Category Archives: Bitcoin
Weekly Recap: Bitcoin and Ethereum Trigger Mass Liquidations – FX Empire
But during the week of October 23rd, it appears that cryptocurrency enthusiasts decided to follow the herd.
Bitcoin kicked off the week trading at a low of $18,437, and while prices consolidated throughout the following 28 hours, investors began to enter a state of FOMO. Market participants seem to have feared to miss the chance for another leg up that will send BTC towards $25,000. As a result, a significant number of buy orders were recorded across multiple cryptocurrency exchanges on November 24th that pushed prices up nearly 6%.
As the flagship cryptocurrency surged to a new yearly high of $19,500 on November 25th, some of the so-called whales were selling their holdings. The sudden spike in selling pressure triggered a long squeeze across the board. Consequently, Bitcoin took a 17% nosedive to hit a low of $16,200.
On its way down, on-chain data shows that roughly 200,000 traders betting to the upside were liquidated. Losses accounted for more than $2 billion in long positions. Despite the significant downward price action, Bitcoin partially recovered during the last two days of the week.
Prices rose over 5%, and BTC closed Fridays trading session, November 27th, at $17,000. Bitcoin holders incurred a weekly loss of 7.74%.
Like Bitcoin, Ethereum also kicked off the week of November 23rd on a good posture. Its price entered Mondays trading session at a high $574 and quickly continued rising. It seems like the break of an ascending triangle on November 20th was significant enough to allow the upward momentum to spill over the next few days.
As speculation mounted around the Ethereum Foundation reaching the threshold to roll out the most anticipated ETH 2.0 upgrade, market participants bought into the narrative. The spike in demand allowed Ether to surge to a new yearly high of $620. But as prices peaked at this level, the Tom Demark (TD) Sequential indicator presented a sell signal on the 4-hour chart indicating that a pullback was going to occur.
Those who were able to spot the bearish formation in time were lucky since what followed was a 23% correction. Ethereum saw its price plummet from a high of $620 on November 24th all the way down to a low of $480 on November 26th. Despite the significant losses, stablecoins began to flood exchanges as prices were collapsing.
More than 720 million USDT, 230 million DAI, 85 million BUSD, and 317 million USDC were transferred to known exchange wallets. The uptick in stablecoins exchange inflow suggested that sidelined investors were preparing to buy the dip. The increase in buy orders helped Ethereum recover some of the losses incurred to close Friday, November 27th, at $517.
Ethereum holders incurred saw their portfolios shrink by 10.13% during the week of November 23rd.
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Weekly Recap: Bitcoin and Ethereum Trigger Mass Liquidations - FX Empire
Russia to Recognize Bitcoin as Property With Legal Protection | Regulation – Bitcoin News
The Russian prime minister has outlined the governments plans to amend existing laws to recognize cryptocurrency as property. This means bitcoin owners will have the legal rights to defend and recoup their cryptocurrencies in court.
During the government meeting on Thursday, Russian Prime Minister Mikhail Mishustin talked about Russias plans for cryptocurrency regulation alongside other initiatives to fight against the spread of the coronavirus pandemic.
After outlining several solutions the Russian government has come up with, Mishustin said, Another solution concerns cryptocurrencies. He added that This is a relatively new tool, interest in which is constantly growing.
The Russian prime minister continued: The government plans to direct the development of this market in a civilized direction so that the owners of such assets can protect their rights and interests, and the creation of shadow schemes would be difficult. In order to achieve this, Mishustin said, Lets make a number of changes to the tax code, elaborating:
Digital financial assets will be recognized as property, and their owners will be able to count on legal protection in the event of any illegal actions, as well as defend their property rights in court.
Although there have been discussions among lawmakers to treat bitcoin as taxable property, it is not yet official. Different courts have, therefore, made their own decisions whether to recognize the cryptocurrency as property. In July, a Russian court denied a crypto owner the return of his cryptocurrencies, including bitcoin. The court judged that since bitcoin was not considered property under Russian law, its theft was not a crime. In December last year, the supreme court ruled that tokens were assets like money and property.
Russia will begin regulating cryptocurrency next year; President Vladimir Putin signed the crypto bill into law in August. However, Russian lawmakers are still trying to add to the bill.
In November, the Ministry of Finance developed new amendments to the crypto regulation, introducing new rules and penalties for unreported and underreported cryptocurrencies. Meanwhile, the Bank of Russia is seeking public comments on the central bank digital currency (CBDC), the digital ruble.
