Bitcoin Whale: World is in for “Biggest Economic Shock” in Generations

It feels as though the past couple of months have marked the end of an era, and one prominent Bitcoin whale is now noting that he believes the world is about to incur one of the biggest economic shocks seen in generations. This may fundamentally alter the structure and dynamics of society, with attempts being undertaken by governments and central banks across the world to curb the economic decline likely working to compound the problems. One investor and self-described “economic historian” is explaining that this turmoil is likely to shift the world’s focus onto three assets, potentially proving to be bullish for Bitcoin over a mid and long-term time frame. Bitcoin Whale Warns Investors to Brace for Waves of Economic Shock  J0E007 – a prominent Bitcoin whale who can typically be found harvesting massive trading profits at the top of the Bitfinex global leaderboard – explained in a response to a question on Twitter that he believes the world’s current economic situation is dire at the moment. He notes that the imminent crisis is likely to unfold in waves, with each one coming with its own host of problems and focuses. “It is going to be the biggest economic shock of our generation. It will unfold in waves and over time, giving false hopes and then crushing them. The focus of the crisis will be shifting through different areas. Attempts to alleviate and solve one crisis will lead to more mess.” It is going to be the biggest economic shock of our generation. It will unfold in waves and over time, giving false hopes and then crushing them. The focus of the crisis will be shifting through different areas. Attempts to alleviate and solve one crisis will lead to more mess. — J⁷ ≣ 🐳 (@J0E007) April 3, 2020 This sentiment comes on the heels of another insight from the Bitcoin whale, in which he noted that the economic reality we all lived in before 2020 is over, with a new – arduous – reality likely lasting for another 20 years. What Could This Mean for BTC? One action that will likely be undertaken by the Federal Reserve as the crisis worsens is to flip interest rates negative. Raoul Pal – a prominent investor – spoke about this in a recent thread of tweets, in which he notes that he sees the Fed Fund hitting -2% while 10-year bond rates also go negative. He muses that this will place the focus of the world on three main assets, namely the US Dollar, Gold, and Bitcoin, with this focus eventually shifting away from USD as its value weakens, eventually being fully focused on BTC and precious metal. “Dollars, Gold and Bitcoin make the most sense. Later, much later, just gold and bitcoin. This is an 18 month to 36 month view. Expect many counter-trend moves along the way. We will have to navigate those.” Dollars, Gold and Bitcoin make the most sense. Later, much later, just gold and bitcoin. This is an 18 month to 36 month view. Expect many counter-trend moves along the way. We will have to navigate those. Good luck. — Raoul Pal (@RaoulGMI) April 3, 2020 As global chaos mounts, the need for so-called “hard money” has never been higher, and although the demand for it has been lagging, it is likely to grow in the years (and even decades) ahead. Featured image from Shutterstock.

Bitcoin Forms Bullish Weekly Candle but One Factor Could Spoil Its Uptrend

Bitcoin has once again found itself caught within a bout of sideways trading within the upper-$6,000 region following yesterday’s firm rejection at $7,300. Although the technical damage done by this movement appeared to be overtly bearish, BTC has been able to hold steady. Analysts are now noting that BTC’s weekly candle is shaping up to be bullish, with a close at or above its current price potentially bolstering the crypto’s mid-term technical outlook. It still remains unclear, however, as to whether or not this will be enough to push Bitcoin past the intense resistance that has formed just slightly above its current price level, which has led some analysts to be bearish in the short-term. Bitcoin Holds Steady Following Firm Rejection at $7,300  At the time of writing, Bitcoin is trading up just under 3% at its current price of $6,900, which marks a notable climb from weekly lows of $5,800 that were set when bears attempted to reverse the uptrend established when BTC rebounded at $3,800. The support at this level, however, was enough to propel the crypto higher, with it rallying all the way to $7,300 before facing a firm rejection here yesterday. This rejection had led Bitcoin to form a highly bearish 4-hour candle, which some analysts anticipated to lead the crypto lower. Despite this, its ability to resist seeing further downside is certainly a bull-favoring sign, and analysts are now noting that its weekly candle is shaping up to be highly bullish. Big Cheds, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that the candle has risen substantially since Monday, with it now testing its EMA 8. “Bitcoin: weekly chart update – Moving nicely off that double inside up, testing EMA 8,” he noted. $BTC #Bitcoin Weekly chart update – Moving nicely off that double inside up, testing EMA 8 https://t.co/OgDBCQHY4u pic.twitter.com/FRYuy1NzlT — Big Cheds (@BigCheds) April 3, 2020 BTC Faces Mounting Resistance as Analysts Show Signs of Tempered Bearishness In spite of Bitcoin’s bullish weekly candle, it is important to note that it is facing mounting resistance in the region between $6,950 and $7,200, with a failure to break through this potentially being a catalyst for further downside. One trader recently spoke about this resistance on Twitter, explaining that he won’t be bullish until BTC is able to flip this resistance into support. “I refuse to become bullish into resistance levels. I’ll be bullish at support levels or when this area flips.” Image Courtesy of Crypto Michaël If BTC is able to surmount its EMA 8 before its weekly candle close, this could spark an influx of buying pressure that leads it significantly higher. Featured image from Shutterstock.

XRP Could be Poised for a 20% Rally as Bullish Undercurrent Emerges

It has been an interesting week for XRP, with the Ripple-associated token seeing some unique turbulence that allowed it to rally independent of the aggregated crypto market late-last week before once again reestablishing a close correlation to Bitcoin. This price action has come as the cryptocurrency hovers around a key support level that has been established around its BTC trading pair. The potential strength of this support has led analysts to note that it is a possibility that the crypto pushes higher in the near-term. XRP Inches Higher; Battles with Tether (USDT) for No. 3 Market Cap Spot At the time of writing, XRP is trading up just under 1% at its current price of $0.18, which marks a notable climb from recent lows of $0.16 that were set in tandem with Bitcoin’s decline to $5,800. XRP’s current USD price level has been where it has found some resistance throughout the past couple of weeks, with each attempt to surmount this level being futile. In the near-term, it is important to note that Bitcoin is likely to continue guiding other altcoins, and whether or not it is able to surmount the resistance at $7,000 will be telling as to whether the aggregated crypto market will soon be able to push higher. One interesting trend to consider in the near-term is the fact that XRP is currently at risk of losing its position as the third largest crypto by market capitalization to Tether (USDT). According to data from Messari, XRP’s liquid market cap is already lower than that of USDT, trailing it by roughly $800 million. This data conflicts slightly, however, with data from CoinMarketCap – which shows that the embattled token still has a lead over USDT. This Support Level Could Bolster the Crypto’s BTC Trading Pair  One factor that could significant bolster the crypto in the near-term is the fact that it may soon flip a previous BTC resistance level into support. A popular crypto trader on Twitter spoke about this possibility in a recent tweet, explaining that a successful defense of the 2600 sat level could lead XRP up to 3100 sats – a notable climb from its current price of 2630 sats. “Would be interesting to see whether XRP can flip this level back for support. Might support further continuation towards 3100 satoshis.” Image Courtesy of Crypto Michaël If bulls do defend this level and push the cryptocurrency higher, it is probable that it will maintain its market cap lead over USDT and see some near-term upside. Featured image from Shutterstock.

Bitcoin “scamwick” creates trail of destruction; leads to $50m in liquidations

After rallying from the lower-$6,000 region earlier today, Bitcoin bulls stepped up and propelled the benchmark cryptocurrency up to highs of $7,300 in what ultimately proved to be a fleeting movement.

The rejection from this level has led BTC to reel back into the upper-$6,000 region, with this movement leading a significant amount of open positions on the crypto trading platform BitMEX to be liquidated.

It also led to the formation of what analysts are describing as an “ugly” 4-hour candle, which suggests that the crypto’s mid-term outlook may be gloomy.

Bitcoin forms massive “scamwick” in the fleeting movement to $7,300

It has been a volatile past few hours for Bitcoin, with the crypto racing to highs of $7,300 before finding itself caught within a downtrend that has since led it to its current price of $6,750.

This movement resulted in what appears to be a highly bearish four-hour candle, with the rejection at these highs being a sign that the cryptocurrency’s buyers still remain weak.

Josh Rager – a prominent crypto analyst – explained that a daily close below $6,800 could be a dire sign for Bitcoin’s mid-term trend, potentially opening the gates for significantly further downside.

“BTC 4 hr candle is ugly right now. Closing below $6800s wouldn’t be pretty – would like to see reclaim and hold previous December range above $6900. Price came down and tapped $6700 support, we’ll see if price can push back up from here – daily close still hours away.”

Bitcoin Crypto
Image Courtesy of Josh Rager

It’s important to keep in mind that Bitcoin is still trading up from daily lows of roughly $6,200, meaning that it may still be able to close a neutral or slightly bullish daily candle if buyers are able to support it around its current price level.

Today’s turbulence created nearly $50 million in hourly liquidations on BitMEX

One byproduct of today’s volatility has been a significant number of position liquidations on popular cryptocurrency trading platform BitMEX.

According to data from Skew – a research and analytics platform – the total hourly liquidations for the time in which this fleeting pump to $7,300 and subsequent retrace occurred totals at nearly $50 million.

