Bitcoin On The Way to $12,000 as US Dollar Moves Down

After ending the market on a high note last week, this new week is seeing another good start.

What started as a not so pleasant Monday with Bitcoin losing about $200 turned out to be a green one with the digital asset going for $11,550.

“Some technical overhead resistance right now and a CME gap below at 11.1k, pretty low risk in buying the dip if it comes,” says on-chain analyst Willy Woo.

The price now has resistance coming at $13,000-$14,000 with trader Josh Rager seeing $12k real soon.

“Price is back up in previous range prior to breakdown, and personally, I don’t see why we can’t see $12k this week,” said Rager.

Square’s $50 million Bitcoin investment caused the price increase to prevent institutional investors from placing long positions as of yet.

While asset manager accounts long positions on CME went up from 523 to 703, Leveraged funds and other reportable positions accounts didn’t show a direction adjustment indicating a conservative approach, as per CME’s latest report, as of Oct. 6.

Open interest also rebounded from 7,324 to 7,511, after a two week contraction period.

The Longest Run

The good thing for bitcoin is despite a slew of regulatory moves like the UK FCA banning the sale of crypto derivatives and the DOJ issuing a crypto enforcement framework, Bitcoin held to $10,000 strong.

As a matter of fact, it has now been a total of 90 days, so far in 2020 that bitcoin has been above $10k compared to 86 in 2019, 53 in 2018, and 34 in 2017.

According to Fundstrat Global Advisors LLC, regulatory clarity is good for crypto as it would clean up “bad actors.” “Despite select smaller pockets of risk,” they see it as a positive for the overall market, adding, “we believe the prevailing bull market trend is intact.”

But they do see DeFi “coming under pressure” for lack of KYC and AML protocols along with offshore quasi-equity exchange tokens and further risks with “crypto tokens exclusively listed on offshore exchanges where stricter U.S. investor prohibitions could limit liquidity and demand.”

Derisk Mode Still on

Unlike BTC, gold is seeing no such spike, trading at $1,924, the same as S&P 500 at just above 3,500. The US Dollar, however, has declined to 93, which is in strong negative correction to bitcoin.

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The general market remains in de-risking mode ahead of the US Presidential election on Nov. 3rd.

However, investors are growing more hopeful of additional economic stimulus as President Donald Trump said that he wants to see a bigger stimulus package than either Democrats or Republicans were offering.

While Trump made a reversal from earlier last week’s threat to halt negotiations, Senate Majority leader Mitch McConnell expressed doubt that Congress would pass a package before the election.

According to Goldman’s chief equity strategist David Kostin “new information on the election, vaccines, and upcoming 3Q earnings represent substantial cross-currents for equities during the next two months.”

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Author: AnTy

60% of Bitcoin Supply Not Moved in a Year, What Does it Say About the Next Bull Run?

May is coming to an end and bitcoin is looking to stay above $9,500, ending the month with about 8% returns.

The market sentiments are reacting and approaching “greed” once again. But this is the third time the sentiment is pushing to a greedy state and out of the fearful area. The good thing is we have stayed out of the “Extreme Fear” area for over a month now.

crypto-fear-greed
Source: Crypto Fear & Greed Index

However, there have been no significant changes in volatility over the past week but that can change quickly.

For the past two months, the last days of the month have recorded some of the large daily moves.

According to Income Shark, Bitcoin can yet again drop to $9,200 level with some “weird weekend action.” But it’s possible we will make our back to $9,600 level and if we break it, we could have a ride to $10,000 and if rejected, it might be the time to short.

Interestingly, there aren’t many bitcoins to be bought, especially given that Grayscale is absorbing more BTC than what’s been minted since halving. Already, its Bitcoin Trust holds about 2% of all BTC supply.

Meanwhile, the effects of halving have already started to dissipate with the hash rate increasing. The imminent Chinese monsoon would further balance things out as it would make electricity cheaper and “lead to a temporary increase in the rate of block generation and hence bitcoin production and sell pressure.”

Bitcoin velocity has also been dropping sharply since halving. The transaction activity might be seeing a temporary slow down but the “longer-term trend remains positive and is trending upwards,” noted Arcane Research.

