Posted on

TA: Bitcoin Holds Strong, Why BTC Could Soon Rally To $60K

Bitcoin price extended its rise above the $58,000 resistance against the US Dollar. BTC is now correcting gains, with but it is likely to remain well bid near $56,750 and $56,500.

  • Bitcoin gained pace above the $57,500 and $58,000 resistance levels before correcting lower.
  • The price is now well above the $55,000 support and the 100 hourly simple moving average.
  • There is a key bullish flag pattern forming with resistance near $57,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to find a strong buying interest near the $56,500 support zone in the near term.

Bitcoin Price Eyes More Upsides

After surpassing the $57,000 resistance, bitcoin extended its rise. BTC broke the $58,000 resistance level and settled nicely above the 100 hourly simple moving average.

It even surged towards the $58,500 level and traded to a new weekly high at $58,615. It is now correcting lower and trading below the $58,000 level. There was also a break below the 23.6% Fib retracement level of the upward wave from the $54,950 swing low to $58,615 high.

It seems like there is a key bullish flag pattern forming with resistance near $57,700 on the hourly chart of the BTC/USD pair. The channel support is near the $56,800 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

The 50% Fib retracement level of the upward wave from the $54,950 swing low to $58,615 high is also close to the channel support. On the upside, a clear break above the flag resistance near $57,700 could open the doors for a fresh increase.

The next key resistance is near the $58,500 level. A convincing break above the $58,500 resistance is likely to set the pace for a move towards the $60,000 level.

Downward Move in BTC?

If bitcoin fails to climb above $57,700 and $58,000, there could be a downside correction. As stated, the $56,500 level is a decent support zone.

The next major support is near the $56,000 level and a connecting bullish trend line. Any more losses might call for a drop towards the $55,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is approaching the 50 level.

Major Support Levels – $56,500, followed by $56,000.

Major Resistance Levels – $57,700, $58,500 and $60,000.

Posted on

Heads Up: Bearish Bitcoin Technical Pattern Shouldn’t Be Shrugged Off

Bitcoin price is struggling to get back above $60,000 currently, but bears thus far have been unable to swat price action away from local highs. The push and pull between the two opposing market forces have resulted in a bearish price pattern potentially forming, that anyone paying attention to cryptocurrency might want a heads up about.

If bulls ultimately shrug off the recent attempt to take over by bears, new highs are ahead. However, if this technical pattern confirms, the first significant correction could be coming sooner than later in crypto.

Bitcoin Price Peaks Could Be Forming Head And Shoulders Reversal Pattern

Bitcoin price action in 2021 thus far has been like a rocket ship without any atmosphere to penetrate, soaring without any formidable resistance. It is only recently after reaching above the current highs over $60,000 that the cryptocurrency has struggled to continue toward new highs with ease.

The most recent resistance level has led to weeks of consolidation, switching from bearish to bullish and back on shorter timeframes, while the underlying trend has remained “only up.”

Related Reading | How Bitcoin Price Could Shed 50 To 70% If Momentum Turns Down

The natural tug of war between buyers and sellers have left a zig-zagging pattern on the price chart that – if things turn down from here – could soon form a head and shoulders reversal pattern.

The pattern is only a little more than two-thirds of the way through, currently near what should be the inflection point of the pattern.

bitcoin daily head and shoulders

A head and shoulders could take bulls by surprise, before moving higher again | Source: BTCUSD on TradingView.com

The Ongoing Showdown Between Bullish BTC Fundamentals And Bearish Technicals

The battle between buyers and sellers of Bitcoin is currently at an impasse, and when either side eventually waves the white flag, there could be a long streak of green or red to follow.

If the pattern is invalidated with a rise to a new all-time high, the cryptocurrency’s bull run is back on full steam, and could see prices a lot closer to $100,000 per coin within the next month or two.

If price action cannot sustain and push higher, the pattern will confirm, any long positions built in the area will be forced to cover, and much larger move down could result.

Technically, based on the measure rule, a return to around $40,000 per coin would be the target of the bearish structure, but would be far from putting the greater bull trend in jeopardy.

Related Reading | Bitcoin Technicals Overheated, But Bullish Fundamentals Remain Unfazed

A correction, very well could even be healthy, even if price action goes deeper than most would expect. Technical indicators are overheated, and market sentiment could use a reality check.

Regardless of these factors, however, fundamentally, the bull run isn’t going anywhere anytime soon. Despite indicators so hot and bothered, fundamentals have barely flinched in the face of the ongoing consolidation slash correction.

What few coins are left on exchange are leaving at a rate of tens of thousands per week, and most adoption metrics haven’t reached previous signs that might indicate a peak is in.

All of these factors conclude that Bitcoin could see an overdue correction, but any dips would continue to be bought up by institutions.

Featured image from Pixabay, Charts from TradingView.com
Posted on

Former SEC Head Jay Clayton joins One River’s crypto Council

In a press release, One River Digital Asset Management, and its partner One River Asset Management announced the addition of Jay Clayton to its Academic and Regulatory Advisory Council. Clayton is a former chairman of the U.S. Securities and Exchange Commission (SEC) and is considered a detractor of cryptocurrencies.

At least in practice and under his administration (2017-2020), all requests made to approve a Bitcoin-based Exchange Traded Fund were denied on several occasions. Clayton will begin his duties immediately alongside Jon Orszag and Kevin Hasset.

Helping to shape a new industry?

