Category: crypto

Bitcoin price is currently flirting with prices above $60,000, as the momentum of the ongoing bull market slowly begins to push the asset above the key resistance level.

The start of a breakout through resistance might have began with last night’s historic weekly close – the highest ever recorded. However, despite what could be a clean bullish breakout, there’s a bearish factor lingering that could make this the last weekly close the high for some time.

Bitcoin Price Closes Record High Weekly Candle Above $60,000

Bitcoin price has poked above $60,000 dozens of times now, yet has been unable to hold strong above the clearly strong resistance level. The leading cryptocurrency by market cap, however, has also yet to tumble any further than a mere 10-20% for most of the last 12 months.

Related Reading | Crypto CEO “Convinced” Of Bitcoin Cycle Top, Warns Of Sell Side Intensity

The first signs that new highs could be near, is the first ever historic weekly candle close above $60,000. Last night’s weekly candle is also only the second daily candle to close above the crucial rounded number.

You have to zoom in to see it, but Bitcoin did close above $60,000 on Binance | Source: BTCUSDT on TradingView.com

The battle between bulls and bears came down to the very last seconds before the close, resulting in some disparity across exchanges. Bitcoin price made the achievement on Binance specifically and others, but failed to make a similar milestone on platforms like Bitfinex and Coinbase.

The slight discount on Coinbase could be a sign that buy pressure is finally waning and the sell side is intensifying.

Why The Record Could Precede A Short-Term Reversal

The cryptocurrency market has been on fire and its been mostly due to the rush to buy Bitcoin before other corporations and hedge funds buy it all.

But as mentioned, the FOMO could finally be running out of steam. Making matters worse, an ultra rare signal has appeared that has only in the past reared its head when the crypto cycle was finally complete.

A rare crypto cycle top indicator has issued its signal. Is the rally over? | Source: BTCUSD on TradingView.com

The Pi Cycle Top Indicator has now issued the fourth ever top signal with last night’s weekly candle close and subsequent daily candle open.

That could mean that a long term top could be in. A 2013-like scenario with two peaks in the same year would be bulls last hope for things to continue, albeit after a correction.

Related Reading | Analyst Expects “Escape Velocity” When Bitcoin Price Breaks $60K. Here’s Why

Back then the signal arrived early, Bitcoin price spiked much higher, then corrected 82% within just four days. After settling down, before the year was over Bitcoin price climbed another three to four times in value before the true top of that cycle was in.

What will it be this time around?

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A massive LA-based luxury real estate firm has begun accepting Bitcoin for rent payments.

In addition to loading up on BTC for its corporate reserves, the company has also tapped popular exchange Gemini to help build a crypto centric ecosystem for its retail, residential, and resort customers.

Rick Caruso and Caruso Real Estate Tap Gemini For Crypto

American real estate company Caruso, led by billionaire Rick Caruso, revealed this week that the firm would begin accepting Bitcoin for rent payments at both retail and residential properties.

The Los Angeles-based company offers stunning luxury properties in the area, including the Miramar Beach Resort, Palisades Village, Waterside at Marina Del Rey, The Commons at Calabasas, and many more.

Related Reading | Crypto CEO “Convinced” Of Bitcoin Cycle Top, Warns Of Sell Side Intensity

Through a partnership with the Winklevoss-owned Gemini, Caruso plans on further integrating cryptocurrencies into their company experience for consumers.

“You can use that cryptocurrency on the blockchain then to spend at our properties. Check into our resort. When you live with us, pay your rent. We create this whole ecosystem,” Caruso explained.

The strategy is something that Caruso plans to roll out over the next decade, and part of a long-term plan. “It’s not about the next year or five years,” he said.

Caruso also tapped Gemini as a custodian for its “significant initial investment” in BTC as part of its “treasury management strategy” – making the company the first in the real estate industry.

Completely integrating crypto within its customer experience reinforces “the company’s belief in the robust future of cryptocurrency.”

How much further can Bitcoin climb in another decade? | Source: BTCUSD on TradingView.com

The Boom Of Companies And Bitcoin Is Only Now Beginning

Caruso joins the growing list of corporations that have added BTC to their corporate treasure reserves, and more are coming.

