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Bitcoin is twice as profitable as the S&P 500 in Q2

In the second quarter, Bitcoin won over 40%

Bitcoin fell 0.56% on Tuesday. Thus, partially reversing Monday’s gain, Bitcoin ended June down more than 3% to $ 9,136. Despite the monthly loss for June, Bitcoin rose by an enviable 42.33% in the second quarter.

Earlier today, Cointelegraph announced that the price of Bitcoin registered its strongest performance for Q2 in history, despite the shocking collapse to $ 3,750 on March 13. It is worth noting here that the main cryptocurrency even registered twice the profit of the S&P 500 index for the quarter.

The second quarter was mixed for other major cryptocurrencies. Cardano’s ADA took the lead, rising 172.45%. Binance Coin (+22.43%), Ethereum (+69.43%), Monero’s XMR (+33.05%), Stellar’s Lumen (+65.45%), Tezos (+46.32%) and Tron’s TRX (+41.46%) also recorded stable profits.

Bitcoin Cash ABC (+1.26%), EOS (+6.98%), Litecoin (+5.03%) and Ripple’s XRP (+0.91%) lagged behind.

Reversing the trend during the quarter, however, Bitcoin Cash SV fell 4.63%.

On Wednesday morning, the total market capitalization amounted to 259.53 billion dollars. At the time of writing, the dominance of Bitcoin was 66.04%. And the trading volumes for the last 24 hours reached $ 54.54 billion.

 

What to expect in the third quarter?

Three were the main catalysts that fueled the historic Bitcoin rally from April to June. Namely: the block reward halving on May 11, the demand for BTC at a much lower price and a strong recovery in the world stock markets.

Also, data from the blockchain show that the total number of Bitcoin whales has exceeded a 3-year high above 1800 in the last 3 months. From a macro point of view, this increase in the number of whales (individual investors who own a large amount of BTC) can be considered a bullish indication.

As of the beginning of the third quarter, investors in stocks and cryptocurrencies remain concerned that markets will suffer from a drastic increase in COVID-19 infections in a number of US states. And the EU’s recent ban on Americans traveling to member countries should also have a strong effect on airlines and the global tourism industry. If stock markets volatility remains high (or above the historical average), then the correlation between stocks and BTC should remain relatively high.

The general opinion among analysts is that in the coming weeks the price of Bitcoin may test the recent bottoms again. But despite the short-term bearish outlook, BTC’s market structure and investor bullish sentiment suggest that the digital asset remains well-positioned for further gains in Q3.

 

Technical analysis of BTC/USD

Bitcoin started the new month, struggling to hold over $ 9,100 amid widespread consolidation in the crypto market.

On the downside, the first support is at 100-day SMA, supported by the upside trend line of the formed triangle of the hourly chart.

It is essential to keep the price above $ 9,100, as this will allow the bulls to focus on $ 9,200. However, if the bears prevail and the support of the triangle is broken, BTC/USD could fall below $ 9,000. And even to test recent lows at $ 8,856/18.

From a different technical point of view, the current consolidation may last longer based on the signals from RSI and MACD. Both indicators move sideways around their midlines on the hourly chart. The RSI is horizontal at 48, while the MACD is around 0.00 (midline). If they remain in the same condition longer, consolidation will also continue.

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Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Bitcoin and Litecoin face strong levels of resistance

Tuesday was a mixed day for major cryptocurrencies. The price of Bitcoin rose and closed at $ 9,774. Bitcoin Cash ABC (+0.18%), Litecoin (+0.97%) and TRX (+2.29%) also found support during the day.

On the other hand, Bitcoin Cash SV (-1.59%), EOS (-0.28%), Ethereum (+0.07%), Monero XMR (-0.10%), Ripples XRP (-0.19%) and Stellar Lumen (0.64%) ) struggled.

At the time of writing, the total market capitalization was $ 264.80 billion, while Bitcoin’s dominance was about 67.89%. Trading volumes for the last 24 hours on the crypto market reached 119.5 billion dollars.

