XRP, the native crypto to the Ripple protocol, just flashed a major buy signal, just as the altcoin reaches a major pivot point. Could this be the start of a monstrous rally that will cause shock and awe throughout the crypto market? XRP/BTC Triggers Buy on TD9 Sequential Although XRP has held its position as the number three crypto by market cap with relative ease, following behind only Ethereum and Bitcoin, it has been one of the worst-performing altcoins in the top ten cryptocurrencies by market cap over the last two years running. XRP was one of the few altcoins that set a new bear market bottom in 2019, and had some of the poorest year-to-date performance in the last year. Related Reading | Multi-Month Bull Signal on XRP Hints At Astronomical Alt Season Gains But this year, the altcoin reached as much as over 80% returns from the start of the year. However, a recent correction cut that rally by half already. After reaching a high of 34 cents, XRP has fallen back to a low of 25 cents, where it is currently finding support. The recent drop in the XRP/USD trading pair also caused the altcoin to lose ground against Bitcoin – dropping from 3300 sats to 2700 sats. But the drop also triggered a TD9 buy signal on the Thomas DeMark Sequential Indicator for the XRP/BTC trading pair. The indicator is used to signal a buy or sell, depending on if certain conditions are met. Candlesticks must close in a specific sequence for the signal to trigger, or the count restarts until a successful trigger is confirmed. A 9-count on the TD 9 Sequential indicator has been significant in the past. It marked the start of the recent 2020 uptrend and was successfully used by the tool’s creator, renowned marketing timing expert Thomas DeMark, to call Bitcoin’s tops and bottoms. The tool was used to famously predict the top of the 2017 crypto bubble, and even triggered buy, when Bitcoin reached its bear market low of $3,100 in December 2018. With such accuracy, it could suggest that XRP is ready to moon. Pivot month for this guy… But if you don't want to make $$ that's ok! #CryptoIkagi pic.twitter.com/0iJznrAnPl — Mitoshi Kaku (@CryptoSays) February 25, 2020 Ripple About to Rocket From Major Pivot Point Further backing up the theory, is a chart shared of the XRP/BTC pair. The analyst sharing the chart says that XRP is at a major pivot point. The crypto analyst further claims that those who aren’t paying close enough attention to this signal, must not like money, suggesting that there’s enormous ROI to be made for those that take action on this latest buy signal. Related Reading | Ready For Liftoff: Two-Year Downtrend Breakout Could Lead to $14 XRP Pivot points are notable dates according to certain time-based trading systems, that suggest a major trend reversal is about to occur. Should XRP‘s trend finally reverse against Bitcoin, it could see an explosive rally on the XRP/BTC trading pair. Featured image from Shutterstock
The crypto market has recently reached levels of greed after spending much of the second half of 2019 in fear of further downside in the asset class. However, sentiment has just flipped back to bearish after spending the first two months of 2020 bullish. Could this signal that the crypto market is about to crash? Or could this be a contrarian signal that more upside will surprise retail traders? Crypto Investors Turn Bearish, Expect Further Downside in Bitcoin Since the start of 2020, the crypto market has added over 70% in new value to the total aggregate market cap. The increase in valuations comes as Bitcoin and altcoins broke free from downtrend resistance and went on a wild rally for over two full months now. Related Reading | Ancient Math May Be the Key to Making Crypto Bull Market Riches While the current local bottom was set in mid-December at $6,400, the low for 2020 so far at $6,800 marked the last time collective retail crypto traders were bearish on Bitcoin and other cryptocurrencies. Since that date, Bitcoin rose from $6,800 to as high as $10,500 before falling back to current prices. It’s only now that the rally is over that the greater crypto market has turned bearish once again. According to a sentiment poll, crypto traders are expecting downside in Bitcoin before new highs are reached. This is the first time voting resulted in a bearish outcome since the start of the year. #BTC This is the first time retail sentiment has been bearish since January 2, 2020.#Bitcoin #ETH $XRP pic.twitter.com/AVWIgkBzCP — TrademastahBTC (@BTCtrademaster) February 24, 2020 Can Contrarian Trading Lead to Profitable Positions? When 2020 first began, retail crypto investors being bearish suggest that they had been anticipating more downside, meanwhile, the rally was just getting started. Given the fact that retail investors are usually incorrect in their assumptions – just like their bearish sentiment kicked off the early 2020 rally – it could suggest that Bitcoin and altcoins are getting ready for another leg up. Another leg up, would likely take crypto traders by surprise, given their expectations of a deeper drop in the days ahead. The flip in sentiment voting also coincides with the crypto market fear and greed index teetering back toward fear, after spending the last two months in greed territory. Related Reading | Coronavirus Fear Shakes Up Markets, But Crypto Remains Unaffected Even the Oracle of Omaha himself, Warren Buffett champions the contrarian strategy to be fearful when others are greedy and to be greedy when others are fearful. If Bitcoin pushes up from here, the iconic investor’s theory will be proven once again, and retail crypto investors could be left FOMOing into Bitcoin and altcoins at a much higher price. But even if Bitcoin falls, crypto traders will simply take advantage and buy the dip, with the expectations of much higher prices leading up to the halving. Featured image from Shutterstock
Bitcoin price just smashed through $9,500 after repeated tests, causing a flash drop to $9,350 that liquidated $41 million in long positions in just minutes. Is this the start of a much deeper drop, or was this the test of support before Bitcoin rockets higher? Bitcoin Price Plummets to $9,350 in a Flash Bitcoin price has been in a confusing state, ranging back and forth between highs above $10,000 and support at $9,500. But that support just failed, giving way to what could end up being a much deeper drop, and the end to the early 2020 rally. Related Reading | This Tool Says Bitcoin Price Is About to Rip, But In What Direction? The moment that support failed, Bitcoin plummeted to support at the monthly open around $9,350 before it began bouncing. The drop to $9,350 also coincides with a high-volume node, making it prime target for short-sellers to target longs ready for the next move higher. The market has been oversaturated with long orders since long before the 2020 rally even first began. If Bitcoin moves further to the downside, a cascade of long liquidations could continue to drive the price of the first-ever cryptocurrency down at lightning speed. With so many crypto traders bullish ahead of the halving, it could be an opportunity for contrarian crypto traders to turn the tides and keep prices at bay a while longer. Price Targets to Watch In the Days Ahead If $9,350 holds, it could be the final retest of monthly support before a push higher. The latest move took BitMEX open interest down, although the metric still remains high, signaling that even more volatile price action is likely ahead. The Bollinger Bands Width has been signaling that Bitcoin was soon going to “rip,” but doesn’t tell the direction its headed. After today’s swift move down, it could be the start of Bitcoin price ripping further to the downside, erasing much of the recent 2020 rally. Downside targets include $8,250 and lower all the way down to $7,400. The $6,000 range likely won’t be revisited, much like Bitcoin never went back to the $3,000 range after it found its bear market bottom in late December 2018. Related Reading | Bitcoin To Explode By 80% Before Halving According to Past Cycle Comparison With Bitcoin’s halving ahead, any downside may be short-lived. The entire crypto market is expecting the cryptocurrency to explode to a new all-time high once the halving occurs, further reducing the supply of the already scarce asset. After this latest drop, Bitcoin price will have more to climb towards setting a new record, as its already down over $1,000 from the local high it set this month.
The impact of COVID-19, better known as the coronavirus, has finally started to hit financial markets in a big way, but crypto has remained relatively stable for the normally volatile asset class. It’s caused the stock market to tank, but safe-haven assets like gold to surge. But what might this mean for Bitcoin and the rest of the crypto market once volatility resumes? Coronavirus Concerns More Damaging Than Virus Itself COVID-19, or the coronavirus as its widely known, is having a dramatic effect on the entire globe, from the fear felt by everyday citizens knowing a possible pandemic is on the horizon, to causing financial markets to tumble. The first signs that the virus could cause markets to crash, was following news that Apple couldn’t keep up with the supply of its flagship iPhone due to closure of production facilities due to the outbreak. Related Reading | Coronavirus Proved Bitcoin is ‘Flight Asset of Choice’, Says CEO Apple’s shares corrected by over 10%, causing the largest drop in over six months of growth. But now that cases of the coronavirus are nearing 80,000 infected, with over 2,450 deaths, and more and more cases popping up outside of China, fears are only growing over the pandemic spiraling out of control. Fears over the virus spreading and further impacting business operations and the global economy have caused the US stock market to tank. The Dow Jones dropped by 2.8%, and the NASDAQ fell by 2.9%. Even Tesla, a stock that has gone parabolic in recent weeks, fell another 6.5% amid growing concerns. Gold, however, the leading flight to safety investors turn to during economic turmoil, has been surging as a result of capital protection. It takes Bitcoin’s entire crypto market cap to move gold just 3%, so the recent over 7% move suggests that over $350 billion in value entered the gold market over the last two weeks. Bitcoin is seemingly not reacting to the coronavirus and market shakeup. Gold is ripping, equities are dumping. The bitcoin market never closes – it should have reacted already if it was a flight to safety. That said, it’s still a massive benefit if it remains uncorrelated. — The Wolf Of All Streets (@scottmelker) February 24, 2020 Stock Market Tanks, Gold Surges, But What About Bitcoin and the Rest of Crypto? Bitcoin is often considered the digital counterpart to physical gold, sharing many of the same attributes. Crypto assets like Bitcoin are often designed to be deflationary and feature limited, fixed supplies, much like the previous metal itself does. Related Reading | Okay Boomer: Millennials Prefer Bitcoin To Gold During Crisis However, unlike the stock markets that have been tanking and gold which has been skyrocketing, the crypto market has remained stagnant over the last week after spending all of 2020 surging thus far. Bitcoin is up well over 50% year to date and other crypto assets like Ethereum are up more than double in the same timeframe. Will they follow gold and surge further upward over coronavirus fears? Or will they follow the stock market and collapse as more investors derisk? There’s a chance that crypto and Bitcoin simply does its own thing. According to data, there’s very little correlation between Bitcoin and other markets. Chart shows prices of US tech stocks, US treasuries, gold and bitcoin during the current round of panic. Three of these are strongly correlated during times of stress. The fourth does its own thing. The chart illustrates how unreliable bitcoin correlations with risk assets are. pic.twitter.com/NDhvvBsnex — Alex Krüger (@krugermacro) February 24, 2020 With the lack of correlation, and such a new, emerging asset class, it is not understood yet how Bitcoin and crypto will ultimately perform in a recession. They were designed in the wake of a major recession, as a means to avoid them in the future. However, the technology may be too young at this time to serve this purpose. Only time will tell the truth about what happens to Bitcoin and the rest of the crypto market as coronavirus concerns take hold of the world.
