The massively popular public blockchain network NEM has been diligently working to expand into the enterprise solutions ecosystem since 2017. Soon this year, NEM will release Symbol, an enterprise-ready blockchain network. This is a significant move on NEM’s part as the team has always focussed on the utility-centric aspect of blockchain technology.

NEM’s NIS1 blockchain has many firsts to its credit. It was one of the distributed ledgers to enable the proof-of-stake consensus mechanism. NIS1 also introduced the concept of non-fungible assets, supply chain applications for luxury products, and in-built multi-sig features.

Also amongst other utilities introduced were simplified multi-sig, in conjunction with compliant tokenization, that enabled advanced asset management. The NIS1’s community-led early involvement with supply chain solutions paved the way for the popularity of the NEM brand in logistics. From what it appears, NIS1’s most amazing, ingenious solutions, have always had something to do with enterprise use cases.

NEM came out as a result of a  grass-roots movement that originated from a Bitcointalk thread. And the NIS1 chain has acquired a dedicated and globally distributed community which has been the key driver of NEM’s network expansion. Symbol network is a composition of enterprise-ready solutions that have been built over the top of NIS1’s features, with dedicated improvements for commercial use cases. Symbol creates a focused utility for some of the most successful milestones of NIS1’s timeline.

Even though Symbol is indirectly pushing NEM to gain more exposure in the commercial world, the NEM community remains at the epicenter of a wider ecosystem. That’s why Symbol will be launched with NEM Hub, a social media-like ecosystem that can be exclusively accessed by a trustless proof of XEM ownership.

It has been launched through the use of Social Mining, a software product by DAO Maker, a leading European blockchain accelerator. The hub plays a pivotal role in ensuring that the enterprise-focused growth of NEM, via Symbol, does not interfere with the voice and power the community has had.

Rather, the NEM Hub has empowered the community to easily organize its efforts, voice and validate its perceptions in the community, and achieve an eased consensus towards the direction and growth of the NIS1 chain.

Symbol’s purpose is to create a public-private hybrid deployment by syncing with the NIS1 publish chain. While Symbol, the enterprise-ready network, will function as the private plugin, the community-led and -validated NIS1 chain will operate as an ever-strong public network.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

• Bitcoin has faced a strong correction over the past few days after peaking at $11,200 last week.
• At the recent lows, BTC traded for $10,200, meaning it had dropped over $1,000 from those highs.
• The coin now trades at $10,500 as of this article’s writing, technically in no man’s land.
• A trader thinks that the prevailing trend is still bullish because the cryptocurrency held a pivotal support level during the drop.
• Other signs also show that BTC is primed to continue its ascent as opposed to moving lower.
• There is the wild card of legacy markets throwing a wrench into Bitcoin’s trend, though.

The Silver Lining of the Recent Bitcoin Drop

Bitcoin has faced a strong drop over the past few weeks as legacy markets have also slowed their ascent. The coin is now down $1,000 from its local highs (set last week) and $2,000 below the year-to-date highs set in late August.

Despite the drop, an analyst thinks that Bitcoin remains in a structurally positive position from a medium-term timeframe. He shared the chart below on September 23rd, which shows that BTC has held the weekly support and 0.618 Fib level during the recent drop:

“$BTC #Bitcoin: Another bullish argument we can make here is the fact that we have held the weekly support at $10150 fairly well and is also confluent with the 0.618 Fib level where we bounced off strongly. Things don’t look too bad for now.”

Chart of BTC's price action over the past few months with a Fib level analysis by crypto trader Steve (@TheTradingTramp on Twitter).
Chart from TradingView.com

If this trader is to be believed, Bitcoin’s medium-term future is dependent on how it interacts with the low-$10,000s moving forward.

Stock Market Wild Card Could Throw Crypto Out of Wack

While the trader noted that Bitcoin’s technicals in and of themselves are not “too bad,” he added that a drop in legacy markets could send cryptocurrencies reeling:

“Obviously, if the whole world decides to take a dump again, we gonna dump too.”

Another commentator suggested that there are a number of reasons why legacy markets could continue trending lower after their strong rallies over the past few months. These include but are not limited to:

• A risk-off environment forming as the election nears due to uncertainity about who the victor may be and what policies they may impose.
• COVID is still not better, sparking fears of a further collapse in businesses as stimulus slows down.

Willy Woo, a prominent Bitcoin analyst, though, thinks that BTC’s correlation will soon begin to break with legacy markets. He did not give an exact timeline on this but noted that it could happen within the next few months.

Photo by Alex Azabache on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
The Crucial Silver Lining to Bitcoin's Recent $1,000 Drawdown

Belarus has become a hot ground of the great Bitcoin experiment as the country dwells into one of its most disturbing civil crisis.

Ask prices for the world’s leading cryptocurrency by market capitalization are going higher across peer-to-peer platforms. Data fetched from Paxful, a Bitcoin marketplace, show people demanding a $2,500 premium for one unit of the cryptocurrency. While the rates differ from one seller to another, the average Bitcoin price as on Friday stands near $13,000.

Bitcoin bids in Belarus and their dollar equivalent rates. Source: Paxful, Google

In contrast, the cryptocurrency is trading in the $10,500-$10,800 area in the US.

Protests

Belarus is now in the middle of a severe political and civil unrest. The country’s armed strongman Alexander Lukashenko has been sworn in as a recurring president amid ongoing mass protests against his 26-year dictate.

The 66-year old politician took the oath this Wednesday in a secret ceremony even as the people of Belarus and a section of global leaders called the elections that voted him to power “fraudulent.” Since then, hundreds and thousands of citizens have joined voices on the streets for his resignation.

Meanwhile, the ongoing political turmoil has left the Belarusian economy in a sad state. According to local reports, people have started withdrawing money from their bank accounts en masse. Meanwhile, blue-collar workers are going on strikes and IT companies are planning to migrate elsewhere.

“In the weeks since the 9 August presidential election, Belarusians have flocked to banks to withdraw their ruble deposits and convert them into dollars and other hard currencies,” reported Belarus Digest, a local daily.

The future looks meager, as well. Economists anticipate the Belarusian economy to suffer further as its central bank runs out of liquidity to support the national banks. Meanwhile, a lack of trust in the government would keep downside pressure on the Belarusian Ruble. It could happen as more and more people move out of the country or park their capital elsewhere.

Bitcoin Grows

It is the same period that has seen Bitcoin growing against the Belarusian Ruble, that too, by premium rates. That signals a massive shift towards the cryptocurrency as the civil unrest grows.

Pieces of evidence also come in the form of new Bitcoin-enabled initiatives in Belarus. A local nonprofit, BYSOL​, for instance, is currently helping people who were expelled from duties for protesting against the Lukashenko regime by paying them in Bitcoin. The group has raised about $2 million in donations so far.

Cases such as these also hope to alert other protestors about Bitcoin and its significant role in protecting themselves against any form of government-led crackdowns. That partially explains why its rates on Belaurisan p2p marketplaces went higher this week.

Bitcoin is up 50 percent on a year-to-date timeframe against the dollar. Source: TradingView.com

BTC/USD was trading at $10,694 at the time of this writing in the US markets.

The US dollar is on track for its most significant monthly performance since July 2019. But it continues to feel the pressure from its all-time bearish outlook.

Why?

A monthly chart of the US dollar index (DXY), a barometer to gauge its performance against a basket of top foreign currencies, shows the greenback in a lifelong downtrend. So it appears, the index has been trending lower inside a Descending Channel, as confirmed by more than two lower highs and lower lows.

DXY pulls back after testing the upper trendline of the giant Descending Channel. Source: TradingView.com

The purpled area shows a retest of the upper trendline for a breakout in March 2020, followed by a strong rejection.

It was not the US dollar’s first attempt to break over the Channel resistance; the greenback has been seeking a bullish move since 1985. Nevertheless, it has failed every time, with a few successful breakouts turning out to be fake.

The technical fractals alone leave the US dollar in a very bearish state.

It is also because of the greenback’s medium-term outlook. As the chart shows, DXY lately broke out of its prevailing Ascending Channel (black) to the downside. The index invalidated the support trendline that had helped it maintain its bullish bias since April 2011.

