After the $1,500 drop that Bitcoin sustained just the other day, analysts are reconsidering their bullish skew on the crypto market. One analyst went as far as to suggest that the cryptocurrency is poised to correct towards the $7,000s after seeing that harsh rejection above $10,000. The analyst in question predicted months in advance BTC would bottom in 2019 at $6,400, and called for BTC to top around $11,000 earlier this year. Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Bitcoin Poised to Drop in the Near Term The analyst in question shared the chart below on June 3rd, showing that Bitcoin’s macro price action from the $20,000 high until now looks eerily similar to the consolidation after 2013’s bull market. During that consolidation, Bitcoin twice retraced to the green growth curve indicated in the chart below. In this cycle, it has done that only once, suggesting it will fall to the $6,000s-7,000s one more time before a full-blown bull run. Macro BTC price chart from a prominent crypto trader “Dave the Wave” (@Davthewave on Twitter). The chart shows that Bitcoin’s price action from the $20,000 all-time high looks very similar to the consolidation after 2014-2015’s bear market. The calls for caution have been echoed by John Bollinger, the prominent technical analysis behind the Bollinger Bands indicator. “The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short,” he said. This comment was made in reference to his indicator, which shows that Bitcoin was strongly rejected after attempting to break out of its current range. Still Long-Term Bullish Although he may expect a correction, the analyst remains long-term bullish. He noted recently that the Moving Average Convergence Divergence (MACD) for Bitcoin (on the weekly chart) is “well situated for the cyclical move up.” This move higher should bring the asset to new all-time highs, as the chart below suggests. “Though a short term correction may well be on the cards, the longer term is looking super-bullish. Weekly MACD well situated for the cyclical move up as compared to last time….” the analyst said in reference to the chart seen below. Macro BTC price chart from a prominent crypto trader “Dave the Wave” (@Davthewave on Twitter). It shows that Bitcoin’s long-term trend is still positive. The fundamentals corroborate this cheery outlook. Adam Back, chief executive of Bitcoin development firm Blockstream, recently shared that he thinks BTC will reach $300,000 in the coming five years. This would imply a rally of around 3,000% from the current market price. The executive told Bloomberg that the vast amounts of money printing and the growing propensity among investors to hedge their investments with BTC will push the asset to these levels. He added that with real estate risky and bonds overvalued, investors are going to turn to alternative investments like Bitcoin next. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Featured Image from Shutterstock Price tags: btcusd, xbtusd, btcusdt Why an Eerily Accurate Analyst Still Expects Bitcoin to Retrace To the $6ks
Bitcoin took a heavy beating yesterday after attempting to break past $10,000 for the first time in weeks. As reported by Bitcoinist previously, the asset plunged by $1,500 in three minutes, falling as low as $8,600 on BitMEX due to a barrage of sell orders. On spot exchanges and some other derivatives exchanges, the cryptocurrency managed to hold the low-$9,000s. Despite the brutal sell-off, a Bloomberg analyst sees Bitcoin hitting $20,000 in 2020. He cited a confluence of fundamental factors to back this cheery prediction. Bitcoin Could Double in 2020 According to senior commodities analyst at Bloomberg Mike McGlone, the leading cryptocurrency is on track to hit $20,000 by the end of 2020. McGlone explained Bitcoin’s price action over the past few months, before and after May’s block reward halving, is looking much like the price action in 2016. Should the historical relationship continue, BTC could hit $20,000: “Bitcoin is mirroring the 2016 return to its previous peak. Fast forward four years and the second year after the almost 75% decline in 2018, Bitcoin will approach the record high of about $20,000 this year, in our view, if it follows 2016’s trend.” McGlone’s optimism boils down to a large confluence of market factors, some of which are as follows: BTC is outperforming the stock market, which may draw more investors into the cryptocurrency market. Bitcoin is gaining institutional adoption, as evidenced by the CME futures market. The number of active BTC addresses is increasing. The halving should have a positive effect on the supply-demand dynamic of the crypto market. Not the Only Analyst Eyeing $20,000 McGlone is far from the only individual eyeing $20,000. Arthur Hayes, chief executive of BitMEX, explained in the April edition of his newsletter “Crypto Trader Digest” that the asset is on track to set a new all-time high this year. The record amount of fiscal and monetary stimulus being spearheaded by central banks and governments around the world will back the trend, Hayes wrote: “Everyone knows the shift is upon us, that is why central bankers and politicians will throw all of their tools at this problem. And I will reiterate, that is inflationary because more fiat money will chase a flat to declining supply of real goods and labour. There are only two things to own during the transition to whatever the new system is and that is gold and bitcoin.” This was echoed to a T by Dan Morehead of Pantera Capital, one of the leading crypto- and blockchain-centric funds in the world. Morehead explained in his company’s March newsletter that by increasing the money supply, central banks are encouraging scarce assets to increase in dollar values: “As governments increase the quantity of paper money, it takes more pieces of paper money to buy things that have fixed quantities, like stocks and real estate, above where they would settle absent an increase in the amount of money. I think they will do that. The corollary is they’ll also inflate the price of other things, like gold, bitcoin, and other cryptocurrencies.” Featured Image from Shutterstock Price tags: btcusd, btcusdt, xbtusd Bloomberg Analyst: Why the Bitcoin Price Will Double to 20 thousand in 2020
Originally from Bitcoinist.com https://ift.tt/3dvtP6h
After breaking out past $250 on June 1st, Ethereum saw a harsh rejection on June 2nd. The asset fell from over $250 to $225 in a matter of minutes, crushed as Bitcoin slipped by a similar amount on top exchanges. Despite this strong drop, analysts assert that bulls still remain in control of the asset. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Ethereum Bulls Still in Control, Despite 10% Correction In the wake of the correction, a prominent trader noted that Ethereum remains above crucial support levels. The chart indicates ETH is still trading above the eight-day moving average, along with the $225 horizontal resistance. This is important as it shows that bulls remain on control. As the analyst remarked in reference to the chart: “Ethereum Daily [chart] – Bulls have built a pretty nice chart without any real buying pressure.” ETH price chart shared by prominent trader “Cheds” (@BigCheds on Twitter). The chart shows that the cryptocurrency remains above crucial support levels on a technical basis despite the recent retracement. A commenter responding to the analyst asked if Bitfinex’s Ethereum market has anything to do with this. For those unaware, the past few months have seen the number of long ETH contracts Bitfinex traders hold skyrocket to over $300 million in U.S. value. This is an all-time high, far above what this metric was in January of this year or even at the peak of 2018’s bull market. It isn’t clear how this trend has affected the Ethereum price, but it probably isn’t bearish. That’s for sure. Not the Only Bull The abovementioned analyst isn’t the only bull in this environment. Per previous reports from NewsBTC, one analyst suggested that Ethereum is on track to hit $300 by the end of June. The analyst in question shared the chart below illustrating that ETH recently saw a textbook break out of a symmetrical triangle, showing the trend is still positive: “As I don’t believe this dip is the end of all crypto, I’m patiently waiting to long low $200 $ETH into $300 by the end of the month.” Ethereum price chart and outlook shared by prominent trader “Galaxy,” who goes by @GalaxyBTC on Twitter. Another individual shared in the optimism, writing his own analysis: “Things not looking that bad right now, would be nice if we could see a retest of the $220 level before we continue higher as we have not even validated it as support. Even with today’s pretty harsh selloff, this structure is still remaining as bullish for now.” Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Featured Image from Shutterstock Price tags: ethbtc, ethusd Analyst: Ethereum Bulls Still In Control at $240, Even Without "Real" Buying
