Autor Cointelegraph By Ray Salmond

Time for a breakout? Bitcoin price pushes at key resistance near $23K

Time for a breakout? Bitcoin price pushes at key resistance near $23K

Uverejnil používateľ | sep 12, 2022 |

On Sept. 12, Bitcoin is doing Bitcoin things as usual. Since Sept. 9 the price has broken out nicely, booking a near 16% gain and rallying into the long-term descending trendline which appears to have resistance at $23,000. BTC/USDT 1-day chart. Source: TradingViewPerhaps BTC and the wider market are turning bullish ahead of the Ethereum Merge which is scheduled for Sept. 14, or maybe the elusive bottom is finally in. Weekly chart data from TradingView shows that on June 27 and Aug. 15, Bitcoin’s relative strength index had dropped to lows not seen since 2019. BTC/USDT 1-day chart. Source: TradingViewCurrently, the metric has rebounded from a near oversold 31 to its current 38.5 reading. Some traders might also note a bullish divergence on the metric, where the RSI follows an ascending trendline while Bitcoin’s weekly candlesticks trend downward. Bitcoin’s moving average convergence divergence (MACD) has also crossed over as purchasing volume surged and BTC price attempts to break from its current 90-day range. As pointed out in previous analysis, since Jan. 21, Bitcoin price has simply been range trading in what have turned out to be successive bear flags that see continuation to new yearly lows. Price has consistently encountered resistance at the overhead descending trendline and the price action witnessed today and in the past 90-days is not a deviation from the trend. Traders should watch for BTC price to push secure a few daily closes above the trendline resistance and setting a daily higher high above $25,400, or even a breakout to the 200-MA at $30,000 would be an excellent sight of either a trend change or at least a leg up to a new consolidation range. Until that occurs, the standard practice among traders is to not go long at long term resistance and wait to see whether the bullish momentum holds or the prevailing trend remains intact. Related: The Fed, the Merge and $22K BTC — 5 things to know in Bitcoin this weekOf course, there are a handful of other on-chain and derivatives metrics which could add valuable context to Bitcoin’s current price action, but the purpose of this brief analysis is to simply provide a quick, snapshot interpretation of BTC’s current market action and consider what traders might be thinking in the short-term. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
The Bitcoin bottom — Are we there yet? Analysts discuss the factors impacting BTC price

The Bitcoin bottom — Are we there yet? Analysts discuss the factors impacting BTC price

