BTCUSDT Archives - Page 114 of 116

30th March 2021

Buying With Bitcoin? PayPal Fine Print Reveals Swap To Fiat

Today, news broke that PayPal is ready to launch cryptocurrency payments to merchants, allowing its massive userbase of millions to pay with Bitcoin and the other altcoins has offered since the middle of last year.

However, like all things related to centralized platforms getting involved in cryptocurrencies, there’s a catch.

PayPal To Allow Customers To Pay With Bitcoin, Litecoin, Ethereum and BCH

As the company promised when cryptocurrency support was first announced, PayPal has followed up with rolling out support to allow customers to pay at its 29 million merchants globally.

PayPal users can now pay for goods and services through the platform using the four assets offered, including Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.

The initial announcement that the company would offer cryptocurrencies is the spark that set off the bull run, but the execution of their plan has been criticized since.

PayPal doesn’t allow users to move cryptocurrencies out of their custody to a wallet of their own choosing – defeating the purpose of the technology itself. In addition to issues with storing crypto assets, there’s also a catch when it comes to spending crypto.

bitcoin btc paypal fiat dollar news

Could the PayPal news be enough to push Bitcoin through resistance to new all-time highs? | Source: BTCUSD on TradingView.com

Paying With Crypto Involves First Swapping To Fiat

The PayPal news caused Bitcoin to once again rocket higher, and it could be the necessary momentum to push the cryptocurrency through resistance and to new all-time highs.

The initial PayPal news caused the breakout to begin with, so another leg higher could be in the cards. Regardless of the bullish price action resulting from the more recent news, once again its not all positive for cryptocurrency users.

In the same vein as other technology-defeating methods the company utilizes, PayPal also swaps any crypto assets out for fiat immediately before making the transaction. What’s really happening is that cryptocurrencies themselves aren’t being spent, but instead are being sold into cash and cash itself is being exchanged.

Rather relying on each cryptocurrency’s respective protocol to handle the transaction from wallet to wallet, PayPal has instead created a centralized system and wallet garden yet again. Companies like the brand have taken on a “if you can’t beat ’em, join ’em” approach with crypto over the last year or so, but have stopped short of fully embracing what the technology itself has to offer.

Who knows, though. Perhaps PayPal is doing its users a favor by encouraging them to hold rather than spend, which in the past has proven to be a mistake anyway.

Featured image from Deposit Photos, Charts from TradingView.com

30th March 2021

Bitcoin Nears $60,000 After PayPal Announces Crypto Checkout Service

Bitcoin prices rallied in the early London session after Reuters reported that PayPal would launch its crypto checkout services later on Tuesday.

The payment giant, which started offering bitcoin custodial and trading services in October last year, will now allow US customers to use their cryptocurrency holdings to pay to PayPal’s millions of merchants worldwide. The service also extends to users who hold Ethereum, Bitcoin Cash, and Litecoin.

“This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet,” Dan Schulman, president/CEO of PayPal told Reuters ahead of the formal announcement.

The offering made PayPal one of the largest mainstream financial giants foraying into the digital currency sector. Many analysts noted that it would lead to a crypto price boom, with the first signs already emerging across the bitcoin and altcoin market.

Bitcoin surged more than 2.5 percent to $59,300 shortly after the PayPal news entered the wire. Meanwhile, Ethereum, the second-largest cryptocurrency, climbed more than 1.25 percent to $1,844. Litecoin and Bitcoin Cash surged 1.97 percent and 2.36 percent, respectively.

Bitcoin price eyes an extended rebound towards $60,000. Source: BTCUSD on TradingView.com

Bullish Extension

The bitcoin price was already inching higher amid a renewed appetite for safe-havens on Wall Street.

Investors watched for a major fallout from Archegos Capital Management’s unwinding of more than $30 billion of stocks in recent sessions. The family-run fund’s losses prompted banks that brokered its trades to liquidate positions, with Credit Suisse and Nomura Holdings admitting that they risked facing losses.