Clayton’s last decision as head of the SEC was to introduce a lawsuit against Ripple Labs, Brad Garlinghouse, and others for allegedly illegally selling a security, the XRP token. For the time being, the parties have been unable to settle and are in the early stages of the legal process. The former SEC chairman stated the following about joining the firm in a joint statement:

We were impressed by Eric’s willingness to hear our varying views on the digitization of our monetary, banking and capital markets ecosystem and One River’s commitment to transparency. We look forward to working with One River as the effects of digitization on our markets play out across the globe

River Asset Management founder, CEO, and CIO Eric Peters had this to say about Clayton and the new additions to the firm’s team:

We are excited to have brought together such a distinguished group with deep and varying regulatory and policy experience and will continue to broaden the council to include thought leaders with diverse backgrounds and expertise.

Peters added that the council formed by Clayton is an entity created to examine crypto investment opportunities and how they can coexist with current policies. Despite Clayton’s track record, Peters believes that his involvement will help them to

think through how to advance these frameworks in ways that ensure the US continues to lead the world in financial innovation and asset management.

Bitcoin is trading at $57,494 with 4.5% gains on the 1-hour chart, presenting sideways movement on the 7-day chart.

BTC with minors gains in the 24-hour chart. Source: BTCUSD Tradingview
Posted on

This is why all companies should buy Bitcoin, says Square’s CFO

In an interview for Fortune, Square CFO Amrita Ahuja made the corporate case for Bitcoin adoption. In Michael Saylor, CEO of Microstrategy, style Ahuja asserted that the cryptocurrency is part of an evolution of financial services globally.

Square, led by Jack Dorsey, and the Saylor-led company were among the first publicly traded companies in the U.S. to add BTC to their treasuries. Their adoption thesis, to protect the value of their companies in the midst of an inflationary macroeconomic environment. Ahuja told Fortune:

There’s absolutely a case for every balance sheet to have Bitcoin on it. The investment that we made on our balance sheet for Bitcoin represents about 5% of our cash; we intend to hold for the long term.

The executive stated that the company’s long-term plan is to maintain its investment in Bitcoin, following the strategy proposed by MicroStrategy and Tesla CEO Elon Musk. Recently, this company revealed the details for accepting BTC to purchase its products and, via Twitter, Musk stated that they would keep the funds in BTC.

Purchases of BTC by Square, MicroStrategy, Tesla, and others set off a domino effect that has propelled institutional participation to unprecedented levels. In Canada, 3 financial products were approved to give investors BTC exposure and, as analyst Lex Moskovski shows, their performance has exceeded any expectations.

Bitcoin usage in Cash App accelerates

The Covid-19 pandemic has accelerated the adoption of digital payment methods and cryptocurrencies. In support of this claim, Square’s CFO said that in January of this year alone 1 million new consumers used Cash App to buy Bitcoin. In 2020, at least 3 million people used Square’s product to trade with the cryptocurrency.

The executive revealed that in support of Bitcoin adoption, they have eliminated transaction fees within Cash App for users of the cryptocurrency. In parallel, the company will continue to hand out grants to Bitcoin developers to support the growth of the ecosystem and its protocol.

Via Twitter, Square’s Crypto department announced that its scholarship recipients will be able to choose how they want to receive their funds. Scholarship recipients will be able to choose between BTC or fiat currency.

Bitcoin is trading at $57,675 with gains of 4.9% in the last 24 hours. In the last week, the cryptocurrency has moved sideways (0.2%) but holds its gains at 23.9% for the last month.

BTC with moderate gains in the 24-hour chart. Source: BTCUSD Tradingview
Posted on

TA: Bitcoin Corrects Gains, Why BTC Remains Attractive Near $54K

Bitcoin price started a steady increase and tested the $56,500 zone against the US Dollar. BTC is now correcting gains, with many supports near $54,000.

  • Bitcoin traded as high as $56,694 before starting a downside correction.
  • The price is still above the $54,000 support and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $55,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to find a strong buying interest near the $54,000 support zone in the near term.

Bitcoin Price Remains Supported

After a clear break above the $53,200 resistance, bitcoin extended its rise. BTC broke the $55,000 resistance level and settled nicely above the 100 hourly simple moving average.

It even spiked above $56,500 and traded as high as $56,694. It is now correcting lower and trading below the $56,000 level. There was a break below the 23.6% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.

There was also a break below a key bullish trend line with support near $55,500 on the hourly chart of the BTC/USD pair. The pair is now consolidating near the $55,000 level.

Bitcoin Price

Source: BTCUSD on TradingView.com

An initial support on the downside is near the $54,500 level. The first major support is near the $54,000 zone and the 100 hourly simple moving average. The next major support is near the $53,500 level. It is close to the 50% Fib retracement level of the upward move from the $50,400 swing low to $56,694 high.

A downside break below the $53,500 and $53,200 support levels could negate the current bullish bias. In the stated case, the price is likely to revisit $50,500.

Fresh Increase in BTC?

If bitcoin stays above the $54,000 support zone and the 100 hourly SMA, there are chances of a fresh increase. An initial resistance on the upside is near the $56,200 zone.

The first major resistance is near the $56,500 level. The main resistance is still near $57,000 and $57,200, above which the price is likely to rally further.

Technical indicators:

Hourly MACD – The MACD is slowly losing momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just below the 50 level.

Major Support Levels – $54,500, followed by $54,000.

Major Resistance Levels – $56,000, $56,500 and $57,200.

Posted on

BNY Mellon values Bitcoin on par with gold, what’s their price target?

In February, one of the oldest financial institutions in the United States, Bank of New York Mellon, announced the launch of a custody service for Bitcoin and other cryptocurrencies. Claiming that BTC has become a widely accepted asset, the institution opted to get ahead in innovation.

