The crypto market is on fire this week, with Bitcoin price exploding well above ,000 and the rest of the market outperforming the leading crypto by market cap.
However, even though prices are taking off across the market, according to the Fear and Greed Index, the market is still in extreme fear. One crypto analyst says that prices rallying while investors are fearful is suggests the market is in a classic disbelief phase and following should be the first signs of hope of a sustainable long-term recovery in the digital asset class.
What Phase Is the Crypto Market Cycle In?
Crypto analysts have long argued over what stage of a classic market cycle the market is in. All markets are cyclical in nature, and the crypto market is no different.
Financial markets and even crypto assets go through regular, alternating periods of uptrend and growth, followed by downtrend and decline.
Related Reading | Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful
During these cycles, investors experience specific sets of emotions depending on where they are in each cycle. For example, when a top is near, and a cycle is about to peak, investors tend to be irrationally exuberant in their expectations for continued growth.
At that stage, investors often think they’re somehow a genius, and are about to strike it rich. They are blinded by their portfolio numbers increasing by the day and don’t see the collapse coming right in front of them.
The inverse is true at the bottom.
Classic Disbelief Phase Could Leave Investors Behind When Bitcoin Takes Off
Crypto investors have been mentally conditioned to expect more downside, have become fed up with the asset, and have lost hope for a recovery. This is called the disbelief stage and sneaks up on unsuspecting investors who have often have just been shaken out during a downtrend.
Crypto sentiment at peak fear
As the asset begins to pick up positive momentum once again, investors ignore the signals that an uptrend is starting.
They simply don’t believe the recovery is real or will have legs, and don’t take a position. Sooner than later, the asset has taken off on a powerful rally, and investors must FOMO-buy back into the asset at a higher price than they would have liked to, because they ignored the early signs that a recovery was taking place.
Related Reading | Is the Coronavirus The Black Swan Event That Crushes Cryptocurrency?
Bitcoin and the rest of the crypto market has nearly doubled since the extreme low set back in mid-March, meanwhile, the crypto market Fear and Greed Index remains in a state of extreme fear, showing that this very well could be the disbelief rally that leaves burned and beaten investors in its dust, as the asset class takes off to new highs.
Featured image from Shutterstock
NewsBTC
Why Has Bitcoin SV (BSV) Plunged By 40% From Its $450 Peak?
Aside from Bitcoin, there’s almost no other crypto asset that has been talked about as much as the Satoshi Vision fork (BSV) over the past week. The past seven days for the now-fifth largest cryptocurrency by market capitalization have been rather tumultuous, with the cryptocurrency starting the week off flat to explode higher from just above double digits to a high of 0, representing a nearly 200% rally in three days.
But as fast as the asset has rallied, so too has it collapsed. As of the time of writing this, the third-largest chain with “Bitcoin” in its name is down 18% in the past 24 hours, a period during which BTC, Ethereum, and other market leaders gained 4%, sometimes more.
Related Reading: Research Firm: 3 Use Cases Could Send Bitcoin To Trillion
Bitcoin SV Has Crashed 40% From Local Peak; Why So?
Over the past few days, since hitting 0, Bitcoin SV has fallen off a proverbial cliff, crashing almost as fast as it rallied. As of the time of writing this article, BSV is trading 40% lower than its 0 peak, changing hands for 4.
This begs the question — what led to this oh so precipitous drop?
Related Reading: Ethereum’s Price is “Convincingly Bearish”: Here’s What Comes After 20% Week
Well, the crash coincides with news that Craig S. Wright, the primary proponent of BSV and a coder and entpreneur who claims to be Satoshi Nakamoto, does not currently have access to a Bitcoin stash he purports to have, which BSV proponents have said he will use to dump BTC and promote their version of the chain.
Former NewsBTC writer Tim Copeland confirmed in a report for Decrypt Media, which he edits, that Wright does not have the private keys that can be used to access the billions of dollars worth of BTC that Satoshi Nakamoto most likely mined when he was one of the only Bitcoin users. “The file that he’s received did not include private keys,” Andres Rivero, partner at Rivero Mestre law firm, told Decrypt.
With rumors that Wright has access to the keys seemingly coinciding with much of the buying pressure in the last week, this report, along with other observations that Wright may not have the keys he purports to have at the moment, could have contributed to BSV’s decline.
