Kategorie: Bitcoin News

• Bitcoin rose to $17,000 on Monday.

• InvestAnswers thinks BTC is about to become bullish based on realised value.

• The token faces resistance at $19,000 and 50-day MA.

Bitcoin price (BTC/USD) was up marginally on Monday as most cryptocurrencies made slight recoveries. BTC was back to $17,000 even as data by crypto derivatives exchange Deribit showed that sentiment had shifted in favour of the cryptocurrency. But as this happens, a popular crypto analyst is projecting a rally.

InvestAnswers, a popular crypto analyst, says that on-chain signals suggest BTC is overdue for a rally. The pseudonymous analyst examines Bitcoin’s realised price or RP metrics in making the argument. Normally, RP posts the value of all BTC at the price the tokens were bought and then divides it by the number in circulation. InvestAnswers says that BTC never stays below the RP for long. 

The analyst says BTC has been under RP for 170 days. In 2020, BTC stayed below the RP for 8 days, while in 2018, it was 115 days. In 2015, it stayed a little longer at 240 days and only 110 days in 2011. According to the analyst, the RP of BTC lies at $21,000. Using the analogy, he says that the Bitcoin price is about to soar.

Besides the RP, InvestAnswers says that the rising weakness in the US dollar index suggests a likely rally. The index is inversely correlated to the risk-on assets, meaning that if it goes lower, cryptocurrencies go the other way.

BTC price analysis and outlook amid slight recoveries

BTC/USD Chart by TradingView

BTC trades above the 20-day moving average. Bulls have been winning the war at $16,000, although the bears are still relentless. The RSI remains below the midpoint, and the bullish momentum looks somewhat weak but improving.

Bulls will have the next test at the 50-day MA and the $19,000 resistance.

Should you buy BTC?

BTC is still largely bearish. However, all indications are buyers looking for the next opportune moment. In the meantime, BTC’s eyes $19,000 and a recovery past the level could usher in more upsides.

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 Disclaimer

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 Disclaimer

The post This analyst relies on on-chain metrics to support a Bitcoin rally. Is BTC a buy now? appeared first on CoinJournal.

• Bitcoin rose on Thursday after Powell’s statement indicated slower rate hikes.

• BTC price has recovered above the 20-day MA.

• The long-term momentum is bearish for BTC unless bulls win back the $19,000 level.

Bitcoin (BTC/USD) saw increased buyer interest on Thursday, rising to over $17,100. The price increase reflected renewed optimism in all markets after a soft statement by the US Fed.

A Wednesday statement by Fed Chair Jerome Powell showed that the central bank might slow rate hikes. According to Powell, smaller rate increases could be pursued starting in December. The suggestion raised hopes of slower economic tightening, which has been hitting markets. However, Powell still warned that monetary policy could remain restrictive until real progress to contain inflation is made.

Powell’s statement may boost prices of cryptocurrencies for some time, led by Bitcoin after the FTX-inspired selloff. Nonetheless, DFD Partners President Bilal Little shared insights from the gains. Little says that any time markets undergo periods of distress, they tend to oversell. As markets regain clarity again, the prices look up again. However, the DFD Chief warned that the rally would be hard to sustain.

According to Little, Bitcoin would likely touch the $12,000 to $13,000 level. He warns of other contagion impacts of the FTX collapse amid liquidity risks grappling crypto firms. As such, Little says many crypto firms may be unable to meet liquidity demands or counter the risk concerns.

BTC is recovering above the 20-day moving average

BTC/USD Chart by TradingView

Technically, BTC bulls are pushing the cryptocurrency above the 20-day moving average ($16,586). The cryptocurrency is breaking above a consolidation zone at $16,000. 

The RSI is slightly below the midpoint, indicating that demand is catching up with the supply. Still, BTC sellers have the upper hand.

Should you buy BTC?

Despite the latest gains, BTC remains largely bearish. The price recovery above the 20-day MA may offer optimism that BTC price may rise in the short term. However, bears may try to exert their influence at the 50-day MA. The $19,000 resistance may also counter the upside.

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 Disclaimer

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 Disclaimer

The post Why BTC rose to $17K. Here is the potential price action next appeared first on CoinJournal.

• BTC has been in a consolidation phase in the past few days.

