Raging Protests Across America Historically Bodes Well for Stocks; What About Bitcoin?

Coronavirus cases in the US are slowing down, rising by the slowest pace of 1.1% in five days after over 1.8 million reported cases and more than 106,208 deaths so far.

“Market upside ultimately depends on the path of the virus and the success of reopening,” wrote Credit Suisse Chief U.S. Equity Strategist Jonathan Golub on Monday.

The stock market opened higher only for Dow Jones to then drop by 0.38% along with the S&P 500 (currently above 3,000) and Nasdaq by 0.38% and 0.29% respectively.

When it comes to reopening the opening, Chicago which is hit hard by violent protests over a police custody death may delay its reopening.

Grappling with protests and cold war with China

The death of an African American at the hands of the police in the United States has set off mass protests against police brutality.

A chorus of criticism has erupted in many parts of the world alongside the unrest in the US over the death of 46-year old George Floyd last week.

Chinese officials and state media seized this news to compare these protests to the pro-democracy movement in Hong Kong, accusing Washington of hypocrisy.

Beijing repeatedly blamed “foreign forces” for inciting and diving Hong Kong protests.

The US administration has been vocal in support of Hong Kong’s pro-democracy movement. In response, Lijian Zhao the foreign ministry spokesman on Monday urged the US to protect the lawful rights of the minority and eliminate racial discrimination.

“US House Speaker Nancy Pelosi once called the violent protests in Hong Kong ‘a beautiful sight to behold.’… US politicians now can enjoy this sight from their own windows,” wrote Hu Xijin, editor-in-chief of nationalist tabloid Global Times.

Zhao also threatened with “counter-attacks” on the US for reversing Hong Kong’s special custom status.

This house of cards will come toppling down very soon

The stock market enters June on a higher trend despite multiple challenges ahead. S&P 500 rallied over 36% off its March 23 low despite a global pandemic, political and civil unrest, and economic and earnings downturn. Art Hogan of National Securities noted,

“At the levels we’re at, I wouldn’t be surprised to see the market take a pause and pull back.”

“We can say we’re slowly reopening and there’s going to be economic activity but it’s hard to defend valuations with so much unrest that we’re seeing going on in this country this weekend.”

But others believe protest won’t materially impact markets which is historically correct. As a matter of fact, stocks have risen while riots flared up. For the riots to have a major impact, there needs to be an expectation of long-lasting riots “otherwise they are noise as far as asset prices go.” Analyst Mati Greenspan said,

“Already hearing analysts with bated breath getting excited about buying stocks now because the #GeorgeFloyd protests will unleash additional monetary stimulus from the FederalReserve.”

“This house of cards will come toppling down very soon.”

According to Goldman Sachs analysts as well, the “remarkable journey” of US stocks is likely to stop, with its year-end target at 3,000, because of “numerous medical, economic and political risks dot the investment landscape.”

What about Bitcoin?

The world’s leading digital currency is trading around $9,550, up 0.80%. May marked the “highest monthly close on BTC in over 7 months.” So far, in 2020 BTC/USD is up 30.58% and nearly 50% in Q2 of 2020.

However, the June 1 candle has opened into resistance and it needs to “confirm itself above this structure” otherwise be ready for rejection and risk distribution.

If the stock market takes a hard hit, bitcoin could also be in danger of some extent of sell-off.

Historically, however, April, May, and June have been good months for bitcoin price performance which combined with investors preferring to hold their coins, institutional investors flocking to the digital currency and Federal Reserve’s balance sheet surpassing $7.09 trillion for the week ending in May 20 works in favor of bitcoin.

In the current global backdrop of social unrest, bitcoin — a decentralized, deflationary asset that is censorship-resistant and unseizable offers a great alternative.

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Author: AnTy

Lending and Interest Income Could Be the Path to Boost Crypto Adoption

Bitcoin and cryptocurrencies, in general, have come a long way from the early days when they were regarded as an internet bubble waiting to burst.

