Crucial Fundamental Data Shows Bitcoin Will Break Out of $10,500 Resistance

It’s been a tough past few days for Bitcoin.

In spite of the recent rally off the $8,600 lows that has brought BTC to $9,300, the market remains depressed. BTC is trading just under 10% shy of the May highs of $10,100. Altcoins are in a similar boat.

The bearish price action may unfortunately continue if Bitcoin fails to break past two key resistances that lie ahead.

Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His BTC, China ‘Bans’ Cryptocurrency Mining

Bitcoin Trapped Below Key Resistance Level, Or Two

Analyst Nunya Bizniz recently noted that Bitcoin is currently trading below a crucial resistance level at $9,200. The technical level he indicated marked three previous highs, one in July, one in August, and one in February of this year.

“The VWAP anchored to June 26th high has been formidable resistance. Flirting with it again. Note: All breaks above the AVWAP have always resulted in lower highs. A close above $9,944 would change that,” the analyst commented.

Bitcoin also remains below the crucial $10,500 level.

This level holds a similar importance to the level identified by Bizniz. Some, in fact, say that $10,500 is more important Bitcoin’s bull case than the VWAP.

The lead technical analyst at crypto research firm BlockFyre wrote:

“If Bitcoin gets over this. There isn’t much standing in the way of new all-time highs. They’d be on the horizon. Way less resistance than anything BTC overcame going from 3.7k to here. Would be a macro higher high confirmed. Don’t underestimate the implications!”

Another analyst shared the sentiment. He wrote in April that if Bitcoin manages to flip $10,500 into support, his bearish bias will flip bullish.

This is notable because the analyst in question is one who called for BTC to revisit the $3,000s and XRP the $0.10 range months before it did.

It Will Break Through, Fundamentals Show

The fundamentals suggest that Bitcoin will break through the two aforementioned resistances.

As reported by NewsBTC previously, BTC stands to benefit as the Chinese yuan slides against the U.S. dollar.

The recent tensions in Hong Kong and the subsequent global response have weakened the Chinese currency against other currencies. Against the dollar, the yuan is at lows not seen since the peak of 2019’s trade war.

Analysts say that this could be a boost to Bitcoin. Chris Burniske, a partner at Placeholder Capital, explained:

“If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.”

This is but one example of many other fundamental factors potentially boosting the flagship crypto.

While still a while away, Bitcoin breaking through the resistances will set this nascent market up for an even greater rally.

“The most bullish technical analysis event of this year will be breaking the $10,500 resistance. Once we do that, it is showtime,” an analyst said.

Related Reading: “Rich Dad Poor Dad” Author Continues to Promote BTC as Economy Worsens
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‘What Are You Smoking?’ Winklevoss Pans Goldman Sachs Bitcoin Bashing

Bitcoin (BTC) supporters have widely panned Goldman Sachs after it emerged that the banking giant does not consider it as a real asset class.

Materials from an investor call on May 27 revealed that the United States’ fifth-largest bank is dismissive of the largest cryptocurrency

Goldman wheels out legacy Bitcoin complaints

The main reason for the continued lack of attention, Goldman says, is that Bitcoin does not generate revenue flows for holders, for example, in the same way that stocks and bonds do. 

“We believe that a security whose appreciation is primarily dependent on whether someone else is willing to pay a higher price for it is not a suitable investment for our clients,” a related PowerPoint presentation states.

Along with other claims including high volatility, the criticism is nothing new, Bitcoin having faced years of identical scorn from the legacy banking sector. Just last week, wealth manager Peter Mallouk told CNBC that despite its recent returns, there was “no need” for any investors to buy Bitcoin.

“Cookiecutter arguments”

Goldman’s tone meanwhile riled some of the best-known figures in the Bitcoin industry and beyond.

Reacting, D-TAP capital founder Dan Tapeiro argued that the bank was simply concerned about its revenue stream.

“Goldman Sachs does not make fees when a client buys #bitcoin. Buying Btc is an implicit rejection of buying assets that Goldman Sachs sells upon which they make fees,” he wrote on Twitter

Buying btc is a rejection of the worldview they sell upon which they make fees. Long PTJ/Short GS EVERY TIME.

