xbtcusdt Archives

11th August 2022

Market Sentiment Shoots Up As Bitcoin Eyes $25,000

The crypto market sentiment had taken a beating when the price of bitcoin fell to a new cycle low of $17,600. With this, investor sentiment had plummeted to new yearly lows. But slowly, the market sentiment had recovered and made its way out of the extreme fear territory. That is until now when the market sentiment has recorded an enormous push upward off the back of another market rally.

Sentiment Turning Green

The crypto market sentiment has been on an uptrend since the recovery started back in July. When the price of bitcoin first hit $24,000 for the first time since the market trend, the market sentiment had quickly moved out of the extreme fear territory.

Despite the recovery in the market, the market sentiment was still mainly in the red, and the score on the Fear & Greed Index remained low. However, the Wednesday market recovery saw one of the largest jumps for the year 2022. After trending around 31 on the index for most of Wednesday, the score had seen a sharp upward reversal to 41.

This level puts the market sentiment the closest to greed that it has ever been since the crash. It is also a sharp contrast to the score for last week, as well as the overall score for the month of July, which put the market at a 16, deep in extreme fear.

The reversal also shows that investors are beginning to return to the market. Accumulation trends are usually started and strengthened during times such as this, contributing to the uptick in cryptocurrency prices all across the space.

BTC recovers above $24,000 | Source: BTCUSD on TradingView.com
Bitcoin Wants $25,000

Bitcoin’s recovery has been leading it towards one of the most coveted positions in the current market. The $25,000 mark is an important technical level because it was a position which high support that has now turned to a significant resistance point. As such, beating this level is important for bitcoin bulls going forward.

The recent run-up had actually seen bitcoin come dangerously close to reaching $25,000, but the resistance just below it was enough to beat back the bulls. This saw a retracement of about $200 from this point as the bulls continued to regroup.

Bitcoin is still looking incredibly strong on the 4-hour chart, suggesting that there would be another test of $25,000. The accumulation trend going on has been enough to provide good support and bounce-off point for the digital asset, so this retest will likely see bitcoin break $25,000. Although holding the position is another story.

Bitcoin is now trending at $24,500 at the time of this writing. Currently, its price is up 6.29% in the last 24 hours and has remained green for the last two daily closes. A green close for Thursday will signal a top-off point of $28,000.

Featured image from Unsplash, chart from TradingView.com

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10th August 2022

Billionaire Mike Novogratz Says Bitcoin At $30,000 Is Unlikely

Bitcoin price has been a topic of debate since the digital asset first made its entry into the mainstream over a decade ago. With its continued growth, a lot of people have come forward to proffer their predictions for the price of the cryptocurrency both in the long and the short term. One of those is billionaire Mike Novogratz. However, despite being usually bullish on the price of bitcoin, Novogratz does not seem to expect much in the short term.

Bitcoin Unlikely To Reach $30,000

Currently, the price of bitcoin is bouncing between the $23,000 and $24,000 level. This has seen a lot of speculation as regards what will happen when the digital asset is able to break out of this rut finally. For many, the recent recovery has led them to believe that there will definitely be a run-up back to $30,000, where the price had fallen from. However, not everyone seems to share this bullish short-term sentiment, and Novogratz is one of those.

The CEO of Galaxy Digital has been one of the many proponents of bitcoin, investing in the asset both on a personal and professional level. However, with bitcoin’s current trend, Novogratz does not expect a recovery. Mainly, he does not expect the asset to see $30,000.

BTC trending above $23,000 | Source: BTCUSD on TradingView.com

Novogratz explained during an interview with Bloomberg that he fully expected the price of the digital asset to continue to trend between $20,000 to $22,000, not believing that a break above $30,000 is possible with the recent run-up. “I’d quite frankly be happy if we’re in a $20,000 – $22,000 or $20,000 – $30,000 range for a while, with the next move breaking up,” he added.

Factors Dragging Down Bitcoin

There are a number of things that affects the cryptocurrency market and, by extension, the price of bitcoin. Recently, the news of the United States going into a recession has been the catalyst for the recovery trend, but Novogratz believes that the performance of bitcoin continues to be greatly tied to decisions by the government.