Not to mention, Nicholas Merten, a popular cryptocurrency analyst and the founder of the YouTube channel DataDash, argued that the recent surge in the altcoin may be one based on questionable market activity, and thus may not last:
Ignore the price moves of $BSV. Only .6M of volume is from exchanges open to US traders. The other 99.4% of daily volume is made up of mainly no-name exchanges and known wash trading exchanges that still deceive this space. They can basically dictate a false price.
— Nicholas Merten (@Nicholas_Merten) January 14, 2020
Related Reading: Bitcoin Price Signal That Preceded 4,000% Rally Forms Again, and It’s Huge for BTC
Others have echoed this, with Saunders of Nugget’s News arguing that “History has not been kind to those who acted on emotion rather than rationale,” noting that the recent rally in the popular altcoin is seemingly one based on emotion and not on rational thought, at least not yet.
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NewsBTC
XRP is Down 95% from Its 2018 Peak; What’s Next for the Embattled Crypto?
Despite what the news may imply, Bitcoin (BTC) is up on the year, having posted an over 70% gain. XRP, Ethereum, and other altcoins, on the other hand, have suffered, plunging under the weight of a volatile Bitcoin.
Some cryptocurrencies have been hurt more than others. The most hurt altcoin in the top 10 has to be XRP, which was recently noted by analysts to have collapsed by 95% since the euphoria of the 2018 peak.
Just look at the chart above, which shows that the cryptocurrency really hasn’t had the best past 24 months.
$XRP has lost 95% from the peak, there seems to be no use case for it & the company that created it just raised 0m in a C round (which is normally 10-20% ownership).
Did they essentially buy a large % of the crypto by proxy? Confusing. Theories? https://t.co/Og5Mb8vORd
— jason@calacanis.com (@Jason) December 20, 2019
About to Get Worse?
While 95% is already a painful loss for a cryptocurrency, let alone an asset in general, some say that it may get worse from here. Here’s more on why.
According to prominent cryptocurrency trader and commentator Jacob Canfield, it may still be a ways to go before it makes sense to even try investing in the cryptocurrency for the long haul. He even went as far as to say that one of his achievements over the past few years is telling his friends and family to not buy XRP in 2018 and 2019 due to the technical outlook on the charts.
Canfield added that to even think of considering recommending a long, he would wait until the cryptocurrency trades at .10 to .15 — 50% to 25% lower than current prices.
That’s not to mention that XRP-related sentiment recently took a hit.
Speaking to Forbes, Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, remarked that the aforementioned altcoin is likely to suffer more, despite XRP already trading at its lowest price in over two years. The prominent Bitcoin investor remarked that:
“XRP has been historically very sensitive to adoption-related news pertaining to banking and money services partners, since they represent the biggest clientele for Ripple’s services… We expect the cryptocurrency to slide further due to this news.”
Related Reading: Crypto Tidbits: Bitcoin Returns to ,200, Ripple Bags 0M Cheque, Tron CEO Donates to Greta Thunberg
Hope for XRP and Ripple Bulls?
Not all is lost for Ripple, though.
According to a report from Fortune, the company has just completed a massive funding round that values the company at billion, making Ripple one of the largest blockchain companies on the market at the moment. The investment that valued it at billion, 0 million — sourced from global investment firm Tetragon, Japanese pro-XRP finance-centric conglomerate SBI, and Route 66 Ventures.
Related Reading: Lightning Works: Bitcoin Podcaster Finds Restaurant Shunning Banks for BTC
Apparently, the funds, while not needed to fund operations, will give the company “Balance sheet flexibility” as it looks to hire upwards of 150 new employees in 2020 and introduce new overseas offices to facilitate said employee additions.
This Series C raise should help Ripple increase the adoption of solutions using XRP, potentially increasing demand for the cryptocurrency and, therefore, price with time.
Featured Image from Shutterstock
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Chainlink Peak Mimics Wyckoff Distribution Schematic, Altcoin Selloff Could Accelerate
The cryptocurrency altcoin known as Chainlink has had a banner year, bringing investors in the project gains of over 1,100% from trough to peak.
However, a violent selloff has begun in the asset, with investors taking profit following incredible returns it amassed throughout the year. The price action closely mimics a Wyckoff distribution schematic that suggests the selling will continue in the foreseeable future.
A Look Back At The Altcoin’s Year of Strong Performance
Ever since the crypto hype bubble popped, stories of crypto investors becoming rich overnight have all but dried up and have become little more than myths or fairytales harkening back to the days where irrational exuberance took control over the mainstream public.
