On Wednesday, Bitcoin evangelist and Wall Street investor Raoul Pal published a series of charts that pitted the cryptocurrency against major financial markets.
Every graph appeared identical to one another, for they showed how the mainstream assets/indexes were trending lower against Bitcoin, to a point where they all tested a medium-term support trendline. They included gold, the Nasdaq Composite, and its sub-indexes/stocks, which include KBW Bank Index, Treasury Bond ETF Fund, silver, Amazon stock, and others.
Mr. Pal noted that every index/asset was looking to break bearish on the support trendline. The prediction pointed towards more strength for Bitcoin as it compared the crypto with a “supermassive black hole that is sucking in everything around it and destroying it.”
Some of the Nasdaq’s sub-indexes already broke below the Ascending Trendline support. The KBW Bank Index (NASDAQ: BKX), a benchmark stock index of the banking sector, fell to its lowest levels against Bitcoin as worries over an increase in loan defaults stressed the financial corporations.
Read Further: 3 Biggest Bitcoin Takeaways from JPMorgan’s Q3 Earnings
Furthermore, the iShares 20+ Year Treasury Bond (NASDAQ: TLT) depreciated against the rising Bitcoin prices, adding to the speculation that the US economy is heading for a prolonged period of lower interest rates. The Federal Reserve has already committed to keeping them near-zero up until 2023.
The analogy was the same for the G4 Central Bank Balance sheet, the Refinitiv/CoreCommodity CRB Index, and Apple. Everything fell against Bitcoin.
Bitcoin to $20,000
As money keeps flowing into the Bitcoin market, Mr. Pal also indicated that the cryptocurrency could soon swell back to its previous record high of $20,000.
As per Mr. Pal, there is not any historically concrete resistance level above $14,000.
Earlier in 2017, it took BTC/USD only a week to pump from lower $13,000s to as high as $19,891 on Coinbase exchange. While the rally mostly took its cues from the infamous ICO boom, it left little hints for technical chartists to pick their ideal long targets on the next breakout above $14,000.
“I fully expect new all-time highs by early next year at the latest,” Mr. Pal predicted, nevertheless.
Originally from Bitcoinist.com https://ift.tt/37JExWF
Chainlink’s governance token LINK is emerging as a scapegoat asset for prominent Bitcoin traders.
At least one of them has openly stated that he uses the decentralized finance cryptocurrency as a hedge against a potential Bitcoin drop. In simple words, if the price of Bitcoin tops out at levels above $13,000, then the trader may want to keep holding the top cryptocurrency while using other altcoins to cover the damage.
The strategy finds its first insurance asset in LINK, the sixth-largest cryptocurrency by market cap up that is trading 560 percent upward into the running year. The pseudonymous trader said in his early Wednesday tweet that he is looking to open a high reward/risk short hedge against a likely Bitcoin top.
A Customized Strategy
In retrospect, a Short Hedge refers to a trading strategy wherein a trader takes a short position in an asset where he/she is already long. While the pseudonymous entity has not revealed his ‘Long Chainlink’ strategies, it appears that he is twisting the Short Hedge trick by placing one asset against the other, instead.
On one hand, it shows the trader’s willingness to keep on holding Bitcoin, especially as the cryptocurrency makes way into the portfolio and services of leading corporations and funds (read PayPal, DBS, Square, etc.). The long-term bullish outlook also pops open because of a sure-shot $2 trillion stimulus from the US Congress after the November 3 presidential election.
The same sentiment has prompted the Bitcoin Market Dominance–a metric to measure the king cryptocurrency’s market strength against the rest of the market–to surge from 57.21 percent on August 31 to 63.2 percent as of this time of writing. In simple terms, it shows that Bitcoin is sucking more capital out of the altcoin market ahead of the US election.
That further explains the aforementioned trader’s preference of shorting the Chainlink token so that he could hold onto his Bitcoin investment. Nevertheless, he did not reveal his short target yet – the level at which he would purchase back the LINK tokens at a cheaper rate.
The trader, although, tweeted at around 0807 IST, saying that he has covered his ‘short Chainlink’ position with a 1.5 percent profit. He added that he won’t be shorting everything for a while because “Bitcoin is going to teleport up.”
What’s Next for Chainlink
Like Bitcoin, Chainlink stands tall as a credible decentralized finance project that, as Messari stated in its report, “is writing the playbook for the oracle sector.”
The protocol has announced integrations into 112 new partnerships in 2020 and has amassed about 200 firms since its mainnet launch. And it is not just the announcements but the delivery. Chainlink has a working product, with almost 30 projects already using its data feed solutions. That, in turn, has boosted the demand for LINK tokens.
Fundamentally, Chainlink is now among the strongest blockchain-enabled projects.
Originally from Bitcoinist.com https://ift.tt/3mrthSU
Bitcoin Undergoes Pivotal Breakout
Bitcoin has surged higher once again as buyers continue to rush in. The leading cryptocurrency has just hit a new year-to-date high at $13,650, a price just under 5% higher than it was 24 hours ago.
The leading cryptocurrency is expected to enter a long-term bull trend as it prints a pivotal breakout. In fact, analysts think that Bitcoin’s ongoing surge higher marks its most important breakout ever.
A crypto-asset analyst shared the chart below on October 27th. It shows that Bitcoin’s ongoing rally has brought it above a pivotal technical pattern: a macro flag.
It also brings the cryptocurrency above the $12,000 resistance, which has acted as a point at which multiple rallies have topped on a weekly basis. The coin traded above the $12,000 resistance on a weekly basis, which marked the highest weekly close since January 2018.
As a result of the technical significance of this move, the trader branded this the “most important breakout in BTC history.”
Chart of BTC's price action since the middle of 2013 with analysis by crypto trader CryptoBirb (@Crypto_Birb on Twitter). Source: BTCUSD from TradingView.com
The trader also noted that the cryptocurrency’s recent price action looks similar to that of late 2015 and early 2016. That was when the cryptocurrency began its last exponential rally.
Not the Only One That Thinks So
This trader isn’t the only one that thinks Bitcoin’s recent price action is pivotal for the technicals of the asset.
One analyst said that Bitcoin’s weekly close above the “strong resistance” of $12,000 suggests the sky is the limit. As reported by Bitcoinist previously, the analyst wrote on the matter:
Chart of BTC's price action since the start of 2017 with analysis by crypto trader SmartContracter (Twitter handle). Source: BTCUSD from TradingView.com
There are some reasons to be concerned in the near term, though.
