Category Archives: Bitcoin
Institutional Money May Be Igniting the Current Bitcoin Rally – CCN.com
Bitcoin recorded another fresh 2020 high Friday as it climbed to $9,000.
There are different theories as to why the number one cryptocurrency suddenly came back to life. Just over a week ago, bitcoin rallied along with gold and oil after geopolitical risks in the Middle East escalated. Some analysts claim that speculators are already positioning for the May 2020 halving. Others claim that the loose monetary policies of central banks is driving investors to take on riskier assets.
While these theories have their own merit, new information tells me that institutional money may be powering bitcoins ascent.
In the fourth-quarter of 2019, the top cryptocurrency struggled to keep its head above water. From a high of $10,350 in October, it nosedived to $6,425 in December. At the time, the atmosphere was so pessimistic that calls for a drop to $5,000 or lower were dime a dozen.
At the same time, however, Grayscale was raking in institutional money. Last year, the Grayscale Bitcoin Trust drove demand as institutions invested $471.4 million. Nearly 200 million were raised in 2019.
This new information tells me that institutional investors helped carve the bitcoin bottom in December. It is no coincidence that the orange coin bottomed out just as institutional money came pouring in.
$200 million is a lot of money for an asset class with a market cap of about $162 billion. The impact of institutional money is magnified if you consider that more than half of BTCs in circulation have not moved in a year. Only $50 billion worth of BTCs have been changing hands over the past 12 months.
The chart shows that 64% of the over 18.04 million BTCs in circulation are dormant. Only 6.46 million BTCs are being used for trading or payments. These numbers indicate that the cryptocurrency is bound to soar if $200 million of new money enters the market.
While $200 million may be enough to carve a bottom, its not sufficient to push bitcoin to greater heights. Should the current bull rally fail to entice new investments, the coin will likely struggle to maintain its momentum. Whats even worse is that institutions might cash out just as new money from hyped retail traders enter the market.
If that happens, we might see bitcoin capitulate to $5,000 as trapped retail money rush to exit the cryptocurrency.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Sam Bourgi.
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Institutional Money May Be Igniting the Current Bitcoin Rally - CCN.com
New Analysis Finds That Mondays Are the Best Days to Buy Bitcoin – Cointelegraph
This week saw Bitcoin price (BTC) hitting the $9,000 barrier amid the launch of CME Bitcoin options and Plaids acquisition by Visa, reaching a record price for the last two months.
Bitcoins 27% price gain since the beginning of the year along with the future bullish scenarios laid down by investors may attract new crypto holders. But since BTC/USD is traded 24/7, new investors may be wondering: is there a difference between investing on a particular day of the week?
Figure 1. Crypto market data, 1-day performance. Source: Coin360
The basis of a difference in a day of a week returns comes from traditional stock markets. It has been shown that stock returns on Mondays are, on average, negative. This is called the Weekend Effect. One explanation is that the effects on a particular stock will only be felt on Monday since the market is closed during the weekend. However, the cryptocurrency market is always open: Could we expect the same behavior on Mondays for Bitcoin?
Analyzing Bitcoin returns from the beginning of 2019 until Jan. 13, 2020, data shows that Fridays present the highest average return across the days of the week at 1.1%. In contrast, only two days of the week show negatively average returns, Tuesday (-0.24%) and Thursday (-0.97%).
If an investor only started investing at the start of 2019 on a particular day of the week, Friday would present the best cumulative return, followed by Monday (Figure 2). Taking Fridays as an example, its assumed that the strategy would be to buy BTC closing price on Thursdays and sell it at the closing price on Fridays.
The closing prices (UTC timezone, a rolling 24-hour period) are used for simplicity reasons since the desired time to buy and sell during those days is based on the investors preference. The same buy/sell rationale applies if another day of the week is chosen to conduct the strategy (i.e. Monday).
Figure 2: Cumulative Return for investing on a specific day only between January 2019 and January 2020
Taking a deeper look at Bitcoin returns for a longer time period, as seen from Figure 3, we can conclude that Mondays offer the best average return from all the days of the week (0.54%).
On the other hand, Thursday and Wednesday are the worst days of the week to invest in Bitcoin with an average return of -0.09% and -0.23%, respectively.
Bitcoins Monday anomaly case is reinforced from a statistical perspective since Monday is the only day of the week with a statistically significant result from the used regression models.
