Bitcoin Fundamental Expert: “Clarity” Comes After “Rocky” Election Ends

An expert in Bitcoin fundamental analysis claims that although the cryptocurrency is bullish currently, things could get “rocky” until after the US Presidential Election concludes.

But as soon as the winner is chosen,  the “clarity” combined with the asset’s halving has in the past provides “solid” foundation for each new bull run to begin.

Bitcoin Halving In The Past, Fundamentals Build On Bullish Base

Bitcoin’s halving is now months behind us, and its time for the stock-to-flow model to prove itself, or fall victim to lengthening cycle theories.

Thus far, although there’s only been a small sample size to go by, each halving has resulted in a new uptrend. Each Bitcoin halving takes place roughly every four years, reducing the block reward miners receive in BTC, therefore lowering the supply entering the market.

Related Reading | Bitcoin Weekly Momentum Flips Bearish For The First Time Since April

Various tools developed by Bitcoin fundemental expert Charles Edwards indicate that the cryptocurrency is gearing up for another incredible uptrend. His tools, such as the hash ribbons, have provided investors with some of the most profitable buy signals in the asset’s history.

Edwards has turned several crucial network health metrics into technical analysis indicators. In Edwards’ latest chart, although he’s spared the use of those tools, he’s pointing out that although the crypto asset is indeed bullish, the road ahead for the next few months could be “rocky.”

bitcoin btcusd presidential election risk

BTCUSD Daily Presidential Election Final Stretch "Rocky" Price Action | Souce: TradingView

Crypto Bull Run “Clarity” To Arrive Post Presidential Election

According to Edwards, it is the upcoming United States Presidential election that’s to blame for Bitcoin’s rocky stretch ahead.

Past crypto market cycles show that the leading asset by market grows its bullish momentum leading up to the election, then breaks out into “solid” performance afterward.

Related Reading | Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

After the election-related uncertainty and risk is removed from markets, the cryptocurrency rises to a new all-time high. Because Bitcoin has only a short, just over a decade long price history, the sample size for this to occur is small.

But so is the halving. Both the halving, and a Presidential election arrives every four years, and we’ll soon find “clarity” on if history will repeat again, or if because of how pivotal and polarizing this election is, if this time truly is different for Bitcoin.

Featured image from DepositPhotos, Charts from TradingView

Chainlink Correction “Healthy,” But Losing $8 Could Turn Holders Into “Submarines”

No cryptocurrency has outperformed Chainlink over the last two years of the bear market. But like everything that goes up with such powerful momentum, the way back down is almost nearly as strong.

In what feels like a flash, Chainlink has already lost a full 60% from the 2020 high at $20 to the recent local low. Thus far, the correction has been “healthy” according to one crypto analyst, but if support is lost at $8, so-called Link Marines will be turned into “submarines” with their holdings underwater.

Why Chainlink Investors Could Find Themselves Underwater, Claims Analyst

Chainlink shocked all crypto market participants this year with its astronomical rise out of Black Thursday lows.

During the mid-March madness, the token fell in value to nearly zero on some cryptocurrency exchanges, and anyone who caught that random spike down made themselves a small fortune.

In fact, anyone who bought even the normal lows that day sans any flash crash would have turned roughly $2 into $20 for each LINK token held.

After just a few short weeks, the asset set a new all-time high and went into full price discovery mode. The FOMO and parabola took Chainlink to a high of $20 before profit-taking took over.

Related Reading | Chainlink Monthly Finish Flashes Grand Finale Sell Signals

Crypto whales had warned the FOMO would eventually fizzle out, and it did. In just over a month, Chainlink has fallen and fallen hard. The once unstoppable cryptocurrency has now had a steep, yet “healthy” correction, according to one crypto analyst.

The fall to support is likely to hold strong here, the analyst claims, or else “Link Marines” – the token’s most vocal supporters – will become “submarines” in reference to their positions being underwater.

chainlink linkusd

LINKUSD Daily Support At $8 Turns Link Marines Into Submarines | Source: TradingView

Correction Remains Healthy Above $8, Investors Should Focus On Long-Term Value

So long as support at $8 holds, a correction after such an intense parabolic rise is likely to remain healthy. But if Bitcoin and other past parabolic crypto assets are anything to go by, an 80% or more decline isn’t off the table, statistics show.

But the Link Marines are a bullish bunch, and few crypto assets have had the momentum behind it that Chainlink has.

Related Reading | Chainlink Cryptocurrency Recognized By World Economic Forum As 2020 Technology Pioneer

At least a short-term reversal back to higher prices appears to be in the cards, with Chainlink forming a falling wedge reversal pattern on daily timeframes.

Coinciding with the bullish chart continuation pattern, there’s also a falling wedge on the Relative Strength Index as well. The RSI is also at a point where Chainlink is nearly as oversold as it was on Black Thursday, yet with nowhere near the same market conditions.

All of these signals point to at least some relief in Link Marines’ future before there’s any risk of falling underwater like the analyst claims.

How Bitcoin’s 2020 High Compares To Past Bull Market “Tops”

Bitcoin price suffered a powerful correction from the 2020 high of $12,400, taking the crypto asset back below $10,000 briefly. After a short-lived dead-cat bounce to $11,200, Bitcoin price is back once again at $10,500 and trying to hold.

Although the correction has been steep, the selloff closely resembles the last bull market’s most violent tops. And while sentiment has swiftly shifted bearish, if history repeats, buying even the scariest dips will be incredibly rewarding.

Crypto Bull Market Tops Match Current Price Action Despite Bearish Sentiment Shift

In a bull market, dips are for buying and can lead to enormous ROI. But at this stage of where Bitcoin is in its market cycle, combined with an economic environment full of uncertainty, it isn’t clear if the cryptocurrency is fully bullish, or remains in the grasps of a bear market.

Until a new all-time high is set, the market has more to thaw from the long crypto winter.

Breaking above $10,000 is one major step in the right direction for bulls, and holding seven straight retests on daily timeframes above it is the second. All that’s left is confirming the uptrend is intact by setting another new 2020 high.

But a recent severe selloff from the current high has turned sentiment bearish quickly, prompting investors to fear more downside ahead.

However, one keen-eyed crypto analyst has shared some compelling charts that suggest that the latest top, is just like past bull market tops, and the crypto asset is ready to fly higher.

BTCUSD Daily Bull Market Top Historical Chart Comparison | Source: TradingView

In the above comparison, the most recent top in Bitcoin price action closely resembles the structure that took Bitcoin out from its bear market bottom the last time around and sent the cryptocurrency toward $20,000.

Related Reading | Bitcoin Weekly Momentum Flips Bearish For The First Time Since April

The below chart shows the same current top juxtaposed next to yet another bull market “top” in Bitcoin price action. After a fall, none of these “tops” ever proved to be actual peaks, and the crypto asset kept on climbing.

BTCUSD Daily Bull Market Top Historical Chart Comparison| Source: TradingView

Route 128: The Road To Successfully Buying The Dip In Bitcoin?

It’s also important to note, that within this crypto analyst’s charts, may also be another sign to look out for that the latest “top” more closely matches that of a bull market peak.

Within each smaller photo above, Bitcoin is holding strong at the 128-day moving average. Zooming out to view the bigger picture shows just how important this unusual support line has acted during previous bullish impulses.

bitcoin btcusd ma 128

BTCUSD Daily Bull Market Support At 128-Day Moving Average | Source: TradingView

This moving average supported the cryptocurrency’s bullish continuation at each major pullback – pullbacks that closely resemble the one we just had.

Related Reading | Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

Bitcoin price is currently sitting right smack on the 128-day moving average, so we’ll soon find out if Bitcoin is indeed in a bull market, or if the crypto winter is about to get a lot colder.

Featured image from DepositPhotos, Charts from TradingView

Bitcoin Weekly Momentum Flips Bearish For The First Time Since April

With Bitcoin holding strong above $10,000, the halving in the past, and months of positive price action, it is hard to not be bullish on the first-ever cryptocurrency.

However, a momentum measuring tool has flipped bearish for the first time since April 2020 on weekly timeframes, potentially pointing to $10,000 failing to hold and a deeper correction ahead. Here’s what the technical analysis tool is saying and what has resulted from past bearish crossovers of the MACD.

What is The MACD And Why Is It Flipping Bearish Bad For Bitcoin?

The Moving Average Convergence Divergence indicator is a technical analysis tool used in Bitcoin price charting that serves a variety of functions.

The further the two moving averages diverge, the more overbought or oversold an asset is. When the two lines crossover, it can signal that momentum is turning either bullish or bearish.

In addition to the two moving averages, most MACD indicators feature a histogram to more clearly visually represent changes in momentum. The tool, while effective and extremely popular, is often regarded as a lagging indicator.

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BTCUSD Weekly MACD Turns Bearish For First Time Since April | Source: TradingView

According to the tool on BTCUSD weekly price charts, Bitcoin momentum has just flipped bearish for the first time since the last week of April, just ahead of Bitcoin’s halving.

Related Reading | Beware: Bitcoin Price Action Mimics Market Maker Model

Halving hype and buying momentum while Bitcoin price was cheap from the Black Thursday selloff helped send the asset’s price skyrocketing from there. Momentum has been so powerful, the cryptocurrency has even broken above, and thus far held several retests of $10,000.

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BTCUSD Weekly MACD Past Bearish Crossovers | Source: TradingView

Bull Trend In Jeopardy If Weekly Closes Bearish, Daily And Monthly To Follow

Because the MACD is a lagging indicator, there’s always a chance that the flip to red on the histogram is the result of the fall from $12,400 and the second, recent crash from $11,200. If that’s the case, the correction could be finished, and price and each moving average could soon turn backup.

But a turn right back up is rare and isn’t always positive. Looking back throughout the bear market when Bitcoin flipped bearish on the weekly MACD in the past, hasn’t been a sign that more bullish upside is ahead.

In fact, nearly each flip bearish has resulted in weeks of a downtrend. The only other instance where the weekly MACD flipped red temporarily before flipping back green, and that was just ahead of Bitcoin plummeting to its bear market bottom.

btcusd macd daily weekly

BTCUSD Daily and Monthly MACD Still Bullish, But Turning | Source: TradingView

Like with any indicator, signals vary across several different timeframes, and that’s further an issue for Bitcoin. On monthly timeframes, and daily timeframes, the MACD histogram is diminishing and the two moving averages are converging and looking poised for a bearish crossover.

