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Crypto News Updates

The Real Reason Behind Bitcoin Explosive Rally is Not Coinbase But Inflation

Bitcoin surged past $64,500 this week, shattering yet another record-high milestone after a month of downside consolidation, over sentiments that a fresh Wall Street listing of one of the leading crypto firms, Coinbase, would attract more wealthy investors to the booming sector.

Bitcoin reaches another lifetime high. Source: BTCUSD on TradingView.com

Bitcoin reaches another lifetime high. Source: BTCUSD on TradingView.com

But the flagship cryptocurrency borrowed its bullish cues from elsewhere, as well. On Tuesday, the US Bureau of Labor released March’s Consumer Price Inflation data, showing that the index rose by its most in nearly nine years, led by pent-up demand and rising fuel prices as the US economy continued to recover from pandemic-driven lockdowns.

Beating Expectations

The labor department noted that inflation rose 0.6 percent in March than February, making its quickest pace since February August 2012. According to Reuters’ poll, the outcome beat economists’ expectations of a 0.5 percent raise. Meanwhile, the headline inflation surged 2.6 percent against the expectations of a 2.5 percent raise.

Kathy Bostjancic, the chief US financial economist at Oxford Economics, said that inflation could rise to 3.5 percent this year.

US Consumer Price Index  12-Month Percentage Change. Source: US Bureau of Labor Statistics

US Consumer Price Index 12-Month Percentage Change. Source: US Bureau of Labor Statistics

Bitcoin behaves bullishly against inflation fears. The cryptocurrency’s massive upside move after its mid-March crash came on the prospect that the US dollar — with time — would lose its purchasing power. That was due to the Federal Reserve’s decision to slash down benchmark lending rates near zero while launching an unlimited bond-buying program to cushion the US economy from the pandemic-led recession.

Later, the Federal Open Market Committee ruled out that it wants to push inflation above 2 percent in the future. That further prompted investors to increase their exposure in the Bitcoin market thanks to its limited supply cap of 21 million tokens. Even firms like Tesla and MicroStrategy added billions of dollars worth of bitcoin tokens to their otherwise cash-based balance sheets.

Preparing Grounds for Bitcoin Adaption

Meanwhile, mainstream financial services saw potential demand for bitcoin from institutional investors. In turn, Morgan Stanley and Goldman Sachs announced crypto-enabled investment services for their wealthy clients. Global payment giant PayPal allowed bitcoin checkout on its legacy payment platform in addition to the option of buying, selling, and storing the cryptocurrency.

Bitcoin’s latest climb above $64,500 came on the heels of confirmed inflation growth.

Investors continue to watch whether the rising prices are transitionary or are here to stay. They attempt to realize how long the Fed could continue its ultra-accommodative stance, including a $120bn monthly purchase of government bonds and mortgage-backed securities. So far, the central bank has clarified that it does not wish to raise rates until 2024.

The stance remains long-term bullish for Bitcoin.

Photo by Jp Valery on Unsplash 

Source: Bitcoinist News

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Crypto News Updates

The Simplest Bitcoin Analysis as BTC/USD Refreshes Milestone High

A quick look into the world’s leading cryptocurrency Bitcoin and what’s ahead for it as it achieves another lifetime high.

And So It Goes, And So It Goes

In retrospect, the BTC/USD exchange rate reached $62,750 ahead of the European opening bell on Tuesday. Some traders really showed their conviction for an extended bullish bias in the Bitcoin market. The previous top, near $61,778, now looks less like resistance and more like support, preparing the price for another leg up towards $65,000, $70,000, and maybe even $100,000.

On the other hand, the prospect of traders securing profits near local tops offset upside convictions. As the bitcoin price rallies monumentally, it becomes riskier for some to buy it at sessional peaks. Bitcoin’s response to parabolic upside moves throughout its twelve-year lifetime has resulted in yearlong bear markets.

Of course, this time, Bitcoin appears more mature as an investment asset thanks to the influx of many corporates and financial services into the cryptocurrency sector. For instance, the cryptocurrency looks definitely overbought based on its technical indicator readings.