Gold has been used for centuries as an investment, a currency, a store of value, and a medium of exchange. Bitcoin is its digital counterpart, sharing many of the same attributes that give the precious metal its unique value. The two assets have behaved similarly in the face of growing economic turmoil, fueling the “Bitcoin as a safe haven narrative.” That similar performance is poised to continue if Bitcoin continues to follow an eerily similar fractal from gold’s price chart. Investors Fears Are Fueling Safe Haven Asset Performance Gold has been surging since the start of 2019, just as fears of a global economic disaster began to reach a boiling point. An ongoing trade war between the United States and China, and increased tensions in the Middle East between Iran and the Trump administration potentially leading to war have caused a flight to safety by investors moving their capital out of riskier assets such as the stock market. Related Reading | Bitcoin Store of Value Narrative Turning Toward Safe Haven Asset And this week, gold surged another over 7% on growing concerns over the coronavirus pandemic spiraling out of control and reaching over 2,450 critical cases. But as investors derisk, oddly, the high-risk asset class of cryptocurrencies like Bitcoin have been surging throughout the year. Investing in the asset class of cryptocurrencies almost always comes with a disclaimer or warning to never invest more than you can comfortably afford to lose, simply due to how risky and volatile the speculative assets are. Yet Bitcoin is up over 50% year to date, and Ethereum, the second in line altcoin behind Bitcoin, has more than doubled in 2020 so far. And if Bitcoin continues to follow a fractal from gold price charts, the cryptocurrency is likely to push higher just as gold has over the last two weeks. Bitcoin Following Gold Fractal Points to Explosive Continuation Because of the similarities between gold and Bitcoin, its not uncommon for analysts to watch for similarities between the two asset’s price charts. In the past, analysts have pointed to Bitcoin fractals playing out that closely mimic that of gold’s price action. The latest high timeframe fractal appears to suggest that Bitcoin will soon make a run for $11,000. After gold topped out in 2011, it fell into a multi-year downtrend that it is only recently breaking free from. Sound familiar? Bitcoin is also just finishing up a two-year-long downtrend that took its price from $20,000 to $3,000. At the top of each asset’s rally, a massive descending triangle formed, that ultimately broke down and sent each asset tumbling toward lows. Once things began to turn around, each asset has rallied its way back to the support turned resistance level where the descending triangle broke down from. Gold reclaimed that support over the last month, resulting in a push higher towards gold’s all-time high. Bitcoin, however, is consolidating just above its triangle resistance turned support, possibly using it as a launchpad higher – just as gold did. With such similar price action, and because Bitcoin’s safe haven narrative positions it as a flight to safety just like gold, it wouldn’t be too surprising for the two assets to behave similarly as the overall global economy becomes more fragile by the day. Related Reading | Okay Boomer: Millennials Prefer Bitcoin To Gold During Crisis if Bitcoin does hold this level, it would likely follow a similar path as gold, taking it to over $11,000 before a pullback begins.
The number two cryptocurrency by market cap, Ethereum, has been leading the crypto rally of 2020, causing its value to more than double year-to-date. As the rally continues, Ethereum just set the most bullish string of weekly price action yet with a record-breaking total of nine consecutive weekly green price candle closes. With so much bullish momentum, what’s next for the second-largest cryptocurrency in the industry? Ethereum Continues Record-Breaking Crypto Rally Ethereum is up nearly 150% from late December 2019 lows and has already more than doubled since the year first began. The most dominant altcoin in the space has continued to outperform Bitcoin and most of the rest of the market, aside from a few outliers like Tezos and Chainlink. The rally has now resulted in Ethereum breaking a record for the most consecutive bullish weekly candle closes in a row since the crypto bubble first got started in 2017. $ETH is about to break its record for most concurrent green candles this week with 9. The record was previously held back in Jan – Mar 2017 when ETH went from 10$ to 50$ pic.twitter.com/W8gRoakk39 — XC (@runtheirstops) February 23, 2020 At the start of 2017, the crypto asset was trading at below $10 per ETH token. But after a string of eight consecutive weekly green candle closes, Ethereum was trading at over $50 a token, with over a 5x return for investors. While such a record-breaking string of weekly closes could look like a strong trend that is beginning to wane, after a short pullback the altcoin surged yet again, reaching over $400. Related Reading | Proceed With Caution: Ethereum and Altcoins Reach Critical Resistance After yet another pullback, Ethereum went on to set its all-time high at over $1,400 in early 2018, before a bear market erased over 90% of those gains. Now, after two years of a downtrend, Ethereum is ready to rocket once again and has just broken the early 2017 record for the most bullish weekly candle closes in a row. Bubble Flashback: Is The Leading Altcoin Ready For Another 7,000% Surge? Much like in 2017, the rally appears to be losing momentum, however, it very well could be getting ready for another leg up as Ethereum did during the crypto bubble inflation phase. The two surges upward added over 7,000% value to Ethereum, in just under 200 days. A surge of similar magnitude would push the number two cryptocurrency to over $8,000. While as unlikely as that may seem, the crypto asset has rallied that explosively in the past. Last time around, Ethereum’s charge was fueled by the ICO boom, but this rally is due to the current frenzy surrounding decentralized finance. Related Reading | Surging Ethereum Volume While Price Skyrockets Is Major Bullish Sign Few platforms are as robust and developed as Ethereum, so it’s been the primary platform involved in the rapid growth of the DeFi movement. As that space only looks to continue to grow from here, Ethereum’s strength is likely to continue for the foreseeable future. Featured image from Shutterstock
Bitcoin price has risen by over 50% year-to-date, from lows around $6,800 to as high as $10,500 at the recent peak. But just as the price action begins to stabilize, one technical analysis tool has reached a level that has in the past preceded some of the largest moves in Bitcoin yet. When the tool reaches this level, it suggests that Bitcoin is about to “rip,” according to one crypto analyst. But in what direction will Bitcoin price head? Bitcoin Price Ready to Rip, According to Technical Analysis Tool Following six months of downtrend starting in mid-2019, Bitcoin price found a local bottom around $6,400 in late December, and just two months later has risen well over 60%. Over 50% of the gains were added since the start of 2020, and up until this last week, the crypto market had shown no signs of slowing down. Related Reading | This 90-Year-Old Indicator Says Bitcoin Uptrend Is Just Getting Started But a few rejections on daily timeframes have caused the rally to stop in its tracks but failed to cause a deep correction. The lack of a clear direction has caused the first-ever cryptocurrency to trade sideways within a narrowing range, causing Bollinger Bands Width to reach a level that in the past, has triggered an extremely explosive move. In drawing attention to the potential explosive price action that’s coming, one crypto analyst says that the tool is suggesting that Bitcoin “is about to rip,” but that the direction in which the crypto asset will head toward is anyone’s guess. #Bitcoin $BTC The tight @bbands indicate that we are entering the zone where the corn is about to rip Are you going to be on the right side of the trend? pic.twitter.com/SXl6KBZ027 — Goomba (@im_goomba) February 24, 2020 If Bitcoin price were to plummet downward, much of the recent parabolic rally could retrace back to prices around the low $7,000 range, giving crypto investors the opportunity to buy sub-$10,000 Bitcoin yet again. However, a break upward from the low metrics could cause an explosive break of overhead resistance, and one that causes a shocking move higher. Bollinger Bands Width Accurately Predicts Explosion in Price Volatility Using Bollinger Bands Width to predict when explosive movements occur has worked with incredible accuracy throughout the 2019 downtrend that lasted from June to December. The first major break below 0.15 on the Bollinger Bands Width chart, caused Bitcoin’s first major $2,000 drop in late September 2019. A break back above that level a month later caused the historic “China pump” that set records for one of Bitcoin’s largest one-day moves in its history. The next time it fell below that level, Bitcoin price rocketed down to lows in the mid-$6,000 range. Once there, it held there for nearly a full month, until a break back above that line caused the recent uptrend from $6,800 to $10,500. Related Reading | This Insanely Bizarre Signal Called Bitcoin’s Top Three Times In A Row This past week, Bitcoin price fell back below 0.15 on the Bollinger Bands Width chart for the first time since the rally began, suggesting that yet another powerful move will cause Bitcoin to “rip” form this level in one direction or the other. But which direction will it be?