Now, BNY Mellon has published a valuation on Bitcoin comparing the characteristics of gold to the cryptocurrency in an attempt to give tools to determine its value. The BNY Mellon analysts recognize the unique properties of BTC and how difficult it can be to calculate its value when using metrics applied to national currencies. The analysts claimed:

it should be considered as part of the valuation mosaic. At the beginning of May 2020, a single Bitcoin was worth roughly $8,8001 and the total market value of all Bitcoin was worth $160 billion2, accounting for 0.4% of total global currencies. At current rates, if Bitcoin replaced 5% of the world’s currency it would yield over $100,000/Bitcoin.

When comparing Bitcoin’s and gold valuation, BNY Mellon analysts referred to the Stock-to-Flow (S2F and S2FX) model created by Plan B. While acknowledging this model has flaws, they also referred to it as “elegant” with a “much more established gold market framework”. The analysts added:

The implication from this model is that as Bitcoin gains more mainstream momentum and is viewed more like gold, the scarcity value (as measured by S2F) and subsequent halving will ultimately drive prices to the gold dot cluster and implied total market value

However, the report claims valuation is “more art than science” and therefore emphasizes that all models have to reach Bitcoin’s “fair” price will be a “constantly” evolving work.

Bitcoin’s price in the short and long term

Bitcoin is trading at $54,420, at the time of writing, retaking this important support zone. In the 24-hour chart, BTC is moving sideways but still is on a bullish trend in the 30-day chart with 17.8% gains. In recent weeks, Bitcoin’s price action was determined by large investors.

Bitcoin BTC
Bitcoin with losses in the 24-hour chart. Source: BTCUSD Tradingview

As indicated by analyst Lex Moskovski, the number of Bitcoin whales holding around 1,000 BTC has dropped to the trend line after peaking on February 21 when a massive sell-off began. Moskovski stated:

However, the price has risen since the start of the dump. This is bullish and also benefits decentralization. Text-book consolidation.

Co-founders of research firm Glassnode, Yan Allemann, and Jan Happel, noted that the cryptocurrency’s near-term performance will be correlated with the level of retail investor spending. BTC’s price could rise if a portion of the recipients of the stimulus package approved by Biden decides to invest in the cryptocurrency.

In the long term, Bitcoin’s supply shock will play an important role as crypto exchanges continue to register high levels of BTC outflow. This supply is turning illiquid, as analyst William Clemente noted. Predicting a rise in BTC’s price for Q3-Q4 this year, Clemente said:

the increase of negative-yielding bonds will leave fixed-income investors desperately searching for yield. With everything being manipulated in the fiat world, all roads lead to the free and open Bitcoin market.

 

Posted on

Why Bitcoin Price Could Rally If It Settles Above $57K

Bitcoin price is recovering nicely above $55,000 against the US Dollar. BTC is likely to start a strong increase if there is a daily close above the $57,000 resistance.

  • Bitcoin started a fresh increase above the $55,000 and $55,500 resistance levels.
  • The price is now well above $55,000 and the 100 simple moving average (4-hours).
  • There was a break above a major bearish trend line with resistance near $55,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could rally towards the $60,000 level if there is a close above the $57,000 resistance zone.

Bitcoin Price is Showing Positive Signs

This past week, bitcoin price testes the $50,500 support zone and started a fresh increase against the US Dollar. The BTC/USD pair formed a support base above $52,000 and recently started a fresh increase.

The price broke the $53,000 and $53,500 resistance levels to move into a positive zone. It opened the doors for a break above the $55,000 resistance zone. There was a break above the 50% Fib retracement level of the downward move from the $57,235 swing high to $50,400 swing low.

Bitcoin Price

Source: BTCUSD on TradingView.com

Moreover, there was a break above a major bearish trend line with resistance near $55,000 on the 4-hours chart of the BTC/USD pair. The pair is now trading above the 76.4% Fib retracement level of the downward move from the $57,235 swing high to $50,400 swing low.

An immediate resistance is near the $57,000 level and the 100 simple moving average (4-hours). A successful break and close above the $57,000 resistance zone could open the doors for a move towards the $60,000 resistance zone in the coming sessions.

Fresh Decline in BTC?

If bitcoin fails to settle above the $57,000 resistance or the 100 simple moving average (4-hours), there is a risk of a fresh decline. An initial support on the downside is near the $55,500 level.

The first key support is near the broken trend line and $55,000. A clear break below the $55,000 support might open the doors for another decline. In the stated case, the price could decline towards the $53,200 level or even $53,000.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now moving nicely above the 50 level.

Major Support Level – $55,500

Major Resistance Level – $57,000

Posted on

Why former OCC head Brooks thinks Bitcoin is stronger than U.S. dollar

In an interview on CNBC’s Squawk Box, former head of the Office of the Comptroller of the Currency, Brian Brooks, spoke about the regulatory hurdles for Bitcoin. Referring to a recent speech given by the chairman of the U.S. Federal Reserve, Brooks stated that people have “migrated to Bitcoin” because of the risk of inflation in the U.S. dollar.

Fed Chairman Jerome Powell gave a speech at the Bank of International Settlements Innovation Summit, claiming Bitcoin could be a substitute for gold. However, Powell’s statements were contradictory, asserting that the precious metal is not a store of value, like the U.S. dollar.