Bitcoin Relative Strength Indicator is above 70, altering about overvaluation risks. Source: BTCUSD on TradingView.com

Bitcoin Relative Strength Indicator is above 70, altering about overvaluation risks. Source: BTCUSD on TradingView.com

Nonetheless, any attempt to correct the bitcoin price by more than 30 percent from its sessional top prompts intervention from MicroStrategy, a Nasdaq-listed business intelligence firm now holding more than 91,000 BTC on its balance sheet.

The Lion Still Has Claws

The Michael Saylor company buys Bitcoin every time its price even attempts a bigger and better bearish breakdown. It even raised a billion dollars through private debt sale with a clear intention to use the proceed to buy bitcoin.

MicroStrategy’s last popular bid for the cryptocurrency was just shy of $59,500. So, from what it appears, the company won’t like it when retail traders/investors would want to take the prices anywhere below $59,500. That makes the level fundamental support, given Mr. Saylor manages to raise more funds to protect the support with another big BTC buyout.

But even if the CEO outright ignores a breakdown below $59,500, given MicroStrategy has almost more than doubled its bitcoin investments in the US dollar terms, the cryptocurrency expects to survive a bloodbath scenario by holding $59,000. Here’s what Crypto Cred, an independent market analyst, has to say about the next potential sell-off.

“We have a weekly [support] level at $59,000 […] On the daily timeframe, we can see – by the miracle of science — that that weekly level is also the daily level.”

Bitcoin holds $59,000 as support on daily charts. Source: BTCUSD on TradingView.com

Bitcoin holds $59,000 as support on daily charts. Source: BTCUSD on TradingView.com

So, for now, the $59,000-level, with some help from bitcoin superhero Mr. Saylor, are holding Bitcoin from going anywhere lower. Mr. Cred, however, mentions that a potential sell-off that leads the cryptocurrency below $59,000 would have it test the next levels near $57,000 and $54,000.

That’s all, folks!

Photo by Hello I’m Nik on Unsplash

Source: Bitcoinist News

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Crypto News Updates

Bitcoin Price Breaches $61,000 Ahead of Key Inflation Figures; What’s Next?

Key Bitcoin Price Outlook

  • The bitcoin price briefly surged above $61,000 on Tuesday.
  • The climb surfaced as a part of an upside weekly session, as traders’ appetite for safe-havens surged ahead of key US inflation data.
  • Technically, the cryptocurrency shied away from confirming a price breakout to the upside.

Bitcoin rallied above $61,000 on Tuesday.

The flagship cryptocurrency’s upside move was brief but left traders more confident about extended gains. Changpeng Zhao, the CEO of Binance, noted that the traffic volume peaked on their trading platform following Bitcoin’s spike. That indicated that more traders rushed to online exchanges to buy Bitcoin or sell it to secure short-term profits.

Michaël van de Poppe, an Amsterdam-based market analyst, hinted that traders would willingly buy Bitcoin at its fresh highs. The social media influencer, followed by more than 210,000 entities online, said in a tweet that the bitcoin price could log a new record peak on Tuesday.

Bitcoin Against Key Inflation Data

Calls for a higher bitcoin price comes from investors and traders who believe the cryptocurrency would become a global safe-haven asset against inflation. Rising consumer prices are one of the biggest fears investors have from the post-pandemic market. If the inflation runs higher than anticipated, it could tarnish asset values, limit buying power, and sap corporate margins.

Bitcoin believers project it as a hedge against rising inflation, citing its 21 million supply cap as a viable tool against the Federal Reserve’s relentless quantitative easing policy. Later on Tuesday, the March Consumer Price Inflation data expect to report a 0.2 percent spike in core inflation, according to economists surveyed by Dow Jones.

Meanwhile, the March headline inflation expects to hit 2.5 percent, up from 1.7 percent in February. It was 2.5 percent last in January 2020.

Consumer Price Index (all items) 12-month percent change. Source: US Bureau of Labor Statistics

Consumer Price Index (all items) 12-month percent change. Source: US Bureau of Labor Statistics

John Authers, senior editor for markets at Bloomberg, cited BCA Research’s Dhaval Joshi comments on Bitcoin in his recent opinion editorial.