The Fed had once again increased interest rates which had affected the financial markets. With the current situation, any decision from the Fed has an impact on the digital asset due to its close correlation with the macro markets at the moment. But Novogratz believes that the Fed will stop raising rates, which is expected to have a positive impact on financial markets.

Despite not believing that the price of Bitcoin cannot touch $30,000 during this run-up, it has not changed the billionaire’s stance on bitcoin. He has previously stated that the price of the digital asset will grow to $500,000. His company also remains committed to its bitcoin strategy, holding a total of 16,402 BTC, making it the public company with the third-largest bitcoin holding in the world.

Featured image from CryptoPotato, chart from TradingView.com

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4th August 2022

Why Bitcoin Investors Should Pay Attention To The Macro Environment

It can no longer be denied that the price of bitcoin is being heavily influenced by the macro environment. The stock market correlation had hit a new all-time high earlier in the year, and the crypto market is yet to decouple from it. Given this, bitcoin investors would do well to react accordingly and pay attention to the stock market for a possible forecast of where the bitcoin price may be headed, and here are some reasons why.

Institutional Investors Are Here

The call for institutional adoption had been loud throughout the last few years, and these big players had actually begun to move into the market. While this had come with a lot of positives for bitcoin, such as increased demand, it had also inadvertently tied bitcoin’s price to the stock market, which these big players are very visible.

The result of this had been a stronger correlation of bitcoin to the trends happening in the stock market. This means that whatever affected the institutional investors in the stock market due to the financial situations had also flowed over into bitcoin. Hence, if the stock market was going down, bitcoin is now more likely to follow it. And what’s more is that bitcoin actually does this with more volatility, causing a larger swing in price compared to the stocks.

Correlation with stock market remains high | Source: Arcane Research

So if institutional investors are forced to sell their stocks, as was recently seen, it also flows into bitcoin. Hence, when there is forced selling in the stock market, there is also forced selling in crypto. So a decline in the stock market means a decline in bitcoin price.

Rising Interest Rates Affect Bitcoin

2022 has put the financial markets through a lot of hurt, and it has gotten worse with the level of inflation being recorded. The Fed has had to come up with new ways to combat this, which has led to a dramatic rise in interest rates.

BTC trading at $23,516 | Source: BTCUSD on TradingView.com

These rising interest rates have been one of the major reasons behind bitcoin’s decline. Recall that the decline in the crypto market had actually started when some big players in the space had failed, but it was further pushed forward when the Fed announced the March interest rate hike that moved the fund’s rate from 0% to 2.25%-2.5%.

This is why paying attention to the macro environment is important to try to predict the future of bitcoin. Given its present correlation with the stock market and how the price had reacted to the hike in interest rates, staying abreast of the movements in the stock market as well as how the Fed is handling interest rates puts an investor in a position to make the best-informed decision.

Featured image from GOBankingRates, charts from Arcane Reseach and TradingView.com

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2nd August 2022

Another Red Daily Close Puts Bitcoin Below $23,000, Is Recovery Expected?

Bitcoin has seen another red daily close after a tremendous rally from last week. This has now wiped off most of the gains made during this time period and has left the digital asset struggling below $23,000 once more. The momentum has quickly died down as the news of the recession settled in. Its viability as an inflation hedge is once more called into question given its performance so far this year.

Is Bitcoin Still A Good Bet?

Bitcoin being an inflation hedge, has been one of the selling points for the digital asset. This is due to its performance on a year-over-year basis compared to other financial markets over similar time frames. Since these financial markets, such as the stock market, have been unable to keep up with the high inflation rate, investors had naturally flocked to bitcoin as yearly returns trumped the inflation percentages.

That is, until a bear market where bitcoin’s performance as an inflation hedge starts to shake. An example is the bear market that is currently being experienced in the market. This decline has seen the digital asset lose about 44% of its value during this time and inflation continues to hit 40-year highs. But on a month-to-month basis, bitcoin has outperformed prominent markets such as the S&P, giving credence to its ability to give reasonable returns even during a bear market.

