Kvě 23

10 Fintech Leaders Predict Bitcoin to End 2019 Above $9,500

Ten prominent fintech experts shared their bitcoin price predictions and all agreed that BTC would close 2019 above $9,500, according to Finder.com.


Experts Expect a Bull Market

The US-based comparison website surveyed 10 fintech leaders on their thoughts and projections on 13 cryptocurrencies (including the top-10 by market capitalization) and the participants included executives from BitBull Capital, Arca, and Blocktoken.

The participants were most optimistic about EOS, Binance Coin and Tron as each was forecast to gain 727%, 459%, and 449%, respectively.

When asked whether the current climate is ideal for the average person to invest in cryptocurrency, 5 out of 10 executives agreed that now is a good time to allocate a small portion of portfolio funds to digital assets. 4 survey participants also said that they believe Bitcoin will surpass its $20,000 all-time high during the next bull-run.

50% of the participants believe that the next uptrend will end just like the one in 2017. But while the majority of the participants expected Bitcoin to eventually cool off from its recent parabolic run, the general consensus was Bitcoin would exceed $9,659 by the end of 2019.

Analyst and participant Joe Raczynski said that:

We are entering a new period with Bitcoin. Many of the institutional players have said they are done with this experiment (publicly), which may be the case [but] I think privately, some other hedge funds and other institutions will continue to invest during this lower period.

Altcoins to Outperform Bitcoin in 2019

Surprisingly, Blockchain Capital partner Jimmy Song expects Bitcoin to close 2019 at $5,901 and Song explained that there seems to be some daylight between Bitcoin and other cryptos.

Bitcoin will start being seen as a different asset than all the others,” he said.

Meanwhile, Bitbull Capital’s Sarah Bergstrand said that she expects bitcoin price to “bounce between $3,000 and $5,000 for the next few months.”

The survey results also show that the majority of participants think Cardano (ADA) will wrap up 2019 at $0.14 and the group was fairly optimistic about EOS.

Brenden Markey-Towler from RMIT Blockchain Innovation Hub predicting that

….as EOS transitions with NEO and Ethereum to next-generation consensus algorithms, I suspect their scope as an institutional technology will increase, and their value with it.

Stellar Lumens (XRP) is expected to reach $0.18 by year-end and the group optimistically forecasts that TRON and XRP will close the year at $0.15 and $0.44.

Finder has held its Bitcoin Predictions Panel since January 2018 and interested investors can find the details of each monthly survey here.

Do you agree with these bitcoin price predictions? Share your thoughts in the comments below! 


Images via TradingView.com, Twitter, Shutterstock

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Kvě 18

Bitcoin is Front Running Stock to Flow Price Model at $7300

Despite dropping by about $1,000, Bitcoin is still way ahead of even some of the most optimistic price projections and detailed price forecast models. Here is a look at how Friday’s ‘flash crash’ hasn’t derailed Bitcoin in the long term.


Current Bitcoin Price Still Leads $1 Million S2F Model

Tweeting on Saturday (May 18, 2019) Bitcoin analyst “planB” showed how even at $7,300, BTC still leads the stock-to-flow (S2F) model about $1,000 on the road to hitting $1 million per coin.

PlanB’s S2F model posits that scarcity and value have a direct relationship with scarcity being a measure of stock flow (SF). The analysis also takes into consideration important parameters like Bitcoin block reward halving which occurs every four years until all 21 million BTC are mined.

According to the model, by the time of the next halving which is in May 2020, BTC’s SF should double from its current value of 25 to 50. This doubling would bring BTC’s SF closer to that of commodities like gold.

BTC permabulls like Max Keiser say Bitcoin has the potential to reach a fraction of the gold market capitalization, which is somewhere in around $8 trillion. The S2F model predicts that by 2020, BTC should have a market price of $55,000 based on an SF value of 50.

S2F hinges heavily on scarcity which for BTC takes on another dimension given that a portion of the 21 million total token supply isn’t even attainable since some BTC are forever lost.

Data from BitInfoCharts shows that there are about 16.82 million BTC held in dormant Bitcoin addresses. Between cumulated BTC dust and lost private keys, there are about 10.5 million BTC that haven’t moved in over a year.

