Monat: Dezember 2022

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Cardano is bearish amid increases in activity. But this prediction sounds very bullish

  • Cardano has witnessed an increase in activity after the Vasil upgrade.

  • “ADA Whale” expects Cardano token to turn bullish in 2023.

  • ADA is under pressure at $0.30.

As the year ends, Cardano (ADA/USD) will pride itself as one of the blockchains to undergo a major upgrade. However, to ADA buyers, this will be a year to forget. The cryptocurrency, which tapped $3.0 in September 2021, trades 10 times less value at $0.30. 

ADA investors will want to get excited about the September 2022 Vasil upgrade. The event was marked by an uptick in activity on the blockchain. As of December 9, there were reported 1,151 projects building on Cardano. That’s an increase from 1,146 two weeks earlier. However, ADA enthusiasts would quickly remember that the price has even slid further since Vasil. To an investor, ADA would be better off if it avoided further slump. But how about 2023? Should you be optimistic?

Yes, according to a popular crypto analyst, “ADA Whale.” According to the analyst, the entry of governance on Cardano will make ADA flip other altcoins. The analyst says ADA will turn the tables when it starts taking things into its own hands. Once the decentralised governance kicks in, Cardano will be removed from its core firms like IOG. Dubbed the Voltaire era, the shift is expected in 2023. Cardano co-founder’s, in October, also lauded the self-governance. In this, Charles Hoskinson expects Cardano to tell others “how to do decentralised governance.”

It could still be too early to speculate, but one thing is sure, Cardano and ADA will grow. At the moment, the cryptocurrency is only reeling from a bear market.

ADA on descent as momentum indicators remain bearish

ADA/USD Chart by TradingView

A technical outlook shows ADA on a downtrend in a descending channel. The price is weak at the $0.30 level. The MACD indicator is bearish.

What next for ADA?

The price of ADA stares at a possible new level as the year approaches the end. The token trades at the lowest level in the year at $0.30. A further weakening in price could see ADA claim a new low.

Where to buy ADA

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

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OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients‘ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

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The post Cardano is bearish amid increases in activity. But this prediction sounds very bullish appeared first on CoinJournal.

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Bitcoin still on a limited upside, but this analyst thinks the worst is still to come

  • Bitcoin lost 1% on Monday ahead of the US inflation data.

  • A crypto analyst expects the inflation data and Fed’s meeting to affect Bitcoin.

  • Bitcoin lacks a directional bias and could move in any direction.

Bitcoin (BTC/USD) traded down more than 1% on Monday, with the cryptocurrency’s price slightly below $17,000. Bitcoin has traded at this level since the start of the month. The price is also slightly improved from $16,000 at the end of November. But should we expect this price to improve?

The limited upside in Bitcoin perhaps underlines that investors are still cautious about buying cryptocurrencies. That means a significant number expect Bitcoin to fall further as risk-on sentiment remains. Similarly, buyers are defending the $16,000 level. But as this bull-bear scenario unfolds, a popular crypto analyst expects two macro events to crush BTC further. The analyst, Nicholas Merten, says markets are warming up for the US inflation report and the Fed’s last meeting of the year.

The US inflation report comes on December 12th, followed by the Fed’s meeting on December 14th. Higher-than-expected inflation is likely to raise speculations of policy tightening by the Federal Reserve. The analyst says already 80% of the market expects the Fed to hike rates by 50 basis points. If inflation comes hot, this will call for faster hikes. 

Even if the Fed does not embark on fast rate hikes, Merten says markets will still be under pressure. The analyst says the lagging effects of previous policy actions could last longer.

BTC on a slight upside amid weak momentum

BTC/USD Chart by TradingView

On the technical front, BTC trades within narrow ranges. The long-term momentum is bearish, although the cryptocurrency recovered slightly above $16,000. BTC’s next resistance lies at $19,000, while the support is at $14,000.

Will BTC go lower or higher?

A limited upside means that Bitcoin price could trade lower if the macro factors are not positive. Investors will monitor the inflation report and the Fed’s action for indicators of where BTC will go next.

Where to buy BTC

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients‘ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post Bitcoin still on a limited upside, but this analyst thinks the worst is still to come appeared first on CoinJournal.

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Bitcoin shrimps defy FTX implosion to add a record BTC to their holdings

  • Bitcoin price plummeting after FTX’s implosion in November provided shrimps – people with less than 1 BTC an opportunity to add to their balances at low prices.
  • According to new on-chain data tracking shrimp holdings, the cohort bought 96.2k more BTC in the 30 days after FTX collapsed.
  • The cohort’s holdings saw an all-time balance increase in the month and currently hold roughly 6.3% of bitcoin supply at 1.21 million.

Despite the continued selling across the crypto market over the past month, Bitcoin ‘shrimps’ – wallets holding less than one BTC – have added massively to their overall balances since the FTX’s implosion.

According to the latest data compiled by crypto exchange Bitfinex, investors have sold Bitcoin at a loss over the past 30 days as contagion fears and other macro factors combined to sink sentiment. But amid the widespread selling, there has been a significant accumulation drive from both shrimps and ‘crabs’ – wallets with up to 10 bitcoin.

Analysis of the on-chain balances of these two cohorts suggest that a portion of small retail investors have indeed been unfazed by the negative sentiment and jitters around FTX. Simply, wallets with less than 10 BTC have used the downturn in prices to buy Bitcoin.

Shrimps added 96.2k BTC since early November

As some investors panic-sold after the shocking news of FTX’s collapse, a few people took the opportunity to buy low. In November, Bitcoin price fell sharply below $20,000 and went all the way to levels beneath $16,000.

Weak hands sold as hodlers took advantage. And according to the Bitfinex report, its not just whales who might have seized on the prevailing sell-off. 

Shrimps buying the dip managed to add more than 96,000 bitcoins to their wallet balances. In fact, data puts it down to 96.2k BTC that shrimps bought since FTX collapsed, with the purchases accounting for an all-time high increase in the cohort’s wallet balances.

According to the statistic, shrimps now hold more than 1.21 million bitcoins to account for roughly 6.3% of the benchmark cryptocurrency’s circulating supply. 

As of writing, on-chain data sows the circulating supply of Bitcoin is 19.23 million coins, while addresses richer than $1 stand at nearly 34 million.

Wallets with less than 10 BTC also buy the dip

Crab, as noted above, are wallets that hold less than 10 bitcoins. Data by Glassnode shows that this cohort bought 191.6k BTC in the 30 days after FTX’s collapse. The group’ net position change during this period saw total balance also swell at an all-time high increase, with the month higher than in July 2022 when crabs bought 126k BTC following the May/June turmoil.

So what does this statistics reveal? According to the report, its likely retail investors are breaking from past behaviour of heavily selling during bear cycles.

Investor bullishness on Bitcoin is thus a mark of the new wave of resilience even as the market stares at potentially more pain with Bitcoin price poised near $17,000.

The post Bitcoin shrimps defy FTX implosion to add a record BTC to their holdings appeared first on CoinJournal.