Mr. Joshi stressed that the Bitcoin price has risen in the previous 12 months due to its anti-fiat features. It is popular because of its “libertarian anti-government ideas” and its simpler-to-procure talents — the latter has made bitcoin a viable competitor to shiny metal gold, another hedging asset but with poor performance on record against rising inflation fears.

Technicals Watch Fundamentals

At least Wall Street is taking notice. The past few months have witnessed the arrival of new investors in the form of Tesla, MicroStrategy, Square, and other corporates. They have also seen investment giants like Goldman Sachs and Morgan Stanley announcing new bitcoin-enabled investment products for their wealthy clients.

Meanwhile, PayPal has announced support for cryptocurrencies via its legacy platforms. Bank of New York Mellon will also launch a bitcoin-based custodianship service later this year. Payment processing services Mastercard and Visa are also experimenting with cryptocurrencies, with the latter having performed a stablecoin transaction atop its existing money transmission layer.

Bitcoin awaits ascending triangle breakout to the upside. Source: BTCUSD on TradingView.com

Bitcoin awaits ascending triangle breakout to the upside. Source: BTCUSD on TradingView.com

Technically, the bitcoin price has not confirmed a bullish breakout move yet. The cryptocurrency continues to trade inside a bullish continuation pattern, nonetheless, instilling hopes that it would rise by another $20,000 in the coming session.

Photo by Jp Valery on Unsplash 

Source: Bitcoinist News

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Crypto News Updates

Small Lawsuit Wins Pushes XRP Price Back to 2018 Highs; Pullback Ahead?

Key XRP Outlook

  • XRP almost hits $1.5 for the first time since January 2018.
  • The upside boost comes in the wake of small legal wins for Ripple Labs as it battles the US Securities and Exchange over a lawsuit.
  • Technically, the Ripple token has climbed to overvalued levels, requiring a neutralizing price correction.

XRP, the de-facto settlement token atop the Ripple blockchain, has become traders’ eye-candy all over again after a series of blunders.

The cryptocurrency surged by up to 780 percent after bottoming out at $0.17 in December 2020, hitting almost $1.50 on the BitStamp exchange, its highest since January 2018. Meanwhile, on a year-to-date timeframe, it was up 591 percent as of this week’s open.

In retrospect, the recent gains in the XRP market come on the heels of two main factors: a technical undervaluation and some legal wins.

Why is the Ripple Token Exploding?

XRP started climbing in a period that saw most of its top rivals showing signs of upside exhaustion. For instance, Bitcoin, the leading cryptocurrency by market cap, slowed down its uptrend near $60,000. Meanwhile, Ethereum also lacked a follow-through rally after breaking a key psychological resistance level of $2,000.

Traders shift to assets that seem undervalued usually when they detect upside tiredness in rival tokens. Even a small piece of good news could move markets wildly during such times, which seems to be the case for XRP as it rallies tirelessly.

A slipping Bitcoin market cap has play a major role in propelling altcoins like XRP higher. Source: BTC.D on TradingView.com

A slipping Bitcoin market cap has played a major role in propelling altcoins like XRP higher. Source: BTC.D on TradingView.com

At the core of its uptrend is a flurry of legal wins.

Ripple Labs, the company that backs XRP, is fighting a lawsuit filed against it by the US Securities and Exchange Commission (SEC). As a centralized blockchain powerhouse, the securities regulator alleges that Ripple sold XRP to its earlier investors to raise funds for its operations, making the token a security in nature.

Ripple argues against the allegation, citing the SEC’s very own classification of XRP’s rivals Bitcoin and Ethereum as utility tokens. Late last week, the San Francisco firm stepped towards exposing the SEC’s so-called bipolar nature towards crypocurrencies.

United States District Court Judge Sarah Netburn of the Southern District of New York ruled that the SEC must provide Ripple access to its memos and minutes expressing the agency’s view on XRP competitors. These documents expect to show what the US regulator thinks about Bitcoin and Ethereum.