Bitcoin and other cryptocurrencies are having a strong year thus far, however, the rally is only expected to continue with the asset’s halving on the horizon this May. But how much could Bitcoin spike ahead of the monumental event? According to historical analysis of previous market cycles in comparison to where the market may be right now, it suggests that the first-ever cryptocurrency is ready to surge another over 80% prior to the halving. Bitcoin Price Ready for Another 80% Rally After Latest Pullback The crypto market sentiment index has recently begun to teeter back toward fear from the extreme greed reached last week as Bitcoin surged above $10,000 for the first time in 2020. The important level failed to hold, causing the fifth-largest one-hour drop in Bitcoin’s history ever recorded. Related Reading | Bitcoin Halving Overhyped: Previous Cycle Led to Another 6-Month Crypto Winter The crash took the price of the first-ever cryptocurrency back to $9,300, where it has currently held at weekly support. The drop caused the market to panic, expecting a break of the recent parabola to drive prices down further. But retesting and holding former resistance as support is incredibly bullish. When comparing the previous Bitcoin market cycles, after the cryptocurrency held support at a similar level as current price action, the cryptocurrency explodes by 83%. However, it ultimately failed to make a new all-time high. (Click for full-size version) If the same thing happens again, Bitcoin will surge to over $17,000 before another short-lived downtrend cuts the gains down to size. After the next, shorter downtrend is over, Bitcoin goes full parabolic and sets a new all-time high – according to the comparison. Comparing Past and Present Shows Crypto Rally Has More To Go Further supporting the idea that Bitcoin has more to rally, is a comparison to the early 2019 rally. On the way up after the breakout in April 2019, the leading crypto by market cap formed a golden cross of the 50-day and 200-day moving averages. Immediately after this occurrence, Bitcoin plummeted just under 10%. (Click for full-size version) Just days ago, Bitcoin formed yet another golden cross, and the same exact drop happened once again. Much like last time, analysts were watching a convergence of moving averages that would act as support for any pullbacks, but the golden cross proved to be too powerful, and the moving averages were never tested. Related Reading | This 90-Year-Old Indicator Says Bitcoin Uptrend Is Just Getting Started Instead, Bitcoin rocketed higher, taking the cryptocurrency to $14,000 – much higher than anyone expected just months after trading at $3,000. That move resulted in an $11,000 move upward. Bitcoin was just trading around $6,500, and another $11,000 push from there would take Bitcoin price to a target of roughly $17,500 – right where the past cycle comparison lines up with the pre-halving peak. (Click for full-size version) The pattern of peaks and troughs would greatly resemble a five-wave impulse move up, according to Elliott Wave Theory. This also exactly matches the last market cycle. More and more similarities can be found around every corner that all indicate that Bitcoin is entering its next bull market, and the next movement from here could be a powerful pump that takes the entire market by surprise – just like it did in early 2019.
After two years of cryptocurrency bear market, altcoin assets are finally surging in value once again, but the best performers thus far are shiny new projects with much promise and hype such as Algorand. Among the top-most performers, are Tezos, and Chainlink, but could this newcomer be ready to join these shining stars of the cryptocurrency market limelight after a staggering 130 year-to-date% surge? Altcoins All-Stars Gain Over 100% Year-to-Date in 2020 Because the emerging asset class is still so new, young, and lacking utility and use cases currently, the cryptocurrency market is driven primarily by speculation and hype. The coins that perform the best, aren’t always the ones with the strongest fundamental value backing them, but the ones that are hyped the most by the cryptocurrency community and influential figures. Related Reading | Poll Shows Crypto Investors Expect ChainLink To Be Top Performing Altcoin in 2020 During last year, upon visiting any cryptocurrency subreddit, forum, or when browsing Twitter, you’d be hard-pressed to avoid mentions of the altcoin known as Chainlink. From the cryptocurrency’s late 2018 low of 18 cents, it rose over 2,500% to a 2019 high of $4.85. Gains like that are certainly worth the clamor that spread across the industry as a result. Chainlink is up over 200% in 2020 year-to-date already, matching the gains of other cryptocurrency industry standout, Tezos. Tezos is also up over 200% year-to-date also and is among the most hyped altcoin in the market right now. The two altcoins are fighting ferociously for the number ten spot by total market cap in the list of top crypto assets. Tezos currently enjoys that title, but Chainlink is right behind it. You’re probably not buying $algo because everyone on Twitter is talking about. I bet you did the same thing with $link & $xtz. You’re messing up again. — J. (@jregardless) February 20, 2020 Is Algorand the Next Cryptocurrency Market Shining Star? But just as talk about Tezos and Chainlink couldn’t be avoided before their breakthrough performances, another altcoin is suddenly being hyped to similar extremes. Algorand is a relatively young altcoin, available for trading on Coinbase, Binance, and a few other platforms, alongside the likes of Bitcoin, Ethereun, Tezos, and Chainlink. Related Reading | Could Crypto Exchange Coinbase Be Pumping Tezos To The Moon? Staking is among the reasons for Tezos over-performance against the rest of the industry, offering a 5% APR through Coinbase. But Algorand is offering staking rewards at between 16% and 20%, as much as four times that of Tezos. 16-20% is no joke. $ALGO https://t.co/CYtpsfh7es pic.twitter.com/Jxq0oRQ1HD — Charles J Read (@chatwithcharles) February 21, 2020 The rewards have caused plenty of buzz around the cryptocurrency, which has resulted in a 130% surge year-to-date thus far. While this number is trailing behind Tezos and Chainlink, which have more longevity and awareness in the market, Algorand is going toe-to-toe with Ethereum’s gains, which are on par with one another. Not too shabby for an altcoin project that is relatively new. The main reason why crypto investors are so bullish on Algorand is due to the asset’s small market cap. Whereas Ethereum is valued at $29 billion, Tezos at $2.5 billion, and Chainlink at $1.5 billion, Algorand’s market cap is a mere $250 million, suggesting there is tremendous upside if the cryptocurrency continues to take off.
Tezos has been on fire over the last six months, rising over 400% in that timeframe and leaving investors scratching their heads as to what is fueling the astronomical rise. But could it be in part clever marketing from popular cryptocurrency platform Coinbase that is driving extreme FOMO into the number ten cryptocurrency by market cap? Tezos, the Unstoppable Altcoin is 2020 Crypto Market Champion Tezos has had an explosive start to the year, rising over 225% since January 2020 first began. Nearly two full months later, even after a 28% pullback, the altcoin is showing no signs of stopping or slowing down. Related Reading | Tezos & Ethereum: These Top Performing Altcoins Flash Dangerous Sell Signals Tezos is a platform designed to launch Security Token Offerings. STOs are essentially a digital, tokenized version of the IPO launch, where traditional securities such as are tokenized to take advantage of the benefits of blockchain technology for transparency, tracking, and validation. Much like Ethereum exploded in value during the ICO boom, Tezos is expected to perform strongly as the STO comes into favor. But there may be other factors driving the altcoin’s recent stardom and parabolic rally. Tezos is among the crypto market’s top performers this year, and rocketed from low own the list of top cryptocurrencies to a position in the tenth spot, even surpassing Chainlink – the best performing altcoin asset of the previous year. Coinbase Staking Gains Give Investors a Feeling of XTZ In addition to the plenty of reasons Tezos already has to shine, the real driver behind the boom may be in Tezos and how one of the most popular crypto exchanges in the world promotes the staking aspect of the altcoin. In fact, just one aspect alone is likely to encourage investors to buy more. In a tweet, an ecstatic crypto investor shows a clip of watching his Tezos staking earnings pile up in real-time. Omg, I didnt know the coinbase tezos interest ticker worked like this pic.twitter.com/XsHsNZGRoC — Jeremy Ross (@jebus911) February 20, 2020 Part of the thrill of cryptocurrencies is watching your portfolio values skyrocket during bull markets, but the gains provided by the number ten crypto asset by market cap stack up during staking with or without the market surging. If that wasn’t enough to cause more investor FOMO, Coinbase further encourages holders of the altcoin to try out staking for themselves. Coinbase even offers Tezos holders additional XTZ tokens for giving staking a try. With Coinbase essentially paying you in XTZ to take staking for a test drive, investors are more likely to do so and see the benefits Tezos provides compared to other crypto assets. Related Reading | Top Trader: Tezos Cryptocurrency Can Surge 5-10x After 100% Rally in 2 Weeks And once they see not only how quickly Tezos’ value is rising, and how quickly their staking rewards pile up in real-time, it increases the likelihood that investors dump more capital in the parabolic altcoin. Featured image from Shutterstock
The moment all crypto investors have been waiting for may finally be upon us: Bitcoin is about to enter a new bull market. And while market participants have been saying it for some time now, this indicator first developed in the 1930s and still popular today points to Bitcoin’s new uptrend only just noq beginning, despite an already over 40% return year-to-date. 90-Year-Old Technical Analysis Indicator Signals Buy on Weekly Timeframes Using technical analysis to chart across multiple timeframes is common practice for all types of traders, crypto, Bitcoin, or otherwise. Lower timeframes are often paid the closest attention, as these dictate intraday price movements that the cryptocurrency community prefers to speculate over and makes for quick scalp trades. Related Reading | This Insanely Bizarre Signal Called Bitcoin’s Top Three Times In A Row But it’s the highest timeframes – daily, weekly, and monthly – that typically dictate the underlying strength of an asset and any trend direction. A 90-year-old, Japanese technical analysis indicator is signaling that Bitcoin’s new uptrend is just getting started, according to an impending cross of the two Senkou spans. In the chart below, the Senkou span A (in blue) and the Senkou span B (in red) lines on the Ichimoku indicator, are making a cross that signals an uptrend is starting. The last time this happened was in May of 2019 while Bitcoin was trading below $6,000. After the cross occurred, the leading cryptocurrency by market cap exploded upward by over another 130%. Another 130% surge from current levels, would put Bitcoin at a new all-time high near $23,000. In addition, price has broken into the Kumo on the indicator. Any break above it will further confirm a new uptrend. Backing Up the Ichimoku Indicator Claims Of A New Bitcoin Bull Market The Ichimoku Kinko Hyo is a technical analysis indicator designed in the 1930s by journalist Goichi Hosoda. The journalist’s nickname was Ichimoku Sanjin, which translates to “what a man in the mountain sees.” This man in the mountain aptly named certain aspects of the indicator after what someone in his position would see, such as the Kumo, or cloud. Related Reading | Ancient Math May Be the Key to Making Crypto Bull Market Riches The indicator was created to provide a graphic environment that offers analysts an “at a glance” look at all aspects of a market, including support, resistance, momentum, time, and more. While there are a number of ways to use the indicator, the most common way is watching for a cross of the two Senkou span lines. Others include a twist in the cloud and more. The indicator is widely used today, despite almost being nearly 100 years old. Those that aren’t comfortable with such a tool, may feel more comfortable with more common technical analysis practices confirming a new uptrend in Bitcoin. Even just drawing trend lines on weekly timeframes confirms that a breakout has occurred and that the strongest level of resistance has been flipped back into support. This also suggests that the latest pullback across the crypto space is may simply be a retest and confirmation of this resistance turned support. If that happens, Bitcoin and the rest of the crypto market will enter an uptrend like the Ichimoku indicator suggests, and will likely bring about a new all-time high in the months ahead.