Analysts have noted that the cryptocurrency is likely overbought in the near term. For one, the Stochastic RSI, which tracks if an asset is overbought or oversold, is likely trading in an overbought region. Not to mention, some have suggested that there is a strong emphasis on long positions in the CME futures market.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin's Ongoing Surge is Its "Most Important Breakout" Ever: Analyst
Originally from Bitcoinist.com https://ift.tt/2TuVfAD
Bitcoin is currently seeing a strong uptrend, void of any bullish momentum in the stock market or the altcoin market.
This independent strength comes as it continues reclaiming dominance, with all eyes closely watching to see whether or not Ethereum and altcoins will be able to follow in its lead.
There is a strong possibility that altcoins will eventually catch up to BTC, but it remains unclear when this could occur.
One indicator that only flashes before Bitcoin sees parabolic rallies is back, and it could mean that the ongoing rally is just getting started.
Bitcoin Rallies as Stock Market, Altcoins, Reel Lower
At the time of writing, Bitcoin is trading up just under 3% at its current price of $13,400. This is around the price at which it has been trading for the past several hours.
Yesterday bears tried to revert its uptrend when they pushed it as low as $12,800. This selloff was short-lived, and the bastion of liquidity down at these lows is what helped spark today’s move to fresh 2020 highs.
As long as Bitcoin holds above its previous resistance at $13,200, it may be poised to see some serious upside in the days ahead.
Indicator Shows BTC Could Be on the Cusp of a Parabolic Rally
One indicator that has predicted previous parabolic Bitcoin movements is now flashing a positive sign for the cryptocurrency.
Analytics platform Glassnode spoke about this indicator in a recent tweet, pointing to the below chart showing the historical significance it has.
Image Courtesy of Glassnode.
If history rhymes, the coming few weeks and months could be extremely positive for Bitcoin.
Featured image from Unsplash. BTCUSD pricing data from TradingView.
Originally from Bitcoinist.com https://ift.tt/3jBwxsS
Ethereum has been sliding lower throughout the past day, but its buyers have been able to guard against it seeing any serious downside.
Yesterday, it dipped as low as $380 before seeing an influx of buying pressure that helped it rebound slightly.
This choppy price action comes as Bitcoin shows signs of strength and pushes to fresh 2020 highs.
This underperformance isn’t a new trend, as Ethereum has been struggling to keep up with Bitcoin ever since the crypto’s rebound first began a couple of weeks ago.
So long as BTC continues gaining dominance over the market, it is likely that this trend will persist.
One analyst is noting that a reclaim of $410 could help Ethereum gain some ground against BTC.
Ethereum Underperforms Bitcoin as Selling Pressure Ramps Up
At the time of writing, Ethereum is trading up roughly 3% its current price of $405.
Although this marks a serious decline from its multi-day highs of $420, it also marks a rebound from its 24-hour lows of $380 that were set during yesterday’s intense selloff.
This selloff came about in tandem with that seen by BTC, but while the benchmark crypto has rebounded to fresh 2020 highs, ETH is still lagging far behind.
Analyst Claims ETH Likely to Rally Higher in Coming Days
There is one analyst who believes that this trend of severe underperformance will soon come to an end.
While sharing his thoughts on Ethereum, he explained that a reclaim of $410 is likely to come about in the next few days, which could spark a sharp upside movement.
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
The next few hours and days should shine a light on Ethereum’s technical outlook against Bitcoin.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/31R0dMS
Bitcoin is flashing some signs of intense strength today. While Ethereum and most other altcoins either consolidate or drift lower, BTC just set fresh 2020 highs as its bulls target a move towards $14,000.
Ethereum has been underperforming Bitcoin as of late, but it also tends to lag a day or two behind it when the benchmark crypto pushes higher.
As such, ETH and altcoins may start surging at some point later today or tomorrow – assuming BTC’s rally remains intact.
One analyst is now noting that he is expecting BTC to see some slight turbulence in the near-term, noting that a decline down towards $13,000 would be “healthy.”
He also notes that a break below this level would end Bitcoin’s uptrend.
Bitcoin Pushes Higher as Aggregated Market Consolidates
At the time of writing, Bitcoin is trading up just under 3% at its current price of $13,420. This marks a serious surge from where it was trading just a day or so ago when bears pushed it as low as $12,800.
The support here proved significant and helped catalyze the momentum that has since sent BTC up to where it is currently trading.
Analyst: BTC Must Hold $13,000 or Risk Losing Its Strength
One analyst explained that $13,000 has now become a crucial level to watch in the short-term, as he believes another dip below this level would strike a serious blow to Bitcoin’s technical outlook.
He notes that a wick down to this level could be “healthy” and help incubate further upside.
Image Courtesy of George. Source: BTCUSD on TradingView.
How Bitcoin continues trending in the days ahead should provide some insights into its near-term outlook and into whether a move to $14,000 truly is imminent.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3oA3nhu
The stock market yesterday closed its worst single-day decline in nearly two months, causing the richest people in the world to lose over $14 billion in net worth. Bitcoin also pulled back yesterday, but as of this morning is already trading higher than before, while the S&P 500, the Dow Jones, and the Nasdaq continue to plunge.
What’s causing this sudden divergence between the two vastly different asset classes that all this year have been tightly correlated, and can the leading cryptocurrency by market cap keep it up?
US Indices Tank As Election Day Draws Closer, Uncertainty Turns To Fear For Stock Market Investors
The incredibly controversial showdown between President Donald J Trump and former Vice President Joe Biden will culminate on November 3rd, and US stock market investors are de-risking ahead of what could be a stormy time for the country.
Coinciding with the political climax is a second wave of the pandemic, and what is expected to be the least profitable Q4 in years for the retail industry.
RELATED READING | ALWAYS ON: BITCOIN TO SURPASS S&P 500 TRADING TIME WITHIN TWO YEARS
The fear of the unknown and potential changes to corporate and capital gains tax laws has investors selling ahead of the year-end, booking what has likely been a surprisingly profitable year for most, considering the condition of the economy.
Bitcoin rises while the Dow Jones plunges to worst day in months | Source: BTCUSD on TradingView.com
All of this combined caused major US stock indices such as the Dow Jones Industrial Average to close their worst day in the last two months. But what’s really interesting about this, is the fact that Bitcoin has been rallying to new 2020 highs while the stock market its been correlated to all throughout 2020 has been falling.
Bitcoin Resilience And Decoupling Discussions Turns Crypto Market To Greed
Bitcoin had a strong pullback yesterday as the Dow Jones, S&P 500, and Nasdaq all broke down from support. Each major US stock index headed lower as of this morning’s opening bell.