What do you think about Russia recognizing bitcoin as property? Let us know in the comments section below.
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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Bitcoin, Ethereum, Ripples XRP, Litecoin And Chainlink Suddenly Bounce Back – Forbes
Bitcoin, ethereum, Ripple's XRP, litecoin and chainlinkfive of the biggest cryptocurrencies by valuehave bounced back from a sell-off this week.
The bitcoin price climbed to over $18,000 per bitcoin after crashing to around $16,000 on Thursday as ethereum, Ripple's XRP, litecoin and chainlink recorded even wilder swings.
The bitcoin price has surged through November, boosting smaller cryptocurrencies ethereum, Ripple's ... [+] XRP, litecoin, and chainlink.
The upswing has been led by XRP, which added over 10% over the last 24 hours, with bitcoin, ethereum, litecoin and chainlink climbing around 5%.
The combined bitcoin and cryptocurrency market value has swung by around $100 billion this week after bitcoin brushed its 2017 all-time high of almost $20,000.
The sell-off, which saw bitcoin lose 10% of its value in a matter of hours, was taken as by many bitcoin and cryptocurrency market watchers as temporary correction.
"Crypto prices can show sharp fluctuations, so the main thing to know is that this stage was needed to continue the rally," Alex Kuptsikevich, FxPro senior financial analyst, said via email.
"Technical indicators have been in the extreme overbought territory for too long. The rally started to choke up on the way to $20,000. This is a very serious psychological and technical level of resistance for the market, and there was no doubt that this obstacle would test investors' optimism."
The bitcoin price has rallied back over $18,000 per bitcoin after a sell-off earlier this week ... [+] caused it to fall to around $16,000.
Bitcoin has added almost 40% through November, pushed on by its growing reputation as digital gold, interest from big banks on Wall Street and a raft of high-profile investors naming it as a potential hedge against inflation.
The bitcoin rally, sparked by news payments giant PayPal PYPL planned to add bitcoin buying and spending services, caused smaller cryptocurrencies, including ethereum, Ripple's XRP, litecoin and chainlink, to soarwith XRP adding 150% this month alone.
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Bitcoin, Ethereum, Ripples XRP, Litecoin And Chainlink Suddenly Bounce Back - Forbes
Fighting Definancialization: Cryptologic Methods Like Bitcoin Could Protect Wealth From the Great Reset | Featured – Bitcoin News
The Great Reset agenda is trending once again on social media, numerous news outlets, and a variety of online forums. During the last few months, the Great Reset proposal has been pushed worldwide, as it allegedly seeks to create a sustainable economy following the coronavirus pandemic. Meanwhile, a great number of people are skeptical of the reboot proposal, as detractors believe the Great Reset is an assault against capitalism and basic financial liberties.
A myriad of individuals and news organizations have been discussing the Great Reset, a proposal that was first introduced by the World Economic Forum (WEF) and the and WEF director Klaus Schwab. News.Bitcoin.com has published a few editorials about the subject and some of the events that are seemingly pushing the Great Reset closer toward reality. Moreover, our newsdesk also looked at the pushback against the reset movement and why people believe the proposal is a steadfast plan to usher in a new world order.
The topic is still trending heavily on social media and forums as a great number of skeptics are wary of the reboot concept. It is being said that the Covid-19 pandemic and subsequent lockdowns are all part of the reset plan to keep the populace submissive. Great Reset detractors also believe that the proposal is an attack on free-market enterprise, and it is also leveraging climate change fear to push the agenda.
For instance, Breitbart columnist James Delingpole tweeted about the Great Reset after the former Prime Minister of the United Kingdom, Boris Johnson talked about carbon emissions in Colombia. Delingpole said:
You absolutely disgusting imbecile. We want our jobs, our businesses, our economy back not your Great Reset.
Delingpole is not the only columnist speaking out against the Great Reset agenda. Cindy Simpson from the publication, American Thinker, has also been tweeting about the subject with skepticism. After New Mexicos government shut down groceries stores for two weeks, Simpson said: Step by step, weeks to months, the lockdowns are teaching citizens that theyre really just subjects, totally dependent on the statethe perfect, submissive new normal condition to enable the Great Reset.
Meanwhile across Europe, Britain, Canada, the United States, and many other nations Covid-19 lockdowns are ramping up again. U.S. President-elect Joe Biden has been telling the press that he will mandate masks nationwide and his advisor says he plans to enact a six-week Covid-19 lockdown.