But every now and again, an altcoin will come along that disrupts the industry and shocks the crypto community with massive gains. This year’s poster child for crypto moonshot is none other than Chainlink.
Related Reading | Ripple and Stellar Lead List of Worst Performing Altcoin Assets Year To Date
Starting off the year, talk of Google utilizing the altcoin got the world buzzing and the price skyrocketing.
Chainlink began 2019 at a price of roughly 29 cents per LINK token, and shortly after ballooned to .70 each. As is the case with any parabolic rally, the asset had a deep correction, but later found support and rallied once again.
After setting a third and final top, the crypto asset has been on a steady descent, and according to a comparison with the Chainlink price chart and a Wyckoff distribution schematic, the selling may only just be starting.
#chainlink #Wyckoff pic.twitter.com/yfXBQliLpg
— Moe (@Moe_mentum_) December 3, 2019
Wyckoff Theory Suggests Chainlink Distribution Has Only Just Started
According to Wyckoff theory, created by iconic analyst Richard Wyckoff, financial assets go through four distinct price action phases: accumulation, mark up, distribution, and mark down.
The accumulation phase would have occurred while Chainlink was at low prices near its bottom at the start of the year, and the mark up phase would have followed, taking the price of the asset to its all-time high.
But once it got there, profit-taking turned the tides, the trend reversed, and a selloff is now underway. If distribution is now in full effect, Chainlink’s price should continue to drop for the foreseeable future in a mark down phase.
Related Reading | Chainlink 2019 Gains in Danger, Massive Transfer of Wealth Incoming?
And with investors with so much room overhead for the asset to drop and still sell at a profit, the distribution could go on for a long time, until the asset’s price becomes attractive enough for altcoin investors to begin to re-accumulate once again.
Chainlink is currently trading at .09 cents, according to CoinMarketCap, down from its all-time high of .70 at its peak.
Featured image from Shutterstock
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Perceived Bitcoin Value Outpaced Peak Crypto Bubble Mania
It’s been an interesting and confusing year for Bitcoin price, with the crypto asset bottoming out in ,100 at levels of extreme fear and panic, then in just a few months growing 350% and once again causing talk of moonshots and Lambos across the market.
In fact, during the most recent “echo bubble” as it’s being called, the perceived value of Bitcoin exceeded that of the peak 2017 crypto bubble mania. However, price fell short of setting new high alongside the lofty price perception, and one analyst says that data point looks “bad” for Bitcoin, and says that prices of 20 in the year 2020 aren’t that “crazy.”
Bitcoin Perceived Price Value Reaches Crypto Bubble Levels
After a stellar year for Bitcoin, bringing investors who bought the bottom over 350% in gains from trough to peak, the crypto market has once again turned bearish. Following the top of the 2019 parabolic rally back in June, the market has slowly returned to a state of fear, panic, and despair.
Related Reading | Give Thanks For These Crypto and Bitcoin Black Friday Deals
But it was only a short time ago, that Bitcoin was trading above ,000 and talk of riches and million dollar BTC became commonplace once again. It was as if crypto investors suddenly forgot about a full year of bear market, and all of the pain it caused.
The irrational exuberance can be seen via the sentix Strategic Bias index, which assigns a score measuring the perceived price value of Bitcoin. The metric outpaces the hype and bias surrounding the peak of the 2017 crypto bubble, however, price failed to set a new high as well.
This looks bad…
The perception of value for #bitcoin exceeded the 2017 mania this year but price did not.
A change in perception like 2018 will likely drag the price down much further than the majority expect.
20 in 2020 doesn't seem crazy to me. pic.twitter.com/8G8vQWxaQA
— EX (@icoexplorer) November 29, 2019
The analyst who first called attention to this “bad” looking metric says that for “perception of value to exceed the previous levels and price fall short” it says “that selling pressure was so high,” and claims that that “hopium addict” crypto investors “provided liquidity” for boomers to unload their bags at a lot higher prices.
Because price perception so greatly outpaced the actual price in 2019, the analyst says that seeing prices of 20 per BTC in the new year wouldn’t be “crazy.”