The leading cryptocurrency by market cap, yet again set another new high for the year today, demonstrating a strong bullish trend compared to the bearish stock market. Crypto analysts have been calling for a decoupling of the correlation that’s plagued Bitcoin throughout the year.
BTC correlation with the NDX, SPX, and DJI throughout 2020 finally decoupling | Source: BTCUSD on TradingView.com
After the February peak in both stocks and crypto, Black Thursday has left the entirely different markets closely intertwined in terms of price action. But that’s finally broken, as the correlation chart indicates below.
RELATED READING | DECOUPLED: ANALYZING BITCOIN DIVERGING AWAY FROM THE STOCK MARKET
Bitcoin isn’t fully out of the water, however. The cryptocurrency has deviated before, and this could suggest that stocks will reverse, or Bitcoin will, putting them back on parity. However, if the decoupling truly is here, Bitcoin’s bull run could be further fueled by stock market money following where the profitability is, and that could be the cryptocurrency for the next several years.
Featured image from Deposit Photos, Charts from TradingView.com
Originally from Bitcoinist.com https://ift.tt/2HyJRB7
Bitcoin Could Soon Rocket Towards $16,000, Analyst Predicts
Bitcoin could rocket even higher in the near to medium term, analysts argue after the coin gained around $1,500 in a week. A prominent pseudonymous crypto-asset analyst shared the chart below just recently.
It shows that Bitcoin is currently on track to move towards the next macro level at $16,000 after it managed to flip $10,000 into support. $10,000 has long been an important level for the leading cryptocurrency, acting as a macro resistance and support on a number of occasions.
The analyst who shared this chart is one that has been extremely accurate in the past. In March, he predicted that Bitcoin would undergo a V-shaped reversal to $10,000 by May or June. And just recently, prior to the latest leg higher, he shared charts indicating that BTC could move to $14,000 in October or November. We are doing so now.
Chart of BTC's price action since the middle of 2017 with an analysis by crypto trader and chartist Bitcoin Jack (@BTC_JackSparrow on Twitter). Source: BTCUSD from TradingView.com
Whales Think So Too… Kinda
Whales seem to be preparing for the chance that Bitcoin shoots higher from here as it faces little order book resistance.
“Light,” a crypto trader that has been celebrated by individuals like Su Zhu of Three Arrows Capital, shared the chart below just recently. It shows that above Bitcoin’s price action, from $13,200 to $14,000, there is little order book resistance on OKEx in particular:
The chart shows that if Bitcoin moves higher from here, it will encounter little initial selling pressure on OKEx.
OKEx’s order book is especially important because many argue it is where many whales trade, especially those based in Asia. Asia has long had an outsized influence in the space due to its early adoption of Bitcoin and crypto.
Chart of BTC's price action over the past few days with an analysis of the order book by crypto trader Light (@Lightcrypto on Twitter)
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Predicted Bitcoin's Reversal to $10k Thinks $16k Is Next
Originally from Bitcoinist.com https://ift.tt/31Lp7gN
Some Ethereum Coins Are Being Accumulated By Whales
Ethereum and top altcoins have undergone strong retracements from their summer highs. ETH, for instance, dropped from $490 to the September lows of $310 while some smaller altcoins saw even worse corrections.
DeFi coins, especially, were hit hard by this market drop. An analyst noted that the average DeFi coin had dropped 65% from its summer highs by early October.
This was because DeFi coins rose faster than all the rest, meaning they were the first to drop when capital stopped flooding in from new investors. They also dropped the fastest as earlier investors were incentivized to dump their coins as fast as possible.
Even still, Ethereum-based altcoins remain in a bullish state as investors seek to look out in the long run and invest from that perspective.
Top blockchain analytics firm Santiment reports that whales have been investing heavily in Ethereum and some ETH-based altcoins. These include REN, Chainlink, Aelf (ELF), Kyber Network (KNC), and 0x (ZRX).
Chart of the ETH, LINK, REN, ELF, KNC, and ZRX balances of top ETH-based non-exchange whale addresses have reached one-year highs. Chart from Santiment.
Focus on the Macro Fundamentals
It is likely that these investors are focusing on the long-term prospects of Ethereum’s DeFi space as opposed to the short-term reality.
For one, head of DTC Capital Spencer Noon reported recently that the important DeFi metrics continue to hit new all-time highs despite the price drops:
There also remain many bullish on Ethereum DeFi due to the high yields of the space relative to traditional markets. Of course, yields are naturally higher due to more risk, but analysts think that these yields will entice lots of capital into the space.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com These 5 Ethereum Coins Are Being Accumulated by "Whales"
Originally from Bitcoinist.com https://ift.tt/31MsVhG
What’s interesting is that whales are not sending their BTC to exchanges to liquidate. Instead, they are sending their BTC to smaller wallets.
Whales in this case are defined as addresses that control over 1,000 BTC. In other words, users who hold over 13 million USD.
Since the price of BTC started to increase, whales have sent a total of 423,914 BTC to other addresses on the blockchain. That’s equal to 5.5 billion dollars divided up in “smaller wallets” which hold under 1,000 BTC.
This is what you see happen in the bubbles above — the large transactions from whales (light blue) to smaller wallets (in green) — and what we can see in the bar graph below as well. This is clearly an anomaly compared to regular whale activity.
While we have no way to prove one or the other, here are a few potential explanations.
The travel rule of international banking stipulated that to exchange crypto to cash, only transactions over $10,000 have to be reported.
That means that if you were trying to get your Bitcoin into some other asset tax free, it would be wise to split up your total balance into smaller amounts, before transacting those on centralized exchanges.
It would make sense, with the price of Bitcoin rising, that whales are preparing in this way to liquidate. The smaller transactions are the easiest way to avoid attracting attention from regulatory bodies.
Bitcoin whales could also be selling BTC to new investors entering the market. In a recent interview with Laura Shin, Willy Woo explained that he saw a massive influx of new investors, CEOs and boards of directors, scooping up Bitcoin to put them in corporate and personal wallets. Perhaps new institutional investors are looking to purchase BTC directly from the OG’s and sidestep exchanges all together.
The announcement last Thursday of payment giant PayPal allowing its 346 million users to buy and spend Bitcoin is also likely contributing to the increase in new users entering the Bitcoin market. Currently, only 23.4 million people hold Bitcoin in their wallets, and if you count exchanges, that’s 101 million active unique accounts total. PayPal is almost 5x that.
