The price of bitcoin (BTC) fell below the ,000 mark on Tuesday, reaching a low of ,050 on Bitstamp. At 10:10 a.m. Eastern Time, BTC was trading at around ,624 per coin. The last time BTC was in this price range was mid-May. Over the past 24 hours, .3 million in bitcoin long positions have […]
Bitcoin News
JP Morgan’s Latest Gold Warning Puts Bitcoin At Risk of Dipping Below $10K
- Bitcoin retreated by more than 2.5 percent in the early London trading session on profit-taking sentiment.
- The plunge almost mirrored a similar downside move in spot gold as the precious metal corrected lower shortly after coming at a striking distance of ,000 an ounce.
- Analysts at JP Morgan & Chase warned about gold peaking out, stating that the metal would trade downwards later in 2020.
The price of Bitcoin dropped by more than 2.5 percent in the first hours of the London trading session Tuesday on profit-taking sentiment.
The BTC/USD exchange rate climbed more than 11 percent to hit a year-to-date high of ,420 on Monday before retreating back by 2.83 percent to ,736 a day later. The pullback reflected traders’ inclination to liquidate their positions at the said price top.
Bitcoin-Gold Correlation
Incidentally, Bitcoin’s intraday price trend mirrored that of gold, a rival safe-haven asset. Like the benchmark cryptocurrency, the precious metal too corrected lower upon hitting its all-time high of ,980.57 an ounce. That was partially due to a growing correlation between gold and Bitcoin, according to data fetched by Skew.
Bitcoin-Gold one-month realized correlation hits 64.3 percent. Source: Skew
The proximity between the two left Bitcoin exposed to the macro fundamentals that drive gold prices.
In the short-term, the precious metal looked towards extending its rally owing to a weaker US dollar sentiment, central banks’ open-ended stimulus programs, and rising fears of inflation among investors (the real yield on US 10-year Treasury fell into the negative zone).
Earlier today, analysts at Citi also raised their upside price target for gold to ,100 an ounce. It may help Bitcoin sustain its bull run, as well.
A Warning, Nevertheless
Amid the bullish woes, strategists at JP Morgan warned about an imminent downside correction in the gold market.
The analysts said in a report Monday that the precious metal is nearing its peak level. Such moves, especially after a 28 percent rally, amounts to a pullback. Excerpts:
“Gold will likely see one last hurrah before prices turn lower into year-end.”
XAUUSD turns lower after setting a YTD high during the Asia trading session. Source: TradingView.com
The bank added that they are still not bearish on gold as they confirmed adjusting their bias to neutral, instead. Meanwhile, Wayne Gordon, executive director for commodities and foreign exchange at UBS’s wealth management unit, also noted that gold cannot rise forever.
At best, the precious metal would rise to ,300 but risks correcting should central banks limit the pace of their easing programs.
A less appealing safe-haven market would serve as a backdrop for the next Bitcoin correction, so it appears. Nevertheless, it is also likely for the cryptocurrency to establish crucial support above the ,000-10,000 region.
JP Morgan added that the Federal Reserve will attempt to keep inflation below 2 percent. That would further cool down the ongoing safe-haven rallies.
JPMorgan Dipping its Toes into the Ethereum Ecosystem Could Be Bullish for ETH
Banking giant JPMorgan has offered mixed signals when it comes to their thoughts on cryptocurrencies, with the bank’s CEO frequently bashing Bitcoin and other cryptocurrencies, despite offering their own intra-bank digital asset dubbed JPM Coin that is built upon the Ethereum (ETH) blockchain.
Now, it appears the JPMorgan could be dipping its toes into the Ethereum ecosystem, as news recently broke that the financial institution is looking to merge its blockchain unit with ConsenSys.
Analysts believe that this potential merger would be highly bullish for Ethereum’s price action.
JP Morgan Looks to Merge Blockchain Unit with Ethereum Powerhouse ConsenSys
The upcoming merger, which was announced in a recent report from Reuters, is expected to be formally announced in the next six months, and all the details surrounding this event still remain foggy.
It is important to note that JPMorgan’s blockchain unit – called Quorum – is built upon the Ethereum network, which makes ConsenSys – which is led by Ethereum co-founder Joe Lubin – an obvious merger target due to its heavy involvement within the Ethereum ecosystem.
Ethereum is currently trading up just under 2% at its current price of 6, although its intraday climb likely has less to do with investor’s excitement surrounding this possibility, and more to do with Bitcoin’s rise to ,000.
