the US and global economy.
The stock market appears to be once against starting to catch some further momentum, however, as employment data signals that the economy is seeing a “v-shaped” recovery despite the pandemic still raging throughout the world.
As NewsBTC reported yesterday, the latest set of Non-Farm Employment data elucidated that 4.8 million jobs were created last month. This was well above what economists had anticipated and shows that companies are going on hiring sprees as things start going back to normal.
Even Bitcoin posted a slight, albeit fleeting, reaction to this news.
This accelerated the stock market’s momentum, and on Friday alone, 59 common stocks were able to set fresh all-time highs – with this being the highest number seen since the downturn in late-February.
One market analyst spoke about this in a recent tweet, saying:
Image Courtesy of Helene Meisler.
Why Bitcoin May Not Benefit from Stock Market Recovery
Between February and June, Bitcoin and the equities market remained closely correlated to one another.
This correlation, however, is beginning to show some signs of breaking as the stock market recovers while Bitcoin continues trading sideways around $9,100, a trend that can be clearly seen on the below chart from Skew.
Image Courtesy of Skew.
If this trend persists, Bitcoin may not be able to catch the upwards tailwind created by a stock market rally.
Featured image from Shutterstock.
Bitcoin, Ethereum, along with many other cryptocurrencies have done well in 2020. Yet the same cannot be said for XRP, which is down by approximately 10% since the start of the year. The fourth-largest cryptocurrency started the year third, but XRP has performed so relatively poorly that it has slid down a slot. Its market capitalization now sits below that of Tether’s USDT, which has been benefiting from its own influx of adoption from many corners of cryptocurrency. Some traders, however, have postulated that the asset’s fate is set to change. They cite technical factors, which show an uptrend is possible. This sentiment, though, hasn’t convinced all investors. XRP Just Broke Out and Is Starting to Flash Bullish Signs, But Not Everyone Is Convinced On July 4th, a trader shared the image below, showing that XRP has just printed a bullish technical sign. Per the chart, after trending lower for five weeks, the leading altcoin just broke above a crucial downtrend that has led the asset 20% lower. It is now peaking out from above the trendline, suggesting a relief rally of sorts is possible. XRP chart from trader Cold Blooded Shiller (@ColdBloodShill on Twitter). Chart from TradingView.com Other traders have echoed the optimism. Another trader shared the chart below around the same time. Attached is the following comment: “With high timeframe divs present I’ve got the fizz for this setup. Let’s see if XRP has any life in it.” The chart shows XRP looking poised to bouncing off a crucial level of horizontal support, also suggesting a relief rally. XRP chart from trader Ichimoku Scholar (@ichimokuscholar on Twitter). Chart from TradingView.com Yet not everyone is convinced that a rally will follow. A few weeks after saying that he doesn’t think XRP will ever cross $1.00 again, a trader remarked that he has been “opening a new short on XRP every day.” This skepticism has been echoed by other market participants, like prominent technical analyst Peter Brandt, who recently speculated: “Looks like Ripple Labs has blown the wad allocated to support XRPBTC at .00002060 to .0002075 levels. If ice-line cannot be reclaimed, look for new support at .0000194 on way to .0000145.” Fate Tied to That of Bitcoin Fortunately (or unfortunately), XRP’s fate is somewhat tied to that of Bitcoin. This sentiment is confirmed by correlation data shared by blockchain analytics firm Coin Metrics. Although not as strong as other altcoins, the Bitcoin-XRP 180-day correlation is at a healthy 0.8. That’s to say, should BTC enter a full-blown bull market, the altcoin is likely to see a recovery. The opposite is also true, meaning Bitcoin retracing from here could spell disaster for the altcoin. Featured Image from Shutterstock Price tags: xrpusd, xrpbtc Charts from TradingView.com XRP Has Just Broken Past a Crucial Downtrend, But Don't Bet on a Rally
Originally from Bitcoinist.com https://ift.tt/2BGyCUx
Bitcoin’s price action has quickly become unbearable for many traders.
As NewsBTC has reported extensively over recent days, the crypto market has come to an absolute standstill.
In the past week, the cryptocurrency has traded in a right 5.5% range, with bulls and bears not even attempting to break out of the consolidation. Stepping back, the lack of volatility is further accentuated; For nearly nine weeks now, Bitcoin has traded in the range between $8,500 and $10,000.
Recent volatility analyses, however, have suggested an imminent breakout for BTC.
A Massive Bitcoin Move Is Coming
As reported by NewsBTC, the recent consolidation has resulted in Bitcoin’s historical volatility index reaching lows not seen since March/April of 2019.
For those that don’t remember, here’s a reminder of what happened then: after consolidating around $3,000-4,000 for four months, Bitcoin rocketed $1,000 in a single day. This move — likened to “fireworks” by investors — kickstarted a BTC bull run that sent the asset to $14,000.
That’s to say, Bitcoin moved 25% in a single day last time the crypto market was this non-volatile.
Bitcoin Historical Volatility Index, one-day chart, BitMEX chart from "XC" (@Runtheirstops on Twitter). Chart from TradingView.com
As Investopedia describes, the implied volatility of an asset is “the market’s forecast of a likely movement in a security’s price.” IV is most often derived through options trading.
The important takeaway with this data is, periods of extremely low volatility often precede Bitcoin breakouts of macro importance.
How Can One Trade It
With Bitcoin coiling for a breakout, traders may be wondering how they can benefit from the impending volatility. While there is a multitude of ways traders can do so, but here are two easily accessible to most cryptocurrency holders:
Disclaimer: Readers of this article should use/trade financial products, assets, or platforms mentioned in this article at their own risk. This author and NewsBTC are not liable for any losses incurred while using the financial products or assets mentioned in this article.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Here Are 3 Ways to Benefit From Impending Bitcoin Volatility
Bitcoin has seen some of the most boring price action it has witnessed in over a year.
