Autor Cointelegraph By Yashu Gola

Bitcoin Elliott Wave Theory suggests BTC price can drop to $25.5K this year

Bitcoin Elliott Wave Theory suggests BTC price can drop to $25.5K this year

Uverejnil používateľ | feb 24, 2022 |

The ongoing Bitcoin (BTC) price correction could continue as per almost a century-old technical analysis principle called the “Elliott Wave Theory.”The interim bearish outlook put forth by the Elliot Wave Theory appeared as Bitcoin tumbled below $35,000 amid the Russia-Ukraine conflict.Bitcoin wave fractal eyes repetitionThe theory, which divides a price cycle into two sets—one consisting of five upward-trending impulse waves and the other having three follow-up corrective waves—points to the possibility of BTC’s price dropping toward $25,500 in 2022. At the core of its bearish outlook is its record of predicting cyclical tops and bottoms throughout the Bitcoin market’s history, as shown in the chart below.BTC/USD weekly price chart featuring Elliott Waves. Source: TradingViewThe Bitcoin chart shows three primary impulse waves (1, 3, and 5 in red) and two corrective waves (2 and 4 in red). The fifth wave is still in development, underscoring BTC’s potential to reach above $100,000 in the future. But together, these five waves represent an upward structure that will likely exhaust at wave 5 and follow up with three corrective waves: A, B, and C.Meanwhile, each large wave marked in red consists of sub-waves, featuring a five-wave advance (impulse) in the direction of the trend of one large degree (from 1 to 5 in black), followed by a three-wave correction against the higher degree trend (from a to c in blue).BTC/USD weekly price chart featuring sub-waves. Source: TradingViewBetween 2012 and 2018, Bitcoin’s price has repeatedly rallied between wave 1 to wave 5 followed by a correction from wave a to wave c. Each time, wave c, which coincided with Bitcoin’s 200-week exponential moving average (50-week EMA), marked BTC’s price bottom and the completion of the so-called Elliott Wave Cycle, be it in 2015 or 2018.Related: FTX CEO weighs in on Bitcoin market outlook amid Ukraine crisisAfter 2018, Bitcoin entered a new Elliott Wave Cycle. It has already undergone the five-wave advance — from near $3,200 in December 2018 to around $69,000 in November 2021 — and is now in the midst of its three-wave correction, awaiting the formation of its final wave c. BTC/USD weekly price chart featuring the ongoing Elliott Wave Cycle. Source: TradingViewConsidering the next wave c appears around the 200-day EMA, it could mean BTC will hit levels around $25,500.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
Avalanche price rallies 20% after report reveals $25M inflows into AVAX investment vehicles

Avalanche price rallies 20% after report reveals $25M inflows into AVAX investment vehicles

Uverejnil používateľ | feb 23, 2022 |

Avalanche (AVAX) rallied by around 20% in the last two days as a new report revealed millions of dollars flowing into AVAX-based investment products.Penned by CoinShares, an institutional crypto fund manager, the report highlighted that Avalanche-based investment vehicles attracted about $25 million in the week ending Feb. 21, the second-biggest inflow recorded in the said period after Bitcoin’s (BTC) $89 million. Flow of assets. Source: Bloomberg, CoinSharesIn contrast, Ether (ETH), Avalanche’s top rival in the smart contracts sector, witnessed an outflow totaling $15 million. On the whole, Avalanche and similar cryptocurrency investment products attracted around $109 million, recording their fifth week of positive inflows in a row.AVAX rebounds against macro headwindsInterestingly, the capital injection came despite macro headwinds across the riskier assets, led by the ongoing conflict between Russia and Ukraine, which has injected fear into both traditional and crypto markets. As a note of warning, CoinShares also stressed that inflows into Avalanche investment vehicles should not be treated as a signal of a “broader appetite for the altcoin.” Nonetheless, AVAX price went higher after the firm’s report went live on Feb. 22.Avalanche surged to $82.50 from $67 between Feb. 22 and Feb. 23, returning paper profits of around 22% and reentering the top-ten cryptocurrencies by market cap. In comparison, Bitcoin and Ether rallied up to 8% and circa 10.5% in the same period.AVAX/USD four-hour price chart. Source: TradingViewNonetheless, AVAX’s recovery trend showed signs of exhaustion after testing $80 as resistance, as shown in the chart above.Technical outlook aheadThe latest buying spree in the Avalanche market surfaced also as AVAX tested its 200-day exponential moving average (200-day EMA; the blue wave) as support. Meanwhile, the red area, which served as a capitulation zone in September-October 2021, offered an additional floor for investors to accumulate, as shown in the chart below.AVAX/USD daily price chart. Source: TradingViewConversely, AVAX underwent a minor pullback move after testing its 50-day EMA (the red wave) as resistance. The move left the price trapped between the 50-day EMA and the 200-day EMA, indicating a short-term bias conflict among bulls and bears. Related: Avalanche correction risk rises after AVAX price soars 80% from January lowsBut from a broader perspective, AVAX has been trending lower since it topped out near $150 in November 2021, in a parallel descending channel. Therefore, even a move above the 50-day EMA would have the Avalanche token face downside risks near the channel’s upper trendline.Similarly, a strong pullback below the current support provided by the 200-day EMA could increase AVAX’s potential to drop towards the channel’s lower trendline — roughly below $40. 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
Terra avoids Ukraine concerns rallying 18% in three days — Can LUNA price reach $200 next?

