Čvc 17

Bitcoin Extends Losses With 12% Slide, Targets $8,000

Bitcoin continues to trade at four figures today as a new wave of bearish momentum sends the asset plummeting below $9,600. A couple of big red candles dumped bitcoin over a thousand bucks in a matter of hours and has left the asset scrambling to find support.


Bitcoin Drops Over $1,000 in a Day

This is not the first time BTC has shed over a thousand dollars in a day, and it probably wont be the last. From a Monday high of $11k bitcoin dropped to settle at the mid $10k level before plunging into four figures during late trading yesterday.

bitcoin

BTC price one hour chart. Tradingview.com

According to charts from Tradingview, BTC bottomed out at $9,250 before climbing back slightly. The recovery has not been strong and further losses are expected. At the time of writing bitcoin was trading at 00. Daily volume has returned to $25 billion but it is largely bearish at the moment, as traders take profits from the recent rally and newbies who bought at the top panic sell.

The move has dropped bitcoin’s market capitalization back to $170 billion and resulted in a loss of $30 billion from the global crypto market cap in just 24 hours.

As per usual, chartists and traders are looking for the next levels of support which appear to be back in the $8,000s as predicted earlier this week. Josh Rager is sticking by his $8k call but adds that altcoins are likely to dump even further.

My current Bitcoin view for max correction is near $8k (give or take 5%) which would be a near 40%+ pullback. This also means that altcoins would retrace at a much deeper %

At the moment bitcoin has corrected 33% from its 2019 high so it stands to reason that there could be further to fall. Crypto analyst and trader Alex Krüger correctly pointed out that the harder they pump, the harder they dump.

Bull market corrections are unavoidable and should be welcome. Assets that go too far up too fast tend to crash the hardest. As everyone who speculated with the price of bitcoin during 2017 and 2018 well knows.

Altcoins Still Melting

There has been no respite for the altcoins in the market as of yet, with many still in free-fall during the Asian trading session today. Ethereum has matched bitcoin’s dump with a 12% slide back to $200, EOS has been smashed even further sliding back to almost crypto winter lows of $3.70.

Also dumping double digits at the moment is Litecoin, BSV, Tron, Cardano, Monero, Dash, Chainlink, IOTA and NEO. It seems like the widespread rumors of the threat of an outright bitcoin ban in the US has put everyone into panic mode this week.

Will bitcoin dump back to $8,000 again? Add your thoughts below.


Images courtesy of Tradingview, Twitter @Josh_Rager,  Shutterstock

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Čvc 15

‘Still Positive About $1 Million Bitcoin Price By 2020 End’: John McAfee

Bears showed up en masse to administer a proper beatdown to Bitcoin price today. Where do we go from here?


Big Players Orchestrate a ShakeOut

On Sunday bears launched a coordinated assault on Bitcoin price which resulted in the price dropping below $10,000 for the first time since July 2. By the weekly close, the king of cryptocurrencies had dropped $1,400 and the total crypto-market cap dipped below $300 billion. As the carnage occurred, the illustrious John McAfee took to Twitter and lambasted investors who were running for the hills forecasting doom for Bitcoin. 

McAfee scolded investors for freaking out over weekly fluctuations and reminded investors to recall Bitcoin price’s parabolic move over the past few months.

Bitcoin Price Going To $1 Million

Despite today’s $1,400 correction, McAfee remains confident that Bitcoin price will reach his $1 million projection by the end of 2020 and he isn’t the only crypto influencer not bothered by today’s correction. 

Popular crypto-analyst PlanB tweeted an intriguing stock to flow analysis which shows BTC price reaching $100K a little after the 2020 halving event, followed by $1 million by 2024 and $10 million by 2028. 

On July 12 Tuur Demeester also posted a chart outlining Bitcoin’s seasonal price performance since 2011 and eagle-eyed traders will probably glean useful tidbits that will help provide foresight into Bitcoin’s future price action.

While today’s drop from $11,400 to below $9,800 is terrifying, corrections of this type are normal for Bitcoin. Investors with a long vision of Bitcoin realize that sharp pullbacks tend to follow parabolic advances and the current correction is likely an opportunity to accumulate more Bitcoin. 