If this partnership does materialize, however, it will likely generate some buzz surrounding Ethereum, and possibly lead retail investors to “fomo” into fresh positions.
Just How Bullish is This News for ETH?
Although it is unlikely that the cryptocurrency’s current price action will be influenced by this news due to the lack of details surrounding it, analysts do believe it is firmly bullish for ETH in the long-term.
Satoshi Flipper, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that this merger could be JPMorgan’s attempt to increase its presence within the enterprise blockchain arena prior to the launch of ETH 2.0.
“So why is this so bullish for #Ethereum? Because cash is king and JPMorgan has much of it. With the pending release of 2.0, JPMorgan could desire an increased presence in the enterprise blockchain arena. And #Ethereum is a quick ticket to get there,” he explained while referencing the news report.
So why is this so bullish for #Ethereum?
Because cash is king and JPMorgan has much of it.
With the pending release of 2.0, JPMorgan could desire an increased presence in the enterprise blockchain arena.
And #Ethereum is a quick ticket to get there. https://t.co/giJ7JS6oOv
— Satoshi Flipper (@SatoshiFlipper) February 11, 2020
Because it could be another six months before there’s a formal announcement regarding this partnership, there is still a lot of time for things to change, which is likely leading Ethereum investors to express some caution when it comes to trading this news.
Featured image from Shutterstock. The post appeared first on NewsBTC.
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Analysts Believe Bitcoin May Continue Dipping Lower Before Surging to $6,500
The crypto markets have dipped as they head into the weekend after incurring a significant amount of upwards pressure throughout this week. The latest drop has put Bitcoin (BTC) back into the ,600 region, signaling that the cryptocurrency’s bulls don’t have enough buying pressure to propel the crypto above ,800.
Now, analysts believe that the crypto markets may continue dipping lower before they hit a price level at which they can continue surging higher.
Bitcoin Drops Into ,600 Region
At the time of writing, Bitcoin is trading down over 2% at its current price of ,675, down from its daily highs of nearly ,900 which were set yesterday.
Prior to today’s dip, analysts were closely watching the ,000 level to see if the crypto would be able to break into this price region, with some analysts claiming that a decisive move into the ,000 region would mark the start of the next bull market.
Big Chonis, a popular crypto analyst on Twitter, shared his thoughts on Bitcoin’s current price action in a recent tweet, explaining that BTC’s previous daily resistance is now acting as support, which may be a bullish sign.
“$BTC – Don’t get too bearish just yet, as previous daily resistance is being tested as #bitcoin support… a break of the ,300 area would be a bit more worrisome that a larger correction is taking place,” he explained.
$BTC – Don’t get too bearish just yet, as previous daily resistance is being tested as #bitcoin support… a break of the ,300 area would be a bit more worrisome that a larger correction is taking place… pic.twitter.com/r1MbAWQ5ke
— Chonis Trading-
(@BigChonis) May 4, 2019
BTC May Dip Lower Before Breaking Above ,000
Although it is clear that Bitcoin isn’t quite ready to move into the ,000 region, today’s dip may not be low enough for the crypto to garner any significant buying pressure that allows it to continue surging higher.
Peter Brandt, a celebrated analyst who covers a variety of assets and markets, spoke about Bitcoin in a recent tweet, saying that its recent highs may be a top that leads it to fall towards lower before it incurs enough buying pressure to propel it towards ,500.
“Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction,” Brandt explained.
Just an opinion — there is a chance $BTC is topping here, having met its price target at key resistance. A correction could occur before another move toward 6500, then a more significant correction. pic.twitter.com/woetnihqB5
— Peter Brandt (@PeterLBrandt) May 4, 2019
As the weekend continues on and traders gain a better understanding of how secure Bitcoin’s current position within the mid-,000 region is, it will likely become clearer as to whether or not a move to above ,000 is in the cards in the near-future.
Featured image from Shutterstock.
The post Analysts Believe Bitcoin May Continue Dipping Lower Before Surging to ,500 appeared first on NewsBTC.
Almost All Top 100 Coins in Red, Bitcoin Holds Weekly Gains After Dipping Below $5,500
n After breaking a new high of above ,600, Bitcoin dipped below ,500 today, while almost all the top 100 coins by market cap have seen major lossesn
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Major Coins Show Poor Performance, With Ethereum Dipping Below $100
n Almost all top twenty cryptocurrencies are down today, with total market capitalization showing a steady downtrend over the past monthn
CryptScout #BitFeed RSS – Bitcoin and Cryptocurrency News 24/7
Bitcoin Cash Extends Loss to 7%, at Risk of Dipping to New All-Time Low
Bitcoin Cash (BCH) remains bearish on Friday as the vortex adjoining last week’s controversial hard fork continued to inject the market with negative sentiments.