A seminar led by MicroStrategy CEO Michael Saylor was intended to bring more businesses to the space by sharing his playbook.

Saylor’s lead also inspired the likes of Jack Dorsey’s Square Inc. and Elon Musk’s Tesla to start buying BTC. Dorsey also offers Bitcoin to customers through its Cash App, and Tesla added the ability to pay with the top cryptocurrency to buy its green vehicles.

Related Reading | Number Of Bitcoin Mentions In Company Earnings Reports Goes Parabolic

Companies that have done so have had substantial earnings to show for their innovative take. The mentions of Bitcoin in company earnings reports has gone parabolic recently, right alongside the asset’s price.

The proliferation of Bitcoin and other cryptocurrencies is only just beginning, and its potential application from real estate to payments and more will scale exponentially over the next decade and more.

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Bitcoin price is still stuck under $60,000 but unable to push any lower than $55,000. The tightening across the crypto market has been long and arduous but when $60,000 is finally broken, the crypto asset should reach what one analyst calls “escape velocity.”

Here’s what the term means and what that could look like post-breakout of the key resistance level.

Bitcoin Could Reach Escape Velocity After Breaking Above $60,000

Bitcoin price action has come to a critical impasse, either ready to explode to hundreds of thousands of dollars per coin, or about to take a dive from current highs.

Resistance above $60,000 has been the first zone proving too strong for bulls to get through with ease, causing momentum to fizzle out. Momentum indicators have turned red for the first time in months, but bears have failed to take prices much lower.

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

The standoff has volume dropping, and volatility dipping to the lowest levels in months for the characteristically explosive crypto asset.

But when things finally do break above $60,000, one crypto analyst expects things to reach “escape velocity.”

This is what escape velocity could look like in Bitcoin | Source: BTCUSD on TradingView.com

What The Physics Term Playing Out In Crypto Would Look Like

According to Wikipedia, escape velocity is a physics term describing “the minimum speed needed for a free, non-propelled object to escape from the gravitational influence of a massive body.” In simpler terms, its the strength and speed needed for an object to escape a planet’s gravitational pull and exit its atmosphere.

The analogy makes sense. “Escape velocity rises with the body’s mass and falls with the escaping object’s distance from its center. The escape velocity thus depends on how far the object has already traveled,” a description reads.

Essentially, $60,000 is the object’s center, and resistance should weaken once it is passed, requiring less overall momentum to continue to head off toward the moon.

Related Reading | Crypto CEO “Convinced” Of Bitcoin Cycle Top, Warns Of Sell Side Intensity

The reason being is, Bitcoin has attracted substantial media attention above $50,000 where the coin has now spent weeks above. Those waiting for a breakout of $60,000 will buy with extreme force knowing that any correction was warded off.

At the same time, those waiting for prices lower will realize it isn’t coming, and FOMO back into Bitcoin, causing prices to soar with even greater ease.

Between the flurry of new buyers getting in for the first time, sellers buying back in after they’ve realized their mistake, and more, it should cause the final parabolic stage of the Bitcoin bull run, and the “escape velocity” the analyst is talking about.

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Bitcoin is one of the most interesting and powerful pieces of mathematical code out there, launched as an open source project by the mysterious Satoshi Nakamoto.

In yet another one of the many ways math and mystery come together in relation to the cryptocurrency, its origins, and the underlying technology, the current peak in recent price action also just so happens to taken place perfectly at the golden ratio. But why?

Math, Mystery, And So Much More: Crunching The Cryptocurrency Numbers

Math is one of those love it or hate it subjects in school, but no one can discount just how powerful it is when used effectively. It is by definition “the study of quantity, structure, space, and change.”

When it comes to Bitcoin, math is everywhere around it. The hard-capped “quantity” of BTC will always remain at 21 million, while the “structure” of its code maintains that maximum cap.

Related Reading | Third Time’s The Harm: Trader Warns Of Bitcoin Reversal Pattern

“Space” in this case, isn’t in reference to moonshots, but in the geometric shapes and patterns that appear on Bitcoin price charts, which “change” with each buy or sell order.