As one would expect, the rest of the top-10 cryptocurrencies took on heavy losses as Bitcoin crashed. Ethereum dropped as low as $191, while Litecoin, EOS, and XRP also took on heavy losses ranging from 15 to 20 percent.

Overall, the crypto market dropped more than $20.1 billion over the last 24-hours. It’s likely that analysts will spend the next few days attempting to determine if the drop was primarily based on technicals or whether larger hands were at play. 

Do you think Bitcoin price will quickly recover to $12,000? Share your thoughts in the comments below! 


Images via Shutterstock, Twitter: @officialmcafee, @100trillionUSD, @TuurDemeester

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Čvc 12

Bitcoin Price Analysis: Bullish Divergence At $11,500

Bitcoin price hit a peak of $13,000 on the 10th of July just two days ago. Since this price levels have pulled back to POC (Point of Control) around $11,300 as mentioned in my previous bitcoin price analysis. Three descending lows are evident on the 30 Minute time-frame alongside descending volume and ascending RSI which is a clear indication of bullish divergence.


Bitcoin Price 30 Minute Analysis

BTC 30 Min

On the 30-minute bitcoin price analysis chart, we can see clear bullish divergence playing out. Bright as day, we can see highlighted the descending peaks in both price action and volume. In addition to this, RSI (Relative Strength Index) shows clear ascending momentum. These are the three main points to look out for when trying to gauge bullish divergence, this coupled with the fact that market price is trading at POC (Point of Control) around $11,600 begins to paint a very bullish picture for BTC’s short-term price action.

Both the 50MA and 200EMA are sandwiching market price, this is a clear indication of consolidation before a big move. BTC’s volume is at it’s lowest in the last 3 Days and price levels aren’t continuing to dump meaning there’s good support around the current market price.

Provided the bullish divergence plays out as expected, price levels could break July’s monthly high of $13,000 over the coming days. The trend is still very much bullish and bears don’t seem to be gaining much momentum as outlined in yesterday’s bitcoin price analysis on BTC.


Understanding Bullish Divergence

Bullish divergence is simply when the candlesticks create lower lows and your indicators create higher highs. This signals that bearish selling momentum during a pull-back or correction is starting to fade out. Understanding how to spot divergence in the market is a crucial fundamental skill that every crypto trader must learn. Characteristics such as a clear curve in short-term price action as highlighted in my technical analysis above on BTC, and three or two clear descending lows in price action.

Regular Bullish Divergence

  • Reversal of current downtrend
  • Second or third low.
  • Price makes new Lower Low, but the indicator makes Higher Low.
  • Trend changes to the upside.

Traders in both traditional and emerging financial markets will grasp a firm understanding of how to spot divergence. Given the volatile nature of cryptocurrencies, being able to predict future price action based on the simple rules above can provide assistance in developing your edge in the market, and in becoming a profitable trader. Below you can see an example of bullish divergence playing out in the Forex markets.

Bullish Divergence

Moving Average Convergence Divergence

Do you utilize divergence as a part of your trading strategy? Let us know in the comments below!


Images via Shutterstock, Tradingview

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Čvc 09

Bitcoin Price Rallies Towards $13,000 In Sudden 11% Surge

Just yesterday the Bitcoin price sentiment was starting to turn bearish as markets began to cool off. Many of the top analysts on crypto twitter had hinted at further losses as BTC posted lower highs. Today it has surged back in an epic 11% pump back towards $13,000.


Bitcoin Price Bears Bashed Again

BTC had been consolidating around $11,500 since recovering from its dip into four figures early last week. That range bound action finally broke during early Asian trading this morning when Bitcoin price broke through resistance and traded north of $12,000.

The king of crypto did not stay there and made a big push up to a new 13 day high of $12,880 according to Tradingview. It is the highest price Bitcoin has attained since June 27 when it slid down from that peak just $900 higher.

bitcoin

BTC price 1 hour chart – Tradingview.com

A new 2019 high could be imminent if Bitcoin price can close above the previous two daily candles at $12,950. Trader and analyst Josh Rager, who said yesterday’s weekly close was bearish, has changed his tune today as BTC continues to defy the markets.