After ranging between $9,000 and $10,000 for over two months, the cryptocurrency has now narrowed its trading range to between $9,000 and $9,300, with BTC primarily just hovering around $9,100.
The benchmark digital asset is showing few signs of breaking this trend anytime soon, but one analyst does believe that this could mark the “calm before the storm.”
He claims that this bout of sideways trading is likely to resolve in a massive movement, and notes that he is leaning towards believing that the next move will favor sellers.
Over the past several days, the crypto has remained caught beneath a crucial cloud formation. This indicates that further downside could be imminent in the days and weeks ahead.
Another trader believes that a continued bout of trading beneath its cloud resistance could lead BTC to as low as $7,800.
Bitcoin Extends Rangebound Trading Bout as Technical Outlook Weakens
At the time of writing, Bitcoin is trading down marginally at its current price of $9,060.
This marks only a slight decline from where the cryptocurrency has been trading at over the past few days, as buyers have been ardently guarding against a dip below $9,000.
Although it has yet to post a sustained decline beneath this level, the cryptocurrency’s reactions to its support in the upper-$8,000 region are growing weaker with each visit.
This is likely the result of the dwindling trading volume and could be a grim sign for BTC’s near-term outlook.
Periods of intense sideways trading coupled with declining trading volume don’t tend to last for too long, and they are usually followed by explosive movements.
This next movement may favor sellers, as the cryptocurrency has been trading beneath its 4-hour cloud resistance for an extended period of time.
One analyst spoke about this in a recent tweet, while offering a chart showing that the $7,800 resistance was never re-tested as support – signaling a movement to this level may be imminent.
Image Courtesy of Teddy. Chart via TradingView.
BTC Could Be Witnessing The “Calm Before the Storm”
Another well-respected trader recently mused the possibility that this ongoing bout of sideways trading could be the “calm before the storm” that ultimately results in Bitcoin making a massive movement.
He notes that the low volume and tight trading range are conducive to this possibility.
It is unlikely that this next Bitcoin movement will occur during the weekend, but it could come about as soon as this week.
Featured image from Shutterstock. Chart from TradingView.
There’s no doubt that Bitcoin’s price action has been weird over recent weeks. As the S&P 500 has entered a range, so too has the cryptocurrency. In the past week, BTC has literally traded in a 5% range. And over the past two months, the asset has been stuck in a 15% range. Although this seems to be the first time Bitcoin has traded like this in a while, some are likening the recent price action to 2020’s February highs. Similarities Between Bitcoin’s 2020 Highs And Now Grow On July 4th, a pseudonymous cryptocurrency trader noted that Bitcoin’s recent price action is more harrowing than it may initially seem. Commenting on the chart he shared below, the analyst wrote: “It’s going to be so hard for a lot of you.” As is depicted, Bitcoin’s rally in February and the rally seen recently have both formed rounded highs. More importantly, they formed these highs around the exact same level: $10,500. Should history repeat itself, the leading cryptocurrency could soon be subject to a strong breakdown. The analyst didn’t convey an exact price target, but he did include Fibonacci Retracements of the move from $3,700 to $10,500. The nearest retracement level is the 38.2% retracement at $7,919 and the one closest to that is the 50% retracement at $7,146. This isn’t the only similarity analysts have observed between the highs then and the highs now. As reported by Bitcoinist previously, an Ichimoku Cloud specialist shared that from the perspective of the cloud, Bitcoin is in a very similar spot now to February. Just look at the analyst’s annotations. They show that the bearish Ichimoku Cloud signals that formed before Bitcoin’s crash in March are returning. Bitcoin chart from IchimokuScholar. Chart from TradingView.com Crucial Differences Despite the similarities, there are some crucial differences worth pointing out. Analyst Eric Thies remarked that taking note of time, if Bitcoin tops here, it will be highly abnormal. He published the chart below late in June. It shows that all of Bitcoin’s tops over the past approximately two years have formed in around a month’s time. The current top, by comparison, is reaching 60-70 days: “BTC stucturally looking less like a local top and more like a launchpad as of now. Naturally speaking, things may need to go down before they really go up but this time looks promisingly different.” Bitcoin “top” analysis by Eric Thies (@KingThies on Twitter). Chart from TradingView.com Bitazu Capital’s Mohit Sorout has also noted there are stark differences between then and now. He noted that unlike all of Bitcoin’s major highs over the past year, the funding rates of BTC futures markets are currently negative to neutral. This is important as it shows that longs are not overleveraged, meaning Bitcoin has room to rally to the upside. Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin's Chart Is Looking More and More Like February's $10,500 Top
Originally from Bitcoinist.com https://ift.tt/3izTAFw
Cardano (ADA) has been one of the best performing top altcoins seen throughout 2020, only trailing the gains posted by Chainlink and Tezos The crypto has been seeing heightened momentum in recent weeks due to the launch of the highly anticipated Shelley mainnet upgrade This update’s rollout coupled with a few positive news developments have bolstered its buyers Despite showing signs of overt strength, ADA is currently pushing up against a significant resistance level This has caused it to flash some warning signs that are leading some analysts to grow increasingly cautious on its near-term outlook Cardano (ADA) has posted an intense rally independent of the aggregated cryptocurrency market over the past few weeks. This rally hasn’t been unwarranted either, as the release of the long-awaited and much-delayed Shelley mainnet has been fanning the flames guiding the cryptocurrency’s recent uptrend. Cardano now appears to be navigating into a massive resistance region that has been holding strong for the past couple of days. If buyers are unable to surmount this resistance, it could confirm a few bearish signs that analysts have been watching – indicating that a retrace could be imminent. Cardano Navigates into Heavy Resistance Following News-Based Rally At the time of writing, Cardano is trading up nearly 4% at its current price of $0.10. From a weekly perspective, this marks a massive climb from a low of $0.08 that was set just a few days ago and an even larger climb from its June 27th low of $0.075. The cryptocurrency has been trending higher over the past