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Crypto News Updates

2 Key Reasons Why Analysts Expect a Strong Bitcoin Breakout Here

  • Bitcoin has finally begun to move higher after much consolidation over the past week.
  • The cryptocurrency trades for $36,000, having moved 3% higher in the past day.
  • The cryptocurrency is likely preparing for a stronger breakout, analysts say.
  • Bitcoin Jack shared that Bitcoin is on the verge of breaking past two key resistance levels on a daily time frame, assuming the daily candle closes around current levels.
  • MicroStrategy is hosting a Bitcoin even that could drive even more capital into this nascent market.

Bitcoin Prints Clear Breakout

Bitcoin has finally begun to move higher after much consolidation over the past week. The cryptocurrency currently trades for $36,000, its highest price in a number of weeks (discounting the Elon wick) after the coin fell from $42,000 to $30,000 earlier this year in January.

Bitcoin is up 2% in the past 24 hours as it begins to trend higher.

Analysts think that this price action may be building to a stronger breakout in the coming days.

A prominent crypto-asset analyst shared the chart seen below just recently. The chart shows that Bitcoin is breaking past two key resistance levels that formed at the highs seen earlier this year. The analyst that shared this chart, Bitcoin Jack, wrote on what is seen:

“Pending daily close this is bulls scoring one point closer to a homerun.”

Image

Chart of BTC's price action over the past few weeks with analysis by Bitcoin Jack. Source: BTCUSD from TradingView.com

The analyst has a good track record when it comes to analyzing the space. He correctly predicted in March 2020 that Bitcoin would undergo a V-shaped reversal that would take it back toward the $10,000 range by June. He also accurately predicted further breakouts later in the last year.

MicroStrategy Effect

The MicroStrategy effect is likely to drive BTC higher as well.

The firm is hosting an online event in the coming days to discuss how firms across the globe can integrate Bitcoin into their businesses, whether that’s from a financial investment perspective or maybe from a payment perspective. CEO Michael Saylor said on the matter:

“If you are interested in the legal considerations firms face while integrating #Bitcoin into their corporate strategy, you are not alone. We have professionals from more than 1400 firms joining us tomorrow for this discussion. There is still time for your legal team to attend.”

He previously stated that there will be thousands of executives attending this event:

“We’re going to have thousands of executives, officers…directors, & advisors of corporations coming together in the first week of February. They all want to figure out how to plug #bitcoin into their balance sheet or their P&L…We’re going to open source it.”

This event could result in billions more being allocated from the traditional finance world to crypto.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

Source: Bitcoinist News

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Crypto News Updates

Mr. Beast Tweets About Bitcoin to His 10 Million Twitter Followers

  • Bitcoin has done extremely well over the past few months in terms of its price action.
  • The cryptocurrency shot to all-time highs above $40,000 earlier this month.
  • The cryptocurrency now trades for $32,500 after some consolidation following the strong rally.
  • This price action has drawn the cryptocurrency some attention from prominent investors and celebrities.
  • One of the latest prominent names in media to take note of Bitcoin is Mr. Beast, the Youtuber.
  • Mr. Beast recently tweeted about Bitcoin following lots of mainstream discussion about the asset.

Bitcoin Gets Attention From Mr. Beast Yet Again

Bitcoin has done extremely well over the past few months. Ever since bottoming at $3,500 in March 2020, the cryptocurrency has been on a steady path higher, pushing to new all-time highs above $40,000 this past month.

The cryptocurrency now trades for $32,500 after some consolidation following the strong rally.

This price action has drawn the cryptocurrency some attention from prominent investors and celebrities. One of the latest prominent names in media to take note of Bitcoin is Mr. Beast, the Youtuber.

The entertainer, who sports over 50 million subscribers on Youtube, recently tweeted about Bitcoin to his close to 10 million followers on Twitter. He asked if his followers hold any crypto assets other than BTC.