DXY pulled back by 2.38 percent so far into the September 2020 trading session. Nevertheless, the index showed signs of weakness near the Ascending Channel support, hinting that it could either consolidate ahead or move lower towards the ‘purple support’ as it has done in its 25 years of trading.

Bitcoin vs the US Dollar

A Bitcoin price chart (BTC/USD) looks an exact opposite of the one of the US dollar index.

BTCUSD looks prepared to continue its cyclical patterns upward. Source: TradingView.com

A younger asset, nevertheless, the world’s first decentralized cryptocurrency has logged two bullish cycles in the past, returning exponential gains of up to circa 886,000 percent. After setting a top near $20,000, BTC/USD has undergone a long consolidation trend but has traded near the upper trendline of its sideways channel.

Bitcoin’s relevance as an investable asset grows because of its scarcity. Speculators look at the cryptocurrency as their backup plan against the US dollar’s long-term bearish outlook. A majority of them are retail traders/investors whose savings have gone down due to the unlimited supply of the greenback.

The same trend is brewing after this year’s COVID pandemic. As the economic recovery slows down to dangerous levels, the Federal Reserve has committed to maintain ultralow lending rates and raise their inflation targets beyond their 2 percent benchmark.

The fundamentals ensure the US dollar will find it difficult to break above its purple resistance trendline in the months ahead. Meanwhile, flight to safety into Bitcoin could help it continue its long-term uptrend.

• Bitcoin has recovered after a strong decline earlier this week.
• After dropping under $10,200 just over a day ago, the cryptocurrency has sprung back above $10,500.
• The coin now trades at $10,800, having undergone a strong rally just a few hours ago.
• The coin is up around 5% in the past 24 hours, rising as the U.S. dollar’s rally begins to taper off.
• Some pin the rally on an ongoing expiry in the futures and options markets, which are likely causing traders to open and close positions.
• Whatever the case, analysts are attempting to determine what comes next for Bitcoin.

Move Liquidates Millions in Bitcoin Positions

Bitcoin’s recent move to the upside has resulted in millions of dollars worth of liquidations in the futures market for BTC.

According to Skew.com, around $12-15 million has been liquidated in the past 24 hours due to the move higher. Those are statistics for BitMEX’s Bitcoin futures market only. This suggests that there were likely dozens of millions more liquidated on other futures platforms and with other cryptocurrencies like Ethereum.

Data from ByBt suggests that the pump has not resulted in overleveraging on either side of the futures markets.

All leading Bitcoin futures markets, including BitMEX, OKEx, Huobi, and ByBit, all have neutral funding rates at the moment. This suggests that the price of the future is trading around the spot price, further cementing the idea that neither side is overleveraged.

This means that Bitcoin could continue to move higher sustainably, as long as the move is largely spot driven.

Bullish as BTC Retakes Key Levels

Analysts say the recent move higher was a bullish breakout as opposed to a bearish retest of resistance.

One analyst shared the chart below, pointing to how the recent rally may take Bitcoin above a crucial trend level around $10,550. Bitcoin retaking this level on a daily basis may suggest that the prevailing trend is bullish.

The chart shows that the cryptocurrency topped at that exact level on two occasions over the past year, suggesting it is a point to watch out for.

Bitcoin is primed to retake that level because as of the time of this article’s writing, one hour before the daily close, the cryptocurrency is sitting nearly $300 above that support.

Chart of BTC's price action over the past few months with analysis by crypto trader TraderKoz (@TraderKoz on Twitter). Chart from TradingView.com

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Shoots To $10,800: Here's What Analysts Think Comes Next

• Bitcoin has been caught in the throes of immense volatility throughout the past few days, with the cryptocurrency being unable to form a sustainable trend
• This has led investors to question what could come next for BTC, as it is still caught within the long-held trading range between $10,000 and $11,000
• That being said, the latest decline that sent the crypto reeling down from its $10,500 daily highs struck a blow to its technical outlook
• One analyst observed that this latest decline invalidated a key support that was previously bolstering one of his bull-scenarios
• Now that this level is broken, buyers have some serious work cut out for them if they want to catalyze further upside

Bitcoin and the aggregated cryptocurrency market have witnessed immense turbulence as of late, with BTC’s indecisive price action creating some chaos amongst altcoins.

The benchmark cryptocurrency may continue to lack a trend in the near-term, as its inability to find any stability seems to indicate that it will soon make a large movement in one direction or another.

While speaking about this possibility, one trader explained that he believes that the next move is likely to favor bears.

He specifically notes that one of the primary bullish scenarios he was watching was invalidated by Bitcoin’s latest decline. This is a grave sign that suggests downside could be imminent.

Bitcoin Continues Lacking a Trend as Bears Try to Take Control

At the time of writing, Bitcoin is trading up marginally at its current price of $10,350. This is around the price at which it has been trading at throughout in the time following its rebound from daily lows of $10,200.

Bears have been slowly pushing BTC lower over the past several days, but it has yet to test its critical support region between $9,900 and $10,000.

A continued defense of this area would be a bullish sign. Because of its firm downtrend sparked by its $11,200 rejection, a visit to this level may take place in the near-term.

Trader: One of BTC’s Main “Bullish Scenarios” has Been Invalidated

A popular cryptocurrency analyst offered a grim outlook on Bitcoin, noting that the recent price decline pushed its daily candle below $10,500 – which was a key support.

He said that this decline could indicate that further losses are imminent.

“BTC: I’ve had possible bullish scenarios on 3 timeframes going into this week: monthly, weekly, and daily. This invalidates the daily, I’ll still just chill and wait for the other two (due to them being more important) but that’s not necessarily a sign you wanna see as a bull.”

Image Courtesy of DonAlt. Chart via TradingView.

Unless Bitcoin rallies higher and recaptures this support, further downside could be imminent in the days ahead.

Featured image from Unsplash.
Charts from TradingView.

• Ethereum’s price action has been nearly identical to that of Bitcoin throughout the past couple of days
• This caused the crypto to dip as low as $318 yesterday, at which point buyers stepped up and catalyzed from strong momentum
• This pushed the cryptocurrency up to highs of $340, which is where it found some resistance
• ETH is now caught within a bout of sideways trading, and its price is offering few signs of clarity to investors
• One trader is noting that Ethereum is yet to visit one key liquidity region. This could indicate that it will soon see further losses

Ethereum and the entire crypto market have been put in a precarious situation throughout the past few days and weeks, with buyers being unable to maintain control following Bitcoin’s rejection at $11,200.

The intense selling pressure seen here slowed its ascent and caused it to reel down towards $10,200, taking Ethereum and other altcoins down with it.

Much like BTC, ETH was able to post a notable rebound from its recent lows and is now trading around the level at which it has been at throughout the past few days.

One analyst is noting that it has yet to tap a critical support region. This could indicate that further downside is imminent before a macro bottom is formed.

Ethereum Consolidates Following Overnight Rebound

At the time of writing, Ethereum is trading up nearly 5% at its current price of $335. This is around the price at which it was trading at prior to the recent selloff that led it to lows of $318.

The cryptocurrency has primarily been caught within a bout of sideways trading for the past few days, with bulls trying to figure out what comes next following the intense decline from its $390 highs.

Where it trends next will likely depend on Bitcoin, which is also caught within a consolidation phase.

Analyst: ETH has Yet to Reach Critical Support 

One analyst observed that Ethereum’s bedrock support exists within the lower-$300 region, and has yet to be tapped by the cryptocurrency.

As such, a visit to this level may be vital for the crypto to form a sustainable bottom that kicks off an uptrend.

“ETH / USD: We didn’t even get a chance to see this major buy zone before buyers once again step in a aggressively and defend price action, anything sub $320 and buys are confident. Would love to see a retest of $360 over the weekend,” he said.

Image Courtesy of Cactus. Chart via TradingView.

The coming few days should provide some insights into whether or not this level will be visited in the near-term.

Featured image from Unsplash.
Chart from TradingView.

• It has once again been a turbulent overnight trading session for Bitcoin
• The benchmark cryptocurrency plunged as low as $10,200 yesterday afternoon before bulls stepped up and slowed its descent
• The rebound from these lows led it to kick off a slight uptrend that has reversed the majority of yesterday’s losses
• Analysts are now noting that its near-term trend may depend largely a few key factors
• It is important to note that the majority of these factors are not currently working in BTC’s favor
• This could indicate that it will see a slow bleed down to its crucial support in the $8,000 region before it can rebound

Bitcoin is currently stuck within another consolidation phase, with bulls gaining control over its near-term trend following a sharp dip seen yesterday.