few months, posting consistent gains despite Bitcoin’s multi-month bout of sideways trading. BTC began consolidating between $9,000 and $10,000 in early May, at which point Cardano was trading at under $0.05. From here, ADA slowly climbed higher until it incurred parabolic momentum in late-May. It now appears to be facing some heavy resistance at just above its current price level, which is a price region that analysts have been watching for quite some time. Because this is a news-driven rally, fueled by the Shelley mainnet rollout and the imminent addition of ADA staking capabilities to Coinbase Custody, it is possible that it will prove to be more sustainable than hype-induced movements. ADA Flashes Some Bearish Divergences as Analysts Grow Cautious From a technical standpoint, analysts are growing cautious about where Cardano trends next. One trader explained that he isn’t quite ready to “fade” ADA despite it posting some bearish divergences due to its underlying strength, but he is closely watching its reaction to its current resistance. “There are some HTF bear divs developing but I wouldn’t fade coins that showed multi-week strength. Take profits, don’t blindly short alts just because they kept on dying the last 2 years,” he said while pointing to the chart seen below. Image Courtesy of Crypto Rangutang. Chart via TradingView. Unless IOHK – Cardano’s parent company – releases more positive news in the week ahead, ADA’s parabolic rally may begin slowing. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2BtflpL
There’s been much debate over recent weeks over the work of Bitcoin analyst “PlanB” and his Stock to Flow (S2F) model. Some have argued that his work is valid while others aren’t so sure.
On July 3rd, the analyst put the community to a vote, asking whether or not they believe in the model. The results were almost split down the middle.
Almost Half of Respondents Don’t Believe in S2F Bitcoin Price Model
On July 3rd, the pseudonymous quantitative analyst posted a poll to his Twitter page, followed by over 115,000 individuals.
The question: Do you think Bitcoin will reach $288,000 before Dec. 2021, $100,000 before December 2021, $55,000 before December 2021, or will BTC stay below $55,000?
The prices mentioned were derived from the iterations of the S2F model. The iterations of the model will become invalidated if BTC does not reach the prices mentioned by December 2021.
Over 42.5% of respondents to PlanB’s impromptu poll said they don’t think Bitcoin will pass $55,000 before that time. Though the rest of the respondents, 57.5%, said that a move past $55,000 is possible within the next 18 months.
The mixed readings the community has on the model comes as some have become more critical of PlanB’s work.
Nico Cordeiro, the CIO of crypto fund Strix Levithan, released a report last week attempting to debunk the model. The report is entitled “A Chameleon Model – Why Bitcoin’s Stock-to-flow Model is Fatally Flawed.”
It suggests that because the model predicts a Bitcoin price in excess of $200 million per coin, it is logical. Cordeiro also noted that he doesn’t see any evidence suggesting the S2F ratio of gold has affected its price over history.
Economist Alex Krüger has echoed the skepticism, writing earlier this year:
PlanB Has Prominent Supporters
Although there are some skeptics, PlanB still has support from some corners of the Bitcoin space.
Bitcoin educator/programmer Jimmy Song wrote the following message on July 2nd. The premise of it is that it’s well too soon to deem the model valid or invalid:
The Keiser Report co-host Max Keiser has echoed the sentiment. The prominent investor said that he thinks the arguments attempting to “debunk” the S2F model are simply “random word-salads by attention seekers.”
“S2F is a valid and vital analysis of the Bitcoin price,” Keiser added, presumably referencing the lack of proper valuation models.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Nearly Half of Crypto Twitter Doesn't Think Bitcoin Will Hit $50k in 2021
As Bitcoin continues its range-bound trading phase, traders are placing their bets on which direction it will trend next This consolidation has caused the cryptocurrency’s volatility to plunge to lows not seen in over a year It is unlikely that this trend will last for too much longer, as extended bouts of sideways trading are typically followed by massive movements One technical pattern that is strikingly similar to that seen in 2019 is now suggesting that Bitcoin could be positioned to see notable downside in the coming weeks This comes as one analyst notes that it is “do or die” time for Bitcoin Bitcoin and the aggregated cryptocurrency market have struggled to garner any clear momentum in recent times. This is primarily due to the benchmark cryptocurrency’s multi-month bout of sideways trading that it has been caught within since May. As for where the cryptocurrency could trend next, it does appear that the signs are all pointing in favor of sellers. In addition to being unable to surmount a crucial level that it was rejected yesterday, the crypto has now dipped below $9,000 on multiple occasions without any ardent response from buyers. One technical pattern similar to that seen in June of 2019 also spells trouble for what could come next. Bitcoin Fails to Bounce After Posting Rejection at a “Bounce or Die” Level At the time of writing, Bitcoin is trading up marginally at its current price of $9,100. The crypto has been trading at this level for the past few days. Earlier this week, buyers attempted to catalyze some momentum that led it to $9,300 before it faced a harsh rejection. As Bitcoinist reported yesterday, the rejection at $9,300 coincided with a rejection at the crypto’s 200-day EMA. As cited in the report, one analyst noted that it is now a “bounce or die” moment for BTC. “4h was rejected from resistance of cloud (200 ema). Now resting on 21ema – bounce or die.” Image courtesy of Teddy. Chart via TradingView. It has maintained above its 21-day EMA in the time since but has yet to post any bullish reaction to this support. This Pattern from 2019 Spells Trouble for BTC In the summer of 2019, when Bitcoin posted its intense rally to highs of nearly $14,000, it formed a distribution pattern that ultimately resulted in its price entering a yearlong downtrend. This decline eventually led it to lows of $3,800 this past March. One analyst is now noting that there is a striking correlation between the distribution pattern seen last year and that being formed presently. “90 day distribution at $10k – $13k vs 60 day current range for BTC,” he said while pointing to the below chart. Image courtesy of Cold Blooded Shiller. Chart via TradingView. If this pattern plays out as it did last summer, the crypto could soon see some significant losses. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3ipAwtk
It’s been a tough past few weeks for the Bitcoin market. Some are skeptical that the cryptocurrency is in a bull trend after BTC has sustained multiple rejections at $10,000.