A bear crossover across all three key timeframes could be especially bad for the crypto asset.

Related Reading | How BTC Held On Exchanges Matches Bitcoin’s Deadliest Drop Yet

The saving graces here for the cryptocurrency’s bull market is the fact that on daily and monthly timeframes, Bitcoin is still bullish, and the weekly must close for that red stain to be left behind on the asset’s price chart.

With the week almost half in the bag, the next few days are crucial for the bull trend to continue.

Uniswap UNI Token FOMO Brings Ethereum Fees To Nearly $1M An Hour

Last week, Uniswap launched its UNI token and set the crypto market ablaze with renewed interest in the DeFi project. The 400 free tokens essentially acted as a stimulus check, and as investors rushed to cash their “checks,” it brought Ethereum fees sky-high to a record nearly $1 million in a single hour.

What does this mean for Ethereum, and what does it say about the demand for Uniswap’s new DeFi coin?

UNI FOMO Drives ETH Gas Fees To Record One-Hour Highs

The DeFi trend has brought about flashbacks of the crypto hype bubble, where new projects were minted by the day and untold wealth was generated.

Two platforms central to this trend, Ethereum, which most projects are built on, and Uniswap, the platform where these tokens make their debut, have been topping charts recently.

Related Reading | Is Uniswap’s UNI Token Behind Ethereum’s 6% 24 Hour Surge?

Last week’s surprise introduction of the UNI token by liquidity pooling platform Uniswap caused Ethereum prices to surge as users bought up ETH to spend on gas fees to access the free tokens and cash them in. Those who paid the least were forced to wait up to as long as ten hours for transactions to complete, unless they forked over costly ETH fees.

UNI tokens were almost instantly worth nearly $3, and those who sold the DeFi tokens secured a stimulus check-comparative amount of free funds. Uniswap’s new coin eventually grew 150% due to the enormous interest in the token.

ethereum gas fees uniswap uni token defi

UNIUSD 150% 24 Rise Causes Ethereum Gas Fees To Skyrocket | Source: TradingView

Will Ethereum 2.0 Withstand The Next Uniswap Scenario?

Prices were surging even as those who just got their free tokens were selling them off. During the madness Ethereum also started to rally, driven by crypto investors buying ETH to fund expensive gas fees to claim their UNI tokens.

The frenzy also led to Ethereum breaking a record for the highest level of transaction fees within a single hour ever. The hourly total exceeded $900,000 according to Arcane Research.

ethereum gas fees uniswap uni token defi

The DeFi trend has put a spotlight on rising Ethereum gas fees. Users claim to have been deterred from transaction on the Ethereum blockchain as a result of the high fees.

Related Reading | Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

Others compare Ethereum to the hottest night club in town, demanding high fees in order to get in. This night club, just saw its highest hourly demand ever, totalling just under $1 million in fees in 60 minutes.

Although the demand for UNI was a perfect storm of free money, FOMO, and a flashy new token from the hottest platform around, the sudden rise in demand was enough to cost Ethereum users a small fortune.

And with the way the DeFi movement is developing, this won’t be the last time Ethereum fees break such records, unless developers can finally introduce ETH 2.0 and take the platform by the horns.

Featured image from DepositPhotos, Charts from TradingView and Glassnode

How BTC Held On Exchanges Matches Bitcoin’s Deadliest Drop Yet

Several signs indicate that Bitcoin is potentially on the brink of a new bull market, and much higher prices are ahead. However, one seemingly bullish sign that investors are preparing for mark up, is actually at the same level as just prior to the collapse to the cryptocurrency’s bottom.

Are looks this deceiving, and Bitcoin is about to take a similar plunge once again? Or is this potentially bullish signal the first real indication that the bull run is here?

Investors Move BTC Off Of Crypto Exchanges At Hastening Rates

Although Bitcoin is valuable to different people for many different reasons, chiefly, the asset’s valuation is derived from its digital scarcity.

Valuation models like the stock-to-flow method look closely at the total BTC supply in relation to where it is in the asset’s market cycle and each block reward halving. This theory suggests that as the supply is reduced, demand rises, and so do prices.

In advance of this expectation, crypto investors, particularly whales, have been moving their BTC off of exchanges and into privately owned wallets either through cold storage or on the web.

Related Reading | “Intense” Bitcoin Whale Exchange Flow Could Be Behind Weekend Crash

The crypto community has been high fives all around since this first began starting on Black Thursday, believing its a sign that more and more investors are holding for the long haul.

But, this metric measuring how much BTC is held on exchanges is currently the same exact level that led to the November 2018 plummet to Bitcoin’s bear market bottom.

If moving BTC off exchanges is a sign of a bull run beginning, then why did this level in the past trigger such a selloff?

bitcoin btcusd november 2018

Total Supply Matches Bitcoin’s Worst Drop Yet: Why This Time Is Different

According to blockchain data from glassnode, reported by Arcane Research, the total sum of BTC held on exchanges totals 2.57 million Bitcoin.

And while this is indeed a decrease of 375,000 BTC since Black Thursday, the total number matches November 2018, just as Bitcoin fell to its bear market bottom of $3,200.

btcusd bitcoin exchange november 2018

BTCUSD November 2018 Versus September 2020 Same Bitcoin Exchange Supply | Source: TradingView

Could Bitcoin be about to take a similar plunge, or is this time different? For one, the last time the crypto asset held on exchanges reached this total, it was on the way up as more and more investors moved the asset to exchanges to sell it.

This time around, the metric is coming back down, suggesting a pattern of holding behavior. Arcane Research notes that as many as 100,000 BTC has moved into the Ethereum protocol, which explains at least a quarter of the outflow.

Related Reading | Beware: Bitcoin Price Action Mimics Market Maker Model

While this very well does match up with a level that led to a histric collapse in the past, the fact the stastic is falling not climbing could indicate that investors are indeed expecting higher prices. And with less BTC sitting on exchanges ready to be sold, the fewer chances exist for weak hands to panic sell at the first sign of danger.

Featured image from DepositPhotos, Charts from TradingView and Arcane Research

Beware: Bitcoin Price Action Mimics Market Maker Model

Bitcoin price just plunged once again from over $11,000 and is currently holding around $10,500. The support level could just be a quick pitstop before the selloff continues, according to the recent price action resembling the “market maker profile sell model.”

If the cryptocurrency continues to follow the projected path this particular model predicts, Bitcoin could fall to new local lows, or worse.

Bitcoin Market Maker Sell Model: Wyckoff Distribution By Another Name

When an asset falls to attractive prices, it is accumulated by smart money investors who take a positon ahead of a large price increase. This transition from accumulation phase to mark up often results in a strong climb to a higher level, where a pause takes place before another rise.

This is exactly what happened when Bitcoin touches its current bear market bottom at $3,200 and then rocketed to $14,000 in a matter of months.

Related Reading | Bitcoin “Distribution” Could Lead To Another Arm And A Leg Down

The same sort of theory is true in inverse for Bitcoin or any other assets. According to Wyckoff distribution models – which some analysts claim matches the cryptocurrency’s recent top price action – after distribution, comes mark down, then the cycle repeats.

That type of sell model very closely matches recent Bitcoin trading action, however, another more ominous looking sell model has also surfaced that suggests new lows could be set.

btcusd bitcoin market maker

BTCUSD Daily Line Chart Market Maker Sell Model Example Zoomed In | Source: TradingView

Does The Crypto Market Mimicking This Structure Suggest New Lows Are Next?

In the market maker profile sell model, there is risk of another low, depicted in the comparison chart below. The same model from above when zoomed out matches areas of prevous interest on the asset’s daily price chart.

The next potential level, if the model continues to follow, would be around the $8,500 to $7,400 range, where Bitcoin bounced from for the record-setting October 2019 China pump.

btcusd bitcoin market maker 2

BTCUSD Daily Line Chart Market Maker Sell Model Example Zoomed Out | Source: TradingView

In the market maker sell model, it predicts a deeper drop than what Bitcoin experienced on Black Thursday, potentially back to support where the asset broke out from its bear market bottom for yet another retest.

Related Reading | Financial Advisory Group: Bitcoin Would Be 40% More Valuable Without Manipulation

If Bitcoin’s bottom holds yet again, for a third time, it could finally be considered unbreakable. During Bitcoin’s last bull market, a triple bottom acted as the grand finale before the greatest bull run ever seen.

But if the bottom doesn’t hold, there could be another box below the green that gets filled in with some price action, and that’s not what any crypto investors want to see.

Top Defi Dogs YFI, LEND, and UNI Correct Nearly 20%

Bitcoin, Ethereum, and other major crypto assets all plummeted over the last several hours, but few have dropped as hard as top DeFi tokens, YFI, LEND, and UNI.

Why have these once soaring altcoins plunged so hard and is there more downside ahead?

Yearn-Ing For The DeFi Trend To Continue After 20% Pullback

For a while there, it seemed like nothing could put a damper on the flaming hot DeFi trend. Coin after coin exploded in value as interest poured into each new DeFi project.

Some of the most successful highlights of the DeFi space in recent weeks, are Yearn.Finance (YFI), Aave (LEND), and Uniswap (UNI).

Related Reading | Yearn.Finance (YFI) Flies 15% Percent From Local Price Floor, Fractal Targets $60K+

LEND has had some of the strongest year over year performance out of any cryptocurrency, while YFI is now far more expensive than Bitcoin itself.

UNI is the newest of the bunch, but that hasn’t stopped it from first debuting as the crypto version of the stimulus check at $3 per token, then in just days more than doubled in value to a high of over $7. Now, it’s at under $5 after a more than 20% collapse across just about all DeFi tokens.

But what did these altcoins crash much harder than Bitcoin and Ethereum, and other top cryptos?

yfi lend aave yearn finance uni uniswap

LENDUSD Versus UNIUSDT Versus YFIUSD Chart Comparison | Source: TradingView

Why Have YFI, LEND, and UNI Fallen So Hard Compared To Bitcoin and Ethereum?

