Dell CEO Michael Dell recently conducted a poll asking people to identify the most important factor among artificial intelligence (AI), love and relationships, and the crypto asset network Bitcoin. The poll concluded with Bitcoin receiving a majority of the more than 64,000 votes. Dell’s Poll on AI, Bitcoin, or Love and Relationships — Elon Musk […]
Bitcoin News
Bitcoin Slips Under $64,000: Here’s Where The Next Support Is
Bitcoin has continued its recent bearish trajectory during the past day as the asset’s price has now slipped under ,000. Here’s what the next support looks like for BTC.
Bitcoin Has Strong On-Chain Support Between ,900 & ,800
According to data from the market intelligence platform IntoTheBlock, BTC is floating just above a critical on-chain demand zone. Demand zones refer to price ranges where many investors last bought their coins.
These ranges can be determined through on-chain analysis, as the average cost basis of each address on the network can be readily calculated through its transaction history.
Below is the chart shared by the analytics firm that shows the various price ranges near the current asset price in terms of the present demand.
In the graph, the size of the dot corresponds to the number of addresses bought inside the respective range. It appears that Bitcoin currently has large demand zones both just above and below itself.
According to IntoTheBlock data, the lower range currently holds the cost basis of around 1.23 million addresses for investors who bought 319,700 BTC. Now, what’s the relevance of a demand zone like this?
To any investor, their cost basis is important, so when the price tests it, they may become more prone to making some move. Naturally, if many holders share their break-even level inside a narrow range, the reaction resulting from a retest would also be large.
Because of this reason, zones of major demand are considered to be important support or resistance levels for Bitcoin. Cost basis centers above the price can act as resistance walls, while those below can provide support cushions.
Since BTC is hovering just above a major demand zone between ,900 and ,800 after its latest decline, it’s possible that the range could help the asset reach a bottom.
As for the source of the support or resistance effect provided by these demand zones, the answer lies in investor psychology. The holders currently in loss may be looking forward to the price hitting their cost basis to exit with their initial investment.
This selling that may appear upon a retest of many investors’ shared break-even level can pose resistance to BTC. Similarly, the investors below can react to a retest by buying more, as they could look at the drop as a dip opportunity, thus supporting the asset.
It now remains to be seen if the support zone between ,900 and ,800 would put an end to Bitcoin’s recent bearish momentum or not.
BTC Price
After the latest drawdown, Bitcoin has just entered into the on-chain demand zone, as its price is now trading around ,600.
Bitcoin Drops Below $64,000, But Arthur Hayes Advocates ‘Buy The Dip’
Bitcoin is experiencing a significant decline today, dipping below the ,000 mark to a low of ,564. This drop represents a 2.5% decrease in the last 24 hours and an overall 12% decline over the past two weeks. Amidst this downward trend, Arthur Hayes, the co-founder of BitMEX, is not only maintaining his bullish stance on Bitcoin but actively encouraging investment, advocating a strategy to ‘buy the dip.’ His optimism and advice are deeply rooted in an analysis of global economic conditions and central bank policies, which he believes will favor cryptocurrencies like Bitcoin.
Buy The Bitcoin Dip?
Hayes’s insights draw attention to the aggressive monetary policies implemented by central banks, particularly the US Federal Reserve. These policies, including rapid interest rate hikes—the most aggressive since the 1980s—were initiated in response to rising inflation in the United States. The hikes have had a profound impact on the bond market, particularly affecting US Treasuries (USTs), which saw a decrease in prices due to the rising yields. Japanese banks, in search of yield amid domestically near-zero interest rates, had heavily invested in these USTs.
The strategy backfired when US rates rose, leading to significant paper losses for these banks. Hayes specifically points to the situation with Norinchukin Bank, which was compelled to sell off billion in foreign bonds, mostly USTs, to reduce these losses. This scenario underscores a broader trend among Japanese banks, which may need to continue offloading USTs and other foreign bonds as they adjust to the new economic realities imposed by US monetary policy.