Ethereum has entered a firm consolidation phase in the time following its recent bout of volatility. This turbulence came about yesterday, with ETH’s buyers propelling it to highs of $255 before it lost its momentum and declined down to lows of $230. Bitcoin triggered this movement, as the benchmark cryptocurrency first rallied to highs of $10,400 on Monday evening before losing all its buying pressure and reeling as lows as $8,600 on one major trading platform. The aggregated crypto market appears to be closely watching to see what Bitcoin does next, but it is possible that ETH will be able to incur some independent momentum. One analyst believes that this next Ethereum move could heavily favor buyers, as there are a couple emerging factors that may help boost it higher. Ethereum Consolidates Within Bull-Favoring Technical Formation Ethereum has entered what appears to be a consolidation phase as it struggles to garner any notable momentum. At the time of writing, ETH is trading down just under 1% at its current price of $238. It has been ranging between $230 and $240 in the time following its immense volatility. It is highly likely that the crypto’s near-term price action will be heavily influenced by that of Bitcoin, although analysts are pointing to a technical formation that it is currently caught within as a reason why it could rally higher. One analyst offered a chart showing this pattern – which is clearly seen while looking towards its BTC trading pair. Image Courtesy of Ethereum Jack The upper boundary of this broadening wedge appears to sit around 0.025. Ethereum is currently trading up 0.5% against BTC at 0.0247. If it is able to break this level, it could see some independent momentum that allows it to outperform Bitcoin in the days ahead. Here’s the Level ETH Needs to Break to Set Fresh All-Time Highs Throughout the course of its latest downtrend, the cryptocurrency was able to maintain above a key support level. This level sits at $228 – which happens to be where BTC had faced some strong resistance during its uptrend seen last week. Another respected trader explained in a recent blog post that the close above this level is undoubtedly a bull-favoring sign. “Looking at the daily for the dollar pair, we can see that price closed firmly above that high at $228 that I was so keenly watching, with consolidation occurring above the high,” he noted. He also went on to explain that the cryptocurrency needs to break above $254 in order for it to see any intense upwards momentum that leads it back to its yearly highs of $290. “There are two possible scenarios that make for high R plays; either we see a breakdown at the trendline resistance after taking out $254, which I would look to get short on, or we close above the confluence of levels and rally into $290.” Featured image from Shutterstock. ETHUSD, ETHUSDT, ETHBTC
When people think of Tether’s USDT stablecoin, the Ethereum blockchain will be mentioned relatively quickly. However, it seems as if the USDT issuance on TRON is also on the rise, as its circulation amount surpassed $2.5 billion.
It is rather interesting to see how the USDT supply is distributed across different blockchains.
USDT on TRON is on Fire
The original OMNI blockchain has seemingly been surpassed by at least two competitors, at least in USDT issuance volume.
Ethereum is clearly the go-to chain for this stablecoin, but competition will arise sooner or later.
According to Justin Sun, the issuance of USDT on TRON has surpassed $2.5 billion in terms of circulation amount.
A remarkable milestone, although it validates the choice for TRON as an extra liquidity network.
As such, this news will catapult TRON’s blockchain to a whole new level.
That said, it is a bit worrisome when stablecoins are the main reason for blockchain use these days.
This applies as much to TRON as it does Ethereum.
None of the dApps on either blockchain come close in terms of volume or transactions.
That is a bit worrisome, albeit the situation will keep evolving at all times.
The race between TRON and Ethereum appears to be far from over at this point.
The post The USDT Supply on TRON Surpasses a Major Milestone appeared first on NullTX.
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Starting June 3, 2020, the KuMEX crypto futures trading platform will be rebranded as KuCoin Futures, announced the IDG-backed cryptocurrency exchange giant. In addition to the rebranding exercise, the platform will also be launching an Ethereum perpetual contract with 100x leverage. According to the announcement, KuCoin Futures will be available on its new official website: futures.kucoin.com, and the existing KuMEX communities and social media channels will be renamed to reflect the new brand name. To avoid any confusion, KuCoin will continue supporting the original domain name kumex.com for another 6 months before completely shifting all futures trading operations to KuCoin Futures. There won’t be any changes in the trading experience, and existing users can continue trading without having to go through the registration process all over again. New Features on KuCoin Futures Started in July 2019, the KuCoin Futures platform has been supporting Bitcoin perpetual and quarterly contracts as well as USDT-Margined perpetual contracts. It holds the distinction of being the only platform with a Level 3 data push mechanism to create a fair-trading environment. Having experienced peak trading volumes exceeding USD 200 million, KuCoin Futures expects significant growth in the coming days following the inclusion of Ethereum perpetual contracts with a very low maintaining margin rate of up to 0.5%. KuCoin Futures is also focusing on the development and launch of BCH, EOS, and other futures contracts, along with new features like Cross Collateral, high-frequency trading, dynamic diversions, and big data risk controls. However, these new additions are expected to be made available on a later stage once the entire rebranding process is concluded. “KuCoin has been promoting the underlying infrastructure for the crypto world and laying out a cryptocurrency ecosystem. As the crypto derivatives market continues to mature, the proportion of its trading volume will be close to that of the traditional finance market, and the next few years will be a golden period for the rapid development of crypto derivatives. As KuCoin Futures continues to develop, we will see the value and global influence that KuCoin has in the derivatives market. The KuCoin Futures platform will also become the most important development engine of KuCoin,” said KuCoin Global CEO Johnny Lyu. The decision to rebrand KuMEX to KuCoin Futures is part of the company’s strategy to enhance its influence in the crypto derivatives market by revisiting the core values of the platform to provide the best futures trading experience to its users. It will also be launching more promotional activities like an affiliate program, trial fund, new VIP fee structure, and more, which could play a significant role in helping KuCoin Futures achieve its goals.
