Bitcoin price is at a critical moment in its market cycle. And although it’s been said dozens of times before, the next move could choose the trend direction for months to come.
At this very moment, the asset is testing a level that in the past, rejection has caused a 40% drop on average. Will the first-ever cryptocurrency make it though the key resistance, or will another 40% collapse follow?
Bollinger Bands May Hold the Key To Bitcoin Bull Run
Bitcoin price has been trading sideways for months now, reaching historic low levels of volatility. The price action is a stark contrast to the large peaks and troughs investors in the asset class is used to.
The wild price swings of the last year have now stagnated, suggesting a major move is coming.
Bollinger Band Width, a metric measuring volatility or a lack thereof, has plummeted to record low levels. In the past, these lows have resulted in a major break of volatility.
The last time volatility was this low, was prior to the 2019 Bitcoin rally that took the asset to $14,000.
Also according to past price action, the asset has been strongly rejected from the middle Bollinger Band line.
Bitcoin price is once again trading just beneath the middle line on the Bollinger Bands. In the past, rejection from this key resistance level has resulted in an average of 40% decline.
Bitcoin BTCUSD 3D Bollinger Bands | Source: TradingView
Mid-BB Retest on 3D BTCUSD Leads To 40% Decline on Average, Black Thursday Drop
According to the Bollinger Bands, a popular technical analysis indicator, a strong rejection could occur. Past rejections at this level, have resulted in an over 40% decline on average.
Even more frightening for Bitcoin investors, the asset rejecting at the mid-BB line on the 3-day timeframe the last time around, resulted in Black Thursday.
Bitcoin price collapsed by over 50% following that rejection, taking the rest of the crypto market down with it. It also kicked off a correlation with the stock market that hasn’t boded well for cryptocurrencies.
Another 40% rejection from here, would take Bitcoin price back to as low as $5,600, where support must hold.
Support holding there, would result in a higher low, and put the asset back on track towards an uptrend. However, if that support level cannot hold, and the rejection gets even more severe than Black Thursday, a new bear market low could be set.
Bollinger Bands are used in a variety of ways, but a break below or above the middle-band, an exponential moving average, can act as a powerful buy or sell signal.
The moving average can also act as support or resistance. If the middle Bollinger Band line holds strong as resistance, another drop in Bitcoin could be next.
Altcoins are blowing up across the crypto market, for the first time in what feels like forever. The rallies are reminiscent of the cryptocurrency bubble of 2017 and could be a sign that a new bull market is forming.
However, one analyst says that the current rally is mere “target practice,” for the full-scale bull run coming for altcoins in 2021.
Altcoins Finally Show Signs of Recovery Against Bitcoin
As Bitcoin took the world by storm with its surge to $20,000, investors flocked to altcoins trying to find the next big thing. Eager investors FOMOed into whatever shiny new crypto asset they could get their hands on.
New crypto assets were created by the day as the bubble grew in size. Investors pumped money into assets they didn’t understand, hoping to strike it rich.
And many did. As powerful as Bitcoin’s rally was, assets like Ethereum, XRP, and countless others pumped much more quickly and strongly.
50,000% returns weren’t uncommon over the course of 2017. Altcoins vastly outperformed Bitcoin, even as the asset was soaring on its own.
Related Reading | Crypto Asset Goes Viral, As TikTok Users Plan Coordinated Pump
Bitcoin dominance, a metric that weighs the leading cryptocurrency by market cap against that of other assets in the space, broke down. It fell from 97% to 35% dominance in just a little over a year.
But after that peak, altcoins have steadily underperformed Bitcoin for nearly four full years. Bitcoin has recovered nearly 50% of the way to its all-time high in USD, while altcoins remain down by 90% or more in many cases.
On BTC trading pairs, altcoins have fared even worse. But all that has changed recently, with altcoins across the market surging while BTC dominance plummets.
The recent trend change is the first real shot at an alt season in years, but one analyst claims that the real rally will begin next year.
Analyst: Current Alt Season Is Target Practice For Coming 2021 Bull Market
Low liquidity small-cap altcoins and DeFi tokens have thus far led the charge, but mid- and large-cap altcoins are primed for a major pump.
This all requires Bitcoin to continue to provide an ideal environment for alts to thrive – which tends to be sideways action that causes investors to search for thrills in altcoins.
And while altcoins are currently trouncing Bitcoin, one analyst claims that all of this is just “target practice” for the rally that’s coming next year.
In an extensive thread on Twitter, Cole Garner reveals strategies for sniping tops on altcoins. These tactics include watching on-chain analytics and short positions on Binance.
The strategies Garner outlines are in preparation for the coming rally in altcoins that the analyst sees in the year ahead. That’s when “the real face-melting alt moves likely start to kick off,” he says.
Other analysts expect gains to be much more difficult to come by in the next crypto bull market. However, if its anything like the last bull market, face-melting gains will be commonplace in the altcoin space.
Other signs are also backing up the idea of a new bull market forming. Crypto assets are pumping following exchange listings against, and TikTok users are attempting to pump and dump Dogecoin.
All this is reminiscent of the irrational exuberance that fueled the bubble in 2017. Will lightning strike twice for altcoins?
Bitcoin is beginning to flash some signs of strength as it starts breaking out of the recently established trading range between $9,00 and $9,300 The crypto could soon make a move to test the resistance that sits towards the top of its long-held trading range This resistance extends from $9,700 to $10,000 BTC’s tempered strength comes as altcoins begin rallying, with some even climbing as much as 100% yesterday Analysts are noting that there are a few factors that suggest Bitcoin could be in for a notable decline in the coming days Bitcoin is currently looking strong as it attempts to break above $9,300. This level has held as resistance throughout the past week, and buyers were previously unable to shatter it despite multiple tries. As buyers now navigate the crypto past this level, it may continue rising until it reaches its high time frame resistance in the upper-$9,000 region. This level has catalyzed countless rejections over the past few weeks and months. For it to be surmounted now, buyers will have to garner massive support. The ongoing altcoin market rally could help create a tailwind that leads the crypto higher. That being said, there do appear to be three factors that could stop the crypto dead in its tracks and lead it to decline further in the days ahead. Bitcoin Approaches Crucial Trendline Following Overnight Surge At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,350. Although in percentage terms it hasn’t risen by much, its ability to break above the resistance that has been formed at $9,300 is significant. Where Bitcoin trends next will likely depend on how it reacts to a crucial trendline that is rapidly approaching. One analyst spoke about this level in a recent tweet, explaining that the trendline currently exists around $9,400, meaning that BTC is on the cusp of a major breakout. “BTC Made this chart on July 6th, let’s see if the restest of support at $9200 is met by Bitcoin finally breaking above this trendline in the coming day. Make or break,” he explained. Image Courtesy of Josh Rager. Chart via TradingView. Three Factors That Could Slow BTC’s Ascent Three factors that could stop Bitcoin from seeing any type of intense upwards movement in the near-term include its recent retest of support, slight signs of rejection at the aforementioned trendline, and its MACD indicator testing a bear cross. One analyst spoke about these factors, saying: “Retesting + getting rejected from resistance + MACD testing bear cross. Don’t let the euphoria blind you, manage your risk by raising your stop losses.” Image Courtesy of Teddy. Chart via TradingView. Although these trends are essential to be aware of, Bitcoin could quickly invalidate them should it continue pushing higher throughout the day. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3fdDIpQ
Forget Bitcoin and Ethereum, Dogecoin (DOGE) has been on an absolute tear over the past few days.
