On Monday, June 24, 2024, the Mt Gox bankruptcy trustee declared that reimbursements are slated to commence at the start of July. The trustee explained that disbursements will be made in bitcoin and bitcoin cash and sent to designated exchanges. After Ten Years, Mt Gox Trustee Announces July Start for Repayments Approximately billion worth […]
Bitcoin News
Wait For Bitcoin At $20,000? This Analyst Says No
An analyst has explained using on-chain data that Bitcoin has a major demand bucket at the current price levels, so it won’t hit ,000 anytime soon.
Huge Bitcoin Buying Occurred Inside The ,000 To ,000 Range
In a new post on X, analyst Ali has explained that some large entities accumulated at the ,000 to ,000 range. The indicator of interest here is the “UTXO Realized Price Distribution” (URPD), which, in short, tells us about the amount of Bitcoin that was acquired at the different price levels of the cryptocurrency.
Here is a chart that shows how the URPD of the current Bitcoin market looks like:
Notice that the URPD here is “ATH-partitioned.” What this means is that the price ranges here have been defined by creating 100 equally spaced partitions between zero and the all-time high (ATH) of the cryptocurrency.
From the graph of the Bitcoin URPD, it’s visible that the price levels between ,000 and ,000 are host to the cost basis of a particularly large amount of the supply.
Ali notes that most people, including major institutional investors like Michael Saylor’s Microstrategy and Elon Musk’s Tesla, purchased a significant number of coins between these levels.
The levels being so dense with supply isn’t only significant because of the fact that these large entities believe those prices were worthy buys, but also due to how investor psychology tends to work out.
Generally, whenever the price retests the cost basis of a holder, they may become more probable to show some reaction. How they would react depends on their sentiment and profit/loss status prior to the retest.
If they had been i9n profits before the price declined towards their cost basis, they may believe the price would go up again in the future so they would accumulate more at the dip.
On the other hand, them being at loss before may make them sell at their cost basis, as they would find the idea of breaking-even more enticing than potentially going back into losses.
There are some dense price buckets above the current level, meaning that BTC could feel resistance when it would retest them due to such investors exiting at their break-even.
If Bitcoin declines instead, however, it could feel strong support, as the buckets below are zones of some pretty major demand, so at least some of these investors might be inclined to buy more at these same levels. Thus, a decline below this range could be unlikely for the cryptocurrency.
“So when they tell you “It’s too late to buy BTC” or “Wait for k,” please ignore them!”, advises the analyst.
BTC Price
Bitcoin is up almost 7% during the past week, but the coin’s surge has slowed down recently as its price has mostly been consolidating around ,500.
7 Spot Bitcoin ETFs Face Extended Wait as SEC Seeks Deeper Analysis
The U.S. Securities and Exchange Commission (SEC) has deferred decisions on seven spot bitcoin exchange-traded fund (ETF) applications from Invesco Galaxy, Wisdomtree, Bitwise, Vaneck, Fidelity’s Wise Origin, Blackrock, and Valkyrie. In statements released on Thursday, the SEC underlined the necessity for a more extended timeframe to thoroughly assess the submitted propositions.
SEC Delays Spot Bitcoin ETF Decision for 7 Major Applicants
On August 31, the U.S. securities overseer resolved to postpone its verdict in order to allocate a lengthier period for scrutinizing the proposed rule amendments for seven distinct spot bitcoin ETFs.
The regulator elaborated that this step ensures ample time for the SEC to meticulously examine the proposal and address any worries raised.
Decisions for the collection of filings originating from Wisdomtree, Valkyrie, Bitwise, Fidelity’s Wise Origin, Vaneck, Blackrock, and Invesco Galaxy will be extended until mid to late October. Unfortunately, the Bitwise filing hosted on the SEC web portal leads to a 404 website error.
“The [SEC] deems it suitable to designate an extended duration within which to act on the proposed rule change so that it has adequate time to contemplate the proposed rule change and the matters raised therein,” the Wisdomtree delay notification elucidates.