Curiously, as a truly anti-status quo coin, Bitcoin shows a mean positive return on Mondays, in contrast to traditional stock markets Weekend Effect.
Figure 3: Average Daily Return for each Day of the Week between April 2013 and January 2020.
Using the same long-term sample starting in April 2013, an investor choosing exclusively one day of the week as a strategy would get the best option by choosing Mondays, followed by Saturdays, as seen from Figure 4.
Figure 4: Cumulative Return for specific day investment during the entire sample analyzed (Between April 2013 and January 2020)
We cannot ignore Bitcoins explosive gains from two highly volatile periods seen in 2017 and how those influence the average returns for the longer time sample. By isolating that year, we find that Monday still shows the highest average return (1.5%) across the days of the week, followed by Thursday (0.55%).
Figure 5: Average Daily Return for each Day of the Week between during 2017
In summary, Bitcoins unique features reveal an opposite behavior to traditional stock markets, showing a positive average return on Mondays when considering wider time periods. However, when dealing with shorter time frames, we identify Fridays as the day with the highest average returns across the days of the week.
As reported by Cointelegraph, a study in September 2019 showed that Bitcoin holders make a profit after an average of 1,335 days, or roughly three years and eight months. Overall, holding BTC has been profitable for over 94% of days Bitcoin has existed, according to the latest data from Bitcoin Hodl Calculator.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
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New Analysis Finds That Mondays Are the Best Days to Buy Bitcoin - Cointelegraph
Bitcoin Solves This: Billionaires Own More Than 4.6 Billion People Combined – Bitcoinist
A recent Oxfam report revealed that the worlds 2,153 wealthiest billionaires have more wealth than 4.6 billion people combined, but many believe that Bitcoin may help with that in the future.
According to a recent study conducted by the international charity, Oxfam, there is a major wealth inequality present in the world today. The report published Monday confirmed that around 2,153 of the worlds wealthiest billionaires own more wealth between them than 4.6 billion other individuals. Due to such inequality, Oxfam requested that the government introduces new policies that would remedy the situation.
The reports author tried to explain the situation in a rather interesting way:
If everyone were to sit on their wealth piled up in $100 bills, most of humanity would be sitting on the floor. A middle-class person in a rich country would be sitting at the height of a chair. The worlds two richest men would be sitting in outer space.
Bitcoinist recently reported one of the worlds wealthiest billionaires Bill Gates had a few words to say on the subject, himself. Gates published a blog post in which he looked back in 2019, noting that wealth inequality is a major issue that needs to be addressed. He also proposed that the wealthiest people should pay more taxes, as their way of giving back to the society which allowed them to become so wealthy in the first place.
Gates, just like Oxfam, and many others, has noticed that the economic system the way it is right now is failing. The wealthy are only becoming wealthier, while the less fortunate members of society continue losing money, and are barely managing to keep up with the cost of living.
However, there might be a way to remedy the situation, and it involves Bitcoin (BTC).
One thing that should be noted is that something called The Great Wealth Transfer is expected to take place in years to come. Simply put, there will be a generational shift in the world, where millennials are expected to take over from the previous generations.
The shift is estimated to offload around $68 trillion on to millennials in the US alone, which is likely to massively disrupt the current financial balance. This is where Bitcoin could enter the picture.
As many already know, Bitcoin the first and largest cryptocurrency in the world has been carving out a path for decentralized, digital money for over 11 years now. Thanks to Bitcoin, and its underlying blockchain technology, it is possible to cut out the middlemen from the financial world.
In other words, people would be responsible for storing and managing their own money, without having to pay high fees simply to have their funds transferred. Bitcoin whales individuals who possess massive amounts of bitcoin have proven this time and time again. They are now sending hundreds of millions of dollars and paying their fees in cents.
The average bitcoin user is also typically between the ages of 16-34, which shows that crypto is very much a young persons trend. Barry Silbert, CEO of Grayscale, commented on this generational wealth shift last year also, stating that he believes the investment world is preparing for massive change.
Over next couple of decades, there is $68 trillion of wealth thats held by baby boomers and the older generation, in the US alone, thats going to be handed down to Generation X and millenials My theory is that whatever of that 68 trillion that is currently in gold, I dont think its going to stay all in gold.
To date, there are now over 13,005 Bitcoin millionaires, and that number is set to rise as Bitcoin heads towards higher valuations.
