Here’s what on-chain data is saying about Cardano’s 12% rally

Cardano (ADA) has been on a hot streak as of late, incurring intense upwards momentum that has allowed it to garner a trend independent of the aggregated crypto market.

The token incurred some parabolic momentum today that allowed it to post a whopping 12 percent surge.

This move comes as Bitcoin continues consolidating within the lower-$9,000 region and as the highly anticipated Shelly network upgrade begins rolling out.

On-chain data seems to indicate that this latest upswing may simply mark the early stages of the cryptocurrency’s next intense uptrend, as one indicator shows that there is little resistance lying between its current price of $0.09 and $0.11.

Cardano rallies 12% as Shelly network upgrade rolls out

Today’s uptrend wasn’t entirely unexpected, as it has closely coincided with the Shelly network upgrade – which is anticipated to increase ADA’s scalability and further decentralize the network.

The process will take some time to complete but will be fully implicated within the next three weeks, at which point the network will undergo a hard fork.

Investors are taking notice of this news, with the price of Cardano surging over 12 percent today to its current price of $0.093.

This movement has come about independent of the aggregated crypto market and appears to be directly linked to the release of Shelly.

ADA has now raced up to fresh yearly highs and is currently navigating through a resistance level that has held strong since June of 2019.

Despite this, Cardano remains well below its early-2018 highs of over $1.00, as it has not been able to catch the same momentum that tokens like Chainlink and Tezos have seen in recent years.

On-chain data suggest further upside could be imminent 

It appears that the cryptocurrency’s strong uptrend may just be getting started.

According to data from blockchain visualization tool IntoTheBlock’s In/Out of the Money Around Price (IOMAP) indicator, Cardano doesn’t face any significant resistance until $0.11.

Cardano ADA
Data via IntoTheBlock

This means that the token could continue climbing higher before sellers step up and halt its uptrend.

Because this price action is news-driven, the success of the Shelly rollout will also be incredibly influential on the crypto’s near-term price trend.

If there are any bumps in the road, ADA investors may respond adversely and spark a sharp selloff.

It is also a strong possibility that Cardano’s past correlation with the aggregated market will return if Bitcoin makes any notable movement.

The post Here’s what on-chain data is saying about Cardano’s 12% rally appeared first on CryptoSlate.

Strategist: Next Wave of Bitcoin Investors Likely to Come from Robinhood

As Bitcoin continues trading sideways within a trading range between $9,000 and $10,000, investors are busy at work speculating as to what could help fuel a further price rise for the benchmark digital asset.

Now, one strategist is noting that the crypto could soon see a massive influx of new capital from retail traders – and particularly those trading on Robinhood.

There have been countless examples of an army of return-hungry retail investors on the popular investment platform who have pumped the stock prices of many small companies – even some that have gone bankrupt.

One strategist is now noting that this retail hoard may soon grow bored with equities and direct their attention to Bitcoin – which is offered on the platform.

He contends that they could soon pile into Bitcoin positions.

Robinhood Traders Gain Increasing Control Over the Markets

Armed with smartphones and relatively small amounts of capital, a collective group of retail investors has been wielding massive influence over the equities market.

Market spectators have been closely watching the dynamics amongst these investors, who have notoriously been behind some bizarre market movements, including the massive parabolic rally seen by Hertz’s stock shortly after it went bankrupt.

To many crypto veterans, this market dynamic is strikingly similar to that seen by altcoins in late-2017, when profits from Bitcoin’s meteoric rise cycled into smaller digital assets, allowing some investors to clock massive profits.

While speaking to Bloomberg about this trend seen amongst Robinhood investors, Benn Eifert – a managing partner at QVR Advisors – explained that this new dynamic stems from social media.

“It’s a social media-like dynamic… Someone points out a stock that’s moving and posts some charts, an influencer says, ‘Ok we’re buying it, buy the calls’ and then many people pile in.”

Strategist: Bitcoin Likely to See Influx of Fresh Capital

Matt Maley, the chief market strategist at Miller Tabak + Co., believes that these retail traders will soon target the crypto markets through the popular app, which offers access to Bitcoin and a few other tokens.

“They’re playing in another sandbox right now, but they’re keeping their eyes on all the other sandboxes because they know that something like Bitcoin can make them a big profit very quickly,” he explained.

Maley further added that this trend could kick off if the benchmark cryptocurrency sets a fresh yearly high.

“Interest in [Bitcoin] is going to pick right back up and all those momentum players are going to say, ‘I’m in.’”

Featured image from Shutterstock.

Bitcoin is Showing “Signs of Exhaustion” as Analysts Eye a Movement to $8,000

Bitcoin is flashing some tempered signs of strength right now as it attempts to push up towards $9,300.

This comes after an extended period of trading at $9,100 and seems to mark an extension of the momentum that the crypto first incurred when it bounced from its recent lows of $8,900 last week.

This momentum – although positive on a short time frame – is not emblematic of any sort of significant shift in the benchmark cryptocurrency’s underlying trend.

One prominent analyst is now noting that he believes there are several factors that show Bitcoin is “exhausted” from a mid-term standpoint, signaling that further downside could be imminent in the days and weeks ahead.

He explains that this could lead the crypto as low as $8,090 in the near-term, with this being a major support region that could allow it to climb significantly higher.

Bitcoin Pushes Towards $9,300 as Buyers Generate Some Momentum 

At the time of writing, Bitcoin is trading up just under 2% at its current price of $9,290. The crypto has been slowly climbing higher throughout the day, but now appears to be finding some resistance.

This short-term uptrend comes just after it posted its monthly candle for June, with this monthly close pointing to significant indecisiveness amongst both its buyers and sellers.

If bulls continue pushing the crypto higher, the next crucial resistance area to closely observe sits around $9,700 and extends through $10,000. BTC has been rejected within the region on countless occasions over the past couple of months.

Unless there is some fundamental shift that causes a massive influx of buying pressure, it remains unclear as to what could catalyze a movement past this level.

Nik Patel – a popular crypto trader – explained in a blog post that one a short time frame the crypto is showing signs of weakness, particularly due to its recent rejection at $9,800.

“Turning to the daily, the lack of follow-through after the push up into short-term trendline resistance from earlier in the month was quite telling, with price falling off in subsequent days, albeit on declining volume,” he noted, referencing last week’s pump to highs of $9,800.

Bitcoin

Image Courtesy of Nik Patel. Chart via TradingView.

BTC Likely to See $8,000 in Near-Term

As for where this weakness could lead the cryptocurrency in the coming few weeks and months, it may slide towards $8,000 before finding any robust support.

Patel also mused this possibility, explaining that a defense of this level would lead him to flip long on Bitcoin.

“I would absolutely not be surprised to see a breakdown here, despite the modest exhaustion signs, and I have marked out a possible trajectory into the $8k area that would sweep the May low and range support, as well as the 200dMA,” he said.

Featured image from Shutterstock.

Charts from TradingView.

For the first time since 2019, Tezos is at risk of breaking below its 200-day EMA

Tezos, like most other cryptocurrencies, has been caught within the throes of an extended bout of sideways trading as it hovers within the mid-$2.00 region.

The token’s intense upwards momentum seen throughout the past few months has stalled in recent times, and it is now hovering just above what appears to be a crucial horizontal support level at $2.30.

This coincides closely with its 200-day moving average, which is now at risk of being broken below for the first time since late-2019.

It is important to note that Tezos remains fundamentally strong despite it flashing some signs of subtle weakness. This strength can be seen while looking towards the total number of Tezos delegators helping to run the network.

Tezos at risk of breaking 200-day EMA as momentum stalls

At the time of writing, Tezos is trading up just under 2% at its current price of $2.43. This is around the level at which the cryptocurrency has been trading for the past several days.

The token has seen some immensely bullish price action throughout late-2019 and 2020, with its lucrative staking rewards being partially behind the influx of new investors.

This momentum, however, has stalled in recent weeks as Bitcoin and the aggregated cryptocurrency market remain caught within a multi-week bout of sideways trading.

XTZ is currently trading just a hair above its crucial support at $2.30 that has been ardently defended by bulls over the past week.

This level also coincides with its 200-day EMA – which is a crucial support level that it has been trading above throughout all of 2020.

Tezos now appears to be at risk of declining beneath this level. Josh Olszewicz – a respected analyst – noted that this would mark the first break below this level seen since November of 2019.

“1D XTZ – looks [ready] to break below the 200-day EMA for the first time since Nov 2019.”

Tezos
Image Courtesy of Josh Olszewicz

XTZ remains fundamentally strong despite technical weakness 

Although it could be on the cusp of seeing a massive decline, it is important to note that Tezos remains fundamentally robust.

As reported in a recent issue of Our Network from Spencer Noon, the number of XTZ delegators has continued climbing higher in recent times – a positive sign from a fundamental perspective.

“The total number of new Tezos delegators continued to grow and reached its highest growth ever (+7.5k) in May and is set to keep this pace in June. Over its short 2 years of existence, Tezos went through two growth epochs already and is in the middle of its third.”

Image Courtesy of Our Network (Data via BlockWatch)

A rising delegator count will likely help incubate growth in both Tezos’ development activity and its investor base, which could help sustain its uptrend in the months ahead.