This deferment comes on the heels of Grayscale’s recent legal triumph and Bloomberg ETF specialists Eric Balchunas and James Seyffart estimating a 75% possibility of spot bitcoin ETF authorization in 2023. The U.S. regulator started reviewing the applications over the past month.
Blackrock was the first to roll the dice in 2023 to try and secure approval for a spot bitcoin ETF following numerous rejections by the U.S. securities watchdog in prior instances over the years. Subsequent to Blackrock’s initiative, several other firms pursued similar aspirations in hopes of gaining approval as well.
While the SEC has authorized bitcoin (BTC)-based futures ETFs, it has not yet approved any spot bitcoin funds within the United States. Balchunas said on Thursday, that despite the delays, the chances of approval are still at 75%.
What do you think about the SEC delaying seven spot bitcoin ETFs on Thursday? Share your thoughts and opinions about this subject in the comments section below.
Post-Shapella Hard Fork: Ethereum Deposits Exceed Withdrawals, Wait Time Climbs, ETH Transfer Fees Jump
It has been a week since Ethereum’s Shapella hard fork, and statistics indicate that ethereum deposits on April 18 have exceeded withdrawals for the first time since the upgrade. At present, 929,999 ether worth .94 billion is pending withdrawal, and over the past three days, 112,568 ether has been added to liquid staking protocols.
Just Under a Million Ether Worth Close to B Waits to Be Withdrawn; Average Network Fee Jumps Over Per Transfer
Since the Shapella upgrade, market participants have been closely monitoring Ethereum withdrawals as there was a lot of debate in the past over whether there would be massive sell pressure on the market. However, as of April 18, 2023, that has not been the case. Ethereum (ETH) is up 9% against the U.S. dollar over the past seven days.
During the week, withdrawals and those waiting to withdraw have continued to climb, and currently, just under a million ether, or 929,999, is in line to withdraw. On Tuesday, Nansen.ai statistics show that deposits have outpaced withdrawals, a first since Shapella was implemented on April 12.
Shapella enabled ethereum stakers to withdraw both the full balance of a validator or a validator’s consensus layer rewards. When a full validator removes their 32 ether, they are deactivating their validator position as a whole, while partial withdrawals allow stakers to simply withdraw rewards earned over the period they started staking.
The withdrawal queue can take days for people, and statistics currently show that some unstaking participants will wait close to 20 days to unlock their funds. On Tuesday, data showed that deposits moved above withdrawals, with ether being added to liquid staking protocols like Frax, Lido, and Rocketpool this week.
According to liquid staking metrics from defillama.com on April 15, 2023, 8,030,870 ether was locked into liquid staking derivatives platforms. As of today, that number has increased to 8,143,438 ether worth .10 billion using current ETH exchange rates. The total value locked (TVL) in the liquid staking protocol Lido is .65 billion, which has increased by 1.86% over the last seven days.
In terms of the 8.14 million ether staked, Lido accounts for 74.22% of the market share with 6,044,058 ETH staked. While Coinbase’s Wrapped Staked Ether protocol shed 2.84%, Rocket Pool recorded a 4.37% increase. Seven-day metrics also show that Frax Ether’s protocol TVL increased by 13.01%.
Data shows that the annual percentage rate (APR) for staking ethereum is currently 4.87%, according to token.unlocks data. Statistics indicate a jump in higher Ethereum network fees during the week, as bitinfocharts.com data shows the average Ethereum network transaction fee is 0.0059 ETH or .45 per transfer, while the median-sized Ethereum network transaction fee is 0.0025 ETH or .30 per transfer.
Etherscan.io’s gas tracker tool says a high-priority transaction will get through for 51 qwei or .92 per transaction. An Opensea sale costs .10, a Uniswap v3 swap costs .02, and to send an ERC20 like Tether (USDT) will cost an estimated .63 per transfer.
Do you think the trend of increasing deposits will continue? Share your thoughts about this subject in the comments section below.
