Economist Jim Rickards forecasts that gold prices could surpass ,000, emphasizing that this projection is not made for attention or shock value. “It’s the result of rigorous analysis,” he clarified. This represents a significant increase from his previous estimate of ,000 by 2026. Jim Rickards’ K Gold Prediction Explained Economist Jim Rickards shared his prediction […]
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David Bailey, CEO of Bitcoin Magazine, has disclosed his nexus with the campaign of former President Donald Trump. Bailey and his team have advised Trump to develop a Bitcoin and crypto-friendly agenda, including signing a crypto-focused executive order on day one. He declared that crypto enthusiasts will not vote for Trump but against Biden’s crypto […]
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Cardano Comeback: Analyst Reveals Why It’s Time To Get Back Into ADA
Cardano (ADA) might be going through a lackluster price action at the moment, but analyst Ali Martinez believes the crypto might be gearing up for a parabolic run. While taking to social media platform X, Martinez talked about an intricate price analysis that ADA investors might find appealing.
Particularly, the analyst noted that the cryptocurrency’s current price formation is showing signs of a comeback, according to its price history.
Cardano Price History Shows Signs Of Comeback
The price of Cardano has been on a correction path since the middle of March when it peaked at .79. Interestingly, current price levels means that the cryptocurrency has corrected over 40% from this peak.
This has led to concerns from some investors about the ADA’s price trajectory for the rest of the years, particularly considering different inactivity concerns and others surrounding the cryptocurrency. However, according to Martinez, this cycle is normal for the cryptocurrency.
The renowned analyst’s take on ADA is based on its historical trend. According to the 1M ADA/USD timeframe chart shared by Martinez, the 50% price drop ADA recorded in the past month could be a golden opportunity for crypto investors to position themselves for a price surge.
Looking at ADA’s price history shows this may just be a temporary setback before the next rally. A similar price action played out between 2019 and 2020 before the surge to new all-time highs in 2021.
After breaking out of a consolidating channel in 2020, ADA went on a 75% surge and then corrected by 56% over three months. This correction was soon forgotten as ADA bounced up and went on an impressive 4,095% bull run to reach its current all-time high of .09.
As Martinez noted, a similar price action seems to be playing out. ADA recently broke out of a consolidating channel which played out for almost the entirety of 2023. This break above the channel saw ADA performing a 72% surge before its recent correction.
If history were to repeat itself, ADA might kickstart a parabolic run in May and push up to new highs in the coming months. Martinez predicted a 2,480% price surge to .98 within the next nine months.
History doesn’t repeat itself, but it often rhymes!
If that is the case for #Cardano, we should be positioning ourselves for what’s coming, understanding that the recent price correction might just be one of the last buy-the-dip opportunities $ADA will give you. pic.twitter.com/wlKs7fNhb8
— Ali (@ali_charts) May 3, 2024
What To Expect In Cardano’s Next Bull Run
It is important to note that the crypto market has evolved significantly since 2021 and crypto assets have become less volatile, especially during uptrends. Many things have to be put in place in order for a ADA price to become a reality.
For instance, there needs to be a wider inflow and mainstream adoption of cryptocurrencies. According to crypto prediction website Telegaon, Cardano could reach the price level by the end of the decade.
Martinez believes the recent price correction might actually be one of the last buy-the-dip opportunities for investors to get on ADA. At the time of writing, ADA is trading at .4638 and is down by 1% in the past 24 hours.
Featured image from Pexels, chart from TradingView
Ethereum Price Could Rally If It’s Able To Reclaims The 100 SMA
Ethereum price started a recovery wave from the ,820 zone. ETH is rising and now facing a major hurdle near the 100-hourly simple moving average.
- Ethereum found support at ,820 and started a recovery wave.
- The price is trading below ,050 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trend line with resistance at ,000 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a fresh decline if it fails to clear the ,050 resistance.