This dip led the crypto from highs of over $10,500 down to lows of $10,200, which is where bulls began providing BTC with some serious buying pressure.

The rebound from here has been promising, with its price now sitting around $10,400 as buyers take aim at recapturing its daily highs.

Despite the bullish response to yesterday’s dip, Bitcoin may still be in a precarious position.

One analyst observed that there are several factors currently counting against bulls. He specifically noted that a slow bleed down towards $8,500 could be imminent.

Bitcoin Struggles to Maintain Momentum as Bulls Gaurd Against Downside 

At the time of writing, Bitcoin is trading up just over 1% at its current price of $10,400. This is around the price at which it has been trading at throughout the past few days.

The cryptocurrency has been unable to garner any decisive momentum in recent weeks, with sellers being in firm control in the time following the $11,200 rejection.

Although the lower-$10,000 region is acting as strong support – as indicated by yesterday’s dip, there’s still a chance that further downside is imminent.

Analyst: These Simple Factors Spell Trouble for BTC 

While speaking about Bitcoin’s near-term outlook, one analyst explained that while Bitcoin’s funding/premium is negative, its MFI is drying down, the US Dollar Currency Index is trending higher, and there’s unswept liquidity below.

He notes that the latter of these three factors indicates that serious downside could be imminent in the days and weeks ahead.

“Bitcoin: Funding + premium negative [check] MFI drying down [x] DXY up [x] Unswept liquidity below [x]. Simple: Historically no big nukes on negative funding but BTC is likely to bleed down with traditional markets. $8800-$8550 is get 10 loans and all in area.”

Image Courtesy of Mac. Chart via TradingView.

Unless bulls step up and catalyze a sharp move higher that invalidates Bitcoin’s current weakness, further downside may be imminent.

Featured image from Deposit Photos.
Charts from TradingView.

Bitcoin price may have snapped back below $11,000 and is struggling to maintain the all-important support level of $10,000, however, its showing more “relative strength” than gold currently. That statement is from outspoken crypto bull Max Keiser, who in the past has predicted the leading cryptocurrency by market cap will reach prices of $400,000 or more. 

Is Keiser correct, or is the Bitcoin backer simply wearing rose-colored glasses when it comes to the cryptocurrency?

Max Keiser Says Crypto Is Showing Solid “Relative Strength” Versus Gold

This year has been a wild rollercoaster ride across all markets. After an enormous drop on Black Thursday, markets have been steadily climbing higher, but have recently started to slow and chug along. What typically comes next in any form of the popular amusement park ride, would be the final shocking drop before the ride starts again.

The fall has started but most assets have taken a pause. Bitcoin is thus far holding above $10,000, while the safe haven asset it is said to share similarities with has struggled comparatively.

Both Bitcoin and gold have since pulled back significantly from local 2020 highs, but one asset is showing more “relative strength” than the other, according to Max Keiser.

RELATED READING | BITCOIN AND GOLD CORRELATION LEADS TO MATCHING CUP AND HANDLE PATTERNS

Keiser, from The Keiser Report, is a staunch Bitcoin believer and one of its most outspoken supporters. He regularly comments on his beliefs related to the cryptocurrency industry and the rest of the world of finance.

Keiser, expects Bitcoin to ultimately reach prices of $400,000 or more, but is he right about the crypto asset holding stronger in current market conditions compared to the precious metal?

#Bitcoin showing good relative strength vs Gold during this pullback as $USD strength continues to frustrate bulls

— Max Keiser (@maxkeiser) September 23, 2020

Relative Strength Index Proves Bitcoin Is Beating The Precious Metal At Its Own Game

Thanks to technical analysis, Keiser’s theory can be put to the test. Keiser claims Bitcoin’s “relative strength” is good compared to gold’s, and he is right.

The Relative Strength Index is a trend strength measuring tool created by J. Welles Wilder Jr. Wilder also created several other of the most popular trading tools used today, including the Parabolic SAR, and Average Directional Index.

RELATED READING | GOING DIGITAL: BITCOIN BEATS GOLD AND SILVER IN YEAR-TO-DATE RETURNS

The RSI, for short, can signal when an asset is oversold or overbought. According to the charts below, Bitcoin has recovered from oversold conditions far more sharply than gold has. Gold also reached significantly more overbought and oversold conditions that Bitcoin did.

BTCUSD Versus XAUUSD Relative Strength Index Comparison Chart | Source: TradingView

The leading cryptocurrency by market cap’s price action also shows consecutive higher lows, while XAUUSD has set a lower low on daily timeframes.

Charts don’t lie, and while Keiser is undeniably a Bitcoin bull through and through, he’s 100% correct about the crypto asset holding strong a lot better than gold, the original safe haven asset.

Featured image from DepositPhotos, Charts from TradingView

Decentralized finance has been crypto’s defining motif this year, thanks in no small part to the ascendance of token mining solutions popularly known as yield farming. However, despite billions of dollars of crypto assets being locked into DeFi protocols, it has still to be determined whether decentralized finance can realize the lofty goals that inspired its creation, like banking the unbanked and providing greater financial inclusion.

What’s beyond dispute is that the legacy financial system crippled by excessive regulations and distorted by extremely loose central banks’ monetary policies is badly in need of disruption. And this is where hybrid solutions that leverage the best aspects of the centralized and decentralized worlds can play an important role. One such provider that straddles both domains, CeFi and DeFi, is Bitrue.

Enter Bitrue

Bitrue is a reputable financial management platform with a solid user base in Europe and Southeast Asia. Founded in 2018 by a group of crypto enthusiasts led by current CEO Curis Wang, Bitrue started out as a cryptocurrency trading platform initially focused on Ripple’s XRP as one of their base currencies, and the platform still plays a prominent role in the XRP ecosystem. At the moment, it processes the second-highest volume of trades in XRP, more than 15%, and supports a wide range of XRP-denominated trading pairs.

Curis Wang, Bitrue’s CEO believes that Bitrue’s hybrid solution can create a balanced DeFi/CeFi paradigm

Bitrue’s exchange also features a range of other trading pairs in carefully selected assets with a total daily trading volume of around $300 million. The Bitrue platform has 543,000 active traders and 1.62 million registered users. In year-to-year terms, Bitrue’s community has grown by 330% and its daily trading volume by 620%.

Importantly, while trading remains a core functionality of the platform, it has been rapidly expanding to the world of crypto finance. In particular, Bitrue has for some time allowed users to take collateralized crypto loans and earn interest on their crypto via the pioneering PowerPiggy program. The latter currently supports 26 different coins and loans can currently be taken in USDT, BTC, XRP, or ETH.

Bitrue Makes Its DeFi Play

Recently, Bitrue has revealed that the platform will switch from a purely centralized (CeFi) model of crypto lending and investment to a hybrid model containing both centralized and decentralized components. The first DeFi component that is planned for rollout in Q1 2021 is a peer-to-peer matching engine for borrowers and lenders. Bitrue’s DeFi ecosystem will be powered by the recently created Bitrue Finance (BFT) token. The first round of the token distribution has already taken place via a pre-sale and public sale and the token is now trading on Bitrue. The platform’s original native token (BTR) will continue to be used for its current purposes, such as allowing traders to pay less in exchange fees and receive higher interest rates in PowerPiggy, etc. 

Bitrue is also planning to launch its liquidity mining program by the end of October. It will make it possible for users to earn rewards in BFT and other tokens for providing liquidity to the relevant liquidity pools. In contrast to pure DeFi yield farming, Bitrue Liquidity Mining will be much easier to use and accessible even to newcomers to crypto finance. Users will be able to just deposit their coins for a certain period and receive rewards without the need to interact with several different protocols themselves.

Whether you are interested in highly secure and easy-to-use crypto trading and financial services, or a battle-hardened yield farmer, you will find options to explore within the Bitrue ecosystem. The platform is proof that DeFi’s growth doesn’t have to come at the expense of CeFi and vice-versa: the two can co-exist via hybrid solutions that combine the best of both worlds.

Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.