Out of the 640,000 that responded, more than half, nearly 60% in fact, said that they don’t hold cryptocurrencies aside from Bitcoin.

His recent tweet caused quite a stir within the crypto community, with some commenting under the post to try and get him to engage with the space.

Institutional Capital Is Arriving As Well

While some think that the recent retail and more broadly mainstream interest is a sign of a market top, there is Wall Street capital entering Bitcoin as well. Billionaire investor Paul Tudor Jones commented on Bitcoin late last year about the asset’s potential upside in the years ahead:

“I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it’s got a long way to go.”

He explained that BTC is most likely going to be the best trade against inflation:

“The reason I recommended bitcoin is because it was one of the menu of inflation trades, like gold, like TIPS breakevens, like copper, like being long yield curve and I came to the conclusion that bitcoin was going to be the best inflation trade.”

Tudor Jones is believed to be up over 100% on his position in the cryptocurrency’s futures.

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Mr. Beast Tweets About Bitcoin to His 10 Million Twitter Followers

Source: Bitcoinist News

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Crypto News Updates

All Eyes on the U.S. Dollar as Bitcoin Attempts to Recover

  • Bitcoin fell extremely hard over the weekend and into Monday after reaching $42,000 last week.
  • The cryptocurrency’s drop came as the U.S. dollar index bounced around 0.7%.
  • The recovery taking place now also coincided with a drop in the U.S. dollar index.
  • Analysts say that it’s important to keep an eye on this market moving forward.

Bitcoin Could Lose Even More as U.S. Dollar Hits Key Level

Bitcoin fell extremely hard over the weekend and into Monday after reaching $42,000 last week. The cryptocurrency fell from those aforementioned highs to $30,000 in a massive flush lower on Monday, liquidating billions worth of positions.

The drop in the market was based on macro trends, some have indicated.

Bitcoin’s drop on Monday coincided with weakness in the strength of foreign currencies, which had trended higher against the U.S. dollar over the past few months. The U.S. dollar index bounced around 0.7%, which is a large move for a market worth trillions.

BTC’s recovery over the past few hours has also coincided with a drop in the U.S. dollar index.

Many analysts say it is now important to watch where this index goes next to determine the overall direction of the crypto market.

One analyst shared the charts below just recently, noting that Bitcoin’s next move is likely to be determined by the U.S. dollar.

The U.S. dollar rally comes in spite of Joe Biden, the incoming President, calling for additional stimulus for the American people. He said that he wants trillions worth of stimulus for the economy, along with $2,000 stimulus cheques for the people.

The rally in the U.S. dollar may come as a result of Biden’s election win being confirmed by Congress, which may have dissuaded fears of further conflict in the Capitol.

 

One Headwind Is Gone

It’s worth noting that one key headwind is gone for Bitcoin, which could fuel a further rally higher.

Willy Woo, an on-chain analyst, said after the correction that the drop was seemingly a byproduct of Coinbase going down. He explained on the matter:

“Spot market sell off started around $38k, then Coinbase partially failed, not registering buys, causing its price to go $350 lower than others, this pulled down the index price that futures exchanges use to calculate leverage funding, wrecking bearish havoc on speculative markets.”

Coinbase is now back up and the funding rate/futures market has restored to some sense of normality.

Bitcoin could resume its ascent higher as this bearish factor is gone.

Other trends that could boost the cryptocurrency include latent institutional buying demand. Analysts commented online that there was a vast amount of accumulation by larger players during today’s drop, as evidenced by order book trends and on-chain data.

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All Eyes on the U.S. Dollar as Bitcoin Attempts to Recover

Source: Bitcoinist News

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On-Chain Analyst Explains What Caused Bitcoin to Plunge from $38k to $30k

  • Bitcoin faced an extremely steep correction on Sunday and Monday after last week’s surge to new all-time highs.
  • The cryptocurrency fell as low as $30,000 after peaking at $42,000 last week.
  • A large portion of Bitcoin’s drop was apparently a byproduct of Coinbase’s downtime, Willy Woo says.