The post For the first time since 2019, Tezos is at risk of breaking below its 200-day EMA appeared first on CryptoSlate.

The Grayscale Bitcoin Trust May Be Signaling BTC has Formed a Long-Term Bottom

Bitcoin has been consolidating between $9,000 and $10,000 for the past several days and weeks, struggling to garner any clear trend The crypto has expressed some overt weakness in recent times due to its propensity to trade near the lower boundary of this range Buyers have been ardently defending against a drop below $9,000 One trend seen while looking towards the publicly traded Grayscale Bitcoin Trust seems to indicate that the cryptocurrency could be forming a long-term bottom that will be followed by an uptrend Analysts are conflicted as to whether or not Bitcoin’s extended bout of sideways trading means that it is forming a long-term top, as the cryptocurrency has been hovering within the $9,000 region for well over a month. It is important to note that the benchmark crypto tends to form tops in sharp movements, rather than through long, drawn-out bouts of range-bound trading. One analyst does believe that this suggests that Bitcoin is not currently forming a top. A trend seen while looking towards the Grayscale Bitcoin Trust’s premium seems to corroborate this notion, with its plummeting premium historically being a sign of the market bottoming. Analyst: History Shows Bitcoin is Not Currently Forming a Top Pattern At the time of writing, Bitcoin is trading up just over 1% at its current price of $9,240. This is around where it has been trading over the past day. In the time since the massive volatility was seen last week – incurred when BTC pushed to $9,800 before facing a swift rejection – it has been hovering in the lower-$9,000 region. Despite its prolonged bout of sideways trading and frequent rejections around $10,000 both indicating that BTC has formed a top, one analyst doesn’t believe that this is the case. He notes that in the past, all of the benchmark cryptocurrency’s macro tops “usually happen fast” and are not formed over multi-week periods. “Something’s off, this is taking too long. If this is the top, then it might be the most drawn out top in BTC history. BTC tops usually happen fast, blow-off top style or a roll-over that accelerates quickly,” he explained. Image courtesy of Byzantine General. Chart via TradingView. What the Grayscale BTC Trust’s Premium Might Say About the Crypto There’s another factor that signals Bitcoin is not forming a top. The same analyst also pointed to the GBTC premium, explaining that low premiums tend to correlate with market bottoms, and vice versa. Because the premium has been diving as of late, it is a possibility that the cryptocurrency could be positioned to see further upside in the coming days and weeks. “Premium is always higher when market goes parabolic, premium is low when market bottoms out,” he said. Image courtesy of Byzantine General. Chart via TradingView. Featured image from Shutterstock. Charts from TradingView.

Ethereum Entering “New Bull Phase” as Technical Structure Shapes Up

Ethereum is currently on the cusp of breaking back into its long-established trading range between $230 and $250.

A recent influx of selling pressure experienced by the cryptocurrency forced its price to break below the lower boundary of this trading range for an extended period of time, with ETH even testing its crucial support at $220 on a couple of occasions.

This price action has represented an underperformance of Bitcoin – as the benchmark cryptocurrency only broke below its established trading range for an incredibly short period of time.

One analyst is now noting that he believes Ethereum is on the cusp of entering a new bull phase, with its macro price structure beginning to show signs of strength.

He supports this notion by pointing to the fact that the past couple of months has been one of the few times when the crypto has been able to sustain above $200 for over a month.

This “new bull phase” could also be fueled by a mounting narrative regarding the cryptocurrency’s underlying strength.

Ethereum’s Technical Outlook Strong Despite Range-Bound Trading

At the time of writing, Ethereum is trading up just under 2% at its current price of $229. The crypto has been trading around this price region for the past several days and weeks, struggling to garner any clear momentum in either direction.

It does appear that bulls are attempting to push ETH back into its long-held trading range, as it has been stuck beneath this level for an extended period of time.

If buyers surmount the resistance it appears to be facing around $230, it could be well-positioned to push up towards its range highs at $250.

One analyst recently explained why he feels the crypto is entering a fresh bull phase, explaining that its ability to hold above $200 for a multi-month period bodes well for its high time frame outlook.

“ETH HTF Update: Previously every time PA broke above $200 we saw a very quick and very fast dump back below $200 within the first monthly period. This time looks different… Current candle structure is looking great and I think we could really be heading into a new bull phase,” he explained.

Ethereum

Image courtesy of Cactus. Chart via TradingView.

Bullish ETH Narrative Blossoms with DeFi Sector’s Growth

The growth of the Ethereum-based DeFi sector has fueled a new wave of bullish Ethereum narratives, with many speculating that the money and users that DeFi is attracting will ultimately boost the cryptocurrency’s price.

Ryan Adams, the founder of Mythos Capital, spoke about this in a recent tweet, explaining that the “DeFi boom = ETH moon” narrative is convincing.

“I’m a fundamentals investor, I don’t dabble much with narrative investing. But if I was I’d put money on this… DeFi boom = ETH moon. Nothing’s certain. But linking the DeFi boom to ETH price appreciation is one of the most obvious narrative plays I’ve seen in crypto,” he explained.

Featured image from Shutterstock.

Charts from TradingView.

Ethereum Bulls Defend Crucial Support, But Outlook Remains Gloomy

Despite navigating down towards its crucial support at $220, Ethereum’s buyers were able to defend against a break below this level The cryptocurrency now appears to be well-positioned to maintain above this level in the near-term, as buyers are currently ardently defending another crucial support level That being said, on its daily chart the cryptocurrency does appear to be flashing some signs of overt weakness One group of analysts recently noted that the recent break below $228 damaged ETH’s technical structure They say that its continued reaction to this level is critical for determining what comes next Ethereum visited its crucial high time frame support at $220 earlier this week, with the dip to these lows proving to be fleeting. Buyers were able to rapidly slow the crypto’s descent once it reached this level and have helped push it higher in the time since. It is important to note that the rebound from these lows has also allowed ETH to recapture $228, another crucial level that analysts have been closely watching. The crypto has posted strong reactions to this level on multiple occasions in the past, signaling that a continued defense of it will be imperative for buyers to catalyze any momentum. Ethereum Defends Crucial Support Following Bout of Intense Weakness  At the time of writing, Ethereum is trading up over 1% at its current price of $228.75. This marks a notable rise from its recent lows of $220 that were set late last week, and also marks a slight outperformance of Bitcoin. This level has proven to be important on multiple occasions. While ETH traded within its range between $230 and $250, each dip below the lower boundary was halted when it reached this level. In order for bulls to recapture this trading range and propel Ethereum higher, a continued defense of this level is vital. One cryptocurrency analyst spoke about this in a recent tweet, explaining that the region between $226 and $228 has been established as a heavy support level over the past month. “Ethereum daily chart – Trying to hold key short term support at previous S/R flip,” he said while pointing to the below chart. Image courtesy of Big Cheds. Chart via TradingView. ETH’s Macro Market Structure Remains Firmly Bearish Although buyers have been able to recapture this key resistance, the crypto’s macro outlook remains gloomy. In a recent blog post, two respected technical analysts shared their thoughts on the cryptocurrency, explaining that they believe this weakness would be confirmed and morph into a downtrend if $223 is broken. “So, shorter-term market structure is bearish, but weekly support is intact… A compelling bearish case can be made if $223 fails. This would be good evidence of market structure continuation and the objective would the other boundary of that same weekly cluster i.e. $212,” they stated/ Featured image from Shutterstock. Charts from TradingView

Bitcoin Continues Closing Below a Crucial Level, Boosting Bears

Bitcoin has remained caught firmly within its long-held consolidation phase, with both its buyers and sellers being unable to catalyze any sharp momentum in either direction It is important to note that unlike weeks past, BTC is now consolidating just above its crucial support level at $9,000 This seems to be a sign of overt weakness, and could hurt buyers should the crypto begin inching lower Analysts are now noting that Bitcoin has been consecutively closing beneath a crucial resistance level, opening the gates for a move into the $7,000 region Bitcoin and the aggregated cryptocurrency market have been struggling to garner any clear direction as the multi-week consolidation trend persists. This trading range has been tightening as of late, as BTC previously saw much greater volatility between $9,000 and $10,000, whereas it is now trading between $9,000 and $9,200. One analyst is noting that the benchmark digital asset remains in bear territory until $9,700 is surmounted. This level has proven to be resistance on multiple occasions. Another analyst is noting that a break above this level in the near-term remains unlikely, as the crypto is currently trading beneath a crucial support level. He offers a downside target within the upper-$7,000 region. Bitcoin’s Trading Range Narrows as Price Hovers Around $9,100  At the time of writing, Bitcoin is trading up marginally at its current price of $9,150. This is around the price level at which it has been trading for the past several days and weeks. Last week, BTC did incur some volatility when it rallied to highs of $9,800 before facing a grim rejection that then sent it down to lows of $8,900. Buyers stepped up when BTC broke into the $8,000 region and helped boost it higher. Although Bitcoin’s near-term outlook remains somewhat foggy, it does appear that the crypto could be positioned to decline further due to its inability to break above its $9,225 resistance. One analyst offered a chart showing a potential downside target within the upper-$7,000 region. “Another day, another daily close below previous support now resistance.” Image Courtesy of Teddy. Chart via TradingView. Here’s The Level Bulls Need to Shatter to Spark an Uptrend As for where Bitcoin needs to go for it to end this consolidation phase and gain a clear uptrend, one respected trader believes the $9,700 region is crucial. Josh Rager spoke about this in a recent tweet, explaining that BTC first needs to flip $9,285 into support, and then it may be able to test this critical resistance level. “BTC: Buyers step in yet again, last two times we’ve seen this, Bitcoin pushed up over 4% and 2.4%. Watching the S/R at $9285 to get tagged. Break and hold there on 4 hr and we go higher though trend is still down until price closes above $9700s,” he explained. Image Courtesy of Josh Rager. Chart via TradingView. Featured image from Shutterstock. Charts from TradingView.