Podcaster Aubrey Huff told his 239,000 Twitter followers that the ultimate plan is to forcefully usher in socialism. The plan with this overblown virus [and] tyrannical lockdowns has always been to make small businesses, [and] middle-class families broke, [and] desperate, Huff tweeted. Why? So that they will have no choice but to accept socialism. In response to Huffs Twitter statement, many of his followers discussed the Great Reset.
Basically, the Great Reset consists of a threefold effort that starts with a stakeholder economy, which aims to circumvent economic inequality. The second component is making sure all investments created in this new economy bolster sustainability and equality. Lastly, the third part of the agenda consists of strengthening the Fourth Industrial Revolution. WEF director Klaus Schwab gives insight into this concept by stating:
The third and final priority of a Great Reset agenda is to harness the innovations of the Fourth Industrial Revolution to support the public good, especially by addressing health and social challenges. During the COVID-19 crisis, companies, universities, and others have joined forces to develop diagnostics, therapeutics, and possible vaccines; establish testing centers; create mechanisms for tracing infections; and deliver telemedicine. Imagine what could be possible if similar concerted efforts were made in every sector.
Of course, anyone who complains that the Great Reset is an assault against the free market and civil liberties is called a conspiracy theorist. For instance, the Wikipedia page that is dedicated to the Great Reset proposal discusses the controversy and immediately calls the theories unfounded.
[The Great Reset] has been criticized for using the pandemic to implement a risky experiment and a petition to stop it gained 80,000 signatures in less than 72 hours, the Wikipedia article says. A baseless conspiracy theory has spread in response, claiming it will be used to bring in socialist and environmental changes and a supposed new world order, the Wikipedia editor adds.
Despite the deflection, many journalists are discussing the theory more regulary and noting that the skeptics conspiracies might be legitimate. For instance, on November 27, the National Review columnist Andrew Stuttaford wrote an editorial about the subject and called it: The Great Reset: If Only It Were Just a Conspiracy.
Stuttaford says that the Great Reset is merely just calling corporatism another name. The author details a great number of corporate partners who are backing the Great Reset proposal such as firms like Deloitte, Apple, Microsoft, Ericsson, Lockheed Martin, IKEA, Facebook, and IBM. Moreover, Stuttaford authored a previous article that describes what corporatism is and how it dodges individualism for the collective.
[Corporatism is a] hydra-headed ideology with origins in the premodern, and a very mixed past sometimes benignly (it influenced the formation of West Germanys social market economy) and sometimes not (it was an important element in pre-war fascist theory), Stuttaford explains. The different forms corporatism has taken make it tricky to define with precision, but they share a common core: the conviction that society should be organized by and for its principal interest groups lets call them stakeholders intermediated by, and ultimately subordinate to, the state. The individual does not get a look in, the National Review contributor added.
Stuttafords column concludes by saying that society has been hearing about this vision for a long time using many variants. Fringes like climate change, stakeholder capitalism, and definancialization have taken the center stage worldwide, and not only in front of the Davos crowd, Stuttaford insists.
Numerous free-market advocates including cryptocurrency proponents believe the Great Reset is an immoral concept and technologies like bitcoin are meant to defend peoples wealth from definancialization. For years now sound economists, libertarians, and free-thinking individuals have warned the masses about the globalist elite pulling dirty tricks.
The original cypherpunks knew, that while the internet was and still is being leveraged for mass surveillance, the world wide web and certain technologies like encryption and digital cash could help bolster privacy and financial liberties. Back in 1988, the software engineer Timothy C. May discussed how technology will help stop totalitarian nation-states and corporate entities from interfering with the sovereign individual. May said:
Just as the technology of printing altered and reduced the power of medieval guilds and the social power structure, so too will cryptologic methods fundamentally alter the nature of corporations and of government interference in economic transactions.
While globalists push their unwanted agendas, in time privacy advocates and crypto-anarchists will create a liquid market for all material, May insisted. And just as a seemingly minor invention like barbed wire made possible the fencing-off of vast ranches and farms, thus altering forever the concepts of land and property rights in the frontier West, May stressed. So too will the seemingly minor discovery out of an arcane branch of mathematics come to be the wire clippers which dismantle the barbed wire around intellectual property.
What do you think about the theories surrounding the Great Reset proposal and the skeptics who are against it? Let us know what you think about this subject in the comments section below.