Terra avoids Ukraine concerns rallying 18% in three days — Can LUNA price reach $200 next?

Uverejnil používateľ | feb 23, 2022 |

Terra (LUNA) has fared better than its top crypto rivals when it comes to withstanding the negative market impacts of the ongoing Ukraine-Russia conflict.LUNA’s price rallied nearly 18% this week to over $58, more than Bitcoin (BTC), whose returns in the same period came out to be a little over 1.5%. Similarly, the Terra token did better than its rival Ether (ETH), which is up around 4% this week.Top ten assets and their performances across multiple timeframes. Source: MessariOver the weekend, Bitcoin fell below its psychological support level of $40,000 as fears of a possible Russian invasion of Ukraine dampened risk-on sentiment. It continued declining on Monday after Russian President Vladimir Putin recognized two self-proclaimed separatist republics in eastern Ukraine and ordered troops there.Data provided by CryptoQuant showed that the correlation between Bitcoin and the U.S. stocks reached an all-time high on Feb. 23, suggesting BTC had not been acting as a safe haven in the current geopolitical conflict.#Bitcoin and US stocks are highly correlated lately. It hits the all-time high today.Good News: $BTC is getting adopted by traditional institutions. Its ownership is changing by new players who trade stocks.Bad News: $BTC is not a safe-haven asset. For now. pic.twitter.com/cqoFNWruW9— Ki Young Ju 주기영 (@ki_young_ju) February 23, 2022Other cryptocurrencies also fell due to the Ukrainian crisis, with Ether falling by as much as 9.5% and XRP by 16.5% from their weekly WTD high of $2,760 and $0.80, respectively.VCs buy $1B worth LUNALUNA’s rebound move picked momentum after the Luna Foundation Guard (LFG), a nonprofit organization supporting the Terra blockchain ecosystem, announced Tuesday that it had raised $1 billion through the sale of LUNA tokens. buyers included Three Arrows Capital — a venture capital firm led by Ethereum-skeptic Su Zhu — and Jump Crypto, a trading group that earlier assisted Solana’s cross bridge platform Wormhole in replenishing their stolen $300 million.1/ The long awaited [REDACTED] 3 is here!The Luna Foundation Guard (LFG) has closed a $1 billion private token sale to establish a decentralized $UST Forex Reserve denominated in $BTC! — Terra (UST) Powered by LUNA (@terra_money) February 22, 2022