The crypto market – and even the greater financial market – is a sea of red today after the dollar index bounced hard. The DXY recovering has hit Bitcoin and other top crypto assets hard, even stocks, metals, and more.

The dollar’s recovery is likely investors derisking into a safe haven asset with stability to avoid any election-related volatility.

Related Reading | Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

If investors are derisking en masse and following the advice of top industry analysts, then it isn’t a surprise to see some of the newest, shiniest, and most recently hyped tokens take the brunt of the beating.

These assets are sitting in the fattest profits, just waiting to be taken from paper gains into real ROI. And the reason for Bitcoin and Ethereum holding up better is because some crypto investors prefer to move back into those top cryptos versus taking their capital out of the market and back into cash.

And with many DeFi token investors still in sizable profit, it could only just be the start of a deeper correction.

Featured image from DepositPhotos, Charts from TradingView

How The Dollar (DXY) Index Is Responsible For Today’s Bitcoin Carnage

Bitcoin price is down $800 in just over 24 hours, and elsewhere in the finance space, there is pure carnage. Gold fell below $1900, and stocks are downward spiraling. And behind it all is the dollar. But why is the Dollar Currency Index (DXY) potentially responsible for the market-wide collapse and what exactly is driving it?

Bitcoin Price Collapses $800 In Early Week Selloff, Another Test of $10,000 Next?

Bitcoin price tapped over $11,000 one last time before a deadly drop began later Saturday night and into Sunday. The drop extended deeper into the weekday trading week, with a fall to under $10,400 starting Monday morning.

Related Reading | “Intense” Bitcoin Whale Exchange Flow Could Be Behind Weekend Crash

It wasn’t just Bitcoin, Ethereum, Ripple, and even top DeFi tokens tanked in the selloff. Blockchain data shows that miners were partly responsible for driving prices down, however, the drop is really due to the dollar.

The Dollar (DXY) Index Deals Devastating Blow To Crypto, Metals, and Stocks

Although Bitcoin has dragged down the rest of the crypto market, the leading cryptocurrency by market cap is just part of a market-wide collapse.

Alongside Bitcoin’s steep breakdown, the Dow Jones Industrial Average has bled over 800 points and gold is now trading back below $1900 an ounce.

Behind it all could be the dollar. The DXY Dollar Currency Index is a weighted basket of top forex currencies trading against the dollar.

Related Reading | Bitcoin, Metals, And Equities “Will Fly” If Dollar Downtend Deepens

Bitcoin and gold are directly opposed to the dollar, both trading against it as USD pairs and due to their finite supplies. Together, these assets ebb and flow at varying degrees.

When Bitcoin is strong, the dollar is often weak and vice-versa. And that’s exactly what has been behind the crypto asset’s recent climb to over $12,000 an inverse correlation with DXY shows.

bitcoin dollar dxy comparison

Inverse BTCUSD Versus DXY Dollar Currency Index Correlation | Source: TradingView

The March Black Thursday collapse was a panic-driven flight out of assets and into the safe haven of the dollar. Since then, however, markets have been soaring and the dollar has been in decline. Stimulus efforts to save the stock market and the economy have dampened the dollar’s legacy.

According to the DXY, the dollar recently found support and formed an inverse complex head and shoulders bottom. These reversal patterns are essentially an inverse head and shoulders with an extra head.

dxy dollar inverse complex head and shoulders

Inverse Complex Head And Shoulders DXY Dollar Currency Index  Source: TradingView

Coincidentally, Bitcoin recently retested and confirmed a head and shoulders top pattern, adding to the inverse correlation theory. The cryptocurrency is currently headed back down after a throwback, while the DXY is only just now breaking through resistance.

This early break of resistance has already sent crypto, metals, and equities crashing, and the dollar’s recovery could only just be getting started.

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Falling Wedge Reversal Pattern DXY Dollar Currency Index  Source: TradingView

Zooming out, the complex bottom formation is breaking out of a falling wedge reversal pattern on daily timeframes. After the initial breakout, DXY ground down diagonal support but has since made a strong rebound.

That rebound has absolutely crushed Bitcoin, and it may only just be getting started. If investors panic once again and money moves into the safety net of the dollar, markets could be in for another Black Thursday style collapse.

“Intense” Bitcoin Whale Exchange Flow Could Be Behind Weekend Crash

Bitcoin went into the weekend on a strong note, taking out $11,000 and holding above it. But after the cryptocurrency made an attempt at $11,200 a rejection has the asset’s price back to $10,500 where its now at risk of a steeper correction.

Blockchain data shows that the weekend crash could have been driven by whales offloading their BTC. But why did the flow of “whale” funds suddenly get so “intense” and what does this say about how deep the correction goes?

Live From Saturday Night! Weekend Bitcoin Price Pump Rejected

The leading cryptocurrency by market cap appeared primed to pump all through the weekend, but halfway through came to a halt. On Saturday, Bitcoin price set a peak high of $11,180 on crypto exchange Coinbase before a sharp reversal.

The rejection from the high sent the crypto asset’s price momentum downward, breaking down through the bottom trend line support of a rising wedge chart pattern.

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BTCUSD Ascending Wedge Confirms Head and Shoulders S:R Flip | Source: TradingView

Ascending wedges are typically bearish reversal patterns. The rising and narrowing structure tricks market participants into believing an asset’s price is going up, only to later be dumped on and stop losses taken out that have accumulated on the way up.

Related Reading | Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

The combination of new sellers and buyers having stops triggered at a loss results in a more violent fall. However, there could also be something else that has added to the severity of the over $700 drop in 48 hours.

bitcoin btcusd

100+ BTC Whale Wallets Flow To Exchanges | Source: glassnode

Crypto Whales Watching Results In Intense Behavior Observed

According to glassnode data spotted by a sharp-eyed crypto analyst, the flow of BTC coming from “whales” increased rapidly ahead of the selloff.

These Bitcoin whales all have a balance of 100 BTC or more, or roughly the equivalent of a cool million as of this writing. The wallets containing this amount of Bitcoin or higher suddenly exhibited some “intense” behavior according to the analyst.

Fully transparent blockchain data also confirms that this Bitcoin was sent directly to cryptocurrency exchanges, and not just from one wallet to another.

But what’s the reason for the sudden switch? Previously, whales had been observed moving Bitcoin off of exchanges to hold for the long haul.

Related Reading | US Stock Indices Dow Jones, SPX Tank, Taking Down Bitcoin In Tandem

Recently, however, mining pools and other larger entities are back to pushing Bitcoin to exchanges, but why?

The mood is suddenly shifting in the market once again, from irrational exuberance to fear, uncertainty, and doubt. Profits have been made, and soon assets could be sold off to secure those paper gains if things start falling harder.

The US election and several other key factors hanging over markets make for a fearful future for the rest of the year. But does that mean it is time to be greedy, and those who buy the coming blood will be rewarded when its all over? Or is the blood bath about to get so bad, that not even Bitcoin is safe for what’s to come?

Featured image from DepositPhotos, Charts from TradingView and Glassnode

Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

Bitcoin price recently plunged from over $12,000 at the 2020 high to back under $10,000. But after seven straight days of retesting resistance turned support, the crypto asset is already back at $11,000 and climbing.

The bounce on weekly timeframes, just so happened to take place at a specific reading on the Relative Strength Index that throughout Bitcoin’s history has acted as bull market support. If the key level continues to hold, 2021 will be the year of the return of crypto.

Bitcoin Bear Market Could Be Over With This One Line Holding On Weekly Timeframes

Crypto analyst are torn on if Bitcoin’s bull market is here or not. Believers in the stock-to-flow model are certain that now that the halving is in the past, its off to the races and its only a matter of time before prices increase.

Others subscribe to a lengthening cycle theory, that says Bitcoin has a lot more consolidating to do, and could potentially even set new lows from here. Such a scenario would crush any renaming hope in the stock-to-flow model and could prompt an extreme selloff.

Related Reading | These Key Levels And Dates Could Invalidate Bitcoin’s Stock-To-Flow Model

But more and more signals are supporting the idea that a new bull market is beginning. This theory is also being backed up by weekly RSI support on BTCUSD price charts holding up over a reading of 55, just like the asset did during past bull runs.

bitcoin btcusd weekly rsi

BTCUSD Weekly Relative Strength Index 55 Support Holding | Source: TradingView

Relative Strength Index Measures Trend Strength, Momentum, Overbought and Oversold Conditions

The Relative Strength Index is a trend-strength and momentum measuring tool. When the tool reaches over 70 or under 30, it signals that an asset is overbought or oversold respectively.

But those aren’t the only meaningful numbers on the RSI. On weekly timeframes in BTCUSD price charts, a reading of 55 on the RSI has had significance throughout all of Bitcoin’s lifecycle.

The line acts as the differentiator between bear and bull markets, and when the top crypto asset holds above that line, it usually means a bull run is on.

Related Reading | Bitcoin Reaches 144 Weeks From All-Time High: Why This Number Matters

Bitcoin price just rebounded hard, directly from that important level on the RSI, and it could mean that the crypto asset has officially confirmed a new bull market.

If history repeats, that line should hold from here on out, no matter how nasty the correction gets. If the line gets lost, however, it could be back to the troughs of the bear market for Bitcoin and the rest of crypto.

Bakkt To The Futures: Last Year’s Hottest Bitcoin Platform Breaks All-Time

A blast from Bitcoin’s past is making a comeback, reaching a new all-time highs trading volume after abysmal launch turnout sent the cryptocurrency’s price tumbling last year.

What’s going on with Bakkt that suddenly has its Bitcoin Futures trading desk soaring in trading activity?

Bakkt The Truck Up: Remembering The Reason For Crypto’s 2019 Collapse

Last year, Bitcoin’s safe haven narrative first took shape, as the cryptocurrency began to rally alongside gold as tensions mounted between the US and China.

Little did investors know, those buying up those safe haven assets then were actually preparing for a pandemic and hyperinflation as a result of the stimulus efforts to battle it.

Related Reading | These Key Levels And Dates Could Invalidate Bitcoin’s Stock-To-Flow Model

Regardless of the outcome this year, last year’s Bitcoin rally turned out to be a dud in the end. And support at $10,000 then was ultimately lost due to the launch of the much anticipated Bakkt Future trading desk, falling on its face.

