Srp 20

Bitcoin Network Grows With $2 Billion BTC Moving Daily

There are several measurements of the health of the bitcoin network. Hash rate is probably the first that comes to mind but daily volume is another indicator of how successful the system has been.


Govts and Banks Cannot Stop Bitcoin

Bitcoin was spawned by a movement dedicated to the freedom of financial oppression by central banks and governments. Personal spending power is governed by bankers and politicians, and in a world where state fear is increasing along with terrorism, capital controls will become more commonplace.

People are being restricted on how and where they can move their own money. The bad few have changed everything for the good many, and ever invasive new money laundering and monitoring regulations affect everyone.

Very few countries in the world allow their citizens to move their own money at free will and most will actively monitor bank accounts whether suspicious or not. The state controls the finances, not the individual.

This is the problem and the answer has become clear in recent years. Bitcoin provides a decentralized form of currency that can be moved peer-to-peer without government intervention. At the moment it is early days in the industry and many are still reliant on centralized crypto exchanges that can suppress that freedom if necessary.

The bitcoin network has grown to such an extent that an average $2 billion worth is being transferred every day. Industry observer ‘Rhythm Trader’ has acknowledged the true power of bitcoin.

$2,000,000,000 worth of bitcoin are moved, on average, every single day using the network. No government, bank or third party had to verify these transactions, nor could they have stopped any of them if they wanted to. The true power of bitcoin.

The power that this network is capable of is just one aspect of it. Yes, bitcoin can be truly disruptive and this is what governments fear. The escalating trade war between the US and China is a prime example as both governments want to devalue their own currencies to outdo their opponents.

Bitcoin cannot be devalued unless it is perceived to be worth less by those that trade and hold it. The opposite is likely to happen however as global economic woes deepen. Scarcity is another aspect of bitcoin which was coded into it from the genesis block. Economist Misir Mahmudov took this philosophical view:

Time = currency of life
The key property of time is scarcity
The only thing that shares this quality is Bitcoin

Food for thought.

Will bitcoin continue to grow as world economies crumble? Add your thoughts below


Images via Shutterstock, Twitter @misir_mahmudov, @Rhythmtrader

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Srp 12

Bitcoin Closes Highest Weekly Candle in Over a Year

The weekend has been largely bearish for bitcoin price as it dumped 6% after a long period of consolidation. The move dropped BTC back to support, keeping it range-bound, but the weekly candle close has been the best since early 2018.


Bitcoin Weekly Close Over $11.5k

Markets have remained flat following bitcoin’s $600 dump on Saturday. The plunge took BTC back down to $11,200 before it started trading sideways. Sunday saw another dump as the digital asset dropped down to $11,090 but bounced back from there pretty quickly.

Since then, BTC returned to $11,590 but has been falling back during the Asian trading session following a death cross on the hourly chart. At the time of writing bitcoin was trading just below support at 00.

bitcoin

BTC prices 1-hour chart – Tradingview.com

Bitcoin gains since its big pump last Monday have been eroded as the week has progressed. However, this did not prevent a bullish weekly candle closing just above $11,500 according to Tradingview. Trader and analyst Josh Rager pointed out that a close above $11,474 would result in the highest weekly close in 2019.

Currently under weekly resistance.
Short term support flipped back to resistance on lower time frames.
Close above $11,474 would be highest weekly close in 2019

This is marginally higher than the weekly close in early July but there has not been one this high since early 2018. The daily chart still paints a picture of consolidation as range-bound trading extends into another week.

Despite the bullish weekly close, there could be further downsides in a larger correction. According to analyst ‘Financial Survivalism’ bitcoin could fall below $9k in the next week or two.

Originally I was targeting $8,000 if $BTC brokedown the 2 week bull trendline.
After further analysis I am adjusting that to $8,775

No Reprieve For Altcoins

Bitcoin dominance is still hovering around 70% so there is no reprieve for altcoins yet as most of them are still flat or in decline again. Ethereum has not done much since its dump over the weekend but remains above $200 for now. It is up marginally on the day, trading at $213 but further losses are likely if the longer-term downtrend continues.

Bitcoin Cash has made the biggest move in the top ten with a 5% gain to reach $335. Chainlink and Cosmos are also climbing by around 4%, but these are the only two making a move. The rest are in decline as they have been for most of the past week with IOTA, NEM, and CRO getting hit the hardest.

Will bitcoin price resume its rally this week? Add your thoughts below.


Images via Shutterstock, Twitter @Josh_Rager @Sawcruhteez, Bitcoin trading charts by Tradingview

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Srp 01

Bitcoin Price Boosted on Fed Rate Cut, Back To Five Figures

Bitcoin has survived its first US FED interest rate cut and actually got a boost from it as many had predicted. The king of crypto has managed to climb back into five figures which has lifted cryptocurrency markets during the morning’s trading session.


Bitcoin Price Taps $10,175

A few hours ago BTC reached an intraday and five day high of $10,175 according to Tradingview. This key resistance level is proving hard to crack as it has been hit five times now since the fall below $11k. The move has added almost 5% to bitcoin prices as it shifted up from yesterday’s levels around $9,700.

bitcoin

BTC prices 1-hour chart – Tradingview.com

The 50 and 200-hour moving averages have now crossed again indicating bullish momentum on this short time frame chart. BTC is now back above the 50 MA on the four-hour chart but remains below it on the daily picture where it sits at $10,500. At the time of writing bitcoin price has dipped back into four figures and is trading at 00.