Bitcoin Flirts with Posting a Bull Cross as Crucial Resistance Nears

Bitcoin’s recent price action has done little to offer investors with insight into the cryptocurrency’s current trend, as it has been stuck between $9,000 and $10,000 for an extended period.

There are a few crucial price regions within this trading range that could hold massive sway over the cryptocurrency’s near-term trend, and one analyst believes that the first level to watch exists just above BTC’s current price.

He notes that a break above $9,260 could be all that is needed to boost the benchmark digital asset up towards $9,500. He does contend that the trend favors sellers as long as BTC is below $9,700.

It is important to note that BTC is in the process of forming a coveted “bull cross” between its 8-day and 34-day EMAs. This could provide it with some momentum in the days and weeks ahead.

Bitcoin Pushes Past $9,200 as Buyers Catalyze Some Slight Momentum

At the time of writing, Bitcoin is trading up over 1% at its current price of $9,240. This marks a notable climb from daily lows of $9,100, and it does appear that buyers are trying to generate some upwards momentum.

The crypto is now pushing up against some resistance. One analyst is noting that $9,260 is a key short-term level to watch; as a firm break above it could catalyze significant upside.

The analyst also contends that the crypto remains in bear territory as long as it trades below $9,700.

“BTC: If price can close above $9260 here I think it pushes as high as $9500s. And then back down at least for short term. Wouldn’t complain if Bitcoin just shot straight up here, but the trend is still down until over $9700s,” he said.

Bitcoin

Image Courtesy of Josh Rager. Chart via TradingView.

If it does navigate back into the upper-$9,000 region, another rejection here will just further elucidate the weakness that has plagued buyers over the past several weeks, potentially causing it to see even further downside.

BTC is About to Form a Bull Cross

One factor that could help boost Bitcoin higher in the coming hours is the potential formation of a coveted bull cross between its 8-day and 34-day moving averages.

Depending on which EMAs are crossing, these technical patterns vary in their significance. Bull crosses between these moving averages are fairly common, as the last one occurred on June 22nd.

Another respected pseudonymous trader spoke about this in a tweet, saying:

“Bitcoin: 4 hour update – After re-test, now flirting with 8/34 EMA bull cross. Last cross (on June 22nd)”

Image Courtesy of Big Cheds. Chart via TradingView.

This could, however, be enough to push Bitcoin over its near-term resistance, thus catalyzing some short-term momentum.

Featured image from Shutterstock.

Charts from TradingView.

Bitcoin Flirts with Posting a Bull Cross as Crucial Resistance Nears

Bitcoin’s recent price action has done little to offer investors with insight into the cryptocurrency’s current trend, as it has been stuck between $9,000 and $10,000 for an extended period.

There are a few crucial price regions within this trading range that could hold massive sway over the cryptocurrency’s near-term trend, and one analyst believes that the first level to watch exists just above BTC’s current price.

He notes that a break above $9,260 could be all that is needed to boost the benchmark digital asset up towards $9,500. He does contend that the trend favors sellers as long as BTC is below $9,700.

It is important to note that BTC is in the process of forming a coveted “bull cross” between its 8-day and 34-day EMAs. This could provide it with some momentum in the days and weeks ahead.

Bitcoin Pushes Past $9,200 as Buyers Catalyze Some Slight Momentum

At the time of writing, Bitcoin is trading up over 1% at its current price of $9,240. This marks a notable climb from daily lows of $9,100, and it does appear that buyers are trying to generate some upwards momentum.

The crypto is now pushing up against some resistance. One analyst is noting that $9,260 is a key short-term level to watch; as a firm break above it could catalyze significant upside.

The analyst also contends that the crypto remains in bear territory as long as it trades below $9,700.

“BTC: If price can close above $9260 here I think it pushes as high as $9500s. And then back down at least for short term. Wouldn’t complain if Bitcoin just shot straight up here, but the trend is still down until over $9700s,” he said.

Bitcoin

Image Courtesy of Josh Rager. Chart via TradingView.

If it does navigate back into the upper-$9,000 region, another rejection here will just further elucidate the weakness that has plagued buyers over the past several weeks, potentially causing it to see even further downside.

BTC is About to Form a Bull Cross

One factor that could help boost Bitcoin higher in the coming hours is the potential formation of a coveted bull cross between its 8-day and 34-day moving averages.

Depending on which EMAs are crossing, these technical patterns vary in their significance. Bull crosses between these moving averages are fairly common, as the last one occurred on June 22nd.

Another respected pseudonymous trader spoke about this in a tweet, saying:

“Bitcoin: 4 hour update – After re-test, now flirting with 8/34 EMA bull cross. Last cross (on June 22nd)”

Image Courtesy of Big Cheds. Chart via TradingView.

This could, however, be enough to push Bitcoin over its near-term resistance, thus catalyzing some short-term momentum.

Featured image from Shutterstock.

Charts from TradingView.

Fund manager: Ethereum’s largest investors are fueling option market’s parabolic rise

Ethereum’s market landscape has been shifting significantly in recent times.

The popularity of trading altcoins like ETH with leverage has grown significantly since 2017, as the liquidity on trading platforms like Bitfinex has made this a popular method for traders to profit from the crypto’s volatility.

The Ethereum options market is the latest segment of the crypto’s investment landscape to see massive growth, with the total open interest for ETH options rocketing in recent months.

One prominent fund manager is now noting that some of the cryptocurrency’s largest investors are behind the growth that its options open interest has seen over the past few months.

Ethereum options market sees a massive rise in open interest 

Bitcoin’s options market has been seeing tremendous growth throughout the past couple of years, but these products have not been as popular for altcoins like Ethereum until recently.

Now, the open interest (OI) for ETH options on popular trading platform Deribit is going parabolic, reaching levels that are more than triple the average OI seen over the past 12 months.

The below chart from the blockchain analytics platform Skew elucidates this trend, showing just how rapidly the ETH options market has grown.

Ethereum
Image Courtesy of Skew

Skew also notes that the current size of the Ether options market is similar to the size of Bitcoin’s in December of 2018. Since then, OI for BTC options has grown by many multiples.

“The size of the Ether options market today… is the size of the Bitcoin options market in 2018.”

This growth has likely been primarily driven by investors who are taking positions on the crypto in anticipation of it seeing some massive volatility in the near-term.

The explosive popularity of the DeFi sector has boosted Ethereum’s fundamentals and has led to a general sense amongst traders that the crypto’s long-term outlook is bright.

Largest ETH investors may be driving the options market’s growth

Retail traders aren’t the only ones who are starting to employ options to profit from Ethereum’s volatility.

According to Su Zhu – the CEO of Three Arrows Capital – some of the “largest Ether holders in the world” are partially behind the growth ETH options OI has seen as of late.

He spoke about this in a recent post, saying:

“Can confirm some of the largest ether holders in the world are now active in the ETH options market on [Deribit].”

Ethereum options will help provide a new dynamic to its market that could benefit it in the long-term.

That being said, investors will now have to closely watch to see how monthly, quarterly, and yearly option contract expiries impact its price action.

The post Fund manager: Ethereum’s largest investors are fueling option market’s parabolic rise appeared first on CryptoSlate.

The number of crypto whales is rising. Here’s where they’re coming from

The number of Bitcoin whales has been rocketing higher since the start of 2019, pointing to an intense accumulation phase amongst these large investors who hold massive amounts of crypto.

The growth of this number seems to indicate that investors with access to large sums of capital do believe that the cryptocurrency’s long-term outlook is incredibly bright, as it is fast approaching its all-time highs that were set in May of 2018.

Data, however, indicates that this number is not growing due to new money entering the market, but rather due to these entities withdrawing BTC from exchanges.

Bitcoin whales now control 22% of the crypto’s circulating supply

The number of crypto whales – defined as entities holding more than 1,000 BTC – has been growing significantly as of late, also showing that the crypto market’s mid-term outlook remains bright.

Data from analytics platform Glassnode reveals this trend, with the below chart showing that the accumulation pattern first began in January of 2018 after sliding lower over a multi-year period.

Bitcoin Crypto
Image Courtesy of Glassnode

The research firm explains:

“When we zoom out to view bitcoin’s full history, we see that the BTC balance held by whales peaked in early 2016, and then started decreasing consistently. Despite the increase in whale holdings this year, the balance of BTC held by whales is still well below the peak.”