Although altcoins have vastly outperformed Bitcoin in recent weeks, the asset class is still trailing far behind the first-ever crypto asset when compared to past cycles. And if history repeats, Bitcoin is likely to trade sideways over the next few months, making for the perfect environment for altcoins to shine and steal the limelight once again. Altcoins Extremely Undervalued Compared To Previous Crypto Market Cycle Despite 11 years in existence, cryptocurrencies are still a relatively young financial asset class. Even with such a small sample size to analyze, top crypto analysts often look to past crypto market cycles to attempt to make sense of current price action taking place across Bitcoin and altcoins. Related Reading | Altcoins Break Out Against Bitcoin After Six Months Of Sideways After a historic rally kicking off the new year, resulting in the leading cryptocurrency by market cap growing by over 40% year to date, and its altcoin cousins outperforming BTC by a large margin, it’s clear a new bull market is near. However, past cycles suggest that altcoins are severely undervalued against Bitcoin compared to historical performance. When comparing past cycles, altcoin dominance was far higher than current levels when compared against Bitcoin price models within the same timeframe. during that 3-4 months (100-130 days) long period in 2016 the shitcoin dominance% has doubled (altszn) 2nd pic: the current make-believe triangle is ongoing for over 8 months now, shitcoins only have started growing their dominance % somewhat (26% only) the past 40-50 days pic.twitter.com/tCKGSNJeXl — starbust (@inversebrah) February 20, 2020 This suggests that altcoins have a lot of catching up to do across the asset class. This should come as no surprise, considering that most altcoins dropped over 90% from the all-time high valuations, and have spent two full years in a bear market they are only now escaping from. Bitcoin Pre-Bubble Fractal Shows Short Term Sideways Before Explosive Growth Resumes But this all could change soon if past price action plays out the same way during the current crypto market cycle. And while past performance isn’t an indicator of future success, history does often repeat itself, and markets are incredibly cyclical. According to past cycles, Bitcoin is likely to trade sideways from here, for the next few months leading up to the Bitcoin halving. without replay mode pic.twitter.com/ODH8xGnohV — starbust (@inversebrah) February 20, 2020 If this is the case, sideways trading is often considered the ideal environment for altcoins to grow. The theory is that while Bitcoin remains stagnant, some crypto traders get bored with the price action and begin diverting capital toward underperforming altcoins. The low liquidity in these assets causes prices to rise quickly, and more and more investors sell their Bitcoin into altcoins to take advantage of the additional gains. Related Reading | Analyst: Recent Bitcoin Rally Is Only the Start, Retail Will Take it to New Highs And even though altcoin sentiment being positive always leads to Bitcoin growth, further selling of Bitcoin into alts can keep the first-ever cryptocurrency trading sideways for an extended period of time, even if new fiat is flowing in. Regardless of where that fiat ends up – Bitcoin, Ethereum, XRP, Tezos, or others – it all benefits the greater crypto market and pushes it closer towards the next major bull run.
Yesterday, Bitcoin plummeted by over $1,000 in one hour, representing the fifth-largest single one-hour drop in the asset’s young history. And interestingly, it happened mere minutes after this insanely strange sell signal reared its ugly head, marking the third time in a row in a matter of two weeks that the signal worked like a charm. Ironic Tweets Call Bitcoin Top Three Times in a Row Bitcoin has been on a moon mission throughout 2020 thus far, rising from lows near $6,800 to as high as $10,500. The rally has added over 40% to the asset’s value in less than 60 days into the new year. Related Reading | Crypto Market Crash: This Technical Structure Puts End to Uptrend The surging prices also triggered a golden cross of the 50-day and 200-day moving averages – an incredibly bullish signal. But yesterday at roughly 3:00 PM eastern time, a massive, one-hour long, record-breaking crypto market dump happened, causing asset prices to go tumbling. Bitcoin dropped by over $1,000, setting the record for the young, disruptive asset’s fifth-largest one-hour sell candle. The selloff happened exactly three minutes after an ironic tweet was made by cryptocurrency influencer Holdonaut. Holdonaut became well known for creating the Bitcoin lightning torch experiment, where one major crypto influencer sent the cryptocurrency to another, creating a domino effect of promotional efforts spreading the word about the second-layer technology. Later, Holdonaut, was threatened with legal action from Bitcoin SV frontman Craig Wright, for defamation of character. Now, Holdonaut is in the public eye once again, but this time for signaling the of Bitcoin’s rally not once, not twice, but three total times. Holdonaut over the last two weeks has made three tweets claiming that Bitcoin would never again trade below $10,000. pic.twitter.com/zvpVocjKIG — Cryptofungus (@crypt0fungus) February 19, 2020 Each time the tweet was made, Bitcoin promptly fell below $10,000. This latest tweet happened just three minutes before the record-breaking crash across the crypto market that wiped billions of value in an hour’s time. The ironic tweet acted as a massive sell signal three times running in a matter of two weeks. Jinx! Prediction Track Record Favors Immediate Downside However, the same tweet can be found many times over the last two years of the bear market. Even the most well-respected cryptocurrency analysts across the industry have been incorrect when making that call. #bitcoin 200 week moving average growing 5.6% per month … last opportunity to buy #BTC below $10k pic.twitter.com/uEKl24TEYt — PlanB (@100trillionUSD) June 21, 2019 Ahead of the June 2019 top, back when Bitcoin reached $14,000, Bitcoin stock-to-flow model creator Plan B claimed it would be the last opportunity to ever buy Bitcoin below $10,000 again. It’s now happened a handful of times since. Bitcoin pioneer Charlie Shrem also made a similar incorrect prediction in May 2018, months before the first-ever cryptocurrency later plunged to $3,000. May 2018 will be the last time we ever see #bitcoin under $10,000 — Charlie Shrem (@CharlieShrem) May 3, 2018 The statement dates back to even earlier in 2018, after Bitcoin rebounded from a V-shaped bottom at $5,800 in February of that year. The bear market began right after that call was made. Even earlier, those that watched Bitcoin break above $10,000 for the first time – an undeniably important psychological resistance level – likely assumed that the cryptocurrency wouldn’t ever find itself below the level ever again. Related Reading | Bitcoin To Explode To $18,000 Ahead Of Halving, As Probability Of New ATH Grows But Bitcoin is once again trading below $10,000. The next time it breaks above it, make sure nobody claims that Bitcoin will never again go below that number, and if they do, it may just be the time to sell.
XRP has been like a rocket ship ready for a moon mission, with crypto speculators predicting an immense rally against the dollar and Bitcoin. But either XRP is refueling its jets before more upside or has just taken a detour back into a selloff, as the price of the number three cryptocurrency by market cap just plummed below 27 cents in a matter of minutes. XRP to the Moon? It’s Headed the Wrong Way While crypto analysts have been calling for an explosive end to XRP’s 680-day long bear trend, the cryptocurrency often referred to as Ripple, just collapsed in a terrifying crypto market flash crash. Related Reading | Ethereum Nosedives to $250 in Massive Crypto Market Dump Across Bitcoin, Ethereum, and other altcoins, a rapid drop wiped out billions from the crypto market. XRP was also impacted, and the crypto asset fell by over 8% in an hour. The total fall from today’s high is over 12%. The drop took XRP from nearly 31 cents to as low as 27 cents in a flash. Just five hourly candles exist between the high and low, but most of it came during the last hour, dropping from over 29 cents to 27 cents in just minutes. Support below 27 cents must hold, or the entire rally is in jeopardy of retracing. New lows may even be set, as a failure to set a new high could crush what little confidence Ripple investors have regained since the rally began. Before the rally made up for some lost ground, XRP was among the crypto market’s worst performers two years running and was among the few assets to set a new low in 2019 after a bear market low was set in 2018 by most other cryptocurrencies. Will XRP Reach $14 Or Is the Rally Already Finished? But all that poor performance can be undone in as fast as this crypto crash occurred. When XPR does finally explode out from the current low trading range, it is likely to see face-melting gains. In the past, once Ripple broke out, XRP rose by 6,000% against the dollar and as much as 2,000% against Bitcoin. If the same thing happens, XRP could rocket to as high as $14 per token during the next bull market. Related Reading | Bitcoin Craters to $9,300, Liquidating $120 Million in BitMEX Longs That’s of course if bulls can continue to push the rally further to new highs, and prevent bears from pushing the price of cryptocurrencies like XRP back down to set new lows for 2020.
The number two cryptocurrency by market cap, Ethereum, just experienced a massive dump alongside many other major crypto assets, including Bitcoin and the rest of its altcoin brethren. Is the 2020 crypto rally finally finished, or is this just another opportunity to buy the dip across the crypto market before further upside in the days ahead. Ethereum Drops to $250 in Crypto Market Mayhem Ethereum just lost as much as 10% of its value in a matter of just one hour, as the smart-contract focused altcoin’s rally may finally be finished. The cryptocurrency has been rallying since the start of 2020 and had been up to over 100% at recent highs since the year first began. Related Reading | Tezos & Ethereum: These Top Performing Altcoins Flash Dangerous Sell Signals But the number two cryptocurrency by market cap has struggling to set a new high, and after this latest collapse that wiped out 10% from the value of Ethereum, it’s starting to look like the crypto bull market is taking a quick break. In a matter of an hour, Ethereum fell from highs around $286 to as low as $250, before finding support. The current local high of the entire rally is set at $290, failing to reach its 2019 high of $364. Resistance from $285 all the way up to $300 may have proven to be too powerful for bulls to break through. Bearish crypto traders may have the high volume reversal, top-like reversal they were looking for, however, the drop failed has thus far failed to set a lower low on daily timeframes. On Sunday, Ethereum dropped to $236 before rebounding back toward local highs. But the rally has thus far failed to hold and was rejected back down to find support. Is the Crypto Rally of 2020 Over? At the time of this writing, $250 is holding strong, and Ethereum has already rebounded, but additional downside cannot be ruled out. After over 60 days of uptrend and 100% gains, a retracement isn’t out of the question, although some crypto analysts are claiming that it make take weeks or months to occur. Many indicators confirm that at a new crypto bull market is here, however, that doesn’t mean massive crashes still can’t cut rallies down to size at every turn. Related Reading | Crypto Market Crash: This Technical Structure Puts End to Uptrend This latest turn for Ethereum could result in new lows being set, or if a bull market is in effect, dips will be bought with fury and speed, and in no time at all, Ethereum will be back to setting new locals highs.