Bitcoin BTC
Image Courtesy of Skew

For perspective, this marks a massive climb from the total hourly average seen throughout the past several days, which is currently at $1.9 million.

If today’s volatility becomes commonplace in the days ahead, it is likely that this average will post a notable climb.

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This stunning trend amongst crypto exchange tokens may be a massive red flag for investors

Native platform tokens aimed at increasing the efficiency and decreasing the costs associated with interacting with crypto exchanges have garnered significant popularity amongst investors in recent times, with their overt utility boosting transaction volumes and making them attractive to investors.

In spite of this, data regarding the concentration of these tokens amongst so-called “whales” is quite alarming, signaling that these tokens may be highly prone to seeing manipulation.

It also damages the investment proposition that these tokens possess, as it makes it highly unclear as to whether or not their growth is organic or artificial.

Crypto exchange tokens garner massive popularity

Exchange tokens are a relatively new class of digital assets that have gained immense popularity and have drawn billions of dollars’ worth of investors’ capital throughout the past few years.

Currently, some of the largest cryptocurrencies by market capitalization are platform-specific tokens.

Binance Coin (BNB) has seen significant growth throughout the past couple of years, with its market cap ballooning from $10 million in mid-2017 to highs of nearly $5.5 billion in mid-2019, before declining slightly to its current size of over $2 billion.

UNUS SED LEO – the token associated with Bitfinex – rapidly gaining an over $1 billion market cap after launching in the summer of 2019.

A handful of other exchange cryptos occupy positions amongst the largest cryptocurrencies, with Huobi Token, Crypto.com Coin, OKB, and FTX Token all having significant popularity amongst investors.

Exchange token’s whale concentrations a massive red flag for investors

According to data from the on-chain analytics platform IntoTheBlock, many of these tokens have striking whale concentrations.

The data shows that UNUS SED LEO has a 99 percent whale concentration, suggesting that the exchange itself and possibly a handful of individuals hold massive sway over the cryptocurrency.

A similar trend is seen while looking towards Huobi Token, Crypto.com Token, and FTX Token, which have whale concentrations at 93 percent, 90 percent, and 96 percent respectively.

This is compared to that seen amongst decentralized cryptocurrencies like Bitcoin, which is only at a mere 1 percent.

This is a major red flag for investors treating these tokens as investments, as it suggests that they may be highly prone to seeing manipulate movements and inorganic growth.

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Ethereum is “Ready to Explode” Despite Nearing a Key Resistance Level

Bitcoin saw a notable upswing overnight, which led Ethereum and most other major altcoins to rise in tandem. This rally has pushed ETH up to a key resistance level that its buyers are currently attempting to surmount. Analysts are now noting that the crypto could be positioned to see an explosive movement past this resistance, with a clean break above potentially allowing it to see some significant upside. A rejection here, however, could lead the crypto to see a decline that leads it towards its range lows, with a decline past this level sparking a capitulatory selloff that leads ETH to revisit its recent lows. Ethereum Inches Higher Alongside Bitcoin, But Approaches Key Resistance  At the time of writing, Ethereum is trading up over 5% at its current price of $138, which marks a notable climb from daily lows within the lower-$100 region. This latest upswing has come about in tandem with that seen by Bitcoin, which was able to rally from lows of roughly $6,000 to highs of roughly $6,800, where it was met with some resistance. This latest rally has also pushed ETH up towards its resistance around $140, and George – a popular crypto trader – explained that he believes the cryptocurrency is positioned to see an explosive movement past this resistance. “ETH Looks ready to explode… Dump from here and I got my eyes on mid range,” he said while referencing the below chart. $ETH Looks ready to explode… Dump from here and I got my eyes on mid range. pic.twitter.com/1t703vqjVY — George (@George1Trader) April 2, 2020 While looking at the above chart, it does appear that Ethereum is caught within a large trading range between $125 and $145, and which of these levels breaks first should offer analysts with significant insight into which direction it will trend in the mid-term. Here’s How High ETH Could Rally if it Posts an Upside Break As for how high an upside break could lead Ethereum, Josh Olszewicz – a popular crypto analyst – recently noted that he is closely watching ETH’s descending volume and Bollinger Bands for insight into its technical strength. He further noted that if ETH is able to break above its cloud resistance, it should see a quick movement to $170. cloud breakout will be obvious, if it occurs should move quickly to 170 pic.twitter.com/8P9M3Nghqg — Josh Olszewicz (@CarpeNoctom) April 1, 2020 Because Ethereum is closely tracking Bitcoin’s price action, which direction the benchmark cryptocurrency trends should offer investors with significant insight into where virtually all altcoins will trend throughout April. Featured image from Shutterstock.

Veteran Trader: Bitcoin to Target $8,400 After Posting “Big Time Bull Break”

In a jarring early-morning movement, Bitcoin blew past the resistance it was previously facing within the upper-$6,000 region, with this rally allowing bulls to significantly bolster their near-term technical situation. Analysts are now widely noting that the strength of this movement is likely to lead it significantly higher, with short positions getting punished. One prominent veteran trader is now noting that he believes Bitcoin is poised to rally all the way towards $8,400 in the near-term, as it just confirmed a highly bullish technical pattern. Bitcoin Sees Explosive Movement as Bulls Catalyze Massive Upside  At the time of writing, Bitcoin is trading up just under 13% at its current price of $7,020, which marks a notable climb from daily lows of $6,200 that were set during its bout of sideways trading within the lower-$6,000 region. Analysts are now widely noting that Bitcoin is well positioned to see a continuance of the upside that was catalyzed by this movement, with Big Cheds – a popular cryptocurrency analyst – categorizing this move as a “big time bull break” that is punishing shorts. “Bitcoin daily chart – Big time bull break. Shorters getting punished,” he noted. $BTC #Bitcoin daily chart – Big time bull break. Shorters getting punished https://t.co/tVaa9TQFJV pic.twitter.com/x05dm8oKzX — Big Cheds (@BigCheds) April 2, 2020 While looking at the chart Cheds references, it does appear that the cryptocurrency is in the process of piercing its upper Bollinger Band on its daily chart, with that in itself potentially acting as a bullish catalyst. Veteran Trader Targets Move to $8,400 as BTC Posts Bullish Breakout Peter Brandt, a veteran trader and highly respected analyst, explained in a recent tweet that Bitcoin’s latest upswing has allowed it to break above what appears to be an ascending triangle, with classical charting suggesting that this breakout could lead the crypto to rally up towards $8,400 in the near-term. “Just a matter of perspective, but best classical chart labeling likely an ascending triangle with target at 8400,” he noted in response to a tweet regarding the possibility that BTC’s low is in. Just a matter of perspective, but best classical chart labeling likely an ascending triangle with target at 8400 pic.twitter.com/SKTrkRfj6h — Peter Brandt (@PeterLBrandt) April 2, 2020 During Bitcoin’s uptrend in January, $7,700 was a key level that proved to be difficult to surmount, with the break above this price being the point at which some analysts noted the bull market began. If this uptrend does lead Bitcoin to $8,400, it is possible that the crypto will soon kick off its next bull market. Featured image from Shutterstock.

Bitcoin on the Cusp of Going “Full Bull Mode” as This Technical Pattern Emerges

Bitcoin’s recent selloff proved to be highly fleeting, as the cryptocurrency has now rallied up towards the upper-$7,000 region, leading it to once again confront the resistance around this price level that previously proved to be insurmountable. Importantly, analysts do seem to believe that bulls currently have an edge over bears, as the crypto’s recent price action has established a bullish technical formation. This formation could lead BTC to enter “full bull mode” according to one analyst, with this movement leading the crypto to climb into the $8,000 region. Bitcoin Sees Bullish Upswing as Analysts Eye Further Upside At the time of writing, Bitcoin is trading up just under 8% at its current price of $6,750, which marks a massive climb from daily lows of just above $6,000 that were set yesterday when bears attempted to push the crypto into the $5,000 region. The bullish response to this attempted selloff allowed the crypto to reclaim its previous trading range between $6,600 and $6,800, and BTC is now facing some resistance as bulls try to surmount the $7,000 level. It is important to note that Bitcoin has formed a bullish pennant, which has led CryptoBirb – a popular cryptocurrency analyst on Twitter – to tell his 75,000 followers that he thinks it is probable that BTC goes “full bull mode” next. “If btc flips full bull mode, that’s what I think is most probable,” he said while pointing to the technical formation on the below chart. if $btc flips full bull mode, that's what I think is most probable pic.twitter.com/8cDgsPacvB — CRYPTO₿IRB (@crypto_birb) April 2, 2020 While looking at the charts outlined on the above chart, it does appear that this potentially bullish movement could lead the cryptocurrency to rally all the way up towards the $8,000 region. Here’s the Bearish Near-Term Scenario for BTC CryptoBirb doesn’t, however, believe that Bitcoin is out of the woods yet. He further noted in a later tweet that a breakdown below Bitcoin’s “symmetry zone” within the lower-$6,000 region could be dire, opening the gates for a movement to as low as $4,000. “The BTC upside expansion scenario I got for yall above assumes we successfully break out and reclaim the support. Breaking down below the symmetry zone means upswing premature failure and visiting low 4000s imo,” he said. How Bitcoin responds to the resistance it is currently facing should offer insights into which direction it will trend next, with another rejection here potentially proving to be dire. Featured image from Shutterstock.

