Autor Cointelegraph By William Suberg

Bitcoin price briefly loses $20K on 'bunch of nothing' Powell speech

Bitcoin price briefly loses $20K on 'bunch of nothing' Powell speech

Uverejnil používateľ | aug 27, 2022 |

Bitcoin (BTC) analysts were keen to draw fresh price targets on Aug. 27 after the largest cryptocurrency briefly fell below $20,000.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewSub-$20,000 BTC price targets stay in placeData from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $19,945 on Bitstamp the night after hawkish comments from the United States Federal Reserve. Intraday losses for the pair neared 9% and United States equities cratered over the outlook for inflation policy, which looks to increasingly abandon the “soft landing” narrative.”Restoring price stability will take some time and requires using our tools forcefully to bring demand and supply into better balance. Reducing inflation is likely to require a sustained period of below-trend growth,” Fed Chair, Jerome Powell, said in a speech at the annual Jackson Hole economic symposium. “Moreover, there will very likely be some softening of labor market conditions. While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses. These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain.”Adding that quantitative tightening, known as QT, could remain “for some time,” Powell sparked a major volatility spike to the downside across risk assets.Just wasted 10 minutes of my life watching Powell say a bunch of nothing — Will Clemente (@WClementeIII) August 26, 2022As Cointelegraph reported, U.S. stocks lost a combined $1.25 trillion in a single session — more than the entire crypto market cap.Bitcoin managed to regain $20,000 on the day, and was hovering near $20,200 at the time of writing, nonetheless still near one-month lows.For traders, it was now a question of a relief bounce followed — potentially — by even heavier losses.”$BTC went lower than expected, but the idea is still the same. First up to liquidate late shorts, then down,” popular Twitter account Il Capo of Crypto told followers in the first of several updates on the day.Continuing, Il Capo of Crypto painted short-term relief targets between $23,000 and $23,500, but to the downside, $19,000 and $16,000 were now in play.$BTC main ideaResistances: 22500 and 23000. Expecting a bounce to one of these levels for a short squeeze. That would also trap longs again, since it would be an aggressive move.Support: $19k. Break below here and it goes straight to new lows.Main target: $16k pic.twitter.com/wFbVvBmHYO— il Capo Of Crypto (@CryptoCapo_) August 27, 2022

Others eyed the potential for increasing BTC accumulation should $20,000 be violated as support again.Fellow account TraderSZ considered $19,400 a potential bounce zone under such a correction, with relief running to the weekly open near $23,000 before June’s $17,600 reentered the picture.Meanwhile, key trendlines figuring in prior bull markets were now back overhead for BTC/USD. These included the realized price at $21,600 and the 200-week moving average (MA) at close to $23,000.”Moving higher resistance at $21,100. Support at $19850 followed by $19,200,” trading suite Decentrader added in part of a summary of the current scenario.DXY wakes up last minute on Fed cuesAs stocks tumbled, meanwhile, the familiar face of the U.S. dollar came back to haunt crypto markets.Related: CME Bitcoin futures see record discount amid ‘very bearish sentiment’The U.S. dollar index (DXY), initially seeing heavy downside, rebounded to levels which again put it within striking range of twenty-year highs.At the end of Aug. 26, DXY stood around just under 108.9, up from lows of 107.6 within a matter of hours.U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView”FED staying the course means $DXY maintains its trend which means assets trend down more,” analyst Kevin Svenson summarized.Investor and entrepreneur Danny Baldus-Strauss meanwhile pointed Twitter followers to the inverse correlation between DXY and BTC as an ongoing top and bottom indicator.”If you’re accumulating Bitcoin in this bear, keep an eye on $DXY. All major bottoms in $BTC have coincided with local tops in $DXY,” he noted alongside a chart from trading platform Stockmoney Lizards.U.S. dollar index (DXY) vs. BTC/USD annotated chart. Source: Danny Baldus-Strauss/ TwitterThe 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
US stocks lose $1.25T in a day — more than entire crypto market cap