The Bitcoin halving is right around the corner, less than three total months away. The event is said to cause extreme bullishness and could send Bitcoin to prices of $55,000 or higher shortly after the event takes place. But while crypto analysts are expecting a massive rally following the Bitcoin halving, the last halving was the start of yet another crypto winter, before the bull market truly began. Shock and Awe: Bitcoin Halving Expectations May Not Match Reality The upcoming Bitcoin halving in May 2020 might take crypto investors by surprise. The digitally-coded event will slash the block reward miners receive for validating each new block added to Bitcoin’s blockchain by half. Related Reading | Analyst: Crypto Market Pullback Imminent But May Not Occur For Months The fewer supply miners receive, doubles the cost of production per BTC overnight. Because of the cost of production so largely outweighs the price of Bitcoin, miners stop selling until prices catch up. The lack of supply creates an imbalance of demand that causes valuations to surge exponentially in the already scarce asset. Because of this design, Bitcoin is expected to skyrocket in value after the halving. Stock-to-flow models put the value per BTC at $55,000 or higher immediately following the halving, due to the impact the event has on the limited supply of the cryptocurrency. And investors are correct, at the core. Each halving has kickstarted massive, year-long rallies that led to new all-time highs after the crypto asset goes parabolic from FOMO. $BTC #bitcoin I'm not sure where this idea that halvening = ULTRA MOON NOW came from…but looking at 2016 – Entirely sure our time will come but– What if we are here, but at 1/7th the speed?– Are you prepared for a downtrend into next Winter? pic.twitter.com/RuYzWmYpWy — COFFEE (@overheardcoffee) February 19, 2020 However, it isn’t a situation where the halving happens, and suddenly Bitcoin takes off like a rocket ship. Instead, what has happened in the past, was that a pre-halving rally led Bitcoin to new local highs, but failed to set a new all-time high ahead of the event. Could Another Six-Month Downtrend Plague the Crypto Market Post-Halving? Once the Bitcoin halving took place, days later, a massive, steep, 40% selloff happened that took a full six-months to play out. After Bitcoin topped out in June 2019, it fell into another extended six-month downtrend, from $14,000 to $6,400. If a similar selloff happens once again post Bitcoin halving, the price should fall from roughly $18,000 back to $10,500 support, before the true bull market begins. After this last six-month-long downtrend, the first-ever cryptocurrency on experienced limited pullbacks while a parabolic advance reached higher and higher until a new record was set. Related Reading | Ancient Math May Be the Key to Making Crypto Bull Market Riches Crypto investors looking for an example of this need to look no further than Litecoin. Just ahead of its halving the altcoin experienced a deep selloff that wiped out much of the asset’s pre-halving gains. However, those that can withstand the coming post-Bitcoin halving selloff, will end up riding the rally all the way to a new all-time high.
The cryptocurrency known as Tezos is among the year’s best performing altcoin assets, rising more than 200% year-to-date. And while the surging crypto asset is showing no signs of stopping, it could go on to double from here, according to a prominent crypto analyst and short-term “parabola.” Tezos Is Top Performing Altcoin Asset of 2020 Bull Market Tezos is a clear cryptocurrency industry standout. The altcoin recently exploded into the top ten crypto assets by market cap, after an early 2020 rally smashed all expectations and then some. Related Reading | Top Trader: Tezos Cryptocurrency Can Surge 5-10x After 100% Rally in 2 Weeks Since the start of the year, Tezos is up an insane 200%. From the asset’s late 2019 downtrend “bottom,” Tezos has quadrupled in value, with a sky-high, over 420% return. And from the asset’s bear market bottom, it has grown in value by a staggering 1,125% in a little over a year’s time. Analysts have been warning late-to-the-game investors from FOMOing into an asset that has already risen so much, but Tezos has continued to rally, leaving cautious traders filled with regret. Doubling Cryptocurrency Prices Send Investors into XTZ That regret will only grow if Tezos does as one analyst believes and extends its “parabola” to as much as $6.30 per XTZ token. The current high is set at $3.70, so reaching such a target would mean that Tezos price doubles from current levels. $XTZ short term parabola. Extension to ~ $6.3 is expected to happen…. If you study the ETH/USD chart you'll find the patterns. After that, correction to $3.7 – $4 for re-accumulation before #moon pic.twitter.com/mOdOTbtBsc — Don Tomasso (@Tomaseetoo) February 19, 2020 Such a rally would cause yet another 100% push from here, taking year-to-date gains to over 400%. It would also take any investments made from the very bottom to as high as just under 2,000% returns in less than 16-months. Tezos has completed these amazing feats, all before the bull market has truly begun for cryptocurrencies. And because Tezos is a relative newcomer alongside other altcoins like Link, who missed out on the last crypto bubble, these shiny new altcoins have less tarnish and negativity to break free from. The assets also don’t have support levels turned resistance to contend with, and instead are in price discovery mode. Related Reading | Tezos & Ethereum: These Top Performing Altcoins Flash Dangerous Sell Signals This means that any peaks are just psychological barriers while a true value is established by the way of the push and pull of market dynamics. This is the exact reason why Tezos could easily double from here, and reach prices of $6.3 in the coming days – because no one knows truly what Tezos should be worth, so the speculative asset is likely to explode further until a strong psychological resistance is reached. When assets perform like Tezos, sky is the limit. But remember, just like Bitcoin at the last bull market peak: everything that goes up that fast, eventually falls back down quite hard. And with how much Tezos has rallied, while it can certainly go a lot higher, when it does turn around, much of the gains could be erased.
As the Bitcoin and the rest of the crypto asset class enter the early phase of a new bull market, investors and analysts are hard at work developing a plan to capitalize on the possibly life-changing uptrend in the days ahead. But could the key to successfully generating riches from the next crypto bull market as a simple mathematical sequence that’s been used for centuries? Bitcoin and Altcoins Enter Buy the Dip Season, and New Bull Market Bitcoin and altcoins have recently broken out from two-year downtrends, causing an incredible surge to kick off the start of a new year in 2020. The massive, rocket-like gains have caused many analysts to conclude that the bear market is over, and a new bull market is beginning. Related Reading | Analyst: Crypto Market Pullback Imminent But May Not Occur For Months During the last Bitcoin bull market, prices went from an absolute low of roughly $165 to as high as just under $20,000 at the peak of the crypto bubble, representing a staggering and unheard of 12,000% returns to traders who happened to buy the bottom. But along the way up, there were many pullbacks for “dip buyers” to build long positions and earn even more money during the parabolic climb. During bull markets, crypto traders look to “buy the dip” after each major pullbacks and ride the rally further to the next resistance point, before starting the process all over again. There appears to be, just like the internet is always claiming, one simple trick to maximize profit potential during the next crypto bull run: the 0.618 Fibonacci level. Throughout Bitcoin’s past bull markets, nearly ever single dip was bought back up the moment it touched the 0.618 Fib level. From the very first rally out from the bottom, all the way to the top at $20,000, only two out of a dozen or so pullbacks were bought up at 0.5 instead of 0.618. But more often than not, during a bull market, the dip is ferociously bought back up at 0.618. Get Rich Quick: Watch for 0.618 Fib Level to Buy the Dip in Crypto The Fibonacci level in and of itself is incredibly powerful and could be an early confirmation that a new crypto bull market is indeed beginning. After Bitcoin topped out in June 2019 at $14,000, it fell all the way back to the – you guessed it – 0.618 Fibonacci level where the asset was bought up quickly by investors. The asset has already risen over 40% from the lows set at that level. The same 0.618 level was even effective dating back to 2012. And during the 2018 bear market, the strategy worked in reverse, where each next subsequent top reached the 0.618 fib level before falling back down further. Fibonacci numbers are a sequence of numbers where each number is the sum of the two previous numbers, starting at 0 and 1. This sequence of numbers is found everywhere in nature, from petals of a flower to the sharp, cold edges of a snowflake. In crypto trading, they are used to discover support and resistance levels based on human emotion and behavioral patterns. Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun Because they are so commonly found everywhere in the world, there’s no denying that their existence within crypto price charts has significant importance. However, they could also hold the key to unlocking incredible riches during the next crypto bull market.
