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Bitcoin marches toward new and new highs

Bitcoin continues to rise, breaking the $ 10,000 and $ 11,000 levels, currently trading at $ 12,585, a new high for 2019. BTC transactions remain near their peak, namely over 388,000 in 24 hours. For the same period, the major digital asset reached a growth of nearly 10% and a market capitalization of 223.07 billion dollars.

But even more strikingly, the current price rally led to a jump in mining, sending the BTC hashrate (the processor power unit in Bitcoin network) to all-time record values ​​above 64 EH/s.

The mining peak, while the reward for Bitcoin block is still 12.5 BTC, shows some confidence in future price action. Miners have a chance to make a significant return before halving in 2020. Current prices are approximately 3 times higher than the breakeven market price for Chinese miners and may invite more pools to come online.

Many experts believe that Bitcoin (BTC) is run by FOMO at this stage, as the market repeats the situation by the end of 2017. The excitement of the Facebook’s Libra coin and the potential crypto ban in India are also cited as major rally catalysts.

 

What’s more is actually behind the Bitcoin rally?

Apart from the aforementioned reasons, here are some that I think are crucial for the latest appreciation:

Tether (USDT) record supply: USDT-based trading remains a key factor in ensuring sufficient liquidity for the BTC. In recent weeks, new stacked prints have increased the Omni layer supply of USDT to above 3.54 billion, with another 900 million in the Ethereum (ETH) network.

Self-Fulfilling prophecy: BTC is able to add hundreds of dollars within one hour, and the breakthrough above the $ 10,000 psychological level is certainly encouraging. Adding activity from bot-trading to the mix can move the prices even faster.

Altcoin’s season is too late: Bigger profits are currently being gained with Bitcoin’s growth, while the altcoins remain volatile and offer only sporadic profits, highly unpredictable.

Exchange limiting US traders: With less US-based trading for altcoins and tokens, speculation is naturally shifted to the leading coin. At the same time, Asian markets are reviving and increasing volumes for BTC speculation.

 

The growth can continue up to $ 13,000

Quite technically, Bitcoin grew strongly for 8 consecutive days, the longest period of uninterrupted growth since December 2017. Apparently BTC/USD feels comfortable with the formed bottom at 10,000, so it provides a lot of support behind the bulls. And this logically implies further movement to the north with the nearest target around $ 13,000 region.

However, it should be noted that the main coin is quite overbought on all timeframes, making it vulnerable to downside correction. First support is at $ 12,133, where Bollinger Bands’ upper boundary is located on daily chart. A persuasive break below will clear the way to the next bear’s target at $ 11,200. There merges 78.6% Fibo level of the last drop of $ 11,361 to the bottom of $ 10,622 and the 50-day SMA on the 1-hour chart.

Other areas that need to provide support are $ 11,000, $ 10,800 and $ 10,400.

 

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 unstoppable, the crypto market is enthusiastic

Bitcoin continued to gain on Tuesday

Bitcoin remained strong on Tuesday, increasing its market capitalization by more than 60% for the past month. In particular, Bitcoin’s market share jumped to its highest level since September 2017. But earlier today, the crypto market has calmed down after strong growth in the previous days. Bitcoin and most of the top Altcoins consolidate profits in newly opened ranges.

The total capitalization of all digital assets in circulation reached $ 243 billion, compared with $ 232 billion yesterday. And the average daily volume of trade reached 107 billion dollars.

Interest in Bitcoin is on the rise

The question, however, is what is behind this recent rally and whether it is sustainable? Let’s take a quick look at recent possible triggers.

The BTC rally in 2019 is quite different from the rise in prices in December 2017. Over the past year, many exchanges have started and continued to increase their activity and trading volumes. The boost from increasing trading volumes, arbitrage opportunities and higher liquidity creates conditions to make the BTC market more predictable.

In addition, an ecosystem of Stablecoins*, with Tether (USDT) as its leader, facilitated international trade. In addition, Bakkt (Bitcoin full-service exchange, wallet, trading platform and clearing house) has announced that BTC futures will be put into test mode in July.

There is some speculation that the escalating trade dispute between China and the U.S. is playing a role in attracting investors to BTC. Risk-off attitudes because of this global headwind may have added momentum to Bitcoin.

In the past, institutional investors have stayed away from crypto currencies because of several problems, including custody, insurance and regulations. However, the recent developments of major names like Coinbase, Fidelity, Intercontinental Exchange (Bakkt) and TD Ameritrade seem very positive, and the crypto space is definitely more prepared to meet institutional investments than in 2017.