However, even after a decade, one constant criticism is that digital assets haven’t found a niche, and cannot be spent as easily as it has been advertised for long.

The one feather that these digital assets can borrow from the traditional financial world is lending and borrowing, which is the backbone of the majority of the financial ecosystem and banks. This interest-based income, lending and borrowing have already gripped the digital asset world which is evident from a report from Credmark.

The Credmark report suggests that the crypto lending market has already peaked $8 billion in loan amount by the end of the fourth quarter of 2020.

At present, the market size has grown to $10 billion and expected to grow exponentially as the popularity rises overtime. Not only that the global peer-to-peer lending marketplace has also registered annual transaction volumes in upwards of $85 billion.

Lending and Credit Gaining Popularity in Crypto Verse

Genesis Capital, one of the leaders in the crypto credit market, registered its best quarterly performance in the first quarter of 2020, registering $2 billion in the new loan organizations. The firm doubled on its previous quarterly performance and also registered a 20% spike in active loans from the previous quarter.

Celsius Network, the retail-focused crypto lending platform, registered similar growth and currently boasts of 100,000 retail clients and 260 institutional clients spread across 160 countries. The firm has registered $8.2 billion in coin loans to institutional clients since its inception in 2018.

Crypto lending is mostly based on the underlying assets, which makes an easier process as debt is collateralized with the crypto asset. Apart from these asset-backed crypto lending, another form of a lending ecosystem has risen in popularity over the last year in the crypto space i.e decentralized finance (defi).

Defi is an Ethereum based ecosystem which offers decentralized credit system to users based on the collateralized asset.

Users can lock their Ether, Wrapped Bitcoin and other ERC-20 based tokens in smart contracts and withdraw a loan in non-asset backed stablecoin like Dai and USDC. The defi ecosystem has gained massive popularity in the past year, and the value of assets locked as collateral has already crossed the $1 billion mark.

Thus, looking at the popularity, demand and success of lending and borrowing ecosystems in the decentralized space, it could pave the path for mass adoption of crypto in the long-term.

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Author: James W

Bitcoin Price Drops Over 10% to $8,700 BTC/USD Just 50 Hours Before Halving

Just Days Before Bitcoin Halving, What’s Happening To The Market?

The estimated time for the bitcoin block half reward halving is near 2 days from right now.

Bitcoin will turn 4,141 days old when it is set to take place on May 12, 2020. Since Satoshi released the network’s code into the wild on January 9, 2009, to the second halving on July 9, 2016 (1,403 days ago), Bitcoin is coming up on its third of 33 more halving splits set to unfold over the course of its mining rewards system.

bitcoin-block-half-halving-mining

Bitcoin is set to halve on May 12 (late Monday night May 11th in US), and there are several events going on in the market. Top of them is that the majority of the traders are expecting the value of the king coin to decrease. But, as bitcoin usually holds true to, fireworks ensue after the leading cryptoasset coin rallied over 130% in the past month by reaching just over $10,000 on May 7th only to drop 11% and counting down to $8,700 range today.

The crypto market managed to fall from $260 billion range down to as well as $238 billion, a $22 billion market cap value wiped in mere minutes.

As the third of thirty three more halvings of the bitcoin blockchain reward system for the miners who contribute computing hash-power to securing the network in exchange for freshly minted coins being issued every ten minutes begins to unfold, as expected, volatility for the price of bitcoin has begun to start with fireworks.

Crypto Exchanges Becomes The Main Bitcoin Sellers

As per a top on-chain analyst, crypto exchanges may be piling pressure to sell as the dump has begun on May 9th, just under 50 hours left before the BTC halving event.

Hypersheet co-founder, Willy Woo, explains that most of the crypto exchanges are likely to start disposing of their crypto storage earned from trading fees. Notably, crypto exchanges earn crypto as trading fees which they later sell in order to cater for their operational costs.