Calls For New Lows At Recent Top Would Be Called “Crazy,” Not So “Crazy” Anymore
Given how exuberant crypto investors were at Bitcoin’s recent peak, any talk of prices of ,000 Bitcoin would have been met with much confrontation, calling such claims “crazy,” especially considering how quickly the first-ever crypto-asset ran up from the then bottom at ,100.
Related Reading | Should Bitcoin Investors Be Thankful It’s Thanksgiving?
Now, that fear has returned to the market, and Bitcoin is trading at prices back around the ,000 range it has already once broken down from, thinking that the bottom isn’t in and Bitcoin could reach prices around 20 in 2020, doesn’t sound so crazy anymore.
Featured image from Shutterstock
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Bitcoin Price Fractal From 2017 Peak Suggests Deep Drop is Coming
Bitcoin price is consolidating ahead of what most expect to be a major move – one that’ll set the trend for the coming months ahead and depending on the direction could confirm Bitcoin’s next bull run is here.
But a fractal – a repeating chart pattern – has appeared on current Bitcoin price charts that looks eerily similar to the price action that developed at the top of the 2017 bull run, and could suggest that a violent drop could be due soon.
Massive Head and Shoulders Fractal Matches All-Time High Top
Fractals are similar patterns that appear on progressively smaller scales. They’re commonly found throughout nature in everything from snowflakes to galaxy formations. They also appear in the price charts of financial assets and can help crypto analysts determined the market’s next move.
Related Reading | Bitcoin Price Downtrend Could Continue As Indicators Begin Pointing Down
One crypto analyst has spotted a potential fractal playing out on Bitcoin price charts – one that would suggest that a massive drop and drawdown may be ahead in the coming days.
As can be seen in the chart shared by the analyst via Twitter, a large, upward slanting head and shoulders pattern has formed at the top of the 2019 rally where Bitcoin price is currently consolidating for many months now.
#BTC $BTC #BTCUSD
I know some of you won't gonna like this one, let me say first that I'm still bullish on #Bitcoin, but this doesn't mean I can't post a bearisch chart.
Just something to keep in mind. pic.twitter.com/FlJOHPCzdK
— 𝓥𝓮𝓵𝓿𝓮𝓽
(@888Velvet) September 20, 2019
According to the pattern, it is in the process of confirming with a throwback to the broken neckline – something that occurs as much as 64% of the time.
Giving credence to the idea that this pattern will indeed confirm and breakdown, is the fact that the same pattern – or fractal – played out the same way at the top of the 2017 hype bubble. The top of the “head” in the head and shoulders pattern, was Bitcoin’s all-time high at ,000.
Could Bitcoin Price Collapse In the Days Ahead?
Should the same pattern play out, Bitcoin price could be due for an extended correction before the crypto asset finds support once again, and resumes its bull trend.
However, throughout the crypto community of analysts and traders, not a lot of weight is given to fractals. During the consolidation, other potential fractals have been pointed out, but haven’t been followed. While the patterns do appear to be similar, it could be pure coincidence and Bitcoin breaks up from here.
Related Reading | Crypto Analyst: Brutal Wyckoff Distribution Expected As Bitcoin Cools Offs
In addition, analyst are torn over the pattern Bitcoin price is currently in itself, with some saying it’s a bull flag, and others arguing that it’s a triangle – and fighting over it being symmetrical or descending – and now, a head and shoulders.
Regardless of what pattern Bitcoin price is in, volatility is reaching extreme lows, and when that happens, consolidation tends to resolve and it results in a powerful expansion. A decision will soon be made, and we’ll soon know if this potential head and shoulders pattern, also had legs.
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Next Bitcoin Bull Market Could Take Years, So How Long To Next Peak?
Long term price predictions for Bitcoin are always positive since very few industry analysts see things going south for the technology. This year has been very bullish for BTC, compared to the nightmare it had last year. Looking at the charts though could spell quite a long wait for the next market cycle peak.
Bitcoin Could Take Its Time To Reach Next High
BTC has made over 170 percent since the beginning of the year and while that is no mean feat, it doesn’t compare to gains in recent bull markets. In just three months in late 2017 the king of crypto surged 400 percent to hit its all-time high.
This time around the going seems a lot slower, especially considering the past ten weeks of sideways trading with little clear direction. The market cycles from boom to bust appear to be extending, with each one taking considerably longer than the previous. So, the big question remains, when can we expect the next cycle peak?
