Bitcoin Price ‘Floor’ to Jump to $7-8K Post Halving

Bitcoin price recently plummeted to under $4,000, bouncing off what may believe is the absolute “floor” for the first-ever cryptocurrency. However, according to data from a top crypto industry analyst, the price floor of Bitcoin could jump to as much as $7,000 to $8,000 immediately after the halving takes place this coming May. But what exactly does that mean for the leading cryptocurrency by market cap? Analyst: Bitcoin Price Floor To Jump To $7,000 to $8,000 Following Halving Bitcoin’s halving is currently set to occur on May 13, 2020 – just a little more than a month away. The event sees the block reward miners receive for validating each new Bitcoin block before it’s added to the blockchain, slashed in half, lowering the reward from 12.5 BTC to just 6.25 BTC. When this happens, the cost of production immediately rises by double. Related Reading | Miner Capitulation: Hash Rate is Dropping Faster Than Bitcoin Price And because miners are responsible for the largest portion of sell pressure in the market – as a result of these miners selling BTC to fund operations – when the cost of production rises, they often wait until prices catch up with production costs and stop selling their holdings. The lack of sell pressure causes prices to grow quickly, resulting in what many crypto analysts refer to as a “miners bottom” – or an absolute price floor to which Bitcoin price won’t trade below because if it does, miners will stop selling and prices eventually stabilize. And according to data, that miner’s bottom is set to rise to over $7,000 to $8,000, the moment the halving takes place next month. The mining cost per BTC, via its interaction with sell pressure, historically has resulted in the BTC floor price. The floor post-halvening is around $7-8k (analysts closer miner OPEX and CAPEX may have a better picture). Also consider pricing effects above this floor.. /1 https://t.co/6NtTHhbrvq — Willy Woo (@woonomic) April 6, 2020 Started From the Miner’s Bottom Now We’re Here It’s been a rough two and a half years since Bitcoin price reached an all-time high record of $20,000. Since then, the asset went through a long, arduous bear market that caused the first-ever cryptocurrency to plummet to its current “bottom” of $3,200. At that time, the cost of producing each Bitcoin was roughly $3,200, setting the floor as to how far Bitcoin could in theory fall. Related Reading | Bitcoin Trades Below Production Cost, Miners Are Better Off Buying  When Bitcoin price collapsed to $3,800 this past March amidst the coronavirus outbreak, it fell far deeper than the cost of production, which could be in part why Bitcoin was able to rally by over 80% in the days following the collapse. If Bitcoin’s price floor is soon set at between $7,000 to $8,000, it may not be too long until the leading cryptocurrency by market cap never again trades below 5-digit prices. And while $10,000 failed to incite FOMO the last two times since the bear market began, the third time could be the charm that when combined with the halving, helps propel Bitcoin price to new highs. Featured image from Shutterstock

Double Dragon: Is Ethereum Ready For Violent Reversal?

Ethereum continues to struggle amidst the current vicious and volatile market environment caused by the coronavirus outbreak and recession on the horizon. But following a historic market collapse that wiped out nearly all of the asset’s gains thus far this year, Ethereum may finally be ready for a violent reversal after a pair of dragonfly doji have formed two weeks in a row on ETHBTC price charts. Ethereum Thus Far Fails To Hold Up Against Current Crisis Ethereum kicked off 2020 as bullish as can be, surging over 100% in just a couple of short months due to the rapid growth of the decentralized finance industry that Ethereum is often considered the backbone of. The number two cryptocurrency by market cap led the market in rallying, and Ethereum and other altcoins vastly outperformed Bitcoin during this time. Related Reading | Investor: Ethereum Is Poised To Replace Wall Street’s Archaic Back End But the coronavirus crippling the economy proved to be far too much for Ethereum to withstand, and it and the rest of the cryptocurrency market came tumbling down, setting a new low for the year on USD pairs. On the ETHBTC trading pair, however, things are looking a lot more bullish now that the asset has stabilized following the crash. Double Dragonfly Doji on ETHBTC Pair Could Signal Powerful Reversal Although Ethereum retraced significantly against Bitcoin after the early 2020 breakout caused the altcoin to outperform the first-ever cryptocurrency, ETHBTC is showing signs of a strong reversal. According to weekly ETHBTC price charts, the last two weeks in a row have closed with dragonfly doji candlesticks. double dragonflys on $ETH weekly 🐉🛩 pic.twitter.com/RYL7bG7uS7 — tunez 2.35 (duke of theta) 🦆 (@cryptunez) April 6, 2020 A dragonfly doji is formed when the asset’s high, open, and close prices are roughly the same. The wick on either end shows aggressive buying and selling that resulted in a stalemate. The longer wick on the buying end shows that bulls were more aggressive than bears. Doji are Japanese candlestick formations that typically indicate indecision.  When this occurs at the bottom of a downtrend, it suggests that sell pressure is weakening and a powerful reversal could be brewing. A pair of two dragonfly doji is rare, and even more significant, suggesting that bulls and bears have been equally matched. However, following weeks of downtrend, this could signal that bears are about to lose control, and bulls could push the price of the asset considerably higher. Related Reading | Ethereum Buy Signal Hints At Sustained Bitcoin Outperformance If Ethereum can hold at current levels, given the candlestick formations found at the bottom of the swing, a powerful surge could be next. However, with all of the uncertainty surrounding financial markets currently due to the coronavirus and coming recession, the indecision the dragonfly doji is calling attention to could be nothing more than a pause for air before downside resumes. Featured image from Shutterstock

Rough Week Ahead, Correlation With Stock Market Could Be Deadly for Bitcoin

Bitcoin price has nearly doubled since the cryptocurrency experienced a massive collapse in mid-March, falling to as low as $3,800. Although the first-ever cryptocurrency is now trading at prices above $7,000, with the way the asset has been tightly correlated to the stock market and with how rough the week ahead is expected to be, Bitcoin price could suffer yet another catastrophic collapse. Continued Correlation With Stock Market Could Have Deadly Implications As Coronavirus Cases Peak Bitcoin price has been closely tracking alongside the S&P 500 and other major stock market indices, which thus far hasn’t boded well for the leading cryptocurrency by market cap. The selloff that first started in the stock market spilled over into cryptocurrencies, precious metals, and other assets, just as coronavirus fears began to spiral out of control. Related Reading | How the Dow’s Fractal of Doom Could Take Bitcoin to $1,000  The historic collapse took Bitcoin price down to $3,800 after trading at over $10,000 just a month prior. In just a couple weeks following the massive drop, Bitcoin price is already trading well above $7,000. The hope of a recovery ahead of the upcoming halving this May has sentiment bullish once again, despite the current economic climate. But the recent rally in Bitcoin price may come to an end this week, as the widespread expectation across the United States is that over the next two weeks, cases – particularly deaths – related to the spread of COVID-19 outbreak are expected to peak. Futures trading around mid range. If SPX breaks this mini range to the upside I expect some of those higher fibs to be hit. Would look at the 50% 1st. I think the correlation between SPX and BTC will be back on this week. I just see a rough week ahead with the NY situation. pic.twitter.com/opeXWHZ63P — CryptoISO (@crypto_iso) April 6, 2020   Bitcoin Price in Danger As Rough Week Ahead Expected With Bitcoin price following the stock market, another drop could occur in the coming week. According to data and the coronavirus “curve,” cases are expected to peak in the US over the next two weeks, especially in New York which has been dubbed the epicenter of the outbreak in the country. The morbid images of dead bodies being stored in makeshift morgues could cause another wave of panic-selling across Wall Street, located dead smack in the middle of coronavirus ground zero. The media is having a field day with the frenzy and fear, further exacerbating the panic in the general public. And even the President Donald Trump himself has warned the public to expect some of the “toughest” two weeks the country has ever witnessed. Related Reading | A Chilling 40% Stocks Drop Warning May Rattle Crypto Market  With things looking so bleak and potentially triggering another selloff in the stock market, Bitcoin price could also take a beating, as investors dump the high-risk asset in a mad dash to cash. Only time will tell in terms of the impact the peak of the coronavirus curve will have on markets, but considering how deadly things are about to get, Bitcoin may not be the safest haven for storing wealth. Featured image from Shutterstock

Current Bitcoin Buy Pressure Dwarves Early 2020 Rally to Over $10K

Bitcoin price may be trading as much as 40% lower than it was at the start of they year, but the low prices are causing significantly more buy pressure in the cryptocurrency market than the massive early 2020 rally that took the asset to over $10,000. Remembering Bitcoin’s Rally in Early 2020 2017 was all about Bitcoin’s meteoric rise and putting cryptocurrencies on the map. The price of all major cryptocurrencies ballooned and retail investors flocked to the likes of Coinbase to FOMO buy the asset. 2018 saw the valuations of these emerging assets evaporate, and expectations surrounding their potential come back to reality. Related Reading | Crypto Market Reaches Longest Stretch of Extreme Fear In Over A Year In 2019, cryptocurrencies like Bitcoin saw the start of a recovery, but around the summer, the rally topped out and Bitcoin fell back to $6,000. At the start of 2020, Bitcoin price staged a major recovery, growing by over 50% and surging to above $10,000 – the same level that caused massive FOMO in 2017. But the rally failed to sustain, and new money never arrived into the market. The lack of buy pressure, however, left Bitcoin extremely vulnerable. The failure to incite FOMO coincided with the coronavirus spiraling out of control and causing a widespread selloff across all markets. The fear over what’s to come caused Bitcoin to collapse to under $3,800. But ever since the cryptocurrency reached these low prices, buy pressure has returned in a big way. $BTC analysis and why I've been so bullish the past month. The halving bull run was interrupted by a world pandemic and financial crisis. Mass panic and capitulation ensued. We now have MORE buying pressure than before. $BTC naturally wants $10,000 back. pic.twitter.com/q5ghwH6nKB — incomesharks (@IncomeSharks) April 3, 2020   On-Balance Volume Shows More Buy Pressure Than When BTC Was Trading at $10K According to the On-Balance Volume indicator, often referred to as the smart money indicator, it is showing a massive surge in buying pressure. There’s been far more buying pressure in Bitcoin ever since the catastrophic drop in mid-May than there was during the early 2020 rally to over $10,000. The On-Balance Volume indicator can tip analysts off as to when volume is increasing ahead of price. There’s a common saying that volume often precedes price, due to “smart money” taking positions before the rest of the herd. Related Reading | Bitcoin Closes Q1 With Historic Darth Maul Candle: Here’s What it Means  When price begins to respond, herd mentality caused the rest of investors to follow. On-Balance Volume on Bitcoin price charts shows that although prices are far lower than they were just a month prior, there’s significantly more interest at these low prices. This is normal market dynamics playing out right before our very eyes. At prices above $10,000, investors saw Bitcoin as too expensive, causing the asset to fall to much more attractive prices. Now that Bitcoin price is here at these lows, investors aren’t passing up the chance to buy cheap BTC. The cryptocurrency is already trading at nearly double that of the recent local bottom at roughly $3,800, and if the buying sustains here, it is very likely that the bottom is in, and those lows are never seen again. Featured image from Shutterstock