Large holders of Bitcoin could also be trying to exchange their BTC without revealing the source or nature of the transaction. One technique to do so is called “layering,” or splitting up a haul into smaller and smaller amounts before settling it, so as to cover your tracks — similar to what crypto-natives call “fanning out,” Similarly to the travel rule incentive, the smaller transactions attract less attention.
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Ethereum Expected to Pop Towards Local Highs at $420
Ethereum has undergone a strong 6% drop over the past 24 hours in the face of a retracement in the stock market. The Dow Jones index has shed 3% during Monday’s trading session as there is some uncertainty around the pandemic and around the next fiscal stimulus package.
The cryptocurrency has bounced strongly since the daily lows. ETH now trades for $392, up over 2% from the daily lows just under $384.
Analysts think that this is a precursor to a greater move higher.
One analyst shared the chart below, which indicates that the coin could move towards $422 in the coming days. The chat indicates that the bounce has taken the cryptocurrency above the pivotal swing level at $390. Ethereum holding above that level should trigger a recovery towards the $422 weekly highs as aforementioned.
Chart of ETH's price action over the past week with anaylsis by crypto trader Tradingpup (@tradingpuppy on Twitter). Source: ETHUSD from TradingView.com
Bitcoin Dominance Strong
The expectations of an ETH rally, though, comes as Bitcoin dominance has strengthened.
One crypto-asset analyst shared the chart below just recently. It shows that Bitcoin’s dominance, the percentage of the cryptocurrency market made up by BTC, is printing a notable rounded bottom reversal to the upside. This may suggest that altcoins may underperform BTC moving forward:
Chart of Bitcoin's dominance over the past few years with analysis by crypto trader and head of technical analysis at Blockfyre Pentoshi (@pentosh1 on Twitter).
This may not affect ETH’s potential to outperform the U.S. dollar, though. That’s to say, Ethereum can still rally against the U.S. dollar but underperform the price of Bitcoin in the near future.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Photo by Ali Karimi on Unsplash Ethereum Expected to Bounce as Price Cleanly Bounces Off $385
Originally from Bitcoinist.com https://ift.tt/2HAlhzN
In a week where equity markets have stagnated, bitcoin bucked the trend as it pushed through the $12,000 resistance level, as well as touching and seeing some resistance at $13,000. Altcoins were buoyed by bitcoin’s rise, with ETH, XRP, LTC, and chainlink all showing upward trajectories too.
Simon Peters, Analyst, eToro Shares His Opinion On BTC, Crypto Markets
Bitcoin Blasts Through $12,000 Barrier
Bitcoin price action has dominated attention in the last week, rapidly reaching year to date highs. It approached and then subsequently smashed through the much-feted $12,000 mark with such strong momentum, there is every chance the crypto-asset could just push right on through to $14,000.
If we were to see some pullback towards $12,000, I would urge investors not to be too worried. We may end up in a period of consolidation just above that level. I’ve highlighted many times in these pages that there is still time in 2020 for a bitcoin bull run, and my view remains the same (Will 2020’s Q4 be autumn of alts, or will they fall? 13th July).
So, what instigated last week’s bullish run? A number of positive developments in the crypto space, most notably PayPal announcing it would enable its users to pay for goods and services in crypto assets. This would introduce a massive user base to crypto, with PayPal boasting 346m active accounts, all of whom will be able to hold and shop using bitcoin, bitcoin cash, ETH, and litecoin once the service has been rolled out.
This positive development was compounded by a discussion earlier in the week on the IMF’s Cross Border Payments Panel, in which Federal Reserve Chairman Jerome Powell reiterated that a US CBDC continues to be on the radar, whilst also opening the door for private firms to get involved in the endeavor.
These developments are further backed by positive statistical data. Glassnode’s investor sentiment index is gaining, open interest on bitcoin futures is increasing and short positions are unwinding. The combination of strong fundamentals and positive news for the crypto asset is providing the rocket-fuel needed for bitcoin’s blast-off.
Here’s what David Derhy, analyst, eToro Has to Say
Look to $20,000 instead of back at $12,000
As Simon highlighted, the current run could simply push through all the way to $14,000. If that is the case, then the next level from a technical and fundamental perspective would be $20,000. With the US election coming up next month, further economic stimulus from the government is going to happen even if the size of that stimulus is still up for discussion. I am of the view that we won’t see a drop back down below $12,000 for a while yet.
With the reduced volatility we are seeing, institutional investors are more and more interested in buying bitcoin. Combine this with the host of listed companies also looking to add bitcoin to their balance sheets, and the springboard for bitcoin prices continues to look very positive.
Simon Peters, analyst, eToro
Stimulus Fears Could Stoke the Fire for Bitcoin
With the ‘if’ of economic stimulus in the US out of the way, what matters now is the ‘how much’ and the ‘where’. How much money is the US government going to be pumping into the economy? What areas will they target and does that strengthen the use case for bitcoin? As David mentioned, the size is dependent on who wins the election, but any outcome will almost certainly lead to stimulus. If the Fed will be funding this by adding US treasuries to its balance sheets, then this would surely reinforce the argument for bitcoin as an alternative currency. Both sides have also agreed for another stimulus check of $1,200 to every citizen, but the rest will most likely go towards preserving jobs.
If this is the case, then we may also see an uptick in inflation, another important aspect of Satoshi Nakamoto’s view of modern economies that drove him/her/to create Bitcoin. It will also be interesting to see how this impacts the correlation between bitcoin and equity markets. Both could rally on news of a fiscal stimulus package, but bitcoin could decouple from equity markets based on its own fundamentals. It has recently enjoyed its longest run of decorrelation with the S&P 500 over the past couple of weeks
We’re currently in a world of positive price movement, extensive fiscal stimulus, major central banks discussing digital currencies, and a range of altcoins successfully implementing logistical upgrades. It’s an exciting time to be a crypto asset investor.
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All contents within this report are for informational purposes only and do not constitute financial advice. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared to utilize publicly-available information.
Crypto assets are volatile instruments that can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading crypto assets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.
Originally from Bitcoinist.com https://ift.tt/3oum2eH
Bitcoin Will See a Big Q4, Analysts Say
Bitcoin has undergone a strong rally over the past few weeks that has brought it from $10,200 to highs of $13,350.
The coin currently trades for $12,900, having undergone a slight drop in the face of a strong decline in the Dow Jones and S&P 500 index.
While the weakness in the stock market is worrying for some, especially considering the severity of the move, analysts remain bullish.