Monday’s Bitcoin Correction

Bitcoin faced an extremely steep correction on Sunday and Monday after last week’s surge to new all-time highs. On Monday morning, the cryptocurrency plunged as low as $30,000 on top exchanges amid the volatility, over 25% below the $42,000 highs.

As of this article’s writing, the cryptocurrency has recovered to $35,000. Bitcoin recovered as buying volume spiked, according to analysts.

While the cryptocurrency seemingly remains on a path of growth, many market participants were caught off guard by the move lower. According to ByBt, more than $2.8 billion worth of crypto futures positions were liquidated during the drop.

What Happened During the Drop?

Willy Woo, a crypto-asset analyst focused on on-chain trends, recently broke down what happened.

He said that the vast brunt of the Bitcoin market correction was likely a byproduct of Coinbase going down, which resulted in algorithmic traders/bots failing to function. Woo explained:

“Spot market sell off started around $38k, then Coinbase partially failed, not registering buys, causing its price to go $350 lower than others, this pulled down the index price that futures exchanges use to calculate leverage funding, wrecking bearish havoc on speculative markets.”

The price of Bitcoin on Coinbase, along with the prices on other exchanges, strongly diverged during the downturn as each exchange faced different service outages. Woo suggests that Coinbase’s outage resulted in algos dragging the price lower due to high funding rates:

“Unlike previous crashes in the past 2 years, where over-leveraged markets lead by trader liquidation, this one started on spot markets, then was greatly amplified by a single exchange partially failing, yet did not turn itself off for the good of the ecosystem.”

For context, the funding rate is the fee that long positions pay short positions on a reoccurring basis. It is calculated by weighing the price of the futures market to the underlying index, which often includes Coinbase.

High funding rates are often indicative of an overextended market primed to correct lower.

Although the crash has stopped and Coinbase is now up and running, the Bitcoin funding rate on top platforms remains overextended. Per ByBt, the funding rate of the BitMEX market is at 0.1% per eight hours, which is overextended in most cases.

Bitcoin is not yet in the clear as a result of these funding rates, some say. Yet due to the volume on the uptake, analysts are starting to lean bullish once again.

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On-Chain Analyst Explains What Caused Bitcoin to Plunge from $38k to $30k

Source: Bitcoinist News

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Bitcoin Reclaims Key Support Level After Drop to $34,500

  • Bitcoin faced an extreme correction earlier today.
  • Over the span of 12 hours, the cryptocurrency plunged from the $41,000 region to lows on spot exchanges close to $34,000 and lows on futures exchanges close to $35,000.
  • BTC lost over 15% over the span of this rally.
  • The cryptocurrency has since bounced swiftly to the upside, reclaiming a key support level per analysts.

Bitcoin Reclaims Key Support Level After Flash Crash Lower

Bitcoin faced an extreme correction earlier today. Over the span of 12 hours, the cryptocurrency plunged from the $41,000 region to lows on spot exchanges close to $34,000. The cryptocurrency lost over 15% over the span of this rally.

Many thought this was the start of a larger correction. Even when the cryptocurrency was near lows, the funding rates and premiums seen on futures exchanges for BTC were extremely high, implying a continuation to the downside was becoming increasingly likely.

Bitcoin swiftly bounced to the upside, though, as buyers stepped in all at once.

The cryptocurrency has since reclaimed a key support level, according to technical analysts.

One crypto-asset trader shared the chart below after the recovery, noting that Bitcoin had reclaimed a key technical support level on its 15-minute chart. While this is not the end all and be all of support levels, analysts are optimistic that this technical occurrence could help boost the ongoing recovery.

Bitcoin does face some overhead resistance, though, that could put an end to the ongoing recovery.