• Bitcoin is technically in no man’s land a number of analysts have said after the crypto’s recent drop.
• The cryptocurrency, in fact, is below the $11,000 resistance, where BTC was rejected last week.
• Bitcoin is also above the support of the low-$10,000s, where a number of bounces have taken place over recent weeks.
• Four key market data points suggest that BTC will soon resume its ascent, though.
• There are also on-chain trends observed by a number of analysts that suggest Bitcoin’s prevailing trend is a bullish one.

The 4 Reasons Why Bitcoin May Continue Its Upward Ascent Soon

Since peaking at $12,500 late last month, the leading cryptocurrency has traded in a steep downtrend. The coin remains down $2,000 below those highs despite already bouncing by around $700 from local lows.

There are crucial market data points, though, that suggest that Bitcoin will continue its ascent in the near future. A crypto technician recently outlined these reasons in a Twitter thread:

• Bitcoin’s Fear and Greed Index has dropped to a level of “Fear” after reaching extremely high levels of greed in August. The index is calculated through a variety of data sets, including market sentiment, volume, social media trends, and more. Analysts think that this works as a sort-of counter-indicator, reaching levels of Extreme Greed when a top is near and vice-versa.
• Bitcoin is currently trading in backwardation, meaning that the price of futures for this market is below the actual spot price. According to the chart below, periods of backwardation are often seen prior to the cryptocurrency rallying higher.
• The funding rates of BTC futures markets are currently in the red or at neutral levels. This is similar to the last point in that whenever they are in the red or neutral, rallies are to be expected.
• There is a cluster of Bitcoin short liquidation levels above BTC’s current price, which the market will likely gravitate towards in the near to medium term.

Chart of BTC's price action since the start of July with a Contango Index analysis by crypto trader Byzantine General (@Byzgeneral on Twitter). 
Chart from TradingView.com

On-Chain Data Agrees With This

On-chain data agrees with the bullish sentiment shared  by the aforementioned trader.

Willy Woo, a prominent on-chain analyst, recently commented:

“Another impulse of coins changing hands has completed, the next directional move over the coming weeks is likely upwards. It’s very unlikely we’ll see any kind of a catastrophic dump in price from here.”

Other on-chain trends such as the strength of Bitcoin miners, measured through the hash rate and network difficulty, also suggest a macro bullish backdrop to cryptocurrencies.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
These 4 Trends Show That Bitcoin's Likely to Move Higher After 20% Drop

• Bitcoin’s price action has not been encouraging for bulls as of late
• Following a short-lived bout of trading above $11,000, the cryptocurrency ultimately faced a harsh rejection at $11,200
• The decline from these highs has been intense, leading the cryptocurrency to slide down to lows of $10,400 that were revisited this morning
• BTC now appears to be caught within a trading range with a lower boundary at $10,400 and an upper boundary around $10,600
• Traders are now noting that where the market trends next may depend entirely on whether Bitcoin can continue holding above one crucial level 

Bitcoin and the entire cryptocurrency market have lacked some directionality as of late, with bears putting a firm end to the recent market-wide bull cycle.

Some investors now fear that this consolidation phase has marked the end of the market-wide uptrend and could indicate that further downside is imminent in the days and weeks ahead.

That being said, analysts are still optimistic that bulls could easily regain control over the cryptocurrency’s trend.

Multiple analysts are now pointing to the region between $10,000 and $10,500, noting that any high time frame closes above this area could provide bulls with a serious boost.

One trader is noting that he anticipates it to see some serious upside in the days and weeks ahead.

Bitcoin Consolidates as Bear and Bulls Reach an Impasse

At the time of writing, Bitcoin is trading up marginally at its current price of $10,550. This is around where the cryptocurrency has been trading at throughout the past few days and weeks.

Bulls and bears have both been unable to garner clear control over the cryptocurrency’s outlook, and there’s a strong possibility that further consolidation could persist in the near-term.

The two levels to watch in the short-term are $10,400 and $10,600. These mark the lower and upper boundaries of the trading range formed throughout the past couple of days.

Analysts: BTC Could See Serious Upside if Bulls Defend Crucial Level 

While speaking about Bitcoin’s near-term outlook, one trader observed that a high time frame close above $10,500 would keep his bull bias intact for the time being.

“I’m still major bullish on BTC. We could dip much further and still look great HTF. If this is the beginning of a bull run, which I think it is, zoom out and buy big dips. $10k-$10.5k is key support anything below there is ideally a wick, HTF closes above for ultra bull case.”

Another trader offered a similar sentiment, adding that he would like to see “Bitcoin back above $10,600” be he “starts to feel good about it.”

That being said, the strength bulls have expressed in the face of massive selling pressure as of late is a positive sign.

Featured image from Unsplash.
Pricing data from TradingView.

• Ethereum and other altcoins have been struggling to garner any strong momentum following the massive declines posted earlier this week
• This weakness came about as a result of Bitcoin’s rejection at $11,200, which is a level analysts have been watching
• Until BTC’s macro outlook begins growing more positive, Ethereum will likely continue struggling as well
• That being said, some positive technical developments in the coming months could help boost its outlook
• One analyst is noting that he expects ETH to drag down towards $280 before it finds any significant support
• He also notes that this may be where a confluence of technical strength and news-based developments push it significantly higher

Ethereum and the aggregated cryptocurrency market have been caught within the throes of volatility as of late. Much of this has come about as the result of Bitcoin’s price action.

Despite holding above its key resistance at $380 for an extended period of time, ETH’s inability to push towards $400 made buyers lose faith in its near-term outlook.

In the time since declining from the upper-$300 region, the cryptocurrency has been hovering between $335 and $345. Each visit to either of these levels has been followed by a rapid move in the other direction.

One analyst doesn’t expect this sideways trading to continue. He believes that ETH may push down towards $280 before finding enough support to boost it higher.

Ethereum Consolidates Alongside Bitcoin and Crypto Market

The entire cryptocurrency market is currently trading sideways.

At the time of writing, Ethereum is trading down marginally at its current price of $341. This is around where it has been at for the past several days and weeks.

Similarly, Bitcoin has also been trading sideways around $10,500. Until BTC gains some decisive momentum in one direction or another, it is unlikely that Ethereum will be able to break out of its current range.

Analyst: Here’s How Low ETH May Drop Before Rallying Higher 

While speaking about where Ethereum may trend in the near-term, one analyst explained that he anticipates it to see a slide down to the $250-280 region before it finds any strong support.

He notes that the dip to this region may occur around the time when hype for ETH 2.0 begins building, with this support acting as a launchpad for further gains.

“This is the dream: $250-280 to build position. Eth 2.0 catalyst and continuation all of 2021,” he said while pointing to the chart see below.

Image Courtesy of Pentoshi. Chart via TradingView.

The coming few days should provide investors with insight into the market’s near-term outlook, as Bitcoin’s trend will likely guide that of Ethereum and other altcoins.

Featured image from Unsplash.
Charts from TradingView.

• Bitcoin is currently caught within an incredibly tight bout of sideways trading, with its price mainly hovering around $10,500 for the past couple of days
• Overnight, bears did attempt to spark a sharp downside move when they pushed the crypto as low as $10,400
• This dip was fleeting, as bulls quickly propelled it back up to its current price level
• BTC’s inability to form a decisive trend comes as it trades between two crucial levels – its bedrock support at $10,000, and its heavy resistance at $11,000
• Which of these levels is broken first should offer significant insights into its near-term trend

Bitcoin and the entire cryptocurrency market are currently lacking direction. While BTC hovers within the mid-$10,000 region, most altcoins are also consolidating as investors closely watch to see how the benchmark crypto trends next.

While speaking about the cryptocurrency’s current market structure, one analyst observed that the rejections it has posted with each attempted rally may indicate that downside is imminent.

He put forth a chart that specifically seems to indicate that a decline down towards its range lows at $9,800 is imminent.

This decline would strike a serious blow to the crypto’s near-term outlook, and a loss of this level could catalyze a far-reaching downtrend.

Bitcoin Continues Consolidating as Bulls and Bears Reach an Impasse

At the time of writing, Bitcoin is trading down marginally at its current price of $10,500.

This is around where it has been trading throughout the past couple of days, with each attempt to rally higher or break lower being thwarted. This has created an intense consolidation phase, and it still remains unclear as to just how long it may last.

There are many hurdles in front of the cryptocurrency at the moment, with the selling pressure between $11,000 and $11,300 proving to be insurmountable on multiple occasions.