Do you think that Bitcoin could help people save money through decentralization? Let us know in the comments below.
Image via Shutterstock, Twitter @NorthmanTrader
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Bitcoin Solves This: Billionaires Own More Than 4.6 Billion People Combined - Bitcoinist
Heres Why Joe Rogan Is Not Convinced on Cryptocurrency and Bitcoin (BTC) – The Daily Hodl
In the latest episode of the Joe Rogan Experience, the popular podcaster riffs on the surveillance state and why crypto and Bitcoin make him nervous.
Speaking with ex-CIA cover operations officer Mike Baker, president of Diligence, a global intelligence and security firm, Rogan calls out the big data grab by the National Security Agency (NSA) collecting everybodys personal information, from phone calls to text messages.
Baker calls Amazon, Google and your Samsung TV bigger surveillance threats than the NSA, given the ability of ubiquitous consumer devices to watch people in the comfort of their living rooms through embedded cameras or to listen to voice commands and other communications through microphones.
Its the commercial side thats collecting information not necessarily for nefarious purposes. Theyre collecting it for marketing purposes to make more money, which is what theyre in business to do. Theyre the ones hoovering up data that then leaks out because somebody hacks, grabs all that information, and then they use it for something nefarious.
Rogan pinpoints the type of new digital trends he finds worrisome.
Well, I get nervous when I hear about companies like Facebook that are thinking about starting their own cryptocurrency. Im like whoa, whoa, whoa, whoa. Are you going to have your own money now?
Im not a not-believer [in Bitcoin] but Im not invested in it. I had a guy on several times, Andreas Antonopoulos, whos a big Bitcoin expert very, very bright and interesting guy and I really enjoyed talking to him about it. But hes all in. He does all his banking with Bitcoin, pays his rent with Bitcoin, gets paid with Bitcoin, everything is Bitcoin with him. And hes loved by the Bitcoin community and all this different stuff.
But, at the end of the day, I just dont totally understand how you can have so many of them. Like how many cryptocurrencies are there, and if you dont have so many of them, well whos to say when you can stop making them?
Baker is similarly puzzled by the concept of decentralization and how the system can operate without some authority that is in control or without traditional forms of backing by a government or a commodity. Essentially, the computer science and math behind it is illusory. He says he falls under the category of not understanding Bitcoin because he hasnt taken the time to dig deep. Rogan counters,
You cant. You dont have enough time to think about everything. So Im letting that one play out on its own. Im just going to sit back, and when its 100% and everybody is like Look, Bitcoin is just like money ok, but until then.
They kind of predicted it was going to be just like money a few years, and it never really did hit that. But you can buy some things with Bitcoin. Theres some companies that let you buy computers with Bitcoin.
Baker says he buys gold. He also cops to wearing a blingy chain back in the day though not too chunky. Adds Rogan,
Gold is real. Theyve been killing people for gold forever. Its legit shit.
Despite gold being the real deal, Rogan questions why people are still so attached to it considering the tsunami of stuff on the planet.
I dont even like it as jewelry. I think its kinda tacky.
Featured Image: Shutterstock/igorstevanovic
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Heres Why Joe Rogan Is Not Convinced on Cryptocurrency and Bitcoin (BTC) - The Daily Hodl
Bitcoin: The Biggest Opportunity Of 2020 – Seeking Alpha
This article seeks to answer the question, what is the biggest investment opportunity of 2020? First and foremost, you are not likely to find it in the stock market with current frothy conditions.
Bonds and gold provide decent opportunities. If you believe that we are in the late stages of the business cycle, being long bonds is the best way to articulate that view without taking the outsized risk of shorting equities. Meanwhile, negative yielding bonds in Europe and Japan, geopolitical tension, and foreign central bank demand have created the perfect storm for gold prices.
Commodities are inexpensive, but if global industrial production continues to lag, base metals and other commodities will remain cheap. For context on lagging industrial production, the current print on the ISM is 47.2. There has been a 65% chance of recession whenever the ISM dropped below 50, and a 100% chance whenever the ISM crossed below 46. Despite this, neither stocks, bonds, gold, nor commodities offer the same risk/return profile of the asset class I am about to propose.