At the present moment, whales wield approximately 22 percent of the total circulating Bitcoin supply.

Where are these whales coming from?

As for why this number is rising, Glassnode explains that it does not mark an influx of fresh capital into the market but is rather a result of these entities moving their crypto holdings away from exchange wallets and into cold storage.

This gives the appearance of there being more whales when in actuality it is just the result of funds shuffling between wallets.

“Much of the recent increase in the number of whales can be explained not by new money, but rather by existing wealthy entities withdrawing their BTC from exchanges.”

As CryptoSlate reported previously, crypto exchange outflows from whales tend to precede bull markets.

The report cites Ki Young Ju – the CEO of CryptoQuant – who noted that crypto bull markets tend to start four months after whale outflows from exchanges hit yearly highs.

“Buy BTC when whales send bitcoins out of the exchange. The BULL market usually starts four months after the exchange average withdrawal hits year-high…”

Image Courtesy of CryptoQuant

This means that the next few months could prove to be extremely positive for Bitcoin and the aggregated crypto market.

The post The number of crypto whales is rising. Here’s where they’re coming from appeared first on CryptoSlate.

University of California Falls Prey to $1.15M Crypto Ransom Scam

It’s no secret that the crypto industry is rife with scams, hacks, and other nefarious activities, with the decentralized and private nature of many digital assets being conducive to these types of undertakings.

The latest group to fall victim to one of these scams is a school within the University of California system, who paid an online gang $1.14 million to gain access to files that were encrypted due to malware that spread throughout their computer system.

UC San Francisco Pays Cyber Gang $1.15 Million in Crypto 

According to a recent report from BBC – who followed the conversation between the two parties thanks to an anonymous source – the Netwalker criminal gang extorted over $1 million in Bitcoin from the University of California, San Francisco (UCSF) earlier this month.

Shortly after the malware had infected the university’s computer system, the IT department was directed to a page on the dark web the resembled a standard customer service page.

Crypto

Netwalker's website. Image courtesy of BBC News

They then engaged the criminals in a conversation on the site, who instructed that they pay $3 million in crypto to have access to their files and computers restored. Otherwise, they threatened, the files would all be wiped clean.

The University offered to pay $780,000, but the hackers claimed that this is not enough considering that the university makes “billions per year” and demanded they pay $1.5 million in crypto.

The university eventually offered a total of $1,140,895, which was accepted by the hackers.

The next day, 116.4 Bitcoin was transferred into the gang’s crypto wallets.

These actions run counter to recommendations from most law enforcement agencies across the globe, who argue against making contact or sending payment to any of these digital ransom rings.

Despite this, the university claims that it was imperative to send the crypto due to the locked files being valuable to “serving the public good.”

“The data that was encrypted is important to some of the academic work we pursue as a university serving the public good. We therefore made the difficult decision to pay some portion of the ransom, approximately $1.14 million, to the individuals behind the malware attack…”

Here’s Why Law Enforcement Argues Against Sending Crypto to Ransom Hackers

Ransom schemes are becoming commonplace, and law enforcement officials remain ardent in their stance against victims sending Bitcoin or any other crypto to these criminals.

Jan Op Gen Oorth – a Europol agent – stated that paying the ransom just encourages more of it to take place.

“Victims should not pay the ransom, as this finances criminals and encourages them to continue their illegal activities.”

Because crypto-assets like Bitcoin can easily be sent through a “mixer” that makes it incredibly difficult to track, it is unlikely that victims who pay these organizations will ever be able to recover the stolen funds.

Featured image from Shutterstock.

Only 27% of Circulating Bitcoin has Moved in 2020; Why This Matters

Bitcoin’s ongoing bout of sideways trading has offered little insight into its mid-term outlook.

New data now shows that Bitcoin’s price action throughout 2020 has been driven by a significantly limited number of market participants, which may explain why the crypto has been ranging between $9,000 and $10,000 for over six weeks.

According to one analytics firm, only 27% of BTC’s circulating supply has moved in 2020. This means that the remaining 73% has remained dormant, with active traders utilizing margin, futures, and options likely being the source of all of its volatility.

This comes as data shows that the benchmark cryptocurrency’s fundamental health is starting to grow, potentially opening the gates for it to see further upside in the weeks and months ahead.

Bitcoin’s Underlying Health Grows as On and Off-Chain Data Flashes Bullish Signs 

Bitcoin’s multi-week bout of consolidation has struck a blow to investor sentiment, leading many to forecast that the cryptocurrency will soon breakdown and start a new downtrend.

There are factors that support this notion, including the triple top at $10,500 that is currently in play, the consecutive rejections it has posted at $10,000, and the lower highs it has been establishing.

There is one indicator that shows Bitcoin has been incurring growing fundamental health throughout this consolidation period, suggesting that its next movement could favor buyers.

Glassnode’s Compass – an indicator made by the research firm – shows that the crypto has been slowly transitioning into bull territory over the past several months.

“For the fifth week in a row, the compass is in Regime 1, representing a bullish state for the market and for on-chain activity. GNI and bitcoin’s price trend both slipped slightly from the previous week, but still remain firmly in the green zone,” they explained while pointing to the graphic seen below.

Bitcoin

They further go on to explain that Bitcoin’s stable position within the green zone is a good sign for its mid-term outlook.

“This continued stability, both on-chain and off-chain, is a good sign for BTC… While this bullish sentiment will not necessarily translate to immediate gains for the price of BTC, the long-term outlook is optimistic.”

BTC Price Action Being Driven by a Small Group of Market Participants 

According to other data from Glassnode, only 27% of Bitcoin’s circulating supply has been moved in 2020. The rest has remained dormant.

This means that the market is currently being driven by a small percentage of market participants, as likely only a fraction of this 27% is being moved as a result of active trading.

Rafael Schiltze-Kraft – the CTO of Glassnode – spoke about this in a recent tweet, saying:

“Only 27% of the circulating #Bitcoin supply has moved in 2020. That’s right, 73% of all bitcoins in existence (~13.5M $BTC) have been dormant since 2019 and before.”

Featured image from Shutterstock.

Why This Major Crypto Could Soon Crater to Early-2017 Lows

Litecoin is one of many crypto tokens that has been struggling to garner any upwards momentum in recent times.

LTC has formed an incredibly close correlation to Bitcoin as of late, which has caused it to enter a long-held bout of sideways trading. Like BTC, it is currently trading at the lower boundary of this range and is beginning to flash some overt signs of weakness.

Analysts believe that its next big movement could prove to be dire for bulls, as it may plummet to levels not seen since early-2017.

There is one fractal pattern signaling that this next drop could be followed by a significant upside movement.

Its imminent decline, however, may be a symptom of the weakness that the cryptocurrency has seen relative to the rest of the markets in 2020. One trader is pointing out that it has been woefully underperforming many of its peers.

Litecoin Forms Close Correlation to Bitcoin But Severely Underperforms Crypto Market in 2020

At the time of writing, Litecoin is trading down just over 1% at its current price of $41. This is around the price level at which it has been hovering around for the past couple of days.

LTC’s over-month-long trading range has been established between $40 and $50, with the crypto only breaking above and below these boundaries on a few brief occasions.

This trading range has been formed in tandem with Bitcoin forming its range between $9,000 and $10,000.

Because Bitcoin and Litecoin have grown incredibly correlated as of late, it does appear that whether or not LTC breaks below $40 will depend on if the benchmark crypto is able to maintain above $9,000.

From a macro perspective, 2020 hasn’t been too great for Litecoin, as it is trading down nominally from where it started the year.

One analyst spoke about this in a recent tweet, explaining that LTC, Bitcoin Cash, and XRP have all been quite lethargic as of late, being unable to see “V-shaped” recoveries since the mid-March meltdown.

“Now if we look at the performance of the ‘Majors’ we’ve only really had ADA with a stronger return. Huge markup and the only one to have exceeded the Feb high. Weakness in recovery for BCH, LTC and XRP. Reduced % returns, rounding off and a huge distance from the Feb highs.”

Litecoin Crypto

Image Courtesy of Cold Blooded Shiller. Chart via TradingView.

LTC Likely to Decline to Early-2017 Lows Against Bitcoin

One analyst recently explained that he expects this underperformance to continue strong in the weeks ahead, potentially leading the crypto down to BTC price levels not seen since early-2017.

“LTCBTC: Can’t rule out another leg down. Would be a decent area to accumulate from,” he explained.

The same analyst also notes that this could form a similar fractal pattern to one seen a few years ago, signaling that this next decline could be just what is needed to kick off a parabolic uptrend.

Image Courtesy of TraderXO. Chart via TradingView.
Featured image from Shutterstock.
Charts from TradingView.