Meanwhile, the court also denied the SEC’s request to access Ripple’s CEO Brad Garlinghouse and former CEO Chris Larsen’s personal financial records.

Outlook Ahead — Risky?

Technically, the Ripple token market alerts about overvaluation risks on longer timeframe charts.

XRP RSI alarms about downside correction. Source: XRPUSD on TradingView.com

XRP RSI alarms about downside correction. Source: XRPUSD on TradingView.com

The Relative Strength Indicator on XRP weekly chart sits above 70, indicating an overbought asset. Increasing upside speculation could lead the Ripple token further into the overvaluation zone. But ultimately, its risks of undergoing an equally volatile downside correction would increase.

XRP’s Fibonacci levels complement the bearish theory. The token now trades inside the $1.22-1.51 area, giving traders opportunities to place bets intra-range: opening a long position on a bounce-back from $1.22 towards $1.51 and/or a short position towards $1.22 on a pullback from $1.51.

A breakout above $1.51 opens extended upside opportunities towards $1.80. Meanwhile, a breakdown below $1.22 risks a decline towards $1.22.

Fundamentally, XRP’s outlook remains uncertain as long as it does not walk through the SEC lawsuit unharmed.

Photo by Bill Oxford on Unsplash 

Source: Bitcoinist News

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Crypto News Updates

Bitcoin Weekly Outlook: Breakout Over $60K Expected on Coinbase Listing

Key Bitcoin Takeaways

  • Bitcoin flirts with $60,000 for a breakout move.
  • The cryptocurrency is trending inside a classically bullish ‘Ascending Triangle’ pattern.
  • Coinbase’s listing on Nasdaq, US inflation data update this week promises further upside.

Bitcoin has endured significant selling pressure over the last few trading sessions as it attempts to close above $60,000.

The flagship cryptocurrency trades $1,500 lower from its previous all-time high level, near $61,778 (data from Coinbase). Despite positive fundamentals, led by Goldman Sachs and Morgan Stanley’s decision to offer bitcoin-enabled investment services to their wealthy clients, BTC/USD bulls remain cautious against a rising US dollar.

As a result, repeated attempts to break above $60,000 have failed on follow-throughs. The new week also begins with Bitcoin trading above the said psychological resistance level, relying on a convergence of technical and fundamental catalysts to pursue an extended uptrend.

That Ascending Channel

The first bullish cue for Bitcoin comes from an Ascending Triangle forming on its daily charts.

In retrospect, Ascending Triangles are bullish continuation patterns that appear when an asset fluctuates inside a range specified by a horizontal resistance line and a rising trendline. The price retests the upper range repeatedly, only to undergo a breakout later. The massive upside move takes the price higher by as much as the maximum Triangle height.

Bitcoin anticipates a wild upside move heading into the new weekly session. Source: BTCUSD on TradingView.com

Bitcoin anticipates a wild upside move heading into the new weekly session. Source: BTCUSD on TradingView.com

Bitcoin checks all the boxes when it comes to qualifying for an Ascending Triangle breakout. The cryptocurrency now eyes a breakout that takes its price north by up to $20,000 — the maximum distance between the Triangle’s upper and lower trendline. That shifts the price target to $80,000.

Coinbase Listing, Inflation Data

Bitcoin’s potential to log a bullish breakout also increases because of Coinbase’s listing on Nasdaq Stock Market this Wednesday. The milestone entry on Wall Street by one of the world’s leading cryptocurrency firms has raised speculations among bulls about an extended bitcoin price rally.

“Traditional investors who purchase Coinbase stock will indirectly speculate on the crypto market, and similarly, crypto traders who own Coinbase stocks will have a vested interest in the success of the company,” said James Anderson, CEO of RioDeFi, an ecosystem of interoperable financial products.

If not a follow-through buying, the Coinbase news expects to make a holder out of an average trader. Blockchain analytics platform Glassnode noted the same in its recent analysis, noting an increase in unspent bitcoin units across wallets that held the cryptocurrency long-term.