Just look at the chart below, which shows that the meme cryptocurrency is up more than 150% in the past three days. As of the time of this article’s writing, it’s trading at $0.048, but set a local high at $0.056 on Tuesday.
DOGE/USD chart from TradingView.com
Dogecoin, which is Tesla CEO Elon Musk’s “favorite cryptocurrency,” is benefiting from an influx of mainstream coverage spurred by TikTok users.
A user on the platform with the moniker “Jamezg97,” whose profile picture is none other than the Dogecoin logo, released a video last week shilling the crypto. It isn’t clear if he was serious, but the user called the cryptocurrency a “stock” that is “practically worthless.” Jamez said that if all TikTok users buy the asset and it goes up to $1.00, one can “get rich.”
The video has gone semi-viral on the video-sharing platform, with other users following suit advising their followers to buy the cryptocurrency.
But Dogecoin has just reached a whole new level of popularity with a mention by Jake Paul.
Dogecoin Is Getting Mentioned by Jake Paul, Bloomberg, and More
According to a screenshot shared by Joe Weisenthal, a Bloomberg editor that has long been following crypto, Youtuber Jake Paul is “pumping Dogecoin on Instagram.”
The screenshot shows the latest post in the personality’s Instagram “story,” a screenshot of the Dogecoin chart on Robinhood with the following comment:
It isn’t only Jake Paul who is hopping on the DOGE train.
Bloomberg — yes, the business news publication known around the world — released an article on Dogecoin today. Crazy, right?
There’s also Keemstar, a controversial news channel Youtuber. He also mentioned the meme cryptocurrency on social media recently, tweeting out “Buy Dogecoin.”
An Illiquid Market
Dogecoin’s absurd price action is purportedly predicated on DOGE having illiquid market conditions.
A cryptocurrency trader commented:
Anybody else getting 2017 vibes, or is it just me?
Featured Image from Shutterstock Price tags: dogeusd Charts from TradingView.com After 200% TikTok Pump, Jake Paul Says DOGE Is "Gonna Go Crazy"
Ethereum is beginning to flash some signs of strength as it pushes up against the upper boundary of its long-established trading range between $230 and $250.
If it can surmount the resistance it is currently facing, it is a strong possibility that it will soon set fresh post-March highs.
Analysts are growing increasingly optimistic regarding the cryptocurrency’s near-term outlook. One is even going so far as to note that it is currently embarking on a “moon mission” due to it forming an incredibly bullish market structure.
As for where this market structure could lead ETH in the near-term, analysts are noting that $290 is a reasonable next target.
This happens to coincide with the crypto’s 2020 highs that were set in February.
For this bullish path forward to come to fruition, it must close the day above $248.
Ethereum Rallies to the Top of Its Multi-Month Trading Range
At the time of writing, Ethereum is trading up 3% at its current price of $246. The cryptocurrency is beginning to flash some significant signs of strength as it outperforms Bitcoin and many of its peers.
While BTC remains squarely in the middle of its multi-month consolidation channel between $9,000 and $10,000, ETH is currently pushing up against the upper boundary of its range – which was formed in early-May.
If it can break above $250 and set fresh post-March highs of over $255, the token could then set its sights on $290.
One analyst spoke about this possibility in a recent tweet, explaining that a firm break above $250 is all that is needed for it to start journeying up towards its YTD highs.
Image Courtesy of Cryptorangutang. Chart via TradingView.
Another analyst echoed this bullish sentiment, explaining that he believes the cryptocurrency is currently on a “moon mission” that will result in it seeing significantly further upside in the days and weeks ahead.
ETH Needs to Close Above $248 to Maintain Its Momentum
In the near-term, it appears that a robust four-hour candle close above $248 is imperative in order for Ethereum to continue climbing higher in the days and weeks ahead.
While looking at the chart below, there have been multiple occasions over the past few weeks where the crypto was rejected at this level.
Chart via TradingView.
If it is able to close above the level – especially on its daily chart – it is a strong possibility that Ethereum will soon make a bid at $290. How it reacts to this level could offer significant insights into its mid-term outlook.
A firm break above it could trigger a parabolic advance higher.
Featured image from Shutterstock. Charts from TradingView.
Bitcoin has been uncharacteristically stagnant for over two full months now. The trading range has been tightening, which has led to record low levels of volatility in the otherwise volatile asset.
But the low volatility taking place currently has reached a level that kicked off an explosive uptrend in April 2019. Will the leading cryptocurrency by market cap experience another parabolic move similar to the last time around?
What Happened to Cryptocurrency’s Signature Volatility?
The cryptocurrency asset class is historically known for its wild price swings and explosive volatility. This is the primary reason new investors are offered the advice to never invest more than they can comfortably afford to lose.
Incredible returns are possible, but so is the chance that all of your investment capital gets wiped out. That’s what many crypto investors learned the hard way buying into the peak 2017 media frenzy.
After Bitcoin’s meteoric rise from $200 to $20,000, the asset then fell back to $3,200. An over 80% drawdown was enough to deal a critical blow to anyone who bought in just ahead of the bubble bursting.
Related Reading | This Unusual Factor Could Reignite Crypto’s Notorious Volatility
But just as powerful as drawdowns are, so are Bitcoin’s rallies. In April 2019, after spending months consolidating around the current bear market bottom, an explosive breakout occurred.
Bitcoin has once again been consolidating for months and has fallen to a low level of volatility that hasn’t been reached since that April 2019 pump. The rally resulted in an over 300% climb from $3,200 to $14,000.
With volatility at such low levels and after months of sideways trading, will Bitcoin see a repeat and a powerful parabolic breakout once the range ends?
Source: Arcane Research
Bitcoin Drops To Volatility Low That Triggered Last Bullish Impulse in April 2019
According to data from Arcane Research, Bitcoin’s 30-day volatility has now fallen to 1.82%. The last time the asset had such a lapse in its signature volatility, a massive breakout occurred with a $1,000 hour-long price candle.
The April 2019 breakout kickstarted three months of an uptrend, that took the asset from $3,200 to $14,000.
The crypto market went wild with speculation, with analysis pointing to a single actor strategically placing buy orders across three crypto exchanges. Others claimed it was algrothjm-based trading bots picking up on fake April Fools day news about a Bitcoin pump, and responding with orders.
Whatever the reason, Bitcoin paused its bear market for a massive rally.
The breakout came after the cryptocurrency fell to current volatility lows, and after nearly 100 days of consolidation. Bitcoin has reached the same level in terms of volatility but hasn’t been consolidating quite as long.
Price action from the last bull market breakout suggests that the tight trading range may continue for the foreseeable future, unfortunately. Unless revisiting the current low in volatility triggers yet another parabolic bull run.
Leading Bitcoin higher, global stock markets saw an extremely strong performance on Monday.
As covered by NewsBTC, the Shanghai Composite index and the FTSE China A50 index both set new all-time highs on a 6% surge. The S&P 500 followed suit with its own gain, rallying 1.5% from last week’s close to Monday’s close.
Bitcoin and the rest of the cryptocurrency market stood to benefit from this stock market strength. One financial services firm in the cryptocurrency space wrote:
Yet bears have once again denied the stock market, at least in the U.S. Should the correlation between the S&P 500 and Bitcoin hold, this breakdown will negatively affect BTC moving forward.
S&P 500 Forms Breakdown Structure, Hurting BTC’s Upside Prospects
The strength the S&P 500 expressed on Monday quickly turned to weakness on Tuesday. The index slipped 1% lower, failing to surmount the ever-important 3,200 resistance for the umpteenth time in weeks.