Also FOMO (fear of missed opportunities) has returned to the market and retail investors have become the real driving force behind this dynamic. Bitcoin’s current jump in prices also follows the pattern of growing dominance, while Altcoins temporarily lose their attractiveness.

Bitcoin has been consolidating the recent gains. What’s next?

The price of Bitcoin against the dollar traded at a 10-month high, reaching $ 8,324 yesterday. On daily chart, it is clearly seen that exceeding significant levels such as $ 7,000 and $ 8,000 triggered profit taking, but it quickly ended with a subsequent new wave of purchases. At the time of my writing, the main digital currency is moving around $ 8,000.

BTC/USD is traded comfortably over SMA 200, SMA 50 and SMA 20 on daily chart. So, while that does not change, bulls keep control. Their next short-term target of Bitcoin should be $ 8,500, with a breakthrough over $ 8,200 would provide additional support for the broader market.

Keep in mind, though, that even Bitcoin is headed for $ 10,000, there will be corrections on the way. So, it’s not surprising that the price has retreated a little bit to $ 8,000, and we can see some consolidation around this level.

On the downside, the area around $ 6,000 before was quite strong resistance. However, the BTC finally broke it and it broke out once in early May. So, I think it’s safe to assume that the correction will keep Bitcoin over $ 6,000 for now. In addition, the SMA 20 is located around $ 6,140 on daily chart.

 

* Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some “stable” asset or basket of assets.

 

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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BTC/USD crossed $ 5,000 for the first time since November 2018

The second quarter began, and the crypto currency bulls suddenly felt a rush of energy and “worked”. The crypto market seems to have woken up a prolonged sleep and triggered himself as all 20 top digital assets, including Bitcoin (BTC), jumped sharply upside in the last 24 hours.

The total capitalization of all digital assets in circulation jumped to $ 173 billion from just over $ 147 billion at that time on Tuesday. The average daily trade volume catapulted from $ 33B to $ 83B.

Bitcoin (BTC) rose 27% yesterday. This morning the basic digital coin jumped to an intraday high near $ 5,030, but then stepped slightly back. Ethereum (ETH) was above $ 175.00 with over 18% profit on a daily basis. Ripple’s XRP rose to $ 0.3703 before withdrawing to $ 0.3520 at the time of my writing. The third largest digital asset rose by 16% on a daily basis. The other Altcoins showed similar growth rates between 5% and 13%.

What’s behind the mysterious rally?

At the fundamental front, the only positive news was that Paypal, the payment giant, had invested in a start-up in the blockchain industry. For the payment service giant, this was the first investment in blockchain space.

As regards regulators, everything is still negative. It became known that the SEC postponed for 90 days consideration of the applications for the launch of Bitcoin-ETF by VanEck and Bitwise. But as this is not something new, the traders did not pay much attention.

It should be noted that market participants have ignored not only regulators, but also hacker attacks against the crypto exchanges. A new victim of theft was DragonEx.

According to some analysts, the yesterday’s rally was a natural reaction to the crypto market after trading for a few months in narrow ranges. But in fact, the real reason was that Reuters reported it had a mysterious order of 20,000 BTC (~ $ 100 million) from an anonymous entity who may have increased activity in the market. The 20,000 BTC order was distributed to Coinbase, Kraken and Bitstamp in Luxembourg.

So for me the current dynamics is similar to that of March 30, when Bitcoin showed a sharp rise. You need to be cautious about growth, based on the triggering of a large number of purchase orders rather than on some fundamental or news factors.

What’s next for the BTC? Let the correction begin?

Bitcoin (BTC) traded around ​​$ 4,920 at the time of my writing. Although the coin is still 5% higher than yesterday, the market seems to be entering a correction phase, as many crypto currencies recorded this morning intraday losses, returning from the overbought territory.

On the upside, the price will have to recover above $ 5,000 as soon as possible to keep bulls dominating. The next target will be $ 5,300/20. There is also the 200-day moving average, which may be a major obstacle to BTC’s growth. In the financial markets, this line is considered an important level, as it often indicates a limitation of the growth trend. Last year, this moving average proved to be a reliable indicator. The decline below in May 2018 marked the beginning of a long decline over the next 1.5 month

If the price fails to break through the 200-day SMA, Bitcoin may enter a consolidation phase with downside bias. Technically speaking, BTC/USD reached the upper boundary of the 4-hour Bollinger Band indicator. And this may boost sales for the moment to the average Bollinger Band line in the ​​$ 4,370 area.

 

 

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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