Yet a trader that nailed a bold prediction remains optimistic, sharing a number of signals indicating imminent upside.
Bitcoin Could Soon See a Bounce, Says Crypto Trader
In March, Bitcoin plunged from the $9,000s to $3,700 in the matter of a week. Considering the severity of the drop, coupled with a collapse in the traditional economy, few expected a rebound.
One analyst, however, was optimistic. Literally hours after BTC tapped $3,700, a trader shared the image below. It shows that the trader believed the bottom was in. He later shared another chart depicting his expectations that there will be a “V-shaped reversal” taking Bitcoin back to $10,000 by May.
Chart by @BTC_JackSparrow (Twitter handle), from TradingView.com
This came true almost to a T, with BTC flirting with $10,000 in May and June.
Despite the recent stagnation, the same analyst remains bullish.
On June 22nd, the analyst speculated that Bitcoin is actually in a textbook Wyckoff Re-Accumulation rather than a Wyckoff Distribution. Re-accumulation patterns are seen in the middle of an uptrend while distribution patterns are formed at the top of bull trends.
Bitcoin will trade above $11,000 within the next two weeks, according to the analyst’s interpretation of the chart.
Chart by @BTC_JackSparrow (Twitter handle), from TradingView.com
More recently, he asserted that there’s a good likelihood Bitcoin will undergo an “inverse $6,000 capitulation” if BTC holds $10,000. Such a move could take the cryptocurrency to the $14,000-16,000 range, his charts suggest.
The “$6,000 capitulation” mentioned by the analyst was in late 2018, when BTC plunged from $6,000 to $3,000 after ranging for months.
Bloomberg’s Mike McGlone Agrees
Bloomberg Intelligence’s senior commodity strategist Mike McGlone agrees with the assessment put forth above.
The analyst wrote in Bloomberg’s July Crypto Outlook that the increase in the usage of Bitcoin implies a move to higher prices:
McGlone specifically identified $12,734, which is the highest end-of-day high of 2019.
This comes after he said in June that “something needs to go really wrong for BTC not to appreciate.”
Core to this assertion is a number of trends, which include Bitcoin’s block reward halving, decreasing market volatility suggestive of institutional adoption, and a correlation with gold.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Predicted Bitcoin's V-Shaped Reversal at $3,700 Is Bullish
Ethereum has been consolidating over the past few days within the $220 region.
Although on the surface its price structure seems similar to that of Bitcoin and its peers, it is important to note that it is currently stuck beneath its long-held trading range between $230 and $250.
Its sustained bout of trading below this range is a grim sign, but analysts are noting that the crypto has remained above a couple of crucial technical levels.
The ability to remain above these levels has led one analyst to set his sights on a movement to $480 in the months ahead.
He isn’t alone in this target either, as another respected trader offered a similar outlook, noting that whether or not this comes to fruition will depend on whether it can remain above $210.
Ethereum Consolidates Beneath Long-Held Trading Range
At the time of writing, Ethereum is trading up marginally at its current price of $227. The crypto has been trading here for the past several days, unable to garner any clear momentum.
Earlier this week, buyers did attempt to break this consolidation phase when they sent ETH to highs of just over $230, but the selling pressure here proved to be significant.
The reason why $230 is a crucial level is due to it being the lower boundary of a trading range that has been formed over the past two months.
Although Bitcoin has been able to remain firmly within its trading range between $9,000 and $10,000 in recent weeks, Ethereum’s buyers have seen waning support as of late.
In spite of this, one popular pseudonymous trader does believe that Ethereum remains technically strong as long as it trades above $210.
He notes that a continued defense of this level could help spark an uptrend that ultimately leads it to $350 this year and $500 next year.
Image Courtesy of Cactus. Chart via TradingView.
ETH Holds Above 2 Crucial Technical Levels; Opening the Gates for Massive Upside
Another analyst offered a similar price target for Ethereum, noting it could soon rally towards $480.
He justified this by explaining that ETH is currently consolidating above its 100-day and 200-day moving averages – which is a historically bullish occurrence.
Image Courtesy of Crypto Michael. Chart via TradingView.
Unless the aggregated market nosedives in the near-term, it is probable that Ethereum will continue trading above these crucial levels.
Featured image from Shutterstock. Charts from TradingView.
GPay Limited, which traded as XtraderFX (formerly CryptoPoint) has been shut down by UK authorities following investigations into its practices.
The firm has been on the radar of the Financial Conduct Authority for over two years. But a High Court hearing, before Deputy Insolvency & Companies Court Judge Baister, finally forced it to close last week.
Investigators discovered that at least 108 victims had lost £1.5 million in total, as a result of using the online crypto trading platform.
The URL address www.xtraderfx.com now leads to a secure connection failed screen.
XtraderFX homepage. (Source: 55brokers.com)
Users became suspicious when asked to submit copies of their photo ID, a utility bill, and a debit/credit card, following a withdrawal request.
