Kategorie: Bitcoin News

Bitcoin news about the Bitcoin (BTC) blockchain and its crypto ecosystem.

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Bitcoin retests $29,300 as key metric signals parabolic BTC move

  • Bitcoin price has broken above $29k, testing the $29,300 zone.
  • On-chain data shows BTC holders are increasingly betting long on the asset.
  • A macro sentiment indicator suggests Bitcoin price is poised for a parabolic move.

Bitcoin rose more than 4% on Monday to break above $29,300 again, with data showing the gains come amid a rising count of BTC holders.

The week ahead is expected to be huge for the market in terms of the economic data releases. But even as the broader market awaits the US consumer price index report, Santiment says most trader in the Bitcoin market are increasingly looking at the asset as a long-term bet.

It’s a trend likely to buoy a new upside momentum for bulls.

Bitcoin price indicator in focus – the aSOPR

According to Bitcoin analyst Ali on Twitter, BTC is primed for a parabolic ride given the outlook of one of Bitcoin’s macro market sentiment indicators.

In a price forecast he shared as BTC entered last weekend in a tight range around $28k, the analyst pointed to the Adjusted Spent Output Profit Ratio (aSOPR). The potential movement is still in play as Bitcoin crossed above $29k again on Monday.

“Another Bitcoin indicator hints at explosive growth! Historically, aSORP (90d) below 1 signals a bear market, & above 1 signals a bull market. In 2015, 2019 & 2020, it led to 6,110%, 150%, & 579% gains. aSORP recently moved above 1, suggesting $BTC readies to go parabolic,” the analyst noted.

BTC/USD currently trades around $29,200 and bulls will want to have the stubborn supply zone at $30k locked up with a major breakout performance. 

If not, the consolidation seen in the past several weeks and a possible dip below the range is likely.

The post Bitcoin retests $29,300 as key metric signals parabolic BTC move appeared first on CoinJournal.

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Bitcoin price prediction: Watch out for CPI event this week

  • Bitcoin price hovers above $28k with a ranged trading over the past month.
  • Analyst Michael van de Poppe says the US consumer price index report out this week could be a big market mover.
  • Bitcoin’s volume weighted average price (VWAP) is a metric to also watch.

Bitcoin price continued its ranged trading this past weekend, with bulls retesting the $28,500 area. As the week starts, the top cryptocurrency could see an injection of volatility.

Indeed, crypto analyst Rekt Capital says bitcoin remains “well positioned for mid- to long-term upside”, particularly as the cryptocurrency moves towards its next halving event. 

But what about the next few days? Below is what analysts say about Bitcoin price this week.

Bitcoin price prediction ahead of CPI data this week

According to crypto analyst Michael van de Poppe, BTC is still in consolidation – which has stretched from around mid-March. But with big economic news on the cards this week, the market could be in for a bit of movement.

In a comment on Bitcoin price he shared on Monday, van de Poppe said the upcoming Consumer Price Index (CPI) data expected on 12 April is a “big event this week.” 

If buyers manage to retest the $28,600 level, its likely BTC will break higher.

“Bitcoin is still stuck in the range. Good move overnight to $28,500 and back to consolidation. Big event this week with CPI, probably the market mover. If another test of $28,600 takes place, I’m assuming we’ll be breaking out upwards,” the analyst noted.

Here is the analyst’s Bitcoin price chart.

Trading volume metric and BTC price outlook

Pseudonymous analyst bitcoindata21 also says the CPI news this week will likely be a major market catalyst. However, he also highlights Bitcoin’s Volume Weighted Average Price (VWAP), which he says currently sits on the benchmark cryptocurrency’s all-time highs.

VWAP takes into account the average price of a trading asset as weighted by its total trading volume. 

The metric helps analyse and forecast price movement based on the average value over a given period. In this case, bitcoindata21 highlights the 30-day VWAP on 15 April, with a potential upward crossing on 13 April.

The chart below bitcoindata21 shared on Twitter shows a comparison of the 2019 and 2023 price movements.

Bitcoin price VWAP historical data outlook comparing 2019 and 2023. Source: bitcoindata21 on Twitter.

The 1-month sideways trading along the VWAP is similarly positioned as was in 2019 before BTC went on to hit a new all-time in the last bull market.

The post Bitcoin price prediction: Watch out for CPI event this week appeared first on CoinJournal.