Uverejnil používateľ | sep 3, 2022 |

When Bitcoin was trading above $60,000, the smartest analysts and financial-minded folk told investors that BTC price would never fall below its previous all time high. These same individuals also said $50,000 was a buy the dip opportunity, and then they said $35,000 was a generational buy opportunity. Later on, they also suggested that BTC would never fall under $20,000. Of course, “now” is a great time to buy the dip, and one would think that buying BTC at or under $10,000 would also be the purchase of a lifetime. But by now, all the so-called “experts” have fallen quiet and are nowhere to be seen or heard. So, investors are left to their own devices and thoughts to contemplate whether or not the bottom is in. Should one be patient and wait for the forecast “drop to $10,000” or is now the time to buy Bitcoin and altcoins?Generally, calling price bottoms is a futile task. What’s really important to focus on is whether or not there are fundamental reasons for choosing to or not to invest in Bitcoin. Sure, price has changed drastically, but have Bitcoin’s network fundamentals and the infrastructure surrounding Bitcoin as an asset improved or degraded? It’s important to zoom in on this data because for investors, this is where one should be sourcing their confidence and investment thesis. This is exactly why Cointelegraph hosted a Twitter Spaces with analysts Joe Burnett of Blockware Solutions and Colin Harper of Luxor Mining. Here’s a few highlights from the conversation.Equities markets will decide when Bitcoin price can “go back up” According to Blockware Solutions analyst Joe Burnett, Bitcoin price is heavily impacted by Federal Reserve policy and its impact on equities markets. Burnett said: “The macro environment is obviously heavily weighing on the price of Bitcoin. High CPI inflation has led to an aggressive Fed since November of 2021. Higher interest rates inevitably cause all assets to come down. Interest rates are basically gravity on financial assets, just basically discounted cash flow analysis. And these increasing interest rates are an attempt to destroy demand and and destroy inflation by the Fed. It’s obviously putting pressure on all risk assets, including Bitcoin.” When asked about the Bitcoin hash ribbons on-chain indicator suggesting that BTC had bottomed and miners had capitulated confirming that the Bitcoin bottom was in, Burnett said “I think with every sort of like on chain type metric, you definitely have to take it with a grain of salt. You can’t look at it in a vacuum and say, yes, the bitcoin bottom is in.” Burnett said: “If US equities do make new lows, I certainly expect Bitcoin to follow. With that being said, I mean, if you’re looking at the fundamentals of Bitcoin itself, I think minor capitulations do typically mark Bitcoin bottoms. And a hash driven indicator that Charles Edwards created is basically depicting that there was a minor capitulation this summer.”Related: Canaan exec says opportunity outweighs crisis as Bitcoin miners struggle with shrinking profitsSynergy between Big Energy and Bitcoin miners is a net positive for BTCDiscussion of the growing partnership between big energy providers, oil and gas companies and industrial-size Bitcoin miners has been a hot topic throughout 2022, and when asked about the direct benefits of this relationship to Bitcoin itself, Colin Harper said:“I don’t think that mining does anything bad or good for Bitcoin. I think it’s good for Bitcoin in the sense that it will actually in the long run strengthen network security, decentralize mining and put it in like basically every corner of the globe if you have energy producers mining it. But in terms of actually doing anything to the price, I think that’s just a kind of a wider adoption case. And as to whether or not people will be using it day to day as a medium of exchange, store of value and just general investment.”Harper elaborated with, “If these companies do start mining it, then it becomes more palatable. It becomes less stigmatized. Depending on, I guess the oil producer and that person’s politics.” When asked about what Bitcoin mass adoption might look like in the future, in relation to the growth of the mining industry, Harper explained that: “It’s just going to be a matter of time before they start integrating Bitcoin into their stacks. And I think that’s when things get interesting in terms of mining as an industry because if you have the producers of the energy and the people who own the energy mining Bitcoin, then that makes it very hard for people without those assets to eventually turn a profit because you’re going to see hash price, which already trades in backwardation. Eventually, you can imagine a future where only energy producers and those who are invested with or embedded with energy producers can actually turn a profit on their bitcoin mining.”Regulation and a growing desire to self-custody will drive Bitcoin Lightning Network growthBoth analysts agreed that while it may take a handful of years, the growth potential for layer-2 Bitcoin is bright. Burnett predicted that “over time more and more people will learn to demand final settlement of their Bitcoin, meaning that more people will hold their own keys.” According to Burnett: “If Bitcoin adoption grows by 100x or 1000x, there’s going to be a lot more competition for scarce block space and on-chain fees will likely rise just because people will be demanding much more settlement, magnitudes more settlement on the base layer. But the block space to settle on the base layer is fixed. So these on chain fees rising will basically, in my opinion, potentially make lightning channel liquidity that’s already open and available. It’ll make it more valuable.”Harper wholeheartedly agreed and added that, in his opinion, the Lightning Network “will be the thing that allows Bitcoin to be used as a worldwide medium of exchange and also, like Jack Maller has put it, It’s the thing that can kind of separate Bitcoin, the asset from Bitcoin, the payment network in a way that’s actually scalable.” Tune in here to listen to the full conversation of the Twitter Space. Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

Čítaj viac
Bitcoin holds $20K, but analysts say BTC open interest leaves room for ‘more deleveraging’

Bitcoin holds $20K, but analysts say BTC open interest leaves room for ‘more deleveraging’