The crypto market experienced a short and minor correction this past week but appears to be ready to keep chugging right along, with no end to the momentum in sight. In fact, one cryptocurrency analyst says that while there’s no denying that a correction is imminent, it may not happen for weeks to months, as Bitcoin and the rest of its altcoin cousins are ready to charge forward into a new bull market. Bull Market is Back: Total Crypto Market Grows By Nearly 75% Year-to-Date The total aggregate cryptocurrency market cap has added over $125 billion in value since the start of the year and is up nearly 75% year-to-date. After such a powerful move upward in less than two short month’s time, a correction is expected and already overdue. Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun And while a short-lived correction played out over the last 48 hours, it failed to set the crypto market back more than 10%. That correction already may be over, as the total crypto market has already started moving upward once again towards setting new yearly local highs. A deeper correction may still be a ways off, and according to one crypto analyst, may even take weeks or months before a deeper retracement hits the greater crypto market. #Bitcoin 1 Week Chart since May 2015.A pull-back may be imminent, but this does not mean it can't occur weeks or a couple months from now. #BTC $BTC pic.twitter.com/1AEZSOCPSe — CryptoCompetent ₿ ➐ (@CryptoCompetent) February 18, 2020 Bitcoin and the rest of the crypto market, including altcoins like Ethereum, XRP, Tezos, Link, and many others, simply have too much momentum behind them. And after two full years of a bear market, they have over 90% drawdowns in many cases to recapture, so there’s still plenty of room to fly. Bitcoin and Altcoins Have Further to Climb Before Real Correction, According to Signals Further supporting more uptrend before a deeper correction occurs, is an uptrend channel that has thus far held up. Even the latest correction couldn’t close outside of the channel, despite a long wick through it. When zooming out and viewing technical analysis across the daily timeframe, the current angle of the uptrend exactly matches the angle of the previous uptrend that took Bitcoin to $14,000. The previous uptrend had 5 impulse waves up, followed by an ABC correction. The current trend appears to only be on the fourth impulse wave, leaving one more extremely powerful impulse upward before another ABC correction ensues. A similar formation has also appeared on the Relative Strength Index, and if the pattern repeats, a surge is expected to a new high in price, but a lower high in the indicator – creating what’s known as a bearish divergence. The MACD is currently pointed down and crossed down on the histogram, but appears to be starting a turn upward for one more push higher. Counter-Point | Crypto Market Crash: This Technical Structure Puts End to Uptrend Finally, stochastic is showing that a trendline from the bottom of when the uptrend channel formed is still intact. All these signs combined, point to further upside in the days, weeks, and possibly months ahead before a deeper drop causes a strong retracement. Featured image from Shutterstock
The native cryptocurrency asset to the Ripple protocol, XRP, may be poised for major upside against Bitcoin if a multi-month bull signal triggers an explosive move. The surge in XRP could be the spark that ignites another major alt season that has been brewing over the course of the bear market, leading to astronomical gains not seen since the crypto bubble popped. XRP Shows Clear Reversal Against Dollar, Supported By High Volume Breakout XRP has now broken out from an over 680-day downtrend and bear market, causing the asset to surge by as much as 90% since the start of the year before a pullback erased a small portion of the 2020 rally. But the rally is only just getting started. After two years of a bear market to break free from, buy pressure and bullish momentum has been built up and is just waiting to escape to go on an insane run not seen since before the crypto bubble. Related Reading | Ready For Liftoff: Two-Year Downtrend Breakout Could Lead to $14 XRP The breakout is a clear as day reversal according to a top crypto analyst, and points to surging volume and a backtest of resistance confirming as support as factors that will push XRP much higher in the coming weeks. With a retest of the trend line breakout now behind us, the analyst is confident that anyone who entered below 32 cents will be happy with their entry for the long-term. Clear reversal for $XRP, complete with strong volume and breakout + backtest. Both HOLDLers & traders alike will likely be happy with an entry in this current range of .26-.32c. pic.twitter.com/iG2XnULLhk — Parabolic Thies (@KingThies) February 17, 2020 Ripple Shows Signs of Major Rally Against Bitcoin, Sparking An Alt Season XRP is also looking extremely bullish on BTC trading pairs, and a bullish divergence only monthly timeframes that extend across most of 2019 into 2020 could be signaling a massively powerful move in the days ahead. The analyst says that “something is brewing in the alt markets” and that very well may end up being an alt season that will shock the world with the enormous wealth that’s generated in a short amount of time. I’m sure there’s plenty others in the alt market in similar spots right now, but this slight Bull Div on the #XRPBTC monthly is impressive to say the least. Something is brewing in the alt markets. pic.twitter.com/cpN9icKy5w — Parabolic Thies (@KingThies) February 18, 2020 If the bull div confirms, it could cause the number three cryptocurrency by market cap to explode against Bitcoin on the XRP/BTC pair. In the past, when such a breakout occurred, XRP rose nearly 2,000% against Bitcoin. The last time this happened, it followed an ABC correction according to Elliott Wave Theory. The latest downtrend appears to have also just completed an ABC correction, and a repeat of the 2017 crypto bubble could follow next with an explosive, nearly 2,000% movement in the days ahead. Should this happen, XRP would likely reach a new all-time high, or at least come close to retesting its previous all-time high set at over $3 per XRP token. Upside targets beyond the previous all-time high reach as high as $14 per token. Featured image from Shutterstock
Bitcoin price may be trading at the lowest level its done so over the last two weeks, but the recent rally and 2020 uptrend is far from over, according to a top crypto industry analyst. A clear lack of volume and reversal candle suggests that the uptrend will resume after a short-lived correction, and eventually trend higher and set a new yearly high. Analyst: No Volume on Current Bitcoin Top, Reversal Unlikely Following another six months of downtrend starting in mid-2019, Bitcoin price escaped from the clutches of bearish traders and went on a powerful bull run beginning on around December 17, 2019. Since then, the asset and the rest of the altcoins across the crypto market have been on a steady upward trajectory, and up until recently showed no signs of slowing down. But the latest correction is nothing but a little bump in the road, according to one respected crypto analyst, who believes the Bitcoin. uptrend will resume very soon. $BTC #Bitcoin a general chart principle is that the most volume will come at the top and bottom. So if this is a local top, where is the volume? pic.twitter.com/vfm7uzopD7 — Big Cheds (@BigCheds) February 17, 2020 When powerful trends reverse, there is typically a surge in volume showing extreme interest from buyers or sellers when a key level is reached. A real reversal from the current uptrend would require a high timeframe swing pattern failure indicated by a large wick, and a surge in volume at a resistance level showing sellers taking advantage of a ripe opportunity to sell at the highest prices possible. Crypto Uptrend to Resume for Foreseeable Future Bitcoin price holding support at current levels keeps the cryptocurrency within an uptrend channel that’s been holding strong since the start of the calendar year. Related Reading | Bitcoin To Explode To $18,000 Ahead Of Halving, As Probability Of New ATH Grows The current high of the 2020 rally rests at roughly $10,500, or slightly below it on some platforms, setting a lower high while setting a higher high on daily timeframes on others. Above $10,500, Bitcoin price will need to break above resistance at $10,800, and then $11,500. Above those two levels rests $14,000 which caused a six-month downtrend after Bitcoin first revisited the resistance level following a year-long bear market. Impressed to see $BTC supertrend close bullish. According to this indicator we still are in a bullish uptrend assuming we can close the next daily candle above here. pic.twitter.com/T5MYCGKGky — Income Sharks (@IncomeSharks) February 18, 2020 After another six months of building up momentum and confidence, the first-ever cryptocurrency may finally have the strength to push through the level and head toward a retest of the former all-time high of $20,000. A breach of the level would send Bitcoin into a full-blown bull market, and one where irrational exuberance and talks of Lambos and moonshots return in a major way. Counter-Point | Crypto Market Crash: This Technical Structure Puts End to Uptrend The crypto hype will officially be back, and the emerging asset class will finally claw its way out of the negativity that the bear market created, and shine once again as the future of finance. Featured image from Shutterstock
Although the crypto market has been surging since the start of 2020, the Bitcoin and altcoins may be experiencing the early stages of the year’s first major correction. The technical structure of the recent, short-term uptrend has been broken, suggesting that further downside is due in the days ahead. However, the uptrend on higher timeframes remains strong, so any correction is likely limited and will rebound to new highs following a local low being set. Crypto Market Uptrend Technical Structure is Tarnished, But Daily Close Will Decide Fate The crypto asset class has been among the best-performing assets of the new year, across any financial market, behind only select standouts like Tesla. Bitcoin is up over 40% year-to-date, and altcoins across the board have been skyrocketing. The number two cryptocurrency by market cap Ethereum has risen over 100%, doubling in value in just a few weeks. Meanwhile, lower down the list, altcoins like Link or Tezos have been on fire, quadrupling in value in just a few short weeks into the new year. Related Reading | Bitcoin Dominance Could Cause Catastrophic Ending to Current Altcoin Season But the explosive uptrend may be coming to an end, at least in the short term, according to a break in market structure. Uptrends by definition are a series of higher lows and higher highs put in consecutively following an ultimate low being set. The uptrend is over once a high is put in, and a lower low is later set to confirm the conclusion of the bullish momentum. On daily timeframes, the total cryptocurrency market is just hours away from setting its first lower low since the uptrend began. Technically, two wicks have already touched lower lows, but no daily price candles have closed below the low set on February 10. When looking at an uptrend channel that has formed throughout the year, the total crypto market cap can still be seen trading within the channel. A wick extends out of the bottom of the channel, but again, no candle has closed to confirm the lower low and finish to the uptrend. The lack of a candle close could indicate that the total crypto market could surge higher from here, but after over 70% gains across the board, more than 10% correction is likely warranted and due in the days ahead. Danger of Deep Correction Won’t Prevent Bull Market, According to Higher Timeframe Price Action Even if a deep correction arrives, the uptrend is still safe and intact on higher timeframes such as the weekly and monthly. It is only shorter timeframes that are in jeopardy. A new lower low on weekly timeframes won’t be set until the market cap falls under $219 billion. The total crypto market value current rests at $276 billion, up from a low of $165 billion set back in late December 2019. On monthly timeframes, a new lower low won’t be set unless the market falls back below $165 billion. Such an event would suggest the long-term trend was turning back to bearish, and an extended downtrend would be almost guaranteed. Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun Such an event is extremely unlikely after two full years of a bear market and with so many signals confirming that a new bull market is forming for Bitcoin and altcoins in the months ahead.
In less than two months’ time, Bitcoin price has gone from a low of $6,400 to well over $10,000 at the recent high. The sudden surge in Bitcoin price has caused the first-ever cryptocurrency to outpace its fair market valuation, suggesting that a correction may be necessary to keep prices at bay a little while longer before a full bull market breakout occurs. Bitcoin Not Yet Ready for Moon, Says Crypto Analyst Bitcoin and the rest of the crypto market have had an incredibly bullish beginning to the new year. The leading crypto asset by market cap itself is well up over 40% year-to-date, and many top-performing altcoins such as Ethereum and Tezos have risen by well over 100%, doubling in value. Related Reading | Only Two Lines of Defense Remain Ahead of New Bitcoin All-Time High But as cryptocurrency valuations once again soar, they’ve already reached a level that is beyond their fair market prices, according to one cryptocurrency analyst. In the trader’s detailed, long-term analysis of the Bitcoin market over the last decade, a comparison between the previous bear into bull market transition is made against the current market cycle. According to the historical data, the last cycle from 2014 through 2017 consolidated for roughly 1,246 days before breaking above its former all-time high. The analyst expects Bitcoin to take just 1,120 days this time around, but the asset is currently overheated in terms of price. #Bitcoin fair value analysis We are not ready for moon, yet pic.twitter.com/Ei90nz0hrh — //Bitcoin 𝕵ack (@BTC_JackSparrow) February 17, 2020 BTC Severely Overvalued According to Bear and Bull Cycle Length However, during the current cycle, Bitcoin has risen above the 0.5 Fibonacci level on more than one occasion. In the last cycle, Bitcoin spent much of the bear cycle below this level. The analyst believes that this suggests that Bitcoin price is beyond its fair market valuation, and spending more time below the 0.5 Fibonacci level would be “healthy” for future growth across the crypto market. The trader’s chart also reveals the analyst’s expectations of a retest of the asset’s former all-time high at $20,000 toward the back end of 2020. In the past, Bitcoin has topped out in December 2017, then bottomed in December 2018. In 2019, Bitcoin found yet another bottom to its shorter, six-month downtrend in December, and the analysis would point to a retest of all-time high this coming December. Related Reading | Historic Bitcoin Cycle Suggests No New All-Time High Until 2021 By the time December 2021 rolls around, the next significant achievement in Bitcoin could be a new all-time high and new bull market peak. But it’s all predicated on Bitcoin breaking above the former all-time high this year, or in early 2021. Once the former all-time high is breached, extreme FOMO is expected that could cause Bitcoin to go parabolic once again, and reach valuations of $100,000 or higher as many are predicting the price per BTC to eventually achieve. Featured image from Shutterstock
The talk of the crypto industry over the last few weeks has been focused on the massive gains from many altcoins across the top ten cryptocurrencies by market cap, however, few assets were buzzing as much as Ethereum and Tezos. The two altcoins are up well over 100% year-to-date, however, both have just flashed a very dangerous sell signal that could cause a steep correction and these two top performing crypto assets to retrace much of their recent parabolic bull rallies. Are These Top Performing Altcoins Part of a Greater Crypto Correction? The number two cryptocurrency by market cap, Ethereum, and relative newcomer to the crypto market top ten, Tezos, have had an explosive first two months of the new calendar year. Ethereum was up well over 125% year-to-date from trough to peak before the recent correction took the second-largest cryptocurrency down a few notches. Meanwhile, during January and February, Tezos had already quadrupled in value, with over 200% returns from the 2020 low to the recent high. Related Reading | Top Trader: Tezos Cryptocurrency Can Surge 5-10x After 100% Rally in 2 Weeks The two assets appeared to be unstoppable or at least had been showing little signs of slowing down their bullish momentum. But that was until a wider crypto market correction began to cause these parabolic assets to retrace, and could soon be headed much lower. Ethereum and Tezos Flash Sell on TD 9 Sequential Indicator Analysts are conflicted if the rally is over or not, but a sell signal from the TD 9 sequential indicator across both crypto assets on their trading pairs against BTC, suggest that further upside will be limited until a deeper correction occurs. Both ETH/BTC and XTZ/BTC have given a sell signal on the ninth candle in a previously bullish sequence. The TD Sequential Indicator was designed by financial market wizard Thomas DeMark and is used to signal a buy or sell in assets depending on if a series or sequence of candlesticks close in a certain manner. Following at least 9 consecutive days of a steady uptrend, these strong performing altcoins have reached a 9 on the TD Sequential Indicator, suggesting now is an ideal time to sell the asset in anticipation of retracement ahead. In the past, the TD 9 Indicator has been used to spot Bitcoin’s top at $20,000 and then the bottom at $3,100 and $6,400 three Decembers in a row. Related Reading | What’s Really Triggering This Epic Ethereum Rally? 3 Key Factors Behind Upsurge Given the tool’s accuracy and the indicator’s creator reputation for market timing, the probability that Ethereum and Tezos recent rallies having finished remain high. Retracing from here would likely take Ethereum back to the low $200 range, and Tezos back under a more reasonable $2 per XTZ token. Featured image from Shutterstock
Bitcoin has already had an explosive start to 2020, but the rocket ship is only just getting started with the cryptocurrency’s halving just “around the corner.” According to historical data, Bitcoin could rise to as high as $18,000 ahead of the halving, and with the probability of a new all-time high rising by the month, any post-halving correction could be the last drop before a new record is set. Bitcoin to Skyrocket by 80% Ahead of Halving? Bitcoin’s recent rally is in part fueled by the hype surrounding the asset’s upcoming halving this May. It’s even caused a surge in Google search queries on the topic. When the halving rolls around, the block reward miners receive for powering the network is slashed in half, causing the cost of production of each BTC to double overnight. Related Reading | Historic Bitcoin Cycle Suggests No New All-Time High Until 2021 The theory is that this causes miners to sell less Bitcoin into the market until valuations improve. The less supply flooding the market causes an imbalance of supply and demand that further causes prices to spike. With Bitcoin already having an extremely scare supply, and is being held by investors for the long term with the expectation of prices over $100,000 in the future, demand is already increasing and causing valuations to grow. Bitcoin is already up by over 40% year to date and is trading above $10,000 for the first time since August 2019. But according to previous halving data, Bitcoin has in the past risen by another 80% from the current timeframe to the halving. This would take Bitcoin to as high as $18,000, then a 40% correction back to $10,800 before a new all-time high is set. #Bitcoin's halving is right around the corner!!! Great time to take a look at what happened in the months immediatley preceding & following the last #halving. In 2016 $BTC appreciated +81% three months before it halved. A 40% correction followed and then we mooned. pic.twitter.com/yL5C6JlNR4 — Financial Survivalism (@Sawcruhteez) February 14, 2020 Probability Grows For New All-Time High By Summer Through September The probability of Bitcoin setting a new all-time high this year has been growing. According to data from Skew, via Arcane Research, the probability of Bitcoin setting a new all-time high by June is as high as 6%. The same data shows that probability rising to 10% by the time September rolls around. The timing lines up with previous halving price action. Following a new 2020 high set at $18,000 ahead of the halving in May followed by a fast but deep correction that would swiftly be bought up by June, could rebound straight into a new high over the Summer and into September. Related Reading | Data Shows Bitcoin’s Progression From Retail To Institutional Asset Taking Bitcoin above its past all-time high would likely cause a ripple effect, causing many more investors to FOMO into the asset before prices go parabolic once again. Featured image from Shutterstock
XRP, the native crypto token of the Ripple protocol, was one of the worst-performing altcoins of the last year due to a powerful bear trend the asset just couldn’t break free from. But that 680-day bear trend was just broken, suggesting that a ripple-effect could trigger an epic recovery rally in XRP in the days ahead. XRP Breaks Out of 680-Day Bear Trend, Claims 200-Day EMA Few altcoins have suffered as badly as XRP. After an over 90% drawdown from all-time high prices, the cryptocurrency was stuck in a long, arduous downtrend. At each glimmer of hope and recovery, the altcoin’s price was swatted back down by a combination of bearish investors and Ripple executives dumping on the market to fund operations. Related Reading | Huge XRP Rally Triggers Key Indicator to Light Up For First Time in a Year The cryptocurrency token has fallen from prices of well over $3.50 to as low as 17 cents per token at its December 2019 low. From that low, however, XRPis already up a total of 93%. Year-to-date, Ripple is already up well over 80%. In February alone, XRP has increased by over 40%. But with such explosive gains already ready for traders to book, could the rally really go much further? Ripple Breakout Could Take Prices to New All-Time High A breakout from a 680-day bear trend could provide the fuel to take XRP prices much higher. The breakout of the bearish trend also is accompanied by a breach of the 200-day exponential moving average. The number three cryptocurrency by market cap is also above the cloud or “Kumo” on the Ichimoku indicator – an indicator designed to provide a full “at-a-glance” look at an asset’s health. $XRP 680-day bear trend over – above 200-day EMA– above bear PF– above Cloud pic.twitter.com/C47ndnVcCP — Josh Olszewicz (@CarpeNoctom) February 14, 2020 As for how far XRP could fly, its anyone’s guess. However, past data shows that XRP could rally as much as 6,000% in the coming months, and reach prices of as much as $14 per token if a similar move occurs. After the last major downtrend breakout, Ripple rallied from just pennies to well over $3.50 at the crypto bubble peak in early 2018. The powerful move shocked investors and got the world talking about the cryptocurrency. Related Reading | Ready For Liftoff: Two-Year Downtrend Breakout Could Lead to $14 XRP Since then, XRP was one of the worst-performing crypto assets two years running. But those woes could all soon reverse, and Ripple could recover much of the value it lost on the way down, in very little time, if the asset behaves as it has in the past. With so much pressure built up below resistance, a further breakout in XRP could cause the asset to skyrocket. And at that point, extreme FOMO will kick in and carry prices even further – potentially to a new all-time high of $14 in the months ahead. Featured image from Shutterstock