Analyst: Moon Mission For Tezos Cryptocurrency Following Hammer Reversal

The cryptocurrency Tezos has only just come back down to Earth after spending early 2020 skyrocketing to new highs, but according to one crypto analyst, a moon mission may be next for the hyped-up altcoin following an inverted hammer reversal candle. Cryptocurrency Refuels After Historic Crash Coronavirus Collapse Few altcoins have had as strong of a start to the year as Tezos. A massive nearly 200% rally took the asset from a dollar and a quarter to as high as nearly $4 before the recent market collapse cut the asset down to size. Like most other cryptocurrencies, Tezos fell by over 50% or more on the XTZUSD trading pair amid the coronavirus crisis. Traditional assets such as gold, the stock market, and more also suffered record-breaking losses. Related Reading | Tezos Cryptocurrency May Rally to New Highs, According to Key Bullish Factors  The collapse took Tezos price back down to a dollar – a 75% decline. But given the asset’s strength prior to the panic-induced selloff, Tezos will likely be quick to rebound. And according to one cryptocurrency analyst, Tezos is likely to do just that on the XTZBTC trading pair, where the asset is ready to go on a moon mission against Bitcoin in the very near future. The powerful move up is expected following an inverted hammer candle – a common reversal candlestick resembling a hammer. $XTZ notice the inverted hammer and it's location. 🌕 Moon mission is loading… pic.twitter.com/E4jVwfMqhm — Pentoshi (@Pentosh1) April 3, 2020   Inverted hammer formations are created when the open, low, and close within a similar proximity, but a long upper wick at least twice the size of the candle body is left behind. The price action shows a defense by bullish investors and traders, and the following candle typically tips off an analyst about what to expect for future price movements – in this case, more bullish momentum. It could signal that buyers are outweighing sellers and the price could soon reverse. But why are investors so bullish on Tezos? Staking New Ground: Tezos To the Moon Thanks To Annualized Earnings From its 2018 bottom to the recent peak, Tezos had grown in value by over 400%, earning it a reputation for providing enormous profits to crypto investors. The surging valuation helped the altcoin enter the top ten cryptocurrencies by market cap, earning it higher visibility with investors and solidifying it as among the safer investments in the space. Although it is the surging prices that are fueling interest itself, the cryptocurrency also offers an annual APY return in more XTZ tokens for those that stake their holdings on the blockchain. Related Reading | Could Crypto Exchange Coinbase Be Pumping Tezos To The Moon? Certain wallets or cryptocurrency exchanges offer staking, and the additional earnings have made Tezos extremely attractive with crypto investors trying to squeeze out any money they can out of two years of a continued bear market. Whatever is causing the interest, its working, and Tezos could be ready to moon once again.

Irony: Bitcoin Relies on the Banks It Was Designed to Dethrone

With an economic collapse upon us, it has revived discussion around the concepts that prompted the creation of Bitcoin. And although the asset could have its finest hour in the face of the coming hyperinflation, ironically, the first-ever cryptocurrency’s existence currently depends on the banks that it was designed to replace. Will this ever change, or is Bitcoin doomed to be forever tied to fiat gateways in some way? Bitcoin Built to Dethrone Banks, But For Now, Heavily Relies On Them Bitcoin is the first-ever cryptocurrency, created by the mysterious Satoshi Nakamoto. It was released during the last economic recession, and its Genesis Block contains references to the controversial bank bailouts taking place during that period of time. Bitcoin was created to be a peer-to-peer form of digital cash – a decentralized cryptocurrency network operating without the need for a central authority. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin  And while that works in theory and concept, in execution, central authorities are very much needed. A central authority or third party may not have any direct control over the Bitcoin protocol, however, in the futuristic digital asset’s current state, many direct connections to central authorities remain, and much of Bitcoin’s success and mere existence hinges on its line to central authorities like banks. But why is it so important that these ties between banks and Bitcoin remain open and flowing? But the Cryptocurrency May Forever Be Shackled to Fiat Gateways Unless a user is transacting in private, through black market deals, classifieds, OTC, or even LocalBitcoins, most people are stuck getting their cryptocurrencies like Bitcoin from some type of cryptocurrency exchange. These cryptocurrency exchanges or other fiat gateways like the Cash App are the only means to acquire Bitcoin for most, and any of these products or services must be directly tied to a banking account with all personal information added for tracking by the IRS and other third parties. Clearly, the original intent behind Bitcoin was not for it to forever rely on fiat gateways for its network to build in value. But for now, it’s a necessary evil that continues to put Bitcoin at severe risk. However, there’s no other alternative. Related Reading | Will Bitcoin Dethrone The Dollar As Global Reserve Currency?  Because buying the leading cryptocurrency by market cap usually requires a bank somewhere along the line as an intermediary – among the biggest issues Bitcoin seeks to solve – at a whim, these banks could suddenly decide to not allow customers to purchase such assets. Then what? Bitcoin still exists and it is indeed unstoppable in terms of the network operating. Even if all fiat gateways suddenly disappeared overnight, the network would still exist in some form. But until it is in wide use, it will remain shackled to the fiat gateways it sought to dethrone so that users can buy and sell the asset back into fiat, as ironic as that may be.

Crypto Titanic: Altcoin Investors Must Prepare to Sink With The Ship

With a black swan event is upon us – an unpredictable event that forever alters the way people think and behave – are crypto and altcoin holders prepared to potentially go down with the ship if the world faces the worst economic recession yet? Crypto Op-Ed: Are Altcoin Investors Mentally Prepared to Go Down With the Ship? There’s no denying, the world is in chaos – more so than ever before. Debt has been soaring for decades, banks and lenders are overextended, corporations are being crippled due to the lack of cash reserves, and nearly every major market is in turmoil over the impact of the coronavirus. Not only is the pandemic rapidly claiming the lives of innocent people across the globe, but it’s also causing devastation to their income, job security, savings, retirement funds, and investments. Few industries are currently safe from the current locked-down environment, and even those that are typically recession-proof are still struggling as the economy tries to stabilize amidst a complete disruption of growth and production. With incomes dwindling, job losses reaching tens of millions in just two weeks, and assets plummeting in value, it has created a liquidity crisis as investors everywhere seek to sell of any liquid asset into cash in preparation for the coming storm. The first assets to go, are always the riskiest. And with investors dumping even gold and other precious metals during the current disaster, things are looking bleak for the high-risk asset class of cryptocurrencies. Related Reading | 4th Largest 1-Month Dow Sell Candle in History Leaves Bitcoin Vulnerable  Rewind to 2017 during the crypto hype bubble. Unemployment was experiencing the lowest level in years, salaries became bloated as a result of a surging economy, and the stock market surged. Money was in abundance, and investors had excess to risk in speculative markets like crypto. Investors flocked to the crypto market after learning about Bitcoin’s meteoric rise from being virtually worthless to $20,000, it was altcoins that they flocked to hoping to strike it rich. Bitcoin has first-mover advantage, high visibility in branding, and a market cap far larger than the rest fo the market combined. It also features unique attributes that give in unique value, such as its decentralized network and limited supply. And while it’s difficult to say Bitcoin has a valid use case, it’s potential and being the first of its kind gives it some additional benefits that may help it survive the coming storm Altcoins, however, are as speculative of an asset as it gets. Outside of the top ten cryptocurrencies by market cap, there’s an endless list of unproven tech with great promise. But promise doesn’t pay the bills, and these projects could be decades away from ever coming to fruition if they do at all. They very well could be among the first assets to get dumped en masse if the economy gets worse – and it is all but guaranteed at this point. People are struggling to make rent, feed their families, and are living paycheck to paycheck. Investing more in altcoins is the furthest thing from people’s minds currently. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin Altcoins also offer very little liquidity, meaning that, as investors seek to cash these assets out into fiat to use for bills and spending, or to move into safer investments or even cash, the lack of liquidity could drive the prices of these assets to as close to zero as it gets. And with these altcoins still down over 90% from an all-time high in many cases, the hope that they’ll ever recoup the losses may be starting to dwindle. With all that’s going against the crypto market currently, and with possibly the worst economic setback in the history of the modern world, altcoin investors need to mentally prepare themselves to go down with the ship, should things start to sink further. Featured image from Shutterstock