BTC sees another red daily close | Source: BTCUSD on TradingView.com

Bitcoin has been up more than 20% in the last month, while the S&P is up only 8%. But on a yearly basis, the market is down significantly less than bitcoin at 5.8%. So while bitcoin has shown to be a good bet when it comes to hedging against inflation, it remains a choice for investors with a large risk appetite.

Market Sentiment Points To Recovery

The crypto market crash back in June had sent the market sentiment deep into the extreme fear territory. This would persist for a couple of weeks as the prices of cryptocurrencies struggled to recover their lost value. However, it would quickly change when bitcoin saw a swift recovery in its price back in July.

Bitcoin had made it back above $24,000 once more, and this had sparked faith in the hearts of investors once more. Sentiment had recovered along with the price and towards the end of the month had grown to a high score just below 30 on the Fear & Greed Index. This score still put it in the fear territory but was a remarkable recovery in sentiment nonetheless.

Now, even with the decline, data shows that investors are still maintaining positive sentiment towards digital assets such as bitcoin. One thing that positive sentiment drives are accumulation, and accumulation leads to recovery. Bitcoin just needs to hold above the $22,700 support and close with a higher price for a bounce back above $23,000.

Featured image from Outlook India, chart from TradingView.com

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1st August 2022

Bitcoin Enters August With Losses, Has It Set The Tone For The Month?

Bitcoin has entered into a new month, but its price has not been doing as well as expected. The end of July had indeed come with good tidings as the bitcoin price had broken above $24,000. However, maintaining this point has been a harder task. As the market welcomes the new month of August, bitcoin has not had the best of starts to the new month, entering it with a red daily close.

Bitcoin Going For The Win?

Bitcoin’s recovery over the last week has been propelled forward by different things. The most recent one was the announcement that the United States was now in a recession after recording two consecutive negative GDP growth, causing individuals to find where to park their wealth. Bitcoin naturally provided the perfect hedge for people who were looking to escape the growing inflation, triggering a massive accumulation trend.

Related Reading | Impressive Rally Puts Bitcoin Above $24,000, But Is $28,000 Still Possible?

It had seen the price of bitcoin quickly break multiple important technical levels. The 26th and 27th had been really good days for bitcoin after the digital asset closed both days in the green. But that will quickly change in the next couple of days.

With the new month, bitcoin has now seen its 3rd consecutive daily red close. Now, this is not alarming in any way, given that the digital asset is in a bear market, but it does speak to the performance of the digital asset in the coming days.

BTC falls to mid-$23,000 | Source: BTCUSD on TradingView.com

An example is that if there is no immediate recovery, the decline that will follow will see the cryptocurrency’s price plunge more than it actually gained in its recent recovery. What this means is that a failure to hold this bullish rally could set bitcoin back to the $20,000 love.

Obviously, bitcoin has previously seen significant support at this level and continues to see mounting support at the same point, but it makes no difference if there is not enough buying pressure on the market. Also, as investors rush to take profits over the recent recovery, the selling pressure may overwhelm traders and turn their focus to shorting the market.

Related Reading | New Milestone May Be The Kick Dogecoin Needs To Break $0.1

The digital asset has already lost more than $2,000 over the last two days. It has also declined below its 50-day moving average once more, the same technical level that had been one of the indicators of the bear trend in previous markets.

For bitcoin to establish a bullish trend, it must break above $24,800 and hold this level. Otherwise, there is likely to be a rapid decline in price over the next couple of days.

Featured image from Forbes, chart from TradingView.com

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28th July 2022

Bitcoin Bounces Off Consolidation Range, What Lies In Store?

Bitcoin has been on a steady increase over the last two weeks. It has not been on the uptrend for all of this time, but the majority of the time, the digital asset has maintained this upward trajectory. This has seen it touch above $24,000 at one point after bouncing off its strong consolidation point. Now, as the digital asset trails $23,000, a couple of technical levels have begun to form beneath it.

Bitcoin Begins To Form Support

Bitcoin has broken above $23,000 once more, and support has begun to form. After previously losing its footing and falling to $21,000, the digital asset had seen support pushed down to $19,000, but this would change soon after. As bitcoin continues its uptrend, it is now looking at support at $21,000, much stronger than previously established.