Hayes argues that these developments have critical implications for the crypto market, particularly Bitcoin. He notes that the responses by central banks to stabilize financial markets—such as the Federal Reserve’s decision to provide a blanket backstop in March 2023 following a series of bank failures—indirectly benefit cryptocurrencies. This intervention led to a surge in Bitcoin’s price, reinforcing its status as a viable alternative investment during times of financial instability.
Moreover, Hayes points out the operational details of the FIMA repo facility, which was expanded by the Fed to bolster liquidity. He explains, “A rise in the FIMA repo facility indicates an addition of dollar liquidity to the global money markets. Y’all know what that means for Bitcoin and crypto … which is why I thought it necessary to alert readers about another avenue of stealth money printing.” This mechanism allows central banks to exchange their holdings of USTs for dollars, increasing the dollar supply without flooding the market with bonds and potentially driving up yields.
The implications for Bitcoin and other cryptocurrencies are profound, according to Hayes. He suggests that as central banks, particularly the Bank of Japan, might use these facilities to manage their exposure to USTs, the resultant increase in dollar liquidity could drive investors towards cryptocurrencies. This movement is seen as a hedge against potential inflation and currency debasement resulting from these monetary expansions.
Hayes vividly describes the effect of these macroeconomic maneuvers on the crypto market: “Just as many began to wonder where the next jolt of dollar liquidity would come from, the Japanese banking system dropped Origami cranes composed of crisply folded dollar bills upon the laps of crypto investors. This is just another pillar of the crypto bull market. The supply of dollars must increase to maintain the current Pax Americana dollar-based filthy financial system.”
In a rallying call to the crypto community, Hayes concludes, “Say it with me, ‘Shikata Ga Nai’, and buy the fucking dip!” Through this declaration, he underscores his belief that despite the volatile market conditions, the underlying economic and monetary developments are creating favorable conditions for Bitcoin’s growth. His analysis suggests that savvy investors should view the current price drops as buying opportunities, given the broader economic backdrop that he believes will continue to propel interest and investment in cryptocurrencies.
At press time, BTC traded at ,159.
Crypto Expert Encourages Investors To Buy The Dip As Bitcoin Price Falls To $64,000
The Bitcoin price took a sharp downturn recently, dipping below ,000 and raising concerns among investors. However, a crypto analyst has encouraged the crypto community to buy more Bitcoin at this time, suggesting that the decline presents an opportunity to acquire BTC at a lower price.
Bitcoin Decline Signals Prime Buying Opportunity
Michael van de Poppe, a popular crypto analyst and enthusiast, has remained optimistic about Bitcoin’s future outlook, urging the broader crypto community to view the cryptocurrency’s recent dip as a buying opportunity.
In a recent X (formerly Twitter) post, the analyst shared insights on the crypto market, noting the regular occurrence of both bullish and bearish activities, which contribute to the market’s balance and stability. He also revealed that price corrections were normal in the crypto market, independent of market performance or conditions.
Poppe has encouraged investors and crypto enthusiasts to buy more Bitcoin now that the price is currently trading at ,528, according to CoinMarketCap. Over the past week, the cryptocurrency has witnessed significant price declines, plummeting by 4.64%.
This unexpected price decline has been attributed to the crackdown on Silk Road Bitcoin, an online black market that allows users to purchase illegal and unethical commodities anonymously using Bitcoin.
According to ZachXBT, a crypto community member, the United States government transferred 30,175 BTC worth .1 billion of Silk Road hack funds to Coinbase. This massive Bitcoin transaction has possibly led to the cryptocurrency’s present decline, fueled by bearish news and market volatility.
“At peak bullish momentum, you’ll see a huge impact of every bearish narrative. This time, it’s the Silk Road Bitcoin being transferred. Anyway, buy the dip,” Poppe stated.
BTC’s Peak Anticipated Before Halving Event
In another X post, Poppe revealed disheartening news, noting that a critical price zone had been lost for Bitcoin. The crypto analyst asserted that the cryptocurrency would not witness a surge to new all-time highs during this pre-halving phase unless it breaks through resistance levels at ,000.