Why Rich Dad, Poor Dad Author Will Wait For Bitcoin To Drop To $1,100 Before Buying More
Best-selling author Robert Kiyosaki offered his followers a “Rich dad lesson” on Bitcoin. Via his official Twitter account, the writer made a distinction between “winners” and “losers” in the crypto market.
Related Reading | Reports: FTX Targeting BlockFi Purchase At M
At the time of writing, Bitcoin has lost major support as it broke below ,000 and it’s currently trading at ,900 with a 6% loss in the last 24 hours. The cryptocurrency has lost over 75% of its value since reaching an all-time high at ,000.
BTC’s price trends to the downside on the 4-hour chart. Source: BTCUSD Tradingview
At those levels, the Rich Dad Poor Dad author was a buyer and seemed more enthusiastic about BTC’s price future appreciation. Now, he has made a 180 degrees shift in his speech publicly bashing those investors which he classified as “losers”.
Kiyosaki’s full message is rather grim, and might be aiming for an impossible level, for Bitcoin to crash all the way down to ,100:
RICH Dad lesson. “LOSERS quit when they lose.” Bitcoin losers are quitting some committing suicide.’WINNERs learn from their losses. I am waiting for Bitcoin to “test” 00. If it recovers I will buy more. If it does not I will wait for losers to “capitulate” quit then buy more.
In the past, Kiyosaki highlighted ,000 as the “buy the dip” level. The author called the cryptocurrency a hedge against inflation and called the BTC’s price crashing “good news” and predicted a “time to get richer” by increasing his holdings.
The author was bullish on BTC and precious metals, but it’s unclear what has caused him to shift his views. On a different occasion, Kiyosaki foresaw the start of a depression, preceded by a “giant crash” across global markets.
The main trigger for this scenario is the U.S. Federal Reserve (Fed) and its attempts to slow down inflation, which is currently at a 40-year high. At that time, Kiyosaki said:
BIDEEN & FED need inflation to prevent New Depression. Inflation rips off the poor. Inflation makes rich richer. Biden and Fed corrupt. Prepare: Giant crash then new depression. Be smart Buy, gold, silver Bitcoin.
Should You Listen To Robert Kiyosaki?
Kiyosaki was almost right when he predicted Bitcoin would reach an all-time high near ,000. However, as crypto users pointed out, he has been mostly wrong about his BTC’s price prediction.
As seen below, Kiyosaki has been talking about this doomsday scenario for over a decade. In 2017, he tweeted about a potential crash in the real estate market, this prediction proceeded a major bull run in the sector.
Kiyosaki’s market predictions across the past decade compared to the S&P 500. Source: Fintwit via Twitter
Related Reading | TA: Bitcoin is Plunging, But It’s Too Early to Say Bulls Have Given Up
Therefore, it seems wise to take his words with a grain of salt. The crypto market seems soft and susceptible to macro-conditions, but for BTC to return to the ,000 levels seems unlikely.
Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode
Over the past few hours, the price of bitcoin has deviated from a key level of support and fallen below ,000. The transaction history reveals that many addresses purchased Bitcoin for more than ,000. These market players would soon liquidate their holdings to prevent further losses, which would set off a decline toward ,000
Inflation Warnings Affect Bitcoin Price
Due to major inflation worries and rate hikes indicated by central banks, particularly the US Federal Reserve, BTC has almost lost half of its value over the previous month.
Bitcoin’s market valuation has fallen from .27 trillion in November 2021 to under 6 billion at present.
Jerome Powell, the chairman of the Federal Reserve, reaffirmed the Fed’s commitment to raising interest rates in order to reduce inflation. He stated during the ECB meeting that the challenge of inflation was more concerning to him than the potential for rising interest rates to cause the U.S. economy to enter a recession.
“Is there a risk we would go too far? Certainly, there’s a risk,” Powell said. “The bigger mistake to make – let’s put it that way – would be to fail to restore price stability.”