While this is a standard industry practice, especially from reputable crypto exchanges with close ties to regulators, users usually deal with KYC and AML requirements on sign up.
David Hill, Chief Investigator for the Insolvency Service, said the crypto exchange operated by GPay was entirely a scam. With that, Hill stressed the importance of conducting suitable checks on any trading platform, especially when large sums of money are involved.
Scam Crypto Exchange Used Facebook to Bait Victims
The XtraderFX crypto trading platform had used social media adverts to lure rookie traders who were looking to get rich quick.
The adverts used by XtraderFX featured images and the name of Martin Lewis of moneysavingexpert.com – a consumer champion in the world of UK finance.
Lewis raised the issue with Facebook when he first became aware of the fraud back in 2018. But a lack of action on their part forced Lewis to launch court proceedings against the social media giant on the grounds of defamation.
Lewis claimed that over 1,000 scam adverts, featuring his image or name, had appeared on the social media platform, even after he had informed them of the problem.
The matter was settled by an agreement to withdraw legal action if Facebook donated £3 million to Citizens Advice as part of their initiative to deliver a new UK Scams Action project.
Facebook also agreed to launch a new UK specific scam reporting tool manned by a dedicated team.
With regard to XtraderFX’s forced insolvency, Lewis had mixed feelings about the ordeal. Nonetheless, he explained why he choose to sue Facebook, rather than XtraderFX directly.
What’s more, similar to Hill’s advice, Lewis stated that scam adverts often appear on legit websites and even in broadsheet newspapers. With that, individuals need to be more skeptical.
Featured Image from Shutterstock
Ethereum has remained stuck beneath its crucial near-term resistance level at $230 The crypto has been ranging sideways alongside Bitcoin and many of its peers, but it has been unable to remain within its long-held trading range The break below this range appears to be a grim sign for the crypto Where it trends next could largely depend on how it reacts to a crucial level that it is trading 10% above Holding above this level is crucial for the cryptocurrency’s macro structure Ethereum has continued trading in close tandem to Bitcoin – leading it to see an incredibly tight bout of consolidation as its buyers and sellers reach an impasse. As for which direction it will trend next, it does appear that this could depend largely on its reaction to a crucial level that sits in the lower-$200 region. One analyst is noting that a maintained defense of $210 could be enough to allow ETH to garner some significant upwards momentum. He even notes that this momentum could lead the crypto up towards $350 in the near-term. There is one grim technical factor that seems to suggest a test of this level is imminent. Ethereum Consolidates Beneath Crucial Trading Range Following “Death Cross” Emergence At the time of writing, Ethereum is trading up marginally at its current price of $227. The crypto has been hovering around this price level for many days now, struggling to recapture its position within its long-held trading range. Analysts are now noting that ETH could be technically weak and see a decline independent of Bitcoin. One factor supporting this notion is the recent emergence of a dreaded “death cross” – the likes of which have not been seen since last March. Bitcoinist reported about this pattern earlier this week, citing an analyst who said: “Confirmed, death cross here as well – didn’t happen since March.” Image Courtesy of Teddy. Chart via TradingView. Death crosses like this tend to be trailing indicators that point to underlying weakness. Analyst: $210 is a Crucial Level that ETH Buyers Must Defend The weakness that helped shape this death cross could lead Ethereum down towards its critical high time frame support at $210. One analyst believes that the reaction to this level will determine the crypto’s future. “ETH aiming for $350 this year in my opinion… As long as we hold $210 this is still valid. Thinking we flip $350 and see $500 taken out next year,” he said. Image Courtesy of Cactus. Chart via TradingView. Despite his bullish sentiment, it is essential to note that a break below this level could have grave consequences, potentially throwing Ethereum into an intense downtrend. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2D8NADl
The Bitcoin Stock to Flow (S2F) model created by the pseudonymous analyst “PlanB” has been a controversial subject over the past year. A majority of cryptocurrency investors on Twitter seemingly believe in the model, though it’s increasingly come under fire.
Debate about PlanB’s work has come to a head over the past few days as prominent commentators have chimed in.
What Is the Stock to Flow Model?
The S2F model is an econometric formula released by PlanB in March of 2019. The pseudonymous analyst is a Dutch institutional investor that manages a multi-billion balance sheet, though he moonlights as a Bitcoin proponent.
PlanB’s analysis suggests that the value of Bitcoin and other precious goods, namely gold and silver, can be valued by their scarcity. The image below is the model’s first iteration.
BTC S2F model (first iteration) by analyst "PlanB" (@100trillionusd on Twitter).
The model predicts that after 2020’s block reward halving, BTC will rise to a market capitalization of $1 trillion. That corresponds with approximately $55,000 per coin.
It has since been updated with a new regression formula that suggests Bitcoin will reach $100,000 in 2020 or 2021.
PlanB’s updated iteration of the model has a high R squared value of ~95% and is purportedly “cointegrated” with BTC’s price. Statistics lingo aside, the S2F model’s proponents say that this is a confirmation that the model has credence.
Not everyone thinks that’s the case, unfortunately for BTC bulls.
Some Bitcoin Proponents Call Out Criticism
The S2F model has recently been supported by a number of Bitcoiners.
Bitcoin educator/programmer Jimmy Song wrote the following message on July 2nd, arguing that it is well too soon to “dunk” on the model:
The Keiser Report co-host Max Keiser, one of BTC’s earliest public bulls, agreed with the sentiment put forth by Song.
He said that the arguments “‘debunking'” the S2F model “appear to be just random word-salads by attention seekers.” Keiser added that he thinks the model is a “valid and vital analysis” that gives “excellent insight” into Bitcoin.
Keiser’s and Song’s statements of support for the econometric model come as it has come under fire from a few angles.