16 Million Bitcoin Likely Lost

Perfect Pullback?

Before the Friday price drop, there had been the talk of a possible retracement in the BTC price action to the mid-$6,000 level. These predictions hinged on massive profit taking above $7,000, creating another entry point for a new BTC accumulation in preparation for a fresh upward swing.

In the short-term, there is an expectation that BTC might slip further downwards perhaps to the 50-day or 200-day moving average support levels. This puts a possible downward slide between $4,500 and $5,500.

However, such a move would mean breaking the $6,400 support level which characterized BTC trading for most of 2018. Only the fallout from the Bitcoin Cash civil war in November 2018 successfully took BTC below that price level.

Do you think the flash crash adversely affected Bitcoin’s parabolic advance? Let us know in the comments below.


Images via Twitter @100trillionUSD and BitInfoCharts.com, Shutterstock

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Kvě 17

Bitcoin Now a More Popular Google Search Term Than ‘Donald Trump’

Google search interest in Bitcoin has spiked to a fresh six month high as BTC has posted 100 percent gains during the same period. In fact, people are now searching for ‘Bitcoin’ more than ‘Donald Trump.’


As Price Rises, People Google Bitcoin

It’s no secret that public interest in ‘Bitcoin’ and everything related rises as BTC price moves. People are naturally curious about what’s causing the bitcoin price 00 to skyrocket. They also want to know what Bitcoin is and whether now is a good time to hold, buy or sell.

Bitcoin’s recent rally over $8K has indeed started seeing more people googling to find out more. Currently, the number of searches is the highest since mid-December 2018. Moreover, this number is projected to reach levels not seen since the peak price of late 2017.

bitcoin google search trends

Google search trends are one of the best online resources for gauging real-time public interest in Bitcoin.

This was demonstrated at the beginning of April, for example, when bitcoin initially broke out of its bearish slump. Google searches for bitcoin spiked.

Today it is more popular than other big search terms such as SpaceX, Tesla, Elon Musk and even Donald Trump.

Donald Trump bitcoin

Furthermore, the majority of searches for Donald Trump are confined to the US. While searches for Bitcoin are global with significant activity on all continents.

In 2018, ‘What is Bitcoin’ topped the “What is…?” Google category in both the UK and the US.

Top 10 Countries Looking Up ‘Bitcoin’

In fact, the top ten countries interest in bitcoin right now (excluding St. Helena) are:

  • Nigeria
  • South Africa
  • Ghana
  • Netherlands
  • Austria
  • Switzerland
  • Singapore
  • Slovenia
  • Australia
  • Germany

Where Are People Googling Bitcoin in the US?

In the US, the states where Bitcoin is now being searched for more than Donald Trump may surprise you.

The top 10 states/regions are:

  • Hawaii
  • Nevada
  • California
  • Washington
  • New York
  • Utah
  • Colorado
  • New Jersey
  • District of Columbia
  • Alaska

Chicken or the Egg?

So does price precede interest or does interest precede price?

Evidence exists for both, in fact. As Bitcoinist reported earlier this month, the volume of tweets and Google Search Volume Index (SVI) were found to be leading price indicators for Bitcoin and Ethereum, according to a research paper published by the Southern Methodist University.

google search bitcoin

However, this particular study mainly focused on the late 2017 price spike and the simultaneous retail interest that likely fuelled the surge to $20K. Notably, it found Tweet volume to be a much more reliable indicator of potential price increase than Google searches – which tend to lag price moves.

As of late, Google searches have shown to rise a day or two later. For example, the spontaneous surge by $1,000 that occurred on April 1st was followed by a surge in searches on April 2nd and 3rd. This suggests that the general public looks for more information about bitcoin after seeing that the price has already risen (and covered by the mainstream media).

At the same time, the Tweet volume for #bitcoin has been rising steadily since March. Currently, it is at about 30K per day, though still lower compared to the period prior to November-December 2018.

Making a Comeback

Overall, the figures suggest that interest is coming back as the price of BTC appears to be bottoming out. Relevant indicators such as the Mayer Multiple and many market analysts are also suggesting that the bear market has come to an end.

If this is indeed the case then some outrageous bitcoin price predictions may not be so outrageous in the future. With fundamentals stronger than ever and shifting market sentiment, a new bull market would do seem to be around the corner, if the past few weeks are anything to go by.