Gemini exchange co-founder Tyler Winklevoss meanwhile argued that the attention being paid to Bitcoin suggested a longer-term shift was underway.

“Crypto used to be where you ended up when you couldn’t make it on Wall Street,” he tweeted

The quality of Goldman Sachs’ recent research on #Bitcoin demonstrates that there has been a talent flippening. Today, Wall Street is where you end up when you can’t make it in crypto.

In another post, Winklevoss took issue with Goldman’s understanding.

“Me: What are you smoking? I thought Goldman was the bank on Wall Street for smart bankers,” he wrote.

Others simply reiterated that Bitcoin was immune to naysayers, as evidenced in recent years by high-profile criticism impacting the price less and less. 

“In all honesty most of their arguments were cookiecutter,” School of Arms Media CEO, John Bednarski summarized.

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OKEx Joins Coinpaprika to Release India Crypto Market Research Report

Cryptocurrencies are truly global in nature, and anyone anywhere with an internet connection and a wallet can make transactions without any external intervention. The second most populous country, India is one of the fastest-growing crypto markets with a huge potential waiting to be tapped. Recognizing the importance and an opportunity to further the cause of cryptocurrency across the world, OKEx has recently announced the launch of the India Crypto Market Research Report.

The world’s largest crypto spot and derivatives exchange have joined hands with Coinpaparika, a leading cryptocurrency market research platform to create what is going to be a series of reports focusing on various new markets. OKEx believes that the Indian market is driven by three forces – Immigrants, Finance, and Government policies. Being one of the top countries when it comes to foreign inward remittance, the first two driving forces take care of the demand side of things while policies bear a direct influence on crypto trading related services.

The CEO of OKEx, Jay Hao said, “India has always been a vibrant crypto market. Adopting its scene to our first market research report also conforms to the current growth pattern of the global cryptocurrency market.” He further added, “We are pleased to work with Coinpaprika to provide objective and neutral insights to the market, helping industry players, including crypto exchanges, traders, etc. to better understand the whole picture of this rapidly changing industry.”

According to the World Bank data, in 2019, Indians paid as much as USD 5.67 billion in remittance fees alone. Given that India is one of the nations with the highest inward remittance, the high cost of cross-border fund transfers has made people look for cheaper alternatives and cryptocurrencies figures on top of the list. The interest in cryptocurrencies has further increased as the exchange rate between INR and USD continues to rise, forcing people to find an intermediary to convert their currency to a more stable fiat.

Coinpaprika has witnessed an increase in the number of visitors from India researching and learning about cryptocurrencies. The increased interest follows the recent lifting of ban on banking services to crypto platforms earlier imposed by the Reserve Bank of India.

“Since the beginning of this year, we’ve seen many people from India coming to Coinpaprika to research and learn about cryptocurrencies. It’s not surprising to me, however Bitcoin and other cryptocurrencies solve many issues they are struggling as a nation. I believe that with the pace they have, we will see a new giant emerging soon in the cryptocurrency market,” said Matt Sorka, Marketing Director of Coinpaprika.

Incidentally one of the largest exchanges in India, CoinDCX offers DCXfutures through a strategic partnership with OKEx. Few other major exchanges include ZebPay and WazirX, which was acquired by Binance.

The India Crypto Market Research Report is available here

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Grayscale is Now Buying 1.5 Times the Amount of Bitcoin Being Mined

Crypto fund manager Grayscale Investments is accumulating Bitcoin at a rate equivalent to 150% of the new coins created by miners since the May 11 block reward halving

According to data published by independent crypto researcher Kevin Rooke, Grayscale has added 18,910 BTC to its Bitcoin Investment Trust since the halving, while only 12,337 Bitcoins have been mined since May 11.

Binance CEO Changpeng Zhao reposted the chart, commenting: “There isn’t enough new supply to go around, even for just one guy”.

Grayscale absorbs BTC supply

Last week, Rooke estimated that Grayscale had been buying Bitcoin at a rate equal to between 33% and 34% of new supply during the first quarter of 2020, having accumulated 60,762 BTC over 100 days

During the quarter, Grayscale also saw average weekly investment into its trust reach $29.9 million — comprising an 800% gain year-over-year.