Namely, Nico Cordeiro, the CIO of Strix Levithan, released a report entitled “A Chameleon Model – Why Bitcoin’s Stock-to-flow Model is Fatally Flawed.”
The investor said that gold hasn’t been correlated with its S2F ratio over the past decade. Cordeiro added that he thinks the model is illogical due to it predicting $200 million by 2045.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Sparks Fly as Critics Question BTC Model Predicting $100,000 by 2021
Despite it having a strong fundamental premise, Bitcoin’s Lightning Network has yet to see the adoption that its proponents hoped would happen.
According to Lightning data provider 1ML, there is only $9 million worth of BTC locked in the network. There are also only 13,000 Lightning nodes, which, while many more than last year, is not yet signaling mainstream adoption.
Yet a product was launched yesterday that changes the Lightning Network’s trajectory for the better.
Bitcoin Lightning Network Gets Boost With New “Strike” App
If you’ve been following the Lightning Network’s development for a while now, you’ve likely heard the names “Jack Mallers” and “Strike” mentioned a few times.
Mallers is a prominent developer and entrepreneur in the Bitcoin space. And Strike is his latest project — a BTC wallet focused on allowing regular people to use the cryptocurrency and the Lightning Network.
On July 2nd, Strike finally went into public beta, launching for iOS, Android, and Chrome.
In Mallers’ words, Strike is a service allowing “anyone in the world to interact with the Bitcoin and Lightning Network protocols using only a bank account and/or debit card.”
It removes the abstract elements of using the Lightning Network, like nodes, seeds, and channels, and replaces it with an app.
Mallers hopes that this product will help “usher in an era of Bitcoin that we believe can achieve our goal of true mainstream adoption.”
Community Celebrates The Move
Many in the Bitcoin space have been quick to celebrate the new product, which is the first public-facing application that gives consumers a chance to use Lightning.
Kraken’s Dan Held, a former executive at Blockchain and former employee at Uber, wrote:
Blockstream CSO Samson Mow echoed the optimism, writing in response to a tweet from Mallers: “the teams that focus on user experience will win over the next billion Bitcoin users.”
Notably, Strike isn’t the only product looking to make the Lightning Network a more mainstream technology.
Square’s crypto division earlier this year released the Lightning Development Kit (LDK).
It is like a traditional software development kit (SDK) but one suited for the Lightning Network. The LDK will allow for:
Featured Image from Shutterstock Bitcoin Community Celebrates as Crucial Lightning Network Project Launches
Bitcoin’s range-bound trading is showing no signs of letting up as the crypto continues trading sideways within the lower-$9,000 region It does appear to be laying the groundwork to make a massive movement Data suggests that this movement could be imminent in the days ahead, potentially setting the tone for which direction it trends next There are a few other factors that are likely to influence its near-term price action as well One analyst notes that the direction BTC trends after making this big movement will signal “real direction” Bitcoin and the aggregated cryptocurrency market have been caught within an extended bout of sideways trading throughout the past several days and weeks, struggling to garner any clear momentum. This trading range first began establishing itself at the start of May, and in the time since BTC has primarily ranged between $9,000 and $10,000. On a few brief occasions, the crypto has broken both above and below this trading range, hitting highs of $10,500 and lows of $8,500. Which direction it trends next may depend on a few vital factors that one analyst is closely watching. He indicates that the next move Bitcoin makes will provide it with a “real direction.” Bitcoin Volatility Levels Hit a One Year Low At the time of writing, Bitcoin is trading up marginally at its current price of $9,100. This is around the price point at which the crypto has been trading for the past couple of weeks. Yesterday, sellers did try to force BTC below the lower boundary of its long-established trading range, causing it to dip as low as $8,950. This breakdown was short-lived, however, as the selling pressure was quickly absorbed by buyers. This price action – just like all that seen over the past two months – has caused Bitcoin’s volatility levels to dive. According to data from analytics platform Skew, they just reached lows not seen in over a year. “BTC 1mth ATM Implied Vol reaches a 1Y+ low at ~46%.” Image Courtesy of Skew. These bouts of extremely low volatility usually don’t last for long, meaning that Bitcoin could be positioned to make a massive movement in the days and weeks ahead. Volume Trend Reaches the “End of the Line” as Analysts Expect Volatility One popular cryptocurrency analyst on Twitter explained in a recent tweet that he is closely watching a few crucial factors for insight into which direction Bitcoin will trend next. He points to the crypto’s declining volume trend reaching the “end of the line” as well as a few other factors. “Volume trend reaching end of the line. All closes outside local ranges were fakeouts. Watch for this behaviour to break – good odds it’ll signal real direction. Local unconfirmed (skewed) iHS neckline lines up with diag resistance from ATH to now.” Image Courtesy of Bitcoin Jack. Chart via TradingView. Once its volume begins picking up, it will likely translate into volatility. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3iwKWrk
The global crypto spot exchange and derivatives trading platform, OKEx has taken its partnership with one of the trusted crypto derivatives market data platform Skew to the next level. According to a recent announcement by OKEx, it will be adding ten new advanced charts featuring in-depth metrics to its dashboard on the skew platform.
Leaders in their respective spaces, OKEx and skew joined hands a couple of months ago. As a part of the collaboration, OKEx became the first trading platform to create its own dashboard using the newly launched skewAnalytics Hosting Service. It allowed over 750 leading market participants to access dedicated real-time trading information with a complete breakdown of BTC and ETH Futures and Swaps and BTC Options from the OKEx platform.
The latest phase will witness the inclusion of additional charts into the skew dashboard which includes BTC Futures Aggregated Open Interest, BTC Perpetual Swap Price vs Spot, BTC Options Volumes & Open Interest, BTC Options OI by Strike and BTC Options OI by Expiry. The implementation of advanced charts and more in-depth metrics add to the platform’s transparency as OKEx makes its products accessible to a wider audience of both retail and novice traders. Institutional and professional traders also stand to benefit from the added transparency as they can make use of the data to device more efficient trading strategies.