• Bitcoin’s fear and greed index has moved to the fear level.

• The broad fear index by CNN Money is still in the greed zone.

Bitcoin price remained under intense pressure as concerns about the crypto industry continued. It was trading at $16,516 on Tuesday, where it has been in the past few days. This price is a few points above this month’s low of $15,733. The BTC/GBP and BTC/EUR have also been consolidation phase as well.

FTX and Alameda contagion continues

Bitcoin and other cryptocurrencies have been on edge following the collapse of FTX. At its peak, the company was the second biggest cryptocurrency exchange in the world after Binance. It was also seen as a savior of the blockchain industry as the founder made significant investments in a struggling company.

The contagion in the industry has continued. On Monday, BlockFi, a struggling crypto lender, filed for bankruptcy after the collapse of FTX. FTX had reached a definitive agreement to acquire the company, as we wrote in this report.

Other companies are struggling as well. For example, over 150 firms have applied for financing from a fund created by Binance and other large players. At the same time, Digital Currency Group (DCG) has hired restructuring experts as its portfolio companies come under pressure.

Crypto fear and greed index improves

Bitcoin price has been in a tight range as the cryptocurrency fear and greed index improves. According to AlternativeMe, the fear and greed index was at the fear level of 26 on Tuesday, which was higher than last week’s extreme fear of 22. 

The fear and greed index is an important gauge in the crypto industry since it measures the overall sentiment of the coin. It looks at key data like Google Trends, market dominance, and social media activity.

On the other hand, the broader CNN Money fear and greed index remained at the greed level of 59. Key numbers like stock price strength, stock price breadth, and put and call options are at the greed level. Bitcoin tends to do well in periods of sustained greed.

Bitcoin price forecast

        Bitcoin chart by TradingView

The daily chart shows that the BTC price has been under intense pressure in the past few months. It remains slightly below the important support level at $17,606, which was the lowest level in June. The coin has also moved below all moving averages. It has also formed what looks like a bearish pennant pattern.

Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $15,000. A drop below that support means that the coin has higher chance of falling to $10,000.

How to buy Bitcoin

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 Disclaimer

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 Disclaimer

The post Bitcoin price prediction as fear and greed index improves appeared first on CoinJournal.

• Bitcoin could undergo another Capitulation event around Christmas – Cowen

• The cryptocurrency is consolidating but lacks an upside momentum

• BTC price could break into upside or downside

When will Bitcoin price (BTC/USD) bottom-up after slipping below the crucial $19,000 level? Crypto analyst Benjamin Cowen believes Bitcoin has to undergo one capitulation event before a price reversal. Cowen examines the historical patterns to explain when this is likely to occur.

Cowen points out that the final capitulation event will occur around Christmas this year. A capitulation event occurs when a sizable portion of investors succumb to bear pressure and sell their holdings. Capitulation events are characterised by unusually high trading volumes coinciding with sharp price falls. When the price reaches its lowest point, it signals a market bottom that ushers in a bullish move.

Relating to the historical patterns, Cowen says that Bitcoin bear markets last around a year. In 2014, he says, the bear markets lasted 14 months, while in 2018, it was 12 months. Thus, if the current one is to reflect historical patterns, the dates around December 25th, 26th, and 27th, could be.

Bitcoin has been very choppy heading to this important prediction at year-end. Cowen thinks that $15,000 is the balanced price for Bitcoin. The analyst says that the cryptocurrency has to fall below this level to hit bottom. That will prompt attempts to recapture the fair value.

BTC outlook as price consolidates at $16,000

BTC/USD Chart by TradingView

On the daily chart, Bitcoin is choppy and consolidates around $16,000. The MACD indicator is in the bearish zone. The RSI remains below the midpoint, indicating that the sellers are in control.

What next for BTC?

Bitcoin lacks a directional bias. Although bulls have continually defended $16,000 successfully, they are unable to take the price higher. That’s despite the recent Fed statement indicating slower rate increases.

With the current choppy trading pattern, Bitcoin can go either way. Just as Cowen predicted, BTC could claim a new bottom. For that to happen, the price must break below the $16,000 support zone.

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 Disclaimer

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 Disclaimer

The post What crypto analyst Benjamin Cowen thinks of BTC before a reversal occurs appeared first on CoinJournal.