The former OCC chief claimed that the Fed has increased the money supply by 40%, therefore, that country’s currency has become “at least 40% less good as a store of value.” Brooks then highlighted the difference and possible fundamental weakness in the dollar:

The dollar may not actually be backed by anything … cryptocurrencies actually are backed by something. They’re backed by underlying networks and what you are buying when you buy a crypto tokens, whether is Bitcoin or anything else, is you are buying a piece of a financial network build to transact all kinds of stuff.

Over the past two years, the market and technology behind cryptocurrencies have matured. Brooks believes this explains the rise in the market capitalization of this sector to nearly $2 trillion. The former OCC chief added:

I think there are forces of the future at work and forces of the status quo. I think the crowds are telling you that this networks are where finances are going in the future…

Americans will push for Bitcoin’s adoption

For Brooks, Bitcoin’s value also lies in having demonstrated that its use case could be met without financial institutions. Therefore, the adoption of the cryptocurrency goes beyond speculation, Brooks added:

Bitcoin was the first token to show you that finance could be done on a networked basis as opposed to at the bank … there was $61B worth of bitcoin transacted yesterday is because that network has been adopted by people who used to go to the bank.

Innovation in the crypto market has faced opposition from regulators such as the SEC and the Fed. Brooks believes that even if U.S. authorities try to stop Bitcoin, U.S. citizens will exert enough pressure for it to gain regulatory approval. Comparing Bitcoin and cryptocurrencies to the on-demand transportation service Uber, Brooks said:

You can absolutely fight City Hall. Remember, every mayor and every taxicab commissioner tried to stop Uber. But 50 million Americans wanted it and now we have it. It’s going to be the same thing with crypto.

At the time of writing, Bitcoin trades at $56,012 with 4.7% gains in the 24-hour chart. In the last week, Bitcoin has retraced (-3.5%) to the low ranges of $50,000 but seems to have regained important bullish momentum.

Bitcoin BTC
BTC with moderates gains in the 24-hour chart. Source: BTCUSD Tradingview
Posted on

Pizza Day 2.0: Buying A Tesla With Bitcoin Could Be A Mistake

Bitcoin price has seen some serious volatility ever since Elon Musk revealed on Twitter that his company Tesla would begin accepting Bitcoin as a form of payment.

Almost immediately, the social media platform was filled with screenshots of those filling orders, but these eager buyers ready to exchange their coins could end up living with enormous regret. Here’s how two delicious pizzas fit into that puzzle, and why even something more valuable like a Tesla could still be a bad purchase in the end.

How Spending BTC On A Tesla Could Be An Enormous Mistake

This week, Tesla and SpaceX CEO and Founder Elon Musk revealed the green car auto maker had enabled the company’s website to accept Bitcoin as a form of payment for the vehicles offered.

Related Reading | Crypto Analyst Claims MicroStrategy Is “On The Ropes” Amidst Bitcoin Selloff

The internet was set abuzz with the news, and the price per coin soared initially. A rejection at resistance shook up the market for a brief stint – ahead of this week’s historic options expiration.

But as crypto bull Max Keiser points out, ten years from now, people will be shocked that someone was foolish enough to have spent a whole Bitcoin on a Tesla.

The comment isn’t meant as an insult to anyone taking the plunge and buying a Tesla with their coins, but is a reality that hindsight might end up making the purchase a regrettable one. Returning a Tesla is also a catch-22 for those paying in BTC.

The One Time Eating Pizza Was Regrettable, But Without It Bitcoin Might Not Be

On May 22, 2010, Laszlo Hanyecz announced via the BitcoinTalk forum that he had successfully purchased two pizzas in exchange for a total of 10,000 BTC.

At the time, the coins were worthless by all standards, not even yet trading for a penny each. In his mind, he was getting a great deal and making history by completing the first ever documented transaction for goods involving Bitcoin.

bitcoin lazlo pizza

Laszlo Hanyeczcspent 10,000 BTC on pizza, now worth around half a billion USD | Source: BTCUSD on TradingView.com

Today, those 10,000 BTC are worth half a billion dollars, making those two pizzas the most regrettable pizzas of all-time. Even someone who got food borne illness from a pie, would have less lasting impact than wondering what could have been.

A Tesla now costs nearly a full coin – which is a heck of a lot more valuable than two pizzas. However, given how fast cars depreciate the moment they’re driven off the lot, and how far Bitcoin could ultimately climb in years to come, could make buying a Tesla with BTC just as regrettable as Laszlo’s transaction in 2010.

Related Reading | Get BTC Back For Spending Instead With Bitcoin Reward Program Lolli

In ten years’ time, people could be appalled by the idea of spending a full coin on a car. The major difference between these people and Laszlo, is that he’s a pioneer that will forever by synonymous with the history of the cryptocurrency, potentially being a primary factor in its development into what it has become today.

Who knows, without his proof-of-concept purchase of two pizzas, the technology might have failed to gain mainstream adoption. And while buying a Tesla is cool and all, there’s nothing more recognizable than a delicious pizza pie.

Featured image from Deposit Photos, Charts from TradingView.com
Posted on

Why is Bloomberg predicting a Bitcoin price at 400K in 2021?

Bitcoin has picked up its bullish momentum in the last 24 hours. High levels of Institutional adoption, fundamentals, and on-chain indicators look bullish and point to an extension of the rally, at least, in the long term.

In a recent report, Senior Commodity Strategist for Bloomberg Intelligence, Mike McGlone, states that Bitcoin is in a “transition phase.” As a result, the benchmark cryptocurrency could move from being a “risk asset” to become a global reserve asset.

Comparing the “rhythm” of Bitcoin’s 2017 bull market to the current one, McGlone estimates that Bitcoin’s price could peak at about $400,000 by the end of the year. In the chart below, he notes a correlation between surges in the cryptocurrency’s price and a rise in its Liquidity Index.