Tezos Cryptocurrency May Rally to New Highs, According to Key Bullish Factors

Few cryptocurrency assets have had as strong a showing in early 2020 as Tezos. But just as most assets got caught up in last month’s record-breaking selloff, so did the previously skyrocketing altcoin. However, chart patterns across both USD and BTC pairs are showing signs that the asset is ready to take off once again, and could possibly rally to new highs even despite the bearish market sentiment. Tezos Ascending Triangle on XTZUSD Pair Points to Coming Rally Tezos is one of the cryptocurrency industry’s stand out assets that give the asset class its reputation for making investors filthy rich, and then weeks later cause them to go broke. Crypto investors who bought the cryptocurrency on January 1, 2020, would have earned nearly 200% return on investment if they later sold the top just ahead of the catastrophic, coronavirus-fueled panic selloff in mid-March. Related Reading | Tezos Cryptocurrency Up Over 130% Year to Date, Analyst Warns Not to FOMO  Those who bought in a year earlier at the start of 2019 would have over 400% returns to show for their investment. However, coming off of highs around $4, Tezos rapidly plummeted by over 75%, taking the price of the asset to under $1 on some exchanges. But now, XTZ/USD charts are showing what resembles an ascending triangle formation – a primarily bullish chart pattern that typically breaks upward. When moon?$XTZ pic.twitter.com/30NMjnmSbw — Teddy (@TeddyCleps) April 2, 2020 After each major bottom in Tezos, the cryptocurrency has went on to set a new high. Will the cryptocurrency moon once again? Cryptocurrency To Outperform Bitcoin According to XTZBTC Fractal Bullish price patterns on Tezos can also be found on the Bitcoin trading pair. XTZ/BTC price charts are showing a repeating fractal pattern, where a falling wedge forms during the pullback following a double top pattern. The pattern broke up last time on the Bitcoin pair, causing the asset to rally and set a new local high. With the pattern set to repeat, Tezos could once again surge relative to Bitcoin and outperform the leading cryptocurrency by market cap. I saw the exact same chart now from 4 different people on my timeline so I thought it was the new thing.$XTZ / $BTC pic.twitter.com/ML3xchUu58 — ₿lackbeard (@crypto_blkbeard) April 2, 2020 Tezos has been especially bullish across the cryptocurrency market, due to the asset’s staking feature. Investors who lock up their XTZ tokens on the blockchain will earn themselves an APY for doing so. With the cryptocurrency providing investors returns not only through the staking APY, but also due to the asset regularly going on powerful rallies, the altcoin has gained a reputation in the crypto market for being among the to investments to make in 2020. Related Reading | Could Crypto Exchange Coinbase Be Pumping Tezos To The Moon? And with the asset poised to retake recent highs and potentially set a new peak, it is easy to see why its among one of the most heavily hyped altcoins in the market currently. Featured image from Shutterstock

Surging Demand and Seized Supply Spark Rapid Growth in Tether’s Digital Gold

As fears over the coming economic recession continue to mount, demand for gold continues to surge. And as mining operations have frozen due to the coronavirus outbreak, there’s a recipe for dwindling supply that could have an astronomical impact on the asset’s value in the months ahead. The surging demand and lack of supply, however, has resulted in the rapid growth of digital versions of the precious metal. And we’re not talking about Bitcoin – it’s Tether’s version of digital gold as well as other stablecoin competitors who are taking advantage of the gaping hole in the market that currently needs filling. Coming Recession Sparks Demand For Gold, Coronavirus However Cripples Supply At the start of March, coronavirus concerns reached peak panic, causing a massive selloff of all asset types, including gold, Bitcoin, and the stock market. Records were broken for the steepest collapse in decades across most assets, while newer, speculative assets like Bitcoin and other cryptocurrencies were decimated in the collapse. Gold, however, absorbed the impact better than most assets and has already reclaimed highs prior to the selloff. Related Reading | No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin Gold has been used in trade for thousands of years, has been historically used as a currency, store of wealth, and a flight to safety for capital during a time of crisis. One of the biggest crises the world has ever witnessed is here, and now is the asset’s time to truly shine – no pun intended. The glittering and glistening precious metal may be used in ornate jewelry and to show off success, it’s also used to protect capital from the impact of inflation during economic downturns. Due to the asset’s limited supply, its value remains relatively stable and often increases during recessions. That limited supply, while can have a dramatic effect on increasing the asset’s price, is also causing issues now that mining operations have ceased or slowed due to lockdowns related to the pandemic. It’s caused many banks to struggle to deliver physical bars to investors. To fill the hole left by this supply shock and the growing demand for gold, Tether, and Paxos – two competing stablecoins – have launched digital tokens representing ownership over physical gold. Stablecoin Tether Satisfies Need With Digital Token Representing Physical Bars With investors are struggling to gain access to physical gold, Tether or Paxos version of digital gold isn’t just the next best thing, it’s all-around better than physical gold. The biggest benefit Bitcoin has as the digital gold counterpart over the precious metal itself, is the fact that it only exists digitally and therefore can be easily transferred from owner to owner, or wallet to wallet. Related Reading | Crypto Analyst: Digital Gold Narrative Out The Window Amidst Crisis  However, these actual versions of digital gold represent physical gold bar allocations that can later be redeemed for physical gold bars so long as the investors hold at least 1 gold bar’s worth of the tokens. Digital versions of the precious metal can more easily be broken down into smaller demonizations as well, encouraging more small-time investors to dip their toes into the asset. The demand for this type of asset has exploded during the coronavirus outbreak. Tether launched its XAUt token in January 2020 and has already grown its supply to over 30,000 tokens or over $48 million in market cap. And with the recession not even really getting started yet, and the supply of gold likely not set to increase until after quarantines end, demand for the digital gold Tether tokens will only continue to increase from here. Featured image from Shutterstock

Is Litecoin Leading the Crypto Market Back Toward 2015 Prices?

Litecoin is known for often being among the first altcoins to begin to see growth or decline after a period of sideways trading. Following the recent crash that shocked the crypto market, Litecoin has started to move once again and may be leading the market toward a devastating crash back to prices not traded at since 2015 – long before the epic bull run that put crypto on the map first began. Litecoin Leads the Path Toward Return to 2015 Prices Litecoin often leads the way. Which way that is, depends on the current market structure, sentiment, and a number of other factors. In early 2019, Litecoin led the market toward a recovery, fueled by the asset’s halving. In 2020, once again, Litecoin was among the first altcoins to rebound from lows and go on to set new local highs. Related Reading | Crisis Impact: Most Assets Returned to 2016 Prices While Bitcoin Holds Strong  However, after those highs were tapped, Litecoin and the rest of the cryptocurrency market experienced a bloodbath alongside the stock market, precious metals, and more, as investors cashed out liquid assets into cash to prepare to weather a coming economic storm. Litecoin may now be leading the path for the rest of the crypto market toward prices that haven’t been trading at since prior to the 2017 cryptocurrency bull run and hype bubble. Prior to the crypto bubble, Litecoin traded at prices under $10. The level could be the final target of the coming Litecoin drop, according to one crypto analyst. $LTC leads the crypto market they say..😶 pic.twitter.com/mvTJ1WrVOF — The EW Guy (@TheEWGuy) April 1, 2020 Elliott Wave Theory Points to Deeper Correction Before Incredible Upside According to one crypto analyst’s take on Elliott Wave Theory and how it applies to LTC/USD price charts, the cryptocurrency is currently mid-way through wave B in an ABC corrective pattern. The target for wave B puts Litecoin back under $10, or prices that the asset traded at back in 2015. Litecoin often leads the way for the crypto market, which suggests that Bitcoin and the rest of the altcoin market will be headed back to 2015 prices. After the target is reached, however, cryptocurrencies will begin the C wave of the ABC correction, taking the price of Litecoin to over $3,000 per LTC token. Related Reading | $50 Is Final Target For Ethereum Correction According To Elliott Wave Theory Elliott Wave Theory is based on investors’ emotional impulses that often drive the price action in speculative assets. Few investor classes are as emotional or impulsive as crypto investors, making the practice especially accurate in predicting future price movements. Most other financial assets have fallen back to prices from years ago. Will Elliott Wave Theory holds true and will Litecoin and the rest of the crypto market take a trip down memory lane and return to prices from 2015? Featured image from Shutterstock

Bitcoin Closes Q1 With Historic Darth Maul Candle: Here’s What it Means

Bitcoin price had one of its most volatile months yet, resulting in a massive, $6,000 long “Darth Maul” candle on the three-month price chart. But what does this rare and explosive candlestick pattern typically indicate, and what could this mean for Bitcoin price in the future? First Quarter 2020 in Crypto Closes Out More Volatile Three Months Yet Last night at 8:00 PM Eastern, the monthly candle closed on Bitcoin price charts, and with it came the close of the first quarter of 2020 – a quarter filled with economic turmoil, a pandemic, and much more. The first-ever cryptocurrency ended 2019 with a bang, falling to $6,400 before beginning 2020 with a massive, over 60% rally, taking Bitcoin price to over the crucial psychological barrier at $10,000. Related Reading | Bitcoin Price Action Triggers Devastatingly Accurate Sell Signal  However, the rally failed to incite retail FOMO, and days later, fears over the rapid proliferation of the coronavirus peaked, spilling into markets and causing record-breaking collapses in most major asset classes. Bitcoin and the rest of cryptocurrencies were hit particularly hard, causing the leading cryptocurrency by market cap to plummet to a low of $3,800. The over 60% fall shocked even the longest-term Bitcoin holders and wiped cryptocurrency exchange order books clean for days to follow. In the first three months of 2020, Bitcoin price went from $6,800 to $10,500, back down to $3,800 before closing last night’s monthly above $6,400 – holding onto monthly support by a mere few dollars. Bitcoin Price 3-Month Candle Closes With Darth Maul Lightsaber Stop Run The resulting price action has left a nasty looking candle on three-month Bitcoin price charts, resembling a “Darth Maul” lightsaber from the popular sci-fi series Star Wars. This type of candle features a tight red-bodied candle, with two enormous wicks on either end, forming the two-ended lightsaber the Star Wars character wields. The damage these candles do is almost as sinister as the villain himself, and on smaller timeframes, are a sign that stop losses on either side of the trading range were taken out. Stop runs or stop loss hunting is a common practice in trading and results in candlesticks with the devilish-looking appearance. Oftentimes, these stop runs are designed to clear out stops ahead of the final, decisive move to a new range. Related Reading | How the Dow’s Fractal of Doom Could Take Bitcoin to $1,000 Just a few weeks earlier, a “Darth Maul” candle hit Bitcoin on smaller timeframes, causing 1% spoke to clear out stops above, followed by a 3% drop lower just minutes later, wiping out the stops below before the final move down was made. If the same type of price action was driving the devastating candle on the three-month price chart, its appearance could be a sign that stops on the highest timeframes have now been wiped out, and Bitcoin price could be finally ready for its next major move. The question still remains, however, is that direction up or down? Featured image from Shutterstock