 

Bitcoin is again fighting around the $ 10,000 level

Since Monday, Bitcoin (BTC) is locked in a narrow range between $ 9,800 and $ 9,400. Monday’s and Tuesday’s daytime candles were quite hesitant (doji candles), indicating that the market lacks a clear direction at these levels. The quintuple test at the key psychological level of $ 10,000 in the last 11 days can be analyzed in two ways. The $ 10,000 resistance level weakens with each test, or the resistance is so strong that buyers are unable to break it.

All we can do for now is look for breakthrough levels that could give us more clues about the future price action of the digital gold. If the 10K level is broken, the upward momentum may extend to the next resistance. Looking at the daily chart, Bitcoin is still moving in the bullish price channel, despite the retreat of $ 10,000. In addition, it is very likely to see a pattern of a golden cross if the 50-day SMA breaks above the 200-day SMA. With the right volume, Bitcoin can make a rally above $ 10,000, renewing the bulls’ desire to challenge the 2019 high at $ 13,800.

On the downside, outside the range, the first support is at 9 155. If the bears manage to break this level, they will head to a test at the lower border line of the bullish channel at $ 8,635.

 

Will Litecoin be able to break above the psychological level of $ 50?

Litecoin has finally shown some strength against the US dollar and is likely to continue until the end of the week amid positive news. On Tuesday, legendary video game producer Atari Group announced a partnership with the Litecoin Foundation, focusing on overlapping interests between cryptocurrencies and games. Not only will Atari accept investments in Litecoin (LTC), Bitcoin and Ether (ETH), but gamers will be able to pay for their upcoming video computer system with Litecoin and receive a discount.

At the time of writing, LTC/USD is growing by 2.24% and is trading at $ 45.85. To hold the upside momentum, the bulls will have to break the downside trend line on the daily chart, now localized at $ 47.50. Once that happens, buyers will be able to push the price to the 200-day SMA ($ 50.93), which is very close to the psychological level of $ 50. In the event of a stronger rally, supported by the wider crypto market, the next bullish goal would be $ 52.24.

On the downside, the closest support is at the 50-day SMA in the region of $ 43.83. A convincing move there could take the price for a re-test of the $ 39.41/00 area. If the price bounces off this support once again, it may offer us new buying opportunities.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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The Third Halving of Bitcoin is a Fact

The general sentiment in the crypto industry is positive today, as most of the major coins are moving higher. Bitcoin is again flirting with the $ 9000 level, which seems to be a price magnet. And Stellar Lumen, Tron and Monero inextricably follow the main cryptocurrency on green territory after halving event on Monday.

 

There are Still No Fireworks from Bitcoin Halving

The most anticipated event for cryptocurrencies in 2020, the third halving of Bitcoin (BTC), has just come into force. Happening only once every 4 years, the last halving lowered the reward for a Bitcoin block from 12.5 BTC to 6.25 BTC. The Bitcoin network is designed to have only 21 million coins. It is estimated that this will be the catalyst for another bull rally, as more than three quarters of these coins are already in circulation. The impact of halving may reduce the supply of new coins, as miners may have to wait for the price to rise before selling their blocks in order to cover their costs.

BTC/USD buyers took control of the market after four bearish days. On Tuesday, Bitcoin rose more than 3.5% after halving on Monday. However, so far, we have not had a sharp rise in price. The borders of the 20-day Bollinger Bands indicator are beginning to narrow, indicating declining volatility. This morning, BTC/USD found support at the 20-day SMA and continued the upside momentum to the $ 8,965 high.

From a technical point of view, the bulls will now try to break over the 9K resistance. Also watch for possible crossings of the 55- and 200-day SMAs as confirmation. A convincing move above $ 9,000 should lead the price for test to $ 10,000/33.

On the downside, initial support is around $ 8,760, where the hourly SMA 50 is located. A clear break below that level could extend the sell-off to Monday’s low at $ 8,235, followed by $ 8,150.

 

How Does the Crypto Market React to the Third Halving?

Monero closely followed the footsteps of Bitcoin (BTC) and made a profit of 2.8% for the last 24 hours. The rest of the cryptocurrency market is green as buyers focus to extend the prolonging bullish momentum after a disastrous weekend slump. Stellar Lumen (XLM) made the biggest profit of 6.30%, Tron (TRX) rose by 4.09% and Binance Coin grew by 2.93%.