Related Reading | Bullish Sentiment Spills Over To Institutional Investors As Ethereum Inflows Balloons

However, for the digital asset to continue on this bull rally, it would need to break some important technical levels. The first would be the $25,000 range, where the most resistance is currently being mounted. A widespread accumulation trend would be the only likely fuel to break through this level. After which, the nearest resistance would be formed at $28,000 due to it being the lowest point for the 2021 cycle.

BTC continues recovery trend | Source: BTCUSD on TradingView.com

On the other side of this, the digital asset still has some potential to fall back down. This would put it in the direct path of the $21,000 support, but this is unlikely to hold for the long term. The next significant support level would fall to $19,700, which represents the peak of the 2018 bull cycle. Hence, the support put up here would be strengthened compared to that at $19,000. But if this fails to hold, $17,600 would present to be the next important level due to being the current cycle low.

Related Reading | Ripple (XRP) Is Up 190% From Cycle Low, But Will It Ever Reach $3?

For now, as bitcoin climbs up, it is still expected to meet resistance at $24,000, which was the point it failed to beat last week. This makes it the most immediate threat for bulls in the quest to retake $30,000. This point determines if bitcoin would be able to break above the 50-day moving average, which would determine a bearish or bullish trend for the short term.

Sell-offs remain the major thing that is pulling back the value of bitcoin, though. While the short term is beginning to turn in favor of buy, the long-term outlook still poses a sell for investors. These sell-offs, which are yet to reach a fatigue point, are most likely the culprit behind bitcoin’s inability to breach $24,000 successfully.

Featured image from The Financial Express, chart from TradingView.com

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22nd July 2022

Funding Rates Return To Neutral Following Bitcoin Relief Rally

Bitcoin funding rates had seen a very negative month between mid-June and mid-July. The funding rates, which had previously remained muted, quickly declined below neutral and proceeded to spend the next one month on this level. However, there is a significant change as last week saw funding rates return to neutral.

Funding Rate Recovers On Exchanges

The bitcoin funding rates had been touching low points as the price of the digital asset struggled. This was concerning given that funding rates were expected to improve as the digital asset began to basically trade at what was described as a “discount.” This would not be farther from the truth, as funding rates fell to their lowest points this June. It indicated that perp traders were still bearish on the cryptocurrency and refrained from moving in.

Last week would come with good news as funding rates returned to neutral and stayed there. Binance and Bybit crypto exchanges both recorded funding rate levels of 0.01%. The return to neutral came as the price of bitcoin started a relief rally that saw it break above $23,000.

Funding rates return to neutral | Source: Arcane Research

Open interest had also followed the same route, although it retraced during the week when the price fell once more. It showed that there is still a lot of leveraging going on in the market since the bitcoin open interest was not much different from what was recorded the prior week, even with the decline.

Bitcoin Traders Turning Bullish

The recovery of bitcoin funding rates to a neutral level is a testament to the returning positive sentiment among traders and investors. It definitely does not signal that the market has returned to its previously bullish phase, but it is an indication that investors are now looking favorably at the bitcoin and crypto market at large.

BTC retraces downwards | Source: BTCUSD on TradingView.com

It tracks along with the Fear & Greed index which has now moved out of the ‘Extreme Fear’ territory for the first time in almost three months. It saw an incredible bounce from last week’s sentiment, with a score of 18 putting it in extreme fear. Although the market is still fearful, the recovery is seeing faith return to the market. It is also evidenced in the buying pressure that has been building this week.

The correlation of the funding rates with the price of bitcoin can either be good or bad from here on out, depending on how well the cryptocurrency performs in the market. If it continues its recovery trend, then funding rates may return above neutral for the first time in more than two months.

Featured image from CNBC, charts from Arcane Research and TradingView.com

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21st July 2022

Bitcoin Miner Revenues Continue To Plunge, But Will The Rally Change This?

Bitcoin miner revenues have been plummeting ever since the price of BTC peaked back in November. This has put miners in a tight spot, causing a good number of them to sell their BTC holdings in order to keep financing their operations. The same was the case for last week, where miner revenues were once again in the red. However, as the tide begins to change in the crypto market, there may be light at the end of the tunnel for miners.