XRP May Explode After Major Buy Signal Triggers on Monthly Price Charts

After months of consecutive decline and downtrend, XRP may be finally ready to stage a full recovery. The third-largest cryptocurrency by market cap has triggered a very important and accurate buy signal on monthly timeframes – the first time the signal has appeared throughout the entirety of the bear market thus far. XRP Monthly Price Chart Triggers TD 9 Buy Signal XRP, the altcoin known commonly as Ripple, has maintained its third-most rank in the cryptocurrency market, even despite the altcoin being among the asset classes’ worst performers two years running. All that negative performance has resulted in months and months of downtrend and price decline. However, the decline caused a specific sequence of candles to form that signal that a reversal could be near, and that the asset is currently a “buy.” Related Reading | Ripple Poised to Triple By Q4 2020 After XRP Forms Classic Bottom  XRP/USD price charts have triggered a TD 9 “buy signal” on the TD Sequential indicator, created by market timing specialist Thomas Demark. Demark has created dozen or so indicators with a similar focus on predicting market timing, an area where the analyst is widely respected and well known. Demark’s TD Sequential indicator has been used across all financial markets and asset classes to accurately predict future price movements. The TD Sequential indicator works across any timeframe, but as is the case with most indicators, the highest timeframes often have the most significant impact on overall trends. Ripple Has Much Lost Ground to Recover in Any Potential Rebound XRP is currently down by over 95% from its all-time high set over two years ago at $3.58. The altcoin recently fell to as low as ten cents at the current bottom set this past March, when Bitcoin and the rest of the crypto market collapsed at the hands of the coronavirus. A monthly buy signal on an especially battered and beaten altcoin asset could suggest that buying now leads to the greatest possible financial opportunity. After over two years of selling, investors who wanted to sell have had plenty of chances to do so, and if the latest shakeout wasn’t enough to break even the strongest of hands, any remaining XRP investors are likely in it for the long haul and firmly believe in the future of the financial technology. Related Reading | Altcoin Market Following Early Bitcoin Path Could Lead to Life-Changing Wealth  Only time will tell if this monthly buy signal is accurate like many other TD 9 signals, and helps pick XRP up and out from the depths of the bear market and back into a sustained recovery. If XRP is able to finally regain some bullish momentum, those that buy now based on this latest signal could be well rewarded.

Ripple Poised to Triple By Q4 2020 After XRP Forms Classic Bottom

XRP, the cryptocurrency asset often referred to as Ripple, has been among the worst-performing crypto assets and altcoins of the last two years. However, according to one crypto analyst who has spotted what they believe is a classical bottom signature on XRP price charts, expects the asset’s woes to soon change and potentially triple in value before the end of the year. XRP’s Recent Panic-Fueled Rollercoaster Ride XRP has gained a negative reputation across the cryptocurrency community. The number three crypto asset by market cap is often accused of being less decentralized that competition cryptocurrencies like Bitcoin and Ethereum, is demonized for its association and relationships with bankers, and has gained notoriety due to Ripple executives selling XRP holdings in order to fund operations. Related Reading | XRP Triggers Major Buy Signal As Crypto Asset Reaches Pivot Point  The constant selling of assets each time XRP price rose at all, was in part responsible for the altcoin’s over two years of a bear market. After a breakout of downtrend resistance, all signs pointed to XRP being ready for liftoff, and the altcoin asset doubled in value during the first two months of the year. However, what momentum the crypto asset had, was destroyed in a catastrophic coronavirus-fueled panic selloff that crushed cryptocurrencies like Bitcoin, Ethereum, and XRP, alongside the stock market, gold, and many other traditional investments. The sell-off caused XRP price to plummet back down, setting a lower bear market low and taking the price of the asset to just over ten cents. Ripple Price to Triple By Q4 2020, If Classic Bottom Holds But as Ripple fell towards ten cents, it swept the lows of the previous reaccumulation cycle, taking place in early 2017, just before the crypto hype train took off and XRP rose to over $3 per token. One crypto analyst claims that this type of behavior is the signature of a “classic bottom” formation, suggesting that the downside for Ripple in the future is limited. $XRP Monthly is about to close. Looking at the SPF/2017 pre-final pump accumulation lows sweep and this capitulation volume, this looks like a classic bottom signature, or what one would expect it to look like. I am fairly sure Ripple is retesting 0.58 cents in 2020 (Q4) pic.twitter.com/ukY3LJfgut — iamBTC.D (@iam516tv) March 31, 2020 The analyst also says that based on the support holding, XRP could skyrocket to $0.58 cents per token, essentially causing Ripple to triple in value by the fourth quarter of 2020. An alternative, contrarian view would consider that price action forming a massive, multi-year descending triangle, which if breaks down would take Ripple back to under a penny per XRP token – prices that the asset traded at long before cryptocurrencies became a household name. Related Reading | XRP Fails To Reclaim Critical Long Term Support, Danger May Lie Ahead  Descending triangles have repeatedly broken down on the price charts of cryptocurrencies in the past, suggesting that more downside for XRP is also a possibility. However, if Ripple does indeed break out from the current lows, the analyst’s target of $0.58 cents is a reasonable near-term target for what will likely be a very explosive recovery once Ripple breaks free from downtrend resistance. Featured image from Shutterstock

Head and Shoulders On Cryptocurrency Market Cap Foretells Retest of Lows

The total cryptocurrency market cap can oftentimes provide clues as to where Bitcoin and altcoins could be headed in the short-term. The latest price action is exhibiting a pattern that looks structurally similar to a head and shoulders, which if valid and confirmed would suggest Bitcoin and the rest of the crypto market will make another retest of lows. Cryptocurrency Market Chart Forms Head and Shoulders Reversal The coronavirus hasn’t just killed thousands, frozen humanity, and devastated the economy, it’s also sent financial markets into a tailspin, including the world of cryptocurrencies like Bitcoin, Ethereum, and the hundreds upon hundreds of altcoins that make up the market. Related Reading | Fool Me Twice: Will Bitcoin Rally on April Fools’ Day Once Again?  As fears over the rapidly spreading pandemic peaked, markets suffered a catastrophic collapse. The Dow Jones Industrial Average saw the worst losses since 1987, and the total cryptocurrency market cap was set back by over $150 billion during the last month alone. The fall in cryptocurrencies wiped out more than half of the total market’s overall value and market capitalization, but the asset class has since recovered over 50 billion in losses and is ranging above the recent lows. However, if an ominous pattern on the total cryptocurrency market cap chart plays out, a retest of the lows is likely in the cards. On the total crypto market cap, a potential head and shoulders pattern can be seen forming on 4H timeframes. Chart Pattern Target Would Signal Retest of Lows Near $130 Billion Head and shoulders are typically reversal patterns found at the top of a trend. This suggests that the recent recovery is over, and the target of the pattern would take the total cryptocurrency market cap back to retest lows around $130 billion. The target of the structure would stop short of setting a new, lower low below $109 billion where the market fell to just weeks prior. Related Reading | Crypto Market Reaches Longest Stretch of Extreme Fear In Over A Year Chart patterns aren’t valid until confirmed in hindsight. However, declining volume as the pattern continues to form are signs that confirmation is probable. According to the pattern, the price of cryptocurrencies should fall leading into today’s monthly close, forming the second half of the right shoulder and taking prices back down to neckline support. If that support gives in, and the total cryptocurrency market falls below the neckline, the pattern is valid and the target comes into play. However, if bulls manage to use the right shoulder to push the price of cryptocurrencies higher, it could lead to a short squeeze that propels the total crypto market cap back to highs not seen since February or January – long before the coronavirus spilled into the market and caused a catastrophic collapse. Featured image from Shutterstock

Neutral Bitcoin Price Action Flips Bullish With Break of This Key Level

After Bitcoin price fell from $10,000 to under $4,000 in one short month, the ultra bearish, panic-induced price action has finally settled into a neutral state. However, if bulls can break above this key level and hold it as support, the price action will flip bullish and likely go on to target $7,800. Neutral Price Action Ready to Flip Bullish With Break Above $6,600 Bearish Bitcoin traders have been having a field day after the leading cryptocurrency by market cap failed to produce a significant and sustainable rally after breaking above $10,000. Not only did the surge in price fail to spark FOMO amongst retail investors, some of the largest Bitcoin holders finally cashed out ahead of a potential recession, and caused a catastrophic and historic selloff. Related Reading | Fool Me Twice: Will Bitcoin Rally on April Fools’ Day Once Again?  In less than one month’s time, Bitcoin price fell from over $10,000 to under $4,000. At the low, the price of the cryptocurrency bounced off $3,800 and quickly grew by over 80% to nearly $7,000 before falling back down again. Since then, the asset has been ranging, causing the price action to turn neutral until a breakout to the up or downside occurs and caused traders to take positions and ride the wave to the next trading range. A break below the previous low would be enough to cause Bitcoin price to turn back to ultra bearish, potentially hinting at lows much below as targets. However, if bulls can reclaim $6,600, it could cause spark a surge of buyers and a push of Bitcoin price to above $7,800. Neutral here Crack monthly vwap at 6630 and I'd target 7.8 though$BTC pic.twitter.com/J7ZFjsvzs0 — CryptoTrooper (@CryptoTrooper_) March 31, 2020 What’s a VWAP and Why Would Breaking It Take Bitcoin Price to $7,800? $6,600 is a particularly critical level for bulls to reclaim, as it’s the monthly VWAP – or volume-weighted average price. The volume-weighted average price is a benchmark traders use to give price action an average across the day that’s based on both price and volume together. Not only does this ensure that traders are taking positions that make sense according to trading volume, but it is a tool said to reduce transaction costs by minimizing market impact. Related Reading | Bitcoin Price Monthly Close Above $8,000 Forms Bullish ‘Hammer’ Reversal  When price passes above or below the VWAP, it’s a signal that the trend behind the price movement is particularly strong, and could result in continuation. This tells traders not only when to take a position but increases the likelihood of a successful trade. Given how effective the tool can be used in understanding the strength of an underlying trend, it’s clear to see why the level is particularly important for Bitcoin price. The VWAP is currently at roughly $6,600. If bulls reclaim that level, it could be a signal that Bitcoin price will stage a strong recovery after a month of devastating price action. Featured image from Shutterstock