An Exodus of BTC from Exchanges

We might not be in a bullish territory yet but the market is seeing bullish indicators. 60% of bitcoin supply hasn’t moved in more than a year, a level last seen before the bull run of 2017 started.

BTC-Supply
Source: Glassnode BTC-Supply

This increased level of hodling behavior can also be seen in the BTC balance on exchanges which have reached their lowest level in over a year, as per Glassnode.

One explanation of this exodus is the optimistic long-term sentiment that has investors withdrawing their funds from exchanges in favor of hodling in anticipation of a bull run. The growing number of bitcoin whales support this just as the continued holder accumulation over the past two months.

But this isn’t the whole story, this withdrawal trend is different for different exchanges.

Glassnode - BTC Balance on Exchanges
Source: Glassnode – BTC Balance on Exchanges

The steepest decline is recorded by Bitfinex of 66.6% that is 133,000 BTC since Black Thursday. After Bitfinex, the largest outflows are seen by BitMEX at 35.6% (105k BTC) and 24.6% (97k BTC) by Huobi.

In contrast to this, Binance and Bitstamp saw a slight increase in their BTC balance. Coinbase, however, remains the most popular exchange for holding BTC which has a balance of 968,000 BTC, decreasing only 0.2% during this time.

So it’s not just investors choosing to hold, or using cold storage for hodling, there could be many reasons at play.

Lack of trust could be one such reason in the case of BitMEX which experienced two DDoS attacks on Black Thursday. But this still doesn’t justify the continued decline of BTC balance on the exchange and why these funds haven’t moved onto other exchanges.

Moreover, even before the crash, the BTC balance of Huobi and Bitfinex has been on decline which only accelerated after Black Thursday. When the massive sell-off occurred, Bitfinex’s BTC balance had already dropped over 47% from its highest point in Dec. 2018.

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Author: AnTy

The Asset Class of the Decade With 9,000,000% Gains Is Still in Danger of A Crash to $5,500

  • Bitcoin is ending the year at gains just below 90% around $7,150
  • While the asset class of the decade was recording 9,000,000% gains, mainstream media has been writing an obituary for the digital asset
  • $1 million might be on the horizon as per Bitcoins but in the short term, $5,500 still a possibility until we break $8k

Bitcoin is officially closing the month around $7,150. We started the year at about $3,360 that took us to $13,900 at the end of June. But ever since, BTC continued its descent, falling to $6,200 in mid-December.

Now, we have capped the 2019 gains just below 90%.

Despite these gains, in comparison to the 2018 losses when we crashed 84% from the all-time high, this hasn’t been a spectacular year but it’s a start that looks better on a log scale.

Overall, with 9,000,000% gains, Bitcoin has been the best performing asset of the decade. While Bitcoin has been enjoying its parabolic rise, during that time, the mainstream media has been writing its obituary.

From being labeled “expired” by Wired when BTC was trading at $13 to Reuters writing an “early obituary” at $821 and “Fool’s gold”, Wrong”, “Ponzi,” “Joke,” “Ash heap”, “Disappointment”, and “Spells doom,” from news sites like Bloomberg, NYTimes, Business Insider, USA Today, and CNN, among others, Bitcoin has heard it all.

And while BTC has rising to be the best performing asset class of the decade, the S&P 500 just tripled in that period and gold has been up a mere 25%.

But now moving into 2020, Bitcoin would be in its next stage as David Tawil, president of ProChain Capital told Bloomberg,

“Certainly the numbers are what appeals to investors. The next 10 years need to be a totally different stage of growth based on totally different factors than the first stage.”

During its next decade, CoinList’s Andy Bromberg said,

“Bitcoin is finding its own narrative as digital gold. It feels like that narrative is picking up steam and it’s breaking away on its own. I would define success for most crypto assets as doing exactly that.”

As for the BTC price, Bitcoiners see it climbing to $1 million dollars.

In the short term meanwhile, trader Cold Blooded Shiller says on the basis of Bitcoin Wyckoff schematics, from a volume perspective BTC’s drop to $6,200 didn’t scream that it was the bottom. He is expecting to see $5,400 that would be the bottom of the flagship cryptocurrency.