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1 in every 138 Bitcoins are now owned by MicroStrategy, but it doesn’t make much sense


Key Takeaways

  • MicroStrategy has purchased another thousand Bitcoin, taking their holdings to 140,000 at an average price of $28K
  • The total investment is now $4.2 billion, with the company’s fate tied to the Bitcoin price
  • CEO Saylor remains ultra-bullish, but has no regard for risk management
  • For investors, someone may as well just purchase Bitcoin directly

MicroStrategy is at it again. 

The software company, which is now essentially a Bitcoin-holding company, has purchased another 1,045 Bitcoin. The company now holds 140,000 coins, with Michael Saylor’s now-trademark Twitter post announcing the latest investment to the world Wednesday. 

MicroStrategy’s 140,000 stash of Bitcoins is the largest holding of any public company. It constitutes 0.72% of the entire supply, meaning they own 1 in every 138 Bitcoins currently in circulation. 

A long way to go to Satoshi Nakamoto and his/her approximate stash of 1 million coins (5.2% of the supply), but Saylor is on his way. 

The latest purchase was locked in at average price of $28,016 per Bitcoin, bringing the average price to $29,803, meaning the company is slightly underwater on the $4.17 billion investment.

Michael Saylor doesn’t do risk management

CEO Saylor’s conviction remains unwavering, while his disdain for portfolio diversification is also unchanged. For me, regardless of your thoughts on Bitcoin as an investment, it is difficult to get on board with an investment of this scale. 

The risk is extreme, with the fate of the company now well and truly in the hands of the capricious crypto gods. A look at the share price action shows how tightly correlated it now is with Bitcoin. MicroStrategy shed three-quarters of its value last year as Bitcoin plummeted amid the bear market, but has doubled this year as Bitcoin has bounced back. 

Saylor’s conviction may be admirable, but his risk management not. This is especially pertinent when looking at his rhetoric regarding advising people on what to do with their funds – again, nothing to do with Bitcoin, but the failure to understand the risk tolerance and financial circumstances of everyday people is jarring:

“Take all your money and buy Bitcoin. Then take all your time to figure out how to borrow more money to buy more Bitcoin. Then take all your time to figure out what you can sell to buy Bitcoin. 

And if you absolutely love the thing and don’t want to sell it, go mortgage your house and buy Bitcoin with it. And if you’ve got a business that you love because your family works for the business – if it’s been in the family for 37 years and you can’t bear to sell it – mortgage it, finance it and convert the proceeds into the hardest form of money on earth, which is Bitcoin”

The interview occurred in March 2021. Bitcoin was trading north of $56,000 at the time, approximately double what it is currently. I sincerely hope that nobody listened to his advice of this billionaire and mortgaged their house or business. 

And again, this is not a discussion on the merits or price of Bitcoin. The same logic would hold if Bitcoin was now $200,000 per coin. Not that it needs to be said, but for the record, mortgaging your future and your entire financial well-being on one asset – and especially one as volatile as Bitcoin- is, well, not smart. 

Nonetheless, Saylor is intent on doing this with MicroStrategy. At least that is a little less perilous than betting one’s own personal future. But the reality is that with such a large investment – $4.17 billion! – MicroStrategy is now a Bitcoin holding company. 

For investors, I am not sure what the appeal is here, as one can just buy Bitcoin directly. For Saylor, however, he doesn’t seem to care. He’s all in.

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Peer-to-peer crypto exchange Paxful to suspend operations

  • Paxful will temporarily halt operations.
  • The exchange’s CEO however stated that they are not sure if it will resume operations.
  • This is the second peer-to-peer crypto exchange to shut down.

Paxful CEO Ray Youssef has published a post on the exchange’s website stating that the peer-to-peer (P2P) exchange will be suspending its marketplace. Ray went ahead to state that they are not sure if the exchange will resume operations.

This is the second popular P2P exchange to shut down in 2023 after LocalBitcoins announced shutting down in February.

Key staff departures and regulatory challenges

The CEO cited key staff departures and regulatory challenges in the post saying:

“This will probably come as a big shock to many. While I cannot share the full story now, I can say that we unfortunately have had some key staff departures. Also, regulatory challenges for the industry continue to grow, especially in the peer-to-peer market and most heavily in the U.S. While we work through these issues, we have taken the most secure option and ask you to explore self-custody and trade elsewhere.”