This Indicator Shows Bitcoin May Soon See a Massive Influx of Buy Orders

After a period of facing some downwards pressure, Bitcoin bulls have been able to step up and lead the crypto higher, pushing it back into the mid-$6,000 region. This recent price action seems to indicate that both bulls and bears have reached an impasse, as neither have been able to garner any decisive momentum in the time following BTC’s rejection at $6,900. Importantly, one fundamental indicator is suggesting that bulls may soon gain the upper hand over bears, as the amount of capital that is currently sidelined within stablecoins could suggest that bulls have a massive war chest to fuel an intense upwards movement. Bitcoin Consolidates as Bulls and Bears Struggle to Garner Momentum  At the time of writing, Bitcoin is trading down just over 1% at its current price of $6,350, which marks a slight rebound from daily lows of $6,200, and a decline from highs of nearly $6,500. This current bout of sideways trading marks a significant extension of that which Bitcoin has been facing after breaking above $6,000 last week, with bulls and bears forming a large trading range between roughly $5,800 and $6,900. This consolidation has had a ripple effect spanning across the entire cryptocurrency market, with virtually all major altcoins seeing similar price action throughout the past several days. In the near-term, which direction Bitcoin trends next will likely be largely dependent on whether it breaks above the lower or upper boundaries of its trading range. One factor that investors should consider is that the traditional markets are beginning to see a continuance of their March capitulation, with all of the benchmark stock indices shedding nearly 5% of their value today. Could Stablecoin Holdings Tip the Scale in BTC Bull’s Favor? One factor that could bolster bulls eventually is the fact that the Stablecoin Supply Ratio is currently nearing an all-time low, showing that the current stablecoin supply has significant buying power and could bolster BTC. “Stablecoin Supply Ratio (SSR) is near its ATL. Low SSR means the current stablecoin supply has strong buying power to purchase BTC and push the price up. USDT (ERC20) exchange balances at an ATH indicates that those coins are waiting on the sidelines,” Glassnode noted in a recent tweet. Stablecoin Supply Ratio (SSR) is near its ATL. Low SSR means the current stablecoin supply has strong buying power to purchase $BTC and push the price up.$USDT (ERC20) exchange balances at an ATH indicates that those coins are waiting on the sidelines.https://t.co/r1Re9UoVNv pic.twitter.com/I5ZFnScnLX — glassnode (@glassnode) April 1, 2020 Just because there exists a significant amount of capital currently sidelined within the crypto market doesn’t mean that it will necessarily be deployed anytime soon, as these investors may be waiting for Bitcoin to reach lower price regions before they reenter positions. In the long-term, however, this is certainly a bullish sign that suggests BTC’s outlook is bright. Featured image from Shutterstock.

Here’s Why Bitcoin’s Bullish Monthly Close Isn’t Enough to Thwart a Massive Selloff

Following Bitcoin’s bout of consolidation within the mid-$6,000 region, the benchmark cryptocurrency has seen a slight decline that has led it down towards the support that has been established around $6,000. This decline today has come about against a backdrop of bearishness in the equities market, with virtually all of the benchmark indices seeing some notable losses. Analysts believe that this could create a downwards tailwind that also leads BTC to decline, which could invalidate all of the bullishness stemming from its recent monthly close. Trader: Bitcoin Likely to See Further Downside Despite Bullish Monthly Close  At the time of writing, Bitcoin is trading down just over 3% at its current price of $6,250, which marks a notable decline from daily highs of over $6,500 that were set yesterday during its bout of sideways trading. Over a weekly period, BTC has been trading sideways in a relatively large trading range between $5,800 and $6,800 – with the crypto finding some hints of stability within the middle of this trading range. It is important to note that the crypto was able to close its monthly candle at around $6,500 yesterday, which analysts consider to be bullish. George, a popular cryptocurrency trader on Twitter, explained in a recent tweet that he still thinks BTC is poised for some near-term downside in spite of its strong monthly close, noting that he is watching for a movement to $5,500. “BTC: Monthly closed bullish, but I think we see some downside first before heading higher. First target for our shorts around 5.5k,” he noted. $BTC Monthly closed bullish, but I think we see some downside first before heading higher. First target for our shorts around 5.5k. Went more in depth in our discord. Cheers. pic.twitter.com/dJztUElw9U — George (@George1Trader) April 1, 2020 Will Economic Turbulence Continue Leading BTC Lower? There’s no question the pandemic-related selloff seen within the equities market throughout the past few weeks has created a downwards tailwind that put pressure on Bitcoin and other cryptocurrencies. Chase – another popular crypto analyst – explained in a tweet that although BTC could see a “scam wick” to clean out liquidity, he believes it will soon see significantly further downside. “BTC: Typically when price re-enters an old range, it breaks down almost immediately. I expected a quick retest of range high then a sharp move to 6055 (especially with SPX dumping hard). Something feels off to me. Think we may get a scam wick to clean out liquidity up there,” he explained. $BTC Typically when price re-enters an old range, it breaks down almost immediately. I expected a quick retest of range high then a sharp move to 6055 (especially with $SPX dumping hard). Something feels off to me. Think we may get a scam wick to clean out liquidity up there. pic.twitter.com/6u7vwTNLYL — Chase_NL (@Chase_NL) April 1, 2020 How Bitcoin trends as the traditional markets continue declining should offer insight into where the entire cryptocurrency market will head throughout the coming month. Featured image from Shutterstock.

Beware of false narratives: stock-to-flow and halving not bullish for Bitcoin, claims report

2020 has been a turbulent year for Bitcoin and the aggregated cryptocurrency market, with bulls having firm control over the benchmark digital asset throughout all of January and most of February, before losing their strength to sellers in March.

This heightened volatility has occurred against a backdrop of bearishness within the global economy, which – like Bitcoin – peaked in February before the lethal COVID-19 virus began rapidly spreading, leading many economies to reach a virtual standstill.

The pressure created by this pandemic has proven to be devastating for nearly all major global markets, with some benchmark stock indices seeing single-month losses in March of nearly the same size as those incurred during previous depressions.

The crypto market – despite previous narratives regarding them being independent from the global economy – plunged alongside everything else, with Bitcoin seeing an unprecedented decline from highs of $10,500 to lows of $3,800 in a matter of mere days.

Now, a new report from a Seattle-based crypto hedge fund explains that hope-inducing narratives currently surrounding Bitcoin may be largely underpinned by false assumptions, potentially causing significant damage to the markets once these narratives are invalidated.

Report suggests “halving” and “stock-to-flow” models may be false narratives

In a recently released report from the Seattle-based hedge fund Strix Leviathan, the group takes a critical approach to analyzing the merits of the bullish narratives currently circulating throughout the cryptocurrency community.

In the near-term, Bitcoin’s upcoming mining rewards “halving” event is widely anticipated to give the crypto reason to run, with many analysts pointing to the roughly 50 percent inflation reduction and subsequent miner capitulation as reasons why it may catalyze upwards momentum.

Strix Leviathan, however, notes that the halving being bullish hinges on the key assumption that miners have been selling all, or most, of their mined crypto on a monthly basis.

In reality, this may not be the case, as they explain that many mining operations still hold a significant amount of BTC, while tapping into collateralized loans in order to fund their operations.

“Reality – Not all miner rewards are sold. A meaningful amount of mined BTC is sitting on balance sheets as miners both speculate and utilize BTC-collateralized loans to run and expand operations. The impact of a supply-side cut on price is uncertain at best and minimal at worst.”

The halving isn’t the only hope-inducing narrative circulating within the crypto industry, as many investors are looking towards Bitcoin’s stock-to-flow (S2F) model as a reason why the benchmark crypto could be trading at close to $100,000 by the year’s end.

This economic model – popularized by Bitcoin commentator and analyst “PlanB” – quantifies Bitcoin’s scarcity by its stock/flow, which for BTC equates to being 1 / supply growth rate.

Bitcoin
Image Courtesy of PlanB showing the S2F for precious metals

Strix Leviathan claims that in order for S2F to be bullish, one must assume that market participants are not actively predicting (or “pricing in”) the impacts of Bitcoin’s imminent supply reduction.

They note that contrary to this assumption, investors have been anticipating halving events from Bitcoin’s genesis in 2009, and data shows that there is little evidence to prove that this recurring event is the impetus for the crypto’s past parabolic price cycles.

“Reality – Bitcoin’s supply schedule is the major selling point by crypto-evangelists… Market participants have been anticipating this halving and all future halvings since 2009 when there was only one participant. Previous research Strix Leviathan conducted suggests that the impact of halving events are indiscernible from broader market sentiment.”

What does this all mean for Bitcoin?

Based on the above reasoning, it is a strong possibility that the price action seen throughout the rest of 2020 will negate all of the bullish narratives that are currently kindling hope within the crypto market.