One crypto-asset analyst who called the V-shaped reversal that we saw in March and into the spring and summer recently commented on the matter:
As he explains, Bitcoin could undergo “50% pumps” heading into the end of Q4 and the start of 2021. He added that these 50% pumps will be marked by 30+% dumps as well, seemingly referencing how volatile the leading cryptocurrency was in 2017’s rally.
To elaborate on his legitimacy, this analyst wrote on March 14th, a day after the crash, that he expected a rapid recovery to $10,000 by May or June.
Bitcoin did so, proceeding to rally from the lows of $3,500 to $10,000 by the range in time he specified.
Expect Some Volatility Ahead of the Futures Close
While he does expect Bitcoin to move higher in the medium-term, he did note that investors should expect strong price action to the upside an downside as futures expiries come in:
Table of BTC's CME futures data for the next year. Chart from Bitcoin Jack (@BTC_JackSparrow on Twitter).
There is also some volatility to expected in the near term due to the presidential election, along with uncertainty about the next fiscal stimulus bill.
Photo by Paweł Czerwiński on Unsplash Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Analyst Who Called Bitcoin's V-Shaped Reversal Thinks Q4 Will Be Big for Bulls
Originally from Bitcoinist.com https://ift.tt/3dZg4O1
Ethereum is struggling to gain any momentum as its price drifts down towards its support around $400.
The cryptocurrency has been trading at this level for quite some time, with bulls struggling to break above the heavy resistance at $420.
The rejections it has posted at this level have contributed to its technical weakness, and the spotlight is once again being directed onto Bitcoin as the crypto tries to break above its crucial $13,200 resistance level.
One analyst is noting that Ethereum’s technical outlook remains highly bullish despite this short-term setback.
He is setting his sights on a move to $3,600 in 2021, noting that its macro market structure justifies this extremely bullish sentiment.
Ethereum Struggles to Gain Ground Against Bitcoin
At the time of writing, Ethereum is trading up marginally at its current price of $406. This is around the price at which it has been consolidating for the past day.
It is important to note that $420 is the key level that must be shattered in the near-term. Each tap of this level has sparked a flurry of selling pressure that sends ETH reeling lower.
This may soon change, as Bitcoin’s attempt to break above its key resistance could create a tailwind for ETH.
Analyst: ETH Poised to See Serious Gains in Coming 14 Months
He contends that a move towards $3,600 is in the cards.
Image Courtesy of Cactus. Source: ETHUSD on TradingView.
If this possible path forward does play out, it hinges on Bitcoin and the rest of the crypto market also entering a parabolic bull market.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/3jrNSEB
Bullish headlines are sending Bitcoin to the skies, with large-cap coins surging to new 2020 highs after PayPal announced on Wednesday it will be integrating cryptocurrency.
The good news continued as the week progressed. America’s biggest bank JP Morgan released a report on Friday claiming Bitcoin is a better investment prospect than gold, and Kanye West dropped Bitcoin bombs on the world’s biggest podcast — telling Joe Rogan that Bitcoiners “really have a perspective on what the true liberation of America and humanity will be.”
As the cryptocurrency market surged, Bitcoin cast off the shackles of its recent correlation with the S&P 500. This fulfills the prophecy of legendary investor Paul Tudor Jones, who called Bitcoin the “fastest horse in the race” back in May, and appeared on CNBC on Thursday to reaffirm his commitment.
This Week’s Highlights
PayPal Embraces Bitcoin
487 million US citizens will be brought to the crypto table over the next few weeks as payment giant PayPal gradually rolls out functionality allowing users to buy Bitcoin, Ethereum, Bitcoin Cash and Litecoin.
Bitcoin, which had been steadily climbing before the announcement on Wednesday, treated the news like rocket fuel: The price jumped vertically as the news hit, and quickly broke resistance at $13K.
Yet while Bitcoin has made 12% gains over the last seven days, the leading cryptocurrency has fallen behind Litecoin, which soared over 21% on the news.
JP Morgan Flips Bullish on BTC
JP Morgan, the investment bank that claimed Bitcoin was a “fraud” back in 2017, has changed its tune.
Looking ahead, the bank claims that Bitcoin could have “considerable long-term upside”, with the market cap needing “to rise 10 times from here to match the total private sector investment in gold via ETFs or bars and coins.”
The Week Ahead
Although a pullback could be expected after such a strong rally, BTC’s exuberance shows no sign of abating.
Speaking on CNBC on Thursday, billionaire investor Paul Tudor Jones said the rally is in its “first inning.” He expects more upwards momentum as investors start buying up the cryptocurrency as an inflation hedge.
If the rally continues, the next stop could be the 2019 high of $13,900. Beyond this milestone, the price is almost hitting open sky. As there is little trading history past this point, we could see heightened volatility as the cryptocurrency seeks to establish itself at this new elevation.
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Bitcoin is seeing an independent rally higher today, with bulls attempting to break the long-held resistance at $13,200 that has slowed its ascent.
It is important to note that there is heavy selling pressure throughout the entire $13,000 region. Still, a decisive break and hold above this level could create momentum that carries it past the other selling pressure here.
Analysts are noting that yesterday’s weekly candle close has provided BTC with some serious strength.
It is important to note that this was the first weekly candle close above $11,700 seen since early-2018.
Bitcoin Rallies Towards Critical Resistance as Buying Pressure Ramps Up
At the time of writing, Bitcoin is trading up just under 1% at its current price of $13,140. This is around the price at which it has been trading at throughout the past few days.
The consolidation phase seen by BTC as of late has been rather intense, but bulls could end this rapidly if they push it above $13,200.
A break above this level, coupled with a flip of it into support, could be all that is needed for it to see some serious upside in the days and weeks ahead.
Analyst: BTC Bolstered by Ultra-Strong Weekly Close
One respected analyst highlighted the significance of Bitcoin’s latest weekly close in a recent tweet.
He explained that the crypto could be entering a new bull-favoring phase, warning that although pullbacks are to be expected, there are “exciting times ahead” for Bitcoin.
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
How it trends in the coming week should provide insight into just how bullish this latest weekly close truly was for Bitcoin.
Featured image from Unsplash. Charts from TradingView.
Originally from Bitcoinist.com https://ift.tt/35BIvxH
Since it was introduced in 2009, one of the biggest knocks against Bitcoin has been its lack of price stability. Bitcoin volatility has been a much-discussed topic over the past decade. Some believe that the price of Bitcoin is not stable enough to be used as a currency, while others believe that its price is becoming more stable with each passing day.
To find the truth about Bitcoin volatility, you must take a look over time at the price of this digital asset and how it’s changed over the years.