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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Fighting Definancialization: Cryptologic Methods Like Bitcoin Could Protect Wealth From the Great Reset | Featured - Bitcoin News
Some Investors Predict Bitcoin to Hit $100,000 in a Year – VOA Learning English
Some bitcoin investors predict the virtual currency could rise to as high as $100,000 in a year. That is around five times its current value.
The predictions have drawn criticism from those who believe bitcoin is a speculative asset something a person or company owns that involves too much financial risk.
Predictions and popularity
Since January, bitcoin has increased by 160 percent. It is getting close to its all-time height of just under $20,000 in December 2017. It was last trading at $18,415.
Brian Estes is chief investment officer at Off the Chain Capital. It is a hedge fund - a group of investors who take financial risks together in order to try to earn a lot of money.
Going from $18,000 to $100,000 in one year is not impossible, Estes noted. I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal.
Estes predicts bitcoin could hit between $100,000 and $288,000 by the end of 2021.
Tom Fitzpatrick, an expert at international banking group Citi, said in a note last week that bitcoin could climb as high as $318,000 by the end of next year. Fitzpatrick said the rise could come because of the currencys limited supply, ease of movement across borders, and unclear ownership.
However, those numbers do not make sense to Toronto-based Kevin Muir, an independent trader. He says he does not expect such huge gains for bitcoin.
Is it plausible?" Muir said. For sure. Its a mania. Mania is an extreme excitement or desire for something that is usually shared by many people.
But Muir added that no one really has a clear idea about how high bitcoin will go.
Shortage
Bitcoin relies on so-called mining computers that approve or confirm groups of transactions. The computers compete to solve mathematical puzzles every 10 minutes. The first to solve the puzzle and clear the transaction is rewarded new bitcoins.
Bitcoins technology was designed to cut the reward for miners in half every four years. The idea behind the move was to reduce inflation. In May, bitcoin went through a third halving, which reduced the rate at which new coins are created. This, in turn, reduced supply. That halving started bitcoins renewed growth.
In a recent letter to investors, hedge fund Pantera Capital said Squares Cash App and PayPal have been buying all new bitcoins. Those buys have caused a bitcoin shortage.
Cash App and Paypal recently launched a cryptocurrency service to its more than 300 million users.
Big predictions
The so-called whale index measures accounts holding at least 1,000 bitcoins. This index is at an all-time high, said Phil Bonello, research director at digital asset manager Grayscale.
Lennard Neo is head of research at Stack Funds. He says with the entry of Square and PayPal, he expects a stronger increase in demand than in 2017. Neo predicts bitcoin will reach $60,000 to $80,000 by the end of 2021.
Tempus Inc currency trader Juan Perez does not understand, and is even shocked, by all the big predictions. Perez said an estimate that bitcoin will reach $100,000 next year would be a prediction about the collapse of the worldwide financial system.
Governments around the world wont let that happen, he said.
I'm John Russell.
Gertrude Chavez-Dreyfuss reported on this story for Reuters. John Russell adapted it for Learning English. Bryan Lynn was the editor.
_____________________________________________________________
virtual adj. existing or occurring on computers or on the Internet
plausible adj. possibly true : believable or realistic
transaction n. a business deal : an occurrence in which goods, services, or money are passed from one person, account, etc., to another
puzzle n. a question or problem that requires thought, skill, or cleverness to be answered or solved
reward n. money or another kind of payment that is given or received for something that has been done or that is offered for something that might be done
cryptocurrency n. a kind of virtual currency or money
digital adj. relating to computer technology, especially the internet
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Some Investors Predict Bitcoin to Hit $100,000 in a Year - VOA Learning English
Introducing MoonDeFi, a New Part of Decentralized Finance | Press release Bitcoin News – Bitcoin News
PRESS RELEASE. Centralized exchanges have been the backbone of the cryptocurrency market for years. They offer fast settlement times, high trading volume, and continually improving liquidity. However, theres a parallel world being built in the form of trustless protocols. Decentralized exchanges (DEX) require no middlemen or custodians to facilitate trading.
Due to the inherent limitations of blockchain technology, it has been a challenge to build DEXes that meaningfully compete with their centralized counterparts. Most DEXs could improve both in terms of performance and user experience.
Basically, MoonDeFi has two main elements: Swap and Staking (Farming). And when users participate in any of the above activities, they will receive a certain profit.