Ethereum is down more than 5% as it broke the $240 support against the US Dollar. ETH price found support near $220 and it is currently correcting higher towards key hurdles. Ethereum failed to continue above $250 and it started a major decline. The price dived below $240 and it even spiked below the $230 support zone. There was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD (data feed via Kraken). The pair could resume its decline if it fails to recover above the $240 pivot level. Ethereum Price Turns Red This week, Ethereum price followed a bullish path above the $220 pivot level. ETH price broke many key hurdles near the $240 and $250 levels. It even spiked above $250 resistance, but struggled to continue higher. A high is formed near $253 and the price started a strong decline, following bitcoin’s sharp slide below $10,000. Ether price broke many key supports near the $240 level to move into a short term bearish zone. Besides, there was a break below a major bullish trend line with support near $240 on the hourly chart of ETH/USD. The pair spiked below the $230 support and the 100 hourly simple moving average. Ethereum Price It tested the $220 support zone and a low is formed near $218. Ethereum is currently recovering nicely above the $230 level. It surpassed the 50% Fib retracement level of the recent drop from the $253 high to $218 low. However, there is a major hurdle forming near the $240 level. It coincides with the 61.8% Fib retracement level of the recent drop from the $253 high to $218 low. A successful break above the $240 resistance is needed for a fresh increase. The main resistance on the upside is still near the $250 and $255 levels. Uptrend Support for ETH The first major support for Ethereum is near the $230 level. The main uptrend support is near the $220 level, which acted as a strong resistance in the past few days. If the price fails to stay above the $220 support, there is a risk of a larger decline towards the $205 and $200 support levels in the near term. Technical Indicators Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone. Hourly RSI – The RSI for ETH/USD is still well below the 50 level, with a negative bias. Major Support Level – $230 Major Resistance Level – $240 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Ripple failed to continue higher above $0.2150 and declined sharply against the US Dollar. XRP is showing bearish signs just like bitcoin and it could dive further below $0.2000. Ripple traded as high as $0.2146 and recently started a sharp decline against the US dollar. The price is now trading well below $0.2050 and remains at a risk of more losses. There was a break below a key bullish trend line with support near $0.2060 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair is likely to continue lower if it breaks the $0.2000 and $0.1950 support levels. Ripple Price Turns Red After a steady rise, ripple price faced a strong selling interest near the $0.2150 resistance. The key driving force was bitcoin, declining more than 6% below the $10,000 and $9,500 levels. XRP price followed a bearish path from the $0.2146 high and it declined sharply below $0.2100. There was a break below the $0.2050 support and the 100 hourly simple moving average. Moreover, there was a break below a key bullish trend line with support near $0.2060 on the hourly chart of the XRP/USD pair. The pair traded as low as $0.1977 and it is currently correcting higher. It recovered above the $0.2000 level. Ripple Price Ripple managed to climb above the 23.6% Fib retracement level of the recent decline from the $0.2146 high to $0.1977 low. However, the price struggled to continue above $0.2050. It is currently following a short term ascending channel with support near $0.2010. If the price fails to stay above the $0.2000 support zone, it is likely to resume its decline. The first major support is near the $0.1950 level, below which it could revisit the main $0.1920 support. Any further losses may perhaps start a significant decline towards the $0.1800 level in the near term. Recovery in XRP? On the upside, an initial resistance is near the $0.2050 level and the 100 hourly simple moving average. The next major resistance is near the $0.2060 level or the 50% Fib retracement level of the recent decline from the $0.2146 high to $0.1977 low. To start a fresh increase, the price must surpass the $0.2060 and $0.2065 resistance levels. Any further gains could lead the price towards the $0.2100 zone in the coming sessions. Technical Indicators Hourly MACD – The MACD for XRP/USD is slowly moving into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well below the 40 level. Major Support Levels – $0.2000, $0.1950 and $0.1920. Major Resistance Levels – $0.2050, $0.2060 and $0.2100. Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin fell $1,500 in just three minutes in an overnight price crash Monday. But the dip has not deviated the world’s leading cryptocurrency from extending its uptrend. A top stock market analyst noted that risky assets would keep growing in value as long as there is a stimulus. Bitcoin has yet another Black Swan event on Tuesday as its price crashed by $1,500 in just three minutes. XBTUSD crashed $1,500 overnight | Source: TradingView.com, BitMEX Observed noted that a misbalancing in the Bitcoin futures’ funding rate caused the crash. That represents a fee that bullish contract holders have to pay to bearish contract holders every eight hours – or vice versa. Before the crash, the derivative market on BitMEX was majority long, which means most of the traders expected the bitcoin price to rally further into the week. That allowed the funding rate to hit new weekly highs at 0.19 percent. On a typical day, it hovers near 0.01 percent. Nevertheless, when the price started moving southward, it liquidated about $120 million of long contracts – causing a “Long Squeeze.” So it seems, overleveraged positions elaborated a small price dip into a bigger one, crashing bitcoin from near $10,100 to as low as $8,600. Bullish Fundamentals Intact Despite the dip, Bitcoin is maintaining its overall yearly gains above strong support levels. So it seems, the crypto market, which is used to surprising wild move, would likely ignore the $1,500 price crash in the context of more relevant macro developments. For instance, the U.S. stock market was as bizarre as Bitcoin on Tuesday. The benchmark S&P 500 rose higher even though investors assessed the civil unrest across the U.S. and tensions with China. A top stock market analyst noted that most of the short-term negative fundamentals do not matter. Edward Moya of Oanda told WSJ that risky markets have support from the Federal Reserve’s open-ended stimulus program. At the same time, Bitcoin’s erratic yet growing positive correlation with risky equities also makes it eligible to keep a similar upside sentiment. “There’s just so much stimulus, it’s propping up the market. The stock market is now no longer a true reflection of the economy, and you’re going to see that remain the case for several years.” Stifel (NYSE: SF) also said in an investor note on Wednesday that the S&P 500 could rally another 8 percent to 3,250 by August 30. The Wall Street firm noted that bottoming economic data, valuation growth, and optimistic technical outlook will offset risks associated with lower earnings. “We believe the S&P 500 crossing the 50 and 200-day moving average on May 26 – May 27 signals a price of 3250 by August 30. Following a recession bear market, [crossing the moving averages] has historically signaled a price gain of 8% over the next 3 months on average,” the note read. Bitcoin Bitcoin painted a similar technical structure on its daily chart on May 20 amid its recovery rally. The cryptocurrency, like the S&P 500, had bottomed in March 2020, crashing erratically by more than 60 percent in just 24 hours. Nevertheless, it negated its losses entirely after rising by up to 161.25 percent, leading many observers to see its growing positive correlation with the S&P 500. BTCUSD SPX Correlation | Source: TradingView.com The connection between the two markets showed signs of decoupling in May 2020. But it resumed back against the backdrop of the rising Sino-U.S. geopolitical tensions over Beijing’s push for tighter security laws in Hong Kong. Bitcoin and S&P 500 erased part of their recent gains last Friday in tandem. The losses surfaced as investors anticipated a new cold war between the U.S. and China. The sentiment, in turn, weighed on the intraday risk-on sentiment. Conflicts Despite its optimistic predictions for the S&P 500, Stifel mentioned a few risks that could spoil its rally. The firm noted that the growing number of virus infections could put a brake on the U.S. benchmark’s upside moves. Meanwhile, it asserted the number of virus-attributed deaths would go down to zero by the end of next month. The real risk, Stifel, could come from political and media reactions to the virus. ‘It may have unpredictable economic effects,’ the firm said. Meanwhile, Bitcoin will have its own-risks to battle. The cryptocurrency, now among the most profitable post-March asset, remained vulnerable to price manipulation at unregulated crypto derivatives exchanges. On a technical front, it has also failed to move above a long-term resistance trendline. BTCUSD is trading 150 percent higher from its mid-March lows | Source: TradingView.com But market analysts remain optimistic without even referring to the S&P 500. One notable trader said that the “trendline” will become weaker after each retest. “General rule of thumb – the more times a trendline resistance gets tested the weaker it becomes,” he explained. “Whoever artificially suppressing $10k to hold this “resistance meme” is repeating the mistake of 2018 “$6k support” holder.” That puts Bitcoin’s upside target near $10,500, its year-to-date high.