US stocks lose $1.25T in a day — more than entire crypto market cap

Uverejnil používateľ | aug 27, 2022 |

Bitcoin (BTC) and altcoins lost big on Aug. 26 after the United States Federal Reserve delivered hawkish remarks on economic policy.Across the board, risk assets took a major hit — U.S. equities shed around $1.25 trillion in a single session.Analyst: Powell retiring “soft landing” rhetoricAs comments by Fed Chair, Jerome Powell, suggested that larger rate hikes were still firmly on the table despite recent data hinting that inflation was already slowing, investors rushed to cut risk.”Restoring price stability will likely require maintaining a restrictive policy stance for some time. The historical record cautions strongly against prematurely loosening policy,” Powell said at the annual Jackson Hole economic symposium.The S&P 500 closed down 3.4% on the day, hitting its lowest levels since late July. The Nasdaq Composite Index copied the move and extended losses, shedding 4%.Overall, the U.S. stock market lost more value than the entire market cap of Bitcoin and altcoins combined.The total crypto market cap itself fell from $1.029 trillion to $936.87 billion at one point overnight, representing a drop of 8.95%, according to data from Cointelegraph Markets Pro and TradingView.Total crypto market cap 1-day candle chart. Source: TradingViewWhile some argued that Powell’s words were not the essential area to consider in terms of future Fed policy, others noted that previous narratives were slowly being abandoned when it came to the inflation outlook.Stop focusing on what JAYPOW says, and focus on what he does. pic.twitter.com/tGf82VPkGF— Arthur Hayes (@CryptoHayes) August 26, 2022Holger Zschaepitz, popular markets commentator for German media publication Die Welt, considered the speech to have hit “all the hawkish notes” with Powell “skipping the dovish ones.””The hawkish features were his acknowledgment of the pain that is likely needed to reduce inflation – no more soft landing, the indication that rates will need to be taken above neutral,” he added in part of Twitter comments.Powell also said that the decision over how far to extend key interest rates in September would “depend on the totality of the incoming data and the evolving outlook.”The latest readings from CME Group’s FedWatch Tool meanwhile showed majority consensus favoring a 75-basis-point hike in September, echoing the July move.Fed target rate probabilities chart. Source: CME GroupNo hodler can hide the painFor crypto investors, however, there was no avoiding the immediate impact of the risk asset rout.Related: Price analysis 8/26: BTC, ETH, BNB, XRP, ADA, SOL, DOGE, DOT, SHIB, MATICBTC/USD lost up to 8.8% at one point, dipping under the $20,000 mark for the first time since July 14 before recovering to linger just above the significant line in the sand.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewFor altcoins, the picture was no less dire. Ether (ETH), the largest altcoin by market cap, saw intraday losses approaching 14%.ETH/USD circled $1,500 at the time of writing on Aug. 27, wiping out an entire month’s gains. Among price takes was a fresh warning from popular trader Crypto Ed, who eyed a possible further leg down next.”Could drop to $1200-1300 before any bounce of significance,” part of his latest Twitter update read.ETH/USD 1-day candle chart (Binance). Source: TradingViewThe 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
Bitcoin price gains 3.5% as US PCE data supports shrinking inflation