Math is integral to quantifying data in fundamental analysis, and measurements go into plotting the lines and averages of technical indicators.

However, there’s no easy way to explain why the cryptocurrency’s recent bull rally, has topped out at a key mathematical area.

Why did Bitcoin stop at the golden ratio? | Source: BTCUSD on TradingView.com

Bitcoin Bull Rally Takes Pause At Golden Ratio, But Why?

Strangely, the current high in Bitcoin price is $61,800. At first glance, nothing appears to out of the ordinary about the number. But there very well could be some serious significance that could explain why momentum is beginning to turn around.

The number, now more than three times its 2017 record, just so happens to be 61.8% to the price point most investors are HODLing for, which is $100,000 per coin.

The golden ratio itself is 1.618, with the inverse as 0.618. The number is used in technical analysis as one of the Fibonacci retracement levels with the most significance.

Fib retracement and extensions are measured from lows to highs or vice versa, while in the case of the current rally, price action stopped instead at 61.8% of the way to the speculate target of $100,000.

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

It is a theory that cannot be proven, nor is it fully understood why the golden ratio is found so commonly throughout nature and within the price charts of assets like cryptocurencies.

Renowned twentieth-century artists such as Salvador Dalí have included the golden ratio within their works, “believing this to be aesthetically pleasing,” according to Wikipedia.

It also appears in various places within nature, such as within the pattern of leaves, or the spiral of the Nautilus shell. But could it also be the ideal zone for the speculators to begin taking profit before the bull market keeps going?

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Bitcoin price closed the historically red month of March not only in the green, but with the largest dollar for dollar gain on in the cryptocurrency’s short history.

Unfortunately, despite how strong the ongoing bull trend has been during the first quarter of the year so far, the quarterly candle which ended alongside March, also closed with a massively bearish signal.

Bitcoin Closes Quarterly With Record Gain, But Bearish Signal Couldn’t Be Avoided

Due the fact that both of Bitcoin’s largest bull markets topped as the fourth quarter of each year the concluded, Q1 is one of the worst quarters for the leading cryptocurrency by market cap.

Even in 2020, the quarter ended with a bearish bang, taking Bitcoin back under $4,000 before it was all said and done. This year, March came, but bulls sustained the month in the green, closing out what is now the largest monthly candle in terms of total dollars moved.

Related Reading | Heads Up: Bearish BTCUSD Technical Pattern Shouldn’t Be Shrugged Off

The quarterly candle climbed double during the month, adding more than $28,000 per coin to the trending cryptocurrency’s price tag. Despite the enormous move, Bitcoin would have had to pump more than $20,000 to $30,000 more to avoid the first ever bearish divergence on the quarterly RSI.

The quarterly Bitcoin candle closed with the largest gain ever, but left a bearish divergence behind | Source: BTCUSD on TradingView.com

Relative Strength Index Forewarns of Bearish Second Quarter of 2021, Before Bull Trend Resumes

According to the Relative Strength Index, a trend strength measuring gauge, the current trend is less strong than the buying momentum that took Bitcoin to $20,000 the first time – even though it is currently trading at three times that.

A bearish divergence appears when price action and technical indicators move in the opposite manner, revealing weakness in price action.

The current bull market peak is set at $61,800, and if the bearish divergence confirms, things could turn down for some time. The raging bull cryptocurrency, however, has shaken off nearly every bearish signal since Q4 of last year when the initial breakout took place.

Related Reading | Third Time’s The Harm: Trader Warns Of Bitcoin Reversal Pattern

A correction at current levels would likely be healthy for Bitcoin, bringing more interest and demand to the market with more supply to be bought overall.

Bitcoin has never closed more than five consecutive quarterly candles green, however, and the most recent close was its fourth. If the current quarterly candle closes green, chances are the top in Bitcoin could be in.

If things close red, however, the bull run might have another full year left of upward trajectory, once any short-term correction is out of the way.

Featured image from Deposit Photos, Charts from TradingView.com