In response to Rooke’s tweet publishing the figures, Grayscale founder Barry Silbert commented: “just wait until you see Q2.”

Rooke’s latest data indicates that Grayscale is now purchasing nearly double the number of coins per day on average — with Rooke’s post-halving estimate equating to 1,112.35 BTC per day, up from 607.62 BTC during Q1.

Grayscale sounds off on CBDCs

In a recent report published by Grayscale, the firm sought to rebuke analogies comparing Bitcoin to central bank-issued digital currencies (CBDC).

“CBDCs are sometimes viewed as synonymous to, or as replacements for, digital currencies like Bitcoin, but they represent a meaningful departure from the decentralized protocols inherent to many cryptocurrencies,” the report stated.

“CBDCs attempt to upgrade payment infrastructure while Bitcoin is an attempt to upgrade money. If CBDCs gain traction, they may actually bolster the value proposition for Bitcoin and other digital currencies,” Grayscale added.

The report echoed the sentiment of economist John Vaz, who recently told Cointelegraph that CBDCs comprise “a kind of rearguard action being fought by the central banks because they don’t like cryptocurrency”.

“Central bank digital currencies are probably more about tracking money than providing benefit,” Vaz observed.

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Two Key Reasons Why Bitcoin Must Clear $9,300 To Start A Strong Increase

Bitcoin avoided a major downtrend and recovered from the $8,680 support against the US Dollar. BTC price is trading above $9,000, but it must clear $9,300 to start a strong increase.

  • Bitcoin is up more than 4% and it climbed above the $9,000 resistance.
  • The price is trading well above the $9,100 level, but it is still facing hurdles near $9,300.
  • There is a rising channel forming with support near $9,100 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong increase if it settles above the $9,300 resistance zone.

Bitcoin Price Gaining Bullish Momentum

Bitcoin price formed a strong support base near the $8,680 level and recently started a decent recovery against the US Dollar. BTC price broke a couple of important resistances near $9,000 to move into a short-term positive zone.

Besides, there was a close above the $9,100 level and the 100 hourly simple moving average. The price traded close to the $9,300 resistance zone and traded as high as $9,287.

It is currently consolidating gains and trading above well above $9,100. An initial support is near the $9,145 level. It represents the 23.6% Fib retracement level of the recent rise from the $8,684 low to $9,287 high.

More importantly, there is a rising channel forming with support near $9,100 on the hourly chart of the BTC/USD pair. If bitcoin price breaks the channel support, it could dive towards the $8,980 support level or the 100 hourly simple moving average.

Bitcoin Price

Bitcoin Price

The 50% Fib retracement level of the recent rise from the $8,684 low to $9,287 high might also provide support near the $8,985 level.

On the upside, the main hurdle is near the $9,300 and $9,330 levels (the previous breakdown zone). Besides, the price failed to clear the $9,300 resistance zone in the past few days. These two reasons increase importance of the $9,300 resistance. A successful close above $9,300 could lead the price towards $9,500 and $9,550.

Fresh Decline in BTC?

If there is a clear break and close below the $8,980 support zone, bitcoin price is likely to resume its decline. The next support is seen near the $8,825 and $8,800 levels.

The main support this week is near the $8,680 level. A bearish close below the $8,680 level may perhaps open the doors for a larger decline towards $8,400 and $8,200.

Technical indicators:

Hourly MACD – The MACD is about to move into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently correcting lower from the 70 level.

Major Support Levels – $9,100 followed by $8,980.

Major Resistance Levels – $9,300, $9,330 and $9,500.

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Falling Wedge Breakout Propels Bitcoin Price Above Key Resistance at $9.2K

Within the past few hours Bitcoin (BTC) price managed to press through the $9,200 resistance level to $9,281. While the 2.58% gain may not be much to talk about, the move above the key resistance level is a step forward and the initial move to $9,180 closed the CME gap from last weekend.

Crypto market weekly price chart. Source: Coin360

Since dropping to $8,640 on May 25, Bitcoin price has gained 7% and this occurred as the S&P 500 and Dow both rallied higher this week. 