Analysts say that this reversal at such an important level shows the S&P 500 is trading in a bearish market structure:
He shared the chart below conveying the existence of this structure.
Chart of the S&P 500's price action on Monday and Tuesday from trader "Cold Blooded Shiller" (@Coldbloodshill on Twitter). Chart from TradingView.com
Bitcoin is unlikely to benefit from this breakdown, multiple analysts have suggested.
This bearish sentiment is due to the correlation that has formed between the S&P 500 and BTC. A team of JP Morgan analysts commented in June that since March’s crash, “Cryptocurrencies have traded more like risky assets like equities—a significant change relative to the prior couple of years.”
Investor Charles Edwards has observed this correlation too. The digital asset manager recently noted how the S&P 500 and Bitcoin trade almost tick-for-tick in periods of high volatility/uncertainty.
Bitcoin Still Has Positive Catalysts
Although the S&P 500 is breaking down, Bitcoin still has a number of positive fundamental catalysts.
Mike McGlone, a senior commodity strategist at Bloomberg, said that Bitcoin has an increasing number of active users:
There’s also been a strong increase in a BTC intrinsic value model created by Edwards. The model suggests that Bitcoin is 27% undervalued.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com The S&P 500 Just Formed a Crucial Breakdown — and That's Bad for BTC
The options market is becoming a prominent part of Bitcoin’s ecosystem, with the total open interest seen across all platforms rocketing higher in recent times.
Late last month, the benchmark digital asset saw its largest options expiry ever, with nearly $1 billion worth of monthly and quarterly contracts expiring on a single day.
At the time, this represented over 60% of the total outstanding OI.
This expiration caused the OI for options contracts to plunge, and data now shows that the CME was hit hardest by this decline.
Institutional investors may also be growing less interested in trading contracts for Bitcoin, as the platform is now losing its share over the options market.
CME Hit Hard by June’s Bitcoin Options Expiry
On June 26th, a combination of monthly and quarterly Bitcoin options contracts expired, with their value totaling at just under $1 billion.
This marked the largest single-day expiry ever seen within the crypto industry and is a sign of the options market’s immense growth over the past year.
Naturally, OI for contracts plummeted after this expiry took place, falling from $1.8 billion to lows of $894 million.
The CME – a platform that caters to family offices, active funds, and institutions due to its high minimum contract requirements – was particularly hit hard by this recent contract expiry, as interest on the platform declined by 67% following the expiry.
Arcane Research spoke about this in a recent report, saying:
It doesn’t appear that institutional traders are too eager to jump back into new Bitcoin positions either, as the CME’s dominance of the options market has since slid from 25% to 15%.
Image Courtesy of Arcane Research.
Over the same period, Deribit’s dominance over the options market rose by 8%.
What Options are Saying About BTC’s Outlook
A research firm cited in the report said:
This steep volatility term structure indicates that the implied volatility for short-term contracts is low, as investors don’t anticipate any imminent movements.
Featured image from Shutterstock.
One particular “practically worthless” crypto asset is going viral on TikTok. Users are attempting to pump the price of the altcoin to $1 or more, through the power of the social media app.
The altcoin’s hashtag has already amassed nearly 3 million views and counting, aiming to reach the platform’s over 800 million users. The asset’s price has been responding, but could this simply be the start of alt season, or is TikTok really behind the surge?
The Bizarre Birth of Dogecoin Through Today
Dogecoin was created as a joke currency in 2013 based on the Shiba Inu internet meme Doge.
The altcoin has little to no use case. However, crypto investors either utilize it to move funds from one platform to another or use it as an indicator for alt season.
When Dogecoin rallies, it typically signals irrational exuberance in the crypto market. It’s this emotional state that causes “practically worthless” altcoins to pump dramatically.
DOGEBTC | Source: TradingView
It happened during the peak FOMO frenzy during the crypto bubble. And it’s happening again now.
However, recent gains in Dogecoin may not be a signal alt season is here, as it’s done so in the past. The latest rally in the altcoin could be due to the popular social media app, TikTok.
Crypto Asset Spikes 17% After Going Viral On TikTok
Dogecoin has gone viral on TikTok due to a new #DogecoinChallenge sweeping the app.
It’s not clear where the idea originated, but several TikTok users have been sharing videos urging users of the platform to invest just $25 into DOGE. They refer to the cryptocurrency as “practically worthless.” But they intend to change that.
Due to the asset’s low value of just $0.0025 per DOGE, buying “10,000 shares” of the “stock” could turn into $10,000 if the asset reaches $1 each.
This is a goal that TikTok users intend to reach by getting the crypto asset and corresponding challenge to go viral.
It’s working, too. Dogecoin is up over 17% in the last week since the challenge first was issued. The altcoin’s hashtag as over 2.7 million views and counting.
The platform also has over 800 million active social media users, so anything is possible. The platform has quickly grown in popularity over the last year.
Related Reading | Venture Capitalist: Crypto Gains Won’t Come As Easy During Next Bull Run
Searches for “how to buy Doge” have climbed as a result of the challenge. Google auto-suggest demonstrates how little TikTok users really understand about the crypto asset they’re putting money into.
Granted, it’s only $25 the challenge calls for. But not knowing the difference between a cryptocurrency and a stock suggests investing isn’t right for them.
Or at least additional research is necessary first. But that hasn’t stopped users from adding Robinhood charts to their backgrounds and doing a Dogecoin dance.
Still, Dogecoin is pumping and if TikTok users have their way, they’ll pump the crypto asset all the way to $1 per DOGE.
In related news, President Donald Trump is considering blocking TikTok in the United States, along with several other Chinese apps. If this happens, it could put an abrupt end to the meme currency’s change of further going viral and reaching the lofty ROI goal.
While Bitcoin, Ethereum, and other top cryptocurrencies are near year-to-date highs, the same cannot be said for XRP. As the chart below depicts, the leading altcoin is trading at $0.185 as of this article’s writing. This is below the start-of-2020 price ~$0.19 and more than 40% below the year-to-date highs of $0.34. Chart of XRP’s price action since the start of the year. Chart from TradingView.com For some context, Bitcoin is up around 25% while Ethereum has gained over 70%. XRP may be an outlier, but a trader recently shared a fractal analysis suggesting that Ethereum could follow the altcoin lower. This adds to the growing bear case against ETH, which is also predicated on fundamental trends. XRP Fractal Predicts Ethereum Could Dive Lower XRP is one of the only large-cap cryptocurrencies actually trading lower than its start-of-year price. That’s to say, its weakness has not permeated to the rest of the digital asset market. But one analyst says that this could change. He shared the two charts below on July 7th, showing that the top XRP formed in May and June looks eerily similar to Ethereum’s price action now. Attached to the charts, he wrote: “What if $XRP is the leading indicator of $ETH?” XRP and Ethereum fractal analysis by crypto trader il Capo of Crypto (@CryptoCapo_ on Twitter). Chart from TradingView.com The trader is suggesting that XRP’s recent underperformance could bode poorly for Ethereum. The charts suggest that if the fractal plays out to a T, ETH could soon trade under $200, a ~15% drop from current levels. Ethereum is facing other bearish technical trends, other traders have said. As reported by Bitcoinist, the cryptocurrency has historically underperformed in the second half of many previous years: “If ETH follows its cycle this time then high of the year could be in & we’ve 6 month correction,” the analyst who shared the chart below wrote. Ethereum price analysis by cryptocurrency trader ‘Edward Morra’ (@edwardsmorra_BTC on Twitter). The chart from TradingView.com A Bearish Fundamental Case ETH could also be depressed by a forming bearish case based on fundamentals. Ethereum has enjoyed a surge in adoption over recent weeks, benefiting from the growth of its decentralized finance applications. Yet analysts say that this influx of adoption has had bearish side effects: high transaction fees. Crypto analyst Qiao Wang said that after experiencing high Ethereum fees, he’s convinced the blockchain could be dethroned: “I’ve changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there’s an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX.” I've changed my mind after using a dozen of Defi platforms. So long as ETH 2.0 is not fully rolled out, there's an obvious opportunity for a highly scalable blockchain to dethrone Ethereum. Paying $10 transaction fee and waiting 15 seconds for settlement is just bad UX. https://t.co/vXAAFET3YK — Qiao Wang (@QWQiao) June 28, 2020 This was echoed by Scott Lewis, the co-founder of Concourse Open Community. He said that since ETH fees are so high, the Ethereum community should be slow to admit that they’ve won. Featured Image from Shutterstock Price tags: ethusd, xrpusd Charts from TradingView.com XRP's Recent Collapse Could Force Ethereum Under $200, Analyst Suggests
Originally from Bitcoinist.com https://ift.tt/3e72man
After the block reward halving, many analysts in the Bitcoin space expected a “death spiral.”