Bitcoin inched higher on the news, although no evidence could correlate the two events. Meanwhile, investors’ anticipation of a potential stock market turmoil raised their appetite for the US dollar, their safest bet against economic uncertainty.

Paypal announce a move to accept cryptocurrency as a means of payment globally. Millions of merchants. Billions of people. 🏦📲🌐 #Bitcoin #Crypto https://t.co/tiKmqu7Aht

— Alex Saunders 🇦🇺👨‍🔬 (@AlexSaundersAU) March 30, 2021

With PayPal at its backer now, Bitcoin now hopes to extend its price rally beyond the psychological resistance level of $60,000.

“Next key levels are $72,000-100,000 on Bitcoin,” said Zhu Su, the CEO/CIO at Three Arrow Capital.

30th March 2021

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.

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.

30th March 2021

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.”

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.

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

29th March 2021

Bitcoin Rallies Strongly as a $30bn Dump Rattles US Stock Futures

Bitcoin prices rose aggressively heading into the European session Monday, breaking above $58,000 as traders pinned their hopes on another all-time high milestone ahead.

The benchmark cryptocurrency was changing hands for $58,146 at 10:18 UTC, up 4.25 percent from its intraday open. A record expiry of $6 billion worth of options contracts on Friday helped ease downside pressure in the Bitcoin market as the spot price rallied towards the bullish strike rate of $55,000.

A Macroeconomic Coincidence

More tailwinds for the cryptocurrency came from a struggling US market on Monday.

Futures tied to Wall Street indexes, including the S&P 500 and the Dow Jones Industrial Average, slid in the pre-market session, pointing to losses after the New York opening bell. The indexes’ futures incurred losses after a large investment fund dumped billions of dollars in holdings, stoking concerns that global banks who dealt with the firm could face heavy losses, as well.

The move was by Archegos Capital Management, an investment firm owned by former Tiger Asia manager Bill Hwang — a fund manager with a history of participation in wire fraud. The firm unwound $30 billion worth of holdings in a handful of companies, including Discovery and ViacomCBS, leading to massive crashes in their stock rates.

Bitcoin held its gains by then, undergoing a modest downside correction but nothing that could offset its early morning gains.

US dollar index was firm heading into European session. Source: DXY on TradingView.com — US dollar index was firm heading into the European session. Source: DXY on TradingView.com

On Monday, Credit Suisse Group and Nomura Holdings admitted that they suffered substantial losses from their US client dealings. The banks did not name Achegos Capital directly.

Shares in European markets were trading flat after getting weighed down by the Credit Suisse shares. The pan-European Stoxx 600 was up 0.31 percent after erasing most of its early morning gains tied to mining, oil & gas, travel, and leisure shares.

Bitcoin does not have any correlation with stock markets. But the cryptocurrency still tends to react to the trends on Wall Street erratically. It had crashed by almost 60 percent in March last year in just two days amid a global market rout.

Nevertheless, Bitcoin lately started reacting to developments in the US bond market. A sharp climb in the benchmark 10-year Treasury note in the week ending February 28 coincided with a 21 percent decline in the Bitcoin market.

The cryptocurrency later recovered its bullish momentum, hitting even a new record high, after the bond yields stabilized near their 14-month peak. Interest rates for the 10-year note were stable on Monday, as well, dropping to 1.657 percent. Yields drop when the bond prices rise.

Bitcoin Outlook Ahead

The BTC/USD exchange rate has broken out of a bullish continuation pattern after its latest move upside.

Bitcoin prices jump above $58,000. Source: BTCUSD on TradingView.com

Dubbed as Bull Flag, the pattern hints at a breakout upward by a length equal to its previous uptrend’s height. That somewhat puts the bitcoin price target way above its previous all-time high at $61,778 (data from Coinbase).

Meanwhile, a downside correction as Bitcoin’s Relative Strength Indicator crosses 70 would indicate a potential decline towards the blue wave (it is the 50-4H simple moving average).