BTC/USD falls below k. Source: TradingView
Powell argued that the Fed needs to quickly raise rates because a gradual hike may give consumers the impression that increased commodity prices would not go away. He said that rate increases might be lessened before the next year.
Related reading | Doom To Fail: Tether Shorts Pile In As Hedge Funds Seek To Profit From Crypto Winter
Following Powell’s remarks, U.S. equity market futures declined, with those for the S&P 500 dropping 1.59% and those for the tech-heavy Nasdaq 100 losing 1.9%. Asian markets were down, with the Asia Dow index and Japan’s Nikkei 225 both down 1.54%.
Data Suggests Whales Are Waiting
On-chain data on CryptoQuant suggests that most traders are awaiting the next significant price decline. The price anticipation appears to be for a short-term opportunity, though.
On-chain data also implies that big whales are waiting for a good opportunity to accumulate cryptocurrencies, not only tiny and average traders. Data shows that, interestingly, whales’ holdings in Bitcoin are not now growing.
This demonstrates unequivocally that the whales are awaiting a better opportunity. Whales’ holdings between 100 and 1,000 and between 1,000 and 10,000 Bitcoins currently exhibit a flat line.
Related reading | Bitcoin Slides Under K – Another Collapse In The Offing?
Featured Image from Pixabay and Chart from tradingview.com
NewsBTC
THORChain Deploys Mainnet After 4-Year Wait, RUNE Soars 13% In 24 Hours
THORChain has been trading in the green and recovering faster than larger cryptocurrencies. The development team behind this project, Nine Realms, announced the launch of their mainnet after 4 years of development and research.
Related Reading | Cosmos (ATOM) Price Swells 12% – Can It Breach Resistance?
At the time of writing, THORChain (RUNE) trades at .30 with a 14% and 35% profit in the last 24 hours and 7 days respectively. The market seems to be positively reacting to the announcement.
RUNE with minor gains on the 4-hour chart. Source: RUNEUSDT Tradingview
As part of the announcement, crypto users on the Binance exchange will be able to participate in a promotional campaign and earn part of a total million price. Via an official post, the team behind THORChain said the following celebrating the project’s major milestone:
Mainnet marks the achievement of a fully functional, feature-rich protocol with a large ecosystem and strong community. It has been a long time coming and the community is very excited about this important milestone.
Before mainnet, THORChain was operating with the Multichain Chaosnet (MCCN) to enable users to provide cross-chain liquidity. This allowed the project to battle-test its features and migrate from a centralized to a decentralized and community-driven platform, according to the official post.
As part of this deployment, the project launched its native token RUNE and has called for all token holders to swap their non-native RUNE for the former asset. Once 67% of the network runs on native RUNE, the protocol will implement a “Killswitch” and “kill” the non-native asset under the BEP2 standard.
As NewsBTC reported, 4 months ago THORChain released a highly expected feature, synthetics assets. This allowed users to gain exposure to the price of large cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), by trading with their THORChain versions called sBTC and sETH.
This was just one of the milestones reached by the project on track to its mainnet launch. The aim is to make the platform a decentralized, secure, and liquidity-efficient protocol in the decentralized finance (DeFi) sector.
Who Is Buying The THORChain (RUNE) Rally?
Data provided by the team behind the project claims THORChain has seen .2 billion in total trade volume, with a total of around 10 million transactions and around 72,000 unique swappers. The protocol has around 0 million in total value locked (TVL) making it one of the largest in the DeFi sector.
In their next step of development, which includes making the platform more transparent and decentralized, the team behind the project said:
Centralised points of failure must be removed as they are a risk to the future of the network. The largest remaining centralised point is Treasury management. Treasury plans to hand over full control to the community soon.
Further data provided by Material Indicators (MI) records an increase in buying pressure from investors with over ,000 to ,000 bid orders (red and green on the chart below). Retail investors (yellow on the chart) have been selling into the current price action while whales (brown and purple) have been inactive.