On Wednesday both indexes broke above their 200-day moving average, nearly reclaiming all of the losses caused by the coronavirus-driven correction that started in March. 

The sharp rallies in both markets also led analysts to suggest that the Dow is now “on track for its best week since the week ended April 8.”

BitMEX XBTUSD Liquidations. Source: TradingView

Data from Skew shows that as Bitcoin reclaimed $9,000 earlier in the day on May 27 approximately $18 million in XBT-USD short positions were liquidated. 

Traders will be closely watching to see if the top-ranked digital asset on CoinMarketCap can secure a daily close above the $9,200 level.  

Bitcoin 4-hour price chart. Source: Coin360

As shown by the 4-hour chart, Bitcoin price surged through the falling wedge pattern and in the short-term the price may pull back to retest $9,150 and recent resistance in the $9,000 to $8,800 range. After this bulls will be ready to take aim at $9,350, then $9,500.  

Bitcoin daily price chart. Source: Coin360

Altcoins also managed to post moderate 1-3 percent gains as Bitcoin price pushed through it’s key resistance level. Ether (ETH) rallied 2.57%, Bitcoin Cash (BCH) gained 2.37%, and Cardano (ADA) added 3.51%. 

According to CoinMarketCap, the overall cryptocurrency market cap now stands at $256.4 billion and Bitcoin’s dominance rate is 65.9%.

Keep track of top crypto markets in real time here

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4 Reasons Why the Bitcoin Price Is Prepared to Explode Towards $10,000

After holding under $9,000 for days on end, Bitcoin surged higher to hit $9,200 on Wednesday morning.

It was a small move in percentage terms but still notable in terms of its technical significance. $9,000, after all, has been defined as a key level for Bitcoin both technically and psychologically.

With the price breaking out once again, there is a confluence of signs suggesting Bitcoin could rally past its monthly high of $10,000 in the near future. Here are some of these signs.

Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His BTC, China ‘Bans’ Cryptocurrency Mining, Iran Pushs Crypto Mining Strategy

#1: Bitcoin Derivatives Market Flashes Bottom Indicator

One prominent trader remarked that the quarterly BTC futures on the OKEx exchange were trading below the spot price of BTC on Coinbase and Bitstamp. This took place this weekend when the asset fell to ~$8,800, the local bottom.

The difference between the two markets only consisted of a few dollars. Even still, each time the quarterly futures on OKEx have traded at a discount to the spot market, BTC has found itself at a local bottom.

Chart of Bitcoin and quarterly BTC futures from trader "RJ" (@RJ_killmex on Twitter)

Chart of Bitcoin and quarterly BTC futures from trader “RJ” (@RJ_killmex on Twitter)

Another signal the derivatives market recently flashed on the weekend was negative funding rates, often seen at the reversal of a bear trend.

#2: On-Chain Activity Still Bullish

Bitcoin’s network activity has remained strong in spite of the correction from the $10,000 highs.

Blockchain analytics upstart Santiment shared late last week that BTC’s Network Value to Transactions Ratio (NVT) remains “healthy.”

“In spite of BTC’s mild -4.4% downswing today, its NVT looks healthy, and our model is showing a semi-bullish signal. The amount of unique tokens being transacted on Bitcoin network is slightly above average for in May, according to where price levels currently sit,” blockchain analytics firm Santiment wrote in reference to the data seen below.


Chart of Bitcoin’s price against its NVT ratio from Santiment (@santimentfeed on Twitter), a blockchain analytics and sentiment data startup.

#3: Chinese Yuan Slides on China-US Tensions; Bitcoin Could Get Boost

Due to the global response to a new security law proposed for Hong Kong by the Chinese government, the yuan has continued to slide against the dollar.

The foreign currency recently reached lows not seen since the peak of the trade war. The yuan is being especially hurt by the expectation of U.S. sanctions that have been floated by officials and advisors.

Analysts say that this could be a boost to Bitcoin. Chris Burniske, a partner at Placeholder Capital, explained:

“If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.”