Bitcoin BTC
Source: Bloomberg Intelligence

In late 2020 and early 2021, it can be seen how the latter metric has seen two significant growths. Recent Bitcoin price action and the approval of several Exchange Traded Fund (ETF) in Canada have had an impact on Grayscale Bitcoin Trust (GBTC). This product has been one of the most favored for institutional adoption.

However, its premium has trended lower in recent days. On the relationship between BTC’s price and the drop in GBTC’s premium, McGlone concludes:

Bullish underpinnings for GBTC are gaining legs, as it outpaced Tesla by almost 50% this year. The increasing probability for Bitcoin ETFs in the U.S. is supporting the price…but contributing to the GBTC discount.

Where is Bitcoin price heading in the short term?

In the short term, the sideways trend Bitcoin price has seen recently could change and shift in the bulls’ favor. A “massive” amount of GBTC shares will be “unlocked” in the immediate future. The benchmark cryptocurrency could benefit, as analyst Ben Lily stated:

Which is creating a lot of uncertainty to its future. What I’d like to remind readers is each time a wave of large unlockings hit, not only does bitcoin’s spot price rise, but the share price of the Trust gains in value with respect to its underlying holdings (NAV). If we ignore the fact it’s at a discount then the likelihood of this measure to rise based on history is batting one-thousand-perfect.

Bitcoin’s Stock to Flow model creator, Plan B, has published estimates that coincide with Bloomberg’s analyst’s forecasts. In his latest chart based on the referenced controversial model, Bitcoin’s price could approach $500,000 by the end of 2021.

Bitcoin is trading at $53,657 with gains of 3.4% on the last day. Although the monthly chart shows gains of 10.1%, the weekly chart is in the red with losses of 7.5%. The market capitalization stands at $1.01 trillion.

Bitcoin BTC
BTC picking bullish momentum in the 24-hour chart. Source: BTCUSD Tradingview
Posted on

Massive Coinbase Outflows Suggest Bitcoin Price Is Ready To Bounce

Bitcoin price is reeling from a strong rejection from above $60,000 that has sent the leading cryptocurrency by market cap tumbling back down by more than $10,000 per coin. However, massive ongoing outflows of BTC continue to leave popular cryptocurrency exchange Coinbase Pro at an alarming rate.

The overall lack of BTC supply that only shrinks further by the day, will once again be dominated by demand, potentially causing the previously trending cryptocurrency to bounce. Could that bounce develop into a resumption of the historic uptrend? Here’s what fundamentals are saying about further continuation or correction for Bitcoin price ahead.

Coinbase BTC Outflows Continue, What Corporations Are Potentially Buying The Dip?

Bitcoin price is down more than $10,000 from its current all-time high, yet still more than double the previous peak set back in 2017.

The leading cryptocurrency has now spent more than 100 days above the former high, and likely will never return to levels near or below it.

Related Reading | Stablecoin Supply Rising, Diminishing Bitcoin Reserves Ready To Fuel Next Leg Up

In fact, Bitcoin price action might not deviate much lower than current levels, thanks to massive Coinbase Pro outflows.

Thousands of BTC leaving the popular cryptocurrency exchange catering to institutional investors has been called the most bullish signal “ever” and that was hundreds of thousands of BTC ago.

Technical factors are overheated in the cryptocurrency after such a sizable price increase, but soon, fundamentals could take over leading to a strong bounce.

Bitcoin Price To Bounce As Supply Shock Expected To Overpower Bearish Technicals

Thus far, the presence of institutions and corporations with deep wallets and cash reserves with dwindling buying power has left very little room for corrections.

Dips are being bought up long before retracements reach to past bull market totals, but that doesn’t mean momentum can’t finally turn down for even a brief time.

bitcoin coinbase corproations

Institutions and corporations buying each dip is preventing any serious corrections | Source: BTCUSD on TradingView.com

But eventually, regardless of any technical factors, no BTC left to buy could cause a supply shock that drives prices to hundreds of thousands of dollars per coin before demand begins to wane again, and available supply returns to exchanges for investors to take profit.

Related Reading | Coinbase Bitcoin Outflows Are The Strongest Bullish Signal “Ever”

At that point, the top will be in. For now, the ongoing massive outflows suggest the top is nowhere near in sight, and that bigger players are currently buying the blood in the streets.

The line in the sand drawn between bears and bulls moving higher lies at $60,000. Another move beyond that level could be an all-clear sign that the rally is ready to continue higher.

Featured image from Deposit Photos, Charts from TradingView.com
Posted on

TA: Bitcoin Steadies Above $50K, Why BTC Could Recover To $55K

Bitcoin price extended its decline and traded close to $50,000 against the US Dollar. BTC is now consolidating losses and it is likely to start a recovery towards $55,000.

  • Bitcoin extended its decline below $52,500 and $51,200 support levels.
  • The price is now trading well below $55,000 and the 100 hourly simple moving average.
  • There is a key contracting triangle forming with resistance near $52,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to correct higher towards $54,500 or even $55,000 if it clears $53,150.

Bitcoin Price Extends Losses

After a break below $53,000, bitcoin extended its decline. BTC broke the $52,500 and $51,200 support levels to move further into a bearish zone.

The bears even aimed a test of $50,000. However, the price remained stable above $50,500. A low is formed near $50,400 and the price is now consolidating losses. It is trading well below $55,000 and the 100 hourly simple moving average.