Miner Revenues Down 4%

For the past month, daily miner revenues have been trending above $18 million but continued recording losses with each passing week. Last week would put an end to this trend when miner revenue fell once again, this time by 4.03%, causing average daily revenues to drop below $18 million. Reports show that miners saw an average of $17.7 million in revenues, more than 60% down from its peak back in November.

What followed this was a sell-off from bitcoin miners across the space. As the profitability plummeted, more BTC had to be offloaded by miners to provide cash flow for their operations. In June alone, miners had sold off 25% of their holdings, and with the prices remaining low, reports for July are expected to show even higher sales for the month of July.

For the last two months, bitcoin miners have been selling more BTC than they were producing. For the month of May, they had sold more than 100% of the BTC produced. This number had jumped 400% in June when public miners sold approximately 14,600 BTC when they had only produced a total of 3,900 BTC, accounting for 25% of all of their holdings.

BTC drops to $22,700 | Source: BTCUSD on TradingView.com

Surprisingly, fees per day were up 12.61% last week, which brought the percentage of revenue gotten from fees to 2.59%, a 0.38% increase from the prior week.

Will The Bitcoin Rally Help?

The recent rally in the market has seen the price of bitcoin reclaim key technical levels and reach one-month highs. The digital asset had even briefly touched above $24,000 before trending back down, and the first half of the week had been green for the digital asset.

Since the profitability of bitcoin mining is directly tied to the price of the digital asset, it is safe to assume that there may be some uptick in miner revenues for this week. Given that price was trending around $19,000 for most of last week, an increase above $22,000 will see public bitcoin miners realize more revenue from their mining operations.

However, given that the price had not recovered by a wide margin, the rise in daily miner revenue is expected to remain under double-digits. It is also important to note that there is more demand for block space, leading to higher transaction fees on the network, contributing more to the daily miner revenues.

Featured image from GoBankingRates, chart from TradingView.com

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4th July 2022

Mounting Support For Bitcoin At $19,000 As Market Ushers In A New Week

Bitcoin has come out of the weekend with less than favorable performance but it has not been all bad for the digital asset either. After falling below $20,000, it trended low towards the end of last week. However, the cryptocurrency has been able to hold the $19,000 level despite efforts from the bears to pull it down. This has been due to a number of factors but most importantly is the support that has been forming at this level.

Support At $19,000

After struggling to hold above $19,000 for most of last week, the digital asset had subsequently found its footing above $19,000. This price point is important for bitcoin given that it was where its previous cycle peak had occurred. Although it had actually broken below this point multiple times this year already. However, with the recovery above 19,000 once, the bulls look to have found their spot and the support at this level has been growing.

Related Reading | Leading Crypto Exchanges See Negative Funding Rates, Have The Bears Taken Over?

It is propelled forward by bitcoin investors who are taking this as a cue to buy the digital asset for cheap. Mostly, whales have been the most active during this time even amid the extremely low investor sentiment. These whales who are purchasing their tokens on spot continue to fill their bags.

Data shows that these wallets that hold more than 1,000 BTC on their balances have added 140,000 BTC per month, which has brought their total holdings to 8.69 million BTC. This means that these bitcoin whales now hold 45.6% of the total circulating supply.

BTC continues recovery trend | Source: BTCUSD on TradingView.com

The whales are not the only ones buying up bitcoin. Smaller holders with less than 1 BTC have also ramped up their activities by buying at these prices. They have added to their balances at a rate of 36,750 BTC per month, bringing their total holdings to 1.12 million BTC, or 0.2% of the circulating supply.

Will Bitcoin Continue To Hold?

As of the early hours of Monday, bitcoin had begun another recovery trend that has put the price above $19,300. Although not a significant recovery by any stretch, it has put the digital asset on a green start to the new week.

Related Reading | New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

Nevertheless, the digital asset continues to trade below important technical levels such as the 50-day movie average. Due to this, the chances of bitcoin holding the recovery trend through the rest of the week remain slim as there is not enough demand to offset the coins being dumped by the sellers.