Bitcoin Long-Term Holder Net Position Change. Source: Glassnode

Bitcoin Long-Term Holder Net Position Change. Source: Glassnode

The only snag in the Bitcoin rally anticipated this week could come from higher-than-expected inflation data.

Treasury yields volatility could pick up if March’s Consumer Price Index (CPI) comes higher than usual this Wednesday. In turn, that would increase the appeal of holding the US dollar among foreign investors. It should at least limit Bitcoin’s demand in global markets, if not hurt it altogether.

Long-term, crypto bulls treat higher inflation as their cue to stay invested in Bitcoin. Many corporates, including Tesla, have previously decided to invest in cryptocurrency to safeguard their balance sheets against fiat-led devaluation.

Photo by Kurt Cotoaga on Unsplash 

Source: Bitcoinist News

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Crypto News Updates

A Bitcoin Correction Towards $55,000 Likely At The End of Week

Key Bitcoin Price Outlook

  • Bitcoin reaches a short-term resistance trendline that constitutes a descending channel pattern.
  • The cryptocurrency risks upside rejection heading into the weekend session.
  • Its downside target lurks near $55,000.

Sliding US bond yields undermined the dollar and prompted bitcoin’s climb on Thursday. Nevertheless, the trade appeared cyclical as the cryptocurrency fell lower this Friday on signs of firmer yields and a rebounding dollar.

That said, the underlying bullish sentiment in the greenback kept a lid on Bitcoin’s ability to log a full-fledged breakout. Investors and traders have long anticipated that the cryptocurrency would log strong gains above $60,000. But — once again — it failed to follow up on its previous bullish leads, leaving the market at risk to log a downside correction instead.

Acting further as a bearish tailwind is a descending channel pattern visible on Bitcoin one-hour chart.

The cryptocurrency tested its upper trendline as resistance on Friday before it turned lower into the Asia-Pacific session. Now, the BTC/USD exchange rate tests its 20-hour exponential moving average as interim support. The recent history shows that it won’t hold the green wave (in the chart below) for far too long.

Bitcoin trades inside a descending channel pattern. Source: BTCUSD on TradingView.com

Bitcoin trades inside a descending channel pattern. Source: BTCUSD on TradingView.com

That said, breaking below 200-EMA would risk putting the Bitcoin price en route to the Descending Channel’s lower trendline. That support cluster sits around the $55,000 level.

Daily Chart

The path of least rejection for Bitcoin remains to the upside on longer timeframe charts.

Bitcoin's decline to $55,000 expects to meet strong downside rejection. Source: BTCUSD on TradingView.com

Bitcoin’s decline to $55,000 expects to meet strong downside rejection. Source: BTCUSD on TradingView.com

The BTC/USD exchange rate at or below $55,000 expects to attract accumulators, given the level constitutes a rising trendline that comes as a part of an Ascending Triangle. In retrospect, ascending triangles are bullish continuation patterns that appear when an asset fluctuates between a horizontal upper trendline and a rising upward trendline following an uptrend.

Technical chartists believe that almost 79 percent of the time, ascending triangles lead to an upside price breakout. The price breaks above the horizontal resistance and pursues a technical target as high as the Triangle’s maximum height. That puts the bitcoin price en route to hitting $70,000 in the medium-term, with a sight towards $75,000.

Fundamentals agree. The Federal Reserve has committed to keeping interest rates near-zero until it achieves its targets of maximum employment and inflation above 2 percent. The central bank’s loose monetary policy expects to stay intact until 2024, pressuring the US dollar lower and safe-havens like Bitcoin higher.

Photo by Ussama Azam on Unsplash

Source: Bitcoinist News

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Crypto News Updates

Bitcoin Eyes Long-Term Benefits on Central Banks’ Dollar Ditch

If global central banks are any indicator, the bitcoin price can continue its supersonic bull run despite hitting a pause in the past three weeks.

At the core of the bullish theory is the US dollar. True, the global store of value has attempted impressively to emerge out of its 2020 bearish trend, the one that saw its value against the top six foreign currencies declined by 6.8 percent. This year, the US dollar index has rebounded by 2.60 percent on bets that the US economy would recover faster than expected.