So if these trends are anything to go by, ‘Bitcoin’ will undoubtedly become the most popular search term in

Will price eventually hit $100K in the future as Max Keiser expects? If it does, you can surely bet that the searches would follow.

Do Google searches for Bitcoin lag behind price? Share your thoughts below!


Images via Shutterstock, Google trends, Bitinfocharts.com

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Kvě 14

Stablecoins Beat Bitcoin, Says ECB Presidential Hopeful

Francois Villeroy de Galhau of the European Central Bank (ECB) says stablecoins hold more promise than Bitcoin. The ECB policymaker says fiat-pegged crypto will have a place in the legacy financial system.


We Prefer Fiat-Pegged Crypto

According to Bloomberg, Villeroy believes that cryptocurrencies pegged to fiat will be the ones to experience greater utility within the mainstream finance apparatus. Speaking in Paris on Tuesday (May 14, 2019), Villeroy, a frontrunner for the ECB Presidential seat opined:

The Bank of France is “observing with great interest initiatives in the private sector which aim at developing networks within which ‘stable coins’ would be used in transactions involving ‘tokenized’ securities or goods and services.” These are quite different from speculative assets like bitcoins, and more promising.

Of Course, Central Bankers Prefer Stablecoins to Bitcoin

Villeroy’s comments should come as no surprise as bankers haven’t hidden their dislike for Bitcoin and its ability to disrupt their stranglehold on global finance. The disintermediation of the payments system is in many ways an attack on their bottom-line.

Answering questions during the ECB Youth Dialogue on Wednesday (May 8, 2019), ECB President Mario Draghi described Bitcoin as not being a “real currency” but more like an asset, saying:

A euro is a euro – today, tomorrow, in a month, it’s always a euro. And the ECB is behind the euro. Who is behind the cryptocurrencies?

Draghi fails to mention that questionable monetary and fiscal policies which are often political have a negative impact on the purchasing power of fiat currency. One BTC will always be worth one BTC.

In February 2019, the U.S. Federal Reserve did a complete 180 reportedly under duress from the White House to adopt a more dovish stance. Several commentators say quantitative easing and negative interest rates will put the mainstream market on the path of another major collapse.

$2,000 in Less than Five Days

While uncertainty reigns in the mainstream market, Bitcoin continues to rise even higher, adding more than $2,000 in price value in less than a week. BTC is up more than 120 percent since the start of 2019.

This recent parabolic advance has coincided with renewed institutional interest from brokerage giants and investment firms alike. TD Ameritrade, Fidelity Investments, and E-Trade plan to debut BTC trading for institutional clients.

Bakkt on Monday (May 13, 2019) announced that it would begin testing its physically-settled BTC futures contract in the summer. The company also says it is close to obtaining the green light from the U.S. Commodity Futures Trading Commission (CFTC).

Do you agree that the banking class is running scared of Bitcoin? Let us know your thoughts in the comments below.


Images via Twitter @ecb, wikimedia.org

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Kvě 12

Parabolic Advance Halts For Now – So What’s Next For Bitcoin Price?

Bitcoin went absolutely parabolic over the weekend! After topping out at $7,500, traders are now wondering what is next.


Bitcoin Price: Market Overview

Last week brought an onslaught of bearish news that typically negatively impacts Bitcoin price 00. But surprisingly, it shrugged at the news and has gone bananas as its dominance rate rose to highs not seen since 2017.

At the moment, nearly every analyst is screaming “bull market” and making calls for what they believe the new all-time high will be.

Friday and Saturday’s amazing run firmly brought Bitcoin above $6,000 to the previous resistance zone where $6,800 and $7,300 held before the November 2018 40%+ correction and the icing on the cake was a quick blow off to $7,500. A number of crypto analysts have also pointed out that while Bitcoin has gone parabolic, the parabola has broken as the digital asset has not set a higher high after reaching $7,581?

It should also be noted that Bitcoin’s lightning quick ascension took place with few retracements and a pullback. In other words, consolidation could be imminent.

Bears are also likely closely eyeballing the current price action to establish short positions right at the current top so traders should exercise care and not FOMO into a position or play the upcoming retraces without some sort of stop loss.