TraderXO is of similar opinion who sees BTC going to $5,500.

“Apparently they say the lows are in after a few weeks of consolidation…Might want to zoom out a little, break the channel and reclaim 8k first,” he said.

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Author: AnTy

Bitcoin to Hit $400,000 BTC/USD Within the Next 10 Years if Pattern Continues

Bitcoin to Hit $400,000 BTC/USD Within the Next 10 Years if Pattern Continues
  • Bitcoin starts June at $8,500 and is currently at above $8,700 after a bit rocky ending of the “bullish” May month
  • BTC forms a technical pattern that occurred only 6 times in its history
  • Only three times ever the Top Goon X visited the lower red zone, last two times resulted in the surge of 5,000%

Despite experiencing instability in the past few days, Bitcoin is maintaining its bullish momentum as it starts June at $8,500 level. The last month tuned out to be the best month in a long time as it registered more than 60 percent gains.

Currently, the world’s top cryptocurrency is trading at $8,734 with 24 hours gains of 1.44 percent.

BTC/USD chart, Source: TradingView

Zooming out and looking at the price of Bitcoin in a one month period, we can see the leading cryptocurrency is in a firm uptrend despite seeing the recent bout of volatility that saw Bitcoin going from $5,300 to the highs of $9,000 only to see a drop of 12 percent.

This bullishness signals that a major uptrend is coming as crypto analyst, Josh Olszewicz took to Twitter to share how the recent technical pattern formed by Bitcoin has occurred only a handful of times.

He points out how 100 EMA/100 SMA crosses only happened 6 times in the entire history of Bitcoin which this time occurred on May 14th.

Bitcoin Trend Reversal and Continuation

According to the momentum based indicator Top Goon X indicator, if the pattern continues, Bitcoin could explode to $400,000 as shared in a recent tweet by cryptocurrency investor and stock trader NebraskanGooner.

While sharing the Bitcoin chart that depicts the parabolic rise of Bitcoin to $400,000 per BTC, crypto analyst NebraskanGooner shares how as shown by the black arrow, the trend reversed with the gains we saw in May month. By breaking above the lower red zone, we got the indication of a shift in the momentum.

This also shows the break in the trendline, shown by the red arrow, that leads to the market hitting the bottom both in 2015 and 2018. Last year, we saw BTC hitting the bottom at $3,150 from where it started surging in 2019. But the bull run got into effect when the surge in April started and further got driven by May’s monster rally.

NebraskanGooner points out how only three times ever the Top Goon X visited the lower red zone. The last two times it happened, Bitcoin gained about 5,000 percent in value once the minimum broke above the zone.

Though, in the short time, Bitcoin could see the drop, in 2021 as the green arrow shows, the uptrend will continue. The analyst further says we are still early in the uptrend and if Bitcoin sees another 5,000 percent rise, we would reach the level of per BTC to be worth $400,000.

Bitcoin’s price is $8,748.36 BTC/USD exchange rate today. The real-time BTC market cap of $155.17 Billion currently ranks #1 with a chart dominance at 56.02%, daily trading volume of $5 Billion and live coin value change of BTC 2.12 in the last 24 hours.

Live Bitcoin (BTC) Price:

1 BTC/USD =$8,748.3608 change ~ 2.12%

Coin Market Cap

$155.17 Billion

24 Hour Volume

$5 Billion

24 Hour VWAP

$8.69 K

24 Hour Change

$185.4545

“}” data-sheets-userformat=”{“2″:14849,”3”:{“1″:0},”12″:0,”14″:[null,2,0],”15″:”Open Sans”,”16″:11}”>Bitcoin’s price is $8,748.36 BTC/USD exchange rate today. The real-time BTC market cap of $155.17 Billion currently ranks #1 with a chart dominance at 56.02%, daily trading volume of $5 Billion and live coin value change of BTC 2.12 in the last 24 hours.

“}” data-sheets-userformat=”{“2″:513,”3”:{“1″:0},”12”:0}”>Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

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Author: AnTy