The biggest opportunity of 2020 and beyond is Bitcoin. Bitcoin's stock to flow (SF) ratio has a 95% coefficient of determination, or R-squared, with the price per coin. In plain terms, 95% of the variation in the historical price of Bitcoin can be explained by its stock to flow (existing stockpiles/yearly mining) ratio. Only 5% is determined by other factors such as regulations, adoption rates, and news surrounding Bitcoin. This model has Bitcoin's fair value at $55,000 by May 2020 due to the upcoming halving.
My first impression was incredulity. For a regression analysis on the price of an asset to be that parsimonious seems too good to be true. Yet both individual statisticians and institutional investors have confirmed the validity of the model. Surely, the model can break down for currently unforeseen reasons. I would not suggest levering up or putting most of one's portfolio in any cryptocurrency. However, the risk versus reward is highly asymmetric. Investors risk losing principal in order to gain 10x or more.
There are three primary ways to think about Bitcoin. The first is as a disintermediary in the financial system. Before Bitcoin, no mechanism existed to transfer value over a communications channel without using a third party. Peer-to-peer transactions on a distributed ledger reduces the time and transaction costs associated with online payments going through a bank or other trusted central authority. The largest issue with online coins is preventing double-spending, a flaw whereby someone can falsify and spend the same coin multiple times. Bitcoin's proof of work system prevents double spending. The Bitcoin ecosystem also aims at privacy with all transactions displayed using anonymous public keys and security through decentralization.
The second way is as a superior form of money. My previous Bitcoin article sticks exclusively to this realm. Essentially, it serves as a greater medium of exchange than gold because it can be sent instantly and as a greater store of value than the dollar because it is not subject to fabrication from Central Banks.
The final way to think about Bitcoin is digital scarcity as its enigmatic creator Satoshi Nakamoto explains:
"As a thought experiment, imagine there was a base metal as scarce as gold but with the following properties: boring grey in colour, not a good conductor of electricity, not particularly strong [...], not useful for any practical or ornamental purpose ... and one special, magical property: can be transported over a communications channel."
The mining process of Bitcoin is akin to gold and silver in that it requires time and energy, but through computational power and electricity instead of labor. After satisfying the proof of work requirement, a miner is rewarded with newly created coins. The number of coins rewarded began with 50 and is halved every 210,000 blocks, or roughly four years, until the stock reaches 21 million coins. That means every four years, the stock to flow ratio doubles, and price moves exponentially higher with increases in SF. The chart below shows price action with previous halvings.
(source: "Modeling Bitcoin's Value with Scarcity")
The SF model holds true for gold and silver prices as well. Gold, silver, and Bitcoin trade very similarly based on scarcity dynamics. That's why from a valuation perspective, perhaps the best way to think about Bitcoin is digital scarcity.
(source: Ibid.)
Thus far, I have presented the fact that the SF model has a 95% correlation coefficient with the price per Bitcoin. I have also presented the fact that the SF of Bitcoin will double in May of this year. A model with 95% accuracy up to this point stating that the price of an asset will move exponentially higher within the next few months is worthy of some attention. And while critics object that Bitcoin is too risky, the chart below shows that historically, a 1% BTC/99% cash portfolio would have outperformed any asset class while taking next to zero risk.
(source: "Efficient Market Hypothesis and Bitcoin Stock-to-Flow Model")
The SF model is credited to both Saifedean Ammous, author of The Bitcoin Standard, and Plan B, an anonymous quantitative institutional investor from the Netherlands. Plan B highlights and addresses two major objections to his model. Firstly, halvings should already be priced into Bitcoin as all information is priced into an asset according to the Efficient Market Hypothesis. The counterargument goes that despite the public availability of the model, most investors overestimate the risks associated with investing in Bitcoin. These risks include hacks to exchanges, a superior coin entering the market, governments making Bitcoin illegal, etc. While reasonable risks, these objections have been used since Bitcoin's infancy.
According to the model, Bitcoin will achieve a market capitalization of $1 trillion after May 2020. The question is, where will all this money come from? Plan B cites some examples as follows: "silver, gold, countries with negative interest rate (Europe, Japan, US soon), countries with predatory governments (Venezuela, China, Iran, Turkey, etc.), billionaires and millionaires hedging against quantitative easing (QE), and institutional investors discovering the best performing asset of last 10 yrs." I have a few important facts to add.