The analyst foresees a period of consolidation for BTC, highlighting that during this time altcoins are expected to gain traction while Bitcoin undergoes a correction phase. He further disclosed that a price correction for Bitcoin indicates a healthy and organic market cycle.
Poppe has stated that Bitcoin’s area of interest lies between the range of ,000 to ,000. Concluding his post, the analyst further encouraged investors to acquire Bitcoin, emphasizing that “dips are for buying in these markets.”
Bitcoin Ascent To $64,000 Causes Coinbase To Crash – Here’s What Happened
Not long after the value of Bitcoin surpassed ,000, its highest level since 2021, Coinbase had severe disruptions and issues on Wednesday afternoon, preventing some customers from signing in at all and causing some user accounts to reflect a balance.
Crypto aficionados were furious on social media because they are unable to access their money on the biggest cryptocurrency exchange in the United States. Furthermore frustrating, some customers have reported errors when buying and selling.
The continuous demand for Bitcoin is seen as main the reason behind the sudden crash of the Coinbase app. The leading cryptocurrency had a 40% price increase this month as a result of US bitcoin spot ETFs. This was the biggest monthly gain the digital asset had seen since December 2020, according to reports.
Bitcoin Price Action Today
With a ferocious start to March, Bitcoin’s unprecedented activity has positioned it for its biggest monthly gain in over three years on Thursday. Bitcoin is currently very close to reaching a new high due to the money flooding into listed bitcoin funds, which is driving a significant increase.
The world’s leading cryptocurrency briefly touched ,000 (the first rise above ,000 since November 2021), before partially reversing the gains. According to Coingecko data, BTC was trading at ,765. It was up 10% and 22% on a daily and weekly basis, respectively.
After plunging 64% in 2022, the value of bitcoin has more than tripled since the start of the year. That represents a remarkable comeback from a slew of scandals and bankruptcies that had raised concerns about the long-term viability of cryptocurrencies.
Are Coinbase Funds Safe?
Meanwhile, customers can now log back into the exchange, according to a statement from Coinbase, although users are still reporting issues with “certain payment methods” and issues with sending and receiving money.
I had .6 Million on Coinbase
and now it’s shows lol
WTF IS HAPPENING ? pic.twitter.com/BaV4pWjFo6
— Ash Crypto (@Ashcryptoreal) February 28, 2024
While acknowledging that “some users may see a zero balance” on all of their Coinbase accounts and may run into problems while purchasing or selling, Coinbase reassured customers that their money was secure. Additionally, the exchange made it clear that there have been significant delays in money transfers via the Ethereum ERC-20 network.
Coinbase, Binance, and Kucoin all down!! WTF is going on!!
— Kyle Chassé (@kyle_chasse) February 28, 2024
There are rumors of similar crashes on other significant exchanges, such as KuCoin and Binance. But there is still no proof to support these allegations.
The situation comes at a difficult moment for Coinbase, as more inexperienced investors are returning to the market for cryptocurrency trading and discovering they appear to have no assets.
Disappointed in Coinbase for this man.
It’s 2024, we must have our shit together. pic.twitter.com/VioBxw8am5
— MASON VERSLUIS (@MasonVersluis) February 28, 2024
The disruption at Coinbase is not unprecedented; in every bull market, there are technical problems that arise when the platforms cannot handle the volume of buying and selling. As a result, the lack of technological safeguards on sites like Coinbase to handle such problems infuriates members of the cryptocurrency community.