What is the MoonDeFi Protocol?
MoonDeFi is a protocol on Ethereum for swapping ERC20 tokens. Traditionally, token swaps require buyers and sellers to create liquidity; MoonDeFi creates markets automatically. Unlike most exchanges that charge fees, MoonDeFi was designed with a very low fee structure without any fees.
Traders can exchange Ethereum tokens on MoonDeFi without having to trust anyone with their money. Anyone can lend their cryptocurrencies to the liquidity pool and collect a fee. This is done by an equation that automatically determines and balances the value based on actual demand.
How MoonDeFis Protocol Works
MoonDeFi is an automatic liquidity marketplace, so, there is no order book or central party required for the transaction, and MoonDeFi allows users to act as a one-stop-shop for any type of exchange, be it a token exchange or a trading platform.
To enable trading without an order book, MoonDeFi has developed a model called the liquidity pool, which is created by liquidity providers. Anyone with an Ethereum address can contribute to the liquidity of exchange and make money from it. It allows users to exchange ERC20 tokens, including the native ETH token, without intermediaries.
There is one important thing that users should keep in mind: they can seamlessly switch between ERC-20 tokens without the need for an order book. As the MoonDeFi Protocol is decentralized, the listing process is fully decentralized and there is no liquidity pool available for traders.
How to Swap Tokens on MoonDeFi
MoonDeFis main distinction from other decentralized exchanges is the use of a pricing mechanism called the Constant Product Market Maker Model. Any token can be added to Moon by funding it with an equivalent value of ETH and the ERC20 token being traded. For example, if a user wanted to make an exchange for an altcoin called Token A, they would launch a new Moon smart contract for Token A and create a liquidity pool with, for example, $10 worth of Token A and $10 worth of ETH. Now, the user is a Liquidity provider.
Once a token has its own exchange smart contract and liquidity pool, anyone can trade the token or contribute to the liquidity pool while earning a liquidity provider fee of 0.3%. Ok, thats the way a Liquidity Provider can earn profit from Swap.
Staking/Farming on MoonDeFi
The innovative Defi platform MoonDeFi has recently made liquidity mining available to users. After the Liquidity Providers contribute their coins to the pool, they will receive LP tokens. Liquidity Providers can use those tokens to participate in the Staking Program with a high profit rate. The reward will be distributed among users who deposit funds to the liquidity pool and join this program.
MoonDeFi automatically searches for the latest and most efficient DeFi platforms. It then optimizes productivity with the latest algorithms that can find highly profitable, at the same time very affordable groups for the user. Users then benefit at a steady rate of interest through farming.
At MoonDeFi, when users stake a coin/token, they will receive an interest of 30-40% a year, but when users become a liquidity provider and stake their LP tokens, the interest can go up to 45%. MOON, the native token of the MoonDeFi platform itself, is the one with the highest interest rates.
So, in summary, MoonDeFi is a more complete version of other DeFi platforms, with the transaction fee earnings of 0.3% of trading for Liquidity Providers and the staking interest up to 45% annually.
An Announcement from the MoonDeFi Team
Currently, airdrop & bounty and marketing programs are being launched, the total reward is up to 10 million MOON, equivalent to 10 million USDT. All interested parties need to do is to follow the airdrop bot t.me/moondefi_airdropbot and write blog content or make videos about the project, with each individual reward being up to 150 MOON (~150 USDT). For more detailed information on these two programs, please visit this link.
MOON Token Sale
MoonDeFi is carrying out a Token Sale at the moment. Users who would like to participate in MOON Token Sale should visit moondefi.org. The details of the MOON Token Sale are as follows:
Symbol: MOON
Token type: ERC-20
Total Sale: 32,000,000 MOON
Twitter: @moondefi_info
Telegram channel: t.me/moondefiofficial
Telegram group: https://t.me/moondefiofficialgroup
Medium: @moondefigroup
Reddit: @moondefi
Media Contact Details
Contact Name: MoonDeFi Support
Contact Email: support@moondefi.org
MoonDeFi Contract & Token Addresses
Contract: 0x765b2d50dE69219A418383F79a4973568d537F90
Token: 0x71924a8d733ae1bbc18d243e1deb56e767440eb6
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Introducing MoonDeFi, a New Part of Decentralized Finance | Press release Bitcoin News - Bitcoin News
Bitcoin analysts explain what’s next in the aftermath of BTC plunging to $16.2K – Cointelegraph
The price of Bitcoin (BTC) dropped sharply on Nov. 26 following a mass sell-off from whales. Data from on-chain data firms, namely Santiment, Intotheblock, and CryptoQuant, show heightened levels of whale exchange inflows.