The term is one created by a professor who, in 2018 speculated that BTC could fall to $0 due to a collapse in miners. A “death spiral,” per the journalist, takes place when Bitcoin miners leave the network, resulting in slow/no transactions, making BTC intrinsically worthless.
Bitcoin Hash Rate Establishes New All-Time High
According to crypto data firm TradeBlock, Bitcoin’s network hash rate just hit a new all-time high. The company shared the image below on July 7th, showing that the seven-day moving average of the hash rate is now above 124 exahashes per second. This is over double that seen a year ago.
Chart of Bitcoin's hash rate over time from TradeBlock (@Tradeblock on Twitter)
The hash rate is the measure of the computational power being used to secure transactions on a blockchain network. As Bitcoin.org describes the term:
Investors in the space have responded to this metric with immense optimism. One trader bashed the death spiral narrative, asking where the death spiral is.
Their optimism isn’t unfounded: analysis suggests that increased Bitcoin mining activity should correspond with higher prices for BTC.
This theory was cemented with a price model from digital asset manager and investor Charles Edwards. In 2019, he came out with a model showing that Bitcoin’s price has always centered around its energy consumption in joules.
Edwards recently found that with the ongoing hash rate surge, Bitcoin is now trading around 27% under its energy value. Should the hash rate stay this high, BTC is likely to be attracted towards its energy value.
Bitcoin Energy Value analysis by Charles Edwards (@caprioleio on Tiwtter), a digital asset analyst. Chart from TradingView.com
Catalysts Behind the Hash Rate Surge
Behind Bitcoin’s ongoing hash rate surge is seemingly two catalysts:
Considering that mining firms continue to roll out fresh hardware and the rainy season is still ongoing, Bitcoin’s hash rate could trend even higher.
Photo by Nick Chong on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com What Death Spiral? Bitcoin Hash Rate Surges to Fresh All-Time High
Bitcoin has remained in firm bull territory over the past several weeks, despite it showing some signs of immense weakness Much of the benchmark cryptocurrency’s current strength comes from its ability to hold above its SMA50 One analyst believes that this is the level that will determine the crypto’s future in the days and weeks ahead He also notes that some hidden bullish divergences are working to counter the weakness stemming from BTC’s “somewhat defined” downtrend and its lack of momentum Bitcoin has been caught within the throes of one of the most prolonged bouts of sideways trading it has seen in years. Since the start of May, BTC has been establishing a trading range between $9,000 and $10,000. Each journey outside the boundaries of this range has proven to be fleeting, and in recent weeks its volatility has cratered as it trades between $9,000 and $9,300. This type of trend is typically followed by large movements, and some analysts hypothesize that the longer Bitcoin trades sideways, the bigger its next move will be. As for where this movement will lead it, one analyst noted in a recent post that multiple technical factors are playing into the favor of bulls. Bitcoin Remains Bullish in the Mid-Term Despite Signs of Overt Weakness Over the past day, Bitcoin has been facing multiple harsh rejections at $9,300 that have stopped it from seeing any further upwards momentum. Buyers’ inability to sustain the rebound that was first sparked when the crypto rallied from recent lows of $8,950 does seem to be a grim sign. That being said, one analyst believes that the benchmark digital asset remains in an excellent mid-term position. In a recent blog post, the pseudonymous trader explained that BTC’s ongoing consolidation had come about after a notable break above a macro descending trendline. He contends that this is positive over a longer time frame: “Long-term perspective is still favoring bullish scenario rather than bearish, due to the fact that BTC/USD broke out above long-term bearish trend and have been consolidating after breakout, under the resistance since.” Image Courtesy of CryptoBirb. Chart via TradingView. Here’s the Critical Technical Level that Could Determine BTC’s Fate The same analyst also believes that the crucial technical factor to consider in the near-term is Bitcoin’s positioning relative to its SMA50 – a critical moving average that it is currently trading above. He believes that BTC is robust as long as it remains above this level, which currently sits within the mid-$8,000 region. “As long as bitcoin provides trading above the 50-week average, it’s leaning more towards 10.5k+ targets and new highs. If closed below, then we talk MTF-HTF shorts.” Once Bitcoin exits its consolidation phase, it will be imperative to watch this moving average closely. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/2DcvMqK
Bitcoin futures have seen a rising premium over spot BTC in recent months, which seems to indicate that traders are bullish on the benchmark cryptocurrency.
This premium is particularly clear while looking towards the CME – which seems to indicate that professional traders and institutions are particularly bullish on BTC at the present moment.
This comes as Bitcoin and the entire cryptocurrency market faces an intense bout of abnormally low volatility, which has caused liquidity to dry up.
Periods of low volatility coupled with limited liquidity are typically followed by massive movements, and the current CME futures premium seems to indicate that institutions are expecting this move to favor bulls.
Bitcoin’s Consolidation Phase Suggests a Big Movement is Coming
Bitcoin has been trading between $9,000 and $10,000 for nearly seven weeks now, and the cryptocurrency has failed to garner any clear direction in the time since.
Its trading range has narrowed over the past week, as it is now trading between $9,000 and $9,300.
The series of lower highs that have been set during the past couple of months doesn’t seem to bode well for bulls.
As buyers and sellers remain at an impasse, where the crypto trends next could be largely dependent on its reaction to its $9,000 support and its $10,000 resistance.
Data via TradingView
Which of these levels is decisively broken first should offer investors with significant insight into its next trend.
As NewsBTC reported yesterday, Bitcoin likely won’t trade sideways for too much longer.
Over the past month, the benchmark digital asset’s volatility has hit lows not seen in over a year. In turn, this has caused the market’s liquidity to begin drying up.
As cited in the report, the analytics platform Glassnode explained that exchange deposits and on-chain transactions have both seen a sharp decline over the past week.
Limited liquidity makes the crypto more prone to seeing abnormal price movements, which could signal that a spike in volatility is inbound.
Institutions Remain Bullish on BTC
As to where this imminent volatility could lead Bitcoin, it appears that institutional investors are anticipating it to see upside.
This is indicated by the rising premiums seen while looking towards BTC futures on the CME.