The Intercontinental Exchange owned, physically delivered Bitcoin Futures contracts platform was to be the next big thing to hit crypto, that was said to open the flood gates to institutional adoption.

Except when the platform launched, there was barely trace of activity. Bitcoin price plunged through $10,000 after weeks of trading above it, and it has taken until now to get back above.

Why Is Trading Volume Surging On The Bitcoin Futures Trading Desk?

But Bitcoin price is back above $10,000, and a year later here we are. At the same time, however, Bakkt trading volume is rising, and has even set a new all-time high of over $175 million in trading volume.

It’s not clear why there’s suddenly interest in Bitcoin on Bakkt, after a year of stagnancy. However, all growth needs to begin somewhere, and it is possible it has taken this long for institutions to get onboarded and take notice of the platform.

Related Reading | Bitcoin Crossroads Made Clear By Two Remaining Lines in The Sand

Or perhaps, it’s the recent move from hedge fund managers, and even corporations like MicroStrategy who are hedging against the coming inflation, that has inspired traders on Bakkt to place bets on Bitcoin through Futures contracts.

bitcoin bakkt futures launch date and performance

BTCUSD Bakkt Launch September 23 & Losing $10,000 Support | Source: TradingView

Interestingly, Bakkt reaching all-time high comes just after Bitcoin price retestied the exact support level, to the candle, that was lost on September 23 when Bakkt first launched.

That line, has acted as the crypto asset’s strongest resistance yet, and thus far, it has held this time as support.  If it continues to hold, Bitcoin may see a new all-time high alongside Bakkt’s surging record trading volumes.

Yearn.Finance (YFI) Flies 15% Percent From Local Price Floor, Fractal Targets $60K+

Yearn.Finance continues to defy all other DeFi tokens and gravity itself with its unstoppable rise to stardom.

The crypto token has bounced over 15% from its local bottom, but a fractal playing out could send YFI flying high to another new record.

Yearn.Finance Flips Support As Resistance, Readies Another Rally

In technical analysis, there isn’t much more significant than a support and resistance flip.

When price action passes through support and confirms it as resistance, it is a sign that the range is in the past, and the market wants to test new prices. The same is true in reverse, just like in the example below taken from a 4-hour Yearn.Finance price chart.

The ultra-rare DeFi token with a supply of just 30,000 is now far more expensive than Bitcoin, and its sent the crypto market into a tailspin.

yfiusd sr flip yearn finance

YFIUSD 4H Support and Resistance Flip | Source: TradingView

After a pullback, and follow up rally thanks to a listing on Coinbase, Yearn.Finance is back retesting the resistance level it punched through on the way back on up.

Related Reading | YFI Reclaims Support Post Coinbase Listing, New All-Time Highs In Sight

If confirmed, another similar height rise could be next. And a fractal playing out makes a rally all the more likely.

YFI Could Target New All-Time High If Fractal Follows And MACD Crossover Completes

In addition to the DeFi token holding support, Yearn.Finance is also showing similar signs as the last time support was reclaimed.

A failed reversal signal took prices lower on the 4-hour chart, followed by four bullish engulfing candles, showing signs of bulls trying to regain control.

yfiusd macd yearn finance

YFIUSD 4H Support and Resistance Flip | Source: TradingView

Eventually, they did, and YFI went flying high once again. The move up coincided with a break of downtrend resistance, and the sort of pattern is playing out once again.

Superimposing the previous rally over the same breakout would take Yearn.Finance to a peak price of $66,000 or more.

Further giving credence to a potentially bullish outcome, is a crossover to the upside nearing completion on the MACD indicator.

The MACD is a momentum measuring tool, and if the last time the indicator crossed bullish is a sign of what’s to come, another big rally in YFI is coming any day now.

Related Reading | DeFi Darlings Chainlink, Binance Coin, Yearn.Finance Plunge Over 10%

A recovery in YFI, could also help lift the rest of the falling crypto space including other DeFi darlings like Chainlink, Binance Coin, and others.

What little bullish momentum is helping to prop up these few coins, could be partially due to another DeFi token causing a stir in the crypto space. Uniswap recently debuted their UNI token, distributing it to early users for what is essentially the crypto version of a stimulus check.

Profits from UNI, could be flowing into YFI and other DeFi projects, and also could be what was behind the recent Ethereum pump.

“Unusual” BTC Miner Outflow Could Behind Today’s Bitcoin Price Collapse

Bitcoin as a cryptocurrency underpinning a blockchain network secured by miners leaves the asset’s price susceptible to sell pressure from the very parties that keep it chugging along.

It very well could be BTC miners dumping some Bitcoin for profits or to cover operating expenses that prompted the fall in the cryptocurrency’s valuation today.

Are Bitcoin Miners Behind Today’s Selloff And Fall From $11,000?

According to a bulletin from CryptoQuant Alerts Beta on Telegram – a tool used to track suspiciously large or notable inflow and outflows of BTC – miners could be behind today’s dump.

Just as prices began to struggle to maintain highs near $11,000, over $6 million in BTC may have been sent from miner to a cryptocurrency exchange where it was market sold.

Related Reading | US Stock Indices Dow Jones, SPX Tank, Taking Down Bitcoin In Tandem

The alert tool makes mention of when large sums of BTC is moved from wallet to wallet, paying closest attention to miners, “whales,” and exchanges. These largest players in the space can have a dramatic effect on the market when they move their Bitcoin.

And it could be why the crypto market dropped today.

bitcoin btcusd miners dumping

BTCUSD Daily Miner Related Profit-Taking Pullback | Source: TradingView

What Are BTC Mining Pools And Were They Behind The Dump?

The data shows that the BTC was sent – potentially to an exchange – from the Bitcoin mining pool “Poolin.”

Mining pools like Poolin “pool” hash rate together for a better success rate on unlocking block rewards. The mining firm also sells supplies such as Antminers.

Poolin also is a Bitcoin pool and mining operation itself, bolstering its own hash rate through its customers and in return, improving theirs as well. Poolin, like any company, likely has operations to fund, expenses to cover, bills to pay, and more.

Related Reading | Bullish Case For Bitcoin: Profit Taking Turns Into Buying The Blood

To cover these costs, they have to sell the asset that’s central to their operation: Bitcoin.

And when they do, it can impact the asset’s price, especially when sold in large chunks like $6 million. Orders of that magnitude can wipe out order books and drop prices like a rock when liquidity and volume is low.

Other times, it may not make a dent. Although Bitcoin has fallen, there hasn’t been a dramatic selloff like the last time miners we seen sending an unusually high amount of BTC to crypto exchanges. However, someone has to cast the first stone, and it may have been Poolin.

Featured image from DepositPhotos, Chart from TradingView

Is USDC’s Billion Dollar Growth A Sign Crypto Smart Money Is Ditching Tether?

The talk of the crypto market recently has been the sudden substantial increase of Tether printed and its potential impact on Bitcoin. But what they’ve failed to realize, is that the USDC supply has also doubled over the last two months.

Is this a sign that smart money crypto holders are slowly but surely ditching Tether for other stablecoins?

USD Coin Market Cap Doubles In Two Months, But Why?

Once upon a time in the crypto market, the only stablecoin in the space was Tether. Crypto traders swapped their Bitcoin, Ethereum, XRP, Litecoin, and other altcoins for USDT whenever volatility struck and prices collapsed.

The dollar-pegged stablecoin protected wealth from drawdowns and acted as a stable, safe haven for capital while keeping money in the crypto market.

Related Reading | How Does The Next Chapter In The Tether Printing Story Unfold For Bitcoin

But in any market, competition eventually shows up and market leaders have their throne challenged. The almighty Tether that currently nears closer to $15 billion in market cap, finally has a contender on its hands with USD Coin.

Although the Tether supply recently minted this past month eclipsed USD Coin’s entire market cap, USD Coin has been creeping up higher along the cryptocurrency top coins by market cap.

The stablecoin built by the consortium Centre, backed by Circle and Coinbase, over the last two months also doubled its market cap, rising from $1 billion to $2 billion. But what’s behind the sudden demand?

bitcoin tether usdc usdt

BTCUSD Daily Price Chart Versus Tether and USD Coin Market Cap Growth | Source: TradingView

Tether Trouble: Why Would Smart Money Be Ditching USDT For USDC Instead?

According to crypto Twitter chatter, “smart money” could be swapping out Tether in favor of USD Coin over time, in order to avoid an eventual implosion.

While USD Coin is backed by the likes of Coinbase and Circle, Tether’s parent company is the same as Bitfinex, and the two have been surrounded with controversy for the last several years of crypto market price action.

Related Reading | Financial Advisory Group: Bitcoin Would Be 40% More Valuable Without Manipulation

Tether was claimed to be at the center of widespread Bitcoin price manipulation, and it prompted an investigation by the DoJ. The parent company is regularly embroiled in legal battles, and the crypto community in the past has feared insolvency.

USD Coin on the other hand, has always been transparent and works with United States regulators. The supply is regularly audited by the seventh largest firm in the world, Grant Thornton LLP.

If stablecoins are supposed to act as a safe haven for crypto capital, then it makes sense for investors to begin moving funds out of Tether and into something more “stable” than even what a dollar-peg can provide.

US Stock Indices Dow Jones, SPX Tank, Taking Down Bitcoin In Tandem

Bitcoin has been collapsing after failing to hold $11,000, and it could be thanks to negative sentiment surrounding a tanking stock market that’s taking the crypto market down in tandem.

Here’s why things could get really bad for Bitcoin and the rest of the crypto space if major US stock indices continue to plunge.

Major US Stock Indices S&P 500, Dow Jones, Drop On Today’s Quadruple Witching

The S&P 500 is down more than 7% from local highs. The Dow Jones Industrial Average, has also lost 5% from its recent local peak high, faring slightly better than the index from Standard and Poor’s.

The stock market is dropping and dropping hard after several major stock indices set new all-time highs last month.

As soon as the month turned, however, stocks turned downward, and so did Bitcoin.

Related Reading | Bitcoin Collapse Retests Key Weekly Level Never Lost During Last Bull Run

The top crypto asset by market cap actually led the market wide dump by almost 24 hours, but the stock market followed closely behind, and now has since taken over as the primary drive behind the downside momentum.

Making matters worse for Bitcoin and the rest of crypto, is the fact that the ongoing correlation between the disruptive asset class and traditional equites has yet to be shaken off.

The correlation – if stocks see another Black Thursday style fall – could drag Bitcoin down further in tandem.

bitcoin dow spx

BTCUSD Versus SPX Versus DJI Correlation Chart Comparison | Source: TradingView

Bitcoin Could Get Dragged Back Down To Black Thursday Lows If Stocks Tumble Again

The leading cryptocurrency by market cap set a local high at $12,400 but since came crashing down. After a valiant defense by bulls at to hold strong at support below $10,000. the cryptocurrency quickly found itself trading back at $11,000.

The recent rally, however, may have been a bearish retest of support turned resistance, just in time for the stock market to take the crypto market down further.

The reason for the sudden rise in turbulence across the stock market, could be due to a spooky-sounding event called the quadruple witching.

Related Reading | Bitcoin, Metals, And Equities “Will Fly” If Dollar Downtend Deepens

This quarterly stock options and futures expiry can cause an explosion in volatility across stocks, and that could be what is prompting stocks to suddenly move lower.

If the drop gets severe in stocks, Bitcoin is at risk of another Black Thursday type drop to new lows. The added risk of the coming election, profit-taking, portfolio rebalancing, and panic from another round of the pandemic could also be to blame.

Whatever the case may be for the bearish turn, stocks could end up taking Bitcoin down with them once again.

Featured image from Deposit Photos, Chart from TradingView

Is Uniswap’s UNI Token Behind Ethereum’s 6% 24 Hour Surge?

Last night, Uniswap debuted its Ethereum-based UNI token to the world and began distributing 400 of the suddenly hot tokens to early users of the platform.

Substantial interest surrounding the new token has led Ethereum to pump more than 6% in the last 24 hours. But it may not be for the reason you expect.

Ethereum Rockets 6% In The Last 24 Hours On The Heels Of New Token Rollout

Ethereum is trading over $100 below the 2020 high, and struggling to reclaim the previous trading range.

The number two cryptocurrency by market cap keeps smashing into support turned resistance and falling back down, but price action hasn’t yet turned downward, either.

Related Reading | Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

ETHUSD price surged over 6% over the last 24 hours, but it is not simply because Ethereum is suddenly bullish.

Instead, the smart contract focused crypto token is back in enormous demand, thanks to the debut of a new ERC-20 token launched on Ethereum’s mainnet.

ethereum uni uniswap ethos unites

ETHUSD 4H UNI Uniswap Announcement Leads To 6% Rally | Source: TradingView

How Uniswap’s New UNI Crypto Token Fueled The Top Altcoin’s Rise

Ethereum’s rally isn’t due to its bullish momentum, its due to the dominance of another new token: UNI.

In the late hours yesterday, Uniswap revealed via a blog post that it would be distributing 400 tokens to all early users of the liquidity pooling platform.

Uniswap has exploded in popularity recently amidst the DeFi frenzy, acting as a launch pad for new projects and tokens.

Now, Uniswap has launched a token of their own, and its caused an increase in demand in Ethereum, but why?

UNI tokens must first be accessed by an Ethereum wallet used to interact with the decentralized platform, and claimed. And because these tokens are ERC-20 tokens, they are require ETH gas to move it from wallet to wallet.

Related Reading | Why Soaring Gas Fees Won’t Let An Ethereum Killer Gain The Upper Hand

For anyone that wants to cash out their UNI and take advantage of what is essentially the crypto version of a stimulus check, they’ll also need some Ethereum to send the transaction over the blockchain.

ETH gas fees have been on the rise, to controversial levels. On one hand, it shows just how in demand Ethereum is, on the other, it puts a spotlight on scaling issues.

With ETH gas fees so high, those wanting to claim their UNI tokens are having to buy Ethereum and send it to be used as gas fees in order to claim the reward.

But as the saying goes, it takes money to make money, and if you want the free crypto, you too might need to buy some Ethereum to get the job done.

How The Xi Pump of 2019 Backs Up Bitcoin Bearish Retest Theory

Several signs now suggest that Bitcoin’s recent pump to $11,000 that failed to hold could have been a bearish retest and rejection from support turned resistance.

And while a bullish retest taking place at the same time has buyers confident, price action closely resembling last year’s Xi pump could be bad for the cryptocurrency.

Bitcoin Bearish Retest Theory Gains Ground Due To Comparison With 2019

The recent possible “top” at the 2020 high of $12,400 shares many parallels with the top in 2019 when Bitcoin was rejected from $13,800.

For one, both instances reached levels of extreme greed, In 2019, sentiment spike to higher extremes, but in 2020 it hovered there longer.

Both peak trading ranges eventually broke down, but what happens next will determine if history is repeating, or if the cryptocurrency is going to continue higher.

Related Reading | This Signal Could Suggest Latest Bitcoin Rally Was A Bull Trap

The peak price action formed a head and shoulders reversal pattern, which Bitcoin may have just retested and confirmed the neckline as support turned resistance.

A potential bullish retest of “meme” downtrend resistance may have given bulls extra confidence, but it also could have led them into a bull trap, before the correction deepens.

If the correction deepens, last year’s “Xi pump” may provide the map to follow toward new local lows.

itcoin xi pump bearish retest comparison

BTCUSD 2019 Daily Versus 2020 12-Hour Bearish Retest Comparison Chart | Source: TradingView

Remembering The Xi Pump And Comparing It To Current Crypto Price Action

In late October 2019, Chinese President Xi Jinping urged his country to be on the forefront of blockchain technology. There was no mention at all of Bitcoin, yet the narrative for an enormous pump and short squeeze was too perfect for whales to ignore.

Sharp buying of a sweep of lows pushed Bitcoin prices to set the third-largest single day rise on record. The insane pump caused serious FOMO as Bitcoin blasted back above $10,000.

But ultimately, Bitcoin price was rejected hard, and one of the deepest downtrends followed. The fall took the crypto asset back to $6,000, and eventually, $3,800.

Now, the same sort of price action is playing out across the 12-hour timeframe again in 2020, according to the chart above.

Related Reading | Bitcoin Price Revisiting $11,000 Could Confirm Short-Term Bearish Reversal Pattern

The two different segments of price action look very similar, which could indicate that Bitcoin price could fall to the low $9,000 range over the next few weeks, and perhaps even further down the line.

Although $12,400 would mark a higher low on high timeframes, the hallmark of a downtrend, no lower low has yet to be set. A lower low below $3,800 would be crushing to crypto.

However, this sort of price action could simply suggest that the “meme” triangle has yet to be broken out of, and the range is getting tighter.

For now, its best to be careful considering a TD 9 sell setup, a head and shoulders, and more could suggest a bull trap and bearish retest will lead to another drop soon enough

How The Xi Pump of 2019 Backs Up Bitcoin Bearish Retest Theory

Several signs now suggest that Bitcoin’s recent pump to $11,000 that failed to hold could have been a bearish retest and rejection from support turned resistance.

And while a bullish retest taking place at the same time has buyers confident, price action closely resembling last year’s Xi pump could be bad for the cryptocurrency.

Bitcoin Bearish Retest Theory Gains Ground Due To Comparison With 2019

The recent possible “top” at the 2020 high of $12,400 shares many parallels with the top in 2019 when Bitcoin was rejected from $13,800.

For one, both instances reached levels of extreme greed, In 2019, sentiment spike to higher extremes, but in 2020 it hovered there longer.

Both peak trading ranges eventually broke down, but what happens next will determine if history is repeating, or if the cryptocurrency is going to continue higher.

Related Reading | This Signal Could Suggest Latest Bitcoin Rally Was A Bull Trap

The peak price action formed a head and shoulders reversal pattern, which Bitcoin may have just retested and confirmed the neckline as support turned resistance.

A potential bullish retest of “meme” downtrend resistance may have given bulls extra confidence, but it also could have led them into a bull trap, before the correction deepens.

If the correction deepens, last year’s “Xi pump” may provide the map to follow toward new local lows.

itcoin xi pump bearish retest comparison

BTCUSD 2019 Daily Versus 2020 12-Hour Bearish Retest Comparison Chart | Source: TradingView

Remembering The Xi Pump And Comparing It To Current Crypto Price Action

In late October 2019, Chinese President Xi Jinping urged his country to be on the forefront of blockchain technology. There was no mention at all of Bitcoin, yet the narrative for an enormous pump and short squeeze was too perfect for whales to ignore.

Sharp buying of a sweep of lows pushed Bitcoin prices to set the third-largest single day rise on record. The insane pump caused serious FOMO as Bitcoin blasted back above $10,000.

But ultimately, Bitcoin price was rejected hard, and one of the deepest downtrends followed. The fall took the crypto asset back to $6,000, and eventually, $3,800.

Now, the same sort of price action is playing out across the 12-hour timeframe again in 2020, according to the chart above.

Related Reading | Bitcoin Price Revisiting $11,000 Could Confirm Short-Term Bearish Reversal Pattern

The two different segments of price action look very similar, which could indicate that Bitcoin price could fall to the low $9,000 range over the next few weeks, and perhaps even further down the line.

Although $12,400 would mark a higher low on high timeframes, the hallmark of a downtrend, no lower low has yet to be set. A lower low below $3,800 would be crushing to crypto.

However, this sort of price action could simply suggest that the “meme” triangle has yet to be broken out of, and the range is getting tighter.

For now, its best to be careful considering a TD 9 sell setup, a head and shoulders, and more could suggest a bull trap and bearish retest will lead to another drop soon enough

Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

Overnight, crypto Twitter exploded in chatter about what is essentially free money. Liquidity swap platform Uniswap that’s recently enjoyed enormous growth rewarded early users with a distribution share of UNI tokens.

The price per token quickly rose, essentially turning the UNI distro into the crypto industry version of the stimulus check.

How Uniswap Is Stealing Back The Momentum After SushiSwap Fallout

The DeFi trend has taken some strange twists and turns. What started as a very serious movement to build the future of alternative finance, turned into a buffet of both profits and odd-sounding food tokens with little to no use case.

Along the way there were plenty of new buzzwords such as yield farming, and liquidity pooling coined, and dozens of new tokens minted.