Recently, there was a correction above the $51,500 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $57,234 high to $50,400 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

There is also a key contracting triangle forming with resistance near $52,500 on the hourly chart of the BTC/USD pair. If there is an upside break above the triangle resistance, the price could even break $53,150. The next key resistance is near the $53,800 level.

The 50% Fib retracement level of the recent decline from the $57,234 high to $50,400 low is also near $53,800. A successful break above $53,800 is likely to open the doors for a move towards $54,500 or $55,000.

Fresh Drop in BTC?

If bitcoin fails to correct higher above $52,500 and $53,150, there are chances of more downsides in the near term. An initial support is near the $51,000 level and the triangle lower trend line.

The first key support is now near the $50,500 level, below which the price is likely to test the $50,000 support zone. Any more losses might push the price towards the $48,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now just above the 50 level.

Major Support Levels – $51,000, followed by $50,500.

Major Resistance Levels – $52,500, $53,150 and $54,500.

Posted on

Crypto Analyst Claims MicroStrategy Is “On The Ropes” Amidst Bitcoin Selloff

MicroStrategy and its head honcho Michael Saylor have become synonymous with Bitcoin, responsible for kicking off the corporate treasury reserve trend that’s transpired ever since.

As a result of the innovative, albeit risky move, company shares skyrocketed to revisit dot com-bubble resistance levels. The rejection, has left MicroStrategy “on the ropes” amidst the recent Bitcoin selloff, suggesting things could potentially get a lot deeper.

Michael Saylor Keeps Buying Bitcoin As Prices Plummet

Raging Bitcoin bull Michael Saylor has spent the last several months being the mouthpiece of the top cryptocurrency by market cap, essentially acting as its CEO, marketing department, corporate business development manager, and social media manager all-in-one.

He uses his platform as a way to spread the word about the cryptocurrency’s value, which he has repeatedly double, and tripled down on, and then some.

Related Reading | This Bitcoin Metric Says The Bull Market Might Soon Be Over

At the rate he’s going, the guy will have a wallet containing more BTC than Satoshi another year or so from now. Up until recently, this has been paying off dramatically for Saylor and anyone he influenced and bought BTC, as the price per coin has been rising substantially.

microstrategy Bitcoin btc saylor

MicroStrategy shares went parabolic like Bitcoin | Source: NASDAQ-MSTR on TradingView.com

In tandem, the price per share of MicroStrategy (MSTR) also went parabolic, mimicking the current Bitcoin price chart.

The recent selloff and potential peak in the leading cryptocurrency by market cap, is following a similar trajectory downward after doing the same on the way up.

MicroStrategy Shares On The Ropes, Here’s Why Investors Could Be Uneasy

MicroStrategy shares are now “on the ropes,” according to one top crypto analyst.  A potential retest could be in progress, and if the attempt fails, it could be a technical knock out for the corporation’s crypto-fueled rally.

But could this also mean that sentiment is shifting enough in Bitcoin for MicroStrategy to be affected this negatively? That same theory vice versa doesn’t make sense.

Whatever the case may be, there is a chance that Saylor’s bet on Bitcoin will be right, but was still a little too soon for the cryptocurrency.

microstrategy Bitcoin btc saylor bitcoin

Michael Saylor's company shares were hit hard post dot com era | Source: NASDAQ-MSTR on TradingView.com

Where the recent MicroStrategy rally topped out, was at resistance dating back to the dot com bubble. When that popped, Saylor was reportedly left as one of that era’s biggest losers financially, according to Fortune Magazine. Saylor had lost a total of $13.5 billion.

Related Reading | Why March Is The Bloodiest Month In Bitcoin History

Once again, Saylor could end up losing out big due to his commitment to being a pioneer in the cryptocurrency. The bold bet in Bitcoin has paid off, but his continued push has made many investors question his speculative bet – which could be behind the correction in MicroStrategy shares in the first place.

Featured image from Deposit Photos, Charts from TradingView.com
Posted on

Now Or Never: Litecoin Plummets To Bottom Of Top Ten Crypto Assets

Litecoin is often called the silver to Bitcoin as digital gold, and strangely, the two cryptocurrencies and two precious metals are exhibiting the same behavior where one is lagging behind the other.

The lack of momentum in the digital and physical forms of silver have kept the price of both assets at bay for the entire recent bull market in each class. With no growth in Litecoin compared to other cryptocurrencies, the altcoin is only a billion dollars away from losing the top ten cryptocurrency by market cap status – something its held pretty much since its inception.

“Digital Silver” Is The Altcoin That Simply Won’t Shine

Litecoin is an offshoot of the original Bitcoin code, created in 2011 by former Google and Coinbase engineer Charlie Lee.

Much like how on a per ounce basis gold is more both more scarce and valuable than silver is, there are four times as many total LTC compared to Bitcoin’s 21 million BTC.

Related Reading | Digital Silver: Why Litecoin Is Poised To Bounce Versus Bitcoin

In addition, there’s faster transactions, among other benefits. Outside of the few differences, there’s mostly similarities between them – including a hard-coded halving recurring every four years or so.

litecoin versus bitcoin ethereum Litecoin is severely lagging behind the rest of crypto | Source: LTCUSD on TradingView.com

But unlike Bitcoin, that halving amounted to very little in terms of sustainable returns for investors of the altcoin. The cryptocurrency is lagging far behind Bitcoin, Ethereum, and most other cryptocurrencies in the market.

Also unlike Bitcoin or Ethereum and several other altcoins, Litecoin has failed to set a new all-time high since the bull market began.

Even gold has set a new price record, while silver still trades well below its. It is bizarre that the asset dubbed digital silver, is following the path of physical silver so well, versus the rest of the crypto world.