The weekly RSI has entered the overbought zone and as other analysts like Dave the Wave have pointed out, the MACD is more extended now that it was during the peak of the 2017 bull run.

BTC-USD Daily Chart

The daily chart shows that the RSI crossed 85.3779, which is the point that traditionally marked a trend change in BTC price. BTC/USD first topped a$7,489 at this threshold was crossed and then ran a little further to $7,581 before cooling off and entering what is likely to be a period of consolidation.

Going into the weekly close, BTC looks set to close above the $6,300 if not the $7,300, which most traders believed would pose significant resistance. According to the daily and weekly chart, $8,165, $8,200 and $8,500 are the next levels which could pose resistance for BTC to overcome.

The general consensus is that after such an amazing run BTC needs to either consolidate and regain strength or retrace to previous supports as the RSI, MACD, and Stoch are becoming overextended on the daily timeframe.

BTC-USD 4-Hour Chart

Traders looking to catch the dip might set alarms at $5,900, $5,500, and $5,100 in order to play oversold bounces and following bull crosses on the hourly, 4hr, daily and weekly MACD seems to be the best method for putting traders into profit.

At the time of writing the 4-hr chart shows the MACD nearing a bearish cross and the RSI remains in bullish territory.

BTC has pulled back to nearly rest on the 20 MA of the Bollinger band indicator at $6,660. A drop below the 61.8% Fib retracement level ($6,586) is where things could get interesting.

Traders should also keep an eye on the BTC-USD Longs to Short ratio and BTC-USD shorts in general as bears are likely to set up positions at the recent top and additional rejection points like $7,000.

Happy trades friends!

Where do you think Bitcoin will go over the next 48-hours?

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for the analysis are provided by TradingView.]

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase.fkff

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Kvě 06

Twitter and Google Trends Interest Precedes Cryptocurrency Price, Study Finds

The volume of tweets and Google Search Volume Index (SVI) were found to be leading price indicators for Bitcoin and Ethereum, according to a research paper published by the Southern Methodist University.


The importance of sentiment

In the paper, researchers gathered data on Twitter mentioning Bitcoin and Ethereum; the same was done using Google trends. Building on the ideas of previous research, the hypothesis was that the number of tweets and their sentiment (positive and negative) can influence prices. In the study, it was uncovered that the number of tweets and Google searches changes first before prices do.

The role of sentiment in technical or market analysis is to uncover people’s attitudes towards an entire market or individual index (in this case Bitcoin and Ethereum). The theory of sentiment analysis is a branch of technical analysis that states that price discounts everything, and that price trends are ultimately a reflection of crowd psychology.

Therefore, in theory, if you could measure how positive or negative the people’s shared views are towards a particular stock or cryptocurrency, you could estimate its price trajectory.

Although in this particular study, tweet volume, and not sentiment, was found to be a leading factor in the price of cryptocurrencies. The lack of sentiment being the leading factor was theorized due to the amount of “noise” there is on Twitter about the currencies compared to actual conversation.

For instance, the researchers found that there 21 million bots on Twitter posting mostly factual information about prices, advertisements, spam etc. Not humans having real discussions about how they feel about either Bitcoin or Ethereum.

The other issue that researchers found with Twitter was that sentiment was mostly positive in nature — even when the prices of Bitcoin and Ethereum were falling.

People who tweet about cryptocurrencies even when their prices drop have an interest in them beyond investment opportunity making the tweets biased towards positive.

Despite their findings, the researchers did not completely rule out sentiment analysis using different modeling techniques.

Methodology

In the study, researchers used to open source VADER (Valence Aware Dictionary and Sentiment Reasoner) for analyzing tweet data. Tweet data was taken dating back to 2014 using the site bitinfocharts.com. Google trends data (SVI) was taken as far back as 2004 scaled in the terms proportion to all searches on all topics for the terms Bitcoin and Ethereum.

Results

For the Google trends data, the report found that the price was highly correlated with searches for the keyword Bitcoin and Ethereum, and that these search spikes occurred before the actual increase in prices were observed.

Another strong correlation between Twitter and Bitcoin’s price was found, except this time with more compelling results.