How the Dow’s Fractal of Doom Could Take Bitcoin to $1,000

Throughout 2020 thus far, Bitcoin has been showing a tight correlation with major stock indexes like the Dow Jones and the S&P 500. If this continues, and a “fractal of doom” plays out on the Dow Jones, it could spell complete and utter disaster for Bitcoin and the rest of the crypto market as well, potentially causing BTC to drop to nearly $1,000. The Coronavirus and the Coming Recession Cause Massive Panic Sell0ff While the cryptocurrency asset class was once often pointed at as an uncorrelated asset class for traditional equities investors to diversify their portfolio with, throughout the year so far, Bitcoin has shown its closest correlation with the stock market yet. Once the coronavirus was officially dubbed a pandemic by the World Health Organization and the Center for Disease Control and began to spread across the globe, a massive liquidity crisis unfolded as investors scurried to cash out any assets they hold to prepare for the coming storm. The highly contagious and deadly virus has already shut down travel, businesses, schools, and much more, and essentially frozen the economy in place. The coming recession, as a result, has investors fleeing their holdings for safer havens like cash or gold. The stock market took an absolute beating, causing the largest drop since 1987. With Bitcoin and cryptocurrencies showing such correlation, they also suffered a record-breaking drop. And if a potential fractal on the Dow Jones plays out, Bitcoin and the rest of the crypto market could be in serious trouble. The Dow Jones Fractal of Doom Could Take Bitcoin to $1,000 Markets and even economies are cyclical. Just as financial markets cycle through bear and bull, economies cycle through periods of prosperity and recession. According to some of the most iconic market cycle theorists, economies reset every 90 years or so. The last major economic setback was the Great Depression, which started with a massive stock market collapse in 1929, and lasted all throughout the 1930s. It’s now 90 years later, and the Dow Jones is exhibiting the early signs of a pattern that took place back then, triggering the worst economic depression the world has witnessed. Dow monthly: Fractal of Doom. Is the sky falling? pic.twitter.com/6HtWwJ5qTY — Nunya Bizniz (@Pladizow) March 30, 2020 And if this fractal of doom confirms in the Dow, and Bitcoin continues to follow, the first-ever cryptocurrency could be in for a world of hurt. The Dow Jones would be in for a nearly 80% decline from current levels. A similar drop for Bitcoin would take the price of the cryptocurrency back to just over $1,000 – which eerily coincides with the previous bull market’s cycle top from 2014. Related Reading | Historic Recurrence: Will Bitcoin Bottom At Its Previous All-Time High? Many theories point to Bitcoin retracing to that previous top to confirm resistance as support from many years ago. However, such a move would be devastating for crypto investors who already have held through an over two years of a bear market, only to have the asset plummet in value further. But this is all depending on both Bitcoin staying correlated to the Dow, and for this fractal of doom to confirm.

Crypto Market Reaches Longest Stretch of Extreme Fear In Over A Year

Bitcoin and the rest of the crypto market has since staged a strong recovery following the massive, record-breaking crash caused by coronavirus fears spilling into financial markets earlier this month. But despite crypto prices continuing to climb, the Fear and Greed Index shows that sentiment is still in the gutter. In fact, the sentiment measuring index has now reached the longest stretch of extreme fear in the cryptocurrency market since the tool was first launched. Extreme Fear Continues to Crush Markets Amidst Coronavirus Outbreak In early March, as the coronavirus was officially dubbed a pandemic and first began to shut down the global economy, the stock market, precious metals, and cryptocurrencies all suffered an extreme selloff. The stock market saw the largest losses since 1987, silver had its value set back decades, and Bitcoin and other cryptocurrencies all fell by 40% or more. Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit  The entire world fell into a state of panic almost overnight, and the prices of assets everywhere reflected the fearful sentiment. Following the selloff, the cryptocurrency market Fear and Greed Index, fell to lows, indicating that investor sentiment was in extreme fear. Many old adages and quotes reminder investors that when things get scariest, it’s often the time to buy. Baron Rothschild and the Oracle of Omaha himself, Warren Buffett have coined such phrases. It’s clear someone out there was buying the extreme fear in the market – blood in the streets – as Bitcoin price rallied from a low of $3,800 to over $7,000 before a pullback. But the first-ever crypto-asset nearly doubling in price following the recent catastrophic collapse has done very little to ease the minds of crypto investors who are still in a state of panic. Crypto Fear and Greed Index Reaches Longest Stretch of Extreme Sentiment Yet According to the Crypto Fear and Greed Index, not only is the market still in extreme fear, but it’s now spent the longest stretch of time at such peak emotion. Related Reading | Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful  Data shows that although the market reached a level of fear lower than current levels back in August 2019, the fear was short-lived and sentiment bounced right back to greed. The current bout of extreme fear has now lasted nearly three full weeks, and with the coronavirus and coming recession causing the market more fear than ever before, there’s a chance that the extreme fear may linger for the foreseeable future. The fear is even more extreme than the period of time when Bitcoin traded between $3,000 and $4,000 at the end of 2018. During that time, fear hung around longer than what’s taken place this time around, however, fear didn’t get as extreme as it is right now, and the current wave of fear has only truly just begun. Featured image from Shutterstock

Bulls Last Stand: Why Bitcoin’s Trend Depends on The Defense of $5,800

Bitcoin price has been more volatile than ever lately after the asset plummeted from $10,000 to under $4,000 in just over a month’s time. After such a collapse, the leading cryptocurrency by market cap has since bounced and is trading above $6,300 following a successful weekend defense of $5,800 – an important line that according to one crypto analyst says could determine the fate of Bitcoin’s long-term trend. Recapping The Rollercoaster Ride of 2020 So Far Bitcoin price has had a rollercoaster of a year thus far, and more so than the cryptocurrency is typically known for. While the asset class is notorious for its extreme volatility and violent price swings, not even cryptocurrency investors and traders were prepared for the massive price swings 2020 has provided thus far. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin  At the close of 2019, Bitcoin price found support at what the market had then thought was a bottom at $6,400. Starting in early 2020, the first-ever cryptocurrency went on an over 60% rally to well above $10,000. Ethereum and other altcoins during this time also saw explosive rallies of 100% or more in many cases. All signs were pointing toward a new bull run for Bitcoin ahead of the upcoming halving. But then the unthinkable happened. A black swan event arrived via a rapidly spreading pandemic, that caused Bitcoin price to tank to $4,000 in a record-breaking decline. $5,800 is Bulls Last Stand Or Bitcoin Price Could Fall to New Lows The particularly extreme move caused panic across the cryptocurrency market, and many long-term trendlines and growth curves were violated by the price action. However, Bitcoin price was very quick to reclaim $5,800 – a key level that was just well defended over the weekend and ahead of the monthly close. Related Reading | Recent Bitcoin Price Action Isn’t Radical According to Serious Valuation Models  But why is $5,800 so important? According to one crypto analyst, $5,800 is the last stand for bulls, who must defend the level for Bitcoin’s long-term bullish trend to remain intact. Why 5.8k matters $BTC zoom out. I bought some spot back. Bulls have to hold as it was the last HL prior to the move up. Below it invalidated the trend that had formed on the LTF’s and would confirm continuation to the downside. This is the last stand imo pic.twitter.com/DM7uKD7XsF — Pentoshi (@Pentosh1) March 30, 2020 $5,800 was the support level that Bitcoin fell to in February 2018, then again and again throughout the bear market. It also acted as a launchpad when Bitcoin broke above it the last time around in early 2019 and is currently holding once again even after this weekend’s violent selloff. Over the weekend, Bitcoin price fell from $6,700 to as low as $5,800, but already bulls have managed to push the price of the first-ever cryptocurrency back above $6,000 and to $6,300 at the time of this writing. If bulls can continue to defend $5,800, the leading cryptocurrency by market cap will have set a higher low on the highest timeframes. But with the coronavirus still very much out of control, bears could eventually get the upper hand once again. Featured image from Shutterstock

Bear Trap: Will Bitcoin Mimic Gold in Reclaiming Long-Term Trend Line?

Bitcoin and gold have been tracking alongside one another for nearly two years now as the global economy inches closer and closer to total collapse. If the correlation continues, the latest drop in Bitcoin will be nothing more than a bear trap designed to shake out investors before the asset reclaims a long-term trend line and continues its ascent toward new all-time highs. Correlation Continues Between First-Ever Cryptocurrency and Precious Metal The argument over if Bitcoin truly is a safe haven asset like gold and other precious metals continues, as the two assets have shown an uncanny correlation in the past. The correlation has gone on forward first spotted following Bitcoin’s 2017 peak, but the comparative price action really ramped up in early 2019, as a trade war between China and the United States started to brew. Related Reading | Becoming a Safe Haven: A Year of Bitcoin Correlation With Gold  In early 2019, both assets began a new bull run and spent the next few months rallying. Both eventually experienced a pullback in mid-2019, but later began to pick up steam late into the year and into early 2020. At the start of 2020, both assets began to skyrocket, as fears over a possible pandemic began to grow. These fears eventually became reality, and panic spill into financial markets. The result was record-breaking drops in major stock market indexes, gold, and Bitcoin. Some assets, like silver, had over a decade worth of growth wiped out in hours. But now both assets are recovering once again, and are ready to prove themselves as safe-haven assets in the face of the coming economic crisis. Will Bitcoin Continue To Follow Gold With a Bear Trap Shakeout? Along the way up, gold broke down from a long-term trend line. During the recent collapse across all markets, Bitcoin lost its long-term trend line also. Gold’s break below the long-term trend line was a bear trap designed to shake out investors and force them to buy back higher, further driving the price of the asset upward. The same breakdown of a long-term trend line just happened in Bitcoin markets, and the price action and signals on the relative strength index appear to be eerily similar to that of gold when the bear trap happened. The combination of the two assets pacing together accurately for some time, and the fact that both price action and indicators are showing strong resemblance, gives the theory additional credence. Related Reading | Stocks Limit Up, Gold Revisits High, is Bitcoin About To Pump? However, it’s worth noting that the timescales are drastically different between the two assets, so the comparative analysis should be taken with a grain of salt. But given how close the two assets have been correlated, a bear trap in Bitcoin is very possible. Featured image from Shutterstock