Given that the exchanges earn about 1,200 Bitcoins every day as trading fees that is currently equal to $11.6 million, this may lead to a slow down to a Bitcoin surge.

In addition, miners’ revenue is set to decrease from 1,800 to 900 BTC every day after the halving, Woo states.

In this regard, after the halving, the risk of a main sell-off will come from exchanges as opposed to miners. He explained:

“Post this 2020 halvening miners will cease to be the biggest sellers of Bitcoin. It’ll be the dawn of the crypto exchange as the leading seller.”

Perpetual Funding On An Upward Trend

During the Black Thursday period the perpetual rate funding has been on the negative side but after the mid-march market crash, the perpetual funding rate has slowly gone back to positive. The perpetual funding rate has crept towards the positive side in the first week of May majorly due to the oncoming Bitcoin halving.

According to a hedge fund manager working with Blockchain Opportunity Fund explains that the current put-call ratio is increasing from mid-March and is approaching a three-month high. The analyst argues that the surging put-call ratio is a sign that Bitcoin is on a bullish trend due to the impending Bitcoin halving.

In the meantime, the majority of crypto worshippers are selling their altcoins to buy Bitcoin due to fear of missing out (FOMO) as the halving is imminent.

While the bitcoin price has dropped over $1,000 in value with the BTC/USD exchange rate since cracking $10,000 benchmark for the first time since mid-February, many wonder what is next for the crypto market?

Or is it just business as usual?

As always, one trader, investor, or avid follower should always do one thing when watching the price of bitcoin – buckle up the seat belts:

Latest Bitcoin Price News and Crypto Market Updates

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Author: Andrew Tuts

New Research: Bitcoin is the Best Performing Asset Class in 2020

With few days to go before Bitcoin halving, a new research conducted by Fundstrat indicates that Bitcoin currently the best performing asset class so far this year.

Thomas Lee from Fundstrat posted on Twitter the results of the research which shows that Bitcoin has so far this year outperformed all other asset classes by about 19% and Bitcoin has so far gained about 39% in value from the start of this year.

According to the research the 20-year US treasures come in second place having gained by 21.1% this year, gold was ranked third at 12.5%, while US treasuries come in at fourth 8.9% gain this year.

The research also revealed that world government bonds as well as Nasdaq surged by 1.8% as well as 1.7% respectively. The research also revealed that high-grade US credit as well as cash funds increased at 0.5%. However, the research also indicated that the rest of the asset classes are at the moment in the red.

The research also analyzed the performance of the best performing 13 asset classes in last year, where Bitcoin was also ranked the first with a gain of 92.2% over the last 12-month. Nasdaq came in second with a gain of 35.2%, S&P 500 came third with 28.9% while MSCI World Index was ranked fourth with a gain of 25.2%.

According to the research, Bitcoin was also the top performer among assets in 2017 gaining more than 1,550%.

Bitcoin has gained more than 30 percent since January making the king coin the fifth-strongest cryptocurrency among the top ten cryptos as per market capitalization.

However, Bitcoin SV (BSV) is the biggest gainer in 2020 among cryptocurrencies as it has increased by 115% as it has raised from $98 to $210.5. Tezos (XTZ) has also performed exemplary and is ranked second having gained by 107.5% rising from $1.35 to $2.80. Ether (ETH) and Stellar (XLM) are also ranked high as biggest gainers 61%.

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Author: Joseph Kibe

Bitcoin Halving Hype Could Give Way to Consolidation or Retracement, But what about Altcoins?

Just four days away from halving, we have some interesting next few weeks ahead of us.

The world’s leading digital asset is already enjoying an uptrend, currently trading above $9,800, breaking off its relation with equities after the correlation between them reached a peak during the past couple of months. This short pump is rolling off the news of $38.4 Billion hedge fund manager Paul Tudor Jones saying that he will invest a single percent into Bitcoin.