The world is awash with liquidity due to Central Bank policies. The world is also awash with investors seeking yield and undervalued assets in the current "everything bubble." Bitcoin is already in the top thirty global currencies by market cap. With a greater market cap than the Colombian peso and the New Zealand dollar, there is no denying that Bitcoin plays a role in the global macroeconomic landscape. As it moves higher as a share of global currencies and assumes a larger role in the future of the financial industry, more institutions will find themselves buying.
Regardless of one's personal opinion on the future of this asset class, enough quantitative evidence exists from Bitcoin's decade of existence to suggest that it has a role to play in everyone's portfolio.
Disclosure: I am/we are long BTC-USD. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Bitcoin: The Biggest Opportunity Of 2020 - Seeking Alpha
Bitcoin SV (BSV) Is Up 40% but Analysts Arent Convinced Bulls Are Back – newsBTC
Less than a year ago, almost all the major crypto exchanges delisted Bitcoin SV (BSV) over their bad blood with its founder and self-proclaimed Bitcoin creator Craig Wright. But that did not deter the fifth-largest cryptocurrency from establishing an all-time high.
The BSV-to-dollar exchange rate last week peaked at $458.70 as investors shifted their focus on its upcoming hard fork. On February 4, a code modification, codenamed Genesis, is hopeful to make Bitcoin SV blockchain more similar to the original Bitcoin created by Satoshi Nakamoto.
Founding president Jimmy Nguyen explained that the new version would be similar to aworld where data, transactions and digital activity of all types can be on-chain on a single public blockchain, just like the world operates online on a single public Internet.
The bullish swing followed months of downside action wherein BSV lost up to 73 percent of its valuation. The first signs of rebound came back in December, the period when the leading cryptocurrency bitcoin alongside the rest of the top coins also surged. Those positively correlated moves proved that the BSV was merely tailing a broader recovery sentiment.
Nevertheless, the gains also came amidst the ongoing legal dispute between Mr. Wright and Kleiman Estate. The former declared that he would have access to billions of dollars worth of bitcoin units locked inside a so-called Tulip Trust that he mined alongside his deceased partner Dave Kleiman.
People who believe that Mr. Wright is the real Satoshi Nakamoto anticipated that he would dump a large portion of that old bitcoin for BSV. That reportedly helped the cryptocurrency rise more than its rivals.
Bulls aggressively pump Bitcoin SV by more 40 percent | Source: TradingView.com, BitFinex
BSV underwent a massive downside correction of 47 percent as the media reported that Mr. Wright failed to prove that he had access to Tulip Trust. While it is still holding part of its gains, the sustainability of an extended upside is looking less likely unless pumped by bullish whales.
People were confused because major sites like Coindesk (and even decrypt) published articles saying [Mr. Wright] had the keys, said Tim Copeland of Decrypt stated. The price of Bitcoin SV doubled that day on this narrative. This is why facts are important.
Noted market analyst DonAlt also humored about a massive BSV dump, showing that the coin would negate all its gains once the hype is gone.
The BSV-to-dollar is now up by 38.98 percent from its local swing low of $236. Would the pair continue the upside momentum? Tell us what you think in the comment box below.
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Bitcoin SV (BSV) Is Up 40% but Analysts Arent Convinced Bulls Are Back - newsBTC
Bitcoin Just Saw A Key Technical Breakout: Big Reaction From Bulls Imminent – newsBTC
Bitcoin reversed after a sharp dip towards the $8,400 support area against the US Dollar. BTC price is now signaling more upsides above $8,800 and $9,000 in the coming sessions.
Recently, there was a sharp dip in bitcoin from the $8,750 area against the US Dollar. BTC price spiked below a couple of important supports, but it bounced back above $8,500.
As a result, there was a strong bullish engulfing pattern formed on the hourly chart and the price settled above the $8,500 support area. The recent increase was technically significant, suggesting the bulls rejected the $8,500 support.
Moreover, there was a break above a key declining channel with resistance near $8,665 on the hourly chart of the BTC/USD pair. Bitcoin price even climbed above the $8,700 level.
Bitcoin Price
It is currently testing the 100 hourly simple moving average and struggling to gain strength above $8,780-$8,800. If there is a clear break above the $8,800 resistance and the 100 hourly SMA, bitcoin is likely to accelerate higher.
In the mentioned bullish case, an initial target could be $9,000. A successful follow through above the $9,000 resistance might start a strong rise towards the $9,200 and $9,300 resistance levels.