Source: Material Indicators
Related Reading | Top 5 Cryptos Taking A Major Beating In The Ongoing Market Mayhem
If the crypto continues to rebound, RUNE could extend its gain. If large investors see bullish continuation, they might jump into the action and push RUNE into further gains.
A Bored Ape NFT Sold For 0.75ETH By Mistake. Another Sold For 347ETH, But Wait…
The second most popular NFT collection, Bored Ape Yacht Club, is back on the news. On the one hand, a deadly mistake cost a pseudonymous user more than 0K. On the other, a feelgood story of a diamond-hand holder that minted a Bored Ape seven months ago and just sold it for over M. Or did he? The deal is tainted by a suspect second transaction that the community immediately detected.
Related Reading | The Sandbox Purchase Bored Ape Yacht Club NFT for More Than .9 Million
Exciting beginning of the week in the Yacht Club, and NewsBTC has all the juicy details on both stories.
A Costly-Costly Mistake In The Bored Ape Yacht Club
Maxnaut’s membership to the Yacht Club has been revoked. This person’s distraction while listing his Bored Ape for 75ETH, lead him to actually list it for 0.75ETH. A bot immediately snatched it, paying an extra high transaction fee to ensure the extremely profitable buy. Not only that, the bot listed it for 88 ETH straight away. Forget the Roomba and those goofy Boston Dynamics robots, this is the most useful and effective bot ever created.
The ex-owner, Maxnaut, told Cnet:
“I list a lot of items every day and just wasn’t paying attention properly. I instantly saw the error as my finger clicked the mouse but a bot sent a transaction with over 8 eth [,000] of gas fees so it was instantly sniped before I could click cancel, and just like that, 0k was gone.”
A horror story if we ever heard one. Multitasking takes another victim.
ETH price chart for 12/13/2021 on Kraken | Source: ETH/USD on TradingView.com
From Diamond Hands To Millionaire, But Wait…
Only 10.000 Bored Apes exist. All of them were minted for 0.08ETH each. The photographer John Knopf was one of the lucky people that believed in the project from the get-go and was greatly rewarded. This is his story. “I bought my ape for .08 on minting night and just sold it for 347 ETH. (…) I am crying so much. Thank you Bored Ape Yacht Club for completely changing my life and everyone in the community!”
I bought my ape for .08 on minting night and just sold it for 347 ETH. I am at a loss for words right now. I am crying so much. Thank you @BoredApeYC for completely changing my life and everyone in the community!!!! And thank you @_jeffnicholas_ for telling us all to buy them! https://t.co/BxeexYDmM7 pic.twitter.com/FuKtrFwhdH
— John Knopf (@JohnKnopfPhotos) December 12, 2021
The person who told him to buy completes the heartwarming story. “Going from degening into Bored Ape Yacht Club because I liked the art, to telling John Knopf to ape in that fateful Friday night (…) I’m so so so happy for you. Massive. Massive for you, and for the BAYC community.”
Going from degening into @BoredApeYC because I liked the art, to telling @JohnKnopfPhotos to ape in that fateful Friday night when he was all , to this result 8mo later. Wow. @JohnKnopfPhotos I’m so so so happy for you. Massive. Massive for you, and for the BAYC community. https://t.co/bJTE83XLKl pic.twitter.com/snhIlLRi63
— jeffnicholas.eth (@_jeffnicholas_) December 12, 2021
But wait, what is this? The Ethereum blockchain shows that John Knopf sent 230 ETH back to the wallet that bought his Bored Ape.
And then he transfer 230E to the wallet that bought the Ape?
I dont get it pic.twitter.com/f2UgKrKS2W
— !etavares (@Eurico_RT) December 12, 2021
But wait, what is this? The owner of the wallet did send a message to John Knopf through the blockchain asking him to return the funds. Apparently, he was trying to make a bid and made a million Dollar mistake.