The price action seen throughout February and March has already done damage to BTC from a fundamental standpoint, with its incredibly close correlation to the U.S. equities market fully negating the “digital gold” narrative that was previously pervasive within the industry.

It does seem as though the negation of these narratives in it of themselves can do damage to the cryptocurrency’s price, as traders who built positions based on optimistic expectations may exit the market following the negations of these narratives.

Despite this, some prominent Bitcoin thought leaders do believe that there is merit to simple economic models like S2F.

As previously reported by CryptoSlate, Adam Back – the CEO and co-founder of Blockstream – spoke about the stock-to-flow model in a tweet, noting that it seems to be based on logical assumptions.

“It’s just a back tested curve fit to historic data, affirmed by co-integration stats test. What’s not to believe? More interesting is interpreting why, given good fit. It does seem logical that rate of supply halving, other things being equal, would tend to drive up price.”

There’s no doubt that Bitcoin’s relative youth makes it incredibly hard to decipher and predict market movements based on historical precedent, but how the crypto’s price trends in the coming nine months should offer significant insight into the validity of these keenly watched narratives.

The post Beware of false narratives: stock-to-flow and halving not bullish for Bitcoin, claims report appeared first on CryptoSlate.

Ethereum Could See Sharp Rally to $170 if it Posts This Insanely Bullish Breakout Pattern

Ethereum and the aggregated cryptocurrency market has seen a slight selloff overnight that was catalyzed by Bitcoin’s decline to the lower $6,000 region. This plunge has not impacted ETH in the same way it has other altcoins, as the crypto is currently significantly outperforming the market. One analyst is now noting that there are a few key technical factors that he is closely watching for insight into where Ethereum will trend next, with the crypto offering some conflicting signals. Importantly, ETH is on the cusp of confirming a highly bullish technical formation that could lead it to see a massive rally, should bulls gain enough strength to complete the pattern. Ethereum Outperforms Bitcoin and Other Altcoins Amidst Market-Wide Downturn  At the time of writing, Ethereum is trading down just under 1% at its current price of $132, which marks only a slight decline from daily highs of $134 that were set yesterday. ETH’s ongoing bout of sideways trading marks an extension of that which it has been facing throughout the past couple of days, with it holding up surprisingly well against Bitcoin. Bitcoin has incurred some slight downwards pressure today that caused it to reel down over 3% to its current price of $6,250, leading many major altcoins to decline in tandem. Although ETH’s outperformance of Bitcoin is overtly bullish, it is important to note that Josh Olszewicz – a popular cryptocurrency analyst on Twitter – explained that it is currently sending mixed signals. “4h ETH tri w/desc vol. Daily bbands leaning bull. 50/50 overall. 200 if up, hopefully not 0 if down,” he noted while pointing to the technical formations seen chart seen below. 4h $ETH tri w/desc vol daily bbands leaning bull 50/50 overall 200 if up, hopefully not 0 if down lol pic.twitter.com/ANmuMmidNl — Josh Olszewicz (@CarpeNoctom) April 1, 2020 This Potential Breakout Pattern Could Send ETH Rallying Significantly Higher  Olszewicz also went on to explain that any further upwards momentum could allow ETH to post a cloud breakout, with confirmation of this opening the gates for it to see a sharp rally up towards $170. “Cloud breakout will be obvious, if it occurs. Should move quickly to 170,” he noted while referencing the cloud seen on the below chart. cloud breakout will be obvious, if it occurs should move quickly to 170 pic.twitter.com/8P9M3Nghqg — Josh Olszewicz (@CarpeNoctom) April 1, 2020 In order for this bullish technical formation to be confirmed, it is imperative that bulls are able to continue decoupling Ethereum from Bitcoin and further extend its independent upwards momentum. Featured image from Shutterstock.

The crypto market’s early-March meltdown revealed something super bullish for Bitcoin

March 12th is a day that will live in infamy for the crypto markets, with investors watching Bitcoin lead the entire market in an unprecedented downwards movement that led some altcoins to decline as much as 50 percent or more in a matter of mere hours.

The downwards tailwind that catalyzed this decline was created by Bitcoin, which lost the support it had established at $8,000 before facing a swift downwards movement that led it to $3,800.

The markets have seen some calmness in the time following this carnage, with Bitcoin stabilizing within the $6,000 region while many altcoins also enter bouts of consolidation.

Now, newly released data from Coinbase shows that this capitulatory decline may have actually revealed the strength of crypto bulls, potentially being a positive sign for what’s to come next for the market.

Crypto market finds stability following recent turbulence

After tapping lows of $3,800, Bitcoin posted a swift and sharp rebound that subsequently led it to highs of $6,900, from which point it has found some selling pressure that has since led it slightly lower.

Just as BTC led the entire crypto market down, its rebound also created a tailwind that allowed many altcoins to erase at least a portion of their recent losses.

Importantly, this selloff was not driven by organic selling pressure, but has been widely thought to be the result of a cascade of liquidations on leveraged trading platform BitMEX – with the crypto’s decline below $8,000 creating a snowball of selling pressure that proved to be insurmountable for buyers.

The crypto market is hanging on by a thread according to this chart, but all hope isn’t lost
Related: The crypto market is hanging on by a thread according to this chart, but all hope isn’t lost

This notion is further supported by the fact that the entire crypto market’s selloff halted the very instant that BitMEX went offline due to a “hardware issue” – with this downtime essentially acting as a circuit breaker to halt the torrent of liquidations.

Coinbase saw record-breaking buying activity during this selloff

Something bullish to come out of this whole imbroglio is the fact that retail investors were incredibly engaged in buying the dip.

In a recent report, Coinbase explains that as compared to their last 12-month averages, they saw a 5x increase in cash and crypto deposits, as well as a 2x increase in new-user signups in the 48-hours surrounding the drop.

Bitcoin Crypto
Image Courtesy of Coinbase

The key piece of information within this report that is a bullish sign for Bitcoin and the crypto market as a whole is the fact that these users were widely buyers of the dip, as Coinbase notes:

“Beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite.”

Because current participants and new entrants to the crypto market were both simultaneously engaged in buying this recent dip, it seems as though retail investors are widely optimistic about Bitcoin and the crypto market.

The post The crypto market’s early-March meltdown revealed something super bullish for Bitcoin appeared first on CryptoSlate.

Simple Factors Show Bitcoin’s Hash Rate Will Continue Dropping; Here’s Why This is Bullish

Bitcoin’s recent volatility did some severe technical damage to its market structure, and also led to mass capitulation amongst BTC miners, with the crypto’s decline from $10,500 to lows of $3,800 making it no longer profitable for many smaller mining operations. Miner’s ongoing capitulation is illustrated while looking towards Bitcoin’s hash rate, which has seen a significant decline over the past three weeks. The decline may be far from over, as a few simple factors seem to suggest that more miners may capitulate in the near-term. Bulls, however, may be pleased to learn that there’s a strong chance that this decline in hash rate may ultimately be a positive thing for Bitcoin’s price, with the capitulation of smaller miners potentially alleviating some of the selling pressure on the crypto. Bitcoin’s Hash Rate Continues Dropping: Down 20% From All-Time Highs Bitcoin’s hash rate – which represents the terahashes per second (TH/s) that are performed by the BTC blockchain – is often looked upon as an indicator of the cryptocurrency’s fundamental network strength. Its hash rate has declined significantly over the past few weeks in tandem with Bitcoin’s price, plummeting from its all-time high of roughly 125 million TH/s in early-March to its current levels at roughly 100 million TH/s – a 20% drop. Image Courtesy of Blockchain.com This plunge has come about as BTC shows signs of technical weakness, with its recent selloff leading many smaller miners to shut off their rigs due to being unprofitable. Here’s Why a Declining Hash Rate May be Bullish for BTC Although some see a declining hash rate as being emblematic of underlying network weakness, it may actually be a sign that Bitcoin is poised to see a notable rally in the near-term. Miners offer the crypto markets with a steady stream of selling pressure, selling their earned BTC for fiat currency in order to fund their operations. This is particularly true when it comes to smaller mining operations, as the large ones are able to operate at unprofitable levels due to having massive reserves of capital. When Bitcoin’s price declines so sharply that it is no longer profitable to mine, many smaller operations temporarily wind down their rigs, while the larger operations hold their acquired BTC in hopes of selling it for a profit at more favorable prices. That being said, a declining hash rate may signal that Bitcoin is about to see the stream of selling pressure provided by miners wane, giving the benchmark crypto significant room to rally. This number will likely further decline in the near-term as well, the crypto’s upcoming mining rewards halving and current technical weakness may make mining BTC even more unprofitable. Featured image from Shutterstock.