Trader Cantering Clark is expecting S&P 500 to “suffer a bit of altitude sickness up here from a demand standpoint,” as the thing starts going back to normal and approaches “Sell in May and go away” that means “most observed growth in equities occurring between November – April.”

Bitcoin halving on social media

In these last few days leading up to halving, bitcoin-related sentiments that were “sky-high” on most social media channels in the last week’s run-up to $9,000, the mood has cooled down, reports Santiment.

The trend is most visible on Telegram, which recorded a 3-month high only to decline dramatically since BTC’s move above $9k.

Other social channels are reflecting the same pattern. Major crypto subreddits that have been growing “increasingly confident” in Bitcoin since Black Thursday have made a complete 180 and now are firmly in the “ambivalent territory.”

Over the last month, Bitcoin-related sentiment recorded the largest spike on Twitter which is also seeing a steady decline in the bullish overtones since the $9,000 pump.

“The crowd appears deeply divided on the impact of the halvening, its size and direction,” reported Santiment. “At this point, I’d say the bears are just inching out the bulls. But the momentum definitely feels on the side of the bears.”

Now, the facts

The market is eagerly waiting for this third reward halving which the last two times led to bull rallies. As such, everyone is focused on this event that will cut down miners’ revenue into half while the bitcoin network remains strong as ever with all-time high hash rate and difficulty which is near its peak.

But that is to be expected as the analyst with pseudonym Rekt Capital points out, “Investors buy the hype weeks before every Halving.”

Further pointing out the bitcoin halving facts based on previous halvings, he noted that bitcoin retraced on the week of the last two halvings.

After the first halving in 2012, bitcoin consolidated for over a month before rallying, and following 2016 halving, bitcoin retraced and took weeks to recover before it rallied again.

What about altcoins?

Ahead of halving, Bitcoin’s market cap dominance continues to rise, climbing to 75.98%, as per Messari. This jump in BTC’s dominance means altcoins will “feel a lot of pain across the board.”

Already while bitcoin is enjoying a rally, having spiked to $9,800, altcoins are suffering.

Coin360-5-7

“BTC is rallying strongly with only a few days left until the Bitcoin Halving. Unsurprisingly, most of the attention is on BTC which is why capital is flowing away from Altcoins,” said the analyst Rekt Capital.

What this means is that “altcoins will have retraced to attractive prices ahead of their Q2 Hype Cycle.”

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Author: AnTy

Bitcoin Cash Miners’ in Loss as Breakeven Point Still the Same as Before Halving

While Bitcoin halving is still just over 20 days away, its fork Bitcoin Cash (BCH) already underwent its scheduled network halving last week.

A pre-set inflation adjustment, halving results in a 50% reduction in the new issuance supply of the tokens. Following BCH’s halving, both the hash rate and price of the asset declined substantially.

The week of its halving, BCH had the largest price decline among the large-cap cryptocurrencies, losing 9.5% of its value last week. In comparison, the top two digital assets, Bitcoin and Ethereum saw modest declines of 6% and 2% respectively during the same period.

At the time of writing, while BTC is trading at $7,180, down 2.23% YTD, BCH is trading at $239, up 4.40% YTD and its fork BSV is up 106% YTD $197, however, both BCH and BSV have much lower volume than BTC that makes it easy to manipulate.

It’s block production also got hit hard, with Jameson Lopp, co-founder, and CTO of Casa noting:

As for its hash rate, following the halving of BCH, the network hash rate declined considerably as miners reduced resources dedicated to its mining. Prior to the halving, the hash rate was hovering around 4,000 PH/s only to tumble down to 800 PH/s before rising to about 1,900 PH/s.

BCH mining profitability over time

After the halving, the mining rewards declined by half but while this block reward reaction increases the scarcity of the asset, it can also negatively impact the miners because of their revenue decline inline with reduced new supply.