It remains unclear as to what could spark a movement past this level.

Analyst: BTC’s Market Structure Rapidly Beginning to Favor Bears

While speaking about Bitcoin’s short-term technical outlook, one analyst observed that a sweep of its range highs following an aggressive downwards move indicates that further losses are imminent.

The chart he puts forth indicates that this extension of its downtrend may lead it towards $9,800.

“BTC: A sweep of the highs after an aggressive down move is a high probability short towards unswept lows. Invalidation above local range high,” he explained.

Image Courtesy of George. Chart via TradingView.

How Bitcoin trends in the near-term will have major implications for the rest of the cryptocurrency market, with altcoins mostly consolidating as they await some guidance.

Featured image from Unsplash.
Chart via TradingView.

Bitcoin was built and designed to be directly opposed to the dollar in every way. In a sense, it is its destiny to trade against the dollar until it meets its untimely demise. That demise could very well be beginning thanks to the pandemic, and its fall from glory could also fuel a future where Bitcoin takes its throne.

Here’s what that could look like from a technical analysis perspective.

DXY Dollar Currency Index Short-Term Reversal Failure Could Lead To Devastating Breakdown

The dollar is one half of every most dominant Bitcoin trading pair on every top crypto exchange. The same goes for nearly every other asset globally, from stocks to gold, and even other nations’ currencies.

The dollar has been the global reserve currency over the last 100 years. It is the currency in which all exchange rates are based on.

RELATED READING | BLOOMBERG: BITCOIN “SHOULD BE A PRIMARY BENEFICIARY” POST PANDEMIC

Bitcoin has been pitched as someday having the potential to take that role away from the almighty dollar, but such a scenario seems incredibly far off.

The two assets are at an important junction. Bitcoin is retesting support at $10,000 just as the DXY Dollar Currency Index appears to be staging a reversal. A rounding bottom formation and a complex inverse head and shoulders pattern suggest that the dollar is due for a rebound.

DXY Dollar Currency Index BTCUSD Short-Term Reversals | Source: TradingView

But just as the dollar begins to bounce on daily timeframes, its touching downtrend resistance, and Bitcoin is retesting its “meme” downtrend line.

The DXY chart above with Bitcoin price action superimposed shows how the two assets move in inverse. If, for some reason, DXY gets rejected at this red, dotted downtrend line, Bitcoin could soon soar.

Zooming out further shows that the dollar’s downhill decent could be a lot deeper than most are expecting, and it could also provide the fuel for the crypto asset to begin its next bull run.

DXY Dollar Currency Index Rising Wedge Breakdown and Retest | Source: TradingView

The Greenback’s Downside Target Lays Path To Bitcoin’s Next All-Time High

The DXY Dollar Currency Index is a weighted basket of top forex currencies trading against the dollar, but it does a great job depicting the overall health of the dollar long term.

Zoomed out to monthly timeframes, the dollar’s “rebound” looks to be a bearish retest of a lost support line, now acting as resistance. The massive, two-decade-long pattern is breaking down, similarly to the previous, two-decade-long rising wedge that broke down at the turn of the millennium.

A drastic collapse in the dollar from here could lead to a future where Bitcoin is king.

DXY BTCUSD All-Time High Correlation Chart | Source: TradingView

Examining the current rising wedge pattern on monthly DXY price charts and comparing it with Bitcoin’s lifecycle, the results are shocking.

Bitcoin was born just as the dollar was getting its footing from the Great Recession fallout, then the crypto asset’s next two major peaks coincided perfectly with each significant plunge in the DXY.

Measuring the distance between each significant crash in the DXY and top in Bitcoin projects the next top in the crypto market to be put in around January 2022.

Following that, another peak would mark the bottom of the move in the DXY and the cryptocurrency’s next peak in February 2026.

RELATED READING | WHY THE UPCOMING US ELECTION IS BITCOIN’S BIGGEST RISK

The drop in the dollar every four years appears to match up well with Bitcoin’s halving-based valuation theories, like the stock-t0-flow model, which predicts the cryptocurrency’s price to spike any day now as a result of diminished supply.

If the DXY Dollar Currency Index turns around here and falls deeper, the stage is set perfectly for Bitcoin’s next bull market. Perhaps even for the asset to become the next global reserve currency, as many claim it will eventually be.

Featured image from DepositPhotos, Charts from TradingView

Powered by

Every week, IntoTheBlock brings you on-chain analysis of top news stories in the crypto space. Leveraging blockchain’s public nature, IntoTheBlock’s machine learning algorithms extract key data that provide a deeper dive into the major developments in the industry. 

This week we cover the recent regulatory approval of stablecoins in the U.S. and its implications. As well, we take a look at some fascinating insights that highlight the massive impact of Uniswap’s UNI token distribution. 

Stablecoins Receive Major Stamp of Approval

Stablecoins’ role within the crypto space has become increasingly important. While they have had their controversies, they serve the need of transferring value on-chain without being prone to the same volatility of most crypto-assets.

As covered in Decrypt, the Office of Comptroller of the Currency (OCC) issued a report in which it states that they will allow American banks to hold reserves for stablecoins. While this may not sound like a breakthrough at first, it does clarify the regulatory framework regarding stablecoins in the U.S.. This is the second positive development coming from the major regulatory entity, as earlier in the summer they allowed banks to legally offer crypto custody services.

This regulatory clarification and approval incentivizes more traditional financial institutions to work with stablecoin projects. It may not happen overnight, but at some point big American banks are likely to start holding reserves backing stablecoins. With demand for stablecoins steadily growing, it would not be surprising if this happens within a year or two.

Analyzing on-chain insights, we can observe just how significant this growth has been, and have a better idea of where they may be heading in light of the recent regulatory stamp of approval. Let’s start by looking at the daily transactions volume that Tether — the largest stablecoin — processes:

In the past two years, on-chain volume recorded for Tether transactions on Ethereum has grown from $500,000 per day to over $3.5 billion per day, a 7000x increase. This has led the stablecoin to consolidate itself as the third-largest cryptocurrency by market, and to surpass the daily volumes transacted in Bitcoin and PayPal. With demand for Tether and stablecoin transactions growing at such rates, it is very likely that banks will want to start holding their collateral to benefit from this trend. 

By tracking stablecoin deposits and withdrawals to and from exchanges, we can have a better idea what type of activity they are being used for. IntoTheBlock’s Net Flows indicator measures money flowing into exchanges minus the money flowing out of them to calculate the net amount entering/leaving exchanges. In the graph below, we can see that Net Flows have been consistently negative for Tether. 

This points to Tether outflows from exchanges being greater than the Tether being deposited into exchanges. As a matter of fact, large centralized exchanges have seen a net outflow of $6.8 billion in Tether so far in 2020. This suggests that stablecoins are being used mainly as a transfer of value, rather than to trade crypto with them. As well, it is likely that a significant portion of this has been allocated into DeFi protocols where users are able to passively earn high yields. 

With demand for Tether skyrocketing, public perception for it has improved too. By looking at IntoTheBlock’s Twitter sentiment, we can see that negative sentiment towards Tether has eased off in 2020.

In the summer of 2019, tweets that were classified as having negative sentiment consisted of a third of the total. This number has since dropped to around 5%. At the same time, the total number of mentions for Tether and positive sentiment have increased. This highlights how public perception of the largest stablecoin has changed as it’s being used more. 

With the recent FinCEN files scandal disclosing $2 trillion worth of dirty money being funneled by banks, it is reasonable to believe that more transparent alternatives such as stablecoins will keep getting traction. Up until this point, most stablecoins have likely been used within crypto. The OCC’s approval for banks to hold stablecoin reserves could be a first step before more traditional institutions start using stablecoins.

Key Insights Behind UNI’s Distribution

Uniswap users received a pleasant surprise last Thursday when the popular decentralized exchange (DEX) distributed 15% of their UNI governance tokens to all users that interacted with the protocol prior to September 1. At an initial price of approximately $3, Uniswap airdropped $450 million worth of UNI tokens. 

While airdrops in crypto are nothing new, this has thus far been the airdrop where the largest dollar amount has been distributed. Another key difference versus airdrops that took place in 2017-18 is that UNI was distributed to existing users and supporters of Uniswap, whereas most airdrops simply reward holders of another token or users of a specific wallet. 