Bitcoin price gains 3.5% as US PCE data supports shrinking inflation

Uverejnil používateľ | aug 26, 2022 |

Bitcoin (BTC) rose rapidly later on Aug. 26 as fresh economic data from the United States furthered hopes of a pivot from the Federal Reserve.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBitcoin bounces but preserves intraday trendData from Cointelegraph Markets Pro and TradingView tracked a 3.55% rise for BTC/USD on the day, allowing the pair to match highs from earlier in the week.The move marked a surprise about turn for Bitcoin, which hours before had seen selling pressure as markets awaited cues from Fed Chair Jerome Powell’s Jackson Hole symposium speech.With that speech still to come at the time of writing, bullish catalyst came in the form of the latest Personal Consumption Expenditures Price Index (PCE) readout, which was lower than expected.Analysts reacted positively, as the numbers added weight to the idea that U.S. inflation had already peaked — a narrative already supported by the Consumer Price Index (CPI).Here is how the #crypto market reacted to better than expected PCE report. #BTC liquidity is on the move. A rip through the range before #JPow speech at 10am ET is not out of the question. After all it is #FED #FuckeryFriday #NFA pic.twitter.com/32jU1WNPGm— Material Indicators (@MI_Algos) August 26, 2022Caleb Franzen, senior market analyst at Cubic Analytics, nonetheless noted that the hourly structure on BTC/USD remained in place despite the uptick. Bitcoin traded in a range unchallenged since the Aug. 19 drop from higher levels.#Bitcoin 1hr structure is still intact after the PCE data.Facing resistance in the red range and also retesting the former support trendline (teal), which is threatening to act as resistance as well. pic.twitter.com/bTZF9rxVsa— Caleb Franzen (@CalebFranzen) August 26, 2022

Analyst Kevin Svenson was equally conservative in his view of the potential knock-on effects for Bitcoin.”PCE data is bullish. FED uses that data, so now speculators are betting up,” he explained.”But if Powell stays the course then we could easily dump back down, so just be cautious. Kind of a coin flip now.”At the time of writing, BTC/USD traded at around $21,500, a key area containing Bitcoin’s realized price.”Most participants” in Bitcoin are asleepAnalyzing longer-term trends, meanwhile, BlockTrends analyst Caue Oliveira had some bad news for those hoping for a more seismic return to form for BTC price action.Related: CME Bitcoin futures see record discount amid ‘very bearish sentiment’Network usage, he noted in a blog post on the day, was still trending down, leaving little room for any bull runs to be supported by strong volume.”Bitcoin’s New Bull Market Canceled, At Least For Now,” he admitted.”With no signs of an increase in demand for the network, the resumption in the price of Bitcoin is still far from happening, pointing to a moment of accumulation.” Bitcoin median transaction volume (change-adjusted) chart (7-day moving average). Source: Glassnode/ TwitterAn accompanying chart from on-chain analytics firm Glassnode showed median on-chain transaction volume at two-year lows, even accounting for the recent price run-up.This, Oliveira added, explained a four-year low in exchanges’ BTC reserves, as appetite for trading had decreased in line with a lack of speculative activity.”For now, most participants remain inactive, including institutional ones,” he concluded”Good time for long-term accumulators, but for short-term traders, caution is needed.”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
CME Bitcoin futures see record discount amid 'very bearish sentiment'

CME Bitcoin futures see record discount amid 'very bearish sentiment'

Uverejnil používateľ | aug 26, 2022 |

Bitcoin (BTC) futures are starting to see record discounts as sentiment among derivatives traders worsens. In its latest dedicated report issued Aug. 23, analysis firm Arcane Research painted a worrying picture of morale among BTC futures participants.Futures basis revisits June lowsAfter an initial shock during June’s BTC price drop, which has since held as a macro bottom, Bitcoin derivatives have not been the same.After an initial bounce, metrics are trending downwards, and this month are challenging records.Futures basis — the difference between futures contract prices and the Bitcoin spot price — is already back at lows only seen during June’s dip to $17,600. The move came thanks to last week’s sudden sell-off on BTC/USD, which resulted in multiple visits below the $21,000 mark.“Overall, the current futures basis sits at levels only experienced briefly during the June crash,” Arcane confirmed, adding that the data is “indicative of a very bearish sentiment among futures traders.”More discouraging figures come from CME Group’s front-month futures contract price. Beating out prior lows from July 2021, those contracts now trade at their biggest-ever discount to spot price.“Overall, CME’s futures have tended to trade at a discount in the last two months but saw a solid short-lived recovery during the early August strength in the market,” the report continued.CME Bitcoin futures annualized 1-month rolling basis chart (screenshot). Source: Arcane ResearchArcane argued that “structural effects” within the derivatives market could go some way to explaining the behavior, but that “worsening liquidity or general de-risking” were both still a risk.“While BTC derivatives might signal a climate ripe for a short squeeze, the choppy trading range alongside global market turmoil speaks in favor of conservative positioning and gradual accumulation in the spot market,” it concluded.GBTC lingers near record lowsAfter United States regulators rejected its application for a Bitcoin spot price exchange-traded fund (ETF) in June, meanwhile, the largest institutional Bitcoin investment vehicle continues to struggle.Related: Aussie asset manager to offer crypto ETF using unique license variationThe Grayscale Bitcoin Trust (GBTC) is still trading at more than a 30% discount to the Bitcoin spot price. The latest data, which Cointelegraph previously reported, puts the GBTC discount — once a premium — at 32.5%. The discount also saw records in June, when it briefly passed 34%.For investor and researcher Jeroen Blokland, signs of a trend change remain elusive.“I expect that ‘physical’ bitcoin ETFs will get approved at some point. After the recent SEC ruling, that doesn’t seem imminent, but futures ETFs (also) have their menaces,” he argued this week.Blokland said that institutional investors were “massively” choosing BTC exposure options other than GBTC.GBTC premium vs. asset holdings vs. BTC/USD chart. Source: CoinglassThe 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
Bitcoin price taps $21.3K ahead of Fed Chair Powell Jackson Hole speech