These Macro Factors Show That Bitcoin Bears are Gaining Control of BTC

Bitcoin’s bulls and bears appear to be locked within an intense battle for control over the cryptocurrency Bears have been gaining the upper hand over the past few weeks, as the crypto has been consistently trending downwards despite being caught within a multi-week consolidation phase Presently, BTC is trading just above a crucial support level that appears to be growing weaker due to it being tested on multiple occasions over the past few days As the benchmark cryptocurrency’s monthly close fast approaches, there are a few macro factors that suggest bears may soon have full control over it Bitcoin and the aggregated crypto market have not been able to garner any decisive momentum despite the turbulence seen last week. One trend that does appear to be favoring sellers is the consistent lower highs it has been setting over the past few weeks. It first started ranging at $9,700, then hovered around $9,400, and is now trading just above its range lows at $9,000. There are a few other trends that could determine the cryptocurrency’s macro outlook, and they all heavily favor sellers. This comes as Bitcoin’s monthly candle close looms in the coming few hours. Bitcoin Consolidates at $9,100 Following Last Week’s Volatility  At the time of writing, Bitcoin is trading down marginally at its current price of $9,140. This is around the price level at which it has been trading over the past couple of days. Yesterday, the crypto did attempt to climb higher but was met with insurmountable resistance within the $9,200 region. Last week’s volatility – which sent Bitcoin to highs of $9,800 before it reeled to lows of $8,900 – did little to provide clarity into the cryptocurrency’s short-term trend. That being said, it did work to confirm a bear-favoring “death cross” pattern that tends to flash before Bitcoin makes sharp downside movements. One analyst spoke about this occurrence in a recent tweet, noting that it has made the crypto appear to be weak while looking towards its 4-hour chart. Image Courtesy of Teddy. Chart via TradingView This could cause Bitcoin to end its June candle on a low note, potentially giving rise to a downtrend throughout July. BTC’s Rejections at $10,000 Spell Macro Trouble, Claims Analyst In addition to forming a “death cross” heading into its monthly candle close, one analyst is also noting that the consecutive rejections posted at $10,000 over the past several weeks seems to spell trouble for what comes next. This has led him to suspect that a test of $8,600 is imminent, with its reaction to this level providing crucial insights into Bitcoin’s mid-term trend. “BTC HTF Update: Rejected $10,000 for the second time this year and it seems as though HTF momentum is starting to slow, expecting price just to range here for a while, which is fine as long as buyers continue to support RL… Thinking a retest of RL at $8600 region is likely,” he said. Image Courtesy of Cactus. Chart via TradingView. Featured image from Shutterstock. Charts from TradingView.

Crucial Factors to Consider Before Bitcoin Closes Its Monthly Candle

June has been a rather uninteresting month for Bitcoin. The cryptocurrency largely ranged between $9,000 and $10,000, with each break above or below this range being fleeting.

One interesting trend seen throughout the past four weeks has been BTC’s propensity to set lower highs, as it has been slowly grinding down to the lower end of its well-established trading range.

This seems to indicate that it will close its monthly candle in the coming few hours on a low note, disappointing bulls who were hoping to see a close at, or above, $10,000.

There are now a few factors that analysts are closely observing for insight into where the benchmark cryptocurrency may trend following its upcoming monthly candle close.

It does appear that July is positioned to be a volatile month for BTC, as its June candle is set to be one of the smallest seen in over a year – pointing to the strength of its recent consolidation phase.

Some top traders expect this volatility to favor the crypto’s buyers.

Bitcoin’s Monthly Candle Close Shows Just How Intense Recent Consolidation Has Been

Between May 31st and June 1st, Bitcoin’s price rallied from lows of $9,400 to highs of nearly $10,400.

This marked the highest price levels the cryptocurrency saw this month, as its price began sliding lower in the time since.

It is important to note that the decline from these highs was gradual and can largely be categorized as a slow grind lower due to it entering multiple consolidation phases along the way.

Bitcoin is now trading within the lower end of its well-established trading range between $9,000 and $10,000.

At the time of writing, Bitcoin is trading down less than 1% at its current price of $9,150. This marks a slight rebound from recent lows of $8,900 that were set late last week.

The price action seen throughout the past month is about to cause BTC to post the tightest monthly candle it has seen in over a year. This signals that volatility may be imminent.

“BTC – the monthly candle closes tomorrow, looks like Bitcoin will have its tightest candle body in over a year,” one analyst explained.

Bitcoin

Image Courtesy of Big Chonis. Chart via TradingView.

BTC Remains Well-Positioned to Rally Towards $13,000

As NewsBTC reported yesterday, Bitcoin currently has a major liquidity pool sitting around $10,500. These levels tend to be visited by assets at some point, and one analyst believes it will help spark a BTC rally up to $13,000.

“Macro BTC context: still think we’re heading towards $13K mid term. Massive liquidity pool around 10.5k, price tends to visit those sooner or later,” one respected pseudonymous trader explained.

Bitcoin

Image Courtesy of SalsaTekila. Chart via TradingView.

Featured image from Shutterstock.

Charts from TradingView.

Ethereum is “Hinting Danger” as Potential Distribution Pattern Emerges

Ethereum has continued consolidating alongside Bitcoin and the aggregated cryptocurrency market The crypto is flashing some signs of weakness due to its recent break below its over-month-long trading range between $230 and $250. Buyers have been ardently guarding against a dip below $220, which remains the cryptocurrency’s crucial near-term support Analysts believe that ETH’s weakness is far from being over One trader is pointing to a potential distribution pattern as a technical factor that could cause it to reel significantly lower in the coming several days and weeks Ethereum and the aggregated crypto market have been unable to garner any clear trend following the turbulence seen last week. ETH is now hovering within the $220 region, with its crucial support sitting just below its current price at $220. If buyers are unable to continue defending this level, the crypto doesn’t have any notable resistance until somewhere between $198 and $200, meaning that a further 10% decline against USD could be imminent. One popular trader is now flipping short on Ethereum and other digital assets, noting that his bullish thesis is being invalidated by the weak price action seen presently. It is also important to keep in mind that this weakness caused the cryptocurrency to cause a “death cross” earlier this week. Ethereum Plagued by Underlying Weakness Due to Recent Downtrend At the time of writing, Ethereum is trading down just over 1% at its current price of $224. This is around the level at which it has been hovering over the past couple of days. Last week, ETH was able to garner some momentum when its price rallied up to highs of $242, but it met significant resistance here that then led it to reel down to lows of $220. Its rejection at this level caused it to underperform Bitcoin and plunge below the lower boundary of its trading range. It also caused it to confirm a dreaded “death cross” that hasn’t been seen since right before the mid-March meltdown. Bitcoinist reported about this yesterday, citing one analyst who said “confirmed, death cross here as well – didn’t happen since March.” Image Courtesy of Teddy. Chart via TradingView. ETH Forms Potential Distribution Pattern The recently formed death cross isn’t the only thing currently working in Ethereum bears’ favor. One respected trader recently explained that this recent price action has largely invalidated his bullish thesis for both ETH and BTC. He is now noting that Ethereum could be forming distribution above a bearish “double top” – signaling that downside is imminent. “Capitulated my ETH long… everything starting to look bad, even making me doubt my BTC bullish thesis. Looks like potential distribution above double top, had to ditch,” he explained. Image Courtesy of SalsaTekila. Chart via TradingView. Featured image from Shutterstock. Charts from TradingView.

Bitcoin Indicator Shows Price Could Hit $7,100 as Resistance Mounts

Bitcoin has further extended its long-held bout of sideways trading as it hovers within the lower-$9,000 region It is continuing to flash some signs of weakness, however, as its price has been unable to garner any upwards momentum This weakness has caused the one indicator to suggest that the crypto could be positioned to see a swift movement to lows of $7,100 if it is unable to garner any heavy buying pressure This comes as the crypto’s sellers begin flipping a previous support level into resistance, signaling that further short-term weakness is imminent Bitcoin’s lackluster price action isn’t letting up, as the cryptocurrency is currently caught within a bout of trading between $9,000 and $10,000. This range has been established over the past couple of months, and each break above or below it has been fleeting. It is a strong possibility that this consolidation phase is BTC’s way of “coiling up” before it makes a massive movement. One technical indicator seems to suggest that this next movement could heavily favor bears, as the Ichimoku Cloud shows that a breakdown could lead the crypto to $7,100. That being said, the same indicator also suggests that a breakout could catalyze some significant momentum that sends it to $13,000. Bitcoin Flashes Signs of Short-Term Weakness as Previous Support Becomes Resistance  At the time of writing, Bitcoin is trading down just over 1% at its current price of $9,080. This is around where it has been trading over the past couple of days. Last week, BTC incurred some turbulence when its price ran to highs of $9,800 before facing a rejection that sent it down to lows of $8,900. Although this jeopardized the crypto’s consolidation phase, buyers had enough strength to send it back above the lower boundary of its established range. One factor to be aware of is a recent support-resistance flip of $9,225 that could fuel further downside. An analyst spoke about this level in a recent tweet, explaining that “bulls want to be above it.” “Daily price action. Previous support now resistance; bulls want to be above it…” he explained. Image Courtesy of Teddy. Chart via TradingView BTC’s Ichimoku Cloud Shows Price Could Soon Reel To $7,100 Bitcoin’s Ichimoku Cloud is showing that the next movement will likely be massive, with an upside target sitting around $13,000 and a downside target at $7,100. It is important to note that the consecutive rejections at $10,000, frequent lower highs, and recent support-resistance flip all seem to suggest that this next movement will be downwards. “1D BTC Cloud still shows weakening bullish momentum…” one popular analyst said while pointing to a chart showing the cloud. Image Courtesy of Josh Olszewicz. Chart via TradingView Featured image from Shutterstock. Charts from TradingView.