Data Shows Ethereum is Gearing Up for an Explosive Downside Movement

Ethereum has been closely tracking Bitcoin’s price action throughout the past several days and weeks, which has led ETH to once again enter a bout of sideways trading within the mid-$130 region. Despite being able to post a strong rebound from its recent lows, it is important to note that analysts are widely anticipating ETH to see an intense downwards movement in the near-term. This also comes in tandem with some slight growth in the cryptocurrency’s open interest on BitMEX, which may be a sign that the crypto’s next move will be massive. Ethereum Faces Weak Technical Situation as Analysts Eye Near-Term Downside  At the time of writing, Ethereum is trading up just under 1% at its current price of $133, which marks a slight decline from daily highs of over $135 but a notable rebound from lows of $125. These lows were set yesterday in tandem with Bitcoin’s decline to $5,800, with bull’s ardent defense of this level creating an upwards tailwind that has allowed virtually all major altcoins to rally. In the near-term, it does appear that the mid-$130 region has become resistance for ETH, and whether or not it moves past this level may be dependent on how Bitcoin trends. One trader said in a recent tweet that Ethereum is flashing signs of weakness against its BTC trading pair, noting that it is currently hovering directly between key support and key resistance. “Ethereum: The same approach still on ETH / BTC. I’m interested at 0.0172-0.0175 / 0.019-0.01925 areas for support or when we flip the 0.022 area. Right now it’s just hanging in between. Against USDT also not showing strength.” Image Courtesy of Crypto Michaël ETH Futures Sees Declining Volume, But Open Interest Begins Climbing  Two interesting trends that may suggest the next movement will be large are the crypto’s declining futures volume and climbing open interest on BitMEX. According to data from Skew, Ethereum’s futures volume across all major cryptocurrency exchanges has declined significantly in recent times, hitting a monthly low on March 29th before climbing slightly yesterday. In the past, low futures volume hasn’t lasted for too long, with it climbing as the crypto’s volatility picks up. This could mean that a big movement is imminent. Further supporting this notion is the fact that open interest on BitMEX is showing tempered signs of growth, which is also a historical indicator of imminent volatility. Featured image from Shutterstock.

Bitcoin Bulls are Being “Put to the Test” as Bears Begin Stacking Sell Orders

Yesterday’s Bitcoin rally has led the cryptocurrency into the mid-$6,000 region, with the mounting resistance at $6,500 proving to be too much for BTC’s bulls to surmount. This has led to yet another bout of consolidation around this level. One analyst is noting that Bitcoin’s bulls are currently being “put to the test” after losing a key technical level that was previously bolstering its price action. If bulls want to further extend their newfound momentum and propel the crypto higher, it is imperative that buyers are able to defend the crypto from dropping below $6,350. Bitcoin Loses Key Technical Level After Entering Bout of Consolidation  At the time of writing, Bitcoin is trading up just under 3% at its current price of $6,490, which is around where it has been trading at over the past day. BTC’s rally up to these highs came about following its recent decline to lows of $5,800, which is the point at which bulls stepped up and catalyzed some decent momentum. The fact that this short-term uptrend has stalled at its first key resistance level seems to elucidate some underlying weakness, suggesting that the crypto could be poised to face a rejection at this level. Big Cheds – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that BTC recently lost its EMA 8, with this ongoing bout of sideways trading marking a test for bulls. “Bitcoin: 1 hour – Bulls being put to the test after losing EMA 8, lower BB dip and rally,” he explained while pointing to the below chart. $BTC #Bitcoin 1 hour – Bulls being put to the test after losing EMA 8, lower BB dip and rally pic.twitter.com/OytdTaK1hz — Big Cheds (@BigCheds) March 31, 2020 BTC’s Key Support Sits at $6,350, and a Break Below This Level Could Be Dire  Michaël van de Poppe, another popular cryptocurrency analyst, explained in a recent tweet that Bitcoin’s current trading range exists between $6,350 and roughly $6,500, with this lower boundary being BTC’s key near-term support. “Bitcoin: Mostly range-bound, but it’s interesting that this monthly/weekly level at $6,350 provides support here. Might tap the resistance around $6,500-6,600 again, but mostly range-bound and not showing direction. Breaking range -> targeting $7,100/7,300,” he noted. $BTC #BITCOIN Mostly range-bound, but it's interesting that this monthly/weekly level at $6,350 provides support here. Might tap the resistance around $6,500-6,600 again, but mostly range-bound and not showing direction. Breaking range -> targeting $7,100/7,300. pic.twitter.com/MXpx6pq2GI — Crypto Michaël (@CryptoMichNL) March 31, 2020 If Bitcoin breaks below its near-term support, it is highly likely that it will continue declining until it retests the support that has been established at $5,800, with a decline below this level potentially leading BTC to see a free fall. Featured image from Shutterstock.

The US Dollar’s climb invalidates “money printer meme” and damages Bitcoin narrative

So-called “Crypto Twitter” has been enthralled by a widely circulated “money printer go brrr” meme that takes aim at the government’s incessant money printing, with many crypto enthusiasts pointing to the Fed’s current monetary policies as the reason why Bitcoin is so important.

Despite of these massive monetary injections that are – at least partially – fueled by money printing that inflates the US Dollar’s supply, the currency has been able to see some notable strength in recent times.

This has led some prominent commentators to note that the narrative regarding this money printing being bullish for Bitcoin and bearish for the US Dollar is being invalidated.

Although the short-term impacts of this loose monetary policy may not be fazing economists, investors, and even forex traders, the long-term case for the importance of a decentralized digital currency like Bitcoin is still incredibly strong.

U.S. government prints trillions to fund economic stimulus, but USD remains strong 

The recent economic damage created by the Coronavirus has led governments around the world, but especially the U.S. government, to take unprecedented actions to curb the economic impacts of this pandemic.

These actions have required trillions of dollars’ worth of funding, leading to the resurgence in anti-fiat sentiment from those critical about the economic impacts of the massive inflation caused by creating currency out of thin air.

In spite of this, it doesn’t appear that there have been any short-term implications of this economic activity, with one popular Bitcoin commentator noting that USD’s value has actually grown.

“They printed $6 trillion out of thin air and the value of the USD went… UP. Let that sink in. How’s that narrative working out for you?”

Bitcoin BTC Crypto
Image Courtesy of MikeinSpace

Bitcoin’s long-term position as a fiat alternative is still strong despite narrative damage 

Although those holding and interacting with US Dollars may not be seeing any immediate implications of the Federal Reserve’s massive spending, it still highlights the need for a decentralized currency like Bitcoin – even if it damages the Bitcoin narrative in the short-term.

As previously reported by CryptoSlate, the Fed Chairman recently admitted in the interview that the central bank essentially has unlimited spending power, which was a harrowing statement that elucidated the inherent lack of value that unbacked fiat currencies have.

Eventually, it is highly probable that massive inflation of fiat currencies will eventually strike a major blow to the traditional financial system as we know at, with scarce cryptocurrencies like Bitcoin providing viable alternatives to fiat currencies.

The post The US Dollar’s climb invalidates “money printer meme” and damages Bitcoin narrative appeared first on CryptoSlate.

BitMEX open interest is showing signs of rebounding; here’s what this could mean for Bitcoin

Bitcoin’s price action seen throughout the past several days has been rather lackluster, with the benchmark cryptocurrency seeing some choppy trading that has led it to establish a wide range between $5,800 and $6,800.

Interestingly, BitMEX’s open interest has risen in tandem with this turbulence – a sign that traders are growing more interested in entering the markets.

One analyst believes that from a fundamental standpoint this is bullish for BTC in the near-term and his analysis – which has proven to be accurate so far – suggests that the crypto’s rebound from its recent lows is far from over.

Bitcoin open interest on BitMEX begins climbing as bulls and bears reach an impasse

Analysts and investors alike have long looked towards BitMEX’s open interest as an indicator of traders’ involvement within the market, with heightened involvement typically being indicative of imminent volatility.

This was seen throughout early and mid-February, when Bitcoin’s OI on the platform ballooned past $1 billion, with historical precedent showing that this is a historically bearish occurrence.

This once again proved to be true, as the price decline seen in the time following Bitcoin’s OI being at over $1 billion was one of the most intense it has ever seen, with its price cratering from highs of $10,500 to lows of $3,800.

Today, according to data from Skew, BitMEX’s OI tapped highs of nearly $500 million before dropping slightly, which marks a notable climb from multi-day lows of $370 million that were set just two days ago.

Bitcoin

This climbing OI is coinciding with some heightened volatility, and it may be a sign that Bitcoin is gearing up for yet another big move.

Does recovering OI favor bulls in the near-term? This analyst thinks so

One popular cryptocurrency analyst who trades under the name “Mac” explained in a recent note that the culmination of Bitcoin’s climbing open interest, negative funding, and positive money flow are all positive short-term signs.

“Open interest up +13K BTC after 27. March expiry. Thoughts: – Daily money flow looking good – Funding + prem still very negative…”

As for how this could influence Bitcoin’s price, Mac noted yesterday that he believes BTC would decline towards $5,800 before seeing a fleeting “scam pump” that leads it up into the $7,000 region.

“Bias: Weak dump ($5800s) into scam pump ($7000s) during this upcoming week.”

Because Bitcoin did drop to $5,800 as he predicted and rebounded there, it is a possibility that it will continue climbing in the near-term until it breaks into the $7,000 region.

The post BitMEX open interest is showing signs of rebounding; here’s what this could mean for Bitcoin appeared first on CryptoSlate.

This on-chain indicator may spell trouble for the 88% of Ethereum investors who are underwater

Data shows that a whopping 88 percent of Ethereum investors are currently underwater on their investment, with the crypto’s massive decline from its all-time highs leaving a trail of financial destruction in its wake.