Key Takeaways

• Cathie Wood says that institutions may take step back from crypto
• She believes that they will allocate more to Bitcoin and Ether once they take time to study the crypto space
• I believe she may be too optimistic, that the crypto industry has taken a battering and it may take longer to recover from

 

Crypto is in a bad place right now.

The most concerning development coming out of the last few weeks – and I think you will agree, there have been a few – is perhaps what it all means for the reputation of the industry going forward.

What institutions are going to put Bitcoin on their balance sheet now? What pension funds are going to move into digital assets? FTX’s implosion (which I wrote about in detail here) is so high-profile and jarring that it feels delusional to expect anyone connected to traditional finance moving into the space. Is the damage irreparable?

Cathie Wood hints at institutional stepback

On this note, I thought Ark Invest founder Cathie Wood’s interview with Bloomberg last week was telling. Long known for her ultra-bullish views on all things Bitcoin, she even reiterated in the interview her confidence in her price prediction of Bitcoin, which she believes will be worth $1 million per coin by 2030.

This was not a surprise, nor was it wholly unpredictable. Wood is adamant that Bitcoin will change the macro landscape long-term. She has positioned highly aggressively in the market, betting on risky tech stocks, Bitcoin and other assets that have struggled amid the transition to a new interest rate paradigm – as the performance of her flagship ETF shows below:

I felt that something else was notable in her interview, however. “I do think, though, that the one thing that will be delayed is perhaps institutions stepping back and just saying, ‘OK do we really understand this?’”, she said.

This hints at the big danger here. All through the pandemic, one of the most bullish things for Bitcoin was the trend of institutions pouring into the space. There was Tesla. There was ETF chat. There was Grayscale. There were public mining companies. There was Coinbase floating on the stock exchange. Hell, there was even El Salvador declaring Bitcoin as legal tender.

But now that the low-interest environment has come to a close, and liquidity is getting sucked out of the economy, Bitcoin and crypto are facing something they have never had to face before – a pullback in the wider economy.

Let us not forget that Bitcoin was launched in 2009, into the greatest bull market in history. It has not yet been tested amid a bearish macro climate, and hence this is all unprecedented. And against this test, crypto is straining.

BlockFi, Celsius, Voyager, Three Arrows Capital, and all the other bankrupt firms, which are now joined by FTX, have also painted crypto in such a bad light that it is not surprising to hear analysts warn of pullbacks in institutional adoption. Wouldn’t it be more of a surprise if there wasn’t?

Optimism

I should note that Wood did add that she thought Bitcoin is coming out “smelling like a rose” from all this. While I certainly wouldn’t go that far – the entire industry is getting its reputation pummelled if you ask me – I see where she is coming from.  

But while Bitcoin may have no counterparty risk, and hence theoretically is immune to the sorts of implosions we have seen at centralised companies like FTX, this is the real world. And in the real world,  in order for the average citizen to access it – not to mention institutions – centralised companies are needed.

And until the greed, reckless leverage, naïve risk management and outright fraud (not naming names) in the industry ceases to exist, Bitcoin won’t gain any significant traction in the mainstream financial space. Institutions will be a lot warier of investing in the space now after so many high-profile blow-ups. Regulation is coming in strong. Returns are no longer through the roof.

This is why I disagree with the optimistic tone that Wood set later in the interview:

“And once (institutions) actually do the homework and see what has happened here”, Wood said, “I think they will be more comfortable moving into Bitcoin and perhaps Ether as a first stop, because they will understand it more”.

For me, understanding Bitcoin more also comes with the comprehension that it continues to trade as an extremely high-risk asset, in what is now no longer a zero-rate environment. While the long-term vision may be for Bitcoin to be a reputable inflation hedge, that is not where it is right now – something asset managers will realise.

Crypto has also put a sour taste in the mouth of anyone who has touched it this year. FTX is just the latest embarrassment for the industry, as the world watches on with a mixture of smugness, pity and disgust. Against this backdrop, the reputation of the entire space has taken a hammering.

And as interest rates rise, a cost of living crisis surges and data continues to point towards a struggling economy, the crypto party will take a little longer to resume than Cathie thinks.  

The post Even Cathie Wood admits institutional adoption of crypto will fall off appeared first on CoinJournal.