DeFiance Capital, Republic Capital, GSR, Tribe Capital, and many others also contributed to the LUNA buying round.LFG revealed that it would use the proceeds to build a UST Forex Reserve denominated in Bitcoin. In detail, UST (or TerraUSD) is an “algorithmic stablecoin” backed by LUNA reserves, such that when one mint a UST, they must burn LUNA to keep the stablecoin’s peg to the U.S. dollar intact. UST economic structure explained. Source: Murray RuddThe new reserves intend to keep UST stable especially during extreme market volatility, wherein LUNA prices might move erratically and disturb the stability it intends to offer to the UST token holders. “The UST Forex Reserve provides an additional avenue to maintain the stability of the peg in contractionary cycles that reduces the reflexivity of the system,” said LFG in a press release published Tuesday, adding that it could include other “major non-correlated assets” to the reserve in the future.Jump Crypto, Three Arrows, and other buyers won’t be able to sell their LUNA holdings in an open market for at least four years.Terra market outlookLast year, LUNA witnessed incredible price growth due to a boom in UST adoption. Data compiled by Messari showed that the Terra token rose 14,000% in terms of market capitalization while, at the same time, the supply of UST tokens surpassed $10 billion.UST supply vs. LUNA price. Source: Messari, Terra AnalyticsThe strong correlation between LUNA’s price and UST’s growth emerged after the implementation of the Columbus-5 upgrade. The technical tweak decreased LUNA’s liquid supply through increased burning and staking and increased the UST supply by expanding its cross-chain prevalence.Related: Cointelegraph Consulting: The bigger role of LUNA in TerraAt the end of 2021, the Terra network had burned about 89 million LUNA tokens (worth $5.32 billion at current exchange rates) while improving value capture based on the UST’s growth.”Economically, increases in UST demand simultaneously result in the expansion of the LUNA demand curve and contraction of the LUNA supply curve,” noted Will Comyns, a researcher at Messari, adding that increased UST demand would have a “great impact” on the LUNA supply and price. Excerpts:”If UST adoption continues to grow over time, it is possible that LUNA supply will become essentially fixed at some low level in the future. Burning 100% of seigniorage will dramatically accelerate the reduction of total LUNA supply over time.”Murray Rudd, an independent market analyst-cum-economist, noted that LUNA burning in conjugation with UST’s demand growth would boost its price to over $200 by the end of 2022 and $920 a year after that.12/ Now the main event – price projections (‘ci’=90% confidence intervals):31 Dec 2022 ($29.3-b UST market cap): $203 ($160-$278 ci);31 Dec 2023 ($70.8-b UST market cap): $920 ($732-$1,195 ci); and31 Dec 2024 ($154.8-b UST market cap): $7,575 ($4,441-$14,360 ci). pic.twitter.com/U4w0PSBu0M— Murray Rudd (@crypto_rudd) February 22, 2022

However, one of the flip sides of the bullish outlook is the long-term positive correlation between Terra and Bitcoin. Specifically, the correlation coefficient between the two assets was 40 points below zero on weekly timeframes this Wednesday.LUNA/USD weekly price chart featuring its correlation coefficient with BTC/USD. Source: TradingViewNonetheless, the metric remained positive through most of Terra’s history, suggesting that LUNA should continue mirroring the broader cryptocurrency market on lower timeframes. 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
Ethereum to $10K? Classic bullish reversal pattern hints at potential ETH price rally

Ethereum to $10K? Classic bullish reversal pattern hints at potential ETH price rally