While BCH price crashed after the March sell-off, down 95% from its all-time high, leading into the halving, the network hash rate remained near highs further affecting the profitability of miners negatively. TokenBlock noted,

“The network hash rate is closely related to miners’ profit margins. The hash rate increases as the number of resources, in aggregate, committed to securing the network through mining activities rises.

As resources dedicated to mining rise over time, efficiency gains and/or mining costs rise. As such, in order to maintain healthy profit margins for miners, a rising hash rate is typically needed to correspond with a rising asset price.”

However, the price of BCH has been under pressure over the past few weeks, as has been the broad crypto market and global financial markets because of COVID-19.

As per TradeBlock’s mining profitability estimates, had BCH miners not reduced their hash power drastically, they would have been operating at significantly negative profit margins following the halving.

Source: TradeBlock

But now that the network hash rate has declined considerably as miners either shut down or re-allocate their resources to other networks like bitcoin, mining breakeven is near similar levels seen last month, ~$200-250 per BCH.

With BCH price still below $200, Bitcoin Cash miners are now operating at a loss.

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Author: AnTy

Google Trends Reveals A Spike In Interest for Bitcoin Halving, Will A Bull Run Start Soon?

Bitcoin Halving is just around 35 days away and despite the ongoing coronavirus pandemic, it seems the interest towards halving hasn’t dipped. In fact, as per the recent Google metrics, the interest in Bitcoin halving is on the rise. While most of the traditional financial market has come to a standstill and governments around the globe are on a money printing spree due to the outbreak of coronavirus, despite these factors Bitcoin seems to stand its ground as a decentralized form of currency.

Bitcoin halving is considered as a highly bullish event given the supply-demand factor. After each halving the rate of new Bitcoin coming into the market get reduced by half. When Bitcoin was launched back in 2009, the block reward was 50 BTC per Block, and approximately after 4 years, this supply has been reduced from 50 to 25, then 25 to 12.5 and the next halving would bring it down to 6.25.

In the past Bitcoin has shown jumps in upwards of 1000% prior to the halving, but that was mainly because Bitcoin was highly volatile being a new asset class, however, the volatility has been significantly reduced in the following years and the next halving might not see that big of a jump. Irrespective of that, Bitcoin proponents are quite confident that the scarcity factor would kick in and BTC price might reach as high as $100,000 within 2 years of halving.

Google Trends Show Significant Rise In Interest Towards Bitcoin Halving

The next Bitcoin Halving is going to be the third event of its kind and probably the first with attention from people of all walks of life. The recent Google Metrics Data is the witness of the same as the trends suggest a significant peak in the searches of ‘Bitcoin Halving’ and ‘Halving’ in the past couple of months.

A data compiled by LongHash suggest that the interest levels for Bitcoin Halving have grown from 19 in April to 78 in the present time, and even reached 100 for a short period in the month of March.

Google measures the search volume for particular terms on the scale of 0-100. So, looking at the chart it’s quite clear that the interest in Bitcoin halving was at its highest in Mid-March which has dropped by almost 22% at the start of April. While the decline is significant it can be attributed to the growing tension due to COVID-19 which has infected over 1.5 million people across the globe and has killed over 10k people worldwide.

A majority of the search volume started to spike with the start of the new year which also saw Bitcoin gain some lost grounds and reach around $10,500 mark by mid-February. The traditional markets were already in the turmoil and COVID-19 outbreak led to a series of market crashes which also made many Crypto Institutional investors to panic sell, resulting in Bitcoin crashing to as low as $3,800 in March.

Other metrics suggested Americans being highly interested in Bitcoin Halving, as granular data for the U.S. suggests American citizens will be searching Bitcoin Halving Twice of what they did last week.

Price Predictions and Recent Halvings of Altcoins Haven’t Resulted in Bullish Run

Price predictions in the crypto space is an outright bad idea, as man self-proclaimed pundits have not just got it wrong but way off the mark. The primary example is 2018 bear market, where many of the likes of Charlie Lee and Tim Draper predicted 6-figure price rise after the massive bull run towards the end of December 2017 which saw Bitcoin attain its all-time-high price of near $20k. However, since that prie rise, Bitcoin has not able to go anywhere near that price even when many believed that 2018’s bear market will be followed by another bull run and effects of halving would kick-in by mid-2019 or early 2020.