Where you got those coins early on, were decentralized swap platforms like Uniswap. There, you pool tokens toward other project’s total liquidity, and you either profit or lose when you finally take your liquidity out of the pool.

Related Reading | Dangers of DeFi Hype Surface Following One-Hour Crypto Scam

Some have made fortunes, others have been badly burned. The craze led to a number of knockoffs, including some from Tron frontman Justin Sun, and another, SushiSwap. A fiasco involving the project’s founder dealt a major blow to the DeFi space, Ethereum, and just about all swap-based platforms.

To revive that once burning hot interest in Uniswap and take back market share from competing platforms, Uniswap has dished out a distribution of UNI tokens to early users of the platform, and it has got the world of crypto buzzing once again.

uniswap uni crypto

UNIUSDC Price Chart | Source: TradingView

400 UNI Tokens At $3 A Piece Is Equivalent To $1200 Stimulus Check

Overnight, news broke that Uniswap had issued earliest users of the platform as many as 400 UNI tokens. Some users received more, however, most commonly 400 was distributed.

Although there’s been some fluctuation, the price per UNI token has trade mostly stable at roughly $3 per token. At $3 per token, multiplied by the 400 sent around, The Uniswap token distribution matches the same amount of stimulus money the US government sent out to taxpayers back in April.

Related Reading | Pizza & Hot Dogs: How Uniswap’s Profit Buffet Can Burn Crypto Investors

Those who invested it into Ethereum then, would have turned it into a small fortune. However, is it wise to invest this UNI-based crypto stimulus back into Ethereum, or is it best to hold UNI for the long-haul?

Uniswap recently beat Coinbase in total volume, and the UNI token is surprisingly already listed on the exchange. These two facts alone suggest incredible momentum, and potentially much higher prices per UNI token.

Selling now, may get you a secured $1,200 in the bag, but letting it ride could be far more stimulating.

Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

Overnight, crypto Twitter exploded in chatter about what is essentially free money. Liquidity swap platform Uniswap that’s recently enjoyed enormous growth rewarded early users with a distribution share of UNI tokens.

The price per token quickly rose, essentially turning the UNI distro into the crypto industry version of the stimulus check.

How Uniswap Is Stealing Back The Momentum After SushiSwap Fallout

The DeFi trend has taken some strange twists and turns. What started as a very serious movement to build the future of alternative finance, turned into a buffet of both profits and odd-sounding food tokens with little to no use case.

Along the way there were plenty of new buzzwords such as yield farming, and liquidity pooling coined, and dozens of new tokens minted.

Where you got those coins early on, were decentralized swap platforms like Uniswap. There, you pool tokens toward other project’s total liquidity, and you either profit or lose when you finally take your liquidity out of the pool.

Related Reading | Dangers of DeFi Hype Surface Following One-Hour Crypto Scam

Some have made fortunes, others have been badly burned. The craze led to a number of knockoffs, including some from Tron frontman Justin Sun, and another, SushiSwap. A fiasco involving the project’s founder dealt a major blow to the DeFi space, Ethereum, and just about all swap-based platforms.

To revive that once burning hot interest in Uniswap and take back market share from competing platforms, Uniswap has dished out a distribution of UNI tokens to early users of the platform, and it has got the world of crypto buzzing once again.

uniswap uni crypto

UNIUSDC Price Chart | Source: TradingView

400 UNI Tokens At $3 A Piece Is Equivalent To $1200 Stimulus Check

Overnight, news broke that Uniswap had issued earliest users of the platform as many as 400 UNI tokens. Some users received more, however, most commonly 400 was distributed.

Although there’s been some fluctuation, the price per UNI token has trade mostly stable at roughly $3 per token. At $3 per token, multiplied by the 400 sent around, The Uniswap token distribution matches the same amount of stimulus money the US government sent out to taxpayers back in April.

Related Reading | Pizza & Hot Dogs: How Uniswap’s Profit Buffet Can Burn Crypto Investors

Those who invested it into Ethereum then, would have turned it into a small fortune. However, is it wise to invest this UNI-based crypto stimulus back into Ethereum, or is it best to hold UNI for the long-haul?

Uniswap recently beat Coinbase in total volume, and the UNI token is surprisingly already listed on the exchange. These two facts alone suggest incredible momentum, and potentially much higher prices per UNI token.

Selling now, may get you a secured $1,200 in the bag, but letting it ride could be far more stimulating.

This Signal Could Suggest Latest Bitcoin Rally Was A Bull Trap

Bitcoin price rebounded hard from $10,000 and in a flash already found itself back above $11,000. Thus far, the key level couldn’t hold, and now signs are appearing that could suggest the rally was noting more than a bull trap and retest of resistance turned support.

TD Sequential Indicator Gives Bull Trap Warning With Perfected TD 9 Sell Setup

This week, Bitcoin blasted back above $11,000 but failed to hold the critical zone as it did the last time the cryptocurrency had a stretch of extended intraday upside.

At the top of the recent rise, however, the TD Sequential indicator has perfected a TD 9 sell setup. A 9 setup is perfected when the 9 candle reaches higher than its previous candle closes – imperfect setups are less reliable, but can still result in a drop.

Related Reading | Bitcoin Price Revisiting $11,000 Could Confirm Short-Term Bearish Reversal Pattern

The tool was designed by market timing expert Thomas Demark to signal trend exhaustion, and therefore, potential turning points that could lead to reversals.

The signal appearing at the height of a retest of support turned resistance, could suggest that the latest rally is a bull trap and more downside is next for the cryptocurrency.

 

bitcoin btcusd td 9 sell setupBTCUSD Daily TD 9 Sell Signal TD Sequential Indicator | Source: TradingView

Bearish Retest And Possible Head And Shoulders Pullback Confirms Support As Resistance

TD 9 signals are usually accurate enough to compel traders to take a position in any asset. The tool has called several tops and bottoms in Bitcoin – and recently triggered the same sell setup on the two-week timeframe at the peak 2020 high.

If the bull trap confirms and prices fall, what may have actually happened was a pullback to retest support turned resistance at the neckline of a head and shoulders top formation.

bitcoin btcusd head and shouldersBTCUSD Daily Head and Shoulders Pullback Confirmed? | Source: TradingView

Head and shoulder are typically reversal patterns. But before prices reach their target, statistics show that price actin tends to come back to retest the neckline in a throwback.

Once confirmed, the target is then reached. This pullback and bearish retest coinciding with a highly accurate sell signal doesn’t bode well for Bitcoin bulls, who may have been over confident that $10,000 had held thus far.

Related Reading | Did Bitcoin Just Confirm It’s Largest Reversal Pattern In History?

Another retest of $10,000 could be next after failing to hold above $11,000. Was this latest move a bull trap, or are bears in for a surprise in the days ahead when the current rally continues higher?

Featured image from DepositPhotos, Charts from TradingView

Bitcoin Price Revisiting $11,000 Could Confirm Short-Term Bearish Reversal Pattern

Bitcoin price today blasted above $11,000, reviving bullish sentiment across the crypto market. Behind the buzz, is the fact that the leading crypto asset successfully confirmed a bullish retest of $10,000 as resistance turned support.

But at the same time, the future of finance may have also completed a bearish retest and throwback to confirm a bearish reversal pattern. Both directions can’t be right, so which is it? You be the judge.

Bitcoin Price Performance: A Head And Shoulders Above The Rest

Throughout most of 2020, Bitcoin and altcoins have been soaring together. But over the last 24 hours, something strange has happened, and the leading cryptocurrency has outperformed alts by a significant variance.

BTC dominance is breaking out of a downtrend line after potentially holding above a key support level and is showing signs of bottoming on high timeframes. If that’s the case, altcoins could be in trouble.

But although Bitcoin is currently looking bullish, rising more than $1,000 from local lows and a critical retest of support turned resistance, price action may have slammed into a brick wall.

bitcoin bearish retest daily head and shoulders

BTCUSD Daily Head and Shoulders Chart Pattern & Throwback | Source: TradingView

The potential top pattern – a head and shoulders – that sent Bitcoin price back down to retest $10,000, just had its neckline retested. Thus far, although $11,000 has been holding, the neckline also hasn’t been penetrated and a rejection could be forming.

Head and shoulders patterns, according to expert Thomas Bulkowski, often experience a throwback to the neckline to keep “trading interesting.” A head and shoulders pattern represents a tug of war between buyers and sellers, with sellers ultimately winning in the end.

A throwback stops out late shorters and those two took set a stop loss at the neckline. However, like the example on Bulkowski’s website, throwback can plunge directly through the neckline before falling.

bulkowski head and shoulders

Source: The Pattern Site

Bearish Retest, Or Bullish Retest? The Two Sides To Technical Analysis

If the throwback to support turned resistance holds, the pattern could confirm with a deep drop downward through $10,000. Or will it?

Related Reading | Bitcoin Reaches 144 Weeks From All-Time High: Why This Number Matters

A throwback to retest support flipped resistance is a bearish retest. However, Bitcoin price may have also recently confirmed the same type of throwback and retest of the multi-year, “meme” triangle downtrend line from all-time high.

bitcoin btcusd triangle

BTCUSD Weekly Symmetrical Triangle Chart Pattern & Throwback | Source: TradingView

This line has acted as the defacto line to beat for bulls, and they did. Now they have to defend their win in order to march forward. The head and shoulders formed on daily timeframes, while the triangle is so large, its visible on weekly, monthly, and higher timeframes.

In technical analysis, more weight is given to the highest timeframe chart patterns. That could suggest that this bullish retest of the triangle, far outpowers the significance of the head and shoulders retest on the daily.

But while it is indeed true high timeframes dominate in TA, reversals are said to start on the lowest timeframes possible. If that’s the case, regardless of what the monthly, weekly, or lower says, it could come down to days, hours, and even minutes between a new bull market, or another bearish breakdown.

Which type of retest will win? Bullish or bearish?

Featured image from DepositPhotos, Charts from TradingView and The Pattern Site

Here’s Why Altcoins Are “In Trouble” Despite Bitcoin’s Bullish Behavior

Bitcoin price today smashed back above $11,000 and is attempting to hold currently. The incredibly bullish price action following a retest of resistance turned support could have given bulls the confidence to push the crypto asset’s price much higher.