This means that while the price will likely recover above $19,500, there may be another downtrend before the day is over. This will put the mounting support at the $19,000 level to the test. But if bitcoin can continue to hold and the market sees a significant spike in demand, the next major resistance awaits the cryptocurrency at $20,500.

Featured image from FortuneBuilders, chart from TradingView.com

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7th June 2022

Bullish: Bitcoin Marks First Green Weekly Close After Two Months In The Red

Bitcoin has been marking multiple weeks of consecutive red closes. This has been the case for the last two months when the leading cryptocurrency had seen 9 consecutive weeks of red closes. Unsurprisingly, this had pained a very bearish image for the digital asset. However, it seems the tide has begun to turn as bitcoin has now ended its streak. A break above $30,000 in the early hours of Monday put BTC in its first weekly close in more than two months.

Better Days Ahead For Bitcoin?

While the price of bitcoin has been in recovery, it does not exactly erase more than two months of bearish trends. This first green in a long line of reds does not automatically trigger a bull trend for the digital asset. What it does, however, is show that investor sentiment is starting to turn for the better. No doubt the sellers will continue to dominate the market for the better part of the next week but an uptick in positive inflows is expected from here.

Related Reading | Brace For Impact: Bitcoin Miners Have Begun Dumping Their Holdings

Bitcoin has not had a green weekly close since the month of March. Even before then, sentiment had turned for the worse. This continues into the new week as the Fear & Greed Index is currently sitting at 13, putting it in extreme fear. BTC’s rise above $32,000 last week had worked to help ease the fear in the market but negative sentiment had returned once more with the crash below $29,000.

BTC settles above $31,000 | Source: BTCUSD on TradingView.com

What is expected from here on out is shaky movements for BTC. The digital asset needs to secure a position above $35,000 for it to be considered back on another bull trend. However, multiple significant resistance points lie ahead for the cryptocurrency.

What Exchange Inflows Say

Bitcoin exchange inflows mirror the positive sentiment that is returning to the market. Data from Glassnode shows that for the last day, there have been $6.6 billion in BTC moving into exchanges while $7.9 billion has been moved out. This works out to a negative net flow of -$1.3 billion, signaling that more investors are moving towards accumulation instead of outright sell-offs.

Weekly On-Chain Exchange Flow #Bitcoin $BTC $6.6B in $7.9B out Net flow: -$1.3B#Ethereum $ETH $3.3B in $3.2B out Net flow: +$108.6M#Tether (ERC20) $USDT $3.4B in $4.2B out Net flow: -$781.3Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) June 6, 2022

Related Reading | El Salvador Postpones Bitcoin Bonds A Second Time, Here’s Why

Bitcoin remains a long way off from its all-time high and indicators point to recovery to that ATH value being years away. Nevertheless, for the short-term, the price of bitcoin is poised to hold up against bears. Since the majority of BTC investors are still in profit, it is not expected that the sell-offs will die off anytime soon though. But it is nearing an exhaustion point.

Featured image from The Cryptonomist, chart from TradingView.com

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26th August 2021

ARK Invest CEO: Bitcoin In “Capitulation Phase,” Still Set For $500k

Bitcoin is still up in price despite the recent dips and the predictions have not slowed down. If anything, they have become even more prominent. Famed CEO of ARK Invest Cathie Wood has always been bullish on Bitcoin. The CEO earlier in the year had given what some would call an optimistic prediction for the asset. But to Wood, this is not too optimistic. When asked about her prediction, Wood explained that she and her firm still stand by the prediction.

Cathie Wood’s earlier prediction had seen the CEO putting a future forecast for the asset’s price at $500,000. Pointing to market indicators, Wood pointed that they “are all suggesting that we are in a capitulation phase, which is a really great time to buy. No matter what the asset is.” This shows that regardless of Bitcoin’s current price tag, the CEO still sees it as a buying opportunity.

Related Reading | Why An 18% Drop In Bitcoin Could Still Be Bullish

Doubling Down On The Prediction

Wood told Bloomberg in an interview that the firm continues to stand by its conviction for the future of the digital asset. The high future price prediction does not seem to phase the CEO, neither does the current price.