US dollar index shows signs of bottoming out. Source: DXY on TradingView.com

US dollar index shows signs of bottoming out. Source: DXY on TradingView.com

But despite the greenback’s short-term growth, central banks around the world remain less convinced about its strength in the long term.

Declining Reserves

In retrospect, central banks remain the largest players in the foreign exchange market. They supervise over $12 trillion in reserves, so it is more likely for investors to take their cues from how they treat certain assets, such as the dollar.

The International Monetary Fund’s latest figures reveal that the greenback’s share of global reserves has dipped to levels last seen in 1995. Central banks held 1.5 percent lesser dollars than they did in the third quarter of 2020 — as per data from December 2020.

Zach Pandl, head of foreign-exchange research at Goldman Sachs, said overloaded bearish bets on the dollar might have turned central banks away from the currency. He noted that “several structural trends skew the medium-term dollar outlook in a negative direction,” including a widening US trade deficit, the euphoria around the upcoming common bond market in Europe, and China’s pandemic recovery.

“It all forecasts a slightly weaker dollar over the next 12 months,” said Mr. Pandl.

Several factors have contributed to the decline in the dollar market. One of the primary ones is the Federal Reserve’s decision to introduce and maintain ultra-low interest rates following March 2020’s global market rout. That injected more cash liquidity into the market, prompting investors to see a drop in the dollar’s purchasing power.

Additionally, the US government handled free dollars into the accounts of millions of Americans. Oversupply further pressured the greenback. Meanwhile, lockdown boredom pushed many to use their stimulus checks to bet on riskier markets. Bitcoin benefited from the new influx. The dollar declined further.

What’s Ahead for Bitcoin?

The inverse correlation between Bitcoin and the US dollar index is seldom strict.

The cryptocurrency closed its first 2021 quarter up 100 percent. True, it faltered multiple times near strong technical resistance levels — and partially by rising US bond yields that made the prospect of holding the dollar more attractive among investors. But, it held onto its bullish bias as investors saw it as a hedge against rising inflation.

Bitcoin trades inside a bullish triangle pattern. Source: BTCUSD on TradingView.com

Bitcoin trades inside a bullish triangle pattern. Source: BTCUSD on TradingView.com

Central banks may have re-accumulated the dollar in the first quarter amid its upside recovery, says Tai Wong, head of base and precious metals derivatives trading at Bank of Montreal. Nevertheless, he added that it remains a short-term trend.

One can expect Bitcoin to post slow growth amid the US dollar’s rebound. Even a correction of 30-40 percent from where it trades now would keep its bullish bias intact, especially amid the cryptocurrency’s market booming institutionalization led by PayPal, Visa, Mastercard, BNY Mellon, Goldman Sachs, Morgan Stanley, and many others.

Photo by Joshua Hoehne on Unsplash 

Source: Bitcoinist News

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Boom for Bitcoin as Macro Analysts Stick to Their Bearish Dollar Calls

Bitcoin and the US dollar have stopped caring about their inverse correlation heading into 2021.

The flagship cryptocurrency closed the first quarter more than 100 percent higher as more and more institutions became accustomed to its safe-haven characteristics. For instance, US carmaker Tesla revealed that it replaced $1.5 billion of its cash reserves with bitcoin, stating that it considers the cryptocurrency as a store-of-value.

That was a clear example showing how a big firm chooses bitcoin over the dollar, especially under the impression that the latter would lose its value against other fiat currencies after closing the previous year down 6.80 percent. The analogy itself followed a flurry of sell-side predictions for the dollar, making Bitcoin an emerging safe-haven alternative, an attractive asset for investors.

But the strong consensus over a weakening dollar started crackling in 2021.

The US dollar index…

….which tracks the greenback’s value against six other major currencies, climbed 3.6 percent in the first quarter.

US dollar index rebounds 3.43 percent from its sessional low. Source: DXY on TradingView.com

US dollar index rebounds 3.43 percent from its sessional low. Source: DXY on TradingView.com

It later pulled back by 1 percent, maintaining its yearly upside bias. The index rose primarily because of underperforming foreign currencies, coupled with a sharp rise in inflation expectations in the US, starred by President Joe Biden’s $1.9 trillion stimulus package.