Whales selling right under Bitcoin's all-time high, particularly when the market sentiment was overly euphoric, led to a massive drop. Roughly $1.8 billion worth of futures contracts were wiped out, as Cointelegraph reported.
Some exchanges, like Binance as an example, recorded $400 million worth of liquidations within merely several hours.
According to Santiment, whales sold quickly after Bitcoin surpassed $19,300. Many of these high-net-worth individuals sold so aggressively that they are no longer in the whale category of holding over 1,000 BTC.
The overleveraged derivatives market started crashing as soon as the price of Bitcoin saw a relatively minor drop. Eventually, BTC dropped to as low as $16,200 on major exchanges. Analysts at Santiment said:
Researchers at Intotheblock spotted a similar trend. The drop in the price of Bitcoin matched the moment when whales transferred 93,000 BTC into exchanges. When the price of BTC was at the yearly peak, 93,000 BTC were worth $1.8 billion.
Subsequent to the rapid crash of the Bitcoin futures market, the outlook on Bitcoin from traders and analysts remains divided. Some believe that BTC is headedfor a deeper pullback, possibly to the $13,800 support level. Others, however, say that buyers now have the incentive to bring BTC above $18,000 to tap the liquidity above.
The bearish case for Bitcoin in the near term mainly revolves around two things. First, during previous bull markets, BTC historically dropped 30% or more before seeing a continuation of the rally. If BTC sees a similar trend, that would mean a drop to at least $14,500.
Second, short-term investor activity is increasing as the price of BTC consolidates. In the past, a spike in the number of young addresses marked a bearish trend.
Cryptocurrency trader and technical analyst, Edward Morra, emphasized that previous bull markets saw multiple corrections that were even more severe, such as by 30% to 40%. Furthermore, the trader also said that the Fibonacci sequence 0.618 level is $13,500.
Based on the combination of these two data points, Morra explains that a drop to $13,500 would be a fantastic opportunity. He said:
Josh Olszewicz, a chartist and a cryptocurrency investor, meanwhile says that local Bitcoin tops usually occur when unspent transaction outputs (UTXOs) aged one to three months reach 10%.
The investor notesthat it is currently at 8%, which has historically signaled a market top. He noted that similar to BDD, more young on-chain coin movements are generally bearish.
Nevertheless, the market sentiment around Bitcoin remains generally bullish. Many analysts that anticipate BTC to fall in the near term still expect the dominant cryptocurrency to hit an all-time high by the years end. Considering this, some traders are also optimistic about the short-term price trend of BTC.
A pseudonymous trader known as Byzantine General noted that the liquidity for Bitcoin is now in the $17,500 to $19,000 range. Liquidity emerges when traders in the futures market sway to one side of the market. Since the liquidity is higher up, it indicates that traders are likely shorting BTC and the liquidation prices of overleveraged shorts are located around $18,000.
Stop hunts and cascading liquidations can work both ways. If mass long contract liquidations caused BTC to drop on Nov. 26, short liquidations could trigger BTC to rally. Given that BTC/USD has dropped substantially in a short period, a relief rally is certainly possible. With liquidity near $18,000, the probability of this happening remains high.
Former Credit Suisse banker Mira Christanto added that the medium to the long-term outlook of BTC remains strong. She pinpointed the Bitcoin Difficulty Ribbon indicator, which suggests the price of BTC has been suppressed for a long time. The indicator signifies an acceleration of mining difficulty, which as seen in 2013 and 2016, marked the start of bull cycles.
Whale exchange deposits have continuously remained high throughout November, which was the main source of selling pressure. But, the one variable that could offset the sell-off from whales is stablecoin inflows. In the latest note to its clients, data analytics firm CryptoQuant said that the number of stablecoins deposited into exchanges rose sharply in recent months.
For the rally of Bitcoin to continue in the near term, two main factors are critical. BTC needs to stay above the $16,200 support region, which it has defended so far with a strong reaction from the market.
It also would need to see higher stablecoin inflow in the next several days, which would indicate that sidelined capital is returning to the market. The note read:
At least in the foreseeable future, it is critical for BTC to remain stable above $17,000 and consolidate. This would allow the derivatives market to see a potential resurgence in momentum and the open interest to build up. So far, there aren't too many signs that a massive correction must occur and that the road toward a new all-time high in the medium term has been hindered.