Image

Chart of BTC's price action over the past few days from crypto asset trader and chartist Pierre (@Pierre_crypt0 on Twitter).
Source: BTCUSD from TradingView.com

Time to Cool Down

On-chain data may show, though, that the ongoing rally is starting to become overheated and that a short-term correction or medium-term consolidation could follow suit. Philip Swift, an on-chain analyst, recently noted that the cryptocurrency is reaching overheated levels per one key on-chain-focused indicator. Referencing the chart below, he said on the matter:

“I am starting to feel that the market is approaching overheated levels now. One data point to observe is MVRV Z-score, which looks at extremes in the data sets between Market Value and Realised Value… We can see that when the z-score enters the red zone it signals a market top. We are not there yet but a few more parabolic days up for price and we will be.”

Bitcoin

Bitcoin has long faced corrections during bull markets. In 2017, the coin regularly pulled back by 20-30 percent before moving to new all-time highs.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

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Bitcoin Market Is In Bubble Phase, Says Economist on CNBC

  • Bitcoin remains up over 100% in the past six weeks despite the ongoing correction.
  • Many think that BTC will continue higher in the weeks ahead.
  • One market economist is bearish on Bitcoin, though.
  • He says that the cryptocurrency is likely extremely overvalued at current valuations, arguing that it could be the biggest bubble in markets right now.

Bitcoin Likely in Bubble Phase, Argues CNBC Guest

Even after a correction from $34,000 to $32,500, Bitcoin remains up over 100% in the past six weeks. The cryptocurrency traded at new all-time highs on Friday as institutional capital continued to flow into BTC.

Many in the space believe that this rally is predicated on strong fundamental trends such as the devaluation of the U.S. dollar. There has also been a large amount of Bitcoin accumulated by both retail and institutional players.

Yet not everyone is convinced that the market will continue to shoot higher.

David Rosenberg, the chief economist of Rosenberg Research, recently commented that he thinks global markets are overextended. On the stock market, skipping Bitcoin for now, the investor stated:

“Based on our [stock market] valuation work, we are anywhere from 20% to 30% overvalued based on a whole bunch of different metrics.”

He echoed this bearish sentiment for Bitcoin, arguing that it may be the biggest overextension/bubble in markets today.

“The parabolic move in bitcoin in such a short time period, I would say for any security, is highly abnormal.”

Despite his skepticism about Bitcoin, he did say that he remains a gold bull. He noted that the precious metal has around 20% the volatility that Bitcoin does and may make it a better safe-haven asset as a result.

 

Many Beg to Differ

While there are a number of other economists that think Bitcoin is overbought, the overall BTC trajectory remains bullish according to prominent Wall Street investors.

Although not entirely representative of current price action, Grayscale’s Bitcoin Trust added over 12,000 BTC on December 22nd.

There is also news indicating that prominent Wall Street funds have continued to siphon capital into Bitcoin.

In late December, MicroStrategy confirmed that it had acquired around $650 million worth of BTC from the open market. That buy is now up by over around $300 million, complementing its existing holdings in the leading cryptocurrency.

This move was not entirely unexpected.

Travis Kling, the founder of Ikigai, commented on Bitcoin’s price action on December 26th:

“It’s rapidly becoming clear that the pain trade in #Bitcoin is much higher. It’s apparent that institutions are coming in w/ big checks. Much of that capital still has to “get through docs” and ‘investment committee’. They thought they’d buy $20k. They’ll be lucky to buy $30.”

Whether or not this upward price action continues, though, remains to be seen for the time being.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

Source: Bitcoinist News

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Bitcoin Price Shoots to $34,000 Despite Saturday’s Drop to $30,000

  • Bitcoin trades at $33,950 as of this article’s writing.
  • The cryptocurrency traded above $34,000 just minutes ago and is attempting to consolidate around the current price points.
  • This rally comes despite a strong drop earlier on Saturday that took the BTC price as low as $30,000 on top exchanges.

Bitcoin Shoots to $34,000

Bitcoin’s price just shot to $34,000 despite plunging as low as $30,000 earlier today. The leading cryptocurrency trades for $33,950 as of this article’s writing and is up over 15% in the past 24 hours.