The Volatility Problem
Bitcoin supporters can tout the digital asset all they want, but if its price does not maintain price stability it will likely never become a globally used currency for daily purchases. Think about buying a cup of coffee. When you walk into any coffee shop you have a good idea of how much that coffee will cost. Not only that, but you know that when you walk back into that same coffee shop tomorrow or next week, its price won’t change. That’s because the fiat currency used to price the coffee is relatively stable, and doesn’t fluctuate much on a regular basis. If, for instance, the underlying currency fluctuates greatly each day, you might walk into the coffee shop to see that the coffee costs 25% more today than it did yesterday. This is why price-volatile currencies are not realistic for daily use.
In the early days of Bitcoin, there were no exchanges to facilitate trading, making it difficult to value the digital asset. It took several years before its price rose above $1, but by the end of 2012, its price was expanding exponentially. 2013 was the year Bitcoin saw its first explosion, initially heading above $100 and then upwards of $1,000.
Unfortunately, over the next few years, the price of Bitcoin crashed more than 70%, leading to a bear market that lasted until late-2015. However, as the Chinese Renminbi began depreciating, Bitcoin saw its price once again begin to skyrocket into the thousands. Then, in 2017, the latest Bitcoin bull run came into the picture, running the price up close to $20,000. But these prices wouldn’t be sustained. By the end of 2018, the price of Bitcoin dropped to below $4,000 before shooting up above $10,000 by June of the same year. But after a relatively calm 2019 came and went, 2020 became the year to watch.
As you can see, historically Bitcoin has seen its fair share of price swings. Yet, over the years, these swings have lessened, and changes in price haven’t been as extreme. As you can see, the volatility spikes in Bitcoin were most extreme in 2011, with subsequent spikes in volatility lessening over time. This points to an asset that is becoming more and more price stable.
Volatility in 2020
In March 2020 Bitcoin surged back above $10,000, making investors happy, but leading many to believe that the volatility problem was rearing its head once again. Yet, this was short-lived, and Bitcoin price volatility quickly headed lower in May before bottoming out in August. In fact, the volatility of Bitcoin has leveled-out so much that it now is a more stable asset than oil, emerging market currencies, and even the US real estate market.
This is an important milestone for an asset that has consistently been viewed as extremely risky and volatile. In fact, when examining the risk-adjusted returns of Bitcoin compared to other assets, it appears the cryptocurrency provides even more stability than its counterparts.
It’s true that the volatility of Bitcoin is still greatly higher than traditional fiat currencies. But that doesn’t mean that progress over the years hasn’t been made. In fact, Bitcoin’s volatility is at its lowest point in years, showing signs of progress.
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Crypto cards aim to close the gap between legacy banking and digital assets. They allow users to benefit from holding funds in cryptocurrencies, with the flexibility to convert to cash via ATMs or spend them in the same way they can spend their fiat money from a bank account, at over 53 million merchants worldwide.
Crypto cards remove the hassle and slow process of converting crypto to fiat via an exchange and withdrawing to your bank account, mitigating the difficulties of merchant acceptance and lowering the barriers to mainstream adoption.
The growing interest in the crypto space, and card payment demand in general, has led to a variety of different crypto card offerings, covering markets around the world and providing a range of functionality for users.
The metal Crypto.com Visa Card is available to users in Asia, Europe, and the United States. CRO holders can also stake the native token to receive enhanced cashback and rewards.
The card connects to the Crypto.com mobile app, the wallet service providing access to buy and sell 7 fiat and 53 cryptocurrencies. It also links to the entire Crypto.com ecosystem enabling users to earn interest, access credit, invest, accept payments, and exchange their crypto.
The CoinZoom Visa Card offers Bitcoin, Ethereum, XRP, and other cryptocurrency pairs for the US market, expanding internationally. Behind the card is CoinZoom, a traditional brokerage firm aiming to become a digital banking solution for both crypto and fiat.
The card and corresponding wallet app are combined with CoinZoom’s institutional-grade secure custody and registered digital currency exchange that expects to become the third US platform to be awarded a BitLicense, following Coinbase and Gemini.
Metal Pay works slightly differently, offering a solution that is connected to existing bank accounts or debit cards, more like a Venmo or PayPal for crypto but providing similar benefits.
It authorizes the seamless transfer of funds to a Metal Pay account. Users can then create cash and crypto cards in the app to easily buy, sell, send, and receive over 30 cryptocurrencies.
The Metal Pay app supports FDIC-insured banks, so you can essentially get an FDIC insured cash account with Metal Pay. Currently available in the US, it has plans to expand globally.
The Binance Crypto Card taps into one of the largest global cryptocurrency exchanges, allowing users to automatically transfer crypto from their main Binance wallet to their Binance Card wallet. It follows Binance’s acquisition of Swipe, a leading digital wallet and debit card platform.
Currently supporting BTC, SXP, BNB, and BUSD, the card is available throughout Europe, with more countries expected soon.
Wirex offers a multi-currency Visa card and dedicated smartphone app, supporting 18 traditional and cryptocurrencies, with a built-in utility token, WXT. Users can benefit from cashback on purchases and the highest level of security protection.
Currently operating in parts of Europe and the Asia-Pacific, Wirex is now seeking to expand into Canada, Japan, and the US.
The Future for Crypto Cards
Crypto cards provide a revolutionary step in adoption by simplifying the process of holding, exchanging, and spending cryptocurrencies, expanding market access, and helping entrants navigate a world of growing crypto utility.
The benefits developed so far are just the start, with increasing incentives including staking, interest-earning, and payment acceptance services, only broadening the potential of physical and virtual card-based crypto services in the years ahead.
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.
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Bitcoin price this week surged by over $1,000 in a single day, taking the cryptocurrency hurdling toward 2019 highs. At the same time, the stock market that’s traded lock and step with the crypto asset all throughout 2020, dropped hard. The phenomenon is something top crypto analysts had called for, who now expect Bitcoin to break out into a bull market.
But before crypto investors get their hopes up too quickly, here’s a deep dive into the possible decoupling of the stock market and Bitcoin correlation, and what that might mean for both asset classes.
Crypto Correlation With The S&P 500 Diverges, Is The Decoupling Here?
Last week, Bitcoin took the world of finance by storm, when it exploded by over $1,000 in a single day, taking out 2020 highs and targeting last year’s peak. And while the move itself was enough to cause plenty of chatter, much of the discussion was centered around the cryptocurrency’s sudden divergence in correlation with the S&P 500.