Finally, using machine learning, the results from the Google trends and tweet data was also put into a linear model to verify the positive correlations. The data was split between a training model and testing in an 80% and 20% split.

Social Media Helps Monitor Investor ‘Chatter’

The VADER data could provide some valuable data for investors in gauging market sentiment.

Previously, Bitcoinist has covered the importance of social media chatter on Twitter before with tools such as the ‘Twitter Hype Index.’ But this is the first time that Twitter and SVI data has shown to lead, and not follow, the prices of the most popular cryptocurrencies.

Can social media data provide valuable trading insight? Share your thoughts below!


Images via Shutterstock

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Kvě 02

Bitcoin ‘HODL Waves’ Chart Shows Price Building Momentum

Woobull.com, a provider crypto asset market, and network data has added new charts to its Bitcoin price, momentum, volume, and volatility platform.


Bitcoin Price Building ‘Momentum’

The news was originally announced in a tweet by Willy Woo, market analyst and founder of Woobull.com

The “Bitcoin Momentum Chart” appears to lead the price of bitcoin  (Similarly to the RSI and MACD, but specifically for bitcoin) as changes in crowd psychology tend to happen before prices do.

As Bitcoinist has written before, Bitcoin’s price is typically followed by public interest.

The indicator is also seemingly able to quantify price trends based on bull markets and changes in momentum plotted on a separate line graph. This indicator could help traders understand if a strong price trend is in force.

It should be noted that there is already a directional movement indicator that was developed in the 1970s named the Average Directional Index (ADX). The ADX appears to follow the same premise as the Bitcoin Momentum Chart — although this new chart might be easier for new traders to read and therefore understand.

Signaling and investment-related charts

Woobull seemingly offers traders and investors charts and data that they cannot easily find online. For instance, many, (if not all) of the charts on Woobull are sourced outside of the mainstream technical analysis sites such as tradingview.com or CoinMarketCap.

The site, therefore, might be more suited towards investors who look at long-term and secular trends than swing or day traders that look at the hourly candles. Still, the information provided from Woobull remains objectively useful for anyone with a technical or financial interest in Bitcoin.

One interesting chart above is titled “Bitcoin Risk Adjusted Returns vs Other Assets.” The chart is used to “compare Bitcoin ROI, adjusted for its risk, to other assets.”

Another graph to pay attention to is its “HODL Waves” which claims to offer “A cross-sectional view of Bitcoin HODLers over time, shows demand and supply from new and old HODLers.”

The Bitcoin Valuation cap shows “a collection of useful valuation metrics on Bitcoin.”

The Bitcoin NVT ratio shows when the currency is either overbought or oversold, which functions identically to the existing calculations of the RSI or stochastics that also measure extreme readings.

Bitcoin monetary and network statistics

The below chart shows the difference between Bitcoin’s network value and network volume.

The graph below claims to “chart user-centric metrics tracking network congestion, e.g. payment fees, confirmation times.”

The graph below shows the growth (inflation) of bitcoin over time.

In closing, there are many more charts that WooBull offers that will be of interest to anyone invested in Bitcoin. Interested Bitcoiners are encouraged to check them out.

Will you be using Woobull in future? Let us know in the comments!


Image source: Woobull.com, Shutterstock

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Dub 25

Tether Supply Hits Record High – Here’s What Bitcoin Did Last Time This Happened

Bitcoin price has room for immediate 12 percent growth, according to the latest figures showing current availability of major stablecoin Tether (USDT).


USDT Printing Peaks

Bitcoin price after correcting from its 2019 high of $5620 earlier this week, currently trades just under $5500.

At the same time, USDT production stepped up in April to almost reach its highest-ever level of $2.83 billion April 25.

As Bitcoin entrepreneur Alistair Milne noted on social media Thursday, the last time more than $2.8 billion worth of USDT tokens was in circulation was October 2018, at which time BTC price held at around $6250.

Tether production and reduction have traditionally impacted on Bitcoin price performance. As Bitcoinist previously reported, sudden ‘printing’ of USDT induces volatility in Bitcoin markets.

Since April 8, the USDT supply has increased by more than one third from its previous level of $2.08 billion.

Overall this month, BTC/USD 00 has jumped by a broadly similar amount – at press time, 32 percent since April 1.