At the time of writing, the total market cap is $ 242.50 billion. Bitcoin dominance is below 67% level. And 24-hour trading volumes amounted to $ 136.45 billion.

 

Monero Technical Analysis

Indicators such as RSI and MACD show a positive picture in the short term for XMR/USD. The RSI is heading north after recovering from support at 30 level. The indicator even managed to break above the midline (50). And with that, XMR buyers should gain the confidence to join the market and increase their positions in anticipation that the $ 68.26 resistance will be brought down. If that happens, the next bulls’ target will be $ 70.50

The same upward trend is supported by the MACD, which has returned to positive territory. A bullish divergence over the MACD may signal a stronger upside momentum in subsequent sessions.

On the other hand, we have immediate support with the 200-day SMA in the region of $ 59.50. A clear break there will take Monero for testing the bottom from Monday at 55.93.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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Bitcoin goes up before halving. Will the momentum persist after that?

BTC/USD bulls retained control for the second day in a row as the price moved in an upside price channel. Just 5 days before Bitcoin halving, the bulls took the key resistance $ 9,140- $ 9,200. Now they are heading for their new $ 9,500 target.

Recently, however, the halving of Bitcoin (BTC) has captured the imagination of the crypto industry and predictions are definitely not lacking. These range from a downside spiral in price that will destroy the Bitcoin network to a parabolic appreciation of the main digital coin. How will this event affect the price action?

 

Here are some possible scenarios for Bitcoin halving and the price:

  1. From a negative point of view, some analysts believe that traders who have “bought the rumor” will “sell the news.” This scenario is possible, but difficult to assess, as traders do not usually share their strategies. In my opinion, this scenario should not have a strong impact on price.

  2. Also, negative would be the scenario in which miners will put sales pressure, dragging the price down. But this case is again unlikely. Because Bitcoin halving means that miners will receive half the Bitcoins for the same work. And this doubles the unforgettable cost of creating the first cryptocurrency.

Miners’ costs are effectively fixed. So, to maintain the same profit margins, they should be encouraged to double the price at which they sell their Bitcoins. I expect that this supply shock will raise the price significantly.

  1. And from here we move on to the most positive scenario. In this case, the ratio of stocks to new flows after halving will cause upward price pressure. This scenario relies on the logic that the combination of Black Thursday (March 12) and the upcoming halving of the block award will push out weak and inefficient miners. The remaining miners will have lower costs and be forced to sell less of the newly created blocks to cover them. This dynamic, combined with the macroeconomic tailwinds provided by global governments and rising inflows into passive investment products such as Bitcoin (which we are currently seeing), could trigger a perfect price rally in the medium and long term.

Of course, there is an option for the halving to be already priced in and to have no impact on the market. But to figure out which scenario will play out, we don’t have to wait too long. There is less than a week left until the big day.

 

Technical analysis of BTC/USD

Although the event is fast approaching and retail investors are feeling more and more bullish, I must remind you something. After falling to $ 3750 on March 13, the price of BTC rose by over 145%. So, the current daily chart picture is starting to look overbought.

In addition, looking more closely at the weekly chart, we will notice that $ 9,500 has proven to be a key level of resistance and support. Overcoming this level is expected to be a challenge. But given the proximity of Bitcoin to the price, a strong jump in volume could put it out of the game. In the short term, traders must monitor the volume of trade and for a break above the daily high of $ 9,375.

In addition, the SMA 20 passed over the SMA 200 to chart a bullish cross. MACD shows an increase in upside momentum. But the RSI indicator is already in the overbought area at 79.50. That means that short-term bearish correction may be around the corner.

On the downside, I expect the $ 9,198 and $ 8,535 levels to provide strong support.

 

Author: Silviya Velcheva


* The views expressed in this material do not constitute a recommendation or advice for the purchase or sale of cryptocurrencies in the digital assets market or other financial instruments. The predicted forecasts meet the expectations of the author of the material and may not materialize. Trading in currencies, contracts for differences on margin or cryptocurrencies poses a high risk and may not be suitable for all investors. Past results are not a guarantee of future success.

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