Bitcoin price taps $21.3K ahead of Fed Chair Powell Jackson Hole speech

Uverejnil používateľ | aug 26, 2022 |

Bitcoin (BTC) fell to daily lows on Aug. 26 as market nerves heightened into new macro triggers.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewPre-Fed blues hit BTC marketsData from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $21,332 on Bitstamp ahead of fresh commentary from Jerome Powell, Chair of the United States Federal Reserve.Part of the Fed’s Jackson Hole annual symposium, Powell was set to deliver a speech on the day that spectators hoped would provide new cues on economic policy going forward.With U.S. Consumer Price Index (CPI) inflation slowing since June, interest remained high over the extent of key interest rate hikes in September.Summarizing the current economic situation in the U.S., macro analyst David Hunter argued that the Fed would have no choice but to change course before the end of the year.“Many signs we’re in recession w/economy continuing to decelerate,” he told Twitter followers this week.“Composite PMIs at 45,housing rolling over fast,retail is weak,labor conditions are deteriorating.Overseas is even worse.And inflation is rolling over & likely will surprise on the downside.Fed will pause this fall.”According to CME Group’s FedWatch Tool, however, a majority still favored a repeat of July’s 75-basis-point raise.Fed target rate probabilities chart. Source: CME GroupTrading range endures Bitcoin circles meanwhile kept an eye on potential volatility going into this year’s Jackson Hole.Related: Wen moon? Probably not soon: Why Bitcoin traders should make friends with the trend“We often see an increase in volatility just before FED announcements, but that may be limited if some of the near range liquidity doesn’t get cleared out,” on-chain analytics resource Material Indicators wrote in part of comments on the day.An accompanying chart showed buy and sell levels on the Binance order book, these strengthening closer to spot at the time of writing, reducing the potential for a breakout.BTC/USD buy and sell levels chart (Binance). Source: Material Indicators/ TwitterContinuing, Keith Alan, nonetheless predicted that an end to the sideways price action (PA) of recent days would have to enter.“PA will be forced to make a directional move out of the micro-structure very soon,” he explained. “Normally I would be eager to scalp the volatility that usually front runs a JPow conference, but the R:R ratio in the active range sucks. Might consider scalping a breakout above the 50 MA.”On the topic of price targets, Cointelegraph contributor Michaël van de Poppe flagged $21,000 as a key level to hold in the event of additional downside.Retesting $21,800, on the other hand, could result in a breakout above $23,000.#Bitcoin is boring, as we anticipate reactions based on tomorrow’s news (PCE numbers and Powell’s speech).Overall, on a support block now and;- Tomorrow can result in fake-outs.- Testing $21.8K will likely result in acceleration to $23.2K.- Crucial to stay above $21K. pic.twitter.com/LYNRnHpnkh— Michaël van de Poppe (@CryptoMichNL) August 25, 2022The 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