Crypto analysts have been looking at past bull cycles in an effort to determine the length of the next and we may have a bit of a wait. Josh Rager has observed that market bottoms to tops are not sharp movements so it could be a good few years until the next one.
“Each Bitcoin market cycle took significantly longer than the previous. Each market bottom to peak-high in price wasn’t as sharp. Next peak-high likely a few years away but good things come to those who wait”
Be patient with $BTC and the crypto market
Each Bitcoin market cycle took significantly longer than the previous
Each market bottom to peak-high in price wasn't as sharp
Next peak-high likely a few years away but good things come to those who wait pic.twitter.com/3ieCOeDG7r
— Josh Rager
(@Josh_Rager) September 9, 2019
His observations are similar to those from analyst ‘Moon Overlord’ who said something similar last week.
“Naturally as Bitcoin expands as does the velocity at which these moves take place. With each dollar added to the marketcap it becomes that much harder to grow and the percentages become more incremental. A bull market at this scale will take years to play out to full effect”
Naturally as Bitcoin expands as does the velocity at which these moves take place
With each dollar added to the marketcap it becomes that much harder to grow and the percentages become more incremental
A bull market at this scale will take years to play out to full effect pic.twitter.com/R7UhgRLAnB
— Moon Overlord (@MoonOverlord) September 4, 2019
Those charts do not offer a next peak, which could arrive somewhere in the middle of the next decade, but they do both agree that there will be one.
Really? That Long …
Other arguments for a shorter period to the next peak include the fact that Bitcoin is now considered a new asset class and previous data has been accumulated in less than a decade. Those charts also do not include institutional investment which has yet to weigh in and the fact that millions are now seeking safe haven, offshore hedges against government currency and economy manipulation.
In the short term there appears to be little demand for Bitcoin at current price levels and only when it drops into four figures do the buyers wake up. In the long term, patience will be the key.
Image from Shutterstock
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Bitcoin NVT Ratio: Top Predicting Signal Hits Highest Peak, Is a 50% Drop Ahead?
Bitcoin price is at a critical junction, with either a major bull run ahead or a deeper correction that could mean the bear market hasn’t yet ended. A powerful indicator called the NVT ratio – designed by one of the crypto community’s best and brightest – has been used to time the tops and bottoms of Bitcoin bubbles, and is currently showing that Bitcoin has fallen from the highest levels it’s ever reached.
The last three times Bitcoin reached such high NVT levels, it feel on average 50%. Could a similar drop be ahead? The signal also never signalled a bottom was in back in December, which could suggest that if Bitcoin does drop it could fall further than many are expecting.
Bull Market? Using NVT Ratio and Signal to Determine if Bitcoin Has Topped
Bitcoin is a powerful financial technology. So powerful, it often borders on religion, and many evangelists work tirelessly to spread the word about the first-ever crypto asset to the masses. Others contribute in other ways, dedicating research, analysis or some other kind of educational contribution, but still work toward the same goal of Bitcoin understanding and awareness.
Few have contributed as much to the crypto community as analyst Willy Woo, who created the Bitcoin NVT Ratio, or the ratio of the value of Bitcoin’s network compared to the value of the transactions being broadcasted across the network. Woo’s description of the NVT ratio as the “Bitcoin-land” equivalent to the “price-earnings ratio” in stock markets. But since Bitcoin is not a company, and doesn’t have earnings, NVT ratio can be used as a “proxy” to company earnings.
Related Reading | Why The Next Bitcoin Bull Run Could Eclipse The Last Crypto Bubble
The indicator successfully signaled the top of the 2017 rally, then almost immediately after signaled the sharp V-bottom structure in February 2018. The drop from peak to bottom was a nearly 70% drop, and ultimately, was not Bitcoin’s final bottom.
Later in 2018, NVT peaked again in July, resulting in a quick 27% fall that was quickly bought back up during the height of the ETF-approval speculation. Shortly after, NVT peaked again in August and stayed elevated until mid-November when Bitcoin plummeted to its eventual bear market “bottom.”
The drop in November to the December “bottom,” was a 58% fall. Averaging out the three major NVT ratio peaks to their eventual “bottoms” suggests that a nearly 52% drop could be in the cards for Bitcoin.
Chart created with TradingView
Bear Market? Indicator Never Signalled a Bottom Was In
It’s worth noting a few other factors that make the theory supporting NVT ratio as the best spot of tops and bottoms inconclusive.