“With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week”

“Fool me once, shame on you… Fool me twice, shame on me. No way was I shorting Bitcoin after a close under the resistance again. Not much stopping this train, just minor daily & weekly resistance left until new yearly highs.”

Altcoin Annihilation

Rager continued to comment on Bitcoin dominance which was approaching 67% at the time of writing.

“Bitcoin Dominance on its way above 66%. This is why you always keep a healthy percentage of your portfolio in Bitcoin especially in a bull market.”

It is the highest market share Bitcoin has had since December 2017 and those predominantly holding altcoins will be in a world of pain at the moment. Of the $26 billion that has entered the crypto markets over the past 24 hours, BTC is responsible for almost 85% of it.

The top three crypto assets after Bitcoin have not even gained 3 percent each. Even Litecoin, which is halving in just 27 days, has only managed a blip to get above $123. There are a number in the red at the moment including BNB, TRX, ADA, XMR, LEO, LINK and ATOM.

Many of those interviewed at the Taipei Blockchain event (link to Taipei article) were confident that altcoins would rally again soon but at the moment they are getting buried by their big brother. A new 2019 high could be imminent for BTC this week and after today’s move, all eyes are on $14,000.

Will Bitcoin price break resistance to hit a new yearly high? Add your thoughts below.

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Čvc 08

Bearish Weekly Close Could Create More ‘Buy Bitcoin’ Opportunities

Bitcoin and crypto markets have been mostly sideways over the weekend. There has been little movement in either direction for BTC and most of the high cap altcoins and all eyes have been on the close of the weekly candle.


Bitcoin Price Closes Below Resistance

The four hour chart has been showing lower highs for the past week or so however the range is tightening up which could lead to a possible breakout. With an intraday high of $11,700 and a low of $11,000 BTC remains range bound for now trading at 00.

bitcoin

BTC price 1 hour chart. Tradingview.com

Trader and analyst Josh Rager has been eyeing the charts for the next move and is leaning towards a bearish one following the close of the weekly candle.

“Bitcoin closed below the resistance while at the same time tapped the tippy top of the support near $9,614. With lower-highs on the 4 hr chart, I’d look to lean bearish as we start the week. But you know that you’d love to buy more BTC and crypto under $10k”

On the upside, any move below five figures may well trigger another ‘buy Bitcoin’ frenzy as we witnessed last week when BTC fell to $9,600 briefly.

Full-time trader and self-styled financial revolution prepper ‘Financial Survivalism’ has also hinted at a move to the downside and expects Bitcoin price to drop back into four figures this week.

“I’m expecting $BTC to return to 4 figures within the next 48 hours. Main reason is the high volume shooting star from last week.
Confirmation comes from the charts below:
1st weekly Stoch sell signal since Dec 17
Overbought W ADX
Bearish TK Cross on D cloud
4h Bear channel”

The sentiment appears to be spreading across CT this Monday morning as others echo the possible end of the rally.

“In the near term, I think upside on $BTC is limited. Likely the top is in for the next 3-4 months. Better to build some support first before the 6 fig moon mission.”

Altcoins In The Green

Not all is bearish during Asian trading this morning. A number of the altcoins are actually posting pretty good gains over the past 24 hours. Ethereum has made almost 6% taking it back over $300 again, and Tron is on a flyer surging 9% to retake a top ten place.

Monero is up a similar amount as XMR reaches $105 and Crypto.com Chain is in double digits this morning with an 11% pump. Total market capitalization has added $8 billion so maybe the altcoins could be starting to finally decouple from their commander at the top.

Will Bitcoin price drop back to four figures this week? Will there be favorable situations to buy more Bitcoin?Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: Josh Rager @Josh_Rager, Financial Survivalism@Sawcruhteez

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Čvc 05

Bitcoin Market Grew ‘Independently’ in Q2 2019: Binance Report

Correlation between the Bitcoin market and the altcoin market dipped in the second quarter of 2019, claims Binance.