Litecoin At Risk Of Losing Top Ten Crypto Status

The continued underperformance of Litecoin compared to there rest of the market, however, could knock the cryptocurrency out of the top ten assets ranked by market cap, according to price aggregator CoinMarketCap.

The animated GIF above is a look back at the past decade or so the historical snapshots will go back, taken from the first ever date, then annually each March closest to the end of the month.

Every single snapshot, Litecoin is ranked anywhere from number two to ten, and every rank in between. It’s never had the number one spot, but it’s also never lost the top ten.

Related Reading | Five Signs Litecoin Has Bottomed, Next In Line For New ATH

But the likes of Chainlink, Stellar, and Bitcoin Cash are all right on its tail, some within a $1 billion striking distance for making history for unseating Litecoin. Each of the three assets have also had a stint in the top ten themselves.

There’s also a rising stablecoin – USD Coin – right on its tail, and with more stablecoins being created monthly, the chances of it taking out the altcoin are also high.

Could a fall out of the top ten and from grace be a fatal blow for the coin, or is sentiment reaching this deep of a low in the coin a sign that capitulation is setting in and things might finally turn around?

Given how far behind Litecoin is, the low supply, several bullish technicals, and more, the altcoin could end up shocking the world when it finally does.

Featured image from Deposit Photos, Charts from TradingView.com
Posted on

Microsoft deploys solution on Bitcoin, calls it the most secure network

Senior Product Manager for Decentralized Identity at Microsoft, Daniel Buchner, has confirmed the release of ION. Deployed on the Bitcoin mainnet, this solution is a permissionless public network for Decentralized Identifiers (DIDs).

Implemented on Bitcoin’s blockchain, it operates as a second-layer solution to support a DIDs/DPKI (Decentralized Public Key Infrastructure) at scale, according to its Github repository.

This project began four years ago, its purpose is to give individuals, organizations and others control over digital exchanges with DIDs. The ION uses a Sidetree protocol to anchor DID/DPKI transactions interacting on the network.

Each transaction is encoded with a hash that allows ION nodes to categorize, store, process, and fetch the transactions associated with a specific DID. Buchner stated in the official release:

We are excited to share that v1 of ION is complete and has been launched on Bitcoin mainnet. We have deployed an ION node to our production infrastructure and are working together with other companies and organizations to do so as well. ION does not rely on centralized entities, trusted validators, or special protocol tokens – ION answers to no one but you, the community. Because ION is an open, permissionless system, anyone can run an ION node, in fact the more nodes in operation, the stronger the network becomes.

Why did Microsoft decide to use Bitcoin’s blockchain?

The ION network is connected to Bitcoin with the InterPlanetary File System (IPFS) and does not require an additional consensus mechanism.  Its nodes can process “tens of thousands of transactions per second.” Interested users can start generating their DIDs without having to use BTC or run an ION node on their own.

In the project’s FAQ section, the ION team rates Bitcoin as the most secure blockchain on two metrics: production of a single, independent, immutable record with no way to reverse it; inexpensive cost of attacking the system. Microsoft’s ION team stated:

Bitcoin is so far beyond all other options, it isn’t even close – Bitcoin is the most secure option by an absurdly large margin.

In terms of cost, Buchner said the solution’s protocol “It’s skewed toward bandwidth and storage.” Thus, it can support 40 billion DIDs in 2 TB of memory space with a lightweight configuration for the nodes. Buchner said the following via his Twitter handle:

This is the culmination of 10 years of work, beginning in 2011 when a few of us at Mozilla set aside some of our time to explore the core concepts of Decentralized Identity. Microsoft ultimately provided the opportunity to realize this dream, and for that I am eternally grateful.

MicroStrategy’s CEO Michael Saylor welcomed the announcement and predicted that similar second-layer solutions will be released more frequently on Bitcoin. Their use cases will be broad and applied in people’s daily lives.

Bitcoin trades at $52,347 showing a slight recovery in the 1-hour chart with 1.5% gains. On the 24-hour chart, losses are at 5.6% following an 11.1% correction on the 7-day chart.

Bitcoin BTC
Bitcoin registers slight gains in the 1-hour chart. Source: BTCUSD Tradingview
Posted on

TA: Bitcoin Breaks $53K, Why BTC Could Soon Revisit $50K

Bitcoin price attempted a recovery above $56,000 against the US Dollar, but it struggled above $57,000. BTC trimmed gains and it even broke the $53,200 support zone.

  • Bitcoin extended its decline below $53,200 and $53,000 support levels.
  • The price is now trading well below $54,000 and the 100 hourly simple moving average.
  • There was a break below a key bullish trend line with support near $54,220 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue lower towards the $51,000 and $50,000 levels in the near term.

Bitcoin Price Extends Losses

Yesterday, bitcoin started a decent recovery above the $55,500 and $56,000 levels. BTC even spiked above the $57,000 resistance and the 100 hourly simple moving average.

However, the price struggled to continue higher and it started a fresh decline from the $57,235 high. It broke a few important supports near the $56,000 and $55,500 levels. There was also a break below a key bullish trend line with support near $54,220 on the hourly chart of the BTC/USD pair.

The price even declined below the $54,000 support level and the $53,200 pivot level. It traded to a new weekly low at $51,634 and it is now consolidating losses. An initial resistance is near the $53,000 level. It is close to the 23.6% Fib retracement level of the recent decline from the $57,235 high to $51,634 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

The first major resistance is near the $53,200 pivot level. If there is a fresh increase above $53,200, the price could recover towards the $54,500 level. The 50% Fib retracement level of the recent decline from the $57,235 high to $51,634 low is also close to $54,500.