But as bullish momentum builds in Bitcoin, altcoins have turned bearish. According to one crypto analyst, alts are “in trouble” no matter which direction the first-ever cryptocurrency heads next.

Analyst: Bitcoin Is Bullish But Is Ready To ‘Rekt’ Alts Whatever Route It Takes

Bitcoin has been the best-performing mainstream asset of 2020, beating out stocks, gold, and just about everything else. However, digging deeper into the crypto space, 2020 has been all about altcoins.

Ethereum has outperformed Bitcoin by an enormous margin, while DeFi tokens, Chainlink, and several small-cap altcoins have easily bested BTC’s year-to-date ROI.

Related Reading | Did Bitcoin Just Confirm It’s Largest Reversal Pattern In History?

Suddenly, however, the tides have turned. After a controversial selloff from a “food” token founder in the DeFi space, the rose-colored goggles have come off.

Even DeFi “darlings” Chainlink, Yearn.Finance, and Binance coin have fallen while Bitcoin has recovered from a fall to user $10,000.

bitcoin btcusd versus altcoins total 2 market cap crypto

BTCUSD Versus "Total 2 CryptoCap" Altcoin Market Cap | Source: TradingView

Examining the differences between Bitcoin’s weekly price chart, and the total altcoin market cap shows one glaring difference that could be responsible for the top crypto asset being more bullish than alts.

Bitcoin is currently retesting downtrend resistance turned support, while the altcoin market cap’s downtrend line is far below. Altcoins could have gotten too overheated too soon after the breakout, that resistance was never confirmed as support.

Whatever the case may be, one crypto analyst and investor says that “alts are in trouble,” regardless of where Bitcoin goes next. But with how bullish Bitcoin has been, the direction is likely up.

BTC Dominance Could Reach Highest Point Since Crypto Bubble

If altcoins are indeed in trouble, then it is due to a massive head and shoulders pattern confirming on the BTC dominance chart. Bitcoin dominance takes the top crypto asset’s market cap and weighs it against all of the altcoins in the space.

Related Reading | How One Line In Bitcoin Dominance Is Standing In The Way Of Alt Season

At the low point, BTC dominance reached 35% and at the high last year, 72%. If the pattern confirms, however, a target of 83% dominance or higher is possible.

bitcoin btc dominance crypto altcoin throwback head and shoulders

BTC.D Bitcoin Dominance Weekly Market Structure | Source: TradingView

Coinciding with this “throwback” retest of resistance turned support, which we know from BTCUSD is a critical situation, there’s also a breakout of a bullish falling wedge pattern.

The bullish breakout closely resembles that previous breakout that took BTC.D to 72% in 2019. That year, like 2020, altcoins led Bitcoin to revisit highs, but then the leading cryptocurrency left altcoins behind and they bled out significantly.

With BTC dominance showing similar signals, Bitcoin looking bullish, as the analyst claims, alts very well could be in a world of trouble.

Featured image from DepositPhotos, Charts from TradingView

DeFi Darlings Chainlink, Binance Coin, Yearn.Finance Plunge Over 10%

Bitcoin is surging but the rest of the crypto space isn’t following its lead this time around. Instead, many of the DeFi darlings that led the last bullish impulse, have fallen 10% or more in the last 24 hours. What’s going on with the previously parabolic Chainlink, Yearn.Finance, and Binance Coin? Here’s the good, the bad, and the ugly when it comes to these DeFi tokens and their short-term fate.

The Good: Yearn.Finance Ready To Fly If Footing Can Be Found

Yearn.Finance is one of those magical success stories that comes one only every so often in the crypto market. The asset launched sub-$5,000 but has since more than doubled Bitcoin’s peak price of $20,000.

Related Reading | Binance Coin (BNB) Sees Parabolic Rise as Popularity of Binance Chain Grows

Today, it remains far more expensive than the top cryptocurrency, and while BTC did absorb capital from the 10% YFI drop, support is currently holding – both horizontally and at the middle Bollinger Band. Holding here could send Yearn.Finance back to retest highs and then some.

yfiusd yearn.finance

Yearn.Finance Daily 10% Drop To Support & Bollinger Bands | Source: TradingView

The Bad: Binance Coin Holding Support, But Reversal Signal Storm Cloud Hangs

Binance Coin appears to be at an impasse, where bulls are putting up a fight but bears just dealt a potentially deadly blow.

Related Reading | Chainlink Monthly Finish Flashes Grand Finale Sell Signals

An evening star pattern may have formed at the top of the recent uptrend – which would be a strong reversal signal. However, support from the February 2020 high in Binance Coin is currently holding up well, despite the 10% intraday drop and potential rejection.

bnbusd binance coin

Binance Coin Daily 10% Drop To Support & Evening Star | Source: TradingView

The Ugly: Chainlink Trend Turns Bearish On Daily Timeframes, Trend Line At Risk

Chainlink’s chances of holding up are less likely, according to the Average Directional Index. The tool successfully marked when LINKUSD’s bullish impulse kicked into high gear, and then again when it surprised everyone and went even further upward. Now its flipped bearish and the trend is strengthening.

Related Reading | Yearn.Finance Reclaims Support Post Coinbase Listing, New All-Time Highs In Sight

Several supports have also been lost on the way back down, and all that remains is an uptrend line that’s in grave danger of leaving Chainlink exposed to a deeper correction.

linkusd chainlink

Chainlink Daily 10% Drop Below Support & Average Directional Index | Source: TradingView

As for what’s driving the bearish sell pressure on these tokens – Chainlink, Yearn.Finance, and Binance Coin – could be a number of factors. For one, sentiment surrounding the swap craze has turned extremely negative and investors could be less blinded now that the bubble is bursting.

Or perhaps Bitcoin holding support at $10,000 has prompted profit-taking from altcoins back into BTC. Bitcoin dominance could potentially be bottoming, and the recent bleed from these DeFi darlings could just be the start of the carnage to come.

Featured image from DepositPhotos, Charts from TradingView

Bullish Case For Bitcoin: Profit Taking Turns Into Buying The Blood

Bitcoin price recently saw a $2,000 correction after months straight of surging. At the start of the selloff, signs pointed to profit-taking as the primary reason for the pullback. However, after greed turned to fear, big-money investors have begun buying the blood right out from under investors who are panic-selling the cryptocurrency at a loss.

Here’s why this is incredibly bullish for Bitcoin and what this could mean for a new uptrend taking hold.

Bitcoin Whales Buy The Blood As Small Time Investors Panic Sell At a Loss

The crypto market has been on fire in 2020, and although other crypto assets have outperformed Bitcoin, it too has done well for itself.

Bitcoin remains the most profitable mainstream investment of the year next to gold, stocks, and anything else. But a recent over $2,000 crash turned the ultra greedy market into a fearful one.

Related Reading | This Accumulation Pattern Suggests Bulls Are On The Right Side Of Bitcoin

Contrarian investing strategies recommend selling when markets are at peak greed and then buying when most fearful. That strategy would have proven well over the last few weeks when the crypto market Fear and Greed Index reached record highs.

Smart money investors taking profit caused the selloff initially, as depicted by the green moving profit average below. But smart money may now be buying the “blood in the streets” as contrarian Baron Rothschild suggested.

bitcoin buying blood

Bitcoin Moving Profits and Losses | Source: Twitter

Profit-taking has turned into buying the fear and panic of those who cannot control their emotions, and are selling their Bitcoin at a loss – represented by the red line just recently crossing above the green.

Note how during each major crash, more investors are selling at a loss than in profit. Meanwhile, during each top, investors are taking profit instead of panic-dumping below entry.

But after such an enormous fall on Black Thursday and an ongoing bear market that hasn’t yet been concluded with a new higher high, why are investors buying up the blood with prices still so high?

 

bitcoin btcusd weekly sr flip

BTCUSD Weekly S/R Flip | Source: TradingView

What’s Given Crypto Bulls So Much Confidence To Buy The Dip?

If technical analysis patterns are accurate, then bulls are right to be buying the dip, rather than selling at a loss. Those who have sold on the way down may sorely regret it and be forced to buy back at higher prices.

What has suddenly given smart money confidence to buy the dip after recently taking profit, is that downtrend resistance turned support, along with $10,000, recently held up strong on daily and weekly timeframes.

Related Reading | Has Bitcoin Confirmed A Bullish Retest Of “Meme” Downtrend Line?

If the key level can also hold on the September monthly, chances are that a new bull market has fully developed, and a retest of all-time high is only a matter of months away.

Featured image from DepositPhotos, Charts from TradingView

No, Another $1 Billion In Tether (USDT) Wasn’t Added To The Crypto Market Cap

This week, over $5 billion in Tether (USDT) was minted and added to the stablecoin’s circulating supply and market cap. A correlation with newly minted USDT and Bitcoin pumping has sent the crypto community into a tailspin.

Today, an automated Twitter account that alerts investors as to when new Tether is minted claimed another $1 billion was added, but that’s not quite the case. Before Bitcoin investors expect another major pump, here’s what really happened and what this actually means for crypto.

Tether Supply and Stablecoins Rapidly Rise Out Of Crypto Bear Market Ashes

Tether, the controversial stablecoin is now the third most dominant cryptocurrency in the entire industry, rising out of the bear market as the one clear winner. No coin has benefitted from the crypto winter as much as the stable flight to crypto safety has.

USDT as a token has several uses. It offers a stable store of wealth, a means of exchange, and a hedge against crypto market volatility and downturns. It grew in popularity chiefly due to crypto traders moving into USDT instead of actual dollars to keep capital in the crypto market, but away from Bitcoin, Ethereum, and others that are more susceptible to violent price swings.

Related Reading | Financial Advisory Group: Bitcoin Would Be 40% More Valuable Without Manipulation

Today, however, its the base currency on most cryptocurrency trading platforms, and an ideal choice for sending funds around the internet thanks to its peg to the dollar.

Stablecoins, not just Tether, have grown immensely recently, showing the demand for digital dollars with more integrity than what Tether offers. Although nothing has ever been proven, a dark cloud has ominously hung over the stablecoin and its parent company by association.