The Malta-based cryptocurrency exchange pitted Bitcoin against thirty alternative cryptocurrencies to determine whether or not it moved in lockstep with them. The exchange noted that all the known altcoins were tailing the Bitcoin price trend positively in Q2/2019. Nevertheless, the speed at which they followed the leading cryptocurrency experienced a drop, implying that the altcoin market, as a whole, failed to run along with a supercharged Bitcoin price rally.

“Bitcoin (BTC) became less correlated with other crypto assets in Q2 2019 relative to the first three months of 2019,” read Binance. “Correlations declined between Bitcoin and altcoins, with a decrease in the average correlation of -0.11.”

In retrospective, a perfect positive correlation between two assets reflects their 100% probability of moving in the same direction. Conversely, a negative one means that the two would always run in the opposite direction. Assets with a correlation score above 0.5 show positive correlations between the two, while a score below -0.5 exhibits negative associations.

bitcoin, bitcoin price

Bitcoin Dips against Altcoins in Terms of Correlation | Image Credits: Binance Research

Binance noted that Ethereum came closest to Bitcoin with a 0.81 positive correlation in Q2/2019, down from 0.889 of the previous quarter. Similarly, the XRP-to-Bitcoin correlation dropped from 0.875 in Q2/2019 to 0.69 in Q1/2019. The statistics appeared the same across the rest of the cryptocurrencies, including Litecoin, MIOTA, EOS, Bitcoin Cash, Bitcoin SV, and others.

Flight to Quality

The said dip appeared in line with the Bitcoin’s growing dominance in the cryptocurrency market. The leading cryptocurrency mousetrapped more than 63 percent of the total market valuation, leaving other digital assets with a fractional influence. Binance called it a “flight-to-quality behavior,” a term which indicates investors’ partiality towards what they believe is the most bullish asset. Excerpts from the report:

“The overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by “just” 71 percent over the same period. This can likely be attributed to a “flight-to-quality” behavior by crypto investors in an early bull-market state.”

The statistics closely followed the findings of Gabor Gurbacs of VanEck. The digital asset director noted that Bitcoin had left all the blue chips (a basket of top ten cryptocurrencies) and smaller cap coins (another pool of top 100 cryptocurrencies) behind in the previous 12 months in terms of returns, as shown in his tweet below:

Although the Blue Chips (Ticker: MVDA10) recorded a lesser loss compared to the Small Caps (Ticker: MVDASC), a closer look reveals that Bitcoin had more than 33 percent dominance in the former.

Bitcoin Remains the King Cryptocurrency

The Binance report reflected a shift in crypto investors’ mindset. They considered Bitcoin safer than most of the alternatives available inside — and also outside — the cryptocurrency industry.

“The report could help in assessing whether today’s crypto-market environment behaves similarly to historical early stages of bullish environments in traditional financial markets,” Binance concluded.

What do you think about Bitcoin’s YTD performance? Let us know in the comments below.


Images via Shutterstock, Binance Research, Gabor Gurbacs

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Čvc 05

Bitcoin Price Begins Consolidation; Markets Cooling Down

As the parties wind down in the US and the impending hangovers begin to fester, Bitcoin is taking a breather. In what appears to be the beginning of a consolidation phase, BTC has dropped around 8% on the day.


Bitcoin Price Falls Back To $11000

The epic 25% bounce back from the depths of $9,600 took Bitcoin price to $12000 briefly yesterday. For the duration of the fourth, it managed to consolidate around $11,800 but has fallen sharply a few hours ago. The latest dip has returned BTC back to $11k, and it is currently holding just above there at 00.

bitcoin

BTC price 1-hour chart – Tradingview.com

Daily volume has retreated back to $25 billion and BTC market capitalization has just dipped below $200 billion again. As Bitcoinist reported earlier this week, BTC may have found a new floor at around $10,000 but a drop below this could signal a deeper dip than the previous one, possibly somewhere back in the $8k region.

The CT traders seem to have taken the day off for the US holiday and things are pretty quiet in crypto land at the moment. Looking at next levels of support, the 50-day moving average is currently at $9,200 so this may serve as the next lower low if BTC heads south again.