Featured image from Pixabay, chart from TradingView
Service Interruptions at Coinbase, Robinhood and Kraken as Bitcoin Soared to $64,000
On Wednesday, bitcoin’s value ascended to the vicinity of ,000, during which time users of Coinbase and Robinhood reported disruptions in service. As of Feb. 28, 2024, Coinbase’s status page indicated the platform was suffering from “degraded performance,” while Robinhood’s clientele voiced their grievances to the platform’s support team. Technical Troubles Shadow Bitcoin’s Climb to […]
Bitcoin News
Traders Taking Profit? Why Bitcoin Needs To Overcome $64,000 For The Next Leg Up
After printing a green candle in the low of its current levels, Bitcoin seems well underway to resume its bullish trend. As of press time, BTC’s price trades at ,324 with a 2.5% profit in the daily and sideways movement in the weekly charts, respectively.
Source: BTCUSD on TradingView.com
In the latter timeframe, Bitcoin has been range-bound after it was rejected at the high of its current levels with some volatility during the weekend as the market reacted to a massive BTC Options expiry.
In the short term, BTC bulls displayed some strength and managed to break through the sell barrier placed at ,000.
Now, the next major resistance sits at ,000 with much fewer selling orders at higher levels until ,000, according to data provided by Material Indicators’ Fire Chart for the BTC/USDT pair.
This suggests BTC’s price could quickly make a run towards that price target if it manages to flip its next resistance.
Source: MaterialIndicators.com
The chart shows the amount of resistance/support for the price of Bitcoin (represented in blue) indicated by the buying (below the price) or selling (above the price) orders.
In the short term, BTC could face some problems trying to get above ,000 as selling orders at these levels seem to be swelling with much less support to the downside until ,000.
In case of an increase in selling pressure, this level must hold, or Bitcoin could drop to its next major level of support at ,000.
In addition to this data, Jarvis Labs reports a rise in the number of traders taking profits for Bitcoin and Ethereum at current levels.
Jarvis also noted no variation in derivatives funding rates, but a rise in Open Interest (OI). With the fall in long positions, this could suggest traders are positioning to the downside, at least for the coming days.
Source: Jarvis Labs
Bitcoin The Best Bet For The Next Decade?
In higher time frames, Bitcoin and the crypto market in general display bullish fundamentals and two major drivers, as QCP Capital pointed out. These drivers are creating incentives for major players in other sectors to enter the crypto market.
First, the firm claims there is low volatility in the Forex market due to the continuation of the Quantitative Easing monetary policy adopted by central banks around the world. This has been detrimental for the sector, as opposed to the highly volatile crypto market, QCP Capital added:
With every government now able to fund themselves with QE, there is less need for tapping cross-border markets which in turn leads to an unusually subdued FX trading environment.
Second, inflation is becoming a more important topic among investors. Thus, why so many are gaining exposure to Bitcoin and the nascent digital asset class attracted by its limited supply and artificial scarcity.
18/ As an asset class that is exponentially gaining traction and with largely limited supply (in many coins and tokens) crypto is quickly becoming a clear winner.
— QCP Capital (@QCPCapital) November 2, 2021
Featured image from iStock, Charts from TradingView, JarvisLabs, and Material Indicators
NewsBTC
Bitcoin Price Breaks $45,000 For the First Time In Over 2 Months, Is $64,000 Possible Again?
Bitcoin price continues to see massive gains as the price sees massive recovery in the past weeks. Prices surged this past week which saw the digital asset beating prices that had not been reached since the price crash following the all-time high. Bitcoin had spent months in a rut, as dip after dip saw the price crashing down to as low as ,000.
Speculations following the dip were strongly in favor of the market finally being in a bear market. But it seems that the bull market is not done yet. The market has now seen recoveries across top coins. With some coins posting as much as 15% recoveries in a single day. Bitcoin has now, for the first time in two months, moved past the K mark.
Related Reading | Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst
With this incredible move, it is now left to see where this price bounce will land. The daily gains being seen in the coin price shows that this run-up might continue, with indicators in the market continue to remain bullish. Breaking K now puts the pioneer cryptocurrency on track to break an all-time high again. Maybe set a new record while at it.
New All-Time High On The Horizon?
Analysts have continued to believe that the price of bitcoin remains severely undervalued. With some calling for as much as 0K price targets for the asset before the year runs out. With bullish sentiment still in full gear, the price of the digital asset is most likely going to continue to go up.