Industry observers have been commenting on the price action which was mirrored by the USD following the expected rate cut.

“Bitcoin survived its first ever Fed rate cut… despite stronger USD
– hmmm, does #Bitcoin transcend fiat monetary policy?
A good sign nevertheless”

The ‘cryptowinterisover’ hashtag may well apply to bitcoin which has made over 200% since its 2018 low, but it is definitely not the case for altcoins which are still in a deep freeze.

Popular trader and economist Alex Krüger observed the actions of BTC immediately after the announcement as it did not make any wild movements.

“That’s how an uncorrelated asset for which monetary policy is a very minor driver trades. I’m surprised this is still the case, but it is. Theoretically, the more institutionalized class the asset class becomes, the more it will react to the Fed. Not there just yet.”

Litecoin Back in Halving Mood?

The only other altcoin shifting gears at the moment is Litecoin which is approaching the psychological $100 barrier once again. Since this time yesterday, LTC surged 8.7% to touch $100 before pulling back to the high $90s. The halving is the only thing that could be driving momentum at the moment as it is now only four days away.

The rest of the altcoins are flat or falling back still. Bitcoin SV, Cardano, LEO and Cosmos are all dumping 2-4% while the rest remain immobile.

Can bitcoin price remain above $10k this time? Add your thoughts below.


Images via Shutterstock, BTC/USD charts by tradingview

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Čvc 27

Bitcoin Boosted By Boris and Brexit

This week saw a new prime minister take over the helm in Britain. Boris Johnson has been handed the unenviable task of guiding the UK through Brexit, coincidentally the economic unrest has caused a spike in the interest for bitcoin according to Google.


Bitcoin Searches Spike Ahead of Brexit

Google searches have risen to their highest levels in England for a year according to reports. The term ‘bitcoin’ has generated more interest on Google Trends recently as Britain barrels towards a long awaited exit from the European Union.

Fresh in the hot seat, Boris Johnson has maintained that he will not play ball with Brussels and a ‘no deal Brexit’ would be the case failing all other options. Politicians in opposing camps and ‘remainers’ have said this would be disastrous for the UK economy, but in reality the years of drawn out infighting and division appears to have done the damage so far.

This scenario has clearly caused concern on an economic level as the GBP has fallen dramatically over the past year. Since the end of February Sterling has lost 7% against the US dollar, falling to a twelve month low of $1.238 this week.

At the moment any hope of brighter days ahead for Britain is on the back burner as the likelihood of exiting the EU in October with no trade deals looms. The European Commission is remaining steadfast with President Jean-Claude Juncker, telling Boris Johnson that it will not give in to his demand to renegotiate the withdrawal agreement.

Fear mongering is at an all-time high but the country will not simply grind to a halt. People will still eat, planes will still fly, and business will carry on regardless. Although bitcoin searches on Google are up globally at the moment, it seems to be garnering more than its usual share of attention in Britain.

BTC a Safe Haven

When concern over economic issues and negative price action in fiat starts to occur, people begin seeking out alternatives as a hedge. Bitcoin, being a global currency, is a good place to start and Britain is not the only country with these trends.

Countries sanctioned by the US are also keen on bitcoin as it can be used to circumvent them. Venezuela is one example as the state is now using BTC to pay aeronautical taxes. Russia, China, and Iran have also expressed more interest in cryptocurrencies as bitcoin slowly becomes the digital safety net for the planet.

Will Brexit be a boon for bitcoin in Britain? Add your thoughts below.


Images via Shutterstock

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Čvc 26

Bitcoin Price Struggling To Stay Above $10,000

Another day has brought another movement in BTC markets and yet again it has been downwards. As bitcoin price battles to stay above $10,000, analysts are looking at new levels of support.


Bitcoin Bart Patterns Back

Yesterday’s bounce from $9,500 topped out at around $10,180, hitting the 200-hour moving average twice. A few hours ago the ‘Bart pattern’ materialized again as BTC plunged back down. Three large red candles resulted in a drop to $9,660 according to Tradingview. Bitcoin price is currently trading just above that at 00

bitcoin

BTC price one hour chart – Tradingview.com

The Bart pattern was not lost on crypto traders on twitter as one pointed out just before the dip.

The previous dip was just above $9,500 so BTC needs to hold above its current level or face further losses which could send it back to $9,200 today. Most are still of the opinion that further losses are likely as the downtrend remains intact. Crypto trader ‘BenjaminBlunts’ mapped out a possible scenario for the next couple of months which shows a dip deep into the $7,000 price range.

“Due to the deep decline off yesterday’s highs this next wave up more likely still a corrective flat and this is the scenario i have in mind for BTC, trading more or less sideways until august, but ultimately break down again. This scenario can still set the stage for alts though”

On the daily chart, the bitcoin price appears to be consolidating still just below the 50 day moving average. A retest of this would take BTC back to $10,200 but a decline eyes the $9,200 level.

Altcoins in Lemming Mode

As usual, the altcoins have blindly followed bitcoin’s lead as most of them are dumping today as well. The $10 billion that flowed into crypