Bitcoin Price Analysis: BTC Eyes $30K But Signals Correction Might Soon Take Place

The global crypto market has risen another $30 billion today, which has helped lift Bitcoin out of yesterday’s bearish descending triangle and onwards towards a new all-time high at $28,800.

Despite the increase in investment entering the market over the last 24 hours, the overall trading volume has actually declined by $10 billion.

This, coupled with the fact that there is a substantial RSI divergence on the Bitcoin price chart right now, suggests that the current bullish trend is weakening and that the leading cryptocurrency might correct soon.

January has almost always been a bearish time for Bitcoin and the wider crypto market, particularly after the late 2017 rally. It’s plausible that the current rally could provide an attempt to pump up buying pressure, surpassing $30K, so that larger investors can offload their bags on to retail investors just after we enter the new year.

BTC Price Levels to Watch in the Short-term

On the following hourly BTC/USD chart, we can see that the breakout level we discussed in the last analysis, around $27,050 (white dashed lines), was hit once bitcoin rejected the descending triangle pattern.

This resistance managed to keep prices suppressed for 3 hours until bullish traders finally broke through and drove Bitcoin back to $28,000.

Prices then began to stagnate around the $28,400 level before tanking to $27,300 during the start of the European trading session this morning (08:00-09:00 UTC).

Since then, bullish momentum picked up just as the U.S. trading session got underway, attempting to drive the leading crypto over $29K, as of writing these lines.

There is, however, a strong bearish RSI divergence on the 4-hour and hourly chart (white lines) that highlights the current uptrend may be running out of steam. RSI divergences are typically reliable indications that a trend is about to reverse.

If this plays out, these main support areas should help get some reactions once bears take back control of the asset.

(1) $28,400 – Top green bar and the previous all-time high.
(2) $27,850 – next green bar down from the top and key S/R level.
(3) $27,300 – third green bar.
(4) $26,750 – bottom green bar.
(5) $26,300 – yellow bar.

Total market capital: $773 billion

Bitcoin market capital: $536 billion

Bitcoin dominance: 69.3%

*Data by Coingecko.

Bitstamp BTC/USD 1-Hour Chart

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BTC/USD chart via Tradingview.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

Bitcoin Price Analysis: BTC Inside Descending Triangle – $24K or $28K Next?

Bitcoin price has fallen under the psychological $27,000 level today and is now tracking inside a descending triangle pattern on the 4-hour chart.

These patterns form when the price consolidates between a sloping resistance and flat support (yellow lines). It’s usually a signal that bearish momentum is increasing and that the flat support will be overcome soon.

Breakouts from this pattern tend to be quite extensive and require strong supports to provide bullish traders with an opportunity to push back.

$15 billion has left the global crypto market in the last 24 hours and Bitcoin dominance is back under the 70% mark.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, it’s clear that intraday selling pressure is increasing as BTC continues to print consecutive lower highs. The flat support for the descending triangle pattern is around $26,225, so a close beneath this level will confirm the bearish breakout has begun.

There is also another key support level just under this at the 0.236 Fibonacci retracement level at $23,857 which has caught the bottom of two dips during the last 48 hours. This could get a third reaction during the initial breakout.

If the descending triangle plays out, then we should look to the following areas as the most likely supports in the short-term;

(1) $25,200 – the 4-hour 50 EMA (blue).
(2) $24,263 – 0.382 Fibonacci retracement level.
(3) $24,000 – Key psychological level.

If the price does break all the way back down to $24,000, Bitcoin will be in danger of falling back inside the range between $24,000 and $22,470 that it was stuck in between December 17-25 (green shaded zone). In here, we could see volatility drop off and the price push sideways again for a second time as traders wait for more certainty in the market.

Underneath this range, there is a very strong backup support at the 0.618 Fibonacci level which also overlaps with the 200-EMA (red) at $21,720, which should provide a solid platform for bullish traders to rebound from in the event that prices slip out of the range.

For now, the main short-term resistance that bulls need to break in order to keep Bitcoin in an uptrend is the $27,050 level (white dashed line). Above this, there’s the next psychological level at $28,000.

Bitstamp 4-Hour BTC/USD Chart

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BTC/USD chart via Tradingview

Bitcoin Price Analysis: BTC Slides Sharply From $28K, Correction Time?

Bitcoin is starting to correct from its rampant rise above $28K this week, with the current price down $1,900 from its recent peak of $28,420. With the Bitcoin market capital currently above $520 billion and overall dominance now above 71%, a correction has been on the cards for a number of days now.

$55 million worth of BitMEX short positions have already been liquidated in the last few minutes, as fears of a reversal begin to disseminate.

The $27,000 level appears to be providing some temporary intraday support right now as traders try to figure out if this is the start of the last major bitcoin correction we’ll see in 2020.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that the bitcoin downtrend was foreshadowed by a long-legged Doji forming on the chart which is typically a sign of indecision entering the market. Whenever long wicks appear above and below a thin candle body, it signals that there is an even amount of high volume on both sides of the order book as both bulls and bears fight for control over the asset.

On the 1-hour MACD, we now have a bearish convergence between the 12 and 24 moving averages and the first red candle on the histogram for the first time in 3 days.

Charted volume has already started to flip bearish, which a significant spike in selling pressure in the last 4 hours – during the early American trading session.

Looking at potential bitcoin support options beneath the $27,500 level, we have the following areas which should help to prop up prices during the decline:

(1) $26,850
(2) $26,500
(3) $25,800 – 50 EMA (blue)
(4) $24,785

Depending on the severity of the reaction to this new bitcoin bearish trend, we could see the bottom of this decline reach as low as the major support bar (green) at $22,600 before significant bullish volume returns.

Total market capital: $711 billion.
Bitcoin market capital $499 billion.
Bitcoin dominance: 70.3%

*Data by Coingecko.

Bitstamp 4-Hour BTC/USD Chart

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BTC/USD chart via Tradingview

Bitcoin Price Analysis: Bulls Must Break This Level To Prevent A Bearish Double-Top

Bitcoin bulls need to make sure the daily price closes above $23,850 today, or else a double top will form on the BTC/USD chart (see below).

Double tops are bearish reversal setups that tend to result in strong downtrends. They form when an asset fails to breach the same resistance level twice in a short period of time. The second rejection signals to the market that bullish momentum has run out and that a shift in trend is about to occur.

There’s also an obvious RSI divergence (yellow line) over the same timeframe, which supports the current trend weakening idea. Not to mention, $19 billion has departed from the market since 00:01 (GMT) today, as the Bitcoin dominance is breaking records.

BTC Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see the price has failed to close above $24,000 on two separate occasions within the last 24 hours (red bar). And, even though the leading cryptocurrency has printed a higher high today, it still hasn’t broken the sloping resistance on the RSI (yellow line on the 4-hour chart).

Once the indicator line breaks this area, it should be construed as an early indication that bullish momentum has returned behind Bitcoin and will likely foreshadow a bullish reversal. However, until then, we should anticipate the indicator line to continue down towards the oversold region – provided the double top forms.

In this bearish case, there are several key supports that will likely come into play during the double top breakout;

(1) $22,700 – 0.236 Fibonacci level.
(2) $22,500 – 50 EMA line (blue).
(3) $22,000 – Psychological level.
(4) $21,500 – Order block support (bottom green bar).

For bullish targets, the $24,000 level will continue to be the main resistance that buyers will need to break in order to confirm that a new bullish trend is underway. Further above the $24K lies the current ATH around $24,370, before the psychological level of $25,000.

Total market capital: $652 billion

Bitcoin market capital: $438 billion

Bitcoin dominance: 67.3%

*Data by Coingecko.

Bitstamp BTC/USD Daily Chart

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BTC/USD chart via Tradingview.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

BTC Price Analysis: After Crashing $2K, Will Bitcoin’s Recent Recovery Hold?

Bitcoin price has finally started to correct from its parabolic rally to new all-time highs. During the European trading session today, we saw the first hourly candle close beneath the support of the bearish rising wedge pattern (yellow lines), around 09:00 UTC.

Rising wedges are classic bearish reversal patterns and typically result in strong corrections. This morning’s breakout signaled to the rest of the market that BTC was about to dive sharply and within minutes of the new candle starting, the bitcoin price tumbled over $980. The strong RSI divergence on Bitcoin’s chart (yellow line on RSI) was also a strong indication that the previous uptrend was weakening and that a correction was on the cards soon.

$47 billion was wiped out during the peak of the reversal, according to Coinmarketcap data, which bottomed out at $21,874 before breaking back over $23,000.

Price Levels to Watch in the Short-term

On the hourly BTC/USD chart, we can see that the 200-EMA (red) provided the strong support BTC needed to push back against the initial downtrend. Since then, bulls have managed to stage a recovery right the way back towards the 50-EMA (blue), which is now acting as an intraday resistance.

This point also overlaps with the top resistance of a key S/R area (top green bar) which, up until today, had helped prop up Bitcoin’s price over yesterday’s trading session. We should now expect BTC to throwback from this area and continue downward – unless of course, significant buying momentum arrives during the Asian trading session later today.

Looking below, we will look to the following areas to provide rebounding opportunities for bullish traders over the rest of this week;

(1) $22,700 – 0.236 Fibonacci level and key S/R level.
(2) $22,300 – Order block support zone (second green bar from top).
(3) $21,950 – 200 EMA line (red).
(4) $21,730 – 0.382 Fibonacci level and bottom level of the next order block support zone.

If Bitcoin bulls can break back above the 50-EMA line in the short-term, however, then the former rising wedge support level and the red zone around the $24,000 area will be the major resistances to overcome.

Total market capital: $660 billion.
Bitcoin market capital: $430 billion.
Bitcoin dominance: 65.3%

*Data by Coingecko.

Bitstamp BTC/USD Hourly Chart

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BTC/USD chart via Tradingview.

Bitcoin Price Analysis: How High Can The Parabolic Move Go? Is $25K In Sight?

Bitcoin’s price has left everyone in shock today. Not only has the leading crypto broken the psychological $20,000 mark in the last 24 hours, but also the $21K, $22K, and $23K levels in rapid succession too.

Over $71 billion has entered the global crypto market during this historical movement, pushing the weekly increase in worldwide crypto investment up to $119 billion.

The dramatic surge in price has wiped out over 474 short positions on BitMEX worth a combined $131.4 million. This will have likely caused a majority of liquidated traders to buy back into BTC to recuperate losses, which in turn will have added to the already extremely high buying pressure.

On the hourly BTC/USD chart, we can see that the RSI indicator and price action are beginning to bearishly diverge (yellow lines) which suggests momentum is beginning to wane in the current uptrend. It doesn’t necessarily mean that a crash is coming, but it does suggest that bullish traders will need to recharge before attempting a new uptrend.

Price Levels to Watch in the Short-term

On the 1-Day BTC/USD chart, we can see that trading activity on December 16th closed pretty much perfectly at the 1.0 Fibonacci extension level at $21,339.

However, to see where the asset will likely go in the short-term we need to look at the Fibonacci retracement levels on the hourly timeframe to get a better idea.

From the lowest low of the current trend at $17,570 to the current all-time high, we can see that the 0.382 and 0.5 Fib levels ($21,405 and $20,673, respectively) stand out as strong possible support areas if Bitcoin begins to reverse. There is also an order block support zone (green bar) just under the 0.236 Fibonacci Level around $22,250 which may act as a key intraday level during the rest of today’s trading session.

Looking above, we will continue to look at major psychological levels as the next likely areas of resistance; $23,000, $24,000, $25,000, and so on.

Chances of a strong correction are likely, given that there is so much hype behind the asset right now. Once that greed turns to fear we’re almost certain to see Bitcoin prices tank as traders try to secure their new gains in more stable pegged-value assets.

Bitstamp BTC/USD Hourly Chart

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BTC/USD chart via Tradingview

Bitstamp BTC/USD Weekly Chart

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BTC/USD chart via Tradingview

 

 

As Bitcoin Breaks $20K – These Are The Next Possible Targets (BTC Price Analysis)

Bitcoin price has just surged by $1,300 in the last few hours, taking it $780 beyond the previous all-time high of $19,990. This is the highest price Bitcoin has ever been across all exchange platforms and has happened just as the American trading session got underway.

In the last analysis, we predicted that the prior drop in volatility could have been a sign of an early accumulation before a new big move, and it turns out this was exactly what was happening.

$24 billion has flooded into the market during this latest price movement and pushed the global market capital within inches of $600 billion. This is the highest it’s been since January 30th, 2018 – over 1,052 days ago! This new uptrend has also caused a significant short squeeze and liquidated almost $400 million short positions on major exchanges.

Can BTC hold on to this new price point?

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that the Bitcoin price action is now clear of the 0.786 Fibonacci extension level at $20,544 and currently experiencing strong selling pressure at the $20,600 level.

It’s possible that we might see bullish traders use this key Fibonacci level as support to recharge on before launching a second attempt at breaking this new resistance.

The next likely target above this current area is the psychological $21,000 level, which might see Bitcoin prices wick slightly over this line before correcting back down. It’s difficult to say at this moment if the current rally will sustain as all indicators have now flipped bullish, but with any significant uptrend, we should always anticipate some pullback. There are also two substantial CME gaps between $17,000 – $19,100 that will be having a negative impact on Bitcoin prices over the short-term.

If the current uptrend loses momentum and prices begin to cascade back down, then we should expect the following levels to act as supports:

(1) $20,544 – 0.786 Fibonacci Extension level.
(2) $20,200 – hourly wick low.
(3) $19,800 – $19,750 – order block support zone.

Total market capital: $607 billion.
Bitcoin market capital: $383 billion.
Bitcoin dominance: 63.2%

*Data by Coingecko.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

BTC Consolidation Likely to End With a Huge Move: Bitcoin Price Analysis

Bitcoin price has been oscillating within a narrow $450 range for the past 3 days now as bulls struggle to break over the 0.5 Fibonacci Extension level at $19,480. This area between $19,044 and $19,480 is the same spot that BTC was stuck inside of during December 5 – 8, right before prices tanked by $1,560.

According to Bitcoin’s volatility chart (BVOL24H), the leading crypto has fallen by almost 43% since December 9th, and the global crypto market capital has also started pushing sideways. This could be construed as a sign of accumulation before another big move or that traders are simply winding down in the run-up to Christmas.

Despite these factors, Bitcoin dominance is now up at 64.7%, and testing levels not seen in over 22 days.

bitcoin dominance
BTC.D chart via Tradingview.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we will continue to watch the aforementioned range levels for any breakouts above or below.

It’s worth noting that there is a very subtle RSI divergence (yellow lines) in the current trend, with the indicator line printing a lower low while the price action sets a higher low. This seems to suggest that intraday momentum is favoring bearish traders despite BTC testing the $19.4K resistance at the moment.

If we see a breakout to the downside any time soon, then the $18,800 level will likely present our first area of support. From there, we have the key S/R level at $18,630, another support zone at $18,500, $18,300, and the psychological support at $18,000.

Above the current range resistance, the highest 4-hour close at $19,700 will likely be a key target for bulls to test in the short-term. The 0.618 Fibonacci extension level at $19,920 and the 0.786 Fibonacci extension level at $20,544 will also be critical levels to break above.

Total market capital: $574 billion.
Bitcoin market capital: $359 billion.
Bitcoin dominance: 62.7%

*Data by Coingecko.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

Bitcoin Price Analysis: BTC Facing Critical Resistance At $19,400

Bitcoin has successfully bucked the bearish trend that’s been suppressing prices for the past 10 days, following a strong bullish RSI divergence breakout that we predicted in the previous analysis.

After briefly dipping underneath the 200-MA on the 4-hour chart for the first time in over 60 days, strong buying momentum returned behind the asset and has since driven BTC up over $1,680 in under 48 hours.

Over $40 billion has returned to the market since the trend reversal and has helped lift Bitcoin’s dominance back above a critical S/R level (green bar) on the BTC.D chart (see below). This is a healthy sign for Bitcoin and suggests more upside is likely in the short-term.

bitcoin dominance

 

Bitcoin Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that the leading crypto has overcome the first resistance at $19,140, which was the price point just before the pennant pattern rejection. BTC has also beaten the next minor resistance at $19,240 but is now stalling ahead of the stronger test at $19,400.

This particular level has defeated bitcoin buyers on several occasions in the last month. On November 24, this pricepoint stubbed out Bitcoin’s 80-day parabolic rise, and more recently, inside the pennant pattern, it prevented an early bullish breakout. This will be a key level to overcome in the short-term and one that will likely make or break Bitcoin’s chances of breaking back over $20K before the end of 2020.

If bullish traders manage to close above this area, we should expect the following levels to pose as areas of new resistance:

(1) $19,921 – 0.618 Fibonacci Extension level & current all-time high on Bitstamp’s chart.
(2) $20,542 – 0.786 Fibonacci Extension level.
(3) $21,334 – 0.1 Fibonacci Extension level.

Looking at the RSI right now, we can see that the current uptrend has catapulted the indicator line above the previous sloping resistance and is now less than four points away from breaking into the overbought region. This means we should expect to see a correction soon to allow prices to cool off before the uptrend’s next leg begins.

If bitcoin reverses at this point, however, and bears use the momentum of the overbought correction to push prices lower, then we should look to the $18,800 (green bar) level first as the most likely short-term support. From there, we also have $18,500 and $18,300, as well as $18,000, which should prop up prices against further decline.

Total market capital: $571 billion
Bitcoin market capital: $357 billion
Bitcoin dominance: 62.6%

*Data by Coingecko.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

Bitcoin Price Analysis: BTC Retests Critical 2-Month Support, Will It Hold?

Bitcoin price continues to slide away from $18,000 today and has now returned to the 4-hour 200 EMA line (red) for the first time since October 8th, 2020.

Historically, this line has been a key long-term support for BTC and even though the leading crypto is inside the worrisome CME gap, it’s actually is getting a strong reaction from buyers right now.

The global crypto market capital is now under the $525 billion mark, but there is an early sign that momentum could be about to flip bullish. On the RSI, we can see a bullish divergence (red lines + white arrows) between the RSI indicator line and current the price action. The former has printed a higher low back inside the index channel while the latter closed lower.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that prices have just rebounded off the 0.618 Fibonacci level (blue) at $17,629 and is reaching up towards the psychological level above. Trading volume is also showing a marked increase over the last 3 days which seems to suggest traders are returning to the market following the pennant bearish breakout earlier in the week.

The aforementioned RSI divergence on the chart is significantly stronger than the one we saw during the November 26-27 bottom that led to a 19%+ rise to Bitcoin’s new all-time high on the Bitstamp chart.

If this pattern is anything to go by, then we could see a similar surge take price back to the $18,800 level (top green bar) over the weekend if volume continues to improve. Before that, however, Bitcoin bulls will need to overcome the $18,400 level and the $18,500 mark which is now being reinforced by the 50-EMA line (blue).

Looking south, if bitcoin bears are able to maintain control over the asset and keep prices suppressed despite the divergence then the $17,260 mark, the 0.786 Fibonacci retracement level at $17,000, and $16,500 will likely provide strong support areas for the crypto-asset.

Total market capital: $536 billion
Bitcoin market capital: $332 billion
Bitcoin dominance: 61.9%

*Data by Coingecko

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

Bitcoin Price Analysis: Will BTC Close The CME Gap Soon And Retest $17,000?

Bitcoin bears have successfully taken back control of the asset this week and are now trying to secure a daily close beneath the $18K for the first time since this month. The global crypto market capital has been steadily declining over the last seven days and is now back below $540 billion.

Right now, the leading crypto is tiptoeing on the edge of the $1,300 CME gap which sits just $25 below the current price and extends all the way down to $16,995. In order to fill this gap, bitcoin’s price will have to fall a further 6.95% which will almost certainly drag the rest of the alt market down with it.

Price Levels to Watch in the Short-term

On the daily BTC/USD chart, we can see that the crypto-asset now appears to be tracking inside a large down-trending channel (light blue) after breaking bearish from the pennant pattern that we looked at in a previous analysis.

There are three main support zones inside this channel that should help to prop prices up during the decline.

(1) $18,380-$18,180
(2) $17,180 – $17,000
(3) $16,340 – $16,200

The daily 50-EMA (red) and the main channel support will also likely see strong reactions if prices break down that far.

Looking at the 4-hour BTC/USD, we get a clearer idea of the resistances above if bullish traders manage to stage a comeback in the short-term. While all indicators point to a bearish continuation, we may see a temporary push back as buyers fight to keep BTC above the CME gap.

The main short-term resistances to observe going into the weekend are as follows:

(1) $18,500 – 0.382 Fibonacci level.
(2) $18,800 – Key S/R level.
(3) $19,385 – Key 4-hour resistance.

It’s worth noting that right now the 4-hour RSI is stuck beneath a clear down-trending resistance, but if we see the indicator line break the current sloping resistance (yellow line) it could be construed as an early sign that bullish momentum is beginning to return.

Total market capital: $545 billion
Bitcoin market capital: $337 billion
Bitcoin dominance: 61.8%

*Data by Coingecko.

Bitstamp BTC/USD Daily Chart

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BTC/USD chart via Tradingview.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview.

Bitcoin Eyes Huge Move In The Next 48 Hours: BTC Price Analysis

Bitcoin has had a slow start to the week so far, with volatility and trading volume falling to uncharacteristically low levels given its recent parabolic performance.

This period of low activity, however, may not be as bad as it sounds. Looking at the 4-hour chart, it’s clear that the leading cryptocurrency is converging inside a pennant pattern. Typically, this formation is a bullish continuation setup and results in a strong breakout once it reaches maximum consolidation between the two trend lines (white lines). Judging by the chart, this event could likely take place sometime in the next 48 hours.

During the consolidation period, it’s common for trading volume and volatility to drop as the asset prepares for a breakout. It’s worth noting, though, that these patterns can also break out strongly to the downside if they get rejected.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that the price has recently fallen underneath the 50-EMA (blue line), which usually provides strong support for bitcoin during market downswings, and is now resting along the first major support zone (green bar) between $18,800 – $18,900.

If Bitcoin continues to track within this pattern, we should expect to see prices wick down to the lower end of this support zone before retesting the sloping resistance above – possibly somewhere around $19,265.

When looking at these types of breakouts, it’s important to be aware of fakeouts from whale traders that try to trick weaker hands into FOMO trading. Larger bitcoin traders pump the price at the breakout point to make it appear as though the asset is about to surge so that it encourages smaller traders to begin buying. This rise in buying pressure creates high liquidity so that whales can then execute large sell trades without slippage.

What happens afterward is a brief wick up, followed by a sharp move in the opposite direction. The crypto asset then tends to ‘throwback’ onto the former resistance, establish new support, and then begin a new uptrend.

Trading breakouts is a high-risk/high reward strategy, and even placing tights stop losses is a gamble if whales decide to go stop hunting before initiating a new bitcoin uptrend. Sometimes it’s better to wait until the new trend is more confirmed before entering the market.

Bullish breakout targets.
(1) $19,550
(2) $19,920
(3) $20,353

Bearish breakout supports.
(1) $18,600
(2) $18,270
(3) $17,810

Total market capital: $572 billion.
Bitcoin market capital: $353 billion.
Bitcoin dominance: 61.7%

Data by Coingecko.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview

Bitcoin Price Analysis: Can BTC Surpass $20K Soon Despite The CME Gap?

Bitcoin price is recovering from yet another heavy sell-off this week after prices fell $1,600 on December 1 to a low of $18,100.

Despite fears of BTC closing the substantial CME gap below between $18,275- $16,995 (see chart), bullish traders have managed to successfully drive prices back above the psychological $19,000 mark.

If they can retrace back to the current high at $19,707, it will be the 3rd time bitcoin buyers have fully recovered from a $1,000+ crash in the last 12 days and will demonstrate that overall market sentiment is still favourably bullish.

The global crypto market has grown by $8 billion in the last 24 hours. However, trading volume has fallen by $80 billion. This seems to suggest that more traders are choosing to HODL right now instead of trading the dip.

Price Levels to Watch in the Short-term

On the 4-hour BTC/USD chart, we can see that the $18,600 S/R level (green dashed line) acted as key support during the crash yesterday and allowed bulls to relaunch back over $19K quickly.

The new uptrend is being inhibited by the 0.382 Fibonacci extension level (lowest yellow line) at $19,489 that was also the former high during the top of the November 25th rally. A close above this would put BTC in a good position to challenge the current close high at $19,700 and the next Fibonacci extension level at $19,921 (0.5).

Above that, we have additional extension levels at $20,353 (0.618), the 0.786 level at $20,968 and and the 1.0 level at $21,752.

If bullish traders fail to overcome this critical level, then the first major support zone at $18,880 (green bar) will likely see a reaction if bears break the $19K level. Beneath that, we have the aforementioned $18,600 level, the second major support zone around $18,270, which also overlaps with the 50-EMA (blue line), and the third major support zone around $17,800. 

Should prices break into this zone, then it will be highly likely that we’ll see the CME gap close, which could push prices down to the order block support zone between $16,800 – $16,600 (lowest green bar).

Total market capital: $586 billion
Bitcoin market capital: $360 billion
Bitcoin dominance: 61.4%

*Data by Coingecko.

Bitstamp BTC/USD 4-Hour Chart

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BTC/USD chart via Tradingview

CME BTC1! 4-Hour Chart

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BTC1! chart via Tradingview

Ripple CTO: No, XRP Transactions Cannot Be Blocked

Ripple CTO: No, XRP Transactions Cannot be Blocked

Is Ripple centralized or decentralized? This question has been a widely debated ever since the company launched in 2012. Today, CTO David Schwartz has reaffirmed that the network is in fact decentralized and cannot block XRP transactions, despite what the rumors say.

David Schwartz Defends Ripple on Quora
Ripple CTO, David Schwartz, came to the defence of his company again today after a Quora user asked whether or not XRP transactions could be blocked by Ripple or a third-party. The seemingly innocent question touched upon a long-standing debate over Ripple’s level of decentralization, and whether or not its native blockchain and XRP token is directly under the company’s control.
In his reply, Schwartz immediately made it clear that Ripple is not a centralized network, nor is there any existing way that anyone could stop XRP transactions from being processed.
There is currently no way to stop valid transactions from executing. Because the network is decentralized, nothing stops someone from writing code that blocks transactions currently considered valid and trying to convince people to run that code. It would take convincing a majority to run that code to stop those transactions.

This adds to the comments made recently by Ripple CEO, Brad Garlinghouse, in an interview with CNN, that “Ripple cannot control the price of XRP anymore than whales control the price of Bitcoin”. Garlinghouse argued that XRP shows a strong correlation to the altcoin market, and makes a case that the asset’s high daily volume would make it difficult to manipulate. He also addressed the widespread concerns regarding Ripple Labs dumping tranches of XRP on to exchanges.
Yes, Ripple owns a lot of XRP, we’re very interested in the success of XRP, but the accusations of us dumping, that’s not in our best interests to do that. We would never do that and in fact, we’ve taken steps to lock up most of the XRP we own in escrows so we can’t touch it.
Schwartz continued with his thread about Ripple being decentralized, commenting that distributed networks gain their value from being censorship-resistant, and so it would make little sense for a network majority to want to block valid transactions.
The general consensus is that decentralized networks have value precisely because valid transactions can’t easily be stopped. So it would be very unlikely that you could gather enough people who wanted them to be stopped together to form a meaningful majority. How can the majority of those who find value in a network agree to destroy the very thing that they believe gives the network value?
While his points make sense from a decentralized network standpoint, it fails to address what would happen if Ripple was asked to suspend activity on the network by an international government authority.
Plenty of People Say Otherwise
Bitcoin maximalist and well-known crypto proponent, Tone Vays, raised an interesting counter-argument to Ripple’s claims of decentralization last year. In a twitter post published in July, he laid down a simple test to prove if a crypto project truly was decentralized.
Q: What’s the difference btwn #Bitcoin & #Shitcoin? A: If it’s NOT bitcoin, it’s probably centralized! Just imagine what would happen to #Ripple Project. if say ‘hypothetically’ Iran announced they will be using the $XRP token to avoid US Sanctions [Ripple was randomly selected]
He argued that Ripple is in fact centralized because he believes that the company would be able to restrict XRP if a country’s government coerced them to. Of course, the only way to really test that theory is for a powerhouse like the United States to make it happen. Until then, this is just an educated assumption on Tone’s part. In 2017, Garlinghouse specifically refuted this challenge, claiming that if Ripple disappeared it would have no impact on XRP’s day-today operations.

Ripple is not centralized. To put it clearly: If Ripple disappeared today, XRP would continue to work. For me, this is the most important indicator that something is decentralized.

Nevertheless, in a medium post published The Cryptocurrency Consultant last year, it was concluded that “For people who have stricter decentralization requirements, Ripple in its current state is a nightmare of centralism despite its unmistakable progress. For many, Ripple’s consensus model is likely to make it impossible for Ripple to ever meet the high demands for decentralization for several reasons”.
Ultimately, there are strong arguments for both sides of the debate but for now it seems that although Ripple is making efforts to decrease its centralized control over XRP as much as possible, it’ll never be completely decentralized.
What do you think about Ripple being decentralized? Add your thoughts below!

Images via Shutterstock The post appeared first on Bitcoinist.com.

CRYPTOTAG Zeus Starter Kit Review: Is It Worth The Hype?

CRYPTOTAG Bitcoinist Review

CRYPTOTAG, a company that specializes in high-end crypto backup solutions, has just launched its new compact Zeus Starter Kit product for serious crypto hodlers. Here at Bitcoinist, we were lucky enough to get our hands on one, and it does not disappoint.


Design

CRYPTOTAG Zeus Starter Kit

As with all CRYPTOTAG products, the first thing you notice when you pick up the Zeus Starter Kit is the weight. Even for such a compact design, the quality certainly feels as solid and heavy-duty as the other much larger products in the range. The kit itself is incredibly streamline and fits easily in the palm of your hand.

According to the CRYPTOTAG website, the starter kit boasts some substantial tolerances thanks to the space-grade titanium material it’s made from. Not only is it corrosion and pressure resistant, but it can also handle heats of 1,670 degrees centigrade/ 3050 Fahrenheit, and even stop bullets! So keep it close to your heart and it might not just be your crypto that it saves.

The input method of this product is refreshingly simple and does not require a ton of components to get the job done, unlike some competitor products. The only problem however, is that once you’ve punched dots into the plates it cannot be undone. So just make sure you’re 100% certain before going ahead with the automatic centre punch. But hey, it’s crypto and we’re all used to checking our send and receive address a million times before making transactions, so it shouldn’t be a problem.

Setup

Inside the CRYPTOTAG Zeus Starter Kit box, you’ll find:

(1) A setup guide complete with a BIP39 code word list for working out your recovery phrases (see last image)
(2) Two conversion sheets to write down your decoded seed phrases on
(3) Two premium titanium plates joined by two metal clips at either end
(4) A uniquely designed automatic centre punch
(5) Two ear plugs
(6) And a box of matches to burn your conversion sheets once you’ve committed your recovery phrases to the titanium plates

The attention to detail with the ear plugs and matches, are very nice touches indeed, and shows that CRYPTOTAG really has considered all angles when designing its products.

There’s even a tutorial guide on how to use the centre punch properly!

Inside the Titanium Kit

When you take off the two clips at either end of the CRYPTOTAG Zeus Starter Kit and pull the plates apart, it reveals 24 individual BIP39 code boxes inscribed into the metal. Each of these boxes contains the numbers 0-9.

Using the code list in the back of the setup guide, you simply convert each word into a number sequence and input them on the plates, using the dot punch, in the order that your recovery phrase is shown when setting up your crypto wallet.

Below is the examples that are given in the setup guide on how to convert recovery phrases into BIP39 code form. Just to give you a better idea of how it’s done.

CRYPTOTAG Conclusion

Overall, the Zeus Starter Kit certainly looks and feels like the perfect crypto backup solution for consumers looking for piece of mind when it comes to safely storing their wallet recovery phrases. The minimalist design of this new premium kit makes it a fantastic addition to the already impressive CRYPTOTAG range, and cements our opinion that CRYPTOTAG products are 100% worth the hype.

What do you think of CRYPTOTAG’s latest Zeus Starter Kit? Add your thoughts below!


Full Disclosure: The review unit was provided by CRYPTOTAG for the purpose of review.

The post CRYPTOTAG Zeus Starter Kit Review: Is It Worth The Hype? appeared first on Bitcoinist.com.

Bitcoin Price Analysis: BTC Prepped For Another Bearish August

ethereum

Bitcoin price has almost reached maximum consolidation inside a descending triangle pattern today, having spent the last 3 days narrowly range bound between $9400  and $9580.


 Bitcoin Daily Chart bitcoin

On the daily BTC/USD chart we can see how Bitcoin has made 4 lower lows over the past 20 days and found reliable support twice at the $9,400 level. By connecting these points, we can see that a bearish descending triangle has formed which paints a less than favourable picture for the asset going into the rest of this week.

Right now, Bitcoin price 00 has effectively reached consolidation in between these two pinching levels which typically means that a breakout to the downside is imminent. Looking at trading volume, we can see that progressively fewer trades have been taking place since BTC entered the descending triangle, and that candles have been increasingly bearish.

Looking across across to other indicators, it’s clear that the RSI has also become tightly range bound as volatility slackens off, and the 10MA has now bearishly crossed beneath the 50MA.

From this it looks likely that Bitcoin bears will break the $9,400 support soon and eye new monthly lows, potentially around the $8,788 and $8,248 supports below.

Bitcoin Monthly Chart

bitcoin

When we look at the monthly BTC/USD chart, we can see further bearish signals appear. After tomorrow, we will begin a new monthly candle on the chart. Unless bullish traders are able to miraculously drive BTC back up to the monthly open at $10,760 – over 11% from its current market price – then Bitcoin will close in the red for the first time since January this year.

This could potentially signal to traders that the 2019 bull market has cooled off and is now starting to heavily correct. According to historical data featured in a Bitcoinist article last month, this would actually make a lot of sense given that August is renowned to be the worst time of the year for Bitcoin. Since 2010, BTC price has fallen around 14% during the 8th month which, from its current price, would mean that we could see Bitcoin decline as far as $8,300 over the next 4 weeks.

Despite this bearish outlook, the lagging MACD indicator does appear to be favourably bullish right now with a positive MA convergence and buying volume increasing on the histogram. This seems to suggest that the overall trend still remains positive even though the price seems primed for a correction soon.

Where do you think Bitcoin price is heading over the next 4 weeks? Let us know your thoughts in the comment section below!


Images via Shutterstock, Bitcoin charts by Tradingview

The post Bitcoin Price Analysis: BTC Prepped For Another Bearish August appeared first on Bitcoinist.com.

Bitcoin Price Analysis: Behold The Power of the Fibonacci Extension Tool

fibonacci spiral bitcoin price analysis

The Fibonacci extension tool is a popular weapon used by many technical analysts to predict future buy/sell targets, or reversal points in a price trend. Let’s take a look at how it’s used and how well it works on Bitcoin price analysis and BTC trading charts.


The Wonder of Fibonacci Numbers

The Fibonacci sequence is a string of special numbers ‘discovered’ by an Italian mathematician named Leonardo Fibonacci, during the late 12th century. What is so interesting about these particular numbers, is that the sequence of numbers makes up the ‘Golden Ratio’ or ‘Golden Spiral’, which is around the number 1.618.

This golden spiral can be seen in the way that flowers produce petals, snails grow their shells and even how stars appear in our galaxy. But in this case, we’ll look at this unique sequence of numbers apply to the trading charts.

So we know that the Golden Ratio number is 1.618, but there are also other Fibonacci numbers that are used in the Fibonacci extension tool; namely the 0.618, 0.786, 1.0, 1.382 levels.

In order to predict future price targets or reversal points in an uptrend, we must first identify 3 areas; (1) A swing low (2) a new swing high, and (3) a new swing low.

Conversely, if you wish to predict future points in a downtrend, you would look for the opposite swing levels (swing highs instead of swing lows, etc). In order to get the best results, you want to look out for strong impulse movements with clear pullbacks.

Bitcoin Price Analysis: Recent Example

On the daily BTC/USD chart we can see the recent price activity of Bitcoin over the last 4 weeks

To use the Fibonacci extension tool (Fib Extn) we must first identify a swing low, which in this case is the $4,991 level from April 25. Next, we connect the swing low to the new swing high – which in this case was the new YTD-high of $8,390 on May 16. Finally, we connect the new swing high to the new swing low value, which sits at the $6,178 level.

How the Fib Extn tool works, is it works out the Fibonacci numbers between the old swing low and the new swing high and projects them from the new swing low point.

By doing so we can see that Bitcoin (BTC) has already begun consolidating around the 0.786 level at $8,841. If the uptrend continues, it is likely that we’ll see further interaction at the other extension numbers above, namely the 1.382 and 1.618 levels. Alternatively, if BTC starts to correct then we should look at the 0.618 level as possible support where bullish traders might launch an upside recovery from.

BTC/USD Past Example

So we’ve seen how the Fib Extn tool works in an uptrend, now let’s take a look at how well it works during a downtrend.

In the example here, we can see that by connecting the major swing points that took place between July and September last year prior to the November bear market, the resulting 1.618 extension perfectly predicted the bottom of the Bitcoin market. (BOOM!)

We can also see that the 0.786 Fibonacci level at $5,343 accurately predicted the bottom of the opening sell-off which sent Bitcoin packing 15% on November 14, and the 1.382 level lined up perfectly with the strong support that held up Bitcoin’s price temporarily on November 18.

It should be noted that while these levels work well in many cases, the Fibonacci extension tool should not be used in isolation. Other signallers such as momentum oscillators, volume profile indicators, and money flow indexes should also supplement your analyses.

Trade Bitcoin (BTC), Litecoin (LTC) and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets

The views and opinions of the writer should not be misconstrued as financial advice.  For disclosure, the writer holds Bitcoin at the time of writing.


Images courtesy of Shutterstock, Tradingview.com

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