For now, the indicator never signaled a bottom was in back in December 2018 the same way it did in February 2018. Either this means the indicator simply missed didn’t pick it up, or could mean that a bottom hasn’t actually been set.
Related Reading | Bubble Hasn’t Begun: Google Trends Shows Little Interest in ,000 Bitcoin
Many analysts have used the NVT ratio in their trading strategies with great success. The eccentric and outspoken top TradingView author MagicPoopCannon has repeatedly cited NVT as an important indicator he uses for Bitcoin price action and setting targets.
Bitcoin's 50 day EMA is right at 10k. If we break below that, we could see a major fall. Also, the NVT is finally flashing a sell signal again. The 50 EMA is very important right now. I'm expecting it to act as tremendous initial support, but soemtimes BTC DGAF.
— MAGIC (@MagicPoopCannon) July 14, 2019
Currently, MagicPoopCannon is expecting more downside in Bitcoin’s future based on the NVT indicator, however, the creator of the indicator himself remains bullish. The signal’s creator, Willy Woo says that “stage 1” of Bitcoin’s bull run has laid the foundation for the full bull run to begin. This suggests that while the creator of the NVT signal expects a pullback, he isn’t putting any additional faith in its ability to stop tops and bottoms.
Stage 1 of the bull market is completing, once we bottom stage 2 begins promising the long sustainable bull drive that takes us through all of 2020 (if BTC continues its personality). Stage 1 was trader driven dominance squeezing us up and driving fomo. Fomo complete, stage set. https://t.co/zOHDHQBE9o
— Willy Woo (@woonomic) July 28, 2019
However, tops and bottoms are only that in hindsight, until enough time has passed, it’s difficult to say with any certainty that a bottom has been set. The perfect example of this was throughout the 2018 bear market when most analysts expected support at ,000 to hold. For now, it’s advisable to consider that neither a top nor a bottom may be in for Bitcoin and to proceed with caution.
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Bitcoin Starting to Show Signs Of Local Peak, Crypto Collapse Inbound
Bitcoin (BTC) may have tapped ,100 on Thursday, rallying by 5% within minutes, but analysts are starting to fear that the crypto market is cooling… rapidly. The cryptocurrency is now down by 5% in the past 24 hours, finding itself at ,250 after bouncing off ,000 in a characteristic bout of volatility. This, in the eyes of countless traders, lends to the conclusion that Bitcoin is peaking in the short-term, and may be poised to collapse.
Bitcoin May Be Topping Out
Last week, Bitcoin Bravado’s lead analyst, Jack, suggested that bulls were quickly losing traction. Many quickly laughed this harrowing comment off as BTC rallied past ,300 earlier this week, breaking above a triangle formation that had seemingly been the last stand for bears in a surprising weekend move.
Yet, with Bitcoin falling from ,100 to ,000 today, Jack has doubled-down on his idea that “we have reached the bull exhaustion point” in this short-term market cycle. In a recent Twitter thread, the analyst broke down his thoughts, explaining why Bitcoin’s upside is limited and why the ,900 to ,125 region will act as somewhat of a price “magnet” in the coming months.
There are clear hints in the market we have reached the bull exhaustion point
00-8000 is our support level, once broken should turn resistance and then confirms reversal of trend
I think 00-5125 is a magnet in to Q3 2019
Here is what I think
pic.twitter.com/J1XWPq7dlW
— Bitcoin 𝕵ack (@BTC_JackSparrow) May 31, 2019
Firstly, Jack admitted that Bitcoin, more likely than not, will not see newer lows in this cycle, looking to the fact that from a high time frame point of view, the bull run is most likely on.
Yet, he notes that Bitcoin is most likely topping out, looking to the fact that when BTC moved above ,300, that marked the fifth portion of the Elliot Wave pattern, and that the ,800 resistance hasn’t been decidedly closed above. Bitcoin’s chart on shorter time frames also looks somewhat bearish. In fact, BTC has just broken below a descending channel and a medium-term trend line, and has topped twice at ,900.
With this, Jack explained that if Bitcoin revisits and closes under ,000, he would be inclined to suggest a steady pullback to ,900 into late-2019. Analyst Dave the Wave, like Jack, also believes that a collapse and close under resistance from here will send Bitcoin to the ,000 range, which is where this bullish move started.
Related Reading: Billionaire Investor: Bitcoin Likely to Consolidate Between k and k; Will BTC Plunge Lower?