On the four-hour chart, Bitcoin price has already dropped below the 50 MA and could head towards the 200 which is currently at $9,600. As in previous cycles, there was a lot of buying pressure at four figures but this may not be of the same magnitude if BTC drops below $10k again.

CNBC, which often serves as a counter trade signal, seems to be bullish on Bitcoin however with this rather festive tweet posted a few hours ago.

Altcoins Getting Battered Again

Total crypto market capitalization has dumped over $15 billion on the day but Bitcoin dominance remains over 65% according to Tradingview.com. Yet again the altcoins, which are already in bad shape, are getting battered.

Ethereum has dumped 5% to return to $285 and XRP has shed a similar amount falling back to $0.387. Litecoin is holding $120 at the moment but Bitcoin Cash and EOS are both down 4%. There is a lot of red on the altcoin markets during Asian trading this morning and only a handful of the very low cap ones are making any progress.

The weekend may see more consolidation from Bitcoin which appears to result in a dump in the altcoins. It might be time for the daddy of crypto to take a breather for a bit.

Will Bitcoin price make another lower low or remain here for a while? Add your thoughts below.


Images courtesy of Shutterstock, , Tradingview

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Čvc 04

Bitcoin Price Approaching $12000 Again As Dominance Hits 65%

The recent Bitcoin price correction was over before it really began. A five-day slide culminating in a short-lived 30% dip below $10000 saw a huge bounce back by over 20% as BTC surged back above $11000. It’s market dominance is now heading towards highs not seen since 2017.


Bitcoin Dominance Hits 65%

Bitcoin price has continued to push higher since it topped $11000, 24 hours ago. There was clearly huge buying pressure at four figures and some have suggested that BTC may never fall that low again. The gradual crank higher has taken Bitcoin price to $12000 again during the morning’s Asian trading session. It is now exactly 25% higher than the dip on Tuesday.

bitcoin

BTC price 1-hour candles. Tradingview.com

A few hours ago one big green candle lifted Bitcoin price back above the 200 moving average on the hourly chart. It has pulled back a little and is currently trading at 00. Zooming out to the daily chart still paints a very bullish picture for BTC.

Once again the move has increased Bitcoin market dominance to highs not seen since late 2017. According to trader Josh Rager, it is facing resistance here and altcoins could soon start to react.

“$BTC dominance climbing at 65%. Bitcoin’s dominance hasn’t been above 70% since July 2017 & see this as a definite area w/ possible resistance. Majority of altcoins can continue to retest support until BTC dominance drops (which could happen near these levels) so pay attention.”

The discussion that followed had many thinking that BTC dominance could climb as high as 70% again where it was during the start of the 2017 bull run. This would absolutely obliterate the altcoins, many of which are still wallowing over 80% down from their peaks.

Fellow trader ‘CryptoFibonacci’ has noticed a triple top for bitcoin dominance which could spell a breakout to the upside.

“I’m not a big believer in “triple tops”. It will have to prove me wrong. Be careful if you are in Alts.”

Very few of the altcoins have done anything since Bitcoin’s bounce back. Ethereum is still below $300, XRP has not moved at all from $0.40 and Litecoin is stuck at $120 as the halving FOMO dries up.

Bitcoin is currently the top performing crypto asset in the top twenty with a gain of over 5% on the day. It doesn’t look like slowing down either as fears of Trump induced dollar manipulation to start to fester. The US president tweeted that America should match currency manipulation practices being carried out in China and Europe. Fiat fiddling is all good news for Bitcoin.

Will Bitcoin price hit $13000 this week? Will BTC market dominance hit 70% again? Add your thoughts below.


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Čvc 03

Bitcoin Price May Have Found The Floor At $10,000

The long-awaited Bitcoin price correction lasted less than an hour. Yes, it did dump 30% as many analysts had predicted, but mass buying pressure was triggered when it hit the target so BTC subsequently surged again. Now comfortably back over five figures again, some have seen this as the new floor.