The uptick prompted a sharp sell-off in the bond market. In turn, that pushed the yields higher, raising the government debts’ appeal among foreign investors, especially in Japan, whose yen fell 7.5 percent against the dollar in the first quarter. Nevertheless, many macroeconomic analysts remained convinced that the dollar would decline.

Zach Pandl, co-head of global foreign exchange, interest rates, and emerging markets strategy at Goldman Sachs, reiterated their earlier stance about a weaker dollar, saying a rebound in the euro would drive the greenback lower.

“I do have some concerns about the very near-term outlook . . . [but] we have stuck with the bearish view because I ultimately think that the dollar is more likely to weaken over the next few months,” he told the Financial Times.

Citi analyst Calvin Tse, who predicted a 20 percent crash for the US dollar index in 2021, also stuck to his bearish call, saying that the long-term outlook for the greenback has not changed. He noted that all the existing bullish factors that drove the yields higher — faster vaccine rollouts, global trade recovery, higher commodity prices — would still prove bearish for the dollar.

What About Bitcoin?

On the other hand, Bitcoin rallied from $20,000 in December 2020 to a little over $61,000 as in March 2021, showing that it remains a hot asset among hyperinflation conspirationalists.

One of the main reasons Bitcoin may have withstood a stronger dollar is foreign demand itself. Just recently, exchanges in South Korea reported trading volumes higher than what global crypto platform Binance processes. Other parts of the world, including Turkey and Nigeria, also saw a spike in demand for bitcoin and other cryptocurrency assets against weaker local currencies.

Conclusion

So it appears, Bitcoin emerged as a safe-haven also against wild cyclical trades between the dollar and other fiats. This year’s uncertain forex outlook further makes the cryptocurrency a safer destination to park, especially for corporates with excessive exposure to cash in their balance sheets.

Photo by Bermix Studio on Unsplash 

Source: Bitcoinist News

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Many Bitcoin Analysts Call For Rally Beyond $70,000; Here’s Why

Bitcoin traders and analysts are sticking to their conviction that the cryptocurrency’s price will hit at least $70,000 in the coming sessions.

At the core of their upside outlook lies a classic technical indicator. Dubbed as Ascending Triangle, the pattern forms when an asset forms two or more rising troughs and almost equal highs in conjugation. The trendlines connecting these dots converge as the price rises, making it appear like a rising triangle.

Bitcoin Bullish Structure? Check.

Bitcoin ticks almost all boxes when it comes to confirming that it is forming an Ascending Triangle. The cryptocurrency’s two-month-old structure prompted it to test levels around $60,000 repeatedly as resistance. Meanwhile, the price kept rising while treating a rising trendline as support. The only link missing is a breakout to the upside.

“When this breaks above $60,000 with conviction, don’t stand in the way,” one analyst proclaimed on Twitter.

Bitcoin bullish triangle structure, as shared by CryptoHornHairs. Source: BTCUSD on TradingView.com

Bitcoin bullish triangle structure, as shared by CryptoHornHairs. Source: BTCUSD on TradingView.com

The bullish triangle breakouts tend to shift the asset’s upside target at a level above the widest distance between the upper and lower trendline. Applying these theoretical definitions on the Bitcoin charts ensure that it would break above $75,000 in the coming sessions. $70,000 remains a psychological resistance target.

Bitcoin analyst Josh Olszewicz confirmed that a breakout move would push the bitcoin price towards $75,000. Thereon, the cryptocurrency would start consolidating in the $70,000-75,000 area. Meanwhile, another analyst — albeit a pseudonymous one — provides fundamental catalysts that could make the explosive bullish move happen.

Coinbase IPO FOMO

Pentoshi, a widely-followed Twitter account, noted that the upcoming direct listing of Coinbase, a US-based cryptocurrency exchange, on Nasdaq, would serve as a tailwind to technically bullish structures. In his opinion, Bitcoin is consolidating inside a Symmetrical Triangle — another technical indicator professing an asset’s bullish continuation bias.