Ethereum Price Faces Key Hurdle
Ethereum price extended losses below the ,000 level, like Bitcoin. ETH even tested the ,820 support zone. A low was formed at ,813 and the price started a recovery wave.
There was a decent move above the ,880 and ,950 resistance levels. The price cleared the 23.6% Fib retracement level of the downward move from the ,355 swing high to the ,813 low. Besides, there was a break above a key bearish trend line with resistance at ,000 on the hourly chart of ETH/USD.
However, the bears are active near the 100-hourly Simple Moving Average. Ethereum is now trading below ,030 and the 100-hourly Simple Moving Average. Immediate resistance is near the ,030 level. The first major resistance is near the ,050 level.
The next key resistance sits at ,085 or the 50% Fib retracement level of the downward move from the ,355 swing high to the ,813 low, above which the price might gain traction and rise toward the ,150 level.
Source: ETHUSD on TradingView.com
If the bulls remain in action and push the price above ,150, there could be a drift toward the ,250 resistance. Any more gains could send Ether toward the ,350 resistance zone.
Another Decline In ETH?
If Ethereum fails to clear the ,050 resistance, it could start another decline. Initial support on the downside is near the ,940 level. The first major support is near the ,880 zone.
The main support is near the ,820 level. A clear move below the ,820 support might push the price toward ,740. Any more losses might send the price toward the ,650 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,940
Major Resistance Level – ,050
Expert Makes Bold Call: It’s Time To Swap Your Dollars For Bitcoin
Billionaire investor Anthony Scaramucci, the founder of SkyBridge Capital, recently discussed the viability of financial assets. He took to X, a social media platform previously known as Twitter and owned by Elon Musk, to highlight the decreasing purchasing power of the United States dollar in comparison to the potential of Bitcoin (BTC).
US Dollar Vs. Bitcoin Value Performance
In the post on X, the SkyBridge Capital founder pointed out that a dollar from 2020 is now only worth about 75 cents, underscoring a significant devaluation due to inflation.
According to Scaramucci, this scenario illustrates why investors should reconsider traditional fiat currencies as a reliable store of value, advocating instead for the inherent benefits of digital assets like Bitcoin.
Dollar from 2020 is now worth 75 cents. Buy Bitcoin credit @balajis pic.twitter.com/WzIosKfJv2
— Anthony Scaramucci (@Scaramucci) April 26, 2024
Scaramucci’s critique comes at a time when the global economy grapples with heightened inflation rates, which have eroded the real value of fiat money.
He specifically cited a “25.14% compounded inflation rate” as a critical indicator of why the dollar is losing ground. In contrast, Bitcoin has not only maintained a strong profile but has also appreciated in value, further cementing its position as a viable hedge against inflation and a potential safe haven for investors.
So far, Bitcoin’s market performance has been quite appealing. Particularly, despite the significant downturn experienced in the past few years, the asset has managed to come out of the bloodbath and recently soared to an all-time high above ,000 in March.
This peak performance labels Bitcoin as not just a digital asset but a major player in the global financial landscape.
However, despite Scaramucci’s bullish outlook, it’s worth noting that Bitcoin has seen its share of volatility. It has been struggling to maintain its appeal recently, with a modest 0.9% increase in the last 24 hours – a slight recovery from a 2% drop over the past week.
BTC Shifting Market Sentiments
Further insights into the market’s behavior towards Bitcoin reveal changing dynamics. Data from CryptoQuant highlighted a negative turn in the Bitcoin funding rate for the first time since October 2023, indicating a cooling interest in speculative trading on the asset.
This shift suggests that while the long-term outlook might still be strong, short-term investor sentiment has become cautious, possibly awaiting clearer signals before making further commitments.
The current market sentiment is also reflected in the technical analysis of a prominent crypto analyst, Ali. In Ali’s recent post on X, a notable mention was made of a “death cross” seen in Bitcoin’s 12-hour chart, where the short-term moving average dips below a long-term counterpart, traditionally a bearish signal.