Arcane Research spoke about this in a recent report, explaining that the premium has gone unchanged over the past week despite the crypto’s narrowing consolidation channel.
Image Courtesy of Arcane Research.
Where this premium trends next will likely depend on which direction Bitcoin begins moving once its consolidation close comes to an end.
Featured image from Shutterstock. Pricing Data via TradingView
Switching Bitcoin price charts from one type to another gives a clear as day look at what appears to be a full-blown breakout into a bull market.
Better yet, the price action also shows a retest of downtrend resistance turned support, which could act as a launchpad for the cryptocurrency.
Understanding Technical Analysis, Trend Lines, Subjectivity, and Bias
Reading through Bitcoin-related subreddits or glancing through crypto Twitter comments reveals a strong disbelief in technical analysis.
Some argue that drawing lines on charts is a senseless practice, and price action will do whatever it wants regardless. It’s not possible to predict the future, but technical analysis supplies traders and analysts with probabilities at which they can build a strategy around.
Drawing trend lines alone can be highly subjective when charting Bitcoin. Valid trend lines have the most touches, that analysts agree on.
However, some chartists cut wicks, drawing lines across candle bodies only, while others draw lines across wicks themselves. Others, use a combination of the two – usually to fit their own personal bias.
Related Reading | Two Bitcoin Charts Side by Side Shows Trendlines Can be Massively Biased
But not all Bitcoin price charts are candlesticks. There are also Renko, Heikin Ashi, Point and Figure, and many more types of charts, that can supply analysts with unique intel about the market.
Line charts are one of these types of charts some analysts rely on to provide a unique perspective on price action. Without wicks, line charts can make breakouts appear that much more clear.
An updated line chart of Bitcoin price action on weekly and monthly timeframes appears to indicate that Bitcoin has broken out from downtrend resistance. Even more bullish yet, the asset also may have completed a retest of resistance turned support.
BTCUSD Weekly Line/Candlestick Comparison | Source: TradingView - Click Here For Full Size
Bitcoin Price Line Chart Shows Full-Blown Breakout Into Bull Market
As explained above, some traders choose to draw trend lines across candle bodies, while others prefer wicks. Switching from a Japanese candlestick chart to a line chart can help provide additional clarity.
The above comparison chart shows the significance of switching from Japanese candlesticks to line charts. Without wicks, there’s little discrepancy to argue over which trend lines are the most valid.
Zooming out further in the chart below, a breakout of downtrend resistance has not only occurred, but its retested and held resistance turned support.
BTCUSD Monthly Line/Candlestick Comparison | Source: TradingView - Click Here For Full Size
If the breakout is indeed confirmed and any additional retests continue to hold, a new bull market is already here. The target of the larger triangle pattern Bitcoin has been trading in for nearly four years measures from the highest and lowest point of the triangle.
This would give Bitcoin price a target of $98,000 per BTC at the next peak.
Price predictions range as high as $100,000 to as much as $1 million per BTC. And with only 21 million BTC to ever exist, these estimates aren’t overblown or outrageous.
BTCUSD Monthly Line Chart | Source: TradingView
The days, weeks, and months ahead for Bitcoin price are critical, as the cryptocurrency must hold this key resistance as support. Without any downtrend support left to hold back the asset, Bitcoin will soon retest $14,000, and then possibly its former all-time high.
A break of $20,000 would put Bitcoin back into price discovery mode, with only psychological and Fibonacci extension resistance left in its path towards $100,000 BTC.
Although Bitcoin still can’t break above $10,000, nor can Ethereum overtake $250, Chainlink continues to set new record high after high. Even today, the crypto asset keeps raising the stakes on its all-time high.
But as new highs are set, the price action has not only triggered but perfected a sell setup on monthly timeframes. Could this latest high be the last for the superstar altcoin for a while?
Chainlink Sets Yet Another New All-Time High, What Will Stop The Altcoin Superstar?
Cryptocurrencies remain stagnant, unable to break above long-term resistance nor have any new lows been set. The only highs and lows Bitcoin is setting currently, are for record-high stability and low volatility.
Meanwhile, Chainlink, a seemingly unstoppable altcoin just set yet another new all-time high. The asset was also the best performing crypto asset last year, and investors fully expect a similar performance this year.
Related Reading | These Altcoins Set a New ATH While Bitcoin And Ethereum Tank
Thus far, they’ve been right. Chainlink sets new record after record, both on the LINKUSD and LINKBTC trading pairs.
In 2020 alone, LINKUSD has surged over 200%. On the LINKBTC trading pair, Chainlink is up over 140% against Bitcoin in 2020, showing strong overperformance.
The rest of the altcoin space has bled out against Bitcoin, but Chainlink has held strong. However, that may soon be coming to an end, just as other altcoins break out from downtrend resistance.
Chainlink Monthly TD 9 Sell Setup | Source: TradingView
Correction Overdue For Ultra Hot Crypto, According To Sell Setup on LINKBTC
Just as LINKUSD set a new all-time high this month at $5.70, LINKBTC also set a new all-time high at 61000 satoshis. However, the high isn’t all high fives and celebrations – it could kick start profit-taking in the altcoin.
The TD Sequential indicator was created by Thomas Demark. The tool is used for market timing, and follows a specific sequence of candles until either a 9 or a 13 count is reached. At that point, depending on the direction of the price action, a buy or sell setup is issued.
The latest pump in Chainlink has perfected a TD 9 sell setup on the LINKBTC trading pair on monthly timeframes. The highest timeframes are given the most weight when it comes to signals.
These signals are considered “perfected” when the 9 candle achieves a higher high or lower low than the previous four candles. Rocketing to a new all-time high makes the signal all the more likely to confirm.
What the indicator doesn’t provide, is what level to sell at. Chainlink is in full price discovery mode and could soar far higher before the month-long sell setup should be taken.
When the final high is reached, however, extended downside against Bitcoin is highly probable given how accurate the TD Sequential indicator has been on cryptocurrencies.
It’s worth noting, however, that the previous TD 9 sell setup on the monthly was followed by an over 200% rally in the month following. Anything is possible in cryptocurrencies when there’s no resistance to stop them.
Cardano has been caught within an intense rally over the past few weeks, surging amidst a flurry of positive news This rally has allowed it to set fresh yearly highs today, and in the near-term, it appears that it will continue climbing higher It is important to note that it is quickly navigating up towards a massive high time frame resistance level The selling pressure here may be insurmountable and could spark a selloff This comes as one analyst is noting that he believes the crypto is flashing some signs of forming a macro top formation Cardano (ADA) has been one of the strongest top digital assets over the past several days and weeks, finding itself caught within an intense uptrend that has allowed it to climb by over 400% from its mid-March lows. This strength has largely come about due to the hype surrounding the recent launch of the Shelley mainnet upgrade. This upgrade is anticipated to help further decentralize the network while also helping to increase the blockchain’s scalability. Investors do believe that its launch is fundamentally significant, as it has been the primary factor behind ADA’s intense multi-month upswing. That being said, some analysts are noting that the crypto could be starting to form a macro top formation. Cardano Up 400% From YTD Lows; Approaches Major Resistance Level At the time of writing, Cardano is trading up just under 4% at its current price of $0.108, marking a notable rise from weekly lows of $0.08. The token has been steadily climbing higher over the past few months, shattering multiple key resistance levels along the way. One analyst is now forecasting further near-term upside, as he believes that it could continue surging until it reaches its next resistance that lies just a hair above its current BTC price of 1,180 sats. That being said, the analyst also notes that he is expecting a dip that sends it to 900 sats. “Cardano: Onwards we go. Broke through resistance block like it’s nothing. The next zone is the 1200-1215 sats area, after that 1330-1375 sats. Dips? I’m still looking at 900 sats possibility,” he explained. Image Courtesy of Crypto Michael. Chart via TradingView. ADA Could Be Forming a Macro Top Despite being positioned to see slightly further near-term upside, it is still a strong possibility that Cardano is forming a macro top. One analyst mused this possibility in a recent tweet, explaining that its chart is signaling that its “nice bull run is coming to a close.” “I know ADA has some news coming up this month, but this chart is highly suggesting that the top of the nice bull run is coming to a close,” he said while pointing to the below chart. Image Courtesy of Calmly. Chart via TradingView. Its reaction to its current resistance may be the factor that determines whether its uptrend will end now, or if it will push higher before losing its strength. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/326F9D5
Bitcoin’s consolidation channel formed since the start of May has been narrowing ever since it was first established.