The impact of UNI release had a strong impact in the Ethereum blockchain. UNI’s distribution took Ethereum fees to a new level, approaching $1 million per hour shortly after users were able to claim their free governance tokens.

Within five hours, hourly fees nearly went 10x up, from just over $100,000 to over $900,000. This is the highest Ethereum fees have been on a per hour basis all year. 

The spike in fees is due to high demand for limited Ethereum blockspace. As a result, gas fees stood between 500 to 700 Gwei for several hours, also one of the highest levels seen all year. 

Despite the high fees, Uniswap users still rushed to claim their UNI tokens. This is likely the main reason why the number of ETH transactions surpassed 1.3 million the day UNI was released.

The UNI distribution marked a new yearly high in terms of Ethereum transactions, and the second highest level seen all-time. Now let’s look into activity within the UNI token. 

By looking at the number of addresses holding UNI, we observe that it instantly attained widespread distribution. With over 80,000 holders within 48 hours, UNI became the second most held DeFi token only behind LEND (excluding stablecoins and oracles).

Based on Uniswap’s official announcement, there were just over 250,000 user addresses eligible to claim their free UNI. Although some of these addresses have yet to claim their UNI, it appears that most simply sold. By looking at zero balance addresses — addresses that transferred out all of their tokens on a given day — we can confirm that most UNI claimers either sold or transferred all of their stake immediately.  

With $450 million worth of tokens freely distributed to previous users, it may come as no surprise that UNI sparked high Ethereum fees and transaction activity. Within a week of its inception, UNI has already amassed strong transaction activity and reached the second highest holder base out of DeFi tokens despite most users selling their tokens. Ultimately, Uniswap’s UNI release has been one of the most impactful events to occur in Ethereum in 2020.

This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.

This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. 

The views and opinions expressed in this article are the author’s own and do not necessarily reflect those of CoinMarketCap.

The post Stablecoin Stamp of Approval & Inside UNI’s Distribution: A Data Perspective by IntoTheBlock appeared first on CoinMarketCap Blog.

Bitcoin has undergone a strong rejection over recent weeks. The coin, after peaking at $12,500 in August, dropped as low as $9,800 earlier this month. The coin now trades at $10,400 — still over $2,000 below the year-to-date highs.

While this was a steep drop, not everyone thinks that this is it for Bitcoin’s bull trend.

Bitcoin Holds Crucial Macro Level

One crypto trader recently shared the chart below on September 22nd, noting that Bitcoin is actually holding a crucial macro trend level, even after the plunge. As the chart below shows, Bitcoin held the blue cloud indicator multiple times during 2017’s bull market and previous uptrends.

BTC doing so now suggests that the prevailing macro trend is still bullish.

Chart of BTC's price action over its lifespan with an analysis by crypto chartist Bitcoin Jack (@BTC_JackSparrow on Twitter). 
Chart from TradingView.com

Another trader also identified that Bitcoin has held a pivotal macro level despite the drop. This individual shared the chart below after the weekly chart, which shows that BTC printed two wicks at the middle Bollinger Band — a pivotal trend for bulls.

Chart of BTC's price action over the past year or so with a Bollinger Bands analysis by crypto trader Big Chonis Trading (@BigChonis on Twitter). 
Chart from TradingView.com

The trader that shared the first-mentioned chart is one that has been historically accurate.

When Bitcoin dropped to the low-$3,000s in March, there was one trader that said that the cryptocurrency was poised to undergo a V-shaped reversal to $10,000 by May or June. The cryptocurrency did just that when it surged to $10,000 in May, satisfying the prediction.

Legacy Markets Could Push BTC Below Crucial Levels

While Bitcoin is holding key technical levels, weakness in the legacy markets could push the cryptocurrency even lower.

Both Bitcoin, the stock market, and gold topped around the same time a number of weeks ago. It seems to be that the price action of legacy markets, namely the dollar, is dictating the overall directionality of BTC and cryptocurrencies.

This means that if the stock market continues to correct, so should the cryptocurrency.

Willy Woo, an on-chain anlayst, though, thinks that this correlation could eventually break.

“SPX looking very weak, if that plummets, I’ll go out on a limb as say BTC will decouple in coming months. Post halvening and reduced derivative trading volumes fundamentally reduce BTC’s sell pressure against bullish fundamentals of an anti-inflationary hedge.”

When Bitcoin does this, though, if at all, remains to be seen.

Photo by Steven Roussel on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Despite $2,000 Drop, Bitcoin Is Holding a Critical Macro Level

• Chainlink has plunged since setting highers in August.
• The coin now trades at around $8.50 as of this article’s writing, far below the all-time highs set at $20.
• The cryptocurrency’s correction comes after leading altcoins underwent a strong plunge after Ethereum fell through key supports.
• Chainlink could be vulnerable to an even deeper drop as the crypto approaches pivotal technical levels.
• One trader noted that if LINK will bounce, it will find some support around now.
• This bearish assertion comes as a number of other analysts have said Chainlink is likely bottoming on a macro time frame.

Chainlink Is Poised to Drop Even Further If This Level Is Lost

One crypto trader thinks that if Chainlink (LINK) slips any lower after dropping over 50% from its all-time high, a strong drop could ensue. He shared the chart below just recently, noting that the cryptocurrency is currently running up against a crucial level of support that marked the highs of a rally in July.

The historical importance of that level suggests that if LINK loses it as support, a strong correction will follow.

“Yikes. If there’s any short-term saving grace for Chainlink, it’s here imo. A bounce towards $9.50-10 is reasonable.”

Chart of LINK's price action over the past few months with analysis by crypto trader and chartist Loma (@LomahCrypto on Twitter).
Chart from TradingView.com

This was echoed by another market commentator who noted that the cryptocurrency is coming up against a “giga” support level that should hold or else things will get “ugly” for the coin.

“Chainlink at absolute Gigasupport. Link marines have an opportunity to save LINK from the giga nuking. Below $8.50 would probably get pretty ugly, as everyone from the last month and a half would be underwater…”

Strong Fundamentals

Featured Image from Shutterstock
Price tags: linkusd, linkbtc
Charts from TradingView.com
After 50% Drop, Chainlink (LINK) Is Reaching a Do or Die Technical Level

Bitcoin is laggingly tailing the gold chart trends, and it may face trouble for its delayed correlation.

That is due to the precious metal’s latest breakdown move, wherein the price broke out of a Symmetrical Triangle pattern to the downside. Incidentally, Bitcoin is now consolidating inside a similar technical structure, and one analyst predicts it would break bearish just like gold.

“Since the COVID Crash of March 2020, it is apparent that gold has been leading Bitcoin,” the TradingView.com contributor wrote in his analysis, placing their performance against each other to prove the correlation theory.

Bitcoin-Gold trend comparison since March 2020, presented by Trader_Johnni. Source: TradingView.com

As shown in the chart above, the Gold bull run in March 2020 started before Bitcoin. The precious metal’s consolidation move in April 2020, too, paved the way for Bitcoin’s sideways trend that began in May 2020. Even the gold’s record high appeared more than a week before Bitcoin’s yearly one.

That left the analyst with ample evidence about a potential breakdown in the cryptocurrency market. The reason is simple: Gold has done the same after breaking bearish on its Symmetrical Triangle.

Studying Symmetrical Triangles

A Symmetrical Triangle is a continuation pattern, confirmed by two converging trendlines forming at least two lower highs and higher lows. It means that the price would likely undergo a breakout in the direction of its previous trend – though that is not always the case.

Both Bitcoin and gold formed a Symmetrical Triangle after rallying exponentially from their mid-March nadirs.

That would have ideally resulted in a bullish continuation trend. But the breakdown move on the gold charts invalidated the upside expectations. Therefore, the metal and the cryptocurrency are now targeting lower levels for a potential pullback.

Technically, the breakout target of a Symmetrical Triangle is as much as its maximum height.

Bitcoin setup per the Symmetrical Triangle pattern. Source: TradingView.com

With gold breaking down, it now has a likelihood of trimming another $300 off its exchange rate – at most. Meanwhile, Bitcoin could fall by around $2,500 more, bringing its downside target somewhere near $7,800.

And the fundamentals agree.