Any further gains may perhaps start a larger upward move above towards the $10,000 and $11,000 levels in the coming days.
If BTC fails again to clear the $8,800 resistance and the 100 hourly SMA, it could correct a few points. An initial support is near the $8,670 level or the channel resistance area.
The first key support on the downside is near the $8,560 level, below which bitcoin is likely to retest the main $8,500 support area. Only a daily close below $8,500 might negate the current bullish view.
Technical indicators:
Hourly MACD The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently well above the 50 level, with positive signs.
Major Support Levels $8,560 followed by $8,500.
Major Resistance Levels $8,800, $8,810 and $9,000.
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Bitcoin Just Saw A Key Technical Breakout: Big Reaction From Bulls Imminent - newsBTC
Bitcoin, ETH, XRP, And LTC Rally Gains Momentum: How Long Will It Last? – Forbes
INDIA - 2019/12/04: In this photo illustration a popular decentralised digital currency, Bitcoin ... [+] logo seen displayed on a smartphone. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)
A rally in cryptocurrencies that began two weeks ago continued to gain momentum last week.
By late Saturday afternoon, Bitcoin was up 9.90%, ETH was up 21.38%, XRP was up 13.54%, and LTC gained 19.10%. Bitcoin raced towards the key $9,000-mark.
The rally was broad, with 90 cryptocurrencies advancing out of the top 100!
And it came as tensions with Iran eased and Wall Street staged its own rally.
That sounds like the old good days when Bitcoin was crossing one key-mark after another and the rest of the market was following through.
koyfin_20200118_072047073
How long the good days will last this time around? Experts see a pause at these levels.
Christopher Brookins, Founder and CIO at Valiendero Digital Assets, thinks that Bitcoin is currently taking a "breather.""The current value is still far from overbought territory, which bodes well for continued buying momentum with periodic consolidation points (currently happening)," he says.
Brookins estimates are based on The Hurst exponent (H) model, which is rooted in mathematics founded by Benoit Mandelbrot, to determine if a financial market is trending or not.
He's watching the $8680 (Kumo Cloud support) and $9418 (Cloud resistance and failed resistance from late-October surge). "A breach of either with significant volume can dictate where the price will go for the remainder of January. The current price action is still firmly bullish, but VFI will need to rise above 0 to confirm a bull market; preferably in combination with breaking key resistance. However, given the RSI level of 75, Bitcoin may run out of buying momentum before either is accomplished in the near term."
In addition, his model predicts that ETH and LTC price increases are unlikely to last for a sustained period. And he expects BTC to begin "demonstrably outperforming both ETH and LTC."
Nicholas Pelecanos, an Advisor to NEM Ventures, seesBitcoin sitting at a point of major technical resistance. "A break from here will lead to a rapid bullish climb. Currently, I'm watching BSV; further developments in Craig Wright's court case and relating to the Tulip Trust could lead to massive price appreciation and potentially a BTC sell-off," he says.
Meanwhile, Greg Forst, Director of Marketing at Factom Protocol, thinks that "the latest price rally gives a further illustration of the strong vital signs of the digital asset and DLT space."
And that makes him optimistic about the digital currency reaching its final "destination." "Reaching the point of truly mainstream adoption will take more time, but the rallies we've seen reaffirm what I've always believed: we are moving closer to the destination, fueled by the principles of transparency and efficiency," he says.
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Bitcoin, ETH, XRP, And LTC Rally Gains Momentum: How Long Will It Last? - Forbes
Bitcoin Is Plunging, But Its Too Early To Say Bulls Have Given Up – newsBTC
Bitcoin failed to extend gains above $9,200 and started a downside correction against the US Dollar. BTC price tested the $8,500 support and it could bounce back.
Yesterday, we discussed a crucial breakout pattern in bitcoin above $8,500 on the daily chart against the US Dollar. BTC price extended gains above $9,000, but it struggled to clear the main $9,200 and $9,300 resistance levels (as pointed out yesterday).
A new 2020 high was formed near $9,186 before the price started a sharp decline. There was a break below the $9,000 and $8,800 support levels. Besides, there was a break below a major ascending channel with support near $8,830 on the hourly chart of the BTC/USD pair.
Bitcoin Price
It opened the doors for more losses below the $8,800 support and the 100 hourly simple moving average. Finally, bitcoin tested the key $8,500 support area, where the bulls took a stand.