The cryptocurrency is now trading sideways between $9,000 and $9,300, facing immense resistance at the upper boundary of this range.
From a fundamental perspective, the benchmark digital asset has been seeing stagnating market health, with this being driven primarily by a sharp decline in its liquidity.
This trend will likely persist in the near-term, as data shows that BTC’s 10-day realized volatility is now at 20%. The last time this metric reached levels this low was just before the massive selloff seen in November of 2018.
A combination of drying liquidity coupled with low volatility may be laying the groundwork for the digital asset to post a massive movement in the weeks ahead.
Bitcoin’s Liquidity Shows Signs of Faltering as Sideways Trading Persists
Bitcoin has been unable to incur any decisive momentum throughout the past several days and weeks, with each attempt at garnering a clear trend being futile.
This past weekend, sellers attempted to push the digital asset down to lows of $8,900. From here, buyers absorbed the selling pressure and quickly led it back into its long-held trading range between $9,000 and $9,300.
Throughout the past 24-hours, buyers have been trying to shatter the massive resistance that sits around $9,300 but have failed to make any meaningful progress.
One byproduct of this trend has been a decline in Bitcoin’s liquidity.
According to a recent report from the analytics platform Glassnode, BTC’s liquidity was the only metric within their Network Index that declined in value over the past week.
They note that both trading and transactional liquidity declined in tandem over the past seven days.
Image Courtesy of Glassnode
They further add that the cryptocurrency remains fundamentally strong, as its network health and investor sentiment have both increased over the same period.
BTC’s Low Volatility Suggests a Massive Movement is Brewing
Bitcoin’s low volatility seems to indicate that a sizeable movement is just around the corner.
According to data from Skew, BTC’s 10-day realized volatility has declined to levels not seen since just before the massive selloff seen in November of 2018.
Image Courtesy of Skew.
As seen in the below chart, periods of tremendously low volatility like the one seen presently do not tend to last for long, signaling that Bitcoin could be coiling up to make a trend defining movement in the weeks ahead.
Featured image from Shutterstock.
Bitcoin has performed extremely well since March’s lows, rallying over 150% from the $3,700 capitulation bottom. Even after a strong $1,200 retracement from the $10,500 highs, BTC is still one of the best-performing assets of 2020.
Yet a crucial indicator suggests that Bitcoin is still intrinsically undervalued, boding well for the bull case.
A Crucial Bitcoin Indicator Suggests Bitcoin Is Seriously Undervalued
Many analysts, especially those on Wall Street, find it hard to value Bitcoin. The cryptocurrency’s value seems nebulous to most, largely because it doesn’t produce cash flow, offer dividends, and doesn’t have a physical form.
In December 2019, though, digital asset manager and investor Charles Edwards attempted to solve this issue.
He released a Medium article entitled “Bitcoin Energy-Value Equivalence” that tried to create an intrinsic value price model for Bitcoin.
Edwards basically suggested that the energy used by the Bitcoin network can be used to estimate what BTC should cost per unit. The premise is that Bitcoin can be valued like how traditional investors value commodities, though determining their cost of production.
Bitcoin vs. Energy Value model created by digital asset manager Charles Edwards(@caprioleio on Tiwtter).
To display the efficacy of the so-called energy value model, Edwards shared the chart above. The chart shows that Bitcoin’s price has always been somewhat correlated with its energy value, trading both above and below the model.
According to Edwards’ latest look at the data, Bitcoin is now trading around 27% under its energy value.
The investor shared the image below on July 6th, showing that the energy value of Bitcoin is at $12,815 — a new all-time high.
Bitcoin Energy Value analysis by Charles Edwards (@caprioleio on Tiwtter), a digital asset analyst. Chart from TradingView.com
This comes as the seven-day moving average of BItcoin’s hash rate has begun to approach all-time highs.
Should the energy value continue to push higher, BTC is likely to trend towards it considering its historical precedent.
Not the Only Fundamental Trend Supporting the Bull Case
The Bitcoin network’s increase in power consumption isn’t the only fundamental trend supporting bulls.
The analyst also said that with increasing adoption of Bitcoin via the CME, central bank money printing, and Grayscale’s purchasing of BTC, the cryptocurrency market looks primed to appreciate.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin's Intrinsic Value Hits $13,000 — Here's Why That's Big for Bulls
Altcoins have actually done rather well against Bitcoin since the start of 2020. This comes in spite of the BTC-centric rhetoric seen on social media. Yet prominent market participants are not convinced that an “altcoin season” — when cryptocurrencies gain strongly against Bitcoin — will transpire. Some commentators, in fact, are expecting an altcoin “extinction event.” Bitcoin Dominance Prints Crucial Bear Sign The past few weeks have seen a number of altcoins rip higher. Take the example of Vechain (VET), which was up 50% on Sunday. Or take the example of one of DeFi’s poster children, Compound (COMP), which has gained 500% since its June launch. At one point, the altcoin was up over 1,000% from its launch price. Altcoins outperforming Bitcoin has allowed the BTC dominance metric — the percentage of cryptocurrencies made of up of BTC — fall under a crucial level. The head of technical analysis at Blockfyre, a crypto research firm, shared the below analysis depicting this. Referencing the chart below of Bitcoin’s dominance metric, the trader wrote: “We did it fam. 900+ day trendline broken and retested, macro structure favoring alt rallies. The problem after trading a bear market could easily be selling many too early!” Bitcoin dominance chart shared by a trader and the head of technical analysis at Blockfyre, Pentoshi (@pentosh1 on Twitter). Chart from TradingView.com Another trader commented on the chart of BTC dominance: “Breaking down from a multi-month uptrend line (orange) Clean breakdown from here means Altseason continues.” Despite this outlook, there are many that have said that it may be unwise to bet on a rally in altcoins. Expect Many Altcoins to Fail, Analysts Say The prominent Bitcoin trader and whale investor, “Joe007” recently commented that a “s**tcoin mass extinction event will likely precede next Bitcoin rally. Make of it what you will.” Joe007 is known for his strong takes on subjects in the cryptocurrency space. He has also formed a reputation of being a profitable trader, with Bitfinex data indicating he has publicly made dozens of millions. This comment has been echoed by Kevin Rose, a general partner at True Ventures. Rose, who led Google Ventures’ investment in Ripple, told TechCrunch the following on his view on the crypto industry: “The problem is that 99% of the projects out there and a lot of the people who are behind them are just in this for the pure financial gain. And there’s a lot of garbage out there. And that’s unfortunate because it really drags down the high-quality projects, and it muddies the space quite a bit.” To many in the industry, altcoin projects provide little value over Bitcoin. Prominent Bitcoin investor and proponent Max Keiser said that there is “no coin out there that can do something that Bitcoin doesn’t do already or will be able to do shortly.” Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Dominance Took a Big Hit, But Don't Count on an Altcoin Rally
Originally from Bitcoinist.com https://ift.tt/2O3l0Wc
During a hearing on the potential introduction of a digital dollar, Senator Tom Cotton claimed whatever the United States comes up with, it has to “be better than Bitcoin.”