#4: Money Printing Continues

According to global markets tracker FXHedge, the Japanese government is looking to implement a stimulus package worth 117.1 trillion yen — $1.1 trillion.

Investors like Paul Tudor Jones — a hedge fund manager worth billions — believe that stimulus like that of Japan and others will cause monetary inflation. This could drive demand for scarce assets like Bitcoin and gold.

Related Reading: No, China Is Not Banning BTC Mining: Chinese Crypto Insiders
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Ethereum Gets Interoperability Boost With Ren Protocol’s RenVM Release

Ren, a decentralized finance protocol friendly to Ethereum that enables inter-blockchain liquidity, has announced the launch of the RenVM mainnet.

The company said that RenVM will bring cross-chain assets to the Ethereum ecosystem. This will begin first with the introduction of BTC, BCH, and ZEC, and later with other digital assets.

Non-Custodial Bitcoin Coming to Ethereum With RenVM

Interacting with other blockchain networks has been one of the longest-prevailing problems the Ethereum decentralized finance space has had to deal with. And while the smooth transitions between public blockchains are still a long way ahead, the goal has become a bit more attainable thanks to the launch of Ren Protocol’s core product.

The inter-blockchain liquidity provider has announced the mainnet launch of the Ren Virtual Machine (RenVM), a decentralized custody solution that allows the seamless movement of assets between blockchains.

While the Ren Protocol currently allows users to tokenize Bitcoin, Bitcoin Cash, and Zcash, Ethereum could soon see more mainstream cryptocurrencies used as collateral of Ethereum’s DeFi stack.

“Generic interoperability has been a thorn in DeFi’s side, and we’re thrilled that RenVM is now solving this problem by enabling cross-chain liquidity to crypto investors everywhere,” said Taiyang Zhang, CEO and co-founder of Ren.

The Company Has Big Plans For the Ren Protocol

According to the announcement, the company seems to be trying to get ahead of the revolution that is about. Loong Wang, the CTO and co-founder of Ren, said that Ren is setting out to provide a “catch-all utility” for the next generation financial system where blockchain interoperability is the norm.

“Our goal is for RenVM to function as a bridge between not only Bitcoin and Ethereum, but any imaginable pair of blockchain-based tokens, including stablecoins like Libra and China’s digital yuan,” he said. 

The company’s core product, RenVM, will act as a decentralized custodian of various crypto assets. For each token it holds, it mints another that is represented on the Ethereum blockchain in the form of an ERC-20 standard token. This approach, while currency applied only to the Ethereum ecosystem, can be applied to other smart contract protocols such as Polkadot and Tezos. 

In-house advancements made to the Secure Multi-Party Computation (sMPC) will allow users to move assets to and from any blockchain without the need for a centralized mechanism or a permissioned system, the company explained. 

The protocol’s native token, REN, has reacted strongly to the mainnet launch. It began a slow and steady rise in the first week of May, as holders most likely anticipated a significant price movement once the RenVM launched. The coin saw its price increase by more than 50% this month, rising from $0.068 on May 1 to $0.103 on May 27.

Graph showing REN’s price from Apr. 28 to May 27

Graph showing REN’s price from Apr. 28 to May 27. (Source: CoinMarketCap)

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Analyst Who Called Bitcoin Drop to $3,000s Expects Another Brutal Bear Market

Bitcoin has rallied strongly since the $3,700 lows established in March. From the bottom of the crash, the cryptocurrency is now up just shy of 150%.

Although this upswing has convinced many in the industry that the bear market is over, some beg to differ. Prominent analysts and commentators say that the cryptocurrency has a chance at retesting the $3,000s.

Backing this prediction, they cite simple technical factors and the looming specter of a deeper recession in the global economy.

Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His BTC, China ‘Bans’ Cryptocurrency Mining

Bitcoin Poised to Plunge Towards $3,000s

Earlier this year, a prominent trader called for Bitcoin to fall to the $3,000s and for XRP to reach $0.11. At the time, this call was laughed off, as the cryptocurrency market was surging higher.

The trader has since been proven correct as Bitcoin, XRP, and other cryptocurrencies took a nosedive in March due to a worsening global economy.

