Why Does Bitcoin (BTC) Continue to Tear Up Without Ever Stopping?

It’s the magic of demand and supply.

2021 started above $28,500 and Bitcoin has already been up over 20%. Meanwhile, the traditional markets have yet to open.

On the day of its 12th birthday, January 3rd, Bitcoin first broke above $33k, went down to $30,500 only to smash through $34k, and missed $35k by a few hundred dollars.

On Bitcoin’s Birthday, these gains helped the pseudonymous creator Satoshi Nakamoto become the 40th richest person in the world, with $34 billion.

Bitcoin is now marching towards $50k.

But…

Demand > Supply

But why exactly does the Bitcoin price keep on going up and up and up?

The most simple answer is there are more buyers than sellers in the market currently.

As we have been seeing throughout 2020, the cryptocurrency exchange reserves have been declining. Bitcoin holders have been increasingly moving their BTC off the exchanges to keep them safe in hardware wallets as they don’t have any interest in selling them because they believe the price will go higher.

“BTC is leaving exchange wallets which imply less supply for buyers with insatiable demand. The price goes up,” states Joe McCann, a crypto enthusiast working at Microsoft.

These uptrends came despite the flagship cryptocurrency being in overbought territory, as per technical indicators. The underlying buying on spot exchanges and the long term buying for investment are strong with USDC flows to support this buying off the charts.

FOMO Buying

This buying can particularly be seen on institution-focused Coinbase Pro, whose outflows indicate institutions’ FOMO buying. Over 35k BTC worth more than $1 billion were moved out of the exchange early Saturday, just a day after 12,063 coins also left, as per data source CryptoQuant.

Retail isn’t much far behind.

According to economist and trader Alex Kruger, “Bitcoin is being driven by spot demand,” as can be seen in the flat funding and Bitmex perpetual – Coinbase spot basis being negative.

Any Pullbacks?

The digital asset is now also approaching the midpoint of its logarithmic adoption curve channel, and “if ever there were a moment to blast straight through magic resistance, it’s right now,” said analyst Cole Garner. Given BTC’s current momentum, it can blast through it as well.

“People started getting a little ridiculous today, as can happen with large price action. I’m very bullish but we’re not going to magically teleport to $100k in one day,” tweeted trader Resolute right before the call for $100k next week.

While many believe $20k isn’t coming back now, another trader Jonny Moe notes how the BTC weekly RSI has hit 93.2, higher than 90.2 seen at Dec. 2017 top. BTC weekly RSI higher than the current one was in November 2013 at 96.3.

With the current market looking like 2013 rather than 2017, the market sees potential for a big drop before continuing higher. In the meantime, today BTC price casually dropped 18% to $28,540 and is already near $31k.

The market has been calling for tops ever since Bitcoin broke the $20k, last year ATH. Although the market did see some small drops here and there, they were sharply reversed.

In the current market, it is anyone’s guess if a big correction will even be coming the market’s way.

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Author: AnTy

All Roads Lead To Bitcoin (BTC) Price Dropping Back Down

  • Analyst Magic is extremely bearish, predicting a 60% drop in April 2020

After the first week of trading sideways, Bitcoin has started slowly making its way downwards. From $7,500 on Dec. 9, today, we dropped to $7,072.

As Bitcoin turns red, altcoins follow the world’s leading cryptocurrency and register loses.

All Roads Lead to a Drop

Crypto trader Josh Rager is seeing all the roads leading us back down below weekly support at $6,902 because “HTF frames remain bearish trend and it’s looked weak in this range.”

Though BTC price could have a short term bounce, he is expecting another move down at least one more time. The time, according to him is to “accumulate.”

However, analyst Magic Poop Cannon who has been bearish on the flagship cryptocurrency is predicting a 60% drop in price. According to him, a new low will be coming at $3,000 level.

The call for a severe drop might not be seeing much mentions in the market as many like analyst Willy Woo and data analytics platform Glassnode are saying Bitcoin is close, but some like Magic and even veteran trader Peter Brandt has been calling for more pain ahead.