He also asserts it must be better than China’s digital yuan, which is currently in its pilot phase in the country. If it doesn’t, the dollar’s place in the “global payments system” may be at risk.
The United States Debates The Introduction of A Digital Dollar
Late last month, the United States Senate Banking Committee held a virtual hearing debating the need for a digital dollar.
The dollar has long reigned as the global reserve currency, affording the United States an untouchable superpower position through its currency.
Nearly every major market is bound to USD as the base currency. It’s used as the primary exchange rate for all other currencies, including Bitcoin.
Related Reading | Economist Warns of Warp Speed Dollar Decline, How Will Bitcoin Respond?
For the first time throughout its history of dominance, the dollar is showing signs of weakness following the pandemic.
The dollar has remained relatively unchallenged by Bitcoin despite its powerful potential. The fact that it’s unregulated, uncontrollable, and currently clunky and confusing, it poses little threat to the dollar in its current state.
However, a major threat to the dollar’s supremacy exists in China’s launch of the Digital Currency Electronic Payment system.
Global Reserve Currency Status At Risk Due to Bitcoin and Digital Yuan
During the hearing, former CFTC Chairman and Crypto Dad J. Christopher Giancarlo urged the US to “adapt,” citing “social and national benefits” along with referencing Darwinism.
Beating the US to the punch, however, has been China. The country is close to launching its own version of the digital yuan that, left untested by a digital version of USD, could lead to the DCEP coming into power.
Also at the hearing, Senator Tom Cotton warned that anything the US creates must be better than Bitcoin and the digital yuan.
But because Bitcoin is a decentralized cryptocurrency under no government’s control, the dollar is more closely competing with the digital yuan.
China’s digital currency could potentially unseat the dollar as the global reserve.
If this happens, and China successfully rolls out a digital currency long before the US gets its act together, the dollar’s days as the king could be numbered.
If the dollar fails to retain its place in the global payments system as the Senator warns, Bitcoin or the DCEP could be next in line.
Bitcoin as a non-sovereign asset gives it additional value beyond the digital yuan or dollar could ever have, and that’s due to its decentralized design.
Unlike these new digital assets that like paper fiat money can be printed at a whim, Bitcoin is different. Only 21 million BTC will ever exist and nothing can change that.
It also could be this very reason why any attempt from the US to be “better than Bitcoin” will come up short.
XRP continues to sink, as does the stomachs of investors who have held the altcoin as a loss for over two years running.
All that loss and suffering could soon come to an end, due to a number of signals that could indicate the asset has finally found a bottom.
Remembering The Ups and Downs of Ripple Investment
Cryptocurrencies like Ethereum, Litecoin, and Ripple are bound as one-half of trading pairs to either USD or BTC.
Because nearly all crypto assets share a trading pair with the leading cryptocurrency by market cap, when it moves, they follow.
An entire metric of Bitcoin dominance has been developed to watch this ebb and flow more closely.
When Bitcoin rises in USD value, it typically drags altcoins along for the ride. How much they rise and fall during each Bitcoin rally or drop, impacts their ratio and value in sats.
At XRP’s peak in 2018, the altcoin achieved an all-time high valuation of over $3.50. Major mainstream media outlets covered how to buy the asset investors had been scrambling to hold.
Related Reading | The Price Trend of Ripple Stunningly Reflects That of Sheep Manure Stock
As soon as the bubble burst on crypto and Bitcoin, Ripple and other altcoins bled out by over 90%. XRP, in fact, remains down by over 90% on both its USD and BTC trading pairs.
Because Bitcoin appears to have bottomed in terms of USD, XRPUSD may have also bottomed a while ago. However, on the XRPBTC trading pair, it has been nothing but a free-fall for the better portion of the bear market.
The altcoin reached a peak of over 23000 satoshis during the crypto bubble but is currently trading around 2000 sats today.
However, there are multiple signs pointing to a major recovery in Ripple forming slowly as the days go by.
Ripple XRPBTC Weekly Downtrend Resistance | Source: TradingView
XRP May Finally Have Bottomed, Five Signs A Sharp Recovery Is Next
On the XRPBTC trading pair, the altcoin has now broken free from and held a retest of long-term downtrend resistance turned support.
Ripple XRPBTC Weekly Morning Star | Source: TradingView
Zoomed in, coinciding with the weekly support holding, a morning star pattern has also formed on the same chart timeframe.
The breakout of long-term downtrend resistance is also accompanied by a massive, year-long bullish divergence on the MACD indicator.
Ripple XRPBTC Weekly MACD Bull Div | Source: TradingView
The highly accurate TD Sequential indicator has also triggered a buy setup on quarterly timeframes. Similar signals have also triggered on daily, weekly, and monthly charts recently.
Ripple XRPBTC 3M TD Sequential "9" Buy Setup | Source: TradingView
Sentiment may be at an all-time low for the altcoin, but whales are accumulating any XRP sold from smaller investors capitulating after three years of new lows being set.
Related Reading | Ripple Effect: Crypto Whales Buy Up A Sea of Small Fish Selling
However, given all the signals above, they may be selling the absolute bottom, and altcoin could soon surge into a strong, overdue recovery.
Bitcoin has been holding above its crucial support for the past few weeks, despite being subjected to heavy selling pressure This is a positive sign that seems to suggest further upside could be imminent There are some technical signs also supporting the notion that the crypto will continue pushing higher in the near-term One analyst is noting that BTC could rally past $10,500 if it continues holding above $8,800 This level closely coincides with the crypto’s SMA50 – which is a crucial level bulls have been defending Bitcoin and the aggregated cryptocurrency market are flashing mixed signs to investors. After declining into the $8,000 region yesterday, buyers stepped up and catalyzed an influx of buying pressure that helped send BTC back into its multi-month trading range. The break back above $9,000 has since sparked a slight uptrend that has led it to $9,300. Despite facing some resistance here, analysts are noting that Bitcoin is building a strong base for an upwards movement due to its continual trading above multiple key levels. One such level is $8,800, which a popular analyst claims could help spark momentum that sends BTC to fresh yearly highs. Just below this price is Bitcoin’s SMA50, another crucial level that buyers have been ardently defending. Bitcoin Maintains Above Crucial Technical Level as Bulls Stay in Control At the time of writing, Bitcoin is trading up 2% at its current price of $9,250. Its buyers have been struggling to surmount $9,300, as this happens to be the upper boundary of the trading range formed throughout the past week. If this level is surmounted, BTC will likely take aim at the upper-$9,000 region. This area is laced with resistance and may be difficult for buyers to navigate through. That being said, one analyst is noting that the crypto still remains in bull territory. He explains that its ability to continue closing above its SMA50 suggests that this recent price action is “bullish consolidation under the resistance.” “As long as btc keeps closing above SMA50, past months are more of bullish consolidation under the resistance to me,” he explained. Image Courtesy of CryptoBirb. Chart via TradingView. Analyst: BTC Poised to Push Past $10,500 as it Holds Crucial Level In addition to holding above its SMA50, the benchmark cryptocurrency has also been trading above a crucial horizontal support level. Another pseudonymous analyst explained that $8,800 is the level he is closely watching, as a continued hold above here could open the gates for a move past $10,500. “This is what you should have seen. As long as price continues to close above 8.8k on the D3 TF, this hidden bullish div is likely to play out and send us to the moon (10.5k+).” Image Courtesy of Credible Crypto. Chart via TradingView. The coming days should provide insight into how substantial this bullish divergence is. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3gvtaCP
Bitcoin was able to post a bullish reaction to its recent dip below $9,000, with its buyers sparking a rally that sent it as high as $9,300.