RELATED READING | ALWAYS ON: BITCOIN TO SURPASS S&P 500 TRADING TIME WITHIN TWO YEARS
Starting ahead of Black Thursday, the crypto market and stock market topped out in early 2020, then suffered a catastrophic collapse. Bitcoin dropped well over 50% in 24 hours, and the stock market saw its worst quarterly close on record just after setting an all-time high.
The leading cryptocurrency by market cap possibly decouples the ongoing stock market correlation | Source: BTCUSD on TradingView.com
The correlation has remained since after years of acting as an uncorrelation or anti-correlated asset, until now. The latest rally in Bitcoin took place while the stock market began to stumble. The two vastly different asset classes have only continued to diverge, with crypto getting stronger and major stock indices getting weaker.
Analysts had been calling for such a scenario to take place, pointing to ongoing Bitcoin adoption and network effect as the driver behind the divergence. For example, daily active BTC addresses have grown considerably, along with non-zero BTC addresses. More Bitcoin is also being moved off exchanges, so there’s less to be sold into the market. But is it far too soon to be calling it quits on the correlation?
But are analysts jumping the gun that the correlation has ended? | Source: BTCUSD on TradingView.com
Can A Bitcoin Bull Market Begin, While The Stock Market Tops?
Unfortunately for hopeful crypto investors, this isn’t the first time since the correlation began where Bitcoin diverged, but ultimately the two caught up with one another somehow. In past instances, Bitcoin price has led the S&P 500 in moving up.
RELATED READING | BITCOIN SETS NEW ALL-TIME HIGH IN THESE GLOBAL CURRENCIES
The divergence can last up to an entire month before the S&P 500 catches up. If the leading cryptocurrency is now a leading indicator for the stock market, it appears to suggest a rally in stocks is less than three weeks away.
What exactly does this sudden and unusual correlation mean for crypto? | Source: BTCUSD on TradingView.com
Another scenario is possible, however. Few stock market analysts exist that don’t claim the asset class is in a bubble that is nearing a burst. If and when it happens, the stock market could enter its first ongoing bear market in over 90 years. And if that’s the case, can Bitcoin really begin a new bull run?
It is possible, and given Bitcoin’s infrequency history tracing this closely, shaking off the correlation and decoupling could be here. But if the uncanny correlation continues, a bubble bursting in stocks could send Bitcoin and cryptocurrency back into a bear market.
Featured image from Deposit Photos, Charts from TradingView.com
Originally from Bitcoinist.com https://ift.tt/2HyCxph
The ongoing Bitcoin price rally risks fizzling out on a notion that the price won’t hold a psychological support level.
The $2K-Crash Setup
At lower $13Ks, the cryptocurrency awaits a significant sell-off, according to Mark Principato of Green Bridge Investing, an investment consulting firm in New York. The executive director cited a “potentially bearish candle” – having gone a clear upside rejection near $13,363 – to justify his downbeat outlook.
He provided further evidence – or fractals – that showed traders reacting to the formation of bearish and bullish pin-bars as of late. This year, Bitcoin painted two bullish candles with downside rejections near $9,800 in September 2020 and $10,500 in October 2020.
The cryptocurrency generated two long signals and reached its upside targets near $11,600 and $12,300, respectively. Just recently, it also achieved the third target at near $13,260 from its second long trade.
The chartist added that they now await an exact retracement from lower $13,000-levels before increasing their bets on a fall towards the $11,600-12,300 range (the previous resistance area). Based on where Bitcoin is trading at the time of this writing, that is about a $1,500-$2,000 downside correction.
Bitcoin Price Stability
The aforementioned bearish setup has a better likelihood of concluding should the Bitcoin price achieves stability inside the $11,600-12,300 range.
Mr. Principato stressed two factors that could ensure a price rebound despite a $2K fall. First, holding the said trading area as support; second, forming a bullish pin-bar – wherein a candle wick with a downside bias faces momentum rejection.
Fundamentally, the cryptocurrency shows demand near the $11,600-$12,300 area. In an email statement to Bitcoinist, CEX.io’s Executive Director Konstantin Anissimov noted that “Bitcoin has brought a lot of attention to the crypto market” as major firms add it to their reserves as a hedge against currency devaluation.
Mr. Anissimov, nevertheless, added that – technically – failure to hold support above the $13,000-area would risk taking Bitcoin lower towards $12,000.
The BTC/USD exchange rate was 0.22 percent high as of the early Monday session, trading at $13,070.
Originally from Bitcoinist.com https://ift.tt/2Tsic7H
Bitcoin market sentiment fared an extremely bullish setting last week as traders/investors assessed the foray of big firms into the digital currency sector, including PayPal.
The BTC/USD exchange rate began the 7-day timeframe with a decent jump – and it spent the rest of the time trading upward. That was despite the uncertainty surrounding the next US fiscal stimulus and the presidential election on November 3. Bitcoin remained the best-performing safe-haven asset after closing the week about 13 percent higher.
Another Good Start for Bitcoin
Opening Monday, BTC/USD rose 0.5 percent to trade further above $13,000, a psychological support level that traders believe will provide a firm footing for the next bull run.
The fundamentals are so far supporting the rosy technical picture. This week is looking to be a busy one, with the US election and fiscal stimulus talks promising to influence the global market outlook, including that of Bitcoin.
Analysts expect the Democratic nominee Joe Biden to beat the sitting President Donald Trump, a Republican. They add that a Democratic majority in both the Senate and House of Representatives would pave the way for a bigger coronavirus relief package – of more than $2 trillion.
A section of economists also sees the stimulus as inevitable. So no matter who wins the election, the market should expect at least an aid worth $2 trillion.
Both the scenarios intend to leave the US dollar weaker, thereby raising demand for other safe-havens in both the local and foreign markets. Bitcoin serves as one of the hedging alternatives to investors. Therefore, the cryptocurrency’s connoisseurs see it trading upward post the US election.
Tech Earnings Season
Meanwhile, Bitcoin would at least hold its gains above $13,000 as significant tech players release their third-quarter earnings.
The sector has outperformed its peers largely in 2020, helped by demand for online technologies during the coronavirus-led lockdown. It now covers more than 80 percent of the total gains logged by the S&P 500 index, somewhat becoming a flagbearer of Wall Street’s impeccable performance in a recession year.
This week, the likes of Facebook, Alphabet (Google), and Apple would unveil whether or not their recent stock rallies have strong revenues as a base. Strategists note that investors would even ignore a poor financial report, given the firms’ strong growth prospects in the next 12 months.
