Kategorie: Bitcoin News

Day trading is the practice of buying crypto assets, holding them for a short time (typically less than 24 hours), and selling them at a profit. It is a very risky trading strategy too, but with the right approach, it can be used to cash in on the short-term volatility in the market. However, not all cryptocurrencies are suited for day trading. In fact, here are some attributes that typically define the best day trading assets.

• The asset needs to have a relatively high trading volume. This makes it easier for orders to get filled.

• Day trading assets also need to be newsworthy in that, if something happens, they get covered in major crypto news.

• Finally, the asset also needs to be relatively more volatile compared to other cryptos.

Well, in case you want to day trade crypto, the following are some two assets you can consider based on the criteria above:

Bitcoin (BTC)

The main reason why Bitcoin (BTC) makes it into the list is based on the sheer trade volume. As one of the most popular cryptocurrencies in the world, it is also a newsworthy coin. After all, news related to Bitcoin will always be on the front page of any decent crypto site.

Data Source: Tradingview.com

At the time of writing, BTC had a 24-hour trade volume of nearly $24 billion. Also, Bitcoin is supported in most crypto day trading derivatives, including futures, CFDs, options, and others.

Tether (USDT)

Tether (USDT) is the largest stablecoin. Just like Bitcoin, it has a huge trading volume. In fact, its trading volume at the time of writing was around $61 Billion, nearly 3 times more than Bitcoin.

Tether (USDT) is however not nearly as volatile as Bitcoin but there is enough volatility there for a day trader to profit. It also gets a lot of press coverage so you are going to have all the info you need.

The post The best cryptocurrencies for short term day trading appeared first on Coin Journal.

• The total cryptocurrency market cap has shed over 3.2% in the past 24 hours as widespread selling in the crypto sector mirrors downsides in the equities market.

Crypto analyst Lark Davis says the cryptocurrency market is maturing and could soon post price moves that show volatility ratios similar to that seen in tech stocks.

According to the analyst, the first phase involves a lot of volatility before a maturing market sees that gradually reduce amid consistent growth.

Commenting on the current price action across major cryptocurrencies, Davis said:

“The #crypto market is going to start behaving like tech stocks. Lots of early volatility, then we start to see basically up only (with turbulence) as the user bases continue to grow.”

He looks at a scenario where an asset like Bitcoin experiences major price corrections today not being different from leading tech stocks like Amazon Inc., (NASDAQ: AMZN).

“For reference Amazon hasn’t seen any drawdowns over 40% since 2011!!!! Crypto is maturing,” he tweeted.

Bitcoin has declined by about 3% on the daily timeframe and there are also losses on the day for most other digital assets. Ethereum, Binance Coin, Cardano and Solana are among the major losers in the top ten cryptocurrencies by market cap, while there are declines for Avalanche, Polkadot, and Dogecoin.

This scenario is largely replicated in the stock market, where the Dow Jones, S&P 500, and Nasdaq closed lower on Friday. Blue-chip stocks such as Apple, Google, and Microsoft have all slipped over the past few days amid broader concerns over Covid-19 and its impact on economic recovery plans.

BTC’s largest price crashes

Bitcoin, which rose to highs of $69,000 in November, has lost over 33% of its value in the past month. The retreat sees BTC trade at lows of $45,000 as of writing. However, this is not the biggest dump for the flagship cryptocurrency. In the past decade, the BTC price has shrunk more than 80% on three occasions and 50%+ on four.

The biggest crashes saw BTC tank 99% in 2011 and 84% in 2013- both corrections linked to the now-defunct Mt.Gox Bitcoin exchange. The latest dump is a 53% crash in May following China’s crackdown on crypto mining.

The post Crypto to start behaving like tech stocks, says crypto analyst appeared first on Coin Journal.

The volatility in the crypto market in recent weeks has been quite concerning for Bitcoin (BTC) bulls. Although the recent FOMC meeting by the US Fed led to a decent bump in BTC prices, overall, the trend has been quite bearish. We don’t expect this to change; in fact, 2021 could end on a choppy note, backing a bear trend that we have seen for nearly the whole of Q4. Here is why this will happen:

• Pandemic fears are still ripe with the massive spread of Omicron

• The supply chain crisis and inflation in the US and Europe remains high, which could threaten global economic recovery

• There is talk of potential regulation in many countries

Data Source: Tradingview.com

Bitcoin Price Analysis and Prediction

BTC saw a massive pullback this week. At the time of writing this post, the mega-cap coin was trading slightly above $45 000. It is nearly 30% down from its all-time high of slightly above $ 70 000. Also, the technical charts don’t offer a lot of promise, at least not until the year is out. 

First, the price has already fallen below the 200-day exponential moving average. It is also very likely that in the coming days, BTC prices will test the 200-day simple moving average. We saw this type of trend in May 2021, and it took nearly 2 months for BTC to have some semblance of recovery. At this rate, it could be a very anxious time for BTC bulls out there.