Uverejnil používateľ | aug 31, 2022 |

Bitcoin (BTC) price continues to struggle at $20,000 and repeat dips under this level have led some analysts to project deeper downside in the short-term. Earlier in the week, independent market analyst Philip Swift tweeted that the Crypto Fear and Greed Index had dropped back to back to “Extreme Fear,” reflecting softening sentiment among investors. The market is not enjoying $BTC hanging around $20k. Back into Extreme Fear today. Live chart: https://t.co/Jr5151zN7I pic.twitter.com/UnztrZP7FP— Philip Swift (@PositiveCrypto) August 31, 2022On Aug 29, analytics firm Delphi Digital highlighted Bitcoin open interest hitting a new record-high and said: “The Futures Open Interest Leverage Ratio for BTC reached its highest level ever recorded at more than 3% of BTC market cap, following the market-wide collapse on August 26th.” According to Delphi Digital, “higher values suggest that open interest is large, relative to market size. This implies a higher risk of market squeezes, liquidation cascades or delivering events.” Bitcoin open interest. Source: Delphi DigitalExactly what might catalyze such an event remains unknown, but any continuation of the current downtrend in stocks which saw the Dow and S&P 500 wrap up a fourth day of decline to end August at a loss could continue to weigh on Bitcoin price. Data from CNBC shows the Dow closed August down 4.1% and the S&P 500 and Nasdaq closed the month with 4.2% and 4.6% losses. Cleveland Federal Reserve President Loretta Mester also commented that she expects the benchmark interest rate to rise above 4% and she suggested that it is highly unlikely that there will be any cuts throughout the entirety of 2023. 4% is well above the Fed’s target 2.25% to 2.5% range. Considering how crypto markets have performed since the Fed first began raising rates on July 26, 2022, and the fact that BTC and equities markets reflect a strong correlation, it wouldn’t be surprising to see a long drawn out decline from Bitcoin price over the coming months. Related: Potential Bitcoin price double-bottom could spark BTC rally to $30K despite ‘extreme fear’On the other hand, traders appear to still be bullish on the upcoming Merge. Ether and ETH staking-related tokens have held up relatively well since bouncing from last week’s sell-off. After dropping to $1,422 on Aug. 28, Ether has gained 11.3% and trades slightly below $1,600. Lido (LDO), the largest ETH staking service, is up 12% on the day and 32% from last week’s drop to $1.55. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
ATOM price is reaching for the Cosmos, but why?

ATOM price is reaching for the Cosmos, but why?