Uverejnil používateľ | feb 23, 2022 |

Ethereum’s native token, Ether (ETH), could reach above $10,000 in the coming weeks as it paints what appears to be an “ascending triangle” technical pattern.Ether’s price technicals: Bullish signsAscending triangles are bullish continuation setups that appear during an uptrend. Analysts confirm their presence after the price rises upward inside a rising right-angle triangle structure, thus forming a sequence of lower highs on the lower trendline with resistance in place at the upper one. As the pattern develops, volumes typically drop. So far, Ether has been forming a similar upside pattern on its weekly chart. In detail, the triangle’s lower trendline has been acting as an accumulation range since the beginning of 2021, with high selling pressure at the upper trendline, as shown below.ETH/USD weekly price chart featuring ascending triangle pattern. Source: Wolf, TradingViewA basic tenet of ascending triangle patterns is that they can precede a significant price rally — by as much as the maximum distance between the upper and lower trendline — when measured from the breakout level. Applying the same characteristic to Ether’s ascending channel, Ether can undergo a decisive breakout toward $10,000. On higher timeframes, another technical pattern paints a bullish target of $4,000.Wolf, an independent market analyst, also anticipated Ether to rebound in the coming sessions, followed by an extended recovery move owing to a potential inverse head-and-shoulders pattern. $2542 has been HIT and providing some support. Hopefully we have another HL. $ETH https://t.co/5J5zBRODlb— Wolf (@IamCryptoWolf) February 23, 2022ETH price bull trap?The bullish triangle setup emerges as Ether holds its profit after bottoming out near $2,150 in January 2022. In doing so, ETH/USD has rallied by more than 25% in less than four weeks.But some analysts see the ongoing recovery rally in the Ether market as a bull trap — i.e., a reversal that could force traders on the wrong side of price action to liquidate their positions at unexpected losses. One of them is TheTreeTrader, hereto TT, a TradingView-based market commentator.Related: This bullish Ethereum options trade targets $3.1K ETH price with zero liquidation riskIgnoring Ether’s ascending triangle, TT focused on a downward sloping trendline acting as resistance since November 2021. Nonetheless, as ETH trades under the given price ceiling, its momentum indicators, mainly relative strength index (RSI), Moving Average Convergence Divergence (MACD) and Stochastic RSI, have been trending upward.ETH/USD daily price chart. Source: TradingView/TTAs a result, ETH has been confirming a bearish divergence between its price and momentum, a pattern that typically leads to a price reversal. If such a move occurs, TT noted that Ether’s price might fall to as low as $2,300.Conversely, a successful breakout above the descending trendline resistance would likely switch the Ether market bias to bullish, TT wrote.The concerns over Ether’s bull trap also remain due to its history of painting technical setups with an upside bias yet failing to deliver a breakout move. For instance, Ether hinted at forming a similar ascending channel pattern in October 2021, as Cointelegraph covered, with a breakout target of nearly $6,500 versus its then-current price of around $3,750. Nonetheless, the Ethereum token dropped toward $2,100 weeks later, invalidating the classic bullish continuation setup.Ethereum’s network growthDespite a mixed outlook, Ethereum’s network metrics tell an optimistic story.For instance, Ethereum attracted about 18.36 million new addresses to its network in 2021 at the pace of 1.53 million per month, reflecting steady user growth.Number of Ethereum addresses with a non-zero balance. Source: GlassnodeMeanwhile, Glassnode data showed the number of Ethereum addresses holding at least 1 ETH also reached its record high earlier in February, hitting 1.42 million on the ninth day of the month.Additionally, the number of non-zero addresses and those holding at least 0.1 ETH also climbed to a new high on Feb. 15, reaching nearly 75 million and 7 million, respectively.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
Solana's weekend bounce risks turning into a bull trap — Can SOL price fall to $60 next?

Solana's weekend bounce risks turning into a bull trap — Can SOL price fall to $60 next?

Uverejnil používateľ | feb 21, 2022 |

A rebound move witnessed in the Solana (SOL) market this weekend exhausted midway as its price dropped below the $90 level from a high of $96 on Feb. 21. In doing so, SOL price technicals are now risking a classic bearish reversal setup.Solana price risks dropping to $60Dubbed head-and-shoulders (H&S), the technical pattern emerges when the price forms three peaks in a row atop a common support level (called neckline). As it typically turns out, the pattern’s middle peak, called “head,” comes longer than the other two peaks, called left and right shoulders, which come to be of similar heights. The H&S pattern tends to send the prices lower—at length equal to the maximum distance between the head and the neckline—once they decisively break below its neckline. As a result, Solana, which has been forming a similar technical structure lately, risks sliding toward $60, or almost 30%.SOL/USD daily price chart featuring head-and-shoulders setup. Source: TradingView Interestingly, the H&S downside target, near $60, was also instrumental as support in August 2021, right before Solana’s price rally to its record high above $250.Bear flag increases downside risksThe risks of Solana undergoing a period of another major selloff have been also increasing due to a technical pattern called a “bear flag.”Related: Bottom ahead? Solana paints its first ‘death cross’ as SOL losses 50% in JanuaryNotably, SOL’s price has been breaking out of the bearish continuation setup. In doing so, it now risks falling by as much as the length of its previous downtrend, called “flagpole,” when measured from the point of breakout, as shown in the chart below.SOL/USD daily price chart featuring bear flag setup. Source: TradingViewAs a result, SOL’s bear flag breakout risks sending its price to $60 or lower, like the H&S pattern.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