Tezos is the cryptocurrency that has the entire market buzzing, after an astounding 190% rally took the price of the altcoin to a new high. Despite such massive gains already this year, a top crypto trader claims that Tezos could still pull another 5 to 10x in the future as the hype around the STO market builds. XTZ Keeps Soaring, But Can Still Do Another 5 to 10x From Here Since the start of February alone, Tezos is up over 115%. Since the start of the year, the crypto asset is up over 175% year to date. From the asset’s October 2019 bottom, Tezos has gained a massive 390%. And from the altcoin’s December 2018 bottom, it is up well over a staggering 1,000% ROI for investors who sniped the lowest possible low. Related Reading | This Top 10 Cryptocurrency is Surging 24%, And It’s Showing No Signs of Stopping From a numbers perspective alone, it is easy to see why Tezos has the entire crypto market buzzing. Valuations across the speculative asset class are driven almost entirely by hype, and few have the hype surrounding them that Tezos does. It’s helped propel Tezos into the top ten cryptocurrencies by market cap, and the asset is showing little signs of slowing down its epic rally. In fact, the rally can continue, according to one top cryptocurrency trader. According to the analyst, the trillions of dollars that may enter the market through an STO boom could help drive the price of Tezos as much as five to ten times higher than current prices. Looks like Tezos is positioning itself to capture the entire STO market. If that's the case, it will be to STO's what #Ethereum is to ICO's. It "can" go another 5-10x in this bull market. #Ethereum exploded in a similar fashion. — Satoshi Flipper (@SatoshiFlipper) February 14, 2020 Security Token Offering Could Do for Tezos What ICOs Did for Ethereum STO stands for Security Token Offering, and Tezos is a platform designed to launch such tokens, much like Ethereum was used for ICOs during the 2017 crypto bubble. While the ICO market brought in billions into the crypto space, STOs are expected to attract trillions. The theory is that if Ethereum was able to balloon to prices of as much as $1,400 per ETH token due to the ICO boom, then a similar STO boom could take Tezos to similar heights. Tezos is currently trading at roughly $3.50 per XTZ token. At its bear market low, the asset was trading at prices around just 30 cents on the dollar. Related Reading | Tezos Cryptocurrency Up Over 130% Year to Date, Analyst Warns Not to FOMO 2019 closed at just over a $1 per XTZ token, and now the asset is already up 3 times that to over $3.50. The number ten cryptocurrency by market cap is now in price discovery mode, searching for its next point of psychological resistance before any pullbacks are expected. And before a deep pullback occurs, the analyst expects another five to ten times more ROI from the soaring altcoin. Featured image from Shutterstock
It’s Valentine’s Day and crypto investors are currently sitting on early 2020 profits from Bitcoin and altcoins. Love is in the air and money is filling pockets across the market. This means that crypto enthusiasts can spoil their special someone all the more this holiday. Whether it’s boxes of chocolates bought with crypto profits or a pair of Bitcoin wallets, we’ve compiled the very best ways to celebrate the day dedicated to love. Celebrating Valentine’s Day as a Crypto Enthusiast It’s Valentine’s Day, and all across the crypto market investors will have to pull themselves away from price charts and watching gains pile up to pay extra special attention to their significant others. Related Reading | Meet Bitcoin Market’s Most Accurate Technical Indicator: Lamborghini Crypto enthusiasts have a number of ways to bring their favorite asset class and hobby into the forefront of the celebration. Warm Their Hard with the Gift of Cold Storage In terms of gifts, Ledger is offering a deal on their Nano X crypto hardware wallet where anyone who purchases the company’s flagship product, they get a free Nano S for a loved one to have as well. Show your significant other they’re really special by sticking with the S yourself and offering up the X to them. It could earn you some X-rated fun later in the evening. Be Mine, Bitcoin For those looking for something cheaper, but still thoughtful and crypto-related, ShapeShift has produced a number of adorable crypto-focused Valentine’s Day cards you send to others. Phrases include making my heart Ripple, or how like Bitcoin love has no borders. Crypto analysts claim that women won’t want the gift of crypto itself, however, after explaining that Bitcoin could be worth $100K in the future should be enough to score you all the relationship points you could ask for. Especially if the price predictions do come true someday – and give your love story a fairy tale ending where you all live happily ever after. Valentine’s Advice:Please don’t buy any cryptocurrencies for your girlfriend or wife. There are only a tiny percentage of women that would appreciate that. Always remember, something is better than nothing. If you forgot everything, just write a note on a piece of paper — Jacob Canfield (@JacobCanfield) February 14, 2020 Cash Out Profits For the Perfect Date Night But if they really won’t like anything crypto-related, investors should be up anywhere from between 40% and 400% this year, depending on if you bought Bitcoin or something like Tezos at the start of the year. Investors who are up in profit can take a little off the table, and take their loved ones out to dinner at the restaurant’s most romantic table. Related Reading | Research Shows That Holidays Cause FOMO Fireworks in Bitcoin Price Charts Just beware that the color most associated with the holiday is the color red: a sight crypto investors do not want to see on what should be a happy day full of love. Featured image from Shutterstock
As Bitcoin matures, a wider range of investors begins to consider the asset as an investment to add to their portfolios. New data shows exactly how Bitcoin is stepping out of the shadows of niche communities and has entered into the mainstream, attracting not only retail investors but a steady amount of institutional investors as well. Crypto Emerges From Dark Web and Niche Community Shadows Bitcoin is a unique asset unlike anything else that’s ever existed on the planet before it. It’s not just a financial asset, but a technology that’s being adopted much like the internet, TV, and even the refrigerator. Related Reading | 50% of Population To Use Bitcoin By 2043 If Crypto Follows Internet Adoption It’s helped the asset’s value grow at a rate that’s unheard of in other financial markets, and according to logarithmic growth curves, stock-to-flow models, and power-law corridors, that value is showing no signs at stopping and is expected to increase exponentially. In the early days of Bitcoin, early adopters were cypherpunks, developers, and evangelists enamored by the potential of the young, disruptive technology. Following the earliest adopters, small niche communities were created on internet forums like BitcoinTalk or Reddit. Others learned of the cryptocurrency by the way of the dark web, using it to buy drugs or weapons online. But over time, Bitcoin has increasingly stepped out from the shadows and into the mainstream public eye. And while it’s still demonized by government regulators for its illicit uses, there’s no denying the recent narrative surrounding Bitcoin has begun to elevate it in investor’s eyes. Bitcoin Is Now on the Radar of Retail and Institutional Investors Bitcoin is now among the best-performing assets in 2020 thus far and has shown additional value as a safe haven asset in the face of growing global economic turmoil, making it more attractive to institutional investors seeking a place to hedge their capital as traditional markets top out. The switch from a retail dominated asset to an institutional one can be seen in the shift away from niche communities. In a recent study by crypto data platform ChartStar that looked at Bitcoin-related comments trends on Reddit, there’s a clearly defined divergence between Bitcoin price and comments related to the cryptocurrency. The niche developer and enthusiast communities are suddenly less active, while Bitcoin price continues to spike. Speculation points to the divergence in price and community activity being a result of non-vocal institutional investors buying into the asset at low prices, in anticipation of a new bull market. Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun While retail investors have been burned by crypto over the last two years, institutional are just now getting in by the way of Bakkt and other platforms catering to the investors set. As this continues, Bitcoin will only further become an asset for all people and move away from out of the shadows of niche communities and dark web markets.
Overnight last night, the price of XRP flash crashed as low as 13 cents on the popular margin trading platform BitMEX. Widespread complaints made waves across the crypto community, as traders who were long XRP on the exchange were liquidated, losing their funds. But there are always two sides to every trade, and those who were prepared were able to double their money in a matter of seconds. XRP Flash Crashes to 13 Cents on Margin Trading Platform BitMEX Volatility has returned to the crypto market in a big way, with Bitcoin and many individual altcoins going on massive, parabolic rallies. The rallies across the crypto market have reached returns of over 50% year to date or higher, and in some cases, altcoins are up over 400%. Related Reading | Ready For Liftoff: Two-Year Downtrend Breakout Could Lead to $14 XRP But volatility can make trading difficult, especially on trading platforms that offer leverage. Leverage allows traders to “gear” their trades using borrowed funds, allowing them to take positions much larger than what their capital would normally allow for. This leads to even larger returns on any successful trades, but also can multiply risk by the same extreme factor, which could lead to liquidations if stops aren’t triggered and the asset price moves in the other direction. This is exactly what happened last night when the price of XRP flash crashed to from 32 cents to just 13 cents in a matter of seconds on BitMEX. Traders across the crypto space were liquidated as the powerful move skipped right over stops, or, because the move was so powerful, stops weren’t triggered until nearly entire accounts were wiped out. But as crypto traders caught up in the volatility complain about their losses, their tragedy is another trader’s trade of a lifetime. Some lucky trader just made 100% on ripple in mere seconds pic.twitter.com/6Ofxzb7Dzk — Bran (@CryptoBran_) February 13, 2020 There are always two sides to every trade, a buy, and a sell order. Just as those lost substantial funds during the XRP flash crash, those that happened to have orders ready and waiting at low prices, were able to double their money in a matter of seconds. As the XRP price wick reached the extreme lows, it would have not just triggered stop losses of long positions, but would also trigger the limit orders of those waiting for lower prices to buy in. Can You Prepare to Profit from Crypto Flash Crashes? In the past, other assets have flash crashed, with among the most memorable being Ethereum flash crashing to ten cents on GDAX in 2017. During the extreme move, traders were able to buy the altcoin at just pennies. Certain failsafes are often put into place to prevent such issues, and oftentimes exchanges will refund users who were caught up in especially violent flash crashes. The situation is a stark reminder to never risk more than you can afford to lose on any crypto trade, as the market can always take an unexpected and powerful turn. Related Reading | Industry’s Most Powerful Man: Only 1 in 1000 Own Crypto The other advice to take from this situation is to keep a small amount of capital ready with ultra-low limit orders just in case a flash crash strikes and you get lucky. You could potentially find yourself making the XRP trade of a lifetime.