Originally from Bitcoinist.com https://ift.tt/2XUYzXx
Bitcoin is down more than 6% and it trimmed most its gains above $10,000 against the US Dollar. BTC price is currently holding the key uptrend support at $9,300, but it is vulnerable to a larger decline. Bitcoin failed to continue higher and declined sharply below the $10,000 pivot level. The price broke many supports near the $9,740 and $9,500 levels. There was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is currently holding a crucial uptrend support near the $9,300 level. Bitcoin Price Nosedives After a strong upward move above $10,000, bitcoin price failed to continue higher against the US Dollar. BTC formed a short-term top near the $10,366 level and recently started a strong decline. It broke many supports near the $10,000 and $9,740 levels to enter into a bearish zone. Moreover, there was a break below a key bullish trend line with support near $9,735 on the hourly chart of the BTC/USD pair. Bitcoin Price Bitcoin price is now trading well below $9,600 and the 100 hourly simple moving average. It tested the main uptrend support at $9,300 (the previous breakout zone) and traded as low as $9,299. It is currently consolidating losses above the $9,300 and $9,400 support levels. An initial resistance is near the $9,550 level. It is close to the 23.6% Fib retracement level of the recent decline from the $10,366 high to $9,299 low. It seems like there is a short term contracting triangle forming with resistance near $9,550 on the same chart. If there is an upside break above the $9,550 level, the price could face hurdles near the $9,600 level and the 100 hourly simple moving average. The next major resistance is near the $9,740 level. The main hurdle is now forming near the $9,800 region or the 50% Fib retracement level of the recent decline from the $10,366 high to $9,299 low. More Downsides in BTC? The $9,300 support zone holds a lot of significance in the near term. If bitcoin fails to stay above the $9,300 support, it could spark another sharp decline. An initial support is near the $9,000 level, below which there is a risk of a larger decline towards the $8,500 and $8,400 levels in the near term. Technical indicators: Hourly MACD – The MACD is slowly moving away from the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level. Major Support Levels – $9,400 followed by $9,300. Major Resistance Levels – $9,550, $9,600 and $9,740.
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As of June 1st, Ethereum was up 25% in the past week alone. But right on cue, the cryptocurrency market saw a harsh correction on Tuesday morning that wiped out the gains seen on Monday. Bitcoin crashed $1,500 in three minutes on BitMEX, while other cryptocurrencies such as ETH experienced losses in their own markets. This was a drop that took the wind out of the cryptocurrency market’s proverbial sails. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps John Bollinger, a prominent technical analyst known for making the indicator the “Bollinger bands,” said that Bitcoin investors should be cautious at current prices: “The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short.” The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short. — John Bollinger (@bbands) June 2, 2020 Despite this, some remain optimistic about cryptocurrencies, Ethereum especially. Top Analyst Still Bullish on Ethereum Ethereum is primed to fall towards the low-$200s after today’s correction but is still on track to hit $300 by the end of June according to a top analyst. The analyst in question shared the chart below illustrating that ETH recently saw a textbook break out of a symmetrical triangle, showing the trend is still positive: “As I don’t believe this dip is the end of all crypto, I’m patiently waiting to long low $200 $ETH into $300 by the end of the month.” Ethereum price chart and outlook shared by prominent trader “Galaxy,” who goes by @GalaxyBTC on Twitter. Another trader shared the optimism, writing: “Things not looking that bad right now, would be nice if we could see a retest of the $220 level before we continue higher as we have not even validated it as support. Even with today’s pretty harsh selloff, this structure is still remaining as bullish for now.” Reasons to Be Bullish on ETH There is a confluence of fundamentals corroborating the widely bullish sentiment investors have about Ethereum. As reported by NewsBTC previously, Defipulse.com shared that there is now over $900 million worth of assets locked in DeFi applications. It’s a trend that shows DeFi is growing, and as a result, so should Ethereum. The founder of Ethereum-based app MakerDAO said: “4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.” Adding to the expectations of ETH upside is an analysis by the founder of Mythos Capital, Ryan Sean Adams. He wrote that the asset is “doubly” undervalued, noting that the transaction fees collected by Ethereum miners have recently spiked. This is relevant because according to Adams, the price of ETH has been closely correlated with the transaction fees collected for the past five years. Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Featured Image from Shutterstock Tags: XBTUSD, BTCUSD, BTCUSDT
Just 24 hours ago, Bitcoin surged above $10,000 for the first time in weeks in a move that shocked the market. During the rally, over $100 million worth of short positions were liquidated as the asset jumped nearly $1,000 higher within an hour. But just as fast as BTC has rallied, it has reversed. As reported by Bitcoinist previously, the asset was hit with a barrage of sell orders that took the asset as low as $8,600 on BitMEX. The sell orders took Bitcoin more than $1,500 down in three minutes, liquidating another $100 million in derivatives positions in the process. Image from Skew.com showing the value of BitMEX liquidations over the past few days. Bitcoin Uptrend Still Intact, Analyst Says Bitcoin’s drop today was devastating for bulls. The cryptocurrency fell back below the $10,000 psychological support, while the bullish momentum that came from the day earlier was lost. Yet according to a prominent chartist the uptrend “looks intact.” Nunya Bizniz shared the image below that illustrates this. It shows that today’s price drop ended exactly where a technical uptrend formed after the $3,700 March 2020 lows is, suggesting that bulls remain in control from a medium-term perspective. Price chart showing Bitcoin is still in an uptrend from popular chartist Nunya Bizniz (@pladizow on Twitter). While the uptrend may be intact, Bitcoin is still under a crucial resistance level: $10,500. $10,500 is the point at which Bitcoin failed to pass twice in the past 12 months: once during the “Xi Pump” and another time during February’s rally to $10,500. The fact that BTC has failed to break this level after successive takes at breaking it shows that the crypto market is not yet out of the woods. Robert Sluymer of Fundstrat Global Advisors, for instance, recently made the following comment on the importance of the level: “Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma.” Fundamentals Are Still Leaning Bullish Whatever the case, the fundamentals of Bitcoin remain bullish. Financial analyst and author Preston Pysh identified thttps://bitcoinist.com/analyst-why-bitcoin-market-will-get-interesting-after-thursdays-difficulty-change/hree such fundamental factors that suggest a further rally in the price of Bitcoin is in the works. These factors are as follows: Through Grayscale’s Bitcoin Trust, institutional investors have been stacking a vast amount of Bitcoin since the halving and even prior to that. The Chinese yuan has started to fall against the U.S. dollar to lows not seen since 2019 due to Hong Kong tensions. The U.S. is looking to impose sanctions on China because a new law threatens the autonomy of Hong Kong, analysts say. BTC may act as a safe haven in this scenario, just as it did when the yuan devalued in 2019. The U.S. dollar and financial system may be reaching a point where it will “break” due to macro trends, according to Pysh. This would force the creation of a new financial system. Featured Image from Shutterstock Tags: XBTUSD, BTCUSD, BTCUSDT
Originally from Bitcoinist.com https://ift.tt/3gNZmCj