Ethereum Buy Signal Hints At Sustained Bitcoin Outperformance

Ethereum kicked off the year, showing stellar performance compared to Bitcoin, leaving the leading crypto asset in its dust. But following over 100% returns, Ethereum’s recent pullback was far more devastating than Bitcoin’s. However, on ETH/BTC charts, Ethereum just triggered a buy signal that suggests the asset will outperform Bitcoin for the foreseeable future. Ethereum’s Long Road to the Bottom and Finding a New Use Case Compared to Bitcoin, Ethereum has barely recovered from the beaten it took following the crypto bubble popping in late 2017 and early 2018. During the year leading up to the collapse, the ICO boom drove demand for Ethereum, taking its price to over $1,400 per ETH token, as crypto investors traded the altcoin in exchange for access to early launch phase crypto projects. Related Reading | Crypto Analyst on Ethereum Downtrend: New Lows and Capitulation Are Coming  At its low, the asset fell to $80, dropping well over 94% in value. During the same timeframe, Bitcoin fell just 84%. At current prices, ETH/USD is still down over 90% from its all-time high, while BTC/USD is trading just 66% below it, showing that the leading cryptocurrency by market cap has strongly outperformed the second-largest crypto by a large margin for the last two years or more. The underperformance has led to an 84% decline in the ETH/BTC trading pair since Ethereum peaked in 2018. At the low, the fall reached a total of 87% before a rebound began. After the ICO boom fizzled out, Ethereum floundered, searching for a use case to prove its value once again. That use came arrived via the rapid growth of the decentralized finance industry, in which Ethereum plays a primary role. ETH/BTC Buy Signal Suggests Altcoin Will Outperform Bitcoin In the Days Ahead Ethereum experience an aggressive rebound, growing 100% in less than two months on the ETH/USD pair before the coronavirus-related panic selloff took the wind out of its sails. However, Ethereum may not be done just yet when it comes to catching up against Bitcoin. The number one altcoin just triggered a TD 9 “buy” signal on the TD Sequential indicator created by market timing expert Thomas Demark. The tool has been accurately used to spot a number of tops and bottoms across a wide variety of assets including cryptocurrencies. More famously, the tool was used to call Bitcoin’s all-time high peak in 2017. Related Reading | Analyst: Ethereum Prepares for Massive 95% Move Against BTC, But Which Direction? Crypto analysts have been pointing to a massive symmetrical triangle on the ETH/BTC trading pair, which could lead to a 90% or more breakout in either direction. With this latest buy signal appearing for Ethereum, the chances have increased that the 90% gain will be against the first-ever cryptocurrency. Featured image from Shutterstock

Ethereum Buy Signal Hints At Sustained Bitcoin Outperformance

Ethereum kicked off the year, showing stellar performance compared to Bitcoin, leaving the leading crypto asset in its dust. But following over 100% returns, Ethereum’s recent pullback was far more devastating than Bitcoin’s. However, on ETH/BTC charts, Ethereum just triggered a buy signal that suggests the asset will outperform Bitcoin for the foreseeable future. Ethereum’s Long Road to the Bottom and Finding a New Use Case Compared to Bitcoin, Ethereum has barely recovered from the beaten it took following the crypto bubble popping in late 2017 and early 2018. During the year leading up to the collapse, the ICO boom drove demand for Ethereum, taking its price to over $1,400 per ETH token, as crypto investors traded the altcoin in exchange for access to early launch phase crypto projects. Related Reading | Crypto Analyst on Ethereum Downtrend: New Lows and Capitulation Are Coming  At its low, the asset fell to $80, dropping well over 94% in value. During the same timeframe, Bitcoin fell just 84%. At current prices, ETH/USD is still down over 90% from its all-time high, while BTC/USD is trading just 66% below it, showing that the leading cryptocurrency by market cap has strongly outperformed the second-largest crypto by a large margin for the last two years or more. The underperformance has led to an 84% decline in the ETH/BTC trading pair since Ethereum peaked in 2018. At the low, the fall reached a total of 87% before a rebound began. After the ICO boom fizzled out, Ethereum floundered, searching for a use case to prove its value once again. That use came arrived via the rapid growth of the decentralized finance industry, in which Ethereum plays a primary role. ETH/BTC Buy Signal Suggests Altcoin Will Outperform Bitcoin In the Days Ahead Ethereum experience an aggressive rebound, growing 100% in less than two months on the ETH/USD pair before the coronavirus-related panic selloff took the wind out of its sails. However, Ethereum may not be done just yet when it comes to catching up against Bitcoin. The number one altcoin just triggered a TD 9 “buy” signal on the TD Sequential indicator created by market timing expert Thomas Demark. The tool has been accurately used to spot a number of tops and bottoms across a wide variety of assets including cryptocurrencies. More famously, the tool was used to call Bitcoin’s all-time high peak in 2017. Related Reading | Analyst: Ethereum Prepares for Massive 95% Move Against BTC, But Which Direction? Crypto analysts have been pointing to a massive symmetrical triangle on the ETH/BTC trading pair, which could lead to a 90% or more breakout in either direction. With this latest buy signal appearing for Ethereum, the chances have increased that the 90% gain will be against the first-ever cryptocurrency. Featured image from Shutterstock

Bitcoin Mining Sell Pressure Waning, Supply Shock To Drive Massive Price Increase

The recent price action in Bitcoin has been particularly devastating to miners who had to turn off their expensive to operate machines after the price of the cryptocurrency fell below the cost of production. However, the rapid capitulation of the weakest miners in the market has in the past always led to sustained, steady, long-term growth in the value of Bitcoin, eventually peaking out at the top of each subsequent bull run. Is this latest round of miner capitulation the final shakeout before new all-time highs are set? Weakest Miners Fold as Bitcoin Price Plummets Below Cost of Production Earlier this month, as fears over the coronavirus and its impact on the economy spilled into markets, it caused a record-breaking collapse in Bitcoin price and the valuations of other cryptocurrencies. Even the stock market and safe-haven assets like gold suffered amidst the destruction. Related Reading | Bitcoin Trades Below Production Cost, Miners Are Better Off Buying  The price of Bitcoin fell so low, miners who typically operate expensive, specialized equipment in order to most efficiently generate BTC, were better off buying the first-ever cryptocurrency on spot exchanges rather than continuing to mine Bitcoin at a value below the cost of production. However, the cost of production is a factor that varies greatly among Bitcoin miners, due to a variety of external influences such as regional energy costs, size of the operation, etc. As with anything in life, only the strongest survive and can weather the greatest of storms. The recent storm across the crypto market was enough to flush out all the remaining weak miners. 2) Today we witnessed one of the largest Difficulty reductions in Bitcoin history. In the past, extreme difficulty reductions signal favorable probabilities for long-term capital deployment. pic.twitter.com/zV1zsqSmPV — Matt D'Souza (@mjdsouza2) March 26, 2020 The rapid increase in miners shutting down operations led to a sharp drop off of hash rate, which at one point was plummeting faster than Bitcoin’s price was. Only the Strong Survive: Well-Prepared Miners Weather the Storm To New All-Time Highs When hash rate plummets, Bitcoin’s mining difficult self-adjusts to bring the cost of production more in line with the actual value the asset is trading at. The cryptocurrency just experienced its second-largest decline in hash rate in the asset’s history, causing a massive, record-breaking adjustment to mining difficulty to compensate. Data shows that in the past, following each of the largest difficulty adjustments in history, on average Bitcoin’s price grew by over 1,000% in the 12 months following, over 160% in the six months following, and over 125% in the following three months. 6) After shutting off, Bitcoin they were receiving is allocated to the more efficient, experienced miners with excellent margins who are positioned to accumulate a larger percentage of the newly minted Bitcoin rather than having to sell it – significantly reducing sell pressure — Matt D'Souza (@mjdsouza2) March 26, 2020 The idea is based on the theory that as the weakest miners disappear from the market, the sell pressure they add to the supply and demand begins to wane, causing a supply shock and eventually, demand begins to take over, causing the asset’s value to spike. The strongest miners remain, holding the Bitcoin they mine to later sell when Bitcoin’s value appreciates. Related Reading | Miner Capitulation: Hash Rate is Dropping Faster Than Bitcoin Price With the weakest miners now shaken out, and big miners still holding strong, is it finally time for demand to outweigh supply once again, and drive Bitcoin prices to a new all-time high? Featured image from Shutterstock

Will Bitcoin Dethrone The Dollar As Global Reserve Currency?