Tether has been accused of being central to everything from Bitcoin price manipulation to being insolvent. Its also been embroiled in several high profile court cases, but its supply keeps on climbing.

bitcoin btcusdt usdt tether market cap supply

BTCUSDT Versus Tether USDT Market Cap | Source: TradingView

$1 Billion In USDT Is A Reprint, Not New Money To Pump Bitcoin

Each time the supply increases, Bitcoin pumps. Or so it seems. The one time a massive amount of USDT was pulled from the crypto market, Bitcoin plummeted to its bear market bottom at $3,200.

Since then, every time more supply is injected into the crypto market, the top crypto asset soars. The ongoing correlation appears to indicate that Bitcoin is about to rise more than it ever has in the past.

And its got crypto investors watching the USDT supply like a hawk for the next major printing and pump in Bitcoin. Today, an alert got the community up in arms when another $1 billion in Tether was said to be printed. However, that was not the case.

Related Reading | How Does The Next Chapter In The Tether Printing Story Unfold For Bitcoin

What actually took place, was a coordinated effort with a third-party to swap out $1 billion of the USDT supply off of the Tron blockchain and onto Ethereum as an ERC-20 token.

Ethereum-based Tether has exploded as the most dominant chain of the stablecoin, however, rising gas fees recently has made USDT and other stablecoins expensive to send.

It is not clear what the motivation was behind the swap, but there is no reason to expect what is effectively $1 billion removed and re-added will cause Bitcoin or any crypto assets to pump.

Featured image from DepositPhotos, Charts from TradingView

Did Bitcoin Just Confirm It’s Largest Reversal Pattern In History?

All eyes are on Bitcoin and more specifically if the cryptocurrency is able to hold above both the “meme” downtrend line and the critical level of $10,000.

The asset thus far has held strong, confirming both former resistance levels as support. But at the same time, the leading cryptocurrency by market cap may have also confirmed the largest reversal pattern in its entire history.

Has The Cryptocurrency Just Confirmed Its Largest Reversal Chart Pattern Ever?

When Bitcoin slammed headfirst into $20,000 and immediately fell over $8,000 to $12,000 days later, it was clear there was a reversal taking place. The blow-off top has still yet to be retested, and thus far marks the most significant confirmed reversal left behind on Bitcoin’s price charts at a full 40% movement in the pattern from top to bottom.

Nearly a full year later, Bitcoin then collapsed to its current bear market bottom at $3,200, and consolidated for months, forming yet another reversal pattern. The ascending triangle at the asset’s four year low had a full height of just 30%, yet caused the cryptocurrency to rally over 300% from the low point of the pattern.

Related Reading | Has Bitcoin Confirmed A Bullish Retest Of “Meme” Downtrend Line?

Although these two reversal patterns are the two most significant over the current bear and bull market cycle, they pale in size compared to the potential inverse head and shoulders pattern forming on weekly timeframes across BTCUSD price charts.

bitcoin btcusd inverse head and shoulders

BTCUSD Weekly Inverse Head and Shoulders Confirmed Throwback | Source: TradingView

Inverse Head And Shoulders Potentially Targets New All-Time High In Bitcoin

Bitcoin price action since the 2019 top has formed what looks to be a massive inverse head and shoulders chart pattern. These structures are typically bullish reversal patterns, representing a tug of war between buyers and sellers, with sellers eventually sorely losing out.

The significance of the reversal pattern isn’t just the fact that it could send Bitcoin rocketing higher from here, it is the sheer size of the formation itself.

Related Reading | This Accumulation Pattern Suggests Bulls Are On The Right Side Of Bitcoin

Past reversal patterns took place within just 30-40% of price action, while the full rise from the candle close on the “head” of the pattern, is over a 95% move. Matching that move, from the breakout point, would take the cryptocurrency back to retest its former all-time high as a target.

Head and shoulders patterns, whether inverse or right side up, often result in a throwback back to retest the trend line as resistance flipped support or vice versa. After that retest is confirmed, the next stop is the target based on the structure.

Pattern targets are taken from the trend line to the low point of the head. Adding in any wick caused by Black Thursday would move the target of the structure beyond the cryptocurrency’s record price.

Could this enormous pattern be the final reversal pattern before Bitcoin breaks above its all-time high?

Featured image from DepositPhotos, Charts from TradingView

How One Line In Bitcoin Dominance Is Standing In The Way Of Alt Season

Bitcoin price may have just held and confirmed a critical bullish retest of $10,000 and “meme” downtrend resistance from all-time high. After such a bullish confirmation the leading cryptocurrency by market cap could soon soar.

And if it does, BTC dominance could be signaling that altcoins are going to bleed out and into Bitcoin in the months ahead. But it all hinges on one line holding, which if lost, could send the crypto market into a full-blown alt season instead.

btcusd bitcoin crypto

BTCUSD Monthly Bullish Retest Holding Strong | Source: TradingView

Bitcoin Holds Crucial Level, Will Capital Flow From Altcoins Into The Top Crypto?

The chart above paints a very clear picture: the onus is on bulls right now to hold Bitcoin price above two very important levels.

The first key level is “meme” downtrend resistance from the all-time high. This line has kept crypto prices at bay for the last three years, and in July, Bitcoin broke through it. After a monthly doji candle signaled a pause in the uptrend, the crypto asset came back down to retest and confirm the resistance line as support.

This crucial support and resistance flip could set the stage for the future of the crypto market. It could cause serious FOMO in Bitcoin, but losing it could be bad for the leading crypto asset by market cap.

Related Reading | This Accumulation Pattern Suggests Bulls Are On The Right Side Of Bitcoin

A doji at the top of an uptrend is also dangerous, making the current monthly candle and the one after it that much more pivotal. A red candle falling through the second support level – $10,000 and closing a monthly below it could signal an evening star pattern, and send Bitcoin tumbling lower.

However, Bitcoin dominance could hint at the top crypto outperforming the rest of the market, which would suggest the bullish retest will hold strong.

bitcoin btc dominance altcoin

BTC.D Monthly Former Resistance Turned Support Holding | Source: TradingView

BTC Dominance Failing To Hold S/R Flip Could Lead to Altcoin Season, Possible Takeover

BTC dominance, the metric that weighs the first-ever cryptocurrency’s market cap against the rest of the altcoin space, is also at a pivotal moment.

BTC dominance is holding strong at a level that previously acted as resistance on the way up to the bear market high of 73%. After breaking through 61% dominance, the cryptocurrency surged another 12% to that peak.

Related Reading | Five Signs Bitcoin Dominance Has Bottomed: Are Altcoins Headed To Zero?

But since then, it’s been falling for over a year and counting. BTC dominance is back at 61% – the one line preventing a full-on alt season from taking place. If BTC dominance loses the line, expect fireworks in altcoins not seen since 2017.

Altcoins will not only bloom once again, but they’ll regain dominance if the lower support line can be taken out. But that target could be locked away for a very long time if BTC dominance closes its October monthly above 62%.

 bitcoin btcusd crypto 2

BTC.D Monthly Potential Morning Star Reversal Pattern | Source: TradingView

A close in September above that level could form a tweezer bottom, while a doji close here followed by a close above 62% would trigger morning star doji – a bullish reversal pattern and counterpart to the evening star formation mentioned previously related to BTCUSD.

If that happens, Bitcoin could skyrocket, leaving altcoins in its dust and putting off another alt season for a lot longer to come. Dominance has been showing signs that a bottom is in, but anything can happen in the wild world of crypto.

How Does The Next Chapter In The Tether Printing Story Unfold For Bitcoin

If Bitcoin reacts to the recent substantial printing of more Tether stablecoins the same as it has in the past, we may finally have a catalyst for the crypto asset retesting its former all-time high.

According to an ongoing correlation that suggests Bitcoin pumps with each new chapter of the Tether saga, the leading cryptocurrency by market cap’s story in 2020 could be capped off with a very happy ending.

Will Bitcoin Explode In Price After Tether’s Market Cap Adds $5 Billion in Supply?

Crytocurrency investors are watching in wait for confirmation that the new bull market in Bitcoin is here. A bullish retest in progress is the closest thing to a confirmation yet, and if it holds, the crypto market will gain some added momentum.

However, another unexpected factor could help favor a bullish breakout and further upside in the leading cryptocurrency by market cap. The parent company behind Tether has just issued the largest boost to the asset’s market cap and supply since the cryptocurrency traded below $4,000.

Then, an over 100% increase in market cap appears to have sent Bitcoin soaring. Prior to the pump, pulling Tether from the market led to Bitcoin’s collapse to its bear market bottom.

Related Reading | Early Bitcoin Investor Sees Parallels Between Now And 2016 Bull Breakout

Clearly, there’s a correlation between the crypto asset pump and dumping, and how much Tether is free-flowing in the market.

Following the 2019 rally triggered thanks to the Tether printer moving full steam, several much smaller supply increases throughout 2020 have had a similar impact. Each new printing of fresh stablecoins, causes Bitcoin bulls to roar.

But the latest boost to Tether’s market cap is the largest since the 2019 rally, which sent Bitcoin skyrocketing from $3,200 to $13,800. Could another similar rally be next?

bitcoin btcusdt tether

BTCUSD Tether Market Cap Price Action Correlation Chart | Source: TradingView

Why Does Stablecoin Supply Seem To Influence Crypto Asset Valuations?

Price charts never lie, and there’s a definitive correlation between Tether supply and the top crypto asset’s price increasing.

With each round of new USDT minted, bulls gain confidence and push prices higher. It is not quite clear why this correlation exists, but past claims of price manipulation have never been proven.

Related Reading | Bitcoin Reaches 144 Weeks From All-Time High: Why This Number Matters

More Tether seems to suggest that Bitcoin is ready for new bear market highs, potentially taking out targets at $14,000 where the last rejection took place or higher.

If an over 100% increase in Tether supply in the past led to a 300% and $10,000 price increase in Bitcoin, an over 40% rise from current levels could take Bitcoin to over $14,000 and set a new bear market high.

A higher-high on weekly and monthly timeframes could be a significant signal to bulls that the bull market is starting, and it could provide the momentum needed to retest $20,000.

The boost in Tether market supply also comes just as the asset reaches 144 weeks since its all-time high, and is mid-testing former bear market downtrend resistance as support.

Featured image from DepositPhotos, Charts from TradingView