Just 24 hours ago, Bitcoin had rocketed back above $10,000 for the first time in weeks. It was a move that liquidated over $100 million worth of BitMEX shorts, shocking investors across the industry. At the time, investors were extremely optimistic. Galaxy Digital co-founder and CEO Mike Novogratz shared around the time of the surge that Bitcoin was primed to “move fast” after crossing $10,000. “$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train,” Novogratz said. $BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train. — Michael Novogratz (@novogratz) June 1, 2020 Chief executive of Real Vision Raoul Pal echoed the optimism, noting that Bitcoin’s rally was the “biggest chart pattern break out” in the asset’s lifetime. But as fast as the asset rallied, it fell. The cryptocurrency reverted lower on Tuesday morning, falling from $10,100 to $8,600 in the span of three minutes in a massive liquidation event. BitMEX’s Bitcoin price chart from TradingView.com. Unfortunately for bulls, a legendary technical analyst believes that more downside is in the works. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Bitcoin Primed to Move Lower, John Bollinger Says The creator of the world-famous “Bollinger Bands” indicator and a prominent technical analyst, John Bollinger, recently said that Bitcoin investors should be cautious at current prices: “The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short.” The is a Head Fake at the upper Bollinger Band for $btcusd, time to be cautious or short. — John Bollinger (@bbands) June 2, 2020 The analyst was referring to the indicator that shows his name, which shows that BTC broke to the highs of a range but failed to hold above it. This suggests that a reversion lower is possible. Bollinger is known for making a number of crucial crypto market calls over the past few months. After Bitcoin started tanking lower in October, he said there was a “good potential for a Head Fake.” Days later, the cryptocurrency exploded 40% higher in 24 hours. And in the middle of December, he implied that BTC would form a macro trend per the Bollinger Bands. He was right when BTC started rallying just a few days later. Price Trapped Under $10,500 One of the key arguments touted by Bitcoin bears is that the leading cryptocurrency remains below the key resistance of $10,500. $10,500 is the level at which the BTC price was rejected during two crucial rallies over the past 12 months: one time during the “Xi Pump” and another time during February’s rally to $10,500. The fact that BTC has made successive takes at the level without breaking past it suggests the crypto market is still situated in a downtrend. Robert Sluymer of Fundstrat Global Advisors, for instance, recently made the following comment on the importance of the level: “Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma.” Next directional move on tap for $BTC's as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week's resilience as BTC's quickly rebounded from its 200-dma. pic.twitter.com/QrZ4SxYsxR — Robert Sluymer (@rsluymer) May 14, 2020 Related Reading: Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case Featured Image from Shutterstock Tags: XBTUSD, BTCUSD, BTCUSDT
Bitcoin’s explosive rally past $10,000 yesterday afternoon liquidated tens of millions in short positions The decline from this level seen this morning also led to mass liquidations amongst traders It is imperative to note that virtually all previous breaks above this level have been met with heavy selling pressure that results in capitulatory downtrends One factor that could spell trouble for Bitcoin is the fact that funding rocketed following the recent rally Bitcoin saw a sharp movement yesterday afternoon that allowed it to climb from the mid-$9,000 region to highs of $10,400. This surge came about unexpectedly and led BTC to shatter the heavy resistance that it was previously facing between $9,700 and $10,000. Following this breakout, the crypto declined to lows of $9,000. One byproduct of yesterday’s fleeting rally was a rapid increase in funding across all major trading platforms. This means that it was costly to be in a long-position and was a major warning sign for the strength of its rally. This also came about in tandem with the number of long positions rocketing, which led one analyst to note that a long squeeze is imminent. Bitcoin Posts Failed Breakout After Traders Piled into Long Positions Overnight, Bitcoin stabilized following its immense uptrend that led it to highs of $10,400. The crypto did lose its momentum when it reached these highs, facing a rejection this morning that ultimately led it to lows of $9,000. One factor that offered investors a grave warning sign for BTC’s recent uptrend was the fact that the number of leveraged long positions rocketed in the time after this move first occurred. This provided sellers with fuel to spark the long squeeze, which ultimately led it down to lows of $9,000 on most major trading platforms. The rise in margin long positions prior to today’s decline can be clearly seen while looking at the below chart: Image Courtesy of Byzantine General BTC Funding Rates Rocketed Following Yesterday’s Bullishness Another troubling byproduct of yesterday’s rally was rocketing funding rates across major trading platforms. This means that it was costly to be in a long position, and high funding is almost always followed by sharp price declines. One popular crypto commentator spoke about this in a recent tweet, explaining that although funding rates can remain irrational for extended periods of time, it is something to be carefully considered by traders in the future. “Bitcoin and Ethereum funding rate on BitMEX perp futures are 0.16% and 0.19%. Normally, bitcoin funding rate is at around 0.01%. Longs are the overwhelming majority in this ongoing run. Funding rates can remain irrational for long periods of time. But, something to consider.” Featured image from Shutterstock. BTCUSD, BTCUSDT, XBTUSD
Originally from Bitcoinist.com https://ift.tt/2zUKj9n
Bitcoin cash price is up more than 8% and it broke the key $250 resistance. BCH seems to be outpacing BTC and it could even climb towards $275 or $300 in the near term. Bitcoin cash price is gaining bullish momentum and it recently broke the $250 resistance against the US Dollar. The price is now trading well above the $255 level and the 100 SMA (4-hours). There is a major bullish trend line forming with support near $246 on the 4-hours chart of the BCH/USD pair (data feed from Kraken). The pair is likely to accelerate higher towards the $275 high or even $300. Bitcoin Cash Price Could Revisit $300 Recently, there was a strong increase in bitcoin price above the $10,000 resistance. It sparked a major surge in bitcoin cash price above the $240 and $250 resistance levels. A strong support base was formed above $235 and the 100 simple moving average (4-hours). The recent surge was such that the price even broke the $255 pivot level. BCH is now testing the 1.236 Fib extension level of the last key decline from the $255 swing high to $220 low. There is also a major bullish trend line forming with support near $246 on the 4-hours chart of the BCH/USD pair. Bitcoin Cash Price The current price action is very bullish, suggesting more gains in the near term above $265. An immediate resistance is near the $270 level. The first major resistance is near the $275 zone (the last key resistance). It is also close to the 1.618 Fib extension level of the last key decline from the $255 swing high to $220 low. If bitcoin cash surges above the $270 and $275 resistance levels, the bulls are likely to aim a test of the $300 resistance zone. An intermediate resistance could be near the $288 level. Dips Supported in BCH In the short term, there could be a minor pullback in bitcoin cash from $262 or $265. On the downside, the first support is seen near the $255 level (the recent breakout zone). The main support is now forming near the trend line and $245. Any further losses may perhaps lead the price towards the $235 support and the 100 simple moving average (4-hours). Technical indicators Hourly MACD – The MACD for BCH/USD is currently gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BCH/USD is now well above the 60 level, with a bullish angle. Key Support Levels – $255 and $245. Key Resistance Levels – $275 and $300.