Why one top investor’s concerns with crypto could ultimately boost Bitcoin

The crypto adoption curve has been rather steep, especially when it comes to traditional investors. That being said, the success of many blockchain-related projects has begun shifting this trend as more new investors flood the crypto market.

One prominent angel investor still isn’t convinced that the nascent market is mature enough to warrant him making any sound investments, however, as he believes that 99% of crypto projects existing today are “garbage.”

He does note that the remaining 1% of projects that can deliver functional and practical products could “change the world.”

Uber / Robinhood angel investor rails against crypto industry

Jason Calacanis is well known in the investing community due to his early investments in a handful of major so-called “unicorns” – including Uber, Robinhood, and others.

Despite being an early internet adopter and riding multiple trends that have shaped the traditional investment landscape, Calacanis remains highly skeptical of the crypto markets.

In the past, he has offered mixed outlooks on Bitcoin and the crypto industry as a whole, claiming in May of 2019 that BTC will “likely be replaced by a new technology” due to it being heavily “manipulated.”

He also notoriously stated that it would likely decline to somewhere between $0 and $500 in the future.

He later offered a slightly more bullish outlook on the cryptocurrency while speaking to Anthony “Pomp” Pompliano on an episode of his podcast from last week, in which he said he would be open to allocating a small portion of his net worth to Bitcoin.

This weekend, however, Calacanis said that he still believes “99% of crypto projects are garbage” and that most are being run by delusional and unqualified “idiots.”

He did, however, note that 1% of crypto projects that don’t fit into this category do have the chance to change the world.

“Historically, 99% of crypto projects are garbage run by unqualified idiots, delusional but below average founders or grifters… the 1% that are not, could change the world. I’m waiting for that 1% to deliver their product so I can talk to their customers. You got customers?”

Max Keiser: Reluctance from investors to enter the markets is adding to “pent-up” buying pressure

Max Keiser – an early Bitcoin investor and outspoken advocate of the benchmark digital asset – explained in reference to Calacanis’ comments that reluctance from investors to enter the crypto market is contributing to “pent-up buying” pressure.

He contends that hesitant investors will eventually start panic buying Bitcoin, helping to fuel a major uptrend.

“More pent-up buying. At some point, Jason will start panic-buying BTC. The more he procrastinates now, the bigger the panic-buys later. (This is just human nature).”

What the catalyst of the “FOMO” that will spark this panic buying remains to be seen.

The post Why one top investor’s concerns with crypto could ultimately boost Bitcoin appeared first on CryptoSlate.

China’s Blockchain Service Network Reportedly Integrating Ethereum

China’s state-sponsored Blockchain Service Network (BSN) is reportedly moving to start integrating with public blockchains like Ethereum and Nervos Network.

News of these potential integrations come just a week after news broke about the BSN utilizing Chainlink Oracles to increase the speed and security of transactions taking place on-chain.

This news seems to bode well for the blockchains and projects involved, and one venture capitalist believes that it will help advance the Chinese crypto sector – which has previously been strangled by regulations.

China’s National Blockchain Service Network to Integrate Ethereum, Report Claims

China’s BSN is a national blockchain that is backed by the country’s State Information Center, China Mobile, UnionPay, and others, although the country keeps most of the details regarding this initiative secret.

It now appears that the BSN is moving to integrate decentralized and public blockchains into their network, including Ethereum and Nervos.

According to Haseeb Qureshi – a managing partner at Dragonfly Capital – this integration has been confirmed by multiple sources and is a “big deal” for the blockchains involved.

“I’ve been informed by multiple sources that China’s BSN is going to be integrating with public blockchains, the first of which are [Ethereum] and [Nervos]. This is kind of a big deal,” he said.

While speaking about the state-sponsored Blockchain Service Network, Qureshi explained that it has been a topic of wide debate regarding how involved the Chinese government is, but that the integration of public blockchains like Ethereum is still significant.

“To what extent the government is involved in BSN has been a hot topic of debate, but including public blockchains is huge for the Chinese blockchain ecosystem. In case it’s not obvious: openly supporting public blockchains is kind of a taboo within China.”

This is Likely the First Step Towards China Opening Up to Crypto

Although this may help direct some further utility to Ethereum, it is unlikely that this will provide the crypto with any overt strength.

Nevertheless, from a macro perspective, this news does appear to be significant for the crypto industry as a whole.

Despite the Chinese government being somewhat distanced from the BSN, there is undoubtedly a strong connection between the two entities.

As such, the integration of decentralized and public blockchains could accelerate the adoption and acceptance of crypto within the country.

Qureshi mused this possibility, noting that the “blockchain, not Bitcoin” stance is simply a “gateway drug” that ultimately leads to the acceptance of decentralization.

“BSN’s push to open up with support for public blockchains will help China accelerate innovation within crypto. ‘Blockchain, not Bitcoin’ is the gateway drug. Embracing true decentralization is the inevitable next step.”

Ethereum Could Soon Plummet 20% Against BTC; Here’s Why

Ethereum has been woefully underperforming Bitcoin over the past few days, with the cryptocurrency’s USD pair fast approaching a crucial “last-ditch” support level could catalyze a massive downtrend – should it be broken below.

The weakness ETH has seen against both USD and BTC has come about despite it incurring massive fundamental growth.

The cryptocurrency has seen its daily transaction volume rocket to its 2017 highs, with the explosively popular DeFi trend directing massive user inflows to the ETH blockchain.

This has created a divergence between Ethereum’s technical and fundamental strength.

Analysts don’t believe that the fundamental growth seen in recent weeks will be enough to stop it from seeing further downside.

One analyst is now calling for a 20% decline against its Bitcoin trading pair.

This weakness could be compounded by a massive influx of tokens into exchange wallets, signaling that investors are prepared to offload their Ethereum holdings if it makes any big near-term movements.

Ethereum At Risk of Seeing Major Losses in Coming Days

At the time of writing, Ethereum is trading down roughly 1% at its current price of $224. This is around the price level at which it has been trading over the past day.

It has posted a similar loss against its Bitcoin trading pair, currently trading at 0.0245 BTC.

Its decline over the past couple of days has caused it to break firmly below the trading range that it has been caught within over the past several weeks.

This range exists between $230 and $250 on its USD trading pair, and the sustained decline beneath its lower boundary seems to indicate that it may be forming a mid-term downtrend.

Ethereum’s current weakness is also well-pronounced while looking towards its BTC trading pair.

One analyst recently put forth a chart showing that it may soon decline by over 20% due to its posting a rejection at the upper boundary of a triangle formation.

“ETHBTC: Feel free to remind me why my bearish bias on ETH over the last several weeks will be wrong?”

Ethereum

Image Courtesy of TraderXO. Chart via TradingView

This Exchange Trend is Bearish for ETH

One data analyst recently observed that cryptocurrency exchange Bitfinex had seen a massive rise in the amount of Ethereum on the platform.

This seems to indicate that traders are taking short-term positions on ETH, with a goal of exiting their positions should it push any higher in the near-term.

“So Bitfinex now holds nearly double the USD balance of $ETH vs. $BTC. Two completely opposite trends this year. $1B of bitcoin outflow.”

Image Courtesy of Ceteris Paribus.
Featured image from Shutterstock.

Charts from TradingView.

Cardano defies market-wide downtrend as correlation to Bitcoin plummets

After facing some overt weakness earlier this week, Cardano’s bulls have come back swinging, propelling ADA up by nearly four percent as the aggregated crypto market flashes some signs of weakness.

Today’s upswing coincides with a trend of the cryptocurrency breaking its correlation with Bitcoin. If this trend persists in the near-term, it could continue rallying despite BTC flashing warning signs to investors.

One trader is now noting that it is “time to pay attention” to ADA due to it rapidly approaching a crucial resistance level that has previously proven to be insurmountable.

If it can shatter this level as it continues decoupling with BTC, the token could be well-positioned to start forming another leg higher.

Cardano rallies by nearly 4% as the crypto market flashes signs of weakness

At the time of writing, Cardano is trading up 3.5 percent at its current price of $0.085. This marks a notable climb from daily lows of $0.081 that it set earlier this morning.

This past Saturday, ADA’s price took a major hit as the entire crypto market began reeling lower. It fell as low as $0.076 before buyers were able to step up and slow the decline.

In the time since it has been marching higher and is beginning to face some resistance around $0.084.

This price has proven to be a powerful resistance level over the past few weeks, and it does appear that this is the only thing stopping it from reaching its year-to-date highs of $0.089.

While pointing to this crucial resistance, one pseudonymous analyst who goes by the name “Bagsy” explained that it is “time to pay attention” to Cardano, as a firm break above this level would be technically significant.

Cardano ADA
Image Courtesy of Bagsy (Chart via TradingView)

If this level is broken, there is a good chance that buyers will then target a move to $0.09, where its all-time highs currently sit.