Although this rally has not confirmed any type of notable technical breakout, it has helped shift some of the benchmark cryptocurrency’s technical indicators into the favor of bulls.
One analyst is now noting that the crypto is flirting with posting a MACD bull cross.
This technical pattern – if confirmed during the imminent daily close – would be a significant development for bulls, and could trigger a fresh uptrend that allows that crypto to climb significantly higher.
The stock market may be the force that determines whether or not BTC can close around its current price levels, as it appears to be providing the crypto market with some upwards momentum due to its significant climb today.
Bitcoin Close to Posting MACD Bull Cross: Key Levels to Watch
At the time of writing, Bitcoin is trading up over 2% at its current price of $9,280.
The crypto has been hovering around this price level for the past several hours, with bulls garnering greater support in the time following its sharp rebound from the dip below $9,000 seen yesterday.
The rally seen immediately following this decline indicates that buyers do have some notable strength at the present moment.
$9,300 is a crucial level to watch in the near-term, as its reaction to the resistance here could set the tone for where it trends in the days and weeks ahead.
This also marks the upper boundary of the short-term trading range that Bitcoin has formed over the past week.
One analyst explained that a daily close above $9,240 could be all that is needed to propel BTC above this resistance and spark a short-term uptrend, as it would confirm a bullish MACD bull cross.
Image Courtesy of Teddy. Chart via TradingView.
Stock Market Gains Could Help Drive Bitcoin Higher
The stock market has been able to catch some notable upwards momentum today, with all the benchmark indices closing the day up well over 1%.
Although Bitcoin’s correlation with the US stock market has degraded slightly in recent weeks, the general connection between the two markets persists.
This is likely to bolster BTC’s daily close today in the coming few hours.
The Chinese stock market also appears to be laying the groundwork for a fresh bull run, which could provide Bitcoin with a boost as the country’s investors build a larger appetite for risk.
Featured image from Shutterstock. Chart via TradingView.
Altcoins have been absolutely dominated by Bitcoin over the last several years of crypto bear market. While the first-ever cryptocurrency has reached nearly 50% of its former all-time high, most altcoins remained down 90% or more.
However, based on probabilities alone, an altcoin recovery that brings the assets more on par with Bitcoin may be brewing. Here’s what the data suggests.
The Incredible Altcoin Boom That Burst The Crypto Bubble
When the mainstream public first learned about Bitcoin in 2017, they FOMOed into the asset driving its price to its peak at $20,000.
At the same time, money-hungry investors bought up any altcoin they could hoping to find ‘the next Bitcoin.’
Altcoins like Litecoin, Ethereum, Ripple, and countless others surged to all-time high valuations.
After the bubble popped, altcoins crashed by 90% or more. Many remain down by nearly as much even today and after nearly three years passing.
Bitcoin, however, has recovered a large portion of its former high.
During 2019, Litcecoin’s halving brought some buzz and momentum back to altcoins. But Bitcoin once again stole the show, rocketing to $14,000 and leaving alts decimated in its wake.
Sentiment in altcoins has never been lower, but based on probabilities alone, a turnaround could soon be coming.
Litecoin Could Soon Lead Alts To Major Recovery Against Bitcoin
Litecoin often acts as a leading indicator for the greater crypto market. It can even tip off traders as to what to expect from Bitcoin or other alts.
It led the initial rally in early 2019 that prompted Bitcoin’s breakout bull run that summer.
Litecoin may once again be providing some interesting clues on what’s to come in crypto.
Litecoin LTCBTC 1M & 3M Divergence, Fisher Transform, TD Sequential | Source: TradingView
The Fisher Transform indicator on the LTCBTC trading pair has given a reading of a -2 deviation. This suggests there’s only a tiny, 8% chance of Litecoin declining further against Bitcoin.
Related Reading | These Alts Set a New ATH While Bitcoin And Ethereum Tank
LTCBTC is also at the range low, is extremely oversold, and a perfected TD 9 buy set up triggered on 3-month time frames. The TD Sequential indicator has been highly reliable in crypto trading on lower timeframes like daily and weekly.
The largest timeframes, however, are given the most weight in technical analysis, making the signal that much more important.
This suggests that after 27 months’ worth of downtrend, Litecoin is ready to regain against BTC.
And with the asset commonly acting as a leading indicator for all altcoins, a much-needed alt season could finally arrive.
Ethereum has incurred a sharp upswing over the past day, significantly outperforming Bitcoin and most of its peers The token’s ongoing upswing came about after buyers defended against a dip below its crucial support at $220 yesterday This movement has allowed ETH to recapture its position within its multi-month trading range Analysts are noting that the crypto is now shaping up to see further momentum in the days and weeks ahead Bulls may not be in the clear just yet, as there are a couple of factors that may still point to underlying weakness Ethereum and the aggregated cryptocurrency market faced a heavy influx of selling pressure yesterday. This caused Bitcoin, Ethereum, and most other major digital assets to reel down to their crucial near-term support levels. Bulls stepped up and posted an ardent defense of these levels, paving the way for the market to climb higher today. The subsequent rally has allowed ETH to reclaim its position within its trading range between $230 and $250. Analysts are now growing increasingly bullish on the cryptocurrency, although it has yet to break out of its trading range. It also recently confirmed a dreaded “death cross” that could hamper is growth in the weeks ahead. Ethereum Reclaims Long-Held Trading Range At the time of writing, Ethereum is trading up 4% at its current price of $237. This marks a notable rally from its recent lows of $223 that were set yesterday. Throughout the course of its subsequent rebound, ETH has been significantly outperforming Bitcoin and many of its other peers. Some of this strength may stem from its ability to break the resistance it previously faced at $230. Analysts now believe that it is building strong momentum that may carry it higher in the days and weeks ahead. One such trader explained that it has now posted a series of support-resistance flips, which suggests it is “building the bases for a parabolic” movement. “ETH is building its momentum. We can notice a series of S/R flip, imo this is very bullish as we are building the bases for a parabolic scheme,” he explained. Image Courtesy of Wolf. Chart via TradingView. Why ETH Still Remains in a Precious Position Last week, Bitcoinist reported that Ethereum’s recent price action had caused it to form and confirm a dreaded “death cross” pattern on its 4-hour chart, the likes of which haven’t been seen since March. Image Courtesy of Teddy. Chart via TradingView. Although this pattern could be invalidated if ETH continues pushing higher, it still seems to indicate that the crypto is plagued by underlying weakness. It also remains unclear as to how the ongoing DeFi boom will impact Ethereum. Some investors speculate that the sector’s growth will draw funds away from ETH, only being cycled back into the crypto one the potential bubble bursts. Until investors gain more insight into these factors, it may be too early to grow firmly bullish on Ethereum. Featured image from Shutterstock. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/38ERhfK
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