More Losses in BTC?

If bitcoin fails to correct higher above $53,200 and $54,500, there are chances of more downsides in the near term. An initial support is near the $51,500 level.

The first key support is now near the $51,000 level, below which the price is likely to test the $50,000 support zone. Any more losses might call for a move towards the $48,000 level.

Technical indicators:

Hourly MACD – The MACD is now gaining momentum in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Levels – $51,000, followed by $50,000.

Major Resistance Levels – $53,200, $54,500 and $55,000.

Posted on

Internet Celebrities Lead $5M Investment In Bitcoin Reward Program Lolli

Lolli, a BTC-back Bitcoin rewards program, has just completed a a $5M pre-Series A funding round, backed by a variety of popular internet celebrities and influencers.

Here’s more on what names are behind the $5 million in investment, and how Lolli has grown since its inception.

Internet Celebrities, Alex Ohanian and Serena Williams, Invest $5M In Bitcoin Rewards Firm

Bitcoin rewards company Lolli just revealed it has successfully raised $5 million in funding as part of a pre-Series A funding round with a notable list of investors.

Of those involved are several internet celebrities, including Reddit co-founder Alexis Ohanian, popular YouTuber Jimmy “MrBeast” Donaldson, Casey Neistat, Philip DeFranco, and CodyKo. Other notable figures include Serena Williams, who join other early investors such as Ashton Kutcher and Michelle Phan.

Related Reading | This Bitcoin Metric Says The Top Is Still 350% Away

These investors have become involved through their respective firms, Serena Ventures, her husband’s Seven Seven Six, and Mr. Beast management company Night Media, who are building into the future of Lolli alongside Digital Currency Group and others.

Lolli co-founder Alex Adelman says the company has issued more than $3 million in Bitcoin rewards to date, ranging around an average of 7% BTC-back rewards at a growing list of major retailers.

bitcoin lolli

Bitcoin has grown significantly, but these bullish factors could fuel another leg higher | Source: BTCUSD on TradingView.com

Top Lolli Users Earn 2 BTC, More Than $3 Million In Rewards Combined

Lolli boasts more than 250,000 users who can earn BTC back on purchases at retailers like Macy’s, Best Buy, Sephora, Foot Locker, and hundreds of others. These 250,000 users have collectively earned more than $3 million in Bitcoin rewards since the program’s inception.

Related Reading | Bitcoin Technicals Overheated, But Bullish Fundamentals Remain Unfazed

Top users, says the company, have earned as much as 2 BTC. Most have generated enough returns on the BTC they’ve earned, to pay for the original purchases they made in the first place.

The rewards program works through a browser extension for Chrome, Firefox, Brave, and others, letting users know when they’ve landed on a partner that they can earn rewards with. Once Lolli is enabled in-browser, simply complete the transaction, and BTC will eventually be credited to your account.

https://twitter.com/CircaDiem/status/1374714223570

That same account can also be tied to a smartphone app that lets users open a “loot box” for a daily stack of Bitcoin. Granted, these are typically tiny stacks of satoshi – the smallest unit of account of BTC – but there’s an occasional chance to win much larger cryptocurrency surprises.

The company will use the recent funding to build out the mobile app into a full shopping experience, and expand outside of the United States United States. Lolli is free to use, and at only 250,000 users globally, has enormous room to grow.

Featured image from Lolli, Charts from TradingView.com
Posted on

Goldman Sachs files for a ETF with option to invest in Bitcoin

According to a document filed with the U.S. Securities and Exchange Commission (SEC), banking giant Goldman Sachs has petition approval for a new Exchange Tradable Fund (ETF) with the option to add exposure to Bitcoin.

With an ARK innovation structure and a March 19, 2021 filing date, the financial product would be called Autocallable Contingent Coupon Coupon ETF-Linked Notes. Maturing on March 26, 2026, the product proposed by Goldman Sachs contemplates:

The ETF is an actively managed exchange-traded fund that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the ETF’s investment theme of disruptive innovation.

The fund’s primary investment strategy considers “companies” or disruptive technologies to be those that rely on and benefit from “products or services under development”. In addition, these “companies” may belong to multiple sectors (energy, transportation, genomics, among others) with scientific research that supports them. The document states:

The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.

In addition to Bitcoin, the bank’s proposed product will invest in Fintech innovation companies, “next-generation” internet companies, artificial intelligence, energy transformation, and automation transformation entities. The ETF could also give exposure to Bitcoin to third parties, as the document indicates:

The ETF is permitted to lend its portfolio securities to brokers, dealers and other financial institutions desiring to borrow securities to complete transactions, in pursuing arbitrage opportunities or hedging strategies or for other similar purposes. In connection with such loans, the ETF receives liquid collateral equal to at least 102% of the value of the portfolio securities being lent. This collateral is marked to market on a daily basis.

Banking institutions continue to increase their stake in Bitcoin

Just a few days ago, Morgan Stanley announced that it will give exposure to Bitcoin to its clients. Interested investors must have more than $5 million in an account at the bank.

The exposure will be granted by giving access to three funds, in partnership with crypto firm Galaxy Digital and FS NYDIG will enable the product.

Bitcoin price records moderate losses on the one-day chart with 3.3%, trading at $54,257. In the last week, losses stand at 6.7% with 8% on the 30-day chart.

Bitcoin BTC
Bitcoin registers moderate losses on the 24-hour chart. Source: BTCUSD Tradingview