Yo yo @JohnKnopfPhotos is not in the WRONG
Buyer fucked up the offer. Chill out y'allhttps://t.co/fPOsXeITnr pic.twitter.com/iiG4mD0Tm0
— jiran.eth | Sherblock Nodes (@Jiran_z) December 12, 2021
The New Bored Ape Owner Shared His Side Of The Story
A few days later, Deepak Thapliyal, the Bored Ape 9452’s new owner, told his story. “I decided I wanted this ape no matter what (…) I knew I wanted it, so originally I moved 655 ETH into my wallet because I was actually prepared to buy it at full ask.”
6/ Here comes the interesting part. The message signed in the blockchain wasn’t the __full story__ on how I mistakenly sent the eth but was the high level overview of it as far as anyone publicly needed to be concerned at the time.
— Deepak Thapliyal (@dt_chain) December 12, 2021
He wasn’t actually making a bid, but checking John Knopf’s wallet activity in Etherscan. However, “After I placed my originally bid, I had to move 230 ETH to another wallet in mobile. I _thought_ the copy button for the address I was sending too was pressed properly. PS: I was multi tasking.” Here we go, multitasking takes another victim.
11/ I finally took spaces out manually via a mobile phone (took a few mins) then missed a space and had to do it again (mind you I’m moving quickly to try to get the message out ASAP). Finally getting the message out but no funds were sent back. Thankfully I found Johns Twitter.
— Deepak Thapliyal (@dt_chain) December 12, 2021
Deepak found Knopf’s on Twitter, and “I tweeted at him and he followed so I could DM him. I explained my story and told him how I wanted his ape. He quickly informed me he had no intentions to keep my money and would send it back. He asked if I wanted the ape still which I said “yes”.” They agreed on a price and the rest is history. “Funny story to tell my kids one day when I give them this ape. Thanks to John for being a standup guy and returning my ETH.”
14/ Odd way to start but very nostalgic to “aping in” as it goes. Funny story to tell my kids one day when I give them this ape. Thanks to John for being a standup guy and returning my ETH and giving me a discount of what I was prepared to spend already.
— Deepak Thapliyal (@dt_chain) December 12, 2021
Facts And Burning Questions
And that’s pretty much it. Do you buy Deepak Thapliyal’s story? Was it an innocent mistake? Or do you think he and Knopf were up to something? The high price buy raises all of the Bored Ape’s prices, specially Bored Ape 9452’s value. However, the blockchain doesn’t lie and Knopf ended up with 347 ETH total.
Related Reading | Miramax Sues Quentin Tarantino Over “Pulp Fiction” NFTs. Tarantino Moves Forward
You have all the facts and every side of the story. Reach your own conclusions.
Featured Image: Screenshot from the Bored Ape’s website | Charts by TradingView
NewsBTC
The Price of the SNAKE (SNK) Game Token Is Growing as We Approach November 30. Wait for a Dump or Buy Now?
Less than two weeks are left before the start of one of the most anticipated blockchain games of 2021 — Cryptosnake. Now the project already has more than 60 thousand active community members who are waiting for the start of the game. Two whales even bought two game NFT Artifacts for 100,000 BUSD each. The total amount of sales of game artifacts even before the start of the game is over 500,000 BUSD.
Info: Cryptosnake is a play-to-earn game with DeFi and NFT, the first blockchain game on the BEP-1155 standard. The gameplay is based on the nostalgic “Snake”. The release is scheduled for November 30th.
Meanwhile, the SNAKE (SNK) token continues to grow, increasing the threshold for entering the game. The starting price was 0.01 BUSD for 1 SNK. Then the cost of the base playable character (the Dasypeltis snake) was . Now, this same character costs about 0.
The SNK token rate has grown significantly immediately after the start of sales. The demand for in-game currency turned out to be even higher than expected. In total, more than 280 million tokens have been sold to date (about million at today’s rate). The listing on Coinmarketcap and the burning of the liquidity pool were also strong shocks.
Further, there are three possible scenarios.