Should You Buy Bitcoin

Bitcoin is the go-to crypto for any investor. Although it may seem like the recent pullback offers a nice dip to buy and ride the upward trend, it’s still early days. BTC could fall further before 2021 is out and some experts feel that the trend will continue into early 2022. So, it is best to wait for now.

The post 2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why appeared first on Coin Journal.

Many Bitcoin (BTC) experts and bulls see the crypto hitting $100, 000 in the near time. But many also remain split on when exactly this will happen. The large-cap coin has experienced massive headwinds this year.

It hit its all-time high just last month after scaling well over $68, 000. However, the surge did not last long sine in early December, Bitcoin tumbled to $46, 000. But considering BTC started the year at $30, 000, it’s still outperforming a lot of assets. But could Bitcoin really hit $100, 000?

Bitcoin’s Bullish Sentiment

Conservative analysts at Fidelity Investments are looking at the $100, 000 price target by 2023. But optimistic bulls see this coming rather sooner. In fact, some even predict that the crypto will hit $100, 000 in Q1 2022. Much of this growth is expected to be driven by solid organic demand. Bullish analysts at Token Metrics feel that the currency will hit $75, 000 by year-end.

Data Source: Tradingview.com

Others like Parallax Digital, a digital assets marketing and consulting firm, are looking at $307, 000 by October 2021. This is by the most bullish prediction of them all. Analysts at Parallax argue that inflationary pressures occasioned by the COVID 19 pandemic and the supply chain crisis will push more investors towards cryptocurrency. So, here is an expected timeline of events based on these predictions:

• Bitcoin Starts the year at $30, 000 

• Hits an all-time high of $60, 000 in September 2021 

• Surges to $75, 000 by year-end and goes on to hit $100, 000 in Q1 2022

Short Term Volatility Still Remains a Concern

Despite these bullish predictions, the short-term volatility of Bitcoin is expected to remain a big concern for investors. This has been a feature of Bitcoin for the last three months or so, and analysts feel it will continue in the short term.

The looming threat of potential regulation also remains a risk factor. However, analysts say that if indeed the crypto hits $100, 000, it will trigger a “euphoric” bull run that could send it to incredible heights.

The post Experts Predict Bitcoin Will Hit $100, 000 – But When Exactly? appeared first on Coin Journal.

• Jesse Powell says he bought more Bitcoin when it dropped to lows of $30,000 a few months ago.

• He says Bitcoin is more a “buy and hold” investment, while his forecast for the US dollar is markedly bearish.

Kraken CEO Jesse Powell has said the current downward pressure would provide another buying opportunity for investors if the price of Bitcoin were to dip below the $40,000 level.

In an interview on Bloomberg TV, the Kraken chief talked about the crypto space and even revisited his earlier prediction that had BTC rallying to $100,000 by the end of the year. 

While he notes that’s unlikely to happen given the market outlook, he believes the froth seen over the past several weeks would lead to a crucial buy the dip chance if the bears pushed below $40k-ish.

“I was buying when we dipped close to $30k a few months ago and you know I think a lot of people have a lot of dry power on the sidelines just waiting to come in at rock bottom prices,” he told Bloomberg’s Emily Chang.

Bitcoin is a „five-year plus“ investment

Acknowledging that his previous predictions for Bitcoin might have been a miss, Powell noted that it’s hard to tell what happens next in the market. He however feels it’s better for anyone looking to invest in Bitcoin to look at it as a “five-year plus investment.”

He also talked about Bitcoin’s more volatile nature, noting that such an outlook is more pronounced on shorter time frames- its price can swing massively in a day or over a week. He believes the strategy should be to look at the crypto as a “buy and hold investment.”

Powell sees the dollar crashing to „zero“

But while he remains bullish on crypto, especially Bitcoin, Powell paints a grim picture for the US dollar. He says that with interest rates likely to go negative and the dollar towards “zero”, the best scenario for investors would be not to have their currencies held in the greenback.

Powell also mentioned Kraken’s plans as the crypto market sees more and more activity, noting that the exchange wants to help fight the misinformation likely to impact negatively on new investors. Kraken is also looking to unveil a non-fungible token (NFT) platform to seize on the opportunity provided by the great interest in the space.

The Kraken CEO also commented on the need for proper regulation in the sector, noting that the exchange is pro-regulation but these should be clear and designed to support the industry grow.

Bitcoin currently trades around $46,800 as bulls battle to reclaim the $50,000 support level. The cryptocurrency has declined by about 8% in the past week, though it’s 140% up over the past year. In September, Bitcoin bounced off the $40,000 level after a brutal sell-off, and despite a choppy October, reached an all-time high above $69,000 on 10 November.

This time, Galaxy Digital CEO Mike Novogratz says the $42,000 level might be a key support level for Bitcoin.

The post Bitcoin below $40K is a buying opportunity, says Kraken CEO appeared first on Coin Journal.