This figure, although already shockingly large, may balloon even more in the weeks ahead, as some grim on-chain data suggests that ETH may be positioned to see some further bearishness in the days and weeks ahead.

The number of Ethereum “bagholders” just keeps growing: 88% are at a loss

Data from on-chain research and analytics firm IntoTheBlock elucidates an interesting trend when it comes to Ethereum investors’ profitability.

Currently 88 percent of the crypto’s investors are at a loss, with only 12 percent acquiring their cryptocurrency at below its current price.

Ethereum
Global In/Out of the Money of Ethereum (Image Courtesy of IntoTheBlock)

This statistic, when put in contrast with Ethereum’s macro price action, isn’t too surprising, as the second-largest cryptocurrency by market cap has declined significantly from its early-2018 highs of over $1,400 that was set at the peak of the bull market.

After facing a violent downtrend after tapping these highs, ETH reeled to lows of $80 in December of 2018 before once again revisiting the $80 region just a few weeks ago.

With this turbulent price action in mind, it’s clear that the only Ethereum investors who are currently profitable are those who bought the crypto’s recent lows and those who entered positions before the insane 2017 bull run.

Another striking statistic relating to the crypto’s embattled investors is the fact that nearly 4 million ETH addresses – roughly 10 percent of the total number of existing addresses – acquired their tokens at between $714 and $1,340.

This grim on-chain data suggests the number of unprofitable ETH holders may soon grow

Another set of key data elucidates an alarming trend when it comes to the number of large transactions that have occurred on Ethereum’s blockchain, with this number diving in recent times.

According to IntoTheBlock, the decline in large transactions – which are deemed that are greater than $ 100,000 USD in value – is a highly bearish on-chain signal that suggests the crypto may be poised to see some near-term downside.

Ethereum large transactions
Number of Ethereum large transactions (Image Courtesy of IntoTheBlock)

While looking at the above chart, it is clear that the large transaction volume often front-runs notable price movements, with its ongoing decline suggesting that ETH’s price may soon follow suit and also decline further.

The post This on-chain indicator may spell trouble for the 88% of Ethereum investors who are underwater appeared first on CryptoSlate.

Bitcoin is Forming a Bull Cross After Rallying to $6,500; Analysts Now Targeting $7,700

Following a brief selloff that led Bitcoin down to lows of $5,800 overnight, the crypto has been able to post a strong and sustainable rebound that has since led it to climb towards $6,500, with bulls currently attempting to reclaim its previous position within the upper-$6,000 region. It now appears that bulls are in the process of attempting to form an EMA bull cross, which could bolster its price action in the hours ahead. Furthermore, bulls are also attempting to surmount a key resistance level that was recently established, leading one analyst to note that a weekly close above this level could lead it to rally up towards $7,700. Bitcoin Sees Massive Rebound as Bulls Post Ardent Defense of $5,800  At the time of writing, Bitcoin is trading up just under 10% at its current price of $6,490, which marks a notable climb from daily lows of $5,800 that were set overnight following the crypto’s break below $6,000. It now appears that the benchmark cryptocurrency is pushing up against key resistance at $6,500, with a break above this level potentially opening the gates for significant near-term upside. As for what could push BTC above this resistance, Big Cheds – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that he believes it is flexing a “potential 8/34 EMA bull cross” on its 4-hour chart. “Bitcoin 4 hour -Flexing a potential 8/34 EMA bull cross,” he noted while pointing to the chart seen below. $BTC #Bitcoin 4 hour -Flexing a potential 8/34 EMA bull cross pic.twitter.com/J6nJldbVUe — Big Cheds (@BigCheds) March 30, 2020 This formation could significantly bolster the crypto’s near-term price action if it is confirmed in the coming several hours. BTC Pushes Past Key Resistance Level; Opening the Gates for a Move to $7,700  As for how high a confirmed break of the current resistance that Bitcoin is facing could send it, one analyst is noting that he is eyeing a movement up towards $7,700. Teddy, another popular cryptocurrency analyst on Twitter, recently shared a chart showing two potential paths for the crypto, noting that it is currently in the process of taking the bullish route. “Looks like BTC picked the green way,” he said while pointing to the below chart. Looks like $BTC picked the green way pic.twitter.com/JZHUdaFII1 — Teddy (@TeddyCleps) March 30, 2020 The upside target seen on the chart he references exists at roughly $7,700, which would mark a notable climb from where BTC is currently trading at. Featured image from Shutterstock.

Bitcoin Poised for Continued Downside as Bulls Struggle to Surmount Critical Level

Bitcoin’s decline to lows of $5,800 overnight was met with significant buying pressure that subsequently allowed the cryptocurrency to climb higher, with BTC bulls now attempting to reclaim the crypto’s previous position within the upper-$6,000 region. This early morning rebound came about after a short bout of intense selling pressure, and buyer’s ability to absorb this and defend against further downside is certainly a bullish sign. Despite this, one trader is now noting that he believes Bitcoin is firmly in bear’s control as long as it trades below one key level that has yet to be surmounted. Bitcoin Garners Tempered Momentum as Analysts Watch Key Technical Formations  At the time of writing, Bitcoin is trading up just under 4% at its current price of $6,350, which marks a notable climb from daily lows of $5,800 that were set at the bottom of the overnight selloff. Bulls did post an ardent defense of this level, however, which is what catalyzed the momentum that has led the crypto up to its current price levels. In the near-term, whether or not Bitcoin is able to climb higher or not may depend on if it is able to close its monthly candle above $6,425, a level that one analyst thinks is of the utmost importance. “BTC monthly close above 6425 would be solid bullish SFP to make April-May brighter. For now, it needs to unfold this symmetrical triangle, contracting consolidation. Safest non-scalp swing trades on breakout (or breakdown) retest.” Image Courtesy of CryptoBirb BTC Faces Heightened Bearishness Below Mid-$6,000 Region  Even if BTC is able to close its monthly candle above $6,425, it still faces some intense resistance between roughly $6,450 and $6,550. George, a popular cryptocurrency trader on Twitter, spoke about the resistance that exists around this level in a recent tweet, explaining to his nearly 20k followers that he believes Bitcoin is in firm bear territory until it is able to firmly break above this region. “BTC: As long as we stay below green and close the daily below Sun[day] high we should be good for continued downside imo,” he noted while referencing the below chart. $BTC As long as we stay below green and close the daily below Sun high we should be good for continued downside imo… pic.twitter.com/DFIemLyQk7 — George (@George1Trader) March 30, 2020 Because there is just over 24-hours left until Bitcoin’s monthly close, how it trends in this relatively short time frame will be critical for determining which direction the aggregated market will head throughout April. Featured image from Shutterstock.

Ethereum is Nearing a Make or Break Level; Rejection Here Could Be Dire

After facing an intense selloff yesterday that led Bitcoin, Ethereum, and virtually all other major altcoins to post some intense losses, the aggregated market has been able to recover slightly today, being led higher by BTC. This upwards momentum has led ETH to rapidly approach a key resistance level that bulls may struggle to surmount in the near-term. Multiple analysts are now noting that it is a strong possibility that the crypto sees a violent rejection at this level, which could lead it to see a capitulatory decline towards the support that has been established around $100. Ethereum Rallies Past $130 as Market Rebounds, But Key Resistance Fast Approaches At the time of writing, Ethereum is trading up just over 2% at its current price of $132, which marks a notable climb from daily lows of $125 that were set yesterday in tandem with Bitcoin’s decline to $5,800. From this point, ETH has been able to garner some decent upwards momentum, although this has shown some signs of stalling after it touched its daily highs of $133 just a few hours ago. TraderXO – a popular cryptocurrency trader on Twitter – explained in a recent tweet that he believes Ethereum will climb higher in the hours ahead if Bitcoin is able to push up towards $6,600, although he believes this movement will be followed by a strong retrace down towards $106. “ETHUSD: If btc kicks on to 65s – 66s then expecting ethusd to follow. Run some local highs, enter on the rejection, blue arrows,” he explained. $ETHUSD If btc kicks on to 65s – 66s then expecting ethusd to follow. Run some local highs, enter on the rejection, blue arrows pic.twitter.com/jSS6UuuyMM — TraderXO (@TraderX0X0) March 30, 2020 Analysts Agree: A Rejection at Resistance Will Be Dire for ETH  Other traders have offered a similar sentiment to TraderXO, with one noting that $136-138 is the key level that bulls must surmount if they want to catalyze a movement up towards $159. He further notes that a rejection here, however, will likely lead the crypto towards $100. “ETH: On the BTC pair: Nothing changed, still in between levels. Flipping 0.022 would make me somewhat bullish. On the USD pair: approaching resistance. Breaking and flipping $136-138 and we can target $159. Rejecting -> Targeting $103-105.” Image Courtesy of Crypto Michaël It does appear that where major altcoins like Ethereum trend in the near-term will be partially dependent on Bitcoin’s price action, but it still remains unclear as to whether the resistance ETH faces in the upper-$130 will be insurmountable. Featured image from Shutterstock.

