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This Bitcoin Metric Hints at Bottom, Is BTC Out the Woods?

Grant

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Bitcoin has chosen violence. The first crypto by market cap trades at $57,873 with a 3% loss in the daily and an 11.2% loss in the weekly chart.

BTC on a downtrend in the daily chart. Source: BTCUSD Tradingview

After making a push close to $60,000 Bitcoin was rejected and has trended to the downside for the past 2 hours. The benchmark crypto might have reacted to the potential re-appointment of the U.S. FED Chair Jerome Powell to his position for a second term.

Related Reading | This Bitcoin Metric Hints At Bottom, Is BTC Out The Woods?

Data from Material Indicators suggest the move to the upside was driven by investors with orders with an estimated value above $1 million (whales). As seen in the chart below, these investors, along with retail investors and others with bid orders above $1,000 sold as soon as BTC’s price reached $59,000.

FireChart BTC/USD Source: Material Indicators

As the chart shows, there is almost no resistance or support for Bitcoin at the levels. To the downside, significant supports (below the blue line, BTC’s price, in the chart) sit at around $55,000, and to the upside, $60,000 stands as the biggest resistance (above the blue line in the chart) for BTC’s price in the short term.

According to data from Glassnode, the Short-Term Long Term Realized Valued (SLRV) for Bitcoin is back to below 0.4. As seen in the chart below, whenever BTC’s price hits these levels, the cryptocurrency tends to appreciate.

Related Reading | Bitcoin Bounces To $58K, Why Bears Could Spill More Blood

Pseudonym analyst On-Chain College commented the following on what this indicator suggests for Bitcoin in higher timeframes:

What I find most interesting is the relationship of this ratio between now and the run up earlier this year. Notice the SLRV Ratio rising as price rose in the beginning of this year vs. a steady decline/consolidation as price rose a few months ago… Bullish

Bitcoin Still On A Moon Mission?

Despite the recent downwards price action, Bitcoin’s fundamentals remain bullish. Additional data provided by Glassnode noted an increase in the number of addresses with an estimated balance above $0.

This metric indicates a rise in adoption most likely triggered by the approval of the Bitcoin Law in El Salvador and the growth and its second-layer solution Lightning Network. Since BTC’s price made a run from its yearly open ($29,000) to an all-time high ($69,000), the market became overheated.

The approval of the first BTC-linked ETF in the U.S. didn’t contribute to the above with the derivatives sector recording an increase in positive funding rates. This metric has returned to a neutral state after BTC’s recent crash.

Related Reading | Bitcoin Resumes Decline, What Could Trigger More Downsides

However, experts believe that BTC still needs to flash out the short-term holders and speculators before re-entering price discovery. NewsBTC’s Editorial Director Tony Spilotro expects Bitcoin to retest support around $56,000 in the short-term following a similar pattern that in September before BTC broke away from a previous range and above $65,000 for the first time since its inception.

BTC dancing on support in the 4-hour chart. Source: Tony Spilotro via TonyTrades BTC Trading Channel

Article: newsbtc.com

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Will Ethereum Classic’s Bearish Trend Ever End?

Grant

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Ethereum Classic (CRYPTO: ETC) is trading higher Monday, moving higher in a crypto market that is trading slightly higher as a whole.

Ethereum Classic has been in a strong downward trend for the last few months and has not yet shown signs it is making a reversal.

Ethereum Classic was up 2.45% at $25.53 at last check.

See Also: Why Ethereum Classic Could Soar 30% On A Break From This Pattern

Ethereum Classic Daily Chart Analysis

Since the break below the $40 support line, Ethereum Classic has been steadily trending down. The strong downward trend can be shown by the …

Full story available on Benzinga.com

Original Source: benzinga.com

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Why Shopify CEO Tobi Lütke Is Joining the Coinbase Board

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Coinbase Global Inc. (NASDAQ: COIN) recently added the CEO of one of the largest e-commerce brands to its board.

What happened: Coinbase added Shopify Inc (NYSE: SHOP) CEO and co-founder Tobias “Tobi” Lütke to its board, the Block reported on Monday.

Coinbase CEO and co-founder Brian Armstrong said that Lütke is one of the first crypto adopters “through Shopify’s integration with Coinbase …

Full story available on Benzinga.com

Source Here: benzinga.com

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Bitcoin Bears to Resume Assault? Why BTC Could Crash to $33K

Grant

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Bitcoin has been trading around its current levels for several days, leading to an apparent shift in sentiment across the crypto market. As BTC’s price trend to the upside after the U.S. Federal Reserve FOMC meeting, there seems to be an increase in optimistic on the crypto market.

Related Reading | TA: Bitcoin Faces Hurdle, Why BTC Could Resume Downtrend

In the short term, our Editorial Director Tony Spilotro has identified a TD Sequential buy signal on the 12-hour chart. As seen below, he highlighted a 13-buy setup with a trend to the downside which has been identified for some market participants as a bear flag.

Source: TonyTrades BTC via Telegram

On this timeframe, larger investors could be “baiting” retail into trading the bear flag. However, the TD Sequential suggest these investors could be entering a trap, as it suggests a short squeeze which could play out as soon as today’s daily close, according to Tony’s analysis.

Data from IntoTheBlock records major resistance level for Bitcoin bulls between $37,500 to $38,500. There are over 822.210 BTC which were purchased by 1.06 million addresses which could be seeking to take profit. A successful break above these levels could push BTC back to the $42,000 price mark.

Source: IntoTheBlock via Ali Martinez (Twitter).

Investment firm QCP Capital supports the short squeeze thesis due to the extend of the current bearish price action. The firm presented two key reasons on why Bitcoin and the crypto market could see a relief in February.

First, the U.S. FED has a “light agenda” for the coming month until 17 March. On this date, the financial institution could announce a decision on interest rates and a change in monetary policy. However, a 25 basis points (bps) seems to be priced in.

This could contribute with a relief in the crypto market, unless the FED decides to implement a more aggressive monetary policy. In any case, March could mark a turning point for Bitcoin and traditional markets, as investors will have their eyes on the FED.

The Long-Term Perspective For Bitcoin, More Downside Likely?

Historically, QCP Capital Noted, February has been a bullish month for Bitcoin which records over 10% in average profits since 2015, with exception of 2020. The bearish price action at the time could have been driven by the COVID-19 pandemic which eventually also contributed with that year’s rally.

However, the firm expects 2022 to be a tough year for the crypto market due to significant macro-economic factors, mainly the actions to be adopted by the U.S. FED. The time at which these changes will be implemented, remain the most important factor and will have an important impact for either bulls or bears. QCP said:

(…) while we think a short-term squeeze higher is likely, we are not overly optimistic for 2022. We remain of the view that crypto prices will remain under pressure and struggle to break the all-time highs this year (…). Any indication of QT (Quantitative Tightnening) starting earlier than expected would be taken very badly by the market.

Related Reading | Go With The FED, Why Bitcoin Could Benefit From Interest Rate Hikes In 2022

As of press time, Bitcoin trades at $37,800 with sideways movement in the past 24 hours.

BTC with some small profits in the daily chart. Source: BTCUSD Tradingview

Original Source: newsbtc.com

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