However, while Brandt has been projecting $5,400 as the bottom in June next year, Magic is predicting a 60% fall in April 2020. Majic said,

“Over the next six months or more, I think BTC (and the rest of crypto) is going to destroy a lot of hodlers. BTC looks very bearish, and I’m not only talking about short term price action. It looks long-term bearish.”

A warning call has also been made by trader CL who notes that the time-weighted average price of 2019 is at $7,100-7,200s.

And if we are in a bull market, bitcoin should not be below this level for “for a prolonged period.”

Meanwhile…

Crypto exchange OKEx also states in its blog update,

“Candlestick patterns and technical indicators have suggested that BTC volatility could increase in the short-term, with a bias slightly towards the downside.”

Retail Investors are on the Sidelines

With the majority of the crypto twitter turning bearish, it won’t be surprising if Bitcoin decides to make a move in another direction. Moreover, with volumes extremely low, a big transaction has the ability to move the market as well.

Matt D’Souza, Co-founder of Blockchain Opportunity Fund meanwhile shares a bullish picture saying, “We believe we are in the first 1/3 of a bull market.”

He points out how CME volume outpaced Coinbase and Bitfinex in Q1-Q3 of 2019 which indicates crypto was led by institutional money, signaling a market cycle turning point.

Institutions meanwhile won’t invest in ICOs that are surrounded by regulatory uncertainty and have liquidity issues. As such, now that altcoins are experiencing zero to negative returns, it means retail investors are on the sidelines.

“Once the last retail is in there are no more buyers left. All buying is exhausted and we experience a top. We are presently in the opposite environment where the institutions are accumulating, while the retail shows zero interest.”

No matter the next move Bitcoin will make, the best step, for a HODLer at east, is to accumulate – stack those sats.

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Author: AnTy

XRP’s Next Move Going to be “Explosive,” says Analyst as Ripple Looks to Break Out in 2019

XRP’s Next Move Going to be “Explosive,” says Analyst as Ripple Looks to Break Out in 2019
  • Q2 was packed with good news but lost its market dominance
  • Analyst Magic Poop Cannon: XRP has a real path to over $100

Ripple’s digital currency XRP didn’t have a good start of the year and is still down by 9.74% YTD.

XRP opened January 1st at $0.35 but dropped down to $0.28 at the end of the month. But then it saw a brief rally in mid-February, only to close the quarter trading around $0.30.

Q2 Was Packed With Good News but Lost its Market Dominance

In Q2, XRP got off to a great start just like other cryptocurrencies such as Bitcoin and Ethereum, going to $0.345 in the first few days of April. After having its share of ups and downs, XRP closed Q2 up 29% from where it opened, trading at $0,399 on the last day of trading of the quarter.

During this quarter, Ripple sold $251.51 million XRP, out of which $106.87 million XRP was in institutional direct sales. In Q2 2019, XRP lost about half of its market dominance despite being packed with announcements of partnerships and usage.

We witnessed Spanish bank Santander expanding its Ripple-powered international payments tool One Pay FX to non-customers, Ripple’s global expansion — opening offices in South America in Brazil and Switzerland, and partnership with MoneyGram.

Analyst: XRP has a real path to over $100

In Q3, we already heard of MoneyGram going live on xRapid platform that uses XRP.

Built for enterprise use, XRP offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments.

An uptrend seems to be on XRP’s way as trader Credible Crypto points how the digital currency has retarced its move from the prior bull run, seen before with BTC prior to its 125x upside.

According to analyst, Magic Poop Cannon, price-wise “there is a real path to XRP prices well over $100, and even $200.” We just need to watch for a confirmation of support on the bottom of the channel, later this year, he said.

Once, it sees a big bounce there, it will be game over as the third largest cryptocurrency by market cap will “blast into another dimension.”

Magic, who is extremely bullish on XRP says even more important than price is that fact that it is the only cryptocurrency that is working with banks and regulators.

Currently, XRP/USD is trading at $0.317 with 24 hours gains of 0.86 percent. Magic says, it is “really coiling up right now,” and whichever way XRP breaks, it is going to be “very explosive.”

XRP price has a major multi month rising support at the red line and a break out to the upside, according to him, could send it “rapidly” to $0.50.

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Author: AnTy