Bitcoin’s latest leg higher comes after a strong drop earlier today, as mentioned earlier.

After peaking at $33,000 in the morning, BTC plunged from $33,000 to $30,000 in the span of two hours.

Bitcoin quickly rebounded as buyers defended the key $30,000 support level. The cryptocurrency has been increasing ever since that bounce and now trades at new all-time highs.

Altcoins are continuing to outperform BTC. Ethereum is up 8.5% in the past 24 hours while most other altcoins have gained only a handful of percent.

Chart of BTC's price action from TradingView.com

Not the Only One That Thinks So

This rally is predicated on a strong increase in both retail and institutional volumes for Bitcoin. Dan Morehead, CEO of Pantera Capital, recently stated that the amount of BTC that is being purchased by PayPal users is outstripping the new supply of the coin:

“When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins… In the last seven months, we’ve had two huge shifts — one in demand, one in supply — both upwards. On the demand side, we’ve had public companies like PayPal enter the market. That shifts the demand curve much higher. At the same time, the supply of newly issued BTC was cut in half in May — as part of the every-four years Halving of bitcoin issuance. Fewer BTC are available. We titled our previous investor letter, Bitcoin Shortage. The price acts like there’s a shortage.”

Bitcoin is expected to move higher as this demand outstrips supply.

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Bitcoin Price Shoots to $34,000 Despite Drop to $30,000

Source: Bitcoinist News

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3 Key Reasons Why Bitcoin Price Just Exploded Past $32,000

  • Bitcoin moves past $33,500 for the first time ever after moving to $30,000 on new year’s day.
  • BTC is now up by over 10% in the past 24 hours, pushing the altcoin market higher.
  • There are a number of supply-demand factors accentuating this rally.
  • Analysts think that the market may be nearing a blow-off top.

Bitcoin Moves Past $32,500

Bitcoin just moved past $32,500 for the first time ever just minutes ago. As of this article’s writing, the leading cryptocurrency is trading at $32,600 on the top spot exchanges.

The altcoin market is also moving higher with Bitcoin’s latest leg higher. Ethereum is up 6% in the past 24 hours, moving to new yearly highs at $772.

Analysts are optimistic that altcoins have room to rally but some fear that the BTC market is on the verge of reaching a top.

Bitcoin’s latest leg higher come as the U.S. dollar has pushed down to multi-year lows as the latest stimulus bill was passed. This is one key reason why analysts think that Bitcoin’s price action has been so skewed to the upside over recent months.

Chart of BTC's price action over the past two months from TradingView.com

Other Bullish Factors

Also influencing this rally is a strong institutional bid for Bitcoin, analysts say, coupled with a lack of selling pressure on top exchanges.

The chart below was recently shared, which shows that Bitcoin is about to enter a period where there is little selling pressure on the order books. As BTC is now in price discovery, investors will have to speculate as to where they should put sell orders to secure profits.

Bitcoin is also moving higher as a result of short liquidations. Sites that track the short liquidation metric have indicated that in the past hour, more than $100 million worth of BTC short positions has been liquidated.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

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Winklevoss Twins Double Down on $500,000 Bitcoin Call

Bitcoin has enjoyed an extremely strong rally over the past few months that has brought it from the $10,000 region to $29,000. Since the start of the year, the cryptocurrency is up even more.

While many investors are already up on their investment in BTC, there are still expectations of upside on a macro scale. This comes in spite of growing concerns of a short-term correction as the market may have become overheated after surging 100% in just a month’s time.

Bitcoin Could Hit $500,000

Tyler Winklevoss of Gemini recently commented on his long-term expectations of Bitcoin’s price action. He doubled down on a prediction that he and his twin brother made, which states that BTC could hit $500,000 in the years ahead.

Here’s why the duo, who collectively run the Gemini crypto exchange, think so.