Photo by Robert Bye on Unsplash

29th March 2021

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.

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.

28th March 2021

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.

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

27th March 2021

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.

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.

A Tesla is the new pizza

10 years from now people will be amazed that someone spent a whole #Bitcoin for a Tesla

— Max Keiser (@maxkeiser) March 25, 2021

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.

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

26th March 2021

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.

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

I think y’all know what massive outflows from Coinbase Pro usually means.$BTC pic.twitter.com/QS3LK39WZW

— Joseph Young (@iamjosephyoung) March 26, 2021

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.

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

26th March 2021

There’s Zero Chance of Bitcoin Being Replaced Says Saylor

When it comes to the likelihood of Bitcoin losing its crown as the leading cryptocurrency, Michael Saylor of MicroStrategy thinks there’s zero chance of that ever happening.

But is he right? After all, when it comes to tech, Bitcoin is way behind the competition.

The Case Against Bitcoin

Since day one, Bitcoin has managed to fend off all challengers, in terms of market cap at least.

Although technically superior, faster, and cheaper blockchains exist, the market maintains its preference for Bitcoin. Granted, Bitcoin’s days of 80%+ dominance have passed. But as things stand, it still outshines every other crypto project out there and by a significant margin as well.

Despite that, there is always a nagging doubt on whether Bitcoin can continue to hold this position.

Those who foresee a flippening often cite first movers eventually making way for newer technologies. There are countless examples of this, from MySpace to Facebook and Netscape to Chrome.

Add to that the flaws in Bitcoin, and it’s easy to make a case for a flippening. Flaws such as its low 7 transactions per second speed, its lack of privacy, and the fact Bitcoin cannot be programmed.

Taking all of this into account, one is forced to question whether Bitcoin has a future.

Saylor Says The Future is Bright

According to Michael Saylor, the future of Bitcoin looks bright, regardless of its technical shortfalls. He believes price is the main driver of Bitcoin’s stickability and why it will stay on top.

Saylor added that the Bitcoin price has barely begun to fulfill its potential. When it does, it will be the most successful thing the world has ever seen.

“I think there’s about zero chance of that. Bitcoin’s a trillion dollar digital monetary network. Bitcoin would be the most successful thing you’ve ever seen in your life.

Backing up this claim, Saylor quotes the timeframes in which top companies reached a trillion dollar market cap. Saylor points out that Bitcoin has achieved this in just 12 years, compared to many decades for the others.

“it took Microsoft 44 years to be a trillion dollars, it took Apple 42 years to be a trillion dollar network, it took Amazon 24 years to be a trillion dollar network, it took Google 22 years to be a trillion dollar network. It took Bitcoin 12 years to be a trillion dollar network, and there’s nothing else. There is no other trillion dollar network.”

What’s more, Saylor states that this growth rate is only accelerating during these uncertain times of money printing and low-interest rates. Add to that the institutions, of the likes of PayPal and Square, building on the base layer, and Saylor is confident that Bitcoin’s place as the number one crypto is assured.

Bitcoin daily chart

Source: BTCUSD on TradingView.com

26th March 2021

Bitcoin Retail Investors Confident About $50,000-Price Bottom

Bitcoin fell from about $60,000 to nearly $50,000 this week, but it has not deviated retail interest, according to Robbie Liu of OKEx.

The investment analyst cited renewed buying activity near the $50,000 level among retail investors, confirmed by the rising long/short ratio and the rising USDT premium in the Asian market. The long/short ratio compares the total number of users opening long positions versus those opening short positions.

Bitcoin climbed by more than 7 percent after testing $50,000-area as its support.

Bitcoin bounces off the $50,000 area. Source: BTCUSD on TradingView.com

Bitcoin Futures Premium

Additionally, he highlighted BTCUSD0326, a large-volumed bitcoin futures contract expiring in June that now trades near the $56,200 levels, about 5 percent higher than Bitcoin’s spot rate. Prices tend to follow futures’ bids.