Top pic.twitter.com/AA412Et3VA
— Ledger Status (@ledgerstatus) May 30, 2019
Fuel To Run
Bitcoin may have room and the fuel to run, despite what the aforementioned technical levels say. In a recent TradingView analysis, Filb Filb remarked that in early-2018, 7,300 BTC worth of shorts opened on Bitfinex in the ,600 to ,800 level. Assuming that some of these positions have yet to close, Filb explains that as the cryptocurrency market continues to push higher, shorts will become increasingly under pressure to cover, thereby buying BTC spot and pushing up prices as a result.
What’s more, he expects for the “Fear of Missing Out” (FOMO) and the 0.618 Fibonacci Retracement level to act as a magnet, potentially giving Bitcoin the legs to run to the ,000 range. With this, he concludes that “Bitcoin has enough in the tank to break ,000”.
He isn’t the first to have made such a suggestion. In a comment obtained by MarketWatch, Think Markets’ chief financial analyst Naeem Aslam revealed that he believes Bitcoin is still in a decidedly bullish state. He suggests that BTC is about to “blast past the level of ,000”. The analyst explains that BTC being far above its 50-, 100-, and 200-day moving averages suggest that bulls currently have their hand over the cryptocurrency wheel, opining that these technical levels “define the trend.”
Related Reading: Will Bitcoin Margin Trading Help Binance and Coinbase Survive Big Banks Entering Crypto?
Indeed, Bitcoin sure has the capacity to hit ,000. But, as put by Peter Brandt, “once a majority of sold-out crypto bulls capitulate [around ,000]… a more sizable correction will likely occur.”
Featured Image from Shutterstock. Charts Courtesy of TradingView.
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Crypto Markets Hit Ten Month Peak as Altcoins Crank Higher
Crypto markets at new yearly high; BSV manipulated, ETH, BCH, IOTA, Cosmos, NEO and NEM flying.
Market Wrap
More momentum today has driven crypto markets to a new 2019 high. The majors are still holding gains and some are cranking double digits at the moment leading to calls of ‘altseason’ once again. Total market capitalization has reached a ten month high at 0 billion.
Bitcoin is bouncing back yet again with no sign of this big correction in sight. From yesterday’s low of around ,500, BTC has wound back up to ,730 where it currently trades a couple of percent higher. Dominance, however, is dropping back towards 55 percent indicating larger gains for the altcoins.
Ethereum has made a bigger move today reaching its 2019 and ten month high of 5. Surging 7 percent on the day, ETH may well hit 0 before showing any signs of a correction. Its market cap has now reached billion which is 50 percent more than its closest rival, XRP, which is only managing to hold support.
There is a lot of green in the top ten during Asian trading today. Another manipulated scam has sent Bitcoin SV barreling up the charts and doubling in price as Chinese and Korean traders load up on fake news fomo. BSV has managed to top billion in market cap flipping USDT, XLM, ADA and TRX in one almighty pump. Bitcoin’s other offshoot, BCH, has also done well today with a 10 percent gain to reach 0. BNB is back at ATH with a 7 percent climb as EOS, LTC and XLM add 5 percent.
The top twenty looks a little different today with big gains for most. IOTA is still flying as it reaches .54 following yesterday’s announcement and Cosmos is also adding 13 percent. NEO and NEM have both pumped 14 percent and the rest are making solid gains.
FOMO: Fake News Scam Sends BSV to The Moon
With a gain of over 100 percent, FOMO is not strong enough to describe the Asian reaction to the fake announcement that floated around Chinese social media a few hours ago. A spoofed post from a Chinese crypto outlet said that Craig Wright had sent 50k of BTC from the original Satoshi account to one on Binance to prove is identity. The BS in BSV should stand for bullshit as this is exactly what they were reading.
Other variants of Bitcoin are also pumping today with Bitcoin Diamond surging 50 percent and Gold up 26 percent. It comes as no surprise that Aurora is dumping again as the chart for this coin looks like a sine wave.
Total crypto market capitalization is at a new 2019 high of 0 billion as billion flows back into digital assets over night. The last time markets were this high was at the end of July 2018 when things started falling fast. Almost a year later the momentum is going the other way as altcoins start cranking up once again.
Market Wrap is a section that takes a daily look at the top cryptocurrencies during the current trading session and analyses the best-performing ones, looking for trends and possible fundamentals.
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