Sending Bitcoin Back Over $6k

Tether has frequently come in for criticism over its printing activities, pressure increasing in recent months after officials appeared to quietly remove promises that all tokens were backed by US dollars.

Having billed itself as the opposite of fractional reserve banking, the new descriptions of USDT being supported by unspecified “reserves” drew predictably undesirable comparisons.

Nonetheless, the potential room for growth compounds already strong sentiment among commentators that Bitcoin price can only go up, not down, from current levels.

As Bitcoinist reported earlier this week, some of the industry’s best-known names have attributed high probabilities to the concept that the price of bitcoin has definitively bottomed.

Specifically, that ‘bottom’ came in December last year, when upheaval among developers of altcoin Bitcoin Cash caused BTC/USD to drop by almost half to $3100.

Going that low again, analyst Willy Woo concluded this week, is just 5 percent likely.

Not Out of the Woods Yet, But…

Buoying the bulls are factors centered on technical and adoption signs. Bitcoin economic activity, Bitcoinist noted this week, is around 30 percent higher than during the cryptocurrency’s all-time highs of $20,000 in December 2017.

Despite its lengthy bear market the following year, Bitcoin is nonetheless recovering strongly within the context of those highs.

The behavior sets Bitcoin further and further apart from altcoins, which have overwhelmingly lost more versus their best-ever price and broadly failed to recoup the losses in the interim.

Ethereum (ETH) is currently down 88 percent against Bitcoin’s 72 percent, while third-largest asset by market cap Ripple (XRP) is still down 90 percent.

What do you think about Tether supply versus Bitcoin price? Let us know in the comments below!


Images via Shutterstock, charts.cointrader.pro

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Dub 21

Bitcoin Price Volatility Soars 200% in April

Bitcoin price volatility has tripled over the past 30 days as BTC/USD has made an impressive push above the $5,000 mark. At the same time, overall volatility is actually in decline as Bitcoin adoption spreads. 


Bitcoin Price Volatility Triples in April

The volatility of bitcoin price has surged nearly 200 percent from a monthly low of 1.26 percent to 3.31 between April 1 and April 2, according to Bitvol.info. Currently, the volatility stands at 3.54 percent.

bitcoin price volatility

This occurred as BTC/USD skyrocketed by 22 percent in just the span of one hour propelling the cryptocurrency above $5,000 for the first time in 5 months.

Since the early April surge, the price has remained in a relatively tight range between $4,900 and $5400 amid bullish forecasts and other indicators possibly signaling a market bottom.

Bitcoin Volatility Decreasing With Time

The given volatility index gauges the price movement of BTC price over the past 30 days. Currently, the volatility stands at 3.54 percent, the highest in 3 months.

Overall, bitcoin price volatility has actually been declining over the years. In fact, 2018 was one of the least volatile periods in Bitcoin’s history despite an 80 percent drop in USD value.

Last year, the volatility index remained under 4 percent for most of the year. The only exceptions being the tail-end of the January 2018 crypto market price peak and the November-December period when BTC/USD saw a steep plunge below the $6,000 mark.

bitcoin price volatility

Data from the past 8 years shows a clear downtrend in overall spot price volatility. Despite the 80+ percent changes in bitcoin price in 2018, today’s fluctuations are nothing compared to Bitcoin’s early years when the price could easily move +/- 100 percent in a single day.

No One Wants a Stable Bitcoin

One of the most common criticisms of Bitcoin is that it is too volatile. Its wild fluctuations in price, the argument goes, means it cannot be money. Because its USD equivalent value transferred can diminish (or rise) in seconds.

This concern falls flat though because this problem is solved by BTC payment processors, stablecoins and other solutions.

At the same time, fluctuations in spot price shouldn’t be too surprising as bitcoin emission doesn’t follow typical supply and demand. This is why many traders and investors actually love the chaos of bitcoin price 00 volatility. When price moves, everyone pays attention.

It is these volatile days, in particular, that have given traders the biggest returns, compared to the rest of the year. This is the time of maximum opportunity and likely why having a low time preference and ‘hodling‘ — instead of trying to time the market — has proven to be a successful strategy for many Bitcoin investors.