Moreover, the culmination of negative news, including Coinbase CEO Brian Armstrongs tweet thread about U.S. regulationand Chinese police seizing $4.2 billion in BTC and other cryptocurrencies from the PlusToken Ponzi scheme, hit the market in recent days to fuel bearish sentiment.
However, as the impact of this negative news wears off, the fear along with selling pressure on Bitcoin and other cryptocurrencies could decrease in the upcoming weeks
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Bitcoin analysts explain what's next in the aftermath of BTC plunging to $16.2K - Cointelegraph
Bitcoin loses steam after nearing all-time highs, but trader says it could be on track to $74,000 – CNBC
Bitcoin's boom may just be starting.
The cryptocurrency's comeback could go exponential next year, two traders said Tuesday after bitcoin broke above $19,000 and rallied nearly 3.5%, closing in on its 2017 record highs.
The popular trade lost steam later in the week, falling nearly 12% since Wednesday to around$16,855.00as of Friday morning, according to CoinMetrics.
Bitcoin is still up around 136% year to date, buoyed by bullish sentiment tied in part to fintech companies including PayPal and Square getting into crypto.
"It's hard to give bitcoin an intrinsic fundamental value because there's pretty much a finite supply," Todd Gordon, founder of TradingAnalysis.com, told CNBC's "Trading Nation" on Tuesday.
Only 21 million bitcoins will ever be produced.
To try and see where the trade could be headed, Gordon used a concept known as the Elliott wave theory.
"It's a wonderful way to value crypto because Elliott wave is meant to detect the herding mentality and the emotions driving the price fear and greed and it creates very recognizable patterns," he said, turning to a chart of bitcoin.
"The Elliott wave theory is based on the idea that there's five waves in a primary trend, three [up]trends and two intervening corrections," Gordon said.
The first wave higher occurred in 2014, followed by a decline into 2015 and a long-term uptrend through 2018, Gordon said. The fourth wave has formed "sort of a sideways triangle" over the course of the last two years, and the fifth could be bitcoin's latest wave higher, the trader said.
"The point of all this is a reliable relationship in the Elliott wave theory is the percent distance traveled in that first wave in 2014 is often equal to the percent change in wave five," Gordon said.
Seeing as the first wave was a roughly 658% rally, Gordon's target was a lofty one.
"I can't believe I'm going to go out on CNBC and say this, but it's about 74,000," he said. "The Elliott wave goes very well with Fibonacci multiples. If it does want to fall short, it can go to 61% of that target, which is only at 34,000."
Bitcoin could potentially be the Tesla of 2021.
Mark Tepper
president and CEO, Strategic Wealth Partners
Another trader saw even loftier heights ahead for the crypto play.
"I've always had to own some," Mark Tepper, president and CEO of Strategic Wealth Partners, said in the same "Trading Nation" interview.
"It's like a FOMO concept for me," he said. "If I never owned any and bitcoin hits 100,000 per coin, I'd probably cry myself to sleep every night for the rest of my life."
Until recently, Tepper treated bitcoin like any other speculative investment, owning a small enough amount that it wouldn't tank his portfolio if the trade went south. But that changed when PayPal and other companies started to dip their toes in the space, he said.
"The thing that's always held me back from being an outright bitcoin bull has really been this lack of widespread adoption. But ... adoption's happening and those users, those PayPal and Square users, they're buying more bitcoin than what's actually hitting the market on a daily basis," Tepper said.
"You can kind of compare this to Tesla," he said. "Tesla's up over 500% this year. In my opinion ... I think bitcoin could potentially be the Tesla of 2021. It could, in my most bullish case possible, get to 100K by the end of next year. That'd be my bull case. I think my base case is a little closer to it doubling up to about 40K by the end of 2021."
Disclosure: Gordon and Tepper own bitcoin.
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Bitcoin loses steam after nearing all-time highs, but trader says it could be on track to $74,000 - CNBC
Bitcoin plunges by nearly $3,000 after closing in on its all-time record – CNBC
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LONDON Bitcoin has plunged by close to $3,000 in less than 24 hours after hitting highs not seen since the end of 2017.
The price of bitcoin was trading at $19,374 at 1:45 p.m. London time Wednesday when it began its slide. The losses accelerated overnight, with the price falling from $18,824 at 2 a.m. Thursday to $16,857 by 9 a.m., according to data from industry site CoinDesk.