Additionally, the Tom Demark (TD) Sequential indicator points to potential price reversals after a consistent trend, adding another layer of complexity to Bitcoin’s trading strategy.
Despite these potentially bearish indicators, on-chain data from Santiment shows an interesting trend: Bitcoin whales have increased their holdings significantly, now owning 25.16% of the total supply.
This accumulation suggests that while retail sentiment may be bearish, large-scale investors are seeing the dips as buying opportunities, potentially prepping for a future bullish run.
Featured image from Unsplash, Chart from TradingView
Goldman Sachs On Bitcoin Halving: ‘It doesn’t Matter If It’s A Buy The Rumor, Sell The News Event’
Analysts at Goldman Sachs, a leading global banking and investment management firm, have offered valuable insights into the anticipated effects of the forthcoming Bitcoin halving, on the price of the cryptocurrency. They emphasize that while the Bitcoin halving is a noteworthy event, other major factors will likely exert greater influence on Bitcoin’s future value.
Bitcoin Halving To Play Lesser Role In BTC’s Outlook
In a note to clients, Goldman Sach’s analysts have cautioned against reading too much into the past Bitcoin halving cycles and their impact on the cryptocurrency. Based on historical trends, the Bitcoin halving cycles tend to have a favorable effect on the value of Bitcoin, often triggering a bull run.
The bank noted that whether the Bitcoin halving scheduled for April 20, becomes a “buy the rumor, sell the news event,” it would hold less significance for the cryptocurrency’s medium-term outlook.
They argue that the future performance of the pioneer cryptocurrency would be more heavily influenced by the supply and demand dynamics within the current market. Additionally, the analysts highlighted that the growing interest and demand for Spot Bitcoin Exchange Traded Funds (ETFs) combined with the self-reflexive nature of the crypto market would be the primary contributing factor to Bitcoin’s price action and future outlook.
Sharing a similar perspective, analysts at CryptoQuant disclosed earlier in April that the 2024 Bitcoin halving was no longer a primary catalyst for Bitcoin’s bullish surge. They highlighted that factors such as increasing demand from large-scale investors and diminishing supply were now the key drivers of Bitcoin’s upward momentum.
Analysts Warn Of Macroeconomic Influence On New Halving Cycle
Analysts at Goldman Sachs have predicted that macroeconomic factors such as inflation could have a significant influence on the upcoming Bitcoin halving event.
“Caution should be taken against extrapolating the past cycles and the impact of halving, given the respective prevailing macro conditions,” Goldman Sachs analysts noted.
Unlike previous halving cycles, the present economic conditions display high inflationary pressures and interest rates, which could cause the 2024 Bitcoin halving cycle to diverge from historical patterns. In other words, the analysts have suggested that for Bitcoin’s historical halving bull runs to occur, macro conditions need to be supportive of investor risk-taking.
Currently, the United States faces challenges with high inflation, while interest rates stand above 5%. These conditions may exert pressure on Bitcoin’s market dynamics. However, despite the prevailing circumstances, many see the digital currency as a formidable inflation hedge and a beacon of hope against escalating inflationary pressures.
LINK Price Eyes Recovery If It’s Able to Hold One Crucial Level
Chainlink’s LINK price retested the .00 support zone. The price is now eyeing a recovery wave above the .50 and .00 resistance levels.
- Chainlink price is showing bearish signs below the .00 resistance against the US dollar.
- The price is trading below the .20 level and the 100 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near .50 on the 4-hour chart of the LINK/USD pair (data source from Kraken).
- The price could start a decent increase if it clears the .00 resistance zone.
Chainlink (LINK) Price Eyes Steady Increase
In the past few days, Chainlink saw a major decline from well above the .00 level. LINK price declined below the .00 pivot level to enter a short-term bearish zone, like Bitcoin and Ethereum.
The price tested the .00 support zone. A low was formed at .92 and the price is now attempting a recovery wave. There was a move above the .50 level. It even jumped above the 23.6% Fib retracement level of the downward move from the .66 swing high to the .92 low.