A sustainable rally in the US stocks would reduce investors’ appetite for cash. In turn, it would mean lower selling pressure across other safe-havens, including Bitcoin.
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Ethereum has stalled after hitting the pivotal highs of $420 earlier this week. The coin now trades for $408, failing to break higher even as Bitcoin flirts with yet another breakout ahead of the weekly close.
Despite the mixed price action, analysts think ETH remains in bullish standing.
Ethereum Analysts Thinks the Uptrend Is Intact
One crypto-asset analyst shared the chart below on October 25th. It shows that Ethereum remains in a consolidation below a pivot level. Even still, the uptrend still seems to be intact as ETH holds the $400 support region:
Chart of ETH's price action over the past few weeks with an analysis by crypto trader Trading Cyclist (@FullGasTrader on Twitter). Source: ETHUSD from TradingView.com
This was echoed by another analyst just recently as Bitcoinist reported previously. This other commentator noted that the coin is currently about to print another leg higher as it consolidates between $405 and $420.
Chart of ETH's price action over the past few weeks with an analysis by crypto trader Steve (@Thetradingtramp on Twitter). Source: ETHUSD from TradingView.com
ETH2 Blow Dealt
One of Ethereum’s crucial bullish fundamental catalysts may be put on hold for now, though.
As first reported by CoinDesk, Ethereum Foundation researcher Danny Ryan commented that the ETH2 deposit contract may be pushed back due to audits.
The deposit contract is the contract that will link the original Ethereum chain to the 2.0 chain, which will have staking enabled.
Commenting on the Bankless podcast, hosted by Ryan Sean Adams and David Hoffman, Ryan commented on the matter:
Other Ethereum researchers and developers think there will be a delay between the publishing of the deposit contract and the actual launch of the chain.
Featured Image from Shutterstock Price tags: ethusd, ethbtc Charts from TradingView.com Here's Why Analysts Think That Ethereum's Uptrend Remains on Track
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The Importance of Bitcoin’s Upcoming Close
Bitcoin is about to see its next weekly candle close. In the coming hours, the leading cryptocurrency will print its latest weekly candle.
Analysts see this weekly candle of utmost importance as it will likely mark Bitcoin’s highest weekly candle since the blow-off top seen at the end of 2017 and start of 2018.
Edward Cleps, a top crypto-asset trader, shared the chart below, showing the significance of the upcoming close. He commented:
As he notes, BTC hasn’t seen a close above $11,700 since the highs seen at the start of 2018. Previous rallies, such as the relief rally in mid-2018, the summer rally of 2019, and the recent jump this past summer all ended at $11,700 on a weekly basis. Bitcoin breaking higher here will confirm that it is in the midst of an uptrend, one that will likely bring it to new all-time highs over time.
Chart of BTC's weekly price action since the middle of 2017 with an analysis by crypto trader Edward "Teddy" Cleps (teddycleps on Twitter). Source: XBTUSD from TradingView.com
Price Poised to Push Higher
Analysts say that Bitcoin is poised to push higher from here.
One crypto technician noted that while BTC is dramatically higher than it was in the summer, the futures market is not yet overheated. He pointed to this chart below, which shows that the aggregated funding rate of top futures platforms are not yet well into the positive. This suggests that Bitcoin still has room to extend to the upside without causing the price action to become unsustanible:
The neutral funding rate seen now suggests that Bitcoin derivatives traders are not leading this rally.
Chart of BTC's weekly price action since the summer with an analysis by crypto trader Byzantine General (Byzgen on Twitter). Source: XBTUSD from TradingView.com
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Could Soon See a Pivotal Weekly Candle Close Above $13,000
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Bitcoin and the entire crypto market have been caught in the throes of a sideways trading bout throughout the past couple of days.
BTC has been unable to shatter the heavy resistance that sits just above its current price, with buyers and sellers both being unable to gain any serious control over its near-term outlook.
However, its mid-term market structure remains highly bullish, which could indicate that further upside is imminent in the coming few days.
For this potential rally to come to fruition, bulls must break the heavy resistance in the lower-$13,000 region.
One trader believes that a growing number of short positions could act as rocket fuel for the next move higher.
Bitcoin Struggles to Break Key Resistance as Consolidation Phase Persists
At the time of writing, Bitcoin is trading down marginally at its current price of $12,950. This is around where it has been trading throughout the past few days.
If it cannot surmount the resistance between $13,11 and $13,500, it may continue seeing stagnating growth in the near-term.
A break above this region would put a move to significantly higher highs on the table.
Analyst: Growing Number of Short Positions to Bolster BTC
While sharing his thoughts on Bitcoin’s near-term outlook, one analyst explained that Bitcoin’s market structure is overtly bullish, but the composition of long and short positions doesn’t reflect this.
He contends that this could mean there is serious room for further upside.
Image Courtesy of Byzantine General.
Which direction Bitcoin will trend throughout the rest of the year will likely grow clear in the coming few days, as it is currently trading near a pivotal level.
Featured image from Unsplash. BTCUSD pricing data from TradingView.
Originally from Bitcoinist.com https://ift.tt/3kvk9Mm
Bitcoin Investors Expect Rapid Price Appreciation Soon
Bitcoin has undergone a strong rally over the past few weeks, rallying as high as $13,350. In response to this move, there surprisingly isn’t an influx of investors looking to liquidate their coins for a profit. In fact, on-chain data indicates that investors are not looking to sell their coins.
Crypto-asset analyst “Light” shared the chart below just recently. It shows that the total transfer volume of Bitcoin to exchanges has decreased dramatically over the past three days. He sees this as a sign that these investors think upside is likely:
Chart of BTC's price action over the past month with an overlay of "total transfer volumes to exchanges" shared by Light (@LightCrypto). Chart from Glassnode
Sentiment polls also indicate that most investors think that Bitcoin will soon slingshot higher.
Leading financial media outlet Real Vision recently polled its subscribers about their current investments and outlooks on a variety of markets. Their polls found that most investors, over 60% of those polled, think there is a good chance Bitcoin will be dramatically higher a month from now than it is now:
This Is For Good Reason
This bullish sentiment is arguably for good reason.
Just this past week, it was revealed that PayPal will be embracing cryptocurrencies. The world-famous fintech application will support the purchase and sale of Bitcoin and other digital assets, along with payments made with cryptocurrency.
Analysts think that this move will entice other companies, both in technology and in finance, to embrace Bitcoin. This could result in an influx of new users, driving capital in the space to new highs.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com On-Chain Trends Show That Bitcoin Investors Expect "Rapid Price Appreciation"
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