OKEx has also created a complimentary guide to highlight and explain some of the new charts available on skew.
The Director of Financial Markets at OKEx, Lennix Lai offered his comments on the new development said, “We hope to provide even greater transparency for users through this second phase with skew. That also means helping traders understand how to interpret sometimes complex charts and how to use the information to execute better trades. The guide will show users how to read and interpret some of the new OKEx charts on skew since they can be daunting at first and are typically left for advanced users.”
With OKEx constantly working on bettering its offering for the trading community, more feature additions to its exclusive skew dashboard can be expected in the coming days.
XRP price has struggled throughout the last two years of the bear market. It has ranked amongst the worst performing altcoins, despite trailing right behind Bitcoin and Ethereum in market cap.
Investors may have finally given up on the asset and are capitulating. It’s not uncommon to see former supporters now referring to the asset as a “shitcoin.” But what is unusual, is the fact that the cryptocurrency price chart almost exactly matches that of sheep manure.
Cryptocurrency Price Chart Matches Sheep Manure
The commodities market is filled with agricultural and other production-based products and byproducts. It’s also literally filled with feces.
Just like soybean and corn trade in the commodities market, sheep manure used to fertilize crops on farms can be a steaming hot commodity.
Traders piled on the selling during the Black Thursday panic collapse, flushing away any prior gains. The stock market and crypto also saw similar drops and V-shaped recoveries over the last several weeks.
Related Reading | XRP Tanks Compared To Crypto Counterparts Bitcoin And Ethereum, But Why?
Recent data shows that the cryptocurrency called Ripple, has underperformed Bitcoin and Ethereum significantly over the last 30 days
It’s difficult to say exactly what’s behind the poor performance, but it certainly stinks for XRP holders.
All puns aside, the cryptocurrency’s recent price action strangely mimics the price chart of sheep manure.
Legendary commodities trader Peter Brandt first shared the sheep manure chart on Twitter, however, it closely resembles XRPUSD price action.
Ripple XRPUSD Sheep Mature Fractal | Source: TradingView
Sheepish Investors Capitulate Right Into XRP Whale Wallets
XRP and other crypto assets usually somewhat follow Bitcoin price action. But Ripple is showing extreme weakness even despite continued underperformance.
The asset was ranked among the worst-performing assets for the last two years in a row. It and XLM had especially negative bear market drawdowns following their peaks.
But even XLM has since recovered more so than XRP, leaving investors fed up. Ripple remains down by as much as 94% on the USD pair, and over 90% on the BTC pair.
Related Reading | Ripple Effect: Whales Buy Up A Sea of Small Fish Selling
XRPUSD and XRPBTC continue to crash, and the selling could be the last wave of small-time holders capitulating. While this happens, data shows whales are absorbing all of this selling.
Blockchain data indicates that the largest wallets are growing as prices further tank. This data could suggest that large scale accumulation is taking place ahead of a longer-term recovery.
For now, the asset’s price action continues to both literally and figuratively look like crap.
The global crisis is causing an explosive increase in demand for stablecoins. Some even say that it's stablecoins that will drive the mass adoption of crypto, not hypervolatile coins like Bitcoin. It's time to ask the question: which stablecoins will benefit more from the recession – regular ones, such as USDT, or decentralized ones, like DAI and others?
Bitcoin is far less popular now than it was in its heyday, when the world’s leading cryptocurrency was regularly dominating international headlines and leading newcomers into the burgeoning crypto-marketplace. After it caught on like wildfire amongst non-traditional investors, the Bitcoin hype also generated a slew of headlines and controversies surrounding the immense amount of energy that’s needed to mine - or generate - new tokens. These days, that controversy has largely died down, but many people still wonder if Bitcoin mining still presents a serious new global warming problem.
Decentralized finance has become the talk of the cryptocurrency market in 2020. The most recent buzz phrase surrounded in hype is “yield-farming,” and at the center of it, a DeFi token called Compound (COMP).
But what exactly is Compound and yield-farming, and if it’s such a hot topic, then why is one options trader so bearish on the token?
What is Yield-Farming? Learn About The Latest Craze in Decentralized Finance
It was the DeFi craze of late 2019 that helped the cryptocurrency market find a bottom. From the start of 2020 to around mid-Feb, Bitcoin rallied, bringing the rest of the market with it.
Ethereum outperformed the leading cryptocurrency by market cap, namely due to the growing amount of ETH locked up in decentralized finance applications.
Investors feverishly buying up the Ethereum supply to lock it away in applications caused the asset to grow over 100% before Black Thursday erased all gains.
While prices have not returned to previous highs, the frenzy around DeFi certainly has.
Related Reading | Fund Manager: DeFi Will Propel Ethereum To $1 Trillion Market Cap
But Ethereum isn’t taking the center stage anymore. Tokens living on its protocol aimed at different forms of DeFi have stolen the limelight. In particular, Compound (COMP) has become the hottest cryptocurrency token around.
When it comes to DeFi, Compound in less than month captured a lion’s share of the market share, even beating out Maker and other top DeFi altcoins.
Compound can be used for something called yield-farming. It’s a new trend taking crypto by storm. Yield-farming leveraging a DeFi product or service to farm interest rewards by lending out other crypto tokens. In one example, someone was able to earn 45% APY by leveraging their Basic Attention Tokens using Compound.
Not only did Compound spike, but so did many of the assets that can be used to leverage for yield farming also saw rallies recently.
Why Is This Options Trader Shorting Compound, The Hottest Crypto Token Going?