While BTC has since recovered, the same trader still expects Bitcoin to correct even lower.

He indicated in the chart below that he still sees a scenario where the leading crypto falls to $2,000, and maybe even as low as $1,000.

Chart from il Capo of Crypto

The calls for an extension to the Bitcoin bear market have been echoed by Ross Ulbricht.

Ulbricht is a very early cryptocurrency adopter that is known for running the Silk Road marketplace.

He explained in a Medium post titled “Bitcoin by Ross #9: A Strong Signal for Lower Prices” that Elliot Wave analysis suggests BTC is in the second phase of a multi-year bear market.

Elliot Wave is a form of technical analysis that indicates markets move in predictable wave phases due to investor psychology.

Ulbricht, who is also an early trader according to some accounts, suggested that Bitcoin could return to the $2,000s or even $1,000s by June or July, or well into 2021.

Related Reading: The $90 Million Bitcoin Pizza Story Has an Unexpected Silver Lining

The Rally on the Other Side Will Be Huge

Despite the expectations from prominent market participants of downside, the consensus is that the rally on the other side will be large.

Ulbricht, for instance, wrote that the sky is the limit for Bitcoin in the long run:

“I am still bullish long-term… The point is — long term — the sky is the limit. The remainder of wave II and the start of wave III will seem like insignificant fluctuations by the time wave III is under way. Decades from now, anything below $20,000 will seem cheap.”

There are fundamental reasons analysts have to be this optimistic.

Tuur Demeester, the founding partner of Adamant Capital, recently explained that the money-printing by governments is making $50,000 Bitcoin possible.

The idea goes that with there more fiat money in the system than ever before, BTC stands to greatly benefit due to its scarcity.

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Ethereum is Flashing Signs That a Sizable Bull Run is Looming

Ethereum has seen some rather lackluster price action in recent times, hovering around the $200 level as its buyers and sellers largely reach an impasse.

This price action has not been emblematic of the cryptocurrency’s underlying fundamental strength, however, and one analyst is noting that there are a few major factors that suggest a massive bull trend exists just around the corner.

This trend comes as analysts note that the cryptocurrency could also be strong from a technical perspective as well, with one even offering a lofty near-term price target for the cryptocurrency at $250.

Here are the Fundamental Factors That Suggest Ethereum is on the Cusp of a Massive Uptrend

Although Ethereum’s price action has been rather lackluster as it hovers within the lower $200 region, there are a few key fundamental developments that suggest the crypto is poised to see a major uptrend in the near-term.

Spencer Noon, the Head of DTC Capital, spoke about this in a recent tweet thread, explaining that he sees a host of factors that signal ETH is poised to rally.

Of all the factors he discusses, two of the most bullish – in terms of direct correlation to the crypto’s price action – can be seen while looking towards its institutional inflows and massive net outflow of ETH away from exchanges.

With regards to institutional adoption, Noon explains that the growth of the Grayscale Ethereum Trust (ETHE) over the past three weeks shows that institutions are either investing in ETH, or are locking up their existing holdings at a rapid pace.

“1 million new shares of [Grayscale Investment’s] ETHE have been issued in the past 3 weeks – a sign that institutions are either investing in ETH or locking up their existing holdings at a pace of roughly $1 million per day,” he explained.

Noon also points to the massive outflow of ETH away from exchanges as a reason why the crypto is fundamentally strong, noting that this is a sign of accumulation.

“Post-Black Thursday (March 12) there has been a net outflow of ETH from exchanges, with 62% of days showing net outflows – a sign of accumulation,” he said while pointing to the below chart.


Image Courtesy of Spencer Noon

Where Could This Potentially Imminent Uptrend Lead ETH’s Price?

As for how high this potential uptrend could lead Ethereum, one analyst recently noted that he is watching for a movement up to $250.

This target is labeled on the chart seen below, and it appears to coincide with a descending trendline that has been formed in the time following the cryptocurrency’s rally to highs of $290 in mid-February.


Image Courtesy of Galaxy

In order for Ethereum to push to these highs, it is imperative that the aggregated cryptocurrency market garners greater upwards momentum.

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