Uverejnil používateľ | aug 25, 2022 |

As a market crash takes place, assets become oversold and typically there’s an “oversold bounce,” “return to mean,” “mean reversion,” or some price snapback to the bottom of the pre-crash range. Afterward, the asset under study either consolidates, continues the downtrend, or returns to the bullish uptrend if the downside catalyst was not significant enough to break the market structure. That’s all kind of basic trading 101.This week Cosmos (ATOM) price appears to be following this path and the altcoin is showing a bit of strength with a 35% gain since Aug. 22, but why? Depending on how you look at it, and technical analysis is by all means a subjective process, ATOM price is either in an ascending channel or one could say a rounding bottom pattern is present with price close to breaking above the neckline. ATOM daily chart. Source: TradingviewResistance above $13 (the horizontal black line in the bottom chart) is currently close to being tested and with sufficient volume and “stability” from the wider crypto-market, the price could be en-route to the 200-day moving average at $17.20. Of course, if Bitcoin goes belly up at the daily close, or hawkish talk starts to leak out of Jackson Hole, the whole bullish structure for ATOM is likely kaput. So if one is trading, prepare and size accordingly. If price manages to reach the $17 zone, without skipping a beat, your favorite technical analysts will then say something along the lines of: “If ATOM price manages to flip the 200-MA to support, continuation to the $27 level could occur.” Surely you’ve seen that on crypto Twitter lately, but let me find an example. I bought this $ATOM retest as it’s been leading the marketLooking for a move towards $14.4 as long as the lows hold here. pic.twitter.com/FjP8mzdFHK— CryptoGodJohn (@CryptoGodJohn) August 25, 2022So, it’s only up, sir? What traders need to find out is whether ATOM’s upside momentum is simply the result of a “stable” market and Bitcoin and Ether trading in a relatively predictable range, or is there some Cosmos-related set of fundamentals which validate the current move and warrant opening a swing long? Apparently, the analysts at VanEck, a multi-billion dollar asset management fund, think ATOM price will do a 160x move by 2030. Hard to believe isn’t it and perhaps a little bit far fetched, but see for yourself. Here’s what they said: “Based on our discounted cash flow analysis of potential Cosmos ecosystem value in 2030, we arrived at a $140 price target for the ATOM token, with downside to $1. With ATOM’s price at $10 as of 8/2/2022, we like the 14-1 odds presented and believe this is a buying opportunity for the token.”Let’s take a brief look at their rationale for $140 ATOM. Product to market fit and a secure cross-chain bridge could thrive post MergeVanEck analysts Patrick Bush and Matthew Sigel cite Cosmos’ Inter-Blockchain Communication Protocol (IBC) as a bullish catalyst primarily because “separate Cosmos SDK blockchains can open up communication channels to exchange data, messages, tokens and other digital assets.” According to the analysts, “IBC architecture then enables each blockchain to perform activities on another blockchain without relying upon a trusted third party.” And it is this “permissionless and trustless” aspect of IBC which:“…solves many of the issues presented by trusted bridging solutions that have led to over $1B in funds stolen through bridge hacks.”The analysts also cite the Cosmos SDK, clear product to market fit and strong token value accrual being partially influenced by staking and a soon to launch “interchain security” mechanism by the Cosmos Hub as reasons for their long-term bullish perspective.What’s happening on the development side and roadmap? ATOM is set to become a primary collateral asset in three new stablecoins that will launch within the Cosmos ecosystem. Why $ATOM is mooning?The main collateral in three new @MakerDAO inspired stablecoins in the @cosmos ecosystem:$USK by @TeamKujira $IST by @agoric $CMST by @ComdexOfficial These 3 chains will need $Atom to mint their stablecoins, locking up the supply.— Ericzoo.eth (@ericzoo) August 24, 2022

Minting stablecoins will require the “lock” or depositing of ATOM tokens and according to the Cosmos Hub 2.0 roadmap, liquid staking is also expected to roll out in H2 2022. ATOM roadmap details. Source: Cosmos HubDuring DeFi Summer and the post-summer revival, stablecoin issuance and liquid staking were two phenomena that boosted TVL for DeFi-oriented blockchains and while questionable and somewhat ponzi-esque, liquid staking adds buy pressure to a protocol’s native token, while also equipping it with utility within various aspects of the lending, borrowing and leveraging wings of decentralized finance. Staked percentage of ATOM’s circulating supply. Source: Staking RewardsCurrent data from StakingRewards shows that 65.84% of issued ATOM tokens are staked for a minimum yield of 17.85% and additional data from the analytics provider shows a near 189% rise in the number of ATOM stakers over the past 30-days. 30-day increase in ATOM stakers. Source: Staking RewardsThe above appears to align with the thesis that liquid staking and stablecoin minting will soon launch. Despite the confluence of these bullish indicators, it’s important to remember that asset prices do not exist in a vacuum. While there may be a handful of bullish signals flashing from ATOM, the wider cryptocurrency market (including BTC) hangs at a precipice. No-one is sure that the elusive “bottom” is in and cryptocurrencies are risk-off assets that exist in a macroeconomic climate where most institutional and retail investors are opposed to risk. The value accrual propositions for ATOM are strong and staking, stablecoin minting and liquid staking proved to be powerful bullish catalysts for DeFi tokens and altcoins in the past. But everything works until it doesn’t, right? Remember Waves, Terra (LUNA) and Celsius (CEL)? All experimented with liquid staking, lending, asset collateralization and stablecoins, yet today they’re belly up from a value perspective. Of course Cosmos isn’t LUNA, Waves or CEL. It’s a wide-ranging, cross-chain equipped ecosystem with a $12.6 billion market capitalization, according to data from CoinGecko. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac
Wen moon? Probably not soon: Why Bitcoin traders should make friends with the trend