For more than the last 100 years, the US dollar has reigned supreme over the rest of the world as the global reserve currency. But with the economy in shambles, and hyperinflation inbound for the US dollar, will Bitcoin unseat the dollar as the global reserve currency that rules for the next one hundred years? Recapping the History of Global Reserve Currencies Throughout history, every one hundred years or so, the dominant financial superpower changes hands, and so does what the world relies on as the main global reserve currency. Following World War II, the Bretton Woods agreement placed the United States dollar as its central anchor, putting it in favor as the global reserve currency across the world. Related Reading | Will Bitcoin’s True Value Proposition Shine During End of Times Scenario?  Before the dollar, the British pound sterling served as the global currency during the 19th century. Prior to that, it was the French franc, and before it, the Dutch gilder dominated the 18th century due to the Dutch East India company’s monopoly over global trade. But the world has since changed dramatically, and much of the global commerce and trade is conducted digitally. The digital age is causing fiat currencies to show signs of aging, and signals that a new currency is necessary to keep pace with the change in technology. Reserve currency status usually lasts about 100 years. The petrodollar certainly had a good ride last 100 years. At some point people just stop accepting them for goods (like oil, gold, food, houses etc). pic.twitter.com/SLKWPeQ2RH — PlanB (@100trillionUSD) March 26, 2020 Can Bitcoin Unseat the United States Dollar As the World’s Reverse Currency? Bitcoin is a digital-only currency, and the world’s first decentralized cryptocurrency existing and operating without a third-party’s control or intervention, giving it a unique benefit that current national currencies cannot: a separation of money from state. Nations across the globe are all scrambling to create native digital currencies of their own to merge the advantages of cryptocurrencies like Bitcoin with their own dominant fiat currency. China has reportedly completed the creation of a digital currency recently, and the mention of a digital dollar began appearing in a recent economic stimulus bill. In today’s climate of global conflict and the ongoing power struggle between the United States and China, the next global reserve currency would ideally not have any connection with a specific nation. Bitcoin was created during the last economic recession as a means to prevent future issues from recurring and featured many attributes that make it more favorable over any digital currencies issued by countries like China or the US. Being decentralized and outside of any nation’s control males the asset particularly valuable, and smaller countries could favor Bitcoin rather than submitting to a global superpower’s native currency as its reserve. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin  Bitcoin is hard-capped so only 21 million can ever exist, while digital currencies could be created at whim, much like the printing press-driven paper currencies dominating the world today. In the coming age of hyperinflation due to the economy falling into a full death spiral, Bitcoin’s scarcity could help it reach astronomical values. And with additional benefits that could help it thrive in today’s strange new world, such as being contactless and impervious to the coronavirus, it may not be long until we find out if Bitcoin can unseat the dollar and become the global reserve currency.

Becoming a Safe Haven: A Year of Bitcoin Correlation With Gold

The narrative surrounding Bitcoin has often changed, starting as a peer-to-peer form of digital cash, to a store of value, and eventually, to a safe haven asset like gold. The concept that Bitcoin will someday behave similarly as the precious metal is becoming increasingly valid after more than a year of correlation alongside the original safe-haven asset. And with a potential economic collapse currently underway, that theory will be put to the ultimate test. Looking Back of a Year of the Cryptocurrency’s Correlation With Gold Following Bitcoin’s highly publicized meteoric rise into the mainstream, the first-ever cryptocurrency spent all of 2018 locked in a downtrend and bear market, taking the price of the asset from an all-time high of $20,000 to as low as $3,000. In early 2019, however, the asset began to show signs a base was building, and the asset was being accumulated. Around the same time, a similar pattern took shape in gold. Related Reading | No Haven Safe: Silver, Gold and Other Precious Metals Nosedive Alongside Bitcoin All of this was taking place as tensions between the United States and China and an ongoing trade war picked up in severity. As the year went on, Bitcoin continued to follow gold’s growth, tracking alongside the precious metal and solidifying the safe haven narrative. And although in recent weeks as the coronavirus pandemic began to spread and fears over an economic collapse began to turn into reality, gold has begun to slightly outpace Bitcoin is holding value during the recent selloff, the correlation continues. $GOLD and $BTC charts. Very similar price movements this past year. Makes the safe haven argument more valid pic.twitter.com/4yu0lU8ctU — Income Sharks (@IncomeSharks) March 26, 2020 Continued Correlation Validates Bitcoin Safe Haven Narrative The ongoing correlation for over a year as the economy inches closer to collapse validates the idea that Bitcoin can perform as a safe haven asset, much like gold. Gold behaves in such a way, due to the asset’s limited supply. Bitcoin’s supply is even more limited, digitally capped at just 21 million BTC, compared to whatever supply of gold is left in the Earth just waiting to be mined. Bitcoin may even eventually show stronger performance related to its scarcity, however, given how new the asset is to the financial world compared to gold that’s been used in trade and commerce for centuries, it’s still shrouded in mystery and often demonized. Related Reading | Silver, Gold and Bitcoin: Even Safe Haven Assets Cannot Withstand The Coronavirus While gold is used for ornate jewelry and is a status symbol of wealth and success, Bitcoin is still used in dark web transactions, as part of malware infections, and other illicit crime. Because Bitcoin still has much stigma to shed, it could be many more years before the safe haven narrative is finally accepted. But for now, the crypto asset continues to correlate to gold, adding more validity to the theory with each passing day.

Bitcoin Price Action Triggers Devastatingly Accurate Sell Signal

Just two short weeks after Bitcoin price set a record for one of its largest single-day collapses in the asset’s young history, the latest sequence of price action has led to a devastatingly accurate sell signal, that’s preceded some of the asset’s most dangerous drops. Is the first-ever cryptocurrency preparing for more carnage in the days ahead? And why is this sell signal considered so accurate? Bitcoin Price Triggers Sell Signal on TD Sequential Indicator Bitcoin price has been more of a rollercoaster ride than usual as of late. The leading cryptocurrency by market cap started off the new year strong, rallying by over 50% and reclaiming highs above $10,000. But the key level failed to incite a further FOMO-driven retail investor rally, putting the asset on the ropes and staggering. Not even weeks later, the panic over the rapidly spreading coronavirus pandemic spilled into the world of finance, causing a catastrophic selloff of all assets, including Bitcoin, gold, stocks, and more. Related Reading | Bitcoin’s 85% Bounce Shows Crypto Is Fundamentally Alive and Well  The dangerous collapse took Bitcoin from $7,500 to under $4,000. But not even two weeks later, the crypto asset has nearly doubled from its low and is trading just under $7,000 once again. After going from over $10,000 to under $4,000, then back to $7,000, what exactly is next for the first-ever cryptocurrency? According to the TD Sequential indicator, Bitcoin price has triggered a sell signal on daily timeframes and has a high probability of dropping in the days following. TD 9 Sell Signal Triggered at $10K, Will Another Drop Follow? Bitcoin price action has trigged a TD 9 sell signal on the TD Sequential indicator, created by financial market timing expert Thomas Demark. Demark is the Founder and CEO of DeMark Analytics, LLC, and has designed a number of well-known technical analysis indicators, such as the Sequential, Combo, Setup, Setup Trend, Countdown, Range Expansion Index, D-Wave, TD Lines, Differential, and Camouflage. TD Sequential has been used to accurately predict many of Bitcoin’s most famous tops and bottoms, including the December 2017 top, and 2018 bottom. More recently, the TD 9 last triggered a sell signal in Bitcoin price on February 13, 2020. That date is the current high for the year thus far, and in the days following, Bitcoin price collapsed by over 60%. The tool also accurately predicted the end of the parabolic rally in altcoins Tezos, Chainlink, and Ethereum. That same sell signal has just triggered again, suggesting that Bitcoin could be in for yet another catastrophic descent back toward local lows, or perhaps dropping lower to find a new bottom. Related Reading | Historic Recurrence: Will Bitcoin Bottom At Its Previous All-Time High?  Given the tool’s accuracy, Bitcoin’s correlation to the stock market, and today’s announcement of skyrocketing unemployment claims, many external factors are supporting a coming drop.

Bitcoin Price Monthly Close Above $8,000 Forms Bullish ‘Hammer’ Reversal

The current monthly candle on Bitcoin price charts is unlike any other that can be found since the bear market first began, with a massive bottom wick nearly double the length of the candle body itself. Should Bitcoin price close the monthly candle at around or above $8,000, it would form a powerfully bullish reversal candlestick called a “hammer.” A close like this could signal a reversal is near, and that the low is likely in. Bitcoin Price Could Close Monthly As Powerful Reversal Candle Bitcoin price has had an unusual start to the year. After rallying over 50% and going on to retest highs above $10,000, weeks later, the first-ever cryptocurrency plummeted to under $4,000 after a historic, single-day collapse. The resulting price action has left one of the largest monthly red candles on Bitcoin price charts over the last five years. Red candles this large and powerful haven’t been seen since the cryptocurrency last bottomed during the 2014-2015 bear market. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin After the record-breaking collapse to below $4,000, Bitcoin quickly recovered and grew by nearly double, leaving a massive wick behind on the monthly candle. However, resistance at $6,800 and higher are keeping the leading cryptocurrency by market cap from reaching higher levels. If Bitcoin price can regain some momentum, and close the monthly candle this coming Tuesday back around or above $8,000, then the monthly candle will close as a bullish “hammer” reversal candle. If the #Bitcoin monthly candle closes around $8,000 reducing the body candle… bullish hammer will come into play. Be ready. pic.twitter.com/7zJ2EUX7xp — Crypto Rand (@crypto_rand) March 25, 2020 Education: Learn All About the Bullish Hammer Japanese Candlestick Bitcoin price charts, like the price charts of any assets, are often displayed with green and red candles with varying sized bodies and wicks. These are called Japanese candlesticks. Other types of price charts include line charts, Kagi, Heikin Ashi, Renko, and Point & Figure. All offer analysts a different perspective on the price action, but Japanese candlesticks are among the most common for their easy to read signals and price patterns. How these Japanese candlesticks close or how they appear in sequence can oftentimes help analysts and traders predict upcoming price action. Certain candlesticks and patterns can even signal when a reversal is near. Among the type of candlesticks that provide such a signal, is the bullish hammer. The candlestick is represented by a long wick at the bottom and a small or non-existent wick at the top of a small candle body. The candle resembles a hammer with a handle and can close green or red. Related Reading | This 90-Year-Old Japanese Indicator Says Bitcoin Uptrend Is Forming The candlestick depicts sellers coming on strong during the candle open, but the selloff is absorbed by buyers rapidly scooping up the asset at such low prices. This type of price action typically signals a reversal is due, as the price has fallen to attractive enough prices to resume interest once again. However, the candlestick is only valid with confirmation, or with upside following the monthly candle close forming such a pattern. If the pattern does confirm, the bottom is likely in, and Bitcoin price will resume into an uptrend from here. Featured image from Shutterstock

Fool Me Twice: Will Bitcoin Rally on April Fools’ Day Once Again?