The CEO said that the biggest priority at the moment is safeguarding customer funds and advised customers to withdraw where possible. He has gone ahead to recommend withdrawing to self-custody wallets like Exodus and Muun.

Ray also stated that Paxful will be offering an easy migration to other P2P alternatives for non-US customers. He highlighted three P2P exchanges namely Noones, Bitnob and Yellow Card.

The Paxful Wallet will however remain operational for customers to retrieve their funds.

The post Peer-to-peer crypto exchange Paxful to suspend operations appeared first on CoinJournal.

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Bitcoin price in “transition” even as non-zero balance addresses hit 45.4 million: Bitfinex report

  • The number of Bitcoin wallets with non-zero BTC balance recently hit a new all-time high of 45.388 million.
  • However, daily active addresses and daily confirmed transactions have fallen.
  • Bitcoin price remains bullish but analysts urge caution as on-chain metrics indicate weakness amid renewed correlation with S&P 500.

Bitcoin price currently trends above$28,300, about 0.7% higher in the past 24 hours. The slight uptick follows the crypto market moving beyond rumours around a Red Notice warrant for Binance CEO Changpeng Zhao. 

Bitcoin’s resilience also comes after the market reacted upward on Twitter CEO Elon Musk’s move to replace the platform’s bird symbol with a Shiba Inu dog, a symbol for DOGE – the native token of the original meme crypto Dogecoin. 

DOGE price shot up more than 30% to above $0.1 for the first time since early December 2022.

Bitcoin growth outlook: non-zero balance wallets hit 45.4 million

Bitcoin continues to see huge demand as non-zero balance wallets grow to more than 45 million, according to details shared in the latest Bitfinex Alpha report.

But even as the benchmark cryptocurrency records a new high for small BTC holders , with this the fastest rate non-zero balance wallets have grown since early 2021, analysts commenting on Bitcoin price in the report suggest investors might have to be a bit cautious in the short term.

According to on-chain data, non-zero addresses count hit 45.388 million last week as Bitcoin price held above$27k to end the first quarter on a bullish note.

The jump in non-zero balance wallets marks a positive development for the network and for Bitcoin price, with this metric’s growth suggesting that more investors have recently entered the Bitcoin market. In any case, an increase in non-zero balance holders often points to new demand, particularly from small investors.

Yet, this positive outlook aside, other on-chain metrics suggest bulls may need to be cautious in the short term. As noted in the Bitfinex Alpha report, the market is in a transition and indecisive.

“A transition state is characterised by choppy market conditions where the price consolidates in a tight range before trending in either direction. Despite an influx of new market entrants, the sustainability of this phenomena of both rapidly growing non-zero balances and tight range-trading for Bitcoin remains uncertain,” they noted.

BTC price – key on-chain metrics suggest weakness

Bitfinex analysts suggest that other metrics indicate Bitcoin price may continue to consolidate around $28 as both bulls and bears remain indecisive.

Among key on-chain metrics to watch are bitcoin network statistics related to daily active addresses and daily confirmed transactions. 

For instance, the 7-day moving average of daily active addresses recently dropped to levels last seen in late January. The number of confirmed daily transactions have also declined. 

In the past two weeks, the Bitcoin network recorded a 7-day average of 293,058 transactions with the figures on 30 March suggesting a 13% decline from data recorded on 8 March. The Bitfinex analysts commented on the two metrics:

“While this is an inconclusive indicator in terms of bullish or bearish signals, daily activity and transactions decreasing for Bitcoin have always occurred at transitionary phases in the crypto market. They suggest indecision and an unsettling predicament for both bulls and bears.”

Bitcoin’s correlation with S&P 500 – is it rising again?

While bulls attempt to strengthen above $28k again, data shows BTC correlation with stocks is increasing after falling significantly in early March, with BTC price outperforming the major US indices over the month and year-to-date at the end of Q1, 2023.

However, per the Bitfinex report and as CoinJournal analyst Dan Ashmore highlighted last week, Bitcoin is on track to restore its correlation with the S&P 500 and the NASDAQ composite as its price continues to hover between $27k and resistance above $28k. 

Notably, the Pearson metric shows BTC/NASDAQ correlation is up to 0.61 while correlation with the S&P 500 reads 0.12. 

Any value above zero indicates a positive correlation and these figures suggest Bitcoin could trade more in lockstep with equity indices amid macroeconomic headwinds.

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