Bitcoin symmetrical triangle structure. Source: BTCUSD on TradingView.com

Bitcoin symmetrical triangle structure. Source: BTCUSD on TradingView.com

“CB IPO is now 6 days out. BTC supply is at new all-time lows. Yet, no announcements of new holdings,” the independent analyst wrote.

“I feel a lot of companies could/will announce around that time to capitalize off the momentum. Combined with hype at Influx of new money that CB [custody], moon,” he added.

But technical indicators are not always accurate. A study conducted by Samurai Trading Academy shows that Ascending Triangles have a success rate of 72.77 percent. Meanwhile, the possibility that bitcoin breaks above its symmetrical triangle structure stand further lower at 54.87 percent (considering it also appears like a bullish pennant).

Photo by Mark Boss on Unsplash 

Source: Bitcoinist News

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A Big Glitch Appears in Bitcoin Bullish Bias: Rising Rate Hikes Bets

There are more traders now that prefer to hold Bitcoin than selling it to realize earlier profits. It is indicative of a major price boom ahead for the flagship cryptocurrency, which has already surged by almost 1,380 percent from its 2020’s nadir of $3,858 (data from Coinbase).

Bitcoin Rise to Glory

Lower interest rates have provided one of the most strengthening bullish tailwinds to the Bitcoin market. It shows that banks could borrow cheaper capital from the Federal Reserve. In turn, that made the prospect of injecting liquidity into the economy higher. The US dollar resultantly risked being oversupplied. So, its value fell all across 2021.

Bitcoin rose because of its anti-fiat narrative. Investors perceived it as a haven against a dwindling dollar, citing its limited supply cap of 21 million tokens against an unlimited greenback. Billionaire hedge fund managers Paul Tudor Jones, Stan Druckenmiller, and Scott Minerd said that ultralow rates would further push the cryptocurrency’s prices.

So far, Bitcoin has performed per the expectations. The BTC/USD exchange rate surged twofold, entering 2021, hitting a record high of $61,778 in March after a flurry of corporate houses opted to add bitcoin to their balance sheets (read Tesla, MicroStrategy).

Bitcoin is up more than 1,380 percent since March 2020. Source: BTCUSD on TradingView.com

Bitcoin is up more than 1,380 percent since March 2020. Source: BTCUSD on TradingView.com

Meanwhile, believing that wealthy investors would start demand for bitcoin-related investment services, giants like Mastercard, Visa, BNY Mellon, Goldman Sachs, Morgan Stanley, and PayPal announced crypto-focused features on their legacy platform. So it appears, Bitcoin is finally growing from being an asset that Warren Buffett once called “rat poison squared” to a new institutional eye-candy.

But the question remains: how long the bitcoin price rally could last? The first crack is also appearing in the name of potential rate hikes.

Hike Them Rates!

A faster-than-anticipated economic recovery in the United States and optimistic labor data signaling growth in both the factor and the service sectors pushed traders to raise their bets on rate hikes sometime next year. Eurodollar futures, a widely tracked measure of interest rate expectations, shows that the Fed would raise the interest rate from near zero by 2022, followed by three additional hikes anticipated until early 2024.

That comes as a sharp contrast to what the Fed officials agreed in its latest meeting: That they would keep rates near zero at least until 2024 to let inflation run higher above its benchmark target of 2 percent. Bitcoin kept surging this year against the loose monetary policy expectations — even when growth prospects led to a dramatic rise in both longer-dated and shorter-dated Treasury yields.

The Fed’s approach to winding down its $120 billion monthly bond purchase program may signal its intention to raise rates, said Brian Nick, chief investment strategist at Nuveen, to the Financial Times. The executive nevertheless noted that he does not see rate hikes coming any sooner than 2023.

But he reminded that the number of central bank officials favoring a rate rise has risen from December 2020 versus March 2021. It could put the Fed in an uncertain position.

Bitcoin was trading near $57,500 as of this press time.

Photo by Isaiah Rustad on Unsplash 

Source: Bitcoinist News