April 1st, 2019 kicked off a massive rally in Bitcoin that over the course of the three months that followed, the cryptocurrency rose from $3,000 to $13,000. Will Bitcoin price rally once again this April Fools’ Day, or will the market not fall for the same tricks as the last time around? Fool Me Once: Bitcoin’s 2019 Parabolic Rally Remembered In late December 2018, Bitcoin set a “bottom” at $3,100, then spent the first quarter of 2019 ranging near the lows. Starting on April Fools’ Day in 2019, played bearish traders expecting additional downside as fools, breaking out of the trading range and going on a parabolic rally. Related Reading | Bitcoin Price Just Death Crossed, But Last Time Led To Historic China Pump  At each major resistance point, bearish traders entered short positions that were merely used as rocket fuel for the asset to continue its powerful push upward, forcing shorts to cover their positions as Bitcoin price climbed higher and higher. The start of the rally was the talk of the finance world, with conspiracy theories surrounding a single-actor coordinating a massive buy order across multiple exchanges during the late hours of the night. Other theories included trading bots picking up on fake news that Bitcoin price had rallied on the prank-filled holiday, prompting them to place buy orders in a panic, causing the price to soar as a result. Whatever the cause, Bitcoin’s April Fools’ Day rally last year was one for the history books. April 1st (April Fools Day) kicked off a huge bull run for $BTC last year. Wonder if we see the same again? pic.twitter.com/cYWxqLZcxE — Income Sharks (@IncomeSharks) March 25, 2020 Fool Me Twice: Will The Cryptocurrency Rally Once Again on April Fools Day? With April Fools’ Day coming just around the corner, is this a situation where Bitcoin will fool the market once again by feigning weakness, then suddenly going on a massive rally through every resistance level on the price chart? Things are clearly different this time around, and while the holiday is a great opportunity to play light-hearted pranks on friends and family members, markets are no laughing matter right now. Related Reading | Seasonality in Bitcoin: Will Spring Bring a Return of Growth to Cryptocurrency? Bitcoin recently experienced a historic, record-breaking drop alongside stocks, gold, and nearly every other asset due to the economy and investors bracing for the long term impact that the coronavirus and subsequent shutdowns will have on the world. While explosive rallies are highly-volatile, first-ever cryptocurrency’s forte, a sudden influx of substantial capital into any asset aside from cold, hard cash isn’t very likely in the current economic environment. However, history often repeats, and markets are cyclical, so there’s always a chance that Bitcoin makes a fool out of anyone who isn’t buying at current prices, and going off on yet another tear and parabolic rally ahead of the halving. Featured image from Shutterstock

Crypto Analyst on Ethereum Downtrend: New Lows and Capitulation Are Coming

Ethereum kicked off 2020 with an explosive rally following the rapid growth and expansion of the decentralized finance sector, which nearly doubled the value of the asset in just a couple of month’s time. But a failure to set a higher high and a fall to new lows puts Ethereum back into a downtrend that one analyst says is going to lead to even deeper new lows and possible final capitulation before the altcoin rises once again. ETH/USD Downtrend Continues, Capitulation and New Lows Coming During the 2017 crypto hype bubble, it wasn’t just Bitcoin soaking up all of the limelight. Ethereum was also experiencing extreme growth in value on the heels of the initial coin offering boom. Investors were buying up Ether feverishly and exchanging it for access to early launch phase cryptocurrencies built as ERC-20 tokens launched on Ethereum’s protocol. Related Reading | $50 Is Final Target For Ethereum Correction According To Elliott Wave Theory The asset eventually reached an all-time high for over $1,400. Since then, however, the asset is down over 90% from its all-time high, and after a glimmer of hope at the start of the year that a higher low was being put in – a sign an uptrend is beginning – it only led to yet another lower high, and a new, lower low followed. Setting a continued sequence of lower highs and lower lows is the definition of a downtrend, and few assets fit this definition as well as Ethereum against the dollar. Until Ethereum breaks back above $150 and holds it as support, one crypto analyst sees very little reason to expect higher ETH prices in the days to come. $ETH The USD pair looks even worse.ETH dropped by 90%+ and is now ranging putting in lower highs and lower lows.I like being bullish as much as the next guy but as long as ETHUSD is trading & closing below $150 I see little reason to expect higher prices. pic.twitter.com/MANaB9O2jn — DonAlt (@CryptoDonAlt) March 25, 2020 Ethereum Must Reclaim This Line Against Bitcoin To Be Bullish While Ethereum is clearly locked in a downtrend against the dollar, it isn’t fairing so well against Bitcoin, either. The leading altcoin across the market has lost an important support line against the number one cryptocurrency, and until it can reclaim that level, the same crypto analyst as above says to expect new lows and possible “capitulation” in Ethereum investors on the ETH/BTC trading pair. Because Ethereum had so strongly performed against Bitcoin at the start of 2020, the crypto market was convinced a new alt season was starting – a period of time where altcoins like Ethereum outperform the first-ever cryptocurrency. Related Reading | Analyst: Ethereum Prepares for Massive 95% Move Against BTC, But Which Direction?  And with altcoins so oversold, and Ethereum often leading altcoin rallies against Bitcoin, all the signs had been pointing to an incoming alt season. But the selloff that caused the crypto market to collapse earlier this month hit altcoins like Ethereum and others far harder than Bitcoin was hit, causing the asset’s trading pairs to heavily favor BTC. Until Ethereum can reclaim that line, Bitcoin is bound to outperform the second-largest cryptocurrency by market cap for the foreseeable future. Featured image from Shutterstock

Bitcoin Price Just Death Crossed, But Last Time Led To Historic China Pump

Bitcoin price just formed a death cross of the 50-day and 200-day moving average, a sign that typically signals to investors that the asset in question is in an unhealthy state and could see further downside. However, Bitcoin is anything but typical, and the last time this event occurred, the leading cryptocurrency by market cap broke records for the third-largest single-day pump on record. What’s happens this time around? Bitcoin Price Forms Death Cross, Is Another Record-Breaking Pump Incoming? The latest price action has caused Bitcoin price to drop so deep in value, that the first-ever cryptocurrency has formed yet another death cross – the third of the asset’s current bear market. A death cross occurs when a short-term moving average, in this case, the 50-day moving average, crosses a long-term moving average like the 200-day moving average. Related Reading | Seasonality in Bitcoin: Will Spring Bring a Return of Growth to Cryptocurrency?  This signals to investors that an asset’s bullish trend has begun to wane and could see an extended downtrend in the future. It’s also a sign that the asset’s long-term health is in jeopardy, triggering investors to sell. But in Bitcoin and cryptocurrencies, markets and investors don’t always behave as they normally do, and the last time the death cross formed was in the days leading up to the historic “China pump” rally that took Bitcoin price from $7,200 to $10,500 in less than 48 hours. The rally broke records for setting the third-largest single-day gain in the asset’s short, decade long history. Not bad for an event that is supposed to signal death for an asset. Prior to the historic “Xi pump,” Bitcoin price formed another death cross in late March 2018, then rose on Easter Sunday from “death,” and went on a powerful rally. None of these powerful rallies have sustained, giving the death cross credence as an ominous signal that investors clearly pay close attention to. Golden Criss-Cross Make You Wanna… Pump, Pump It’s important to note that these moving averages are closely tightening and converging more often than normal. In late May 2019, Bitcoin formed a golden cross. After the “China pump” death cross, Bitcoin price formed yet another golden cross as the asset was breaking down from $10,000 in late February, just ahead of the panic-selloff that crippled markets two weeks ago. Now, another death cross has formed, but with the moving averages so tight, even only a small rally would already put another golden cross on the table. Related Reading | Stocks Limit Up, Gold Revisits High, is Bitcoin About To Pump?  And when moving averages converge like this, it could be a signal that a long-term trend change is underway, and that these moving average may begin to turn into support that carries Bitcoin to its next all-time high Featured image from Shutterstock

Stocks Limit Up, Gold Revisits High, is Bitcoin About To Pump?

Over the last month, as the coronavirus continues to have a devastating impact on the economy and markets, stocks, gold, Bitcoin, and other cryptocurrencies all saw record-breaking collapses. However, today, multiple stock indexes limited up, and the safe-haven asset gold has reclaimed previous highs. Is Bitcoin the next asset to experience a massive pump? Stock Market Futures Limit Up After Open, Gold Reclaims Previous Highs Following record-breaking losses due to a global pandemic and resulting panic-induced selloff, assets are finally showing signs to a recovery. Earlier today, when the stock market first opened, major US stock index futures like the S&P 500 and Dow hit their limit up maximum. The powerful surge is due to the government releasing more information about economic stimulus packages, and the spread of the virus starting to lose some pace. US stocks limit up. Gold back to the highs. That escalated quickly. — Alex Krüger (@krugermacro) March 24, 2020 Alongside the stock market, gold has been climbing once again, reclaiming the highs it was trading at before the historic collapse. While the stimulus packages are positive for saving the economy for further danger, essentially printing money causes massive inflation, which gold is the most common hedge against due to the asset’s relative scarcity. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin  Bitcoin is often called digital gold due to the asset having a digital scarcity and other important attributes that are similar to the precious metal. Bitcoin was designed to be deflationary, and only 21 million BTC can ever exist. As more and more fiat currency is flooded into the market, it lowers the asset’s value. The falling value of fiat, in turn, can cause Bitcoin prices to rise. And with stocks limiting up, gold reclaiming previous levels, could Bitcoin soon surge to back above $10,000? Canceled By Coronavirus: Will Bitcoin Surge Ahead of the Halving? It’s certainly possible, and with the asset’s halving in less than two months and the supply expected to diminish, the cryptocurrency’s value could skyrocket. Of course, there’s no telling yet the damage that a black swan event like the coronavirus will ultimately do to the economy, and with Bitcoin being a high-risk, speculative asset, its value could very well go to zero during such chaos. Bitcoin also has already nearly doubled in value since recent lows, suggesting that the asset’s recovery pump may have already happened. Related Reading | Crypto Analyst: Digital Gold Narrative Out The Window Amidst Crisis  These recent surges, however, despite showing signs of recovery, may simply be bearish retests confirming previous support as resistance before the next leg down. The days ahead will be especially telling in understanding if the market is ready to fully recover, or if this is just a calm before the real storm ahead. Featured image from Shutterstock