“Last Friday, the premium of BTCUSD0625 jumped to 8% before quickly retracing,” alerted Mr. Liu. “The premium is now back to 5% levels, indicating weak market expectations regarding the end of June price. However, since the expiration date is still far off, any increase in price could quickly drive up the premium.”

The price of futures reflects the traders' expectations of the price of Bitcoin. Source: OKEx — The price of futures reflects the traders’ expectations of the price of Bitcoin. Source: OKEx

The retail interest in Bitcoin climbed with the ongoing de-risking sentiment among institutional investors. Signs of a resurgent US economy, rising bond yields, and nascent inflation prompted investors to rotate out of the so-called pandemic winners, including bitcoin, and seek opportunity in markets that suffered majorly during the coronavirus lockdown.

As a result, manufacturers, banks, and retail sectors outperformed tech stocks. The US dollar index climbed higher, as well, as longer-dated Treasury yields surged.

“Retail investors have seemingly been trying to catch the bottom around the past two days while institutions generally want to de-risk. 50,000 USDT is now becoming a key level to watch,” said Mr. Liu about Bitcoin.

“The current event-driven week is ending on a weak note with all the selling pressure stepping in after the Tesla announcement. However, with the massive options expiry out of the way, we could see BTC move more independently over the weekend,” he added.

Margin Lending Ratio

More support for the $50,000-bottom theory appeared from Bitcoin’s margin lending ratio. It is the ratio between users borrowing dollar-pegged USDT versus borrowing BTC in USDT value over a given timeframe. Typically, traders borrow USDT to buy bitcoin, and those who buy BTC aim to short it.

“The margin lending ratio has also seen a counter-trend rise during the BTC retracement, rising from around 8.5 to a high of 10.5 in the past two days,” said Mr. Liu.

“This also indicates that retail investors are confident about the price floor near 50,000 USDT,” he added.

Photo by André François McKenzie on Unsplash

26th March 2021

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.

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.

26th March 2021

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.

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

25th March 2021

50 Cent Associate Jay Mazini Accused of $2.5m Bitcoin Scam Against IG Followers

Federal prosecutors caught up with social media influencer Jay Mazini yesterday, charging him over a $2.5mn Bitcoin fraud. Mazini, whose legal name is Jebara Igbara, is alleged to have exploited his Instagram followers in a BTC for cash scheme.

Jonathan D. Larsen, the Special Agent-in-Charge at the Internal Revenue Service-Criminal Investigation, said:

“This defendant allegedly used his online popularity to defraud those seeking to exchange Bitcoin for cash above the market value. Always be on your guard and don’t fall prey to these cryptocurrency schemes.”

How Did Mazini Swindle Bitcoin From His Followers?

People who claim to have fallen victim to Mazini have come forward to detail their account of what happened. They say Mazini posted on social media platform Instagram saying he will buy Bitcoin at 5% above market rate.

Mazini is then alleged to have falsified documents confirming wire transfers in payment for the Bitcoin he received.

One victim described his experience. He said Mazini used screenshots of account balances to “prove” his legitimacy. Mazini also sent copies of his passport, presumably to further win trust. He even offered to meet up and hang out.

After sending Bitcoin, the victim said he was sent a bank wire to confirm payment. But the money never arrived in his account. When raised with Mazini, the victim was told that this was a banking error, to which another bank wire was issued. Again, the funds never cleared.

He estimates Mazini has defrauded $22mn from victims, much bigger than prosecutors allege at present.

FBI Assistant Director in Charge William F. Sweeney warned that people be on guard when it comes to social media personalities. Sweeney adds that what’s depicted on these platforms isn’t always as it seems.

“As we allege, Igbara’s social media persona served as a backdrop for enticing victims to sell him their Bitcoin at attractive, but inflated, values. A behind-the-scenes look, however, revealed things aren’t always as they seem.

There was nothing philanthropic about the Bitcoin transactions Igbara engaged in with his victims. A quick search of the Interwebs today will reveal an entirely different image of this multimillion-dollar scammer.”