Only 3 Bitcoin Price Candles Closed Under $10000

The pullback to $9,600 was short-lived. According to Tradingview.com, there were only three candles on the hourly chart that closed under $10000, the lowest at $9,780. Even the one that marked the 30% dip closed in five figures indicating that this could be the last time BTC price trades that low. The charts indicate that a lot of buyers were interested in sub-$10k Bitcoin, so many in fact that it did not remain there for very long.

bitcoin

Bitcoin price 1-hour chart. Tradingview.com

$10000 Is The New Bitcoin Price Floor

CNBC Futures Now, which has often been considered as a counter trade indicator, has indicated that Bitcoin price may have just found a new floor at $10,000. During the interview on ‘Futures Now’, broker Jim Iuorio stated:

“I’m actually starting to see bitcoin for what it may be, and that really is a genuine dollar hedged safe haven asset. At least, it has performed that way over the last six months and ten thousand seems to be a good level here.”

Iuorio added that he has been very impressed with the Bitcoin price action so far this year, especially since June when it went higher up as the US dollar fell. Scott Nations, who admitted that he was not a fan of Bitcoin, stated that as digital gold it works well because investors have the belief that it will do well when everything else is doing poorly.

Nations added that anywhere around $10k would be a good entry level and for him, the only time he would consider buying Bitcoin as someone who does not usually trade it.

Where Next For BTC?

If a new floor of $10,000 has been established for Bitcoin price, then consolidation above here may be the next moves over the coming days. Trader and analyst Josh Rager is in agreement.

“We had our 30% pullback so what’s next? History says that price consolidates followed by an average gain of 153% before the next big pullback.”

Consolidation at this range would not be a bad thing and may give some of the altcoins a chance to wake up a little. So far they have been hopelessly anchored to Bitcoin on the downsides but have done very little on the upsides. BTC is still in the driving seat as its dominance returns above 62% while its brethren remain stagnant.

Will Bitcoin price fall back below $10k again? Add your thoughts below.


Images via Shutterstock, Tradingview, CNBC Futures Now

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Čvc 02

Bitcoin Price Will Rally To $100,000: Binance CSO

There is no doubting that the Bitcoin price has been commanding things in crypto markets recently. Even with its current correction of 25%, BTC is still on a roll this year. The king of crypto has done so well that Binance’s Chief Strategy Office thinks it will surge all the way up to $100k.


Bitcoin Price Drops Back To Four Figures

The correction has gathered momentum this week and BTC price made two dips to $9,950 a few hours ago according to Tradingview.com. It is now well below both the 50 and 200 moving averages on the hourly chart and heading towards the 50 on the day chart.

From its high to current prices 00 Bitcoin price has now corrected 25% and looks to drop further. Lower highs and lower lows have confirmed the downtrend in the shorter term and traders will be looking at support levels around those moving averages to start re-accumulating.

The long term picture is still very bullish however and one industry executive thinks $100k Bitcoin price is not too far away. Binance Strategy Officer, Gin Chao, talking to BlockTV said:

“If you look at historical patterns you are probably looking at new highs at least for bitcoin in the $50,000-100,000 range.”

His comments on altcoins are interesting and looking at 2019 performance it would be hard to disagree with him. The majority of altcoins have done very little since their bear market lows in December 2018. A lot of the higher cap coins including XRP, Bitcoin Cash, Cardano, Stellar and Tron are still over 80% down from their all-time highs. Some are even over 90% down still.

Chao added that we are now entering the fourth market cycle for Bitcoin and in previous ones, there was a distinct correlation between the altcoins and BTC. This has not been the case in 2019 when altcoins have been stagnant while Bitcoin has surged.

Altcoin Avalanche

Last month a number of altcoins including XRP, BCH, EOS, Stellar and IOTA actually dumped a fair amount while crypto market capitalization in general increased by 27%. As BTC cools altcoins are freezing over again, many have dumped double digits over the past couple of days as the correction deepens.

Total market capitalization has shrunk by $80 billion since late last week however bitcoin’s share of that remains over 60%. Chao could be on to something as the calls for altseason have so far gone unheard as many of them are still in the depths of their own crypto winters.

Will Bitcoin price rally to $100,000? Add your thoughts in the comments below.


Images courtesy of Shutterstock, BLOCKTV

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