ADA breaks correlation with Bitcoin during its latest movement 

Over the past couple of weeks, Cardano has been shattering its correlation to Bitcoin.

Data from analytics platform IntoTheBlock shows that ADA was highly correlated to BTC between January and mid-May. This correlation began degrading in mid-May and just reached yearly lows this week.

Data via IntoTheBlock

Because Bitcoin has been trading sideways over the past several weeks and is currently showing some signs of weakness, this decoupling trend will likely persist if Cardano can shatter its near-term resistance.

It remains unclear as to whether or not ADA’s strong uptrend will be able to extend further if the aggregated crypto market sees a violent downturn in the days and weeks ahead.

The post Cardano defies market-wide downtrend as correlation to Bitcoin plummets appeared first on CryptoSlate.

Institutional Bitcoin Traders Think That the Top Is In; Factors to Consider

Bitcoin’s price has been flashing signs of overt weakness throughout the past several days and weeks The cryptocurrency is now rapidly approaching its critical support at $9,000 The buying pressure here appears to have been degrading over the past several days and weeks Institutional investors and professional traders on the CME appear to believe that the Bitcoin top is in, as most have flipped short on the benchmark digital asset This comes as a bear-favoring trendline begins guiding BTC’s price lower. Bitcoin and the aggregated cryptocurrency market appear to be in a precarious position at the moment. Last week, BTC led virtually all crypto tokens to plunge due to its recent drop from highs of $9,800. This decline extended as far as $8,900, which is where buyers had enough support to boost the crypto’s price. How it trends next appears to be premised upon how it reacts to the upper-$8,900 region in the near-term. If it breaks below this support region, its long-held trading range may finally be invalidated, and a downtrend will likely commence. Institutions and professional traders seem to believe that this is what’s going to happen, as data shows that they are widely flipping short on Bitcoin. Bitcoin Bulls Defend Crucial Support as Outlook Grows Dim  At the time of writing, Bitcoin is trading down 1% at its current price of $9,050. This marks a notable decline from daily highs of nearly-$9,200. The cryptocurrency has been struggling to garner any significant buying pressure ever since bulls pushed it back above $9,000 late-last week. It now appears that this is a sign of underlying weakness amongst its investor base – potentially signaling downside is imminent in the days ahead. One technical factor that could be partially to blame for this downtrend is a descending trendline seen while looking towards BTC’s 4-hour chart. A popular pseudonymous trader pointed to this trendline in a recent tweet, outlining the clear reactions it has posted upon visiting it. He notes that a break above it would be a buy signal. “Bitcoin 4 hour – seems to be pinned down by this descending trendline, so a break of it should be a buy signal for a trade,” he noted. Image Courtesy of Cheds. Chart via TradingView Institutions Flip Short on BTC  It appears that institutional traders are taking notice of Bitcoin’s current weakness. Data shows that this investor group is overwhelmingly short at the moment, with the number of bearish traders growing over the past several days. Another analyst spoke about this trend in a recent tweet, offering a chart showing the data set at the bottom. “CME institutional traders seem to think the top is in,” he noted. Image Courtesy of Byzantine General. Chart via TradingView Featured image from Shutterstock. Charts from TradingView.

Why Top Traders Expect Bitcoin to Hit $13,000 Despite Short-Term Weakness

Bitcoin appears to be incredibly weak from a short-term perspective.

After breaking below $9,000 for a short period earlier this week, the crypto is once again at risk of breaking below the lower boundary of its long-held trading range.

Multiple top traders, however, remain firmly bullish on the cryptocurrency’s mid-term price action. Some are even noting that they are anticipating it to see massive gains in the days and weeks ahead.

One such trader explained that there currently exists a “massive liquidity pool” around $10,500 that could be targeted by bulls in the days and weeks ahead.

The test of this level could help send the cryptocurrency rocketing above the resistance here, which would open the gates for a move up to $13,000.

Other analysts agree with this possibility, as one recently explained that holding above the $8,800 to $8,900 region over an extended period could be all that is needed to push BTC to $12,000.

Bitcoin’s Short-Term Weakness Doesn’t Invalidate Long-Term Outlook

At the time of writing, Bitcoin is trading down marginally at its current price of $9,075.

Last week, BTC was subjected to some immense turbulence that muddied the clarity investors previously had regarding the strength of the cryptocurrency’s mid-term uptrend.

Buyers were able to push it as high as $9,800 before it was met with significant selling pressure that halted this uptrend. From here, it began reeling lower until it ultimately reached lows of $8,900 just a few days ago.

The upper-$8,000 region has been holding as support over the past couple of months, and buyers must continue defending this level for BTC to see any further upside.

As NewsBTC reported previously, one analyst does believe that a continued defense of this crucial support region could be all that is needed to spark a movement up to highs of $12,000.

The analyst explained that a defense of this level would lead BTC up towards $10,000, with the break into the five-figure price region accelerating this momentum.

“I think, if we hold $8,800-8,900. From here to $9,600 -> then flip $9,300 -> crawling back up with acceleration above $10,000 and then $11,500-12,000 test,” he explained.

Here’s Why One Top Trader is Targeting $13,000

This analyst isn’t alone in believing that Bitcoin could be well-positioned to see some major upside in the coming days and weeks.

Another popular pseudonymous trader explained earlier today that a massive liquidity pool around $10,500 indicates that a move to this crucial resistance is imminent. From here, he believes Bitcoin could then push up towards $13,000.

“Macro BTC context: still think we’re heading towards $13K mid term. Massive liquidity pool around 10.5k, price tends to visit those sooner or later.”

Bitcoin

Image Courtesy of SalsaTekila. Chart via TradingView.
Featured image from Shutterstock.

Charts from TradingView.

These Three Factors Suggest Bitcoin is Already in a Strong Downtrend

It has been a rough week for Bitcoin. The benchmark crypto rallied to highs of $9,800 just a few short days ago before once again being met with massive selling pressure that caused it to slide lower.

The mixed price action it has seen in recent times is strikingly similar to that seen in the traditional markets, suggesting that it may remain highly correlated to stocks and other mainstream assets.

At the moment, BTC does appear to be in a precarious position.

It is currently attempting to hold above the lower boundary of its long-established trading range, although the support at this level appears to be growing increasingly weak.

It now appears that there are three factors that all distinctly suggest that Bitcoin has entered a downtrend and that further downside could be imminent.

This comes as analysts are noting that its reaction to a potentially imminent visit of $8,600 could determine its fate in the days, weeks, and even months ahead.

Bitcoin Slides to $9,000 as Selling Pressure Continues Mounting 

At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,070.

BTC has been trading around this price level for the past couple of days, but its inability to push into the mid or upper-$9,000 region does seem to point to underlying weakness amongst its buyers.

Just a couple of days ago, sellers forced it as low as $8,900. There was, at the time, heavy buying pressure at this price level.

As NewsBTC reported over the weekend, from a mid-term standpoint, Bitcoin’s trend in the coming weeks may depend on its reaction to $8,600.

One analyst spoke about the importance of this level, explaining that an ardent defense of this level could be enough to push BTC up to $10,500. In contrast, a decline beneath it could invalidate its multi-month uptrend and force it significantly lower.

“Bitcoin: All depending on holding $8,600-8,800. If we do, we’ve got a hidden bullish divergence (I don’t do much with them regularly). And another HL. The next test of $10,500 = very likely breakout. Losing $8,600 -> invalidation,” he said.

Image Courtesy of Crypto Michael. Chart via TradingView

Three Factors Show that BTC Has Entered a Downtrend

It does appear that Bitcoin may already be in a downtrend, despite it still trading within its long-held trading range.

Data platform Coinalyze spoke about this possibility in a recent tweet, explaining that there are three factors supporting this notion.

They note that a falling price coupled with growing open interest and a falling Cumulative Volume Delta (CVD) signals that further losses may be imminent.

“Bitcoin 4h: Theoretically this is a strong downtrend. Price fall + OI grow + CVD fall = strong downtrend,” they noted.

Bitcoin

Image Courtesy of Coinalyze.
Featured image from Shutterstock.