Bitcoin rose above $10,000 in an overnight rally Monday for the first time since May 8, 2020. The gains surfaced as investors sold the US dollar for riskier assets amid optimism about economic recovery. Other factors, including the U.S.-China tensions and the stock market’s upside, also contributed to the rally. Bitcoin rose Monday in a surprising rally that took its price up by almost $1,000 in less than 12 hours. BTCUSD jumps $10,000 price level | Source: TradingView.com The benchmark cryptocurrency climbed 10.17 percent to $10,428 ahead of the UTC midnight close. The wild move uphill helped bitcoin break above crucial technical resistances defined by a long-term descending trendline and a $10,000 price level. It further indicated traders’ likelihood of testing $11,000 in the coming weeks. Weaker Dollar The moves in the bitcoin market took its cues from supportive macro fundamentals. On Monday, the WSJ Dollar Index, which measures the greenback against 16 other currencies, plunged 0.57 percent to 92. Observers noted that investors sold the dollar to buy riskier currencies, a sentiment that may have fueled the bitcoin price rally above $10,000. WSJ Dollar Index falls in three back-to-back sessions | Source: WSJ The index was trading at a new year-to-date high – near 97 – in March 2020. The month saw almost every risky asset falling to its record yearly lows amid a global market rout. The meltdown appeared as major economies entered a lockdown stage amid a fast-spreading virus pandemic. Investors sold other assets, including Bitcoin, to seek safety in the US dollar. But the situation is now flipping back towards normal. The number of infections and deaths caused by the virus dropped in the U.S. Europe, and China. It prompted governments to ease lockdown restrictions, leading to a modest rise in factory activity. Chris Turner, the head of the Forex strategy at ING Bank, said the confidence is slowly returning into the market, which is prompting investors to short the dollar and move into riskier alternatives. The fiat homecoming, overall, is leaving Bitcoin in a healthier state. The U.S.-China Rift Bitcoin’s tick above $10,000 also appeared against the backdrop of an escalating geopolitical rift between the U.S. and China. Traders pinned their sentiments on Donald Trump’s repeated warnings to Beijing over their controversial Hong Kong security law. While the U.S. president is yet to take substantial action against the mainland, investors have already started weighing in the possibilities of yet another trade war. The sentiment surfaced after China ordered its regional companies to temporarily stop the purchasing of U.S. farm products, including soybeans. “If it is true China will buy [fewer] soybeans, it will increase the chances of escalation with the U.S.,” Seema Shah, chief strategist at Principal Global Investors, told WSJ. Bitcoin tends to react positively against a trade war. The cryptocurrency rose by more than 200 percent against the one that started in 2019. Traders believe it would perform a similar upside stunt as worries over the new “cold war” between the U.S. and China rise.
Originally from Bitcoinist.com https://ift.tt/36PXOmE
Bitcoin is up more than 5% and it broke the main $10,000 resistance against the US Dollar. BTC price could correct lower in the short term towards $9,950 before it starts a fresh increase. Bitcoin rallied recently and broke many key hurdles near $9,950 and $10,000 (as discussed yesterday). The price traded to a new weekly high at $10,371 and it is currently correcting lower. There is a key connecting bullish trend line forming with support near $9,740 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to find a strong support near the $9,950 level (the previous major hurdle). Bitcoin Price Rallies 5% Yesterday, we discussed the chances of a larger rally in bitcoin price above $9,750 against the US Dollar. BTC did gain traction above the $9,750 resistance and rallied more than 5%. It broke many key hurdles near $9,950 and $10,000 to move into a positive zone. A new weekly high is formed near $10,371 and the price is now trading well above the 100 hourly simple moving average. Bitcoin is currently correcting lower from $10,371 and trading below $10,200. It broke the 23.6% Fib retracement level of the recent rally from the $9,378 low to $10,371 high. However, there are many supports on the downside, starting with $10,000. The first major support is near the $9,950 (the previous major resistance). The next support is near the $9,875 level or the 50% Fib retracement level of the recent rally from the $9,378 low to $10,371 high. There is also key connecting bullish trend line forming with support near $9,740 on the hourly chart of the BTC/USD pair. On the upside, the recent high near $10,371 is a short term resistance zone. Bitcoin Price If the bulls manage to clear the $10,371 high, it could easily test the $10,500 resistance zone. Any further gains could lead the price towards the $11,200 pivot level in the coming sessions. Key Breakout Zone Now Support The previous major hurdle near the $9,950 zone could act as a strong support for bitcoin. If the price continues to slide, the last line of defense might be $9,700. Any further losses might start a downside extension towards the $9,500 level or the 100 hourly simple moving average in the near term. Technical indicators: Hourly MACD – The MACD is currently moving nicely in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 85 level. Major Support Levels – $9,950 followed by $9,875. Major Resistance Levels – $10,375, $10,500 and $10,800.