PlanB, who has attained fame with his stock-to-flow charts predicting Bitcoin to reach over $100K by December 2022 believe the scarcity would be the biggest factor behind Bitcoin’s rise. However, looking at the current scenario and the price predictions in the past, that seems to be quite far-fetched.

Many altcoins such as Litecoin, and most recently Bitcoin Cash and Bitcoin SV has undergone halving, and none of them showed any signs of bullish price movement either prior to halving or in the aftermath, so it would be interesting to see if Bitcoin behaves the same or indeed sees the long-awaited Bull run.

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Author: James W

BitMEX Provides Clarity On The Insurance Fund After Traders liquidated Last Week

As the cryptocurrency market faced one of its worst days on Mar. 12 dubbed “Black Thursday” following Bitcoin‘s crash to $3,600 USD, BitMEX was put in the spotlight following a crash on its system. In a blogpost published on the website, the largest BTC Futures exchange explained what transpired on Mar. 12 and Mar. 13, to give traders a much needed clarity.

One of the key points that traders were curious about, is BitMEX’s insurance fund, which grew in value as the rest of the market collapsed.

BitMEX opens up on its BTC insurance fund

The statement starts by explaining the liquidation and bankruptcy levels and what processes take place during liquidation. The most important part of the blog is the explanation on what its insurance fund did once the world of crypto came crashing down.

At the time, the exchange was called out for “shutting down the exchange” for about an hour – BitMEX said it suffered double DDoS attacks – forcing out a number of traders in the process when the exchange came back online. Questions fielded in from most of the traders who wondered why the insurance was never activated during the crash.

The exchange wrote that the insurance fund is strictly levered to preventing auto deleveraging (ADL), which is explained as:

“ADL means the automatic deleveraging of the positions of profitable traders (ranked by profit and leverage in that contract) against liquidated positions to prevent bankruptcy.”

The post further states that the insurance fund is not be used to cover BitMEX running costs or contribute to BitMEX profits, and ‘it is not used to influence markets, intentionally or otherwise.”

Community rejects BitMEX explanation

While the explanation given by the exchange soothed a few hearts, a number of traders were left unconvinced. During the whole crash, the insurance fund hit an all-time high as other exchanges faces depletion on their funds. This prompted a number of questions from the community. One trader on Twitter wrote,

“Given that order book was well below mark price, liquidated long positions were well in the red, so it is strange that the insurance fund didn’t lose more.”

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Author: Lujan Odera

$8 Million Ether Sold for Free Through Maker

Black Thursday had been one of the worst days for the crypto community that recorded the violent sell-off across the market. But not only did the prices crash severely, for Ethereum it also resulted in Network congestion, a rise in fees, increased gas price, and liquidation issues with decentralized finance (DeFi) products.

As per cryptanalysis firm Glassnode’s latest insight report, this resulted in triggering unintended consequences for the MakerDAO ecosystem, so much so that it allowed some liquidators to buy a huge amount of DAI for $0.

Chaos Everywhere

On March 12, the price of Ether dropped 43% resulting in the on-chain volumes to spike dramatically as users scrambled to react to the falling prices in the broad market. Not just exchanges, but Ethereum dapps also recorded their highest ever daily activity, both of which overwhelmed the network, which wasn’t the first time.

The network congestion saw the mean gas price for the day surging 6x. Meanwhile, the increase in on-chain activity was,

“especially significant for DeFi apps, which were overwhelmed by the radical spike in demand.”

With gas prices so high, from 80 to 200 Gwei and transactions to be confirmed piling up, the pricing oracles of MakerDAO and Chainlink were unable to update their prices quickly enough to keep up with the rapidly decreasing price of Ether.