- The first (pessimistic) — the rate will continue to grow until the publication of the audit results of smart contracts, or until the planned release date of November 30, but the game will not come out (or it will turn out to be worse than many expected). This will be a disappointment for the community and will lead to a gradual collapse of the course. However, a pessimistic forecast is unlikely given the marketing budget and the size of the project’s live community. In addition, the first screenshots of the game have already appeared in the chat.
- The second — the rate will continue to grow until November 30, but many holders will not be able or will not want to buy a character at that price. According to a poll in the official Telegram chat, only 45% of holders bought more than 500 SNK, and only 21% — more than 5000 SNK. This can lead to a course correction and a bounce to an acceptable price for most.
- And the third scenario — the rate will continue to grow until November 30. This is the start date of the game. On this day, doubters will see that the game is really out and that you can really earn money in Cryptosnake. Then there will be even more people who want to start playing — and SNK tokens will rise in price even more.
There are always risks in new projects, but such projects allow you to earn more. Aside from the pessimistic forecast, the optimal strategy would be to buy SNAKE tokens as early as possible and wait. A strong drop in the rate until the end of November is unlikely, so we can hold. Further, on the day the game is released, we can decide what to do next: sell tokens at the peak, or buy a character and start the game.
In case of a successful start of the game, the second option will be more profitable, because the first players will be able to earn more than others on staking. APR for players joining in the first six months will range from 60% to 115% depending on the snake type and TVL balance. Also, the APR rate can be increased by using artifacts, but now they can only be bought on the secondary market.
You can buy a SNAKE token on PancakeSwap paired with BUSD.
More details about the project can be found on the official Telegram or on the website. These two weeks would be crucial for the project. In any case, it will be interesting to watch the development of Cryptosnake. What do you think?
#Bitcoin #gameFI #Bep-1155 #CryptoGame
Here’s Why Bitcoin Bears Must Wait for $6K Considering A Correction Is Due
Bitcoin is showing signs of a decent recovery above ,000 against the US Dollar. BTC price could recover further towards the ,000 resistance, where the bears are likely to take a stand.
Bitcoin is slowly rising and it is trading nicely above ,200 against the US Dollar.
A break above ,600 is likely to lead the price towards the ,000 resistance.
There is a short term contracting triangle forming with resistance near ,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could test the ,000 resistance area, which is a major hurdle for more upsides.
Bitcoin Could Test and Fail Near ,000
After a short term downside correction, bitcoin found support near the ,350 area against the US Dollar. BTC price recovered in the past few sessions and climbed back above the ,000 resistance level.
The recent recovery was positive since the price was able to clear the 50% Fib retracement level of the key drop from the ,000 swing high to ,333 low. The bulls were able to push the price above the ,200 resistance and the 100 hourly simple moving average.
Bitcoin is now trading in a positive zone above the ,350 level. An initial resistance on the upside is near the ,600 level. More importantly, there is a short term contracting triangle forming with resistance near ,600 on the hourly chart of the BTC/USD pair.
Bitcoin Price
The triangle resistance is close to the 76.4% Fib retracement level of the key drop from the ,000 swing high to ,333 low. Therefore, a clear break above the ,600 resistance could open the doors for a push towards the ,000 level.
Any further gains could lead the price towards the ,395 level. It represents the 1.236 Fib extension level of the key drop from the ,000 swing high to ,333 low.
Recovery Remains Capped
If bitcoin corrects higher, it is likely to face hurdles near the ,000 resistance zone. The bears are likely to take a strong stand near ,000 and ,050.
The main hurdle is near the ,400 and ,500 levels, above which the bulls are likely to have an upper hand. If they fail to lead the price above ,000 and ,500, there are high chances of another bearish wave in the near term.
Technical indicators:
Hourly MACD – The MACD is about to move into the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it is above the 50 level.
Major Support Levels – ,200 followed by ,000.
Major Resistance Levels – ,600, ,950 and ,000.
NewsBTC