The Attorney’s Office press release called on other victims to come forward.

Mazini Accused of Other Frauds

Mazini is also accused of a giveaway scam. This involved buying a certain amount of merchandise from his Mazini Italy clothing line on the promise of receiving more merchandise for free.

Others have also accused him of investment fraud related to a fund called Halal Capital. They say Mazini played on his fellowship with Muslims to persuade them to invest with Halal Capital. Mazini claims to have been robbed at gunpoint, losing all of the funds.

The accused is often shown in videos giving away thousands of dollars. In one clip, with rapper 50 Cent, Mazini is filmed giving Burger King employees money.

But as Sweeney points out, fraudsters can use social media to manipulate users. As ever, a healthy dose of skepticism is needed whenever it comes to parting with money or Bitcoin.

Bitcoin daily chart

Source: BTCUSD on TradingView.com

25th March 2021

Bitcoin Sell-Off Worsens as US Jobless Claims Hit Pandemic Low; What’s Next?

Bitcoin edged lower Thursday after the jobless claims in the United States reached their lowest level of the pandemic, confirming that the country’s economy is recovering at a faster rate.

The benchmark cryptocurrency fell to as low as $50,305 ahead of the New York opening bell, continuing its decline from the previous five sessions as traders became uncertain about potential demand against an optimistic economic outlook in the US.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT — Bitcoin dips towards $50,000 ahead of the US session Thursday. Source: BTCUSD on TradingView.com

Bitcoin earlier surged by more than 1,500 percent from its mid-March nadir as investors hunted for profitable investment alternatives against a dwindling US dollar and meager US Treasury yields.

Nevertheless, widespread vaccinations, easing business restrictions, and a flurry of government stimulus packages worked as an adhesive bandage on a very-wounded US economy. Americans are now spending more on businesses that were at the forefront of losses during the coronavirus pandemic. They include restaurants, gyms, hotels, salons, etc.

The renewed consumer spending led to the creation of 379,00 jobs in February. As a result, the unemployment rate ticked down to 6.2 percent, the US Labor Department’s statistics showed.

“There are fewer people that are losing their jobs,” Ben Ayers, senior economist at Nationwide Mutual Insurance Co, told the Wall Street Journal. “That’s a great sign that things are starting to pick up again for the economy.”

The 10-year US Treasury yield dropped down to 1.603 percent from 1.613 percent in the previous session in the bond market. Yields drop when bond prices rise. Against the falling US stock futures on Thursday, it appeared portfolio managers were moving their capital out of equities to bonds in a quarter-end rebalancing.

Bitcoin, which moved almost in tandem with Wall Street during the pandemic, dragged itself lower in sync with the Nasdaq Composite and S&P 500 indexes.

Recovery for Bitcoin Ahead?

There are signs that the rebound in the global economy might slow down by an extension of coronavirus lockdowns and growing limitations in the supply chain for vaccines. Fresh stimulus checks in the US also risk faster inflation, threatening to curb appetite for government bonds and technology stocks.

Last week, the Federal Reserve clarified that it would maintain lower interest rates and infinite bond-buying programs unless it achieves a sustainable inflation rate above 2 percent and maximum employment. With the US economy recovering, the central bank is steadily inching towards its target before introducing the next rate hike.

The Fed wants to maintain lower rates until 2024.

Therefore, Bitcoin is entering a period of uncertainty. On the one hand, the prospect of higher inflation and monetary debasement could make the cryptocurrency appealing for more corporates and mainstream investors.

Meanwhile, on the other, a focus shift towards the pandemic losers — sectors like energy, hospitality, etc. — offer traditional investors a less risky alternative to park their capital after selling overvalued assets.

Technically, Bitcoin now holds support at its 50-day moving average. A breakdown below it risks crashing the cryptocurrency towards $44,000.