Crypto payments gaining momentum: Coinbase Commerce garners massive utilization from consumers and merchants

Bitcoin’s relative youth has made it increasingly unclear as to what role it will eventually play within the world.

From starting out as a popular method of transacting beneath the traditional financial system on dark-web sites, to becoming a playground for traders and speculators, BTC has been evolving at a rapid pace, only recently gaining entrance into mainstream finance.

In spite of this growth, there is still much debate over whether Bitcoin is a digital store of value, a currency, both, or neither.

One shocking statistic, however, seems to make a strong case for Bitcoin’s status as a currency, as adoption and utilization seen on one major BTC-focused payments platform is striking.

Cryptocurrency exchange Coinbase has been one of the primary figures spearheading the push to make crypto mainstream, and data regarding the utilization of their commerce platform suggests that BTC has garnered massive adoption as a currency.

Jason Yanowitz, the co-founder of the BlockWorks Group, spoke about the adoption of this platform in a recent tweet, explaining that more people are making the decision to transact with Bitcoin rather than fiat currencies each day.

“Coinbase Commerce has now processed more than $200M in Bitcoin transactions. They have 8,000+ retailers in their merchant network. Everyday, more and more people make the decision to transact in Bitcoin instead of their fiat currency.”

This data bolsters the notion that Bitcoin’s primary use in the future will be as a currency, as many individuals do seem to be relying on it to conduct a significant amount of transactions.

As Bitcoin’s “digital gold” narrative fades, will “digital currency” narrative bloom?

Bitcoin’s blatant correlation with the global equities market over the past couple of weeks has done significant damage to the safe haven narrative that many investors had subscribed to.

Although BTC could become a safe haven at any moment, for the time being data supports the notion that Bitcoin has been globally adopted as a decentralized alternative to fiat currencies.

As more and more individuals begin transacting with Bitcoin, and as platforms like Coinbase commerce make it easier to transact with crypto, it is highly probable that it will continue to garner greater adoption as a currency, potentially deriving significant value from this down the line.

The post Crypto payments gaining momentum: Coinbase Commerce garners massive utilization from consumers and merchants appeared first on CryptoSlate.

Bitcoin miners see heightened outflow as market conditions grow foggy

The turbulence seen within the cryptocurrency market throughout the past month has led to some fear amongst Bitcoin miners, which is illustrated by data regarding the BTC balance and outflows seen amongst miners over the past thirty days.

This data shows that miners have significantly decreased their BTC holdings throughout the month of March, which is a sign that they are attempting to shore up capital in anticipation of there being further volatility in the near-term.

This also comes just weeks before the cryptocurrency undergoes its next mining rewards halving, which will decrease Bitcoin’s annual inflation and further reduce the profitability of mining it.

Bitcoin miners begin offloading their holdings; a sign of what’s to come?

Observing how miners handle their Bitcoin holdings can offer insights into the state of the market.

Current data from TokenAnalyst suggests miner’s Bitcoin balance declined by 13.26 percent over the past 30 days, with this regression coming about in tandem with the intense volatility seen by the aggregated cryptocurrency market.

During this period, Bitcoin saw an unprecedented decline that led it to post a violent drop from the $8,000 region to lows of $3,800, from which point it has been able to climb higher.

Bitcoin price plummets to $5,200 in a 1-hour shock crash, liquidating $665 million
Related: Bitcoin price plummets to $5,200 in a 1-hour shock crash, liquidating $665 million

Although BTC has been able to recoup much of its recent losses, the severity of this recent movement has shifted investor sentiment and appears to have heightened the market’s current uncertainty.

Because miners are currently in the process of selling off their holdings, this does seem to indicate that they are hedging their capital, with an expectation of there being further volatility in the days and weeks ahead.

BTC volatility flushes out smaller miners, alleviates stream of selling pressure

Matt D’Souza, a blockchain fund manager, recently spoke about the vast influence that miners have over Bitcoin’s price action, noting that the steady stream of selling pressure they provide on the digital asset has significantly hampered its growth.

Importantly, he notes that the recent mining difficulty reduction – which reduced the mining difficulty by nearly 16 percent – will likely lead to positive price action in the future, due to historical precedent.

Bitcoin
Image Courtesy of Matt D’Souza

Furthermore, D’Souza claims that because the recent market volatility has led many smaller miners to shut off, the larger miners that are still operating are likely to hold their acquired BTC with hopes of selling it at a higher price.

Smaller miners who run on thin margins don’t have this luxury, and have long been the primary source of constant selling pressure on BTC.

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Bitcoin Reaches a “Bounce or Die” Level as Bulls Lose Their Footing

After a day-long period of consolidation within the lower-$6,000 region, bulls have once again lost their footing, with bears catalyzing a break below the support that had been established at $6,000. This has led analysts to note that Bitcoin is fast approaching a “bounce or die” level that buyers must defend, or else the benchmark cryptocurrency could once again find itself caught within a capitulatory downturn that leads it to decline back towards its recently established lows. This potential selloff comes as Bitcoin’s weekly close fast approaches, and a failure to bounce prior to this close could prove to be dire for the cryptocurrency. Bitcoin Faces Massive Selloff as Buying Pressure Begins Evaporating At the time of writing, Bitcoin is trading down over 5% at its current price of $5,900, which marks a notable decline from daily highs of $6,300 that were set yesterday when bulls attempted to garner some upwards momentum. The failure for bulls to sustain this momentum led to a rejection at this level, with the subsequent downtrend marking a significant extension of that which was first incurred when the crypto’s strong rally from $3,800 stalled at $6,900. In the near-term, it is imperative that buyers defend against a drop below $5,900 – as this is where a significant amount of support has been established. This volatility also comes just a couple of hours before BTC posts its weekly candle close, with a bearish close likely bolstering bears, leading the crypto to decline further in the week ahead. BTC Reaches “Bounce or Die” Level as Bulls Falter  This plunge has led Bitcoin to what appears to be a “bounce or die” support level. Teddy – a prominent cryptocurrency analyst on Twitter – mused this possibility in a recent tweet, offering a chart showing that the crypto is currently resting on a key multi-week support level. Image Courtesy of Teddy If this level is shattered, the next key level marked on the chart above sits at $5,450. Any potential near-term weakness could also be further perpetuated by the bearish economic backdrop that Bitcoin is currently trading against. If the stock market’s rebound seen throughout this past week shows signs of faltering, its next downturn could drag BTC down with it. The futures market’s imminent open, coupled with Bitcoin’s upcoming weekly close, should offer investors with significant insights into where the crypto market is heading in the week to come. Featured image from Shutterstock.

Crypto Market Highly Bearish Beneath One Level; Here’s What Could Tip the Scales

The aggregated crypto market has been struggling throughout the past few weeks, with it incurring an insane selloff that was catalyzed by Bitcoin’s decline from its mid-February highs of $10,500 to lows of $3,800. This selloff did significant damage to the market’s technical strength, leading many investors and analysts to adopt a bearish sentiment – a far cry from that seen throughout the beginning part of the year. One prominent analyst is now noting that there is one key level that bulls must surmount if they want to propel the market higher, as a failure to do so could lead to significant losses in the days and weeks ahead. Crypto Market Struggles to Break Key Resistance as Bearishness Grows  At the time of writing, the aggregated crypto market capitalization is sitting at roughly $174 billion, which is around where it has been trading at over the past few days. Over a one-month time frame, it is important to note that the market has seen significant volatility, with the market cap cratering from highs of $264 billion in early-March, to lows of $118 billion on March 13th. This massive decline came about in tandem with the market-wide selloff that led many major cryptocurrencies to plunge by 50% or more. Michaël van de Poppe – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that bulls need to reclaim the $185-190 billion market cap level in order for the aggregated market to be bullish. “The total market capitalization of crypto is pretty clear here too. Needs to reclaim the $185-190 billion level to become bullish. Until then, just a bearish retest,” he explained. $BTC #BITCOIN #CRYPTO The total market capitalization of crypto is pretty clear here too. Needs to reclaim the $185-190 billion level to become bullish. Until then, just a bearish retest. pic.twitter.com/ESi448nC3B — Crypto Michaël (@CryptoMichNL) March 29, 2020 What Could Tip the Scales Back into Bull’s Favor?  In order for bulls to regain the upper hand over bears, it is imperative that Bitcoin begins leading the entire market higher. In the near-term, it is possible that Bitcoin is in the process of forming a bullish “triple bottom” formation, although Big Cheds – another popular crypto analyst – explained that BTC is still on “unsteady footing.” “Bitcoin: 1 hour – On unsteady footing, trying to form a triple bottom,” he explained while pointing to the below chart. $BTC #Bitcoin 1 hour – On unsteady footing, trying to form a triple bottom pic.twitter.com/Jm6D3EqIMi — Big Cheds (@BigCheds) March 29, 2020 Should Bitcoin confirm that pattern and begin climbing higher, it is possible that the market-wide surge will lead the total market capitalization to surmount its key near-term resistance, sparking a notable rally. Featured image from Shutterstock.