From the all-time high of $1,400, Ethereum is down by approximately 80%. Due to a collapse in the ICO bubble and the narrative shifting from altcoins to BTC, the -80% performance ETH has registered is much worse than that of Bitcoin. From its all-time high of $20,000, BTC is down less than 50%. While there are many believing the leading cryptocurrency will continue to outperform altcoins, a prominent investor is throwing his weight behind Ethereum. Related Reading: This Crypto Use Case Has Never Been as “Underrated” Due to Twitter and Trump Ethereum Poised to Outperform Bitcoin? Bitcoin’s performance may be impressive, but even more impressive is that of Ethereum. The second-largest digital asset is up more than 22% in the past week alone, according to data from Coin360.com. Over that same time period, BTC is up “only” 14.45%. Real Vision chief executive Raoul Pal, who commented on the chart of ETH/BTC after the recent breakout, said in reference to the chart below: “It even looks like Ether will outperform Bitcoin at some point (no position yet). Please remember: No tribal attacks about bitcoin vs ethereum. They are two different things and two different ecosystems.” ETH/BTC chart from prominent Wall Street investor and analyst Raoul Pal (@RaoulGMI on Twitter). The chart shows Ethereum breaking out of a crucial resistance against Bitcoin that formed after the February highs. Pal’s optimism about Ethereum’s prospects, especially against Bitcoin, has been echoed by a limited set of other market participants. Per Mohit Sorout — partner at crypto hedge fund Bitazu Capital — it is “quite possible that ETH has printed a major cycle low [against Bitcoin],” pointing to the chart seen below. He claimed in late April that the chart shows a bullish “weekly market structure.” As to why exactly the chart signals that upside is likely, he pointed to two factors: ETH/BTC has begun to print consecutive higher lows and higher highs, indicative of a reversal And the directional movement index (DMI) indicator has recently crossed bullish. Quite possible that $ETH/ $BTC has printed a major cycle low. Weekly market structure is bullish pic.twitter.com/0lYYK1V7zP — Mohit Sorout (@singhsoro) April 25, 2020 There Are Reasons to Be Bullish on Ethereum Pal and Sorout are some of the only prominent crypto analysts to have said that ETH has a good chance at outperforming Bitcoin in the next bull run. Yet there are strong fundamental reasons to be bullish on the cryptocurrency. As reported by NewsBTC previously, data site DeFi Pulse has shown that there is now $953 million worth of assorted crypto assets locked into DeFi applications. It’s a trend that shows DeFi is growing, and as a result, so should Ethereum. The founder of Ethereum-based app MakerDAO said: “4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.” Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Featured Image from Shutterstock
It’s been an explosive past few days for Bitcoin. After tanking as low as $8,600 on the weekend before last, the cryptocurrency breached $10,000 just hours ago. On Bitstamp, BTC traded as high as $10,429, according to TradingView.com data. While the asset remains below the yearly highs of $10,500, a prominent analyst noted that this rally has formed Bitcoin’s largest breakout ever. This suggests that the crypto market is heading much higher than it is in the long run. Bitcoin Sees Massive Breakout, Setting Stage for Macro Rally Chief executive of Real Vision Raoul Pal shared the below chart in the wake of Bitcoin breaking past $10,000, attaching the comment: “Here it is on a log scale… this is the biggest chart pattern break out thus far…” Crucial Bitcoin breakout chart shared by Real Vision CEO Raoul Pal (@RaoulGMI on Twitter). The chart depicts that Bitcoin is now trading above the downtrend that formed at the $20,000 all-time high. The technical downtrend marked the $14,000 2019 high, along with the $10,500 high seen earlier this year. Pal did not explain the significance of this technical breakout during this thread, but he has in a recent research note. In the April newsletter from his macroeconomic analysis firm Global Macro Investor obtained by NewsBTC, he wrote that “I think it hits $100,000 in the next two years alone” in reference to a chart almost identical to the one above. The only difference was that when he shared the chart, it had not broken past the resistance. Not the Only Reason Why Raoul Pal Is Bullish Bitcoin’s crucial technical breakout isn’t the only reason why the former Goldman Sachs executive is bullish on the cryptocurrency. Pal remarked in a Twitter thread published in early May that the confluence of record-level fiscal and monetary stimulus, coupled with the Bitcoin halving, is setting BTC up for success in the long run: “This is confirmed by stock to flow models by PlanB and the breakout has happened almost exact at The Halvening. Add to that HUGE the ENTIRE worlds central banks are […] printing money like CRAZY. quantitative easing fiat meets the hardest money that automatically quantitatively tightens.” This led him to the conclusion that Bitcoin currently has one of the “best set ups in any asset class I’ve ever witnessed…technical, fundamental, flow of funds and plumbing.” Where Could Bitcoin End Up? While he has floated the $100,000 price target, the investor has mentioned a $10 trillion market capitalization in the past. Speaking to Max Keiser, Pal said that Bitcoin could eventually rival the market capitalization of gold, which sits around $9 trillion: “If it becomes an ecosystem, and we believe it will be and it will take the whole ecosystem with it as well, then yes, I think a $10 trillion number is easily achievable within that process.” For context, a $10 trillion market capitalization corresponds with more than $500,000 per coin. Featured Image from Shutterstock
Originally from Bitcoinist.com https://ift.tt/36SgNNJ
Bitcoin has seen some bull-favoring price action throughout the past day, rallying up to highs of $9,600 overnight after buyers absorbed the selling pressure that led it down to lows of $9,300. The cryptocurrency now appears to be well-positioned to see further upside in the days and weeks ahead, as it is currently in the process of breaking above a year-long descending trendline that it has been respecting. This comes as one analyst is laying out a path forward for the cryptocurrency to rally up to its previously established all-time highs. The analyst notes that Q2 is a historically bullish quarter for BTC, and it could be mirroring the price action seen in 2015 prior to it entering a multi-year uptrend that ultimately led it to highs of $20,000. Bitcoin Flashes Signs of Immense Strength as Analysts Eye Further Upside At the time of writing, Bitcoin is trading up marginally at its current price of $9,560. The cryptocurrency did see some volatility yesterday in the hours leading up to its weekly and monthly candle close. This led Bitcoin to decline to lows of $9,300 before buyers stepped up and helped propel the cryptocurrency higher, stopping it from seeing any notable decline. It is important to note that BTC has faced harsh rejections at $9,700 on multiple occasions throughout the past week, and this happens to be the level where the resistance zone stretching past $10,000 begins. That being said, a failure to surmount this level in the days ahead could be dire. One factor that could help Bitcoin smash through this resistance is the fact that it is currently in the process of breaking above a descending resistance line that has been formed and respected in the time since it set highs of $13,800 last June. A popular cryptocurrency analyst on Twitter spoke about this trendline in a recent tweet, explaining that Bitcoin’s macro chart is “not how a bearish chart looks” – alluding to the fact that its ongoing break above this line is bullish. Image Courtesy of CryptoBirb BTC On Track to See Notable Price Rally if Historical Pattern Plays Out One popular cryptocurrency analyst explained that Bitcoin is following a similar pre-rally price pattern to that seen in 2015. He explains that there are a few factors that must come into place for this to play out, but that it is a growing possibility that the crypto soon enters a full-fledged bull run. “Q2 has historically seen price rally. Q3 has more often than not seen price print a corrective leg. 21 Weekly EMA is key. Break below the 21 w-ema = corrective pullback / leg similar to that of 2015 as highlighted,” he noted while pointing to the chart seen below. Image Courtesy of TraderXO Featured image from Shutterstock.