LINK price is still trading below the .20 level and the 100 simple moving average (4 hours). Immediate resistance is near the .50 level. There is also a key bearish trend line forming with resistance near .50 on the 4-hour chart of the LINK/USD pair.
Source: LINKUSD on TradingView.com
The next major resistance is near the .00 zone. A clear break above .00 may possibly start a steady increase toward the .00 level or the 61.8% Fib retracement level of the downward move from the .66 swing high to the .92 low. The next major resistance is near the .00 level, above which the price could test .00.
More Losses?
If Chainlink’s price fails to climb above the .50 resistance level, there could be a fresh decline. Initial support on the downside is near the .80 level.
The next major support is near the .00 level, below which the price might test the .80 level. Any more losses could lead LINK toward the .00 level in the near term.
Technical Indicators
4 hours MACD – The MACD for LINK/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for LINK/USD is now below the 50 level.
Major Support Levels – .80 and .00.
Major Resistance Levels – .50 and .00.
Bitcoin To $53,200? Why History Says It’s Possible
As Bitcoin drops below ,000, history suggests this correction is rather tame for bull markets, as plunges to this deep on-chain level have been the norm.
Bitcoin Short-Term Holder Realized Price Is Currently Around ,200
As pointed out by CryptoQuant Netherlands community manager Maartunn in a post on X, BTC still has a decent margin over the realized price of the short-term holders.
The “realized price” is an on-chain metric that keeps track of the average price at which the Bitcoin investors acquired their coins. The indicator calculates this value by going through the transaction history of each coin and assuming that the last transfer of it was the last time it was purchased (that is, the price at the time is its current cost basis).
When the spot value of the cryptocurrency dips below the realized price, it means that the average investor is now in a state of loss. On the other hand, a break above implies the market as a whole has entered into net profits.
In the context of the current discussion, the realized price for only a particular segment of the investors is of interest: the “short-term holders” (STHs). The STHs include all the investors who bought their coins within the past 155 days.
Now, here is a chart that shows the trend in the Bitcoin realized price specifically for this cohort:
As displayed in the above graph, the Bitcoin STH realized price has shot up recently as the price of the asset has gone up. This makes sense, as this group includes the most recent buyers, who would continuously be buying at higher prices in an uptrend, thus raising their average cost basis.
At present, this cohort’s realized price is about ,200. During the past day, BTC has seen a sharp drop that has taken its price below the ,000 mark, but clearly, the STHs would still be in high profits even after this drawdown.
“In previous bull markets, the average cost basis of short-term holders was fully reset multiple times,” explains Maartunn. This trend is most prominent in the data for the 2017 bull run when the price retested this level several times.
An interesting pattern that has been held is that these retests of the level during bull trends have generally resulted in the cryptocurrency finding support and turning itself back around.
The explanation for this trend may lie in the fickle nature of the STHs. The cost basis is an important level for these investors, and when a retest of it happens, they panic and show some reaction.
During uptrends, these holders are more likely to buy more when a retest of their cost basis occurs since they may think that the same price levels that were profitable earlier will be so again in the near future.
Naturally, it’s not a certainty that Bitcoin would also end up retesting this level in this bull market. Still, a correction might reach close to it if the historical precedent is anything to go by.
BTC Price
Following its 7% drop in the past day, Bitcoin is trading at around ,700.
Skybridge Founder Insists It’s ‘Still Very Early’ to Buy BTC — Sees Bitcoin as the New Berkshire Hathaway
Skybridge Capital founder Anthony Scaramucci has insisted that it is “still very very early” to buy bitcoin. He likened the cryptocurrency to Warren Buffett’s company, calling it the “Berkshire Hathaway of the 21st century.” He opined: “It was never ‘too late’ to buy Berkshire stock. It is still very very early for bitcoin.” ‘Bitcoin Is […]
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