Here’s why the Fed boasting about having “unlimited ammo” is an endorsement of crypto

Crypto in general has long been viewed as a sort of the antithesis of the traditional finance system, with central bank’s constant money printing and loose monetary policy running counter to the credo of scarcity that underlies Bitcoin.

The recent turbulence in the global economy, and the Federal Reserve’s reaction to it, seems to have further confirmed the importance and critical need for decentralized digital currencies.

Fed Chairman Jerome Powell further confirmed the imperative nature of crypto in a recent interview, in which he explained that the Fed is “not going to run out of ammunition” – a comment that lends credence the widespread “money printer go brrrr” meme that is currently spreading across social media.

Fed confirms that they have unlimited cash reserves in a recent interview

Although it has never been a secret that the Federal Reserve essentially has unlimited money, it is often something that they have been rather discrete about.

This is emblematic of the fact that sitting Fed Chairmen rarely give interviews, with their words holding significant power that can sway markets.

In spite of this, Federal Reserve Chairman Jerome Powell recently gave one of these rare interviews with NBC’s Today show, in which he told the host that the Fed running out of buying and lending power simply “doesn’t happen.”

“We will keep doing that aggressively and forthrightly, as we have been… When it comes to this lending we’re not going to run out of ammunition. That doesn’t happen.”

The lending he is referring to is the Fed’s massive multi-trillion-dollar plan to help bolster the economy and keep credit flowing properly, with this plan encompassing bond purchases, direct business lending programs, and more.

Fed’s admission of having unlimited monetary supply a striking endorsement of crypto

One of the hallmark traits of Bitcoin – the original crypto – has been its limited supply, with its regular mining rewards reductions acting as deflationary measures to ensure that the release of unmined BTC is predictable and fixed.

This runs counter to the traditional financial system’s loose monetary policy that entails constant inflation and unpredictability.

Powell’s claims regarding having an unlimited supply of “ammo” to combat the ongoing economic decline is startling, as it shows just lacking in value fiat currencies are.

Although in the short-term the injection of freshly minted money into the economy will likely bolster it, the long-term impacts of these policies are grave, and may set the stage for an implosion of the current financial system as we know it.

This potential implosion may, with time, usher in a societal shift towards decentralization that favors crypto.

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Bitcoin’s Open Interest and Money Flow Suggests a Strong Pump is Imminent

Following an extended period of rangebound trading within the upper-$6,000 region, Bitcoin now appears to have entered yet another bout of consolidation around its current price of $6,100. Although it remains unclear as to whether or not Bitcoin’s current market structure is bullish or bearish, there are a few fundamental factors that may suggest a price pump is imminent. This comes as one analyst notes that there is one technical indicator that suggests Bitcoin is poised to see some near-term upside, but it must first surmount a key technical level. Bitcoin Consolidates as Analysts Watch Key Technical Formations At the time of writing, Bitcoin is trading down just under 2% at its current price of $6,160, which marks a slight decline from daily highs of $6,300 that were set yesterday when bulls attempted to invalidate the bearishness sparked by BTC’s plunge to lows of $6,100. Although bulls have not been able to post any sort of sustainable rebound in the time following Bitcoin’s decline from multi-day highs of $6,900, analysts are now noting that BTC may have some underlying bullishness that ultimately allows it to climb higher. Teddy, a prominent cryptocurrency analyst on Twitter, spoke about this bullish undercurrent in a recent tweet, explaining that BTC’s cloud indicator is currently green, suggesting that the crypto is positioned to see some near-term upside. “BTC: Green cloud suggests that the bias of the weekly trend is still bullish. However, closing below the 200ema will postpone any bullish price action – as the cloud will turn resistance,” he explained. #BITCOIN | $BTC Green cloud suggests that the bias of the weekly trend is still bullish (🔥) However, closing below the 200ema will postpone any bullish price action – as the cloud will turn resistance __ Free access to cloud? Follow and DM @YellowBlock_io for instructions pic.twitter.com/sPomdGbFf5 — Teddy (@TeddyCleps) March 29, 2020 Bullish Signs Proliferate: BTC Incurs Rising Open Interest and Money Flow  Fundamental factors also support the notion that Bitcoin may soon see some upside, as BTC is currently incurring some decent daily money flow coinciding with its climbing open interest. Mac – another popular trader – explained that he believes these fundamental indicators may lead BTC to pump up towards $7,000 in what could be a fleeting movement. “Open interest up +13K $BTC after 27. March expiry. Thoughts: – Daily money flow looking good – Funding + prem still very negative. Bias: Weak dump ($5800s) into scam pump ($7000s) during this upcoming week,” he explained. Open interest up +13K $BTC after 27. March expiry. Thoughts: – Daily money flow looking good – Funding + prem still very negative Bias: Weak dump ($5800s) into scam pump ($7000s) during this upcoming week. pic.twitter.com/xndTMKe7f9 — Mac ❄🐺 (@MacnBTC) March 29, 2020 If the confluence of these bullish fundamental and technical factors is able to bolster Bitcoin before its weekly close today, it is possible that it will see some further upwards momentum in the days ahead. Featured image from Shutterstock.

Analysts believe Bitcoin may see months of consolidation despite investors’ “extreme fear”

Bitcoin saw a relatively sharp decline late-yesterday that marked a bearish resolution to its multi-day bout of sideways trading within the upper-$6,000 region.

This downwards movement has come about during a time of immense fear amongst cryptocurrency investors and has further compounded this uncertainty – leading the benchmark crypto’s fear and greed index to hit “extreme fear” levels.

In spite of this, analysts are noting that Bitcoin is on the cusp of closing its monthly candle below its 21-day ema, with history showing that a monthly close below this level could lead to a multi-month period of sideways trading.

Bitcoin falls towards $6,000 as bulls struggle to build support

At the time of writing, Bitcoin is trading down just under two percent at its current price of $6130, which marks a notable decline from daily highs of nearly $6,800, but a slight climb from lows of $6,000.

It does appear that bulls are in the process of establishing some support in the lower-$6,000 region, with buyers stopping this selloff from extending further just a few hours ago when bears stepped up and attempted to push BTC below $6,000.

This price action has come about in the time following Bitcoin’s break below its lower trading range boundary at $6,600 yesterday, with the ongoing selloff confirming that bulls do not currently have enough strength to break through the resistance around $7,000.

One interesting factor to keep in mind is that investors are growing extremely fearful at the moment, with this often being looked upon as a counter-indicator that has led one analyst to deem times of intense fear as a “buy zone” for Bitcoin.

“BTC in the buy zone for those yet to build a position…”

Bitcoin

Failure for BTC to close its monthly candle above this key level could lead to months of lackluster price action

Teddy – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that Bitcoin is currently trading below its 21-day exponential moving average (EMA), which is a key technical level that must be reclaimed if bulls want to have a chance at pushing it higher.

“BTC: Praying that we get a monthly close above the 21 day [exponential moving average]. Failure to do so, we will have a few more boring ranging months below it – similar to previous breakdown.”

Bitcoin
Image Courtesy of Teddy

Because there are only a few days left before Bitcoin closes its March candle, how the crypto trends going into this close will be imperative for determining which direction it will trend in April and in subsequent months.

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Sign of Strength: Bitcoin Sees Massive Spike in Buy-Side Orders Despite Selloff

Bitcoin’s sharp overnight selloff marked a firm end to the bout of consolidation that it had been experiencing over the past few days, with this movement sending BTC reeling down to its key support within the lower-$6,000 region. Although this movement was overtly bearish and did seem to degrade the cryptocurrency’s near-term market structure, it is important to note that data regarding the magnitude of buy orders just a hair below BTC’s current price seems to be a bullish sign. The placement of these buy orders also coincides closely with where one prominent trader believes is a great long entry point. Bitcoin Posts Bearish Resolution to Recent Consolidation, But Traders are Optimistic At the time of writing, Bitcoin is trading down over 6% at its current price of $6,250, which marks a notable decline from daily highs of $6,800 that were set yesterday when bulls attempted to breach the upper boundary of its previous trading range. The break below the support that had been established around $6,600 instantly led the crypto to freefall until it reached $6,100, which is where bulls stepped up and guarded against further downside. Although the face value of this movement was bearish, Bitcoin’s decline was still relatively tempered, and analysts now seem to believe that the support existing around $5,900 could be enough to spark a major rally. Flood – a highly respected cryptocurrency trader with a track history of accurately calling multiple major movements – noted in a tweet that traders should long $5,900 for “infinite money,” signaling that he anticipates the crypto to see a strong reaction to this level. Long 5.9 for infinite money — Flood [BitMEX] (@ThinkingUSD) March 28, 2020 Data Supports the Importance of $5,900; Suggests Buy Orders are Stacking The significance of this level is further proved by data surrounding the amount of buy orders that have been placed here. One trader on Twitter recently offered a chart to his followers, showing that buy orders around Bitcoin’s current price levels significantly outweigh sell orders, signaling that a rebound could be imminent. After offering the above chart elucidating this trend, he went on to explain that there are roughly “30-50% more bids than asks at +/-4%” from the cryptocurrency’s current price. This means that buyers currently far outweigh sellers, suggesting that this recent selloff was unwarranted and that it will be closely followed by some notable near-term upside. Featured Image from Shutterstock.