The BCH/USD, after aggregating market cap of the original BCH and the forked Bitcoin ABC, is trading at 206.79, down 6.57 percent from its intraday high at 221.34. The pair in the past hour has corrected higher, but the volume of the small uptrend is dying. What it indicates at it is at most a bearish pennant, forming because of the execution of short positions. It shows overall that BCH/USD will likely extend its losses, perhaps to an all-time low.
The technicalities have least to do what’s taking place in the BCH/USD market, which has lost circa 64% market cap in the past two weeks. It has to do more with the ongoing spat between the backers of two resulting chains after the Bitcoin Cash fork. While Bitcoin ABC, the Roger Ver-led version of BCH, has come out a clear winner as far as hash power is concerned, Dr. Craig Wright’s Bitcoin SV is not conceding defeat. Instead, Dr. Wright himself is threatening ABC that he would disrupt their chain via double spending or relay attacks.
“We all know how Craig Wright functions,” Ver told CNBC. “There will surely be a lot of threats from his side as well as the SV team. After the entire hard fork debate, he has even started attacking Ripple’s XRP, which means he is just out there to seek attention.”
No End in Sight
While Ver and Dr. Wright race each other without knowing the finishing line, it is the market that is losing patience. It has taken a combined total of .40 million to mine ABC and SV worth .72 million. Dr. Wright, in one of his threats, has cleared that he will be paying his bills by dumping the original Bitcoin unless it hits ,000. Ver, on the other hand, has confirmed that he has support from all the leading mining pools and exchanges, so there is no way ABC is backing down before the SV team’s empty threats.
So far the two camps of Bcash have:
… spent .25million to mine .9million of $BCHABC (.35mil loss)
… spent .15million to mine 0,000 of $BCHSV (.78mil loss)The combined value of $BCHABC and $BCHSV is less than 50% of the value of 1 $BCH pre-fork
— Alistair Milne (@alistairmilne) November 20, 2018
Investors, at the same time, have enough excuses to leave the market and pool their funds into something more stable and robust unless the crypto market returns to its senses. The combined value of Bitcoin ABC and Bitcoin SV is now less than 50% of the BCH value before the fork. It shows that retail traders’ patience is wearing thin by each passing day and he would most likely dump than wait. At the same time, how long miners can support a bearish BCH is a thing to see as well.
The BCH/USD is now eyeing its all-time low at 198 as potential support. A breakdown below it will likely open the market towards a free fall, with no bottom in sight.
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Bitcoin Price Watch: BTC/USD Rebounds After Dipping To $6,100
Key Points
- Bitcoin price declined further and traded below the ,200 support level against the US Dollar.
- There is a short-term connecting bearish trend line in place with resistance near ,380-6,400 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is currently rebounding but it is likely to face many hurdles near ,450 and ,510.
Bitcoin price extended losses below ,200 against the US Dollar. BTC/USD traded towards ,100 and is currently rebounding on the road to the ,510 resistance.
Bitcoin Price Analysis
There was no recovery in bitcoin price yesterday above the ,600 level against the US Dollar. The BTC/USD pair extended losses and broke the ,400 and ,300 support levels. It traded close to the ,100 level and formed a low at ,106. Later, buyers took a stand the price started an upward move. It corrected above the ,200 and ,250 levels to set the pace for a decent recovery.
At the moment, the price is trading near a key hurdle at ,400. The 23.6% Fib retracement level of the recent slide from the ,157 high to ,106 low is acting as a resistance. Moreover, there is a short-term connecting bearish trend line in place with resistance near ,380-6,400 on the hourly chart of the BTC/USD pair. It seems like the price may dip a few points before it could move past ,400 and ,450. The next important resistance above ,450 is near ,510. It represents the 38.2% Fib retracement level of the recent slide from the ,157 high to ,106 low. Therefore, recoveries from the current levels are likely to face resistances near ,450 and ,500.
Looking at the chart, the current price action is indicating a short-term recovery in bitcoin above ,400. However, gains could be limited and the price may perhaps resume its slide below ,300 in the near term.
Looking at the technical indicators:
Hourly MACD – The MACD for BTC/USD is slowly moving in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI is currently near the 40 level.
Major Support Level – ,200
Major Resistance Level – ,510
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Bitcoin Price Rebounds to $10,500 After Dipping Below $9,000
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