While bitcoin levels are currently on the high side, it is no secret that the digital asset price is still a long way from reaching $500,000. Nonetheless, Cathie Wood still stands by this prediction. When asked about the prediction, the CEO said, “Yes, our conviction is as high.” In reference to the work done by her firm’s crypto analyst, Wood said of the forecast, “We do. I do,” when asked if she and her firm still stands by the forecast.

BTC price trailing along $47K | Source: BTCUSD on TradingView.com

Wood also took time out to comment on the environmental impact of bitcoin mining. “The one thing that has changed here, however, is the environmental concerns around bitcoin, in particular, have caused people like Elon Musk to pull away and say, ‘Woah, let me make sure I understand this.’” This is in reference to Musk’s company Tesla removing the option to pay with bitcoin, after only implementing it about a month prior, citing environmental impacts of the mining as the major reason.

ARK Invest Bitcoin Investment.

Wood’s firm ARK Invest has vested interest in the infamous Grayscale Bitcoin Trust. At the time of this writing, the firm currently owns more than 7 million shares in the trust. The firm has slowly increased its stake in the trust over time. A month ago, ARK Invest bought 2.14 million shares again in the trust, putting in another $10.8 million into Grayscale.

Related Reading | Puell Multiple: The Bitcoin Metric That Says BTC Miners Aren’t Ready To Sell

CEO Cathie Wood is well-known for taking risky bets with investing, which usually have worked out in the favor of her clients. So it is no surprise that Wood has turned her attention to an asset considered a risky bet. But for all intents and purposes, Wood is not investing in Bitcoin for the short term. Rather, the firm is in it for the long term, as Wood sees the asset going up as high as $500,000 in coming years.

Featured image from Verdict, chart from TradingView.com

12th August 2021

Bitcoin AT $46K, Will The Market See $50K Before The Next Bear Market?

Bitcoin is roaring right now price-wise. The price of the coin shows no signs of slowing down following the price rally from the past three weeks. Every time it seems like there is a slowdown, the price picks up again, breaking new resistance points that had before held it back. The run-up from a price range of the low $30,000 has now seen the digital asset price break into the $46k territory.

Despite what might be a slowing down, the digital asset has not lost its position. Rather taking small steps in either direction but ultimately maintaining its position on the charts. $46,800 still remains the price to break at this point, as bitcoin continues to shy away from hitting it.

Related Reading | Crypto Market Cap Inches Closer To $2 Trillion, What To Expect From The Market

Bitcoin Over 24 Hours

Bouncing between $45,000 and $46,000 has been the order of the day for the past 24 hours. Growth patterns showing bounce patterns that would most likely end up charging either direction, up or down. The bulls continue to have the superior hold on the price, with bitcoin having closed out in the green 15 days out of the past 22 days.

Bitcoin post 3.38% gains in 24 hours | Source: BTCUSD on TradingView.com

Gains continue to be the order of the day. The price of the digital asset is mostly higher each day than the last, sending crypto portfolios into the green after two brutal months of soul-crushing red markets.

Bitcoin price has grown 3.38% in the last 24 hours. Amounting to over a $1,000 price change in the asset in the span of a day. Although the charts haven’t been completely green this past day. A dip saw the price of the digital asset plunging towards the low $45,000. But this would prove to be just a blip since the asset recovered and went up in the $46,000 range.

Momentum Continues To Hold Up

This momentum is the kind that could see the price of BTC ricocheting off the charts following a bounce, sending the price of the coin barreling towards $50k. But the price could just as easily crash back down to set the market back into a stretched-out bear market.

It is crucial to maintain momentum following the increase in the price of an asset. Because any lapse in momentum would just as easily send the price crashing back down to where it was coming from. Sometimes even lower than the beginning points of the rally.

Related Reading | Bitcoin Price Breaks $45,000 For the First Time In Over 2 Months, Is $64,000 Possible Again?

If this momentum holds up, then indicators point that the market will most likely hit $50k before there is any significant dip in the price of bitcoin that would put the market in bear territory.

The price movements continue to fuel larger-than-life bitcoin price predictions, with analysts believing that the digital asset is bound for $100k by the end of the year. Even though a $50k price point would be a more realistic prediction, these $100k predictions are not without their merits.

Featured image from The Independent, chart from TradingView.com