Volatility Boosts Bitcoin Awareness

As Bitcoinist previous reported, overall interest in bitcoin also lags behind price moves. Google search trends over the past month reveal that the phrase “buy Bitcoin” spiked a day after the price surge caught everyone off guard.

As price moves (in either direction), people want to know why. What is Bitcoin? Should they buy now? Should they sell? Why is it rising so fast?

Moreover, virtually everything in the cryptocurrency space mirrors the bitcoin price chart. From website traffic to trading volume, to the number of headlines seen in the press.

Admittedly, the majority of the public is all about ‘when moon?’ and not ‘in it for the technology.’

Unsurprisingly, greed and fear drive the market. Luckily, humans have the ability to learn from experiences.

Educating yourself about what bitcoin is, why it was created, and historic market cycles could spare you the FOMO (fear of missing out) next time around. It could also help prepare for the next spout of bitcoin price volatility and avoid buying high and selling low.

In the meantime, all eyes will be glued to the price of bitcoin as traders wait to catch the next wave.

Is the return of Bitcoin volatility another bullish sign for BTC price? Share your thoughts below!


Images via Shutterstock

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Dub 16

Bitcoin Consolidating Above $5K a ‘Positive Sign,’ Says Crypto Hedge Fund

It’s safe to say that Bitcoin has had a good Q1 2019, gaining upwards of 30 percent of its value since January 1st. Now, a new report has it that if the price consolidates above $5,000, this could lead to further increases throughout the year. 


Bitcoin Price $5K Consolidation a ‘Positive Sign’

According to a new report by BitBullCapital, a cryptocurrency hedge funds manager,”the fact that Bitcoin has managed to retain gains from early April is a very positive sign.

Moreover, CEO Joe DiPasquale outlines that the bitcoin price 00 is seeing consolidation above $5,000. If this continues for another week or two, it could lead up to a shot at the $5,500 level.

Going further, the report reiterates that the latest BTC/USD rally was caused by a large order, which was executed simultaneously on multiple exchanges and was likely an algorithmic one.

Notedly, such a move should have been viewed with a certain skepticism as it’s not organic or steady in its nature. However, it brought back substantial market momentum, which is considered to be a positive sign.

It’s worth noting, though, that Bitcoinist reported that another reason for the latest rally might be hidden in the increased activity across the board, as data shows that the number of active wallets has risen by as much as 40-60 percent.

This, with a significant uptick in institutional interest, are also likely the reasons why Bitcoin managed to sustain the recent gains.

But 2017-Type Run ‘Not in the Near Future’

On the other hand, the cryptocurrency hedge fund also believes that a run similar to that back in 2017 is unlikely to be seen “in the near future.”

It notes that for this to happen, there needs to be a major catalyst such as “global governmental approval and integration with mainstream services and portals.”

…[W]e do not believe a run similar to the 2017 drive can be seen again, at least not in the near future and particularly not in the absence of major catalysts such as global governmental approval and integration with mainstream services and portals… [W]e do expect steady growth in the years the come, building the foundation for a surge when the timing is right.

DiPasquale also says that there is a real risk for the cryptocurrency failing to maintain its current range and to retest the $5,000 level in the coming weekend if the trading volume starts to drop. Reads the report:

If $5,000 breaks, we are likely to see support around $4,700 – $4,800 and reconsider market sentiment and fundamentals.

However, Bitcoinist reported that the Mayer Multiple by Trace Mayer, a key indicator which called 2015’s bottom, is flashing again, suggesting that the price may have already bottomed.

Other Cryptocurrencies Would Benefit

On another note, it also outlines that an increase in Bitcoin’s price could also cause other cryptocurrencies, especially those closely related to it, to surge as well.

This already happened with Litecoin, which gained upwards of 55 percent following Bitcoin’s rally.

The cryptocurrency has since lost some of its gains but is still substantially higher than prices from last month.

BitBull Capital manages cryptocurrency hedge funds, and is the “the first cryptocurrency fund of funds,” BitBull Fund manages a strategically selected bundle of 10 of the more than 600 crypto hedge funds for its investors, including gaining access to exclusive, closed funds and $M-minimum funds.

What do you think of the recent report? Do you think we’ve entered a new bull run or are the bears still in charge? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock, TradingView

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