Like Bitcoin, minutes ago Ethereum saw a strong surge to the upside. After rallying in excess of 15% over the past week, the second-largest cryptocurrency saw a 10% rally over the past few hours, reaching as high as $251. This is the highest price ETH has traded at since March 7th, just days before the capitulation that brought Bitcoin to $3,700 and ETH to $88. Ethereum price chart from TradingView.com Like with the Bitcoin surge, few investors expect this upswing in the value of Ethereum. Skew.com, a crypto derivatives tracker, has found that approximately $500,000 worth of ETH short positions were liquidated on BitMEX alone. Though this $500,000 adds to the millions of liquidations that have taken place over the past three days. The altcoin saw fewer liquidations than the Bitcoin market because it is relatively small. Also, ETH was already showing it had an upward skew prior to this latest jump higher, meaning traders were largely prepared. More Upside In the Works for Ethereum As Bitcoin just passed $10,000, all eyes are currently on the foremost cryptocurrency. Fortunately for bulls, most analysts believe that more upside is in the works for BTC, and, as a result, ETH should move higher as well. Galaxy Digital co-founder and CEO Mike Novogratz recently said the following: “$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train,” Novogratz said. Others shared this position. A prominent crypto trader shared that as it stands, there are few asks (sell orders) on BitMEX for Bitcoin, showing that bulls mean business and bears are hesitant to interrupt. Featured Image from Shutterstock
Bitcoin has finally done it. Minutes ago, the asset rocketed past $10,000 for the first time in weeks, reaching as high as $10,250 in a massive surge upward. This was a more than 7% jump from where the cryptocurrency was trading prior to the move. Traders were largely unaware that this move was going to happen. As a result, data from Skew.com shows that more than $80 million worth of short positions were liquidated on BitMEX alone. These shorts were liquidated within the span of an hour, and these numbers only count BitMEX, not other margin exchanges. Mike Novogratz Expects More Bitcoin Upside Galaxy Digital co-founder and CEO Mike Novogratz expects more upside. Just an hour prior to this explosive surge higher, he noted that Bitcoin was “coiling” and was poised to “take out $10,000 soon.” Novogratz explained that with government balances skewing in favor of debt, there is a narrative rapidly forming that could boost Bitcoin. This echoes the lines of Tesla CEO Elon Musk and billionaire hedge fund manager Paul Tudor Jones, who said that the increase in government spending and debt make BTC look good. “$BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train,” Novogratz said. $BTC is coiling. It will take out 10k soon. All the tragic turmoil in the USA adds to the narrative. Budgets are going one way and it’s the opposite of balanced. When 10k goes it will move fast. Get on the train. — Michael Novogratz (@novogratz) June 1, 2020 Novogratz believes that prices will “move fast” now that $10,000 has been taken out, presumably referencing the importance of the $10,000 resistance. An Auspicious Candle Close Bitcoin’s outperformance comes shortly after the cryptocurrency saw an extremely auspicious candle close for the month of May. As reported by NewsBTC previously, the asset closed May above a crucial resistance — $9,360. An analyst explained the importance of that level with the following: “We’ve not had a Monthly close above 9360 in nearly 12 months. Rejections from this level have led to tests of $6k and eventually $3k.” When Bitcoin failed to pass this level in February, prices dove to $3,700 during March’s capitulation. And when BTC was rejected from this level in 2018, there was a brutal bear market to $3,150 in the ten months that followed. The fact that BTC closed above it is “incredibly important for bulls,” as one analyst described. Featured Image from Shutterstock
Ethereum’s intense momentum stalled after it peaked at $145 this weekend. The cryptocurrency now appears to be well-positioned to see further upside, as this momentum significantly bolstered its market structure. The recent movement that led ETH to rally from the lower-$200 region to highs of $245 left a trail of destruction in its wake, liquidating more than $50 million in leveraged positions. It is important to note that the vast majority of liquidated positioned were shorts, and the immense quantity of margin long positions on Bitfinex have yet to be liquidated. One analyst is now noting that he believes the cryptocurrency could be well positioned to see further upside in the days and weeks ahead. Ethereum Rallies to Fresh Multi-Month Highs, Decimating Short Positions Investors were quite surprised to see Ethereum post some massive upside this weekend, with the movement coming about out of nowhere and leading Bitcoin and the aggregated market higher. At the time of writing, Ethereum is trading up just over 1% at its current price of $238, marking a notable climb from its multi-day lows of roughly $205 that were set just prior to its immense uptrend. The cryptocurrency was able to rally up to highs of $245 before losing its strength and declining to its current price levels. ETH is now trading right around where its previous local highs were set, and this does appear to be a near-term support level. In order for the cryptocurrency to rally back up to its yearly highs of $290, it is probable that Bitcoin will need to firmly surmount $10,000 and help give the entire market some upwards momentum. This latest volatility did wipe out a massive amount of short positions, with over $50 million being liquidated over the span of a few days. Data via Coinalyze This has further heightened the spread between the number of Ethereum long and short positions. The number of ETH long positions on Bitfinex just recently set all-time highs. Analyst: ETH Could Be Well Positioned to Start a Massive Rally One popular cryptocurrency analyst recently explained that Ethereum’s recent bounce had marked the result of a strong defense of a key support level. That same analyst is now noting that he believes the crypto’s uptrend could still be in its early stages, especially if it is able to firmly surmount the heavy resistance it is approaching against its Bitcoin trading pair. “Flip current resistance and I think we have our rally,” he noted while pointing to the chart seen below. Image Courtesy of Ethereum Jack It does appear that its high-time-frame resistance levels sit around 0.029 and 0.035 BTC, which are both a way up from its current price of 0.025 BTC. Featured image from Shutterstock.
Bitcoin has seen mixed price action in recent times, struggling to surmount $10,000 despite gaining a solid foothold within the $9,000 region Analysts are now noting that the cryptocurrency appears to be at a turning point as it trades directly between two CME gaps One analyst is also pointing to the massive BTC premium seen on the CME as a reason why the crypto is highly bullish Bitcoin saw some turbulent trading yesterday when sellers pushed it to lows of $9,300 before buyers stepped up and catalyzed a movement up to over $9,600. This choppy price action came about just prior to Bitcoin’s weekly and monthly candle close, and analysts have noted that its ability to close above $9,500 is an overtly bullish sign. It is important to note that the cryptocurrency now appears to be growing increasingly bullish as it hovers within the mid-$9,000 region. One analyst is pointing to the fact that Bitcoin’s price on the CME is currently $100 higher than its spot price. He believes that this indicates that the crypto is bullish at the moment, as futures traders on the platform are willing to pay a premium to have exposure to it. Bitcoin Consolidates as CME Price Spread Points to Further Upside At the time of writing, Bitcoin is trading down marginally at its current price of $9,560. This marks a slight climb from daily lows of $9,300 that were set yesterday evening. As the crypto consolidates within the mid-$9,000 region, analysts are now closely watching to see how it responds to the heavy resistance that it faces around $10,000. It has been rejected at this price level on multiple occasions, and an inability for it to firmly surmount it in the near-term would be a grim sign. One factor that could signal upside is imminent for the cryptocurrency is the fact that there is currently a positive price spread between Bitcoin’s price and its CME futures price. Analysts do believe this is a bull-favoring sign. “BTC – (CME) futures trading almost $100 above spot Bitcoin price, that’s very bullish, the wider the spread the more bullish the market until it flips,” one analyst noted. Which Price Level Might BTC Target Next? As for where Bitcoin may go next, the same analyst also noted that the cryptocurrency’s CME futures gaps may offer investors with some insight. Although these gaps by no means have to be filled, they are statistically very likely to be filled at some point in the future. Currently, BTC is trading squarely between two of these gaps, which sit at $7,650 and $11,715 respectively. “BTC (CME) small gap up on the weekly open. These are the gaps in the 4hr chart that are in need of filling,” the trader said while pointing to the below chart. Image Courtesy of Big Chonis Because the price premium on the CME is alluding to underlying bullishness, BTC may move to fill its gap at $11,715 first. Featured image from Shutterstock.
Originally from Bitcoinist.com https://ift.tt/3gITmL0
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