25th March 2021

Buying a Tesla With Bitcoin Exposes This Flaw, Don’t Get Caught Out

In February, electric car maker Tesla announced it had purchased $1.5bn in Bitcoin. Along with the announcement was a commitment, they would also accept BTC as payment, making it the first car manufacturer to do so.

The firm followed through with that pledge. As of yesterday, using Bitcoin to buy directly from Tesla became a reality. But a look at the terms and conditions highlights a situation that makes little sense for buyers.

Why is Buying a Tesla With Bitcoin a Bad Idea?

Given Elon Musk’s interest in cryptocurrency, it was only a matter of time before Tesla would accept Bitcoin. While some say this is good for crypto, a deeper dive shows it may not be good for consumers.

The main problem is that Tesla uses dollar pricing and then converts it into a Bitcoin price payable. Considering the volatile nature of cryptocurrencies, customers could pay significantly different BTC amounts for the same thing.

“All products are priced in U.S. Dollars. If you choose to make a payment using Bitcoin, you must pay an amount of Bitcoin that is of equivalent value to the U.S. Dollar purchase price of the product that you purchase.”

A further issue arises in the case of refunds and buybacks. According to the terms and conditions, Tesla can choose to refund you in either the exact Bitcoin price at the time of purchase or the dollar equivalent.

“If you are entitled to a refund of your payment or to a buyback, we reserve the right to refund to you either the exact Bitcoin Price that you provided to us at the time of purchase or an amount of US Dollars that is equivalent to the US Dollar price of the product that you purchased, at our sole and absolute discretion, taking into consideration operational efficiency.”

Refunding customers in Bitcoin exposes buyers to market dips. While it’s likely Tesla would refund in dollars if the market rose between purchase and refund dates.

Add to this capital gains tax obligations when buying in Bitcoin, and paying in dollars looks the better deal.

Musk Doesn’t Want Dollars

Elon Musk revealed the firm plans to keep the Bitcoin earned rather than convert it to dollars.

“Tesla is using only internal & open source software & operates Bitcoin nodes directly.

Bitcoin paid to Tesla will be retained as Bitcoin, not converted to fiat currency.”

As ever, his response triggers more questions than it answers. For example, does Musk believe the dollar will devalue substantially? And why is Tesla running Bitcoin nodes? Especially when there is no financial reward for doing so.

In any case, buying a Tesla with Bitcoin only works if the car is priced in Bitcoin. Considering most supply and expense ecosystems operate in dollars, pricing in Bitcoin won’t happen anytime soon.

Bitcoin daily chart

Source: BTCUSD on TradingView.com

25th March 2021

Could Bitcoin Benefit From Wall Street’s Quarter-End Rebalancing?

A migration of billions of dollars is set to happen from stocks to bonds by the end of March as US-based asset management firms rebalance their portfolios. And it could have a direct or an indirect impact on the Bitcoin market.

Nikolaos Panigirtzoglou, a cross-asset research analyst at JPMorgan & Chase, noted that pension funds, insurers, and similarly large investment groups will sell their stock positions to seek exposure in the bond market. The move, according to Mr. Panigirtzoglou, would appear as investors seek to go back to the classic 60/40 mix, a portfolio strategy that prompts asset managers to keep 60 percent of their capital in stocks and 40 percent in government bonds.

“It should be happening as we speak,” Mr. Panigirtzoglou told the Financial Times. “The rebalancing could already help to explain the stronger bond market performance so far this week, as the transfers are typically concentrated in the last two weeks of the quarter.”

US bond prices declined of late, led by the fall in the US 10-year Treasury note, which sent its yields up from 0.917 percent at the start of 2021 to around 1.617 percent on March 25. Meanwhile, the MSCI index of developed market equities surged 2.63 percent in the same period.

MSCI, Bitcoin — MSCI index of developed countries. Source: MSCI

Given the divergence between equities and bonds, analysts expect the quarter-end rebalancing to be large as more capital moves into fixed-incomes.

Will Bitcoin Suffer?