Maker’s Medianizer oracle showed a difference of $30, on the higher side, in price. Now, this gave some network participants time to pay off their Maker CDPs which otherwise would have been liquidated. These participants paid high gas fees and rescued their CDPs. And when the price was finally updated, many CDPs got liquidated suddenly en masse.

Amidst this chaos, those that had safeguards in place still got liquidated because safeguards relied on accurate and regular updates price data while some were liquidated notwithstanding if the collateral was purchased yet.

Exploiting the Situation

When Maker CDPs are liquidated, their collateral is auctioned off by the Maker to pay back the CDP owner’s debt with a 13% liquidation penalty. However, on that day, because gas prices were so high and the queue of transactions so long, bids that offered “regular” gas prices weren’t processed fast enough.

A liquidator, likely a bot, took advantage of the situation and won these auctions with a bid of zero DAI, which is buying bundles of 50 ETH for free, only for others to join and take advantage of the situation as well.

As per Glassnode, over $8 million in ETH was liquidated for zero DAI. This resulted in net loss for MakerDAO system, with at least $4.5 million worth of DAI left unbacked by any collateral. But Maker wasn’t the only one undercollateralized.

“Because CDPs are overcollateralized by default, these users should have received the total ETH value of their CDP minus their debt and the 13% liquidation penalty. However, because their ETH collateral was sold for zero DAI, they were left with nothing.”

The largest one has been of 35,000 Ether, equivalent to about $4 million.

After the exploit, MakerDao conducted a vote and decided on increasing the maximum lot size from 50 to 500 ETH and the duration of auctions was also raised.

The Maker Community is now considering printing and auctioning of new MKR tokens for the re-collateralization of DAI that will dilute existing MKR holders. They are also proposing a reduction of Dai Savings Rate (DSR) and the Global Stability Fee to bring DAI’s price close to 1 USD peg.

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Author: AnTy

Bitcoin Price (BTC) Eyeing Strong Comeback After A Massive Fall

Bitcoin price tumbled more than $5,000 in the past two days. BTC to USD is currently correcting higher from $3,865 and it is likely to continue higher towards the $6,000 and $6,200 levels.

Key Takeaways: BTC/USD

  • Bitcoin price fell significantly from well above $8,200 and it tested the $4,000 area against the US Dollar.
  • BTC/USD is recovering and trading near the $6,000 resistance plus a bearish trend line on the 2-hours chart (data feed from Bitstamp) to enter a bearish zone.
  • Ethereum is also recovering from well below $100.00 and it is now trading above $125.00.

Bitcoin Price Analysis

In the past few sessions, there were heavy swing moves in bitcoin price below the $8,000 and $6,000 support levels. BTC to USD broke multiple supports near the $5,000 and $4,800 levels to extend its decline.

Bitcoin Price Analysis

Looking at the 2-hours chart, bitcoin even traded below the $4,200 support level and settled below the 50 simple moving average (2-hours, purple). Finally, there was a break below the $4,000 handle and the price traded as low as $3,864.

It is currently correcting higher and trading above the $4,500 and $5,000 levels. The bulls were able to lead the price above the 23.6% Fib retracement level of the recent dive from $8,021 to $3,864.

It seems like bitcoin price is recovering and trading near the $6,000 resistance plus a bearish trend line on the same chart. The 50% Fib retracement level of the recent dive from $8,021 to $3,864 is also acting as a resistance near the $5,942 level.

If there is an upside break above the $5,940 and $6,000 resistance levels, the price could start a strong increase. The next resistance area is seen near the $6,260 and $6,433 levels.

The later one represents the 61.8% Fib retracement level of the recent dive from $8,021 to $3,864. Any further gains might call for a push towards the $7,600 resistance area.

Conversely, bitcoin price could fail to continue above the $5,940 and $6,000 resistance levels. In the mentioned case, there are chances of another decline towards the $5,000 level.

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Author: Aayush J