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Ethereum Struggles to Flip Crucial Trendline as Analysts Eye Move to $120

Ethereum’s price has been sliding lower over the past several days Despite Bitcoin being able to maintain above the lower boundary of its long-held trading range, ETH is now trading firmly below the range it formed over the past several weeks This points to some underlying weakness amongst its buyers which comes as it nears its crucial $220 support level It also just confirmed a “death cross” formation that hasn’t been seen since March. This could cause it to post a massive decline in the coming days One analyst is even noting that its next downtrend could lead it to as low as $120 Ethereum has been flashing signs of major technical weakness in recent days. This comes as the cryptocurrency grows incredibly strong from a fundamental perspective. There are a few factors that are driving this weakness, including a heavy trendline that has proven to be insurmountable, mounting selling pressure, and it just confirmed a dreaded “death cross” formation. These factors are likely to lead it lower in the near-term, but how ETH trends next may depend largely on how strong the support at $220 is. An ardent defense of this support will be imperative if buyers want to see any further upside. Ethereum’s Technical Strength Degrades as It Struggles to Break Key Trendline At the time of writing, Ethereum is trading down nearly 2% at its current price of $221. This marks a notable decline from recent highs within the $230 region that were set last week when it bounced from a fleeting visit to its current price region. $220 has been established as ETH’s “last-ditch” support over the past several weeks, making a bounce here crucial. One analyst explained that a failure to do so would likely spark a rapid 10% decline to $195. “ETH HTF Update: I would be heavily executing buy orders around $195 if we see this level get tested again over the next month, I think the next 12/24 months will be heavily bullish and I am expecting ETH to outperform the rest of the market,” he said, remaining bullish on ETH’s mid-term outlook. In spite of this sentiment, another analyst recently put forth a chart showing a downside target in the $120 region. He notes that the multiple rejections at $250 are cause for concern. Image Courtesy of AMD Trades. Chart via TradingView. ETH Forms Dreaded “Death Cross”  The same technical weakness that caused the aforementioned analyst to set a target in the low-$100 region also caused Ethereum to form a “death cross.” It had not formed this pattern since March – before it plunged below $100 – and this could be a grave sign. “Confirmed, death cross here as well – didn’t happen since March,” one trader stated, pointing to the below chart. Image Courtesy of Teddy. Chart via TradingView. Featured image from Shutterstock. Charts from TradingView.

Bitcoin Flips Bearish as Dreaded “Death Cross” Returns

Bitcoin’s price is flashing some signs of weakness again as it nears it crucial $9,000 support The multiple tests of this level do seem to indicate that it is growing weaker, and it may only be a matter of time before sellers forcefully push BTC beneath it This comes as the be3nchmark cryptocurrency grows bearish from a technical perspective Analysts are noting that it recently formed a widely dreaded “death cross’ on its four-hour chart, and its cloud pattern recently flipped bearish as well Bitcoin is once again flashing signs of weakness as it hovers within the lower-$9,000 region. $9,000 has held as strong support on multiple occasions over the past several days and weeks, but sellers have been able to push BTC beneath this level previously. This seems to indicate that the support here isn’t as strong as it may appear to be and that a break below it is imminent. BTC also recently formed a dreaded 89/200-day EMA “death cross,” which is a sign of intense underlying weakness. Couple this with the cryptocurrency’s cloud formation also turning red, and it does appear that bears are well-positioned to gain full control of the benchmark crypto in the days and weeks ahead. Bitcoin Inches Towards $9,000 as Analysts Eye Response to $8,900  At the time of writing, Bitcoin is trading down 1% at its current price of $9,050. This is around the level at which it has been trading for the past couple of days. Earlier this week, sellers were able to push the crypto down to lows of $8,900 before it bounced back into its trading range. BTC traded beneath the range for an extended period, pointing to some underlying weakness amongst its buyers. It now appears that how it responds to the $8,900 region will be imperative for understanding where it trends next – and a test of this support may be imminent. One analyst spoke about this in a recent tweet, explaining that he is looking for a support-resistance flip at $9,100 today for the crypto to see further upside. “BTC HTF Update: Daily seems to be defending this high $8900’s region pretty well, which has previously been a strong place for buyers to step-in. Looking for this daily PA to S/R flip $9100. If we can get continue to hold then I see no reason why we can’t target for $9450 next,” he said. Image Courtesy of Cactus. Chart via TradingView BTC Posts Dreaded “Death Cross” and Bearish Cloud Flip  Two factors to be aware of that could influence Bitcoin’s near-term price action are its four-hour cloud’s latest bearish flip and the death cross it recently posted while looking towards its 89 and 200-day EMAs. These two events have led one analyst to expect turbulence, noting that its 4-hour trend is now firmly bearish. “4h trend bearish. A few days ago we saw the cloud flip bearish (red) and recently saw the 89 and 200ema death cross as well. Until cloud is reclaimed, expect turbulence.” Image Courtesy of Teddy, Chart via TradingView Featured image from Shutterstock. Charts from TradingView.

Bitcoin volatility craters to 2020 lows; Is the crypto market coiling up for a major move?

For a brief period yesterday, it seemed as though Bitcoin was making a trend-defining movement that would mark a resolution to the extended period of sideways trading that the crypto has faced over the past several weeks.

This movement – like most seen over the past few weeks – proved to be fleeting and has once again resulted in Bitcoin trading within its over month-long range.

Its volatility has now dipped to fresh yearly lows, which tends to occur before it makes a massive movement.

This indicates that the crypto market may see some monumental volatility in the coming few days – potentially setting the tone for where BTC and other altcoins trend throughout the rest of the year.

Bitcoin 7-day volatility plunges as crypto researchers forecast imminent volatility

Bitcoin has been trading within a tight trading range between $9,000 and $10,000 for over a month now.

On a few occasions, buyers have catalyzed enough strength to propel it above the upper boundary, but each rally to this region has been met with significant selling pressure that sparks violent rejections.

The same goes for the lower boundary of this trading range as well. Bitcoin has, on multiple occasions, attempted to break below $9,000, but each venture into the $8,000 region has been fleeting.

Yesterday was the latest instance of an attempt from sellers to spark a selloff. The crypto dipped to lows of $8,900 before ultimately rebounding back above $9,000.

This price action has done little to offer insight into its mid-term trend and has caused Bitcoin’s 7-day volatility to hit yearly lows – according to the latest report from Arcane Research.

Bitcoin Crypto
Image Courtesy of Arcane Research

They conclude that the imminent monthly close will likely help reverse this trend and catalyze some movement.

“Larger daily movements have been observed at the monthly close both in April and May, and it is not unlikely to see the volatility pick up going into next week.”

The longer BTC consolidates, the bigger its next movement will be 

The aggregated crypto market’s consolidation phase can be thought of as a spring coiling up – the longer it coils the bigger the subsequent move will be.

Analysts do believe that this next movement could provide Bitcoin and its peers with clear direction in the weeks and months ahead.

Willy Woo, the co-founder of Hypersheet and a prominent data analyst, recently explained that one pricing model he is looking towards suggests that a Bitcoin bull market is imminent.

It also shows that the longer BTC consolidates now, the higher its next peak will be.

“The longer this bull market takes to wind up, the higher the peak price (Top Cap model). A long sideways accumulation band is ultimately a good thing.”

The post Bitcoin volatility craters to 2020 lows; Is the crypto market coiling up for a major move? appeared first on CryptoSlate.

These three factors could determine the mid-term fate of Cardano (ADA)

Cardano (ADA) has been one of the hottest cryptocurrencies throughout 2020, posting gains that have only been rivaled by Tezos and Chainlink.

Increased usage rates and notable development progression has helped drive this uptrend, allowing the cryptocurrency to climb over 270 percent from its March lows.

There are a few critical factors that could influence its trend in the coming few days and weeks.

Some of these factors seem to suggest that the near-term trend will favor ADA bears, as its large transaction count has been diving as it navigates into what on-chain data describes as a heavy resistance region.

That being said, Cardano’s unique positioning within the smart-contract sector does bode well for its mid-term outlook.

Factor 1: Cardano leads smart-contract sector as Shelly development phase progresses

Last week, CryptoSlate reported that Cardano is currently leading the smart-contract sector in terms of price performance, trading up nearly 160 percent since the start of the year.

Data from analytics platform Messari elucidates this trend, showing that ADA was followed by Ethereum in second place and Vechain in third place.

Comparison of Smart-Contract Token Performance (Image Courtesy of Messari)

Although the price is not a direct reflection of utility, usage, or fundamental outlook, Cardano has progressed by strides in all these fronts – primarily due to progress in the “Shelly” development phase.

The launch of Shelly is anticipated to provide the blockchain with a massive boost to its scalability, while also introducing a new delegation and incentive structure that will help it become more decentralized.

This will likely continue influencing its growth in the months ahead.

Factor 2: On-chain data signals ADA is approaching massive resistance  

In the near-term, Cardano’s growth may be hampered by the massive resistance that it is rapidly approaching.

On-chain data from IntoTheBlock’s “In/Out of the Money” indicator reveals that the price region between $0.08 and $0.09 may be insurmountable in the near-term.

Cardano ADA
Data via IntoTheBlock

Without there being a market-wide uptrend, it doesn’t appear that there are any immediate catalysts that could provide it with enough upwards momentum to surmount this resistance level.

As such, Cardano’s intense momentum over the past several days and weeks may now begin slowing.

Factor 3: Large tx volume plummets

It appears that large investors are taking notice of the cryptocurrency’s imminent resistance, as its large transaction count has reeled lower in recent times.

According to another data set from IntoTheBlock, Cardano’s large transaction count – categorized as those with a value of over $100,000 – has plunged from its weekly highs of 520 to 235 presently, declining consistently over the past several days.

Data via IntoTheBlock

This decline in large ADA tx volume signals that large traders are sidelining as the crypto approaches its heavy resistance, which may signal that it will prove to be insurmountable.

If this number starts climbing in tandem with a price surge, it would be emblematic of large buyers backing Cardano’s momentum.

The post These three factors could determine the mid-term fate of Cardano (ADA) appeared first on CryptoSlate.