So why then, if there’s so much buzz surrounding not only DeFi, but Compound and yield-farming, is one options trader so bearish?
For one, what goes up, must come down. And Compound has enjoyed explosive gains since first being listed on Coinbase last month. Listings of this kind don’t normally have much impact these days, but occasionally it leads to a pump.
The initial buzz wearing off could lead to a short-term pullback for indicators to reset. But this options trader is preparing to “short” Compound due to confusing “governance” fundamentals.
Compound COMPUSD 4H | Source: TradingView
His reasoning is that the token’s underlying protocol is an AUM business, which stands for assets under management. Because the asset’s market cap is at $2 billion and $1 billion of it is assets under management, the trader says the fair market value of the asset is much less.
COMPUSD is currently trading at $180, after trading nearly $100 higher just a week ago. This options trader says, however, the fair market value is closer to $50, and the asset is due for a steep drop.
DeFi-related tokens have been caught within an intense bull market over the past several weeks, with many posting 100%+ gains This growth has been fueled by return-hungry investors looking to take advantage of “yield farming” This trend isn’t fading as fast as some analysts expected and could continue strong in the months ahead Although built upon Ethereum, the DeFi sectors growth hasn’t boosted ETH’s price One prominent investor doesn’t believe it will ever become the main driver of Ethereum’s price action Despite many calling DeFi a “bubble” that would quickly pop, the trend has shown few signs of faltering. It has driven a massive influx of new users to Ethereum and is looked upon as a legitimate use case for crypto. Much to the chagrin of many ETH investors, this sector’s growth has not yet benefited ETH’s price. There are a number of theories for why this could be the case, and some traders have speculated that the collapse of DeFi will actually be what helps guide the crypto higher. One prominent investor is now explaining that there are three likely reasons for why this is the case, and for why decentralized finance may never become an ETH price driver. Ethereum Continues Consolidating as DeFi-Related Tokens Explode At the time of writing, Ethereum is trading up slightly at its current price of $230. This is around where it has been trading for the past couple of weeks. The crypto has been ranging sideways alongside Bitcoin for well over a month now. It has formed a range between $230 and $250, not being able to garner a clear trend. Despite this, the DeFi sector – which is largely built upon Ethereum – has been seeing massive growth. It has even caused the number of daily ETH transactions to surpass 1 million for the first time since the late-2017 bull market. According to data from DeFi Pulse, there is now a total of $1.7 billion locked within DeFi smart contracts. This is three times the number seen in March of this year. Image Courtesy of DeFi Pulse Three Reasons Why DeFi Won’t Drive Value to ETH One prominent investor and former Goldman Sachs partner recently explained that there are three primary reasons why Ethereum hasn’t rallied alongside DeFi-related tokens. He notes that the first reason may simply be due to investors preferring direct exposure to the tokens. The second reason could be due to the introduction of alternative collaterals, making it non-essential to buy ETH to participate in DeFi lending. The final factor may come from uncertainty surrounding whether the looming Ethereum 2.0 transition will break its composability – which he says is “crucial to DeFi.” As for what could drive value to the crypto, he points to developments related to ETH2.0 and EIP-1559 progress: “That is not to say that ETH is not a good investment, but it seems the drivers for ETH are more related to ETH2.0 and EIP-1559 progress than direct correlation with DeFi. So if you want DeFi exposure the perp or individual tokens are a better bet.” Featured image from Shutterstock.
Originally from Bitcoinist.com https://ift.tt/3dTMB6w
Bitcoin and the aggregated crypto market have once again extended their multi-week bout of sideways trading The benchmark digital asset has continued trading sideways in the lower-$9,000 region, with most altcoin’s closely tracking its price action This may not last for too much longer, however, as one trend seems to indicate that BTC is gearing up to make a large movement in the coming one or two days As for whether this movement will favor buyers or sellers, one top trader is noting that the bull case is not compelling and that further downside may be inbound Earlier this week, Bitcoin attempted to garner some momentum as its price began moving up towards highs of $9,300. At the time, this led many analysts to believe that buyers were on the cusp of sparking a fresh trend that would help guide BTC back up towards its range highs. This was not the case, however, as it was quickly rejected at this level and has since continued trading sideways. One analyst does believe that volatility is imminent. He notes that it could come as soon as tomorrow, and premises this assumption based on Bitcoin’s rising open interest. Bears may be better situated to benefit from this next big move. Bitcoin’s Consolidation May Not Last for Too Much Longer; Here’s Why Bitcoin has been caught within its wide trading range for nearly two months now. Each attempt to break above or below its boundaries has been fleeting. This has made it incredibly unclear as to whether it is still caught within a mid-term uptrend, or if it is beginning to form a top. Some analysts have noted that BTC top formations are typically formed in sharp movements rather than long, drawn-out consolidation phases. The market may soon gain greater insight into the benchmark crypto’s current trend. One trader is pointing to a sudden rise in its open interest as a reason why volatility is imminent in the coming days. “OI is picking up again. I would say 1 or 2 more days and we see a big move,” he explained, pointing to a graph showing an uptick in BTC’s OI. Image Courtesy of Byzantine General. Data via Coinalyze Top Trader: BTC Bears Better Situated to Benefit from Next Movement One top pseudonymous trader is explaining that he believes the next Bitcoin movement will favor bears. He points to a weak volume profile and a striking distribution pattern as two factors that support this notion. “BTC: Struggling to see the case for reaccumulation as opposed to distribution. If there is one its very weak. Volume profile is quite telling throughout this whole range.” Which side of the trading range is broken next should offer significant insights into the state of Bitcoin’s mid-term trend. Featured image from Shutterstock.
Originally from Bitcoinist.com https://ift.tt/2BwCuaJ
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