Wen moon? Probably not soon: Why Bitcoin traders should make friends with the trend

Uverejnil používateľ | aug 25, 2022 |

The impact of Federal Reserve policy and Bitcoin’s higher timeframe market structure suggest that BTC price is not yet ready for a trend reversal. Bitcoin (BTC) price continues to chop below the $22,000 level and the wider narrative among traders and the mainstream media suggests that a risk-off sentiment is a dominant perspective ahead of this week’s Jackson Hole summit. Over the three-day symposium, the Federal Reserve is expected to clarify its perspective on inflation, interest rate hikes and the overall health of the United States economy. In the meantime, traders on Crypto Twitter continue to fantisize about a “Fed pivot” where interest hikes will be curtailed below 0.25 basis points and some form of monetary easing re-emerges, but the likelihood of the Fed adopting a dovish point-of-view in the short-term seems unrealistic, given the central bank’s 2% inflation target. Regarding Bitcoin’s most recent price action, an old saying among traders is: “Fade the short-term trend in favor of the long-term trend.” From a bird’s-eye-view, BTC price is in a clear downtrend with a four-month long stretch of recurring bear flags that continue to see continuation. The power of the hammer. pic.twitter.com/ayxELfsBdz— il Capo Of Crypto (@CryptoCapo_) August 23, 2022Sure, the on-chain data hints that maybe price is at a bottom. Of course, aggregate volumes and certain on-chain data looking at whale and shrimp BTC addresses may point toward accumulation. Yeah, the open interest in BTC and Ether continues to reach record highs and this adds fuel to the bullish ETH Merge and ETH proof-of-work hard fork tokens narrative triggering a juicy short squeeze on BTC and ETH. Any of those things can happen, but beware the narrator of those hopium-infused dreams and remember that the trend is always a good friend that a trader can lean on. As unpleasant as it might sound, the trend is down. Bitcoin continues to meet resistance at its long-term descending trendline and the price has failed to secure resistance at key moving averages like the 20, 50 and 200-day MA. BTC/USDT daily chart. Source: TradingviewEach price drop is simply creating a flag-pole, and the ensuing “consolidation” creates the flag of the bear flag continuation pattern. As the pink boxes on the daily chart shows, BTC price simply trades within a defined range before breaking below it into underlying liquidity shown by the volume profile visible range and liquidity maps. $BTC Aggregated Optical opti example from yesterdayHow to read liq maps:https://t.co/EaeFkgigggJoin the conversation:https://t.co/Ac5ChFuNNl pic.twitter.com/nhVMv9suMH— TheKingfisher (@kingfisher_btc) August 24, 2022

Essentially, there’s “nothing to see here” until price paints a few daily candles that reflect higher highs, i.e., BTC needs to clear $25,000 and close that volume profile gap in the $25,000 to $29,000 zone. From there, one would either want to see consolidation within that new higher range, or continuation of a trend reversal where the 20-MA and 50-MA function as support. As mentioned earlier, of course there are a ton of other data points that make a strong case for why the current price range is a buy zone, but what may be true for one trader is not necessarily the case for all. Some investors can afford to open swing longs here and lower and ride it out because they are flush and that’s part of their plan. Others have a smaller purse and can’t afford the lost opportunity cost of being locked into a red position for months on end. Traders are always encouraged to do their own research, make their own thesis and manage risk in a way that is best for their situation. Jackson Hole is coming up and the Fed needs to continue rate hikes until inflation and other metrics are under control. Equities markets remain tightly correlated with Bitcoin price, so the tell will be whether or not SPX and DJI continue to steamroll higher, or if future actions from the Federal Reserve begin to put a damper on the recent bullish momentum. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Čítaj viac

Získaj BONUS 8 € v Bitcoinoch

nakup bitcoin z karty

Registrácia Binance

Burza Binance

Aktuálne kurzy