In this oft-cited report, the two explained that Bitcoin is likely to be a better investment than gold over time. In fact, they think that BTC will surpass gold’s market capitalization over time as capital floods from that market to this new one:

“Bitcoin has already made significant ground on gold — going from whitepaper to over $200 billion in market capitalization in under a decade. Today, the market capitalization of above-ground gold is conservatively $9 trillion. If we are right about using a gold framework to value BTC, and BTCcontinues on this path, then the bull case scenario for bitcoin is that it is undervalued by a multiple of 45. Said differently, the price of BTCcould appreciate 45x from where it is today, which means we could see a price of $500,000 U.S. dollars per BTC.”

They have added that there is immense value in a capital flight from traditional investments into Bitcoin over time, which could cause a move over $500,000:

“If central banks start to diversify their foreign fiat holdings even partially into bitcoin, say 10%, then 45x gets revised upward towards 55x or $600,000 USD per bitcoin, and so forth.”

Better Than Gold

Many agree with the Winklevoss Twins that Bitcoin is superior to gold as an investment in the current macroeconomic environment.

Rick Rieder, CIO at the world’s largest asset manager, said in an interview that he thinks Bitcoin does have some staying power and will perform better than gold. He said that this may largely be due to the amount of millennial and younger investors that may prefer a BTC investment over a similar one in gold.

Other prominent asset managers have touched on this as well, arguing that BTC represents one of the best investment opportunities today.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

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SkyBridge Capital Expects “Tidal Wave” of Capital to Hit Bitcoin

  • Bitcoin has undergone an extreme rally over the past three months, pushing to $28,000.
  • BTC now trades for $26,500 even after a slight correction.
  • Analysts believe that there will be a tidal wave of capital entering the cryptocurrency space that will boost prices even more.

Bitcoin Could Get Hit By Tidal Wave of Capital

Bitcoin has undergone an extreme rally over the past three months, pushing to $28,000. BTC now trades for $26,500 even after a slight correction.

Many attribute this rally to institutional capital. Namely, there have been large funds, corporations, and other firms in that class buying cryptocurrencies to diversify their portfolios.

Take the case of MicroStrategy, a business services company that bought $650 million worth of Bitcoin in and of itself. As reported by Bitcoinist, the company wrote at the time it made this purchase:

“TYSONS CORNER, Va.–(BUSINESS WIRE)–Dec. 21, 2020– MicroStrategy® Incorporated (Nasdaq: MSTR) (the “Company”), the largest independent publicly-traded business intelligence company, today announced that it had purchased an additional approximately 29,646 bitcoins for approximately $650.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $21,925 per bitcoin, inclusive of fees and expenses.”

According to a Skybridge Capital slide deck shared by Bitcoin investor Hanson Birringer, the investment fund expects a tidal wave of institutional capital to come into the Bitcoin space.

The slide deck shows that the firm’s investors think that Bitcoin will see maturation as an asset class. The slide deck specifically names the entrance of pension funds, RIAs, hedge funds, and other institutional investors.

Retail Demand Is Skyrocketing As Well

Retail demand for Bitcoin is shooting higher as well.

Dan Morehead, CEO of Pantera Capital, recently found that the amount of Bitcoin being purchased by PayPal users is likely skyrocketing to account for more BTC than there is mined each day:

“When @PayPal went live, volume started exploding. The increase in itBit volume implies that within two months of going live, PayPal is already buying more than 100% of the new supply of bitcoins… In the last seven months, we’ve had two huge shifts — one in demand, one in supply — both upwards. On the demand side, we’ve had public companies like PayPal enter the market. That shifts the demand curve much higher. At the same time, the supply of newly issued BTC was cut in half in May — as part of the every-four years Halving of bitcoin issuance. Fewer BTC are available. We titled our previous investor letter, Bitcoin Shortage. The price acts like there’s a shortage.”

This demand spike for Bitcoin could cause a shortage over time, analysts say, that will drive prices about $100,000 and beyond.

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Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

Source: Bitcoinist News