Indicators like the Fear & Greed Index have moved out of extreme fear, and the last reading showed that the market has now moved out of fear territory completely. The indicator now sits at neutral for the past week. With readings for this week expected to fall into greed territory as more investors return into the market.
BTC price breaks north of K following run-up | Source: BTCUSD on TradingView.com
On-chain analysis also shows things like daily bitcoin transactions are now up a whopping 94% since daily transactions had tanked following the numerous price dips the asset had experienced.
Long-term analysis points to the rally still being in its early stages following the K break. Another surge is most likely going to send the price of the digital asset ricocheting into the K territory.
Investors Continue To Hoard Their Coins
Instead of selling their bitcoins, investors have now taken to withdrawing their coins from exchanges in order to hold them in personal wallets, according to on-chain analysis. Accumulation patterns now show that more coins are leaving exchanges than are being sent to exchanges.
The numbers show an active buy pressure in the market, which leads to the price of the coin going up as demand grows following buy pressures. News like Coinbase adding Apple Pay options to buy crypto also opens the market up to even more potential investors.
Related Reading | Bitcoin Accumulation Patterns Shows Rally Might Only Be In Its Early Stages
Trends show that investing in bitcoin is turning away from just making a profit in the market. Strong belief in the market and blockchain technology continues to draw staunch supporters into the market who believe cryptocurrency is the future.
With this, bitcoin’s price will most likely continue to see price increases. The rally is most likely to continue given that bulls have now taken over the market. And the price is responding to this takeover.
Featured image from BlockPublisher, chart from TradingView.com
NewsBTC
Fundstrat: Bitcoin to Hit Between $20,000 and $64,000 by End of 2019
The team of financial researchers of which famed Bitcoin advocate Tom Lee is part of has some extra bullish predictions for Bitcoin’s end of 2019 price. Fundstrat’s Sam Doctor wrote earlier today that the price of Bitcoin could reach anywhere between ,000 and ,000 next year.
Fundstrat Release Second Bullish Call in a Week
Sam Doctor’s prediction was explained in a note to Fundstrat’s clients. It set out the reasoning behind such a call, claiming the gains would be a product of the mining process used to verify transactions on the network and release the remaining Bitcoin of the 21 million total. The thinking is that the cost of mining a single Bitcoin has proved solid support in the past. As the difficulty of mining increases, so too will this level of strong support. According to Bloomberg, the note read:
“Bitcoin miners verify and process transactions, supporting the network in exchange for mining rewards and transaction fees… We argue that the Price/Miner’s Breakeven Cost multiple has proven a reliable long-term support level, and further, that the likely trajectory of future mining infrastructure growth should underpin Bitcoin price appreciation into year-end 2019.”
Earlier this week, Fundstrat managing partner Tom Lee predicted a short term rally in the Bitcoin price. He feels that the annual Consensus conference happening next week could cause the kind of gains that would push the asset back above the ,000 mark – potentially by a fair bit.
The 2018 Consensus conference is being held in Manhattan from May 14-16. It’s thought that almost 7,000 cryptocurrency proponents will be in attendance making it one of the industry’s largest.
Lee highlighted in his note to Fundstrat clients that each of the four previous Consensus events had seen the price of Bitcoin gain between 10 and 70 percent over the course of the conference. In fact, he went further than this. He stated that since Bitcoin was currently down on its opening price of the year, the rally could be even greater than those previous. This could see the digital asset hitting close to its all-time highs of just short of ,000.
This week’s double bull call from Tom Lee and Sam Doctor is far from the first time that Fundstrat have been optimistic about the price of Bitcoin. Lee has previously said that a long-term target of 0,000 is conceivable. He has also stated that by the end of 2018, one of the 21 million total BTC units will cost around ,000. His predictions have been proved correct in the past too. The mid-2017 call of ,000 within a year from him making it was smashed just months later – much before the parabolic bubble-like run that rounded off 2017.
Featured image from Shutterstock.
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