A low is formed near $8,473 and the price is currently recovering. It traded above the 23.6% Fib retracement level of the recent slide from the $9,186 high to $8,473 low.
On the downside, the main uptrend support is near the $8,500 level. If there is a downside break below the $8,500 support, the price could extend its correction towards the $8,000 pivot level. Any further losses below $8,000 might start a downtrend in the near term.
If BTC price stays above the $8,500 support, it is likely to start a fresh increase. The first key resistance is near the $8,800 area and the 100 hourly simple moving average.
Additionally, the 50% Fib retracement level of the recent slide from the $9,186 high to $8,473 low is also near the $8,830 level. Therefore, bitcoin must surpass the $8,880 area to resume is uptrend towards $9,200 and $9,500 in the coming days.
Technical indicators:
Hourly MACD The MACD is losing momentum in the bearish zone and turning bullish.
Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently near 40 and struggling to rise towards 50.
Major Support Levels $8,500 followed by $8,000.
Major Resistance Levels $8,800, $8,830 and $9,200.
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Bitcoin Is Plunging, But Its Too Early To Say Bulls Have Given Up - newsBTC
Is This Why Bitcoin SV Climbed Another 20% In the Last 24 Hours? – newsBTC
Although almost the entire cryptocurrency industry started 2020 with big price increases, one has stood out above the pack. Bitcoin SV (BSV) kicked off the year at below $100 and now trades for more than $300.
Whereas most digital currencies have traded sideways over the last 24 hours, Bitcoin SV is gaining in market capitalisation once again. However, at least one market analyst believes the dramatic price pumps are anything but organic.
Whether you like it or not, BSV price has been pumping hard this year. The digital currency, championed by Satoshi Nakamoto claimant Craig Wright, has gained more than 300 percent in the last 20 days. As NewsBTC reported, it even briefly flipped rival Bitcoin fork Bitcoin Cash (BCH).
Since last weeks industry wide price pumps, the markets have somewhat quietened down. However, Bitcoin SV is still moving upwards. Whereas most digital assets have seen neither gains nor losses over the last 24 hours, with around a 20 percent increase, BSV is still flying.
Following the initial pumps, NewsBTC reported on various theories explaining the sudden movement. Different analysts have suggested that developments in Craig Wrights legal battle with the estate of his former business partner Dave Kleiman, promises of upcoming protocol upgrades, a growing BSV community in China, and poor market liquidity all might be behind the unusual price action.
Adding their own theory to the mix is cryptocurrency entrepreneur and Chief Technical Officer of CoinText, Vin Armani. In the following Twitter thread, Armani accuses Calvin Ayre, one of the biggest BSV proponents and, apparently, one of its only miners, of operating a sophisticated wash trading scheme.
Armani alleges that the falling through of a deal to sell mining equipment to Squire Mining LTD. last year left Ayre with a lot of SHA-256 miners. The entrepreneur claims that since Ayre is the most prolific miner of Bitcoin SV, using the equipment on the network would not result in the entrepreneur receiving more BSV.
Instead of mining BSV, Armani claims that Ayre deployed the hardware on the BCH network. He would sell the Bitcoin Cash generated for US Dollar Tether (USDT) and use this to wash trade Bitcoin SV price up following an uptick in positive momentum. Supposed developments in the Kleiman case, coupled with Ayre himself aggressively pumping BSV with cryptic hints towards great things this year, may have been engineered for this very purpose. The fact that earlier exchange delistings of Bitcoin SV means it largely trades on small, obscure exchanges, only makes the scheme more effective.
Armani believes this elaborate plan, which he calls pretty genius, is behind the sudden price pumps in Bitcoin SV. Whats more, the CTO adds that Ayre will be able to continue pumping the price in such a manner to keep it close to the market capitalisation of Bitcoin Cash.
Its telling that although Bitcoin SV did exceed BCH in terms of market capitalisation, it has only done so for brief periods. Armanis theory only allows Ayre risk free pumping of Bitcoin SV up to market capitalisation parity with Bitcoin Cash. To push the price higher requires extra cash. It may be telling that, despite todays pump, the price remains below that of its rival Bitcoin fork.
Related Reading: Bitcoin Signal That Preceded 288% Rally About to Flash, and Its Huge for Bulls
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Is This Why Bitcoin SV Climbed Another 20% In the Last 24 Hours? - newsBTC