Bitcoin has been on a tear in 2020, skyrocketing over 150% in a jump crypto enthusiasts have credited to unprecedented monetary and fiscal stimulus in response to the Covid-19 crisis, as well as interest from big-name investors such as Paul Tudor Jones and Stanley Druckenmiller.
The latest tumble comes as many predicted the cryptocurrency would soon hit an all-time high of $20,000.
AntoniTrenchev, a managing partner and co-founder of Nexo, which bills itself as the world's biggest crypto lender, said he expects bitcoin to rally well into the $20,000s and beyond.
"Long term I don't see anythingderailing Bitcoin's irrevocable rise higher," said Trenchev. "That doesn't mean we won't have pullbacks along the way. Look what happened in March; Bitcoin plunged 40% in one day during the coronavirus market panic. 20-30% falls can and should be expected."
He added: "Any healthy market needs to have pullbacks and periods of consolidation. Already in 2020 we've seen a gain of 160%."
Bitcoin peaked at $19,783 in December 2017. After hitting that milestone, the bubble burst and bitcoin plummeted to $3,122 the following year.
It climbed past $15,000 on Nov. 5, $18,000 on Nov. 19, and $19,000 on Nov. 24.
Bitcoin's market value which is calculated by multiplying the total number ofbitcoins in circulation by theprice now stands at $315.3 billion, down from $355.9 billion on Tuesday, according to CoinDesk.
CNBC's Ryan Browne contributed to this story.
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Bitcoin plunges by nearly $3,000 after closing in on its all-time record - CNBC
Veteran Analyst Says BTC Might See Further Correction but ‘Prices Have Not Topped’ | Markets and Prices – Bitcoin News
Following bitcoins sharp pullback on November 26, renowned trader Peter Brandt says BTC is likely to see a further correction, although he thinks prices have not topped. The comments follow the massive sell-off of cryptos that resulted in traded volumes of $8.5 billion being recorded across exchanges in just 24 hours. According to Messari, this is the second-highest traded volumes figure ever recorded.
Prior to the bears taking over, BTC had gone on an extended bull run and during the run up, many analysts predicted the digital asset would at least breach the $20,000 mark. However, at the time of writing, BTC appears to have stabilized after bottoming out at $16,218.
In keeping with the practice of issuing bullish statements when BTC is on a bull run, some analysts insisted that BTC would end the year above $20,000. Still, even after the latest crash, some remain adamant that the $19,500 resistance level will be breached and they back their predictions with data. For instance, the findings from a study carried out by a Swiss financial institution, SEBA says that current wallet holdings suggest large holders are unperturbed by the sell-off.
Also agreeing with the SEBA findings is Mati Greenspan, the founder of Quantum Economics who tweets that the 17% pullback is rather tame at this stage of the cycle. When one Twitter user asks if a further drop is expected, Greenspan responds my guess is weve already seen the worst of it.
However, not everyone agrees with the assessment that the large drop is actually a long-overdue correction. Instead, some bitcoiners on Twitter say rumors that the U.S. Treasury Secretary Steve Mnuchin is planning to change rules governing the use of noncustodial wallets might have triggered the large drop on November 26. Without giving away much, Ryan Selkis the founder at Messari tweeted I survived the Mnuchin crash of 2020.
However, Kyle Samani, the managing partner at Multicoin thinks the Mnuchin rumors have no effect on the current BTC bull run. He argues:
(The) next wave of buyers macro buyers want regulation For them, 21M cap is a feature, and censorship resistance is (kind of) a bug They dont want self custody. Just inflation hedge.
Still, others believe the resumption of withdrawals on the Asia crypto exchange Okex might have caused the drop. Okex froze withdrawals after one of the exchanges private key holder was reportedly taken in custody. While there is no consensus on what caused the drop, many bitcoiners appear to agree that BTC might not be returning to $10,000.
For instance, the SEBA findings say $16,200 is the new support price for BTC while the resistance is $19,500. Prior to the Thursday drop, Mike Novogratz of Galaxy Digital opined that BTC prices are not going to fall below $12,000 in the current cycle.
Do you think BTC will go past $20,000 this year? Share your views in the comments section below.
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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
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Veteran Analyst Says BTC Might See Further Correction but 'Prices Have Not Topped' | Markets and Prices - Bitcoin News