According to Australia’s Future Fund and Singapore’s GIC Pte, two of the world’s biggest sovereign wealth funds, it is now tougher for investors to generate returns from bond markets as yields on them remain historically low.

Central banks in developed economies have created an artificial demand for government debts as a part of their strategy to safeguard their economies from the coronavirus pandemic’s aftermath.

As a result, the 60/40 strategy has lost its charm. More investor money now sits in riskier assets and even newbie financial assets like Bitcoin that the global financial experts once rejected as too fishy, or an outright scam.

Given the reallocation prospects by the end of this quarter, Bitcoin continues to flash itself as a viable alternative to gold. Its provably scarcer features attract investors who need a hedge against faster inflation rates. Billionaire investors Ray Dalio, Paul Tudor Jones, and Stan Druckenmiller are some of the topmost names that have taken positions in Bitcoin because other safe-havens like bonds do not offer higher returns.

Goldman Sachs said in its recent report that 40 percent of its almost 300 clients have gained exposure in Bitcoin, showing that the asset’s price volatility is now the least of their concerns. Of late, Morgan Stanley also started offering three Bitcoin funds to its wealthy clients, raising hopes that all the money that would flow out of the stock market won’t end up in bonds only.

Nonetheless, Bitcoin remains highly valued like stocks. It could lead the cryptocurrency lower in the short-term based on its technically overbought merits.

Cover Photo by Tech Daily on Unsplash

25th March 2021

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.

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.

25th March 2021

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.

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

24th March 2021

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

Bitcoin price is back in the mid-$50,000 range, unable to push any lower despite bears best efforts and overheated technical indicators pointing to a potential trend reversal. However, several fundamental factors are proving to be too strong, and are setting the stage for the next leg up in the ongoing cryptocurrency bull trend instead.

Here’s what rising stablecoin supply says in the face of diminishing BTC reserves on exchanges, and what it could mean for all of crypto.

Fundamental Factors Have Fueled The Cryptocurrency’s Recent Rise To Stardom

Cryptocurrencies, like all free markets, are driven by the dynamic forces of supply and demand. Other factors, such as regulatory, political, environmental, and economical issues can also have a dramatic impact.

Two examples of one extreme or another, include the Black Thursday market crash due to pandemic panic, and the polar opposite move to the upside due to a BTC supply shock.

bitcoin btc stablecoins reserve

Bitcoin has grown significantly, driven by bullish fundamentals | Source: BTCUSD on TradingView.com

A shift in avalaible supply and increasing demand for Bitcoin, has brought the price per coin to more than $60,000 at the high. Technicals have been mostly overheated the entire way up, and are reaching a boiling point.

Yet prices still aren’t falling any deeper than the mid-to-low $50,000 range, and it could be due to just how strong fundamental factors are currently.

The Bullish Factors Keeping Bitcoin Afloat, Another Leg Up Possible

Among the factors keeping Bitcoin price action afloat despite technical momentum indicators turning sharply down, is the continued lack of BTC on crypto exchanges. The liquidity crisis that has driven up prices so far, remains a vital factor in the buoyancy.

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

Next, stablecoin supply has been steadily rising again, one of the primary factors behind each bullish impulse on the way up. Quant analysts have said that fresh USD was necessary to push higher, however, an increase in stablecoins could shift more capital into Bitcoin, and have a similar impact.

bitcoin btc stablecoins

Stablecoin reserves continue to rise while BTC held on exchanges drops further | Source: CryptoQuant

If the leading cryptocurrency by market cap can sustain the current support levels and keep several bearish technicals at bay, then another leg up is the only way ahead. A continued rise could squeeze shorts at current all-time highs, causing prices to return to their parabolic trajectory.

If not, however, technicals will have outweighed fundamentals for the first time during the bull market, and it could result in the first more sizable correction since it all first began.

Will the increasing supply of stablecoins and low BTC reserve be enough to shake off momentum flipping bearish?

Featured image from Deposit Photos, Charts from TradingView.com