Stronger Dollar, Delayed Stimulus, Weaker Bitcoin

The US dollar has lately put downward pressure on safe-haven and risky markets both. Its rebound from the two-year low reduced bids for Bitcoin, gold, and stocks, causing them all to correct lower in tandem.

US Dollar Index (DXY) is up 1.25 percent on a week-to-date timeframe. Source: TradingView.com

A delay in the dispatching of the second COVID stimulus by the US Congress led investors spend-less-save-more strategy. Prospects of lesser-than-expected dollar liquidity increased its demand in the short-term, hurting other assets simultaneously.

Analysts think there won’t be a stimulus package until the US presidential elections in November. That would ensure Bitcoin and gold trades in sync in the coming sessions, with a downside bias.

Bitcoin faces the prospects of breaking below $10,000 after failing to extend a rally that pushed its price up by 70 percent earlier this year.

Bitcoin is maintaining support above $10,000. Source: TradingView.com

Here are the top three risks the cryptocurrency is facing as it heads towards the fourth and final quarter of 2020, according to the latest fractals and multiple observations.

#1 Another US Equity Selloff; Bitcoin Correlation

One of the main reasons Bitcoin faces the risks of falling in the coming sessions is the equity market. The cryptocurrency earlier traded higher when the US stocks were doing the same. It also fell alongside the top Wall Street indexes: the S&P 500, the Dow Jones, the Nasdaq Composite.

That made the US equity market an excellent barometer to gauge Bitcoin market sentiments. Even recently, the downside correction in the seemingly overbought tech stocks laggingly coincided with a similar plunge across the cryptocurrency index.

Charles Edwards, the head of the crypto-focused Capriole Fund, recognized the correlation in his Wednesday tweet, stating that uncertainty in risk-off markets is keeping Bitcoin from hitting new higher levels.

Fundamentally, Bitcoin is dirt cheap right now.

The only thing holding it back is risk-off uncertainty and related stock market correlation.

This won't last forever though.

— Charles Edwards (@caprioleio) September 22, 2020

A move into cash is the likely outcome. The same had happened during the March 2020’s infamous global market rout, wherein Bitcoin and stocks crashed in tandem but the US dollar grew as investors treated it as their safest haven.

If the scenario repeats, then it will put further bearish pressure on Bitcoin. That would lead the cryptocurrency to lower below $10,000.

#2 Delay in Second Stimulus Check

As stated above, a strengthening US dollar could put further downside pressure on Bitcoin. Analysts believe that the greenback might extend its recovery after crashing to its 27-month nadir in late-August. Part of the reason is an ongoing delay in the second coronavirus stimulus package.

While I'm bullish on Crypto and #Bitcoin I am bearish overall on US stocks. So unfortunately I think stocks dropping will bring those down with it. Election coming up, no stimulus passed yet, US dollar going up, etc. An increase of inflation would be bullish for #Bitcoin though.

— IncomeSharks (@IncomeSharks) September 22, 2020

The Democrats and the Republicans are at a standoff over the size of the next financial aid to American households, businesses, and individuals battered by the COVID-19 pandemic. Both are still $1 trillion apart in their spending plans, raising worries among investors about a resolution anytime earlier.

Meanwhile, the delay in the stimulus check is prompting Americans to save more and spend less. As the flow of the US dollar becomes more viscous, it also reduces the demand for other assets. That serves as one reason behind the recent selloff in gold, stock, and even Bitcoin markets.

US Dollar Index (DXY) is up 1.25 percent on a week-to-date timeframe. Source: TradingView.com

The dollar expects to grow more as the COVID cases rise in the US and stall the economic recovery. Overall, it might be bad for Bitcoin.

#3 US Presidential Election 2020

While nobody knows who is winning the US Presidential election in 2020, the uncertainty surrounding the outcome could leave the financial markets in a volatile state.

Gavin Smith, the chief executive of the cryptocurrency firm Panxora, discussed the possibility of elections causing political turmoil. He noted that such a scenario could lead the equities lower, which, in turn, affect Bitcoin and its ability to hold $10,000 as its support.

“The danger to the crypto market is much the same as we saw in March,” Smith said. “If you get that big sell-off in risk assets, there will be that liquidation of bitcoin.”

Simultaneously, the cryptocurrency expects to revive its bullish bias after the US presidential race ends. That is due to an improving long-term fundamental backdrop led by quantitative easing, lower interest rates, and poor bond yields.

• Bitcoin has undergone a strong drop over recent days as legacy markets have been dragged lower.
• The cryptocurrency fell from its $11,200 local highs to lows at $10,200, marking a drop of nearly 10%.
• The coin now trades at $10,400 as of this article’s writing, only marginally above the aforementioned lows.
• Bitcoin is under the pivotal $10,500-10,600 support level despite the recovery, leaving some bearish.
• Not everyone thinks that this is it for Bitcoin’s bull trend, though.
• On-chain data shows that this may be a crypto market dip to be bought.

Bitcoin Dips Should Be Bought Moving Forward

According to the CTO of Bitcoin analytics company Glassnode, Rafael Schultze-Kraft, the ongoing correction is likely a dip to buy. He shared the chart below, which shows the spent output profit ratio (SOPR) flirting with the pivotal level of one.

In bull markets, whenever the metric falls below one, it is often seen by investors as a medium-term buying opportunity.

“Agree with Philip here – in a bull market, this is just a dip (to buy). Here’s an updated hourly chart (showing adjusted-SOPR). Bounced back after the dip below one. Will continue watching some more to confirm.”

Chart of BTC's price action over the past few weeks with an on-chain analysis of the Adjusted SOPR indicator from Glassnode's Rafael Schultze-Kraft.

Not a Standard Correction

Corroborating the expectations of a return to the upside, Willy Woo noted that the recent drop was not a standard correction by on-chain standards. That’s to say, there were irregularities in the move lower that may soon be ironed out by Bitcoin returning higher.

“This pullback from what I gather looking on-chain took most spot investors off guard, there wasn’t the usual on-chain activity preceding it. Sell off happened at exchanges only. Stocks correlation pulled BTC down its bullish week of breaking free from Stocks.”

Woo noted last week that Bitcoin is poised to enter an uptrend because there was recently a spike in BTC changed hands.

The spike was seemingly MicroStrategy’s latest purchasing of Bitcoin. Spikes in BTC changing hands on chain, Woo noted, often precedes a reversal in price action.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
On-Chain Data Shows This Is a Bitcoin Price Dip to Buy: Exec

• Bitcoin has been trading in close tandem with equities throughout the past several days
• Heightened correlation to risk-on assets is a common BTC trait during times of immense global turbulence
• Although this strikes a blow to its safe-haven narrative, the cryptocurrency still has a long way to go before it fully decouples with the traditional markets
• This global economic turbulence that is weighing on Bitcoin may only get worse as the year drags on and as the elections approach
• One economist is observing that Bitcoin’s price may see a prolonged bout of choppy trading, which could ultimately cause it to dive as low as $9,000 before it can stabilize

Bitcoin has been moving in tandem with the stock market. Although this correlation may bode well for BTC during times of upwards expansion amongst equities, recent turbulence has caused investors to flee risk-on assets like the benchmark cryptocurrency.

Throughout the past few days, BTC’s price has plunged from recent highs of $11,200 to lows of $10,400.

It is now caught within a bout of sideways trading as investors closely observe the traditional markets, looking for cues that could offer insight into Bitcoin’s near-term trend.

One crypto-focused economist is now noting that continued uncertainty amongst stocks could cause the crypto to see continued choppy trading that ultimately crushes its uptrend and drives its price towards $9,000.

Bitcoin Stagnates Amidst Stock Market Turbulence

At the time of writing, Bitcoin is trading up marginally at its current price of $10,500. The crypto has been able to stabilize today as the stock market trades relatively flat.

The stock market has been weighing heavy on BTC as of late, with investors growing increasingly concerned about the lack of any progress surrounding a second federal stimulus package.

The pandemic is also showing few signs of nearing an end, which is perpetuating investor’s uncertainty.

How the traditional market trends in the near-term will undoubtedly play a massive role in Bitcoin’s price action.

Economist: Crypto Traders Should Proceed with Caution as Global Uncertainty Mounts

Alex Krüger, a popular crypto-focused economist, explained that Bitcoin could be pushed into the $9,000 region as global economic uncertainty persists. He believes this would cause chaos in the market.

Nevertheless, he does note that he expects DeFi tokens to see some short-term relief, as they have been hit hardest by the recent selloff.

“Crypto traders best be careful with risk, as BTC could be pushed to the $9Ks in this chop (45 days to go) and hell would then break loose. In the immediate term, a further 10% bounce across DeFi makes sense given how it got crushed.”

How equities trend throughout the week ahead should offer crypto investors with guidance as to what to expect for Bitcoin in the mid-term.

Featured image from Unsplash.
Pricing data via TradingView.

• Ethereum is currently oscillating between highs of $345 and lows of $336 as its bulls and bears reach an impasse
• The cryptocurrency has been unable to see any relief following the massive influx of selling pressure that stopped it from seeing any further gains
• It is still trading well above its multi-week lows of $320, but growing weakness is putting its current stability in jeopardy
• One analyst explained in a recent tweet that he expects ETH to plunge towards $300 before it finds meaningful support
• The dip to these lows could be followed by a strong upswing

Bitcoin’s $11,200 rejection has had grim implications for the aggregated cryptocurrency market. It has caused Ethereum and many other altcoins to see notable losses.

It is important to keep in mind that these losses have fundamentally altered the cryptocurrency’s market structure. One analyst is now noting that Ethereum could be positioned to see significantly further downside in the near-term.

He specifically points to $300 as a target to watch, as a strong bullish reaction to this level is vital for ETH to maintain its mid-term outlook.

Ethereum Shows Signs of Weakness Following Recent Decline

At the time of writing, Ethereum is trading down marginally at its current price of $343. This is around the price at which it has been trading throughout the past few days.

Analysts are noting that where ETH trends in the near-term will likely depend largely on Bitcoin, as the benchmark crypto has had firm control over its smaller counterparts as of late.

ETH has been able to establish the mid-$330 region as a strong support zone. Each dip here has been met with aggressive buying pressure.

If it continues holding above this level, it may be able to begin navigating back up towards its resistance between $380 and $400.

Ethereum Likely to Plunge Towards $300 Before Finding Meaningful Support: Trader

One cryptocurrency trader offered a somewhat grim short-term outlook on Ethereum’s price action in a recent blog post.

He explained that $300 is a “vital” support region, and that it previously acted as strong resistance.

“Taking a look at ETH/USD you can see from this HTF chart that a logical level to find some major support from here would be the $300 region. This is a vital support region which you can see from the chart below, this region was previously resistance back in 2019 so it will be very important that this region remains as support.”

Image Courtesy of Cactus. Chart via TradingView.

If the buying pressure around $335 evaporates, it could cause Ethereum to incur some heavy downwards momentum that sends it to $300.

Featured image from Unsplash.
Charts and pricing data from TradingView

• Bitcoin’s price has found some stability following the recent market-wide selloff that helped send it down from highs of $11,200 to lows of $10,400
• Bulls are ardently guarding against it seeing further near-term downside at the present moment
• There is a possibility that sellers will be able to continue pushing the market lower in the near-term, as turbulence within the stock market is providing an ideal background for bears to operate against
• One analyst is noting, however, that the cryptocurrency’s muted response to the immense selling pressure seen heading into BTC’s daily close is a positive sign
• He even notes that this could indicate that a push higher is imminent, and that bears will soon see their short positions get “trapped”

Bitcoin and the entire cryptocurrency market are caught within a bout of sideways trading at the present moment. It is important to note that altcoins are firmly following in the lead of BTC, and where they trend next may depend entirely on the benchmark cryptocurrency.

For Bitcoin’s mid-term outlook to remain firmly bullish, it is imperative that bulls either reverse its recent downtrend now or defend its $10,200 support and spark a reversal there.

One trader does believe that bulls may soon regain control over Bitcoin’s short-term outlook.

Bitcoin Enters Bout of Choppy Trading Following Sharp Selloff 

Last week, bulls attempted to reverse Bitcoin’s downtrend when they sent the cryptocurrency surging up to highs of $11,200.

BTC did face a rejection at this price level, which caused it to subsequently trade sideways for an extended period.

This consolidation ended up resulting in a sharp downwards movement. It ultimately plunged to lows of $10,400 before it was able to find any strong support.

BTCUSD Chart via TradingView.

Now, Bitcoin is trading just a hair above these lows at its current price of $10,500.

Analyst: BTC Likely to See a Relief Rally as Late Shorts Risk Getting Trapped 

While speaking about where he thinks Bitcoin may trend in the near-term, one prominent analyst explained that he is looking towards a relief rally that traps late shorts.

“BTC likely sees relief in the near future. Nice selling into the close of yesterday’s session. If you ask me, that looks like an optimal way to set up a trap for any systematic shorts that would get the green light at that point,” he explained.

If this does take place, bulls must surmount the lower-$11,000 region. Another rejection here would be grim for Bitcoin’s mid-term outlook.

Featured image from Unsplash.
Pricing data from TradingView.

“Bitcoin is the answer” is a phrase that’s thrown around regularly both in a serious and comical manner all across the crypto community. But in a future where there is limited potential upside in equities and bonds, the cryptocurrency could very well be the solution to further wealth accumulation.

That’s exactly what a Bloomberg Intelligence Senior Commodity Strategist claims, offering a chart with Bitcoin “juxtaposed” versus quantitative easing to back up the theory. Here’s what this means for the leading cryptocurrency and why this stamp of approval is so significant.

The Cryptocurrency’s Rise From Tech To Finance

Bitcoin’s story as a financial asset is unlike any other’s. The cryptocurrency started out essentially as an experiment that by chance took hold. The asset started off the focus of tech enthusiasts and cypherpunks toying with the future of digital money, with added attention to privacy and anonymity. This anonymity is so crucial to the coin’s core, even the asset’s creator is still to this day unknown.

From there, its use in commerce took footing on the dark web, in the Silk Road marketplace. Without real-world adoption like that or the early days of trading 10,000 BTC for two pizzas, the cryptocurrency may not have made it to $20,000 in 2017.

RELATED READING | CAN BITCOIN FIX WHAT TOP ECONOMISTS SAY CENTRAL BANKS CANNOT SOLVE?

During that time, the cryptocurrency became a household name, and retail investors FOMOed into the asset hoping to strike it rich. But reality set in, Bitcoin wasn’t yet ready for prime time, and the bubble popped.

Time has passed, and a new market cycle could be beginning. The conditions for the cryptocurrency to rise in value almost seem too perfect to be true.

The asset’s hard-capped, finite supply of just 21 million BTC gives in an advantage over nearly every other asset on the face of the planet.

#Bitcoin is a standout fixed-supply asset that should be a primary beneficiary in a period of limited potential further upside in equity and bond prices, in our view. #QE juxtaposed vs. tightening Bitcoin supply leaves adoption and demand as the top price-outlook metrics.. pic.twitter.com/NLHXlaZuuM

— Mike McGlone (@mikemcglone11) September 22, 2020

Bloomberg Intelligence: Bitcoin To Benefit From Limited Upside in Equities and Bonds

Its also why Bitcoin is potentially positioned to be one of the only assets with further potential upside, in an economic environment where financial upside everywhere else is “limited,” according to a Senior Bloomberg Commodity Strategist.

Bloomberg Intelligence’s Mike McGlone has revealed a chart on Twitter with Bitcoin’s price and supply “juxtaposed” versus quantitative easing. McGlone says that the chart demonstrates how Bitcoin’s fixed supply “should” make the cryptocurrency a “primary beneficiary in a period of limited potential further upside in equity and bond prices.”

RELATED READING | OWNING BITCOIN “IS A MUST” SAYS PRICE OF TOMORROW AUTHOR, JEFF BOOTH

Essentially, McGlone and the rest of Bloomberg Intelligence expect the rest of the financial space to suffer in the years to come due to out of control quantitative easing. At the same time, Bitcoin’s digital scarcity keeps it appreciating in value over the long-term.

In the post-pandemic future where the economy is frail, dollars are abundant, and money is harder to come by, Bitcoin may be the answer, and the likes of Bloomberg Intelligence and other big names are finally starting to realize this.

BTCUSD Monthly Pivotal Moment For Bitcoin | Source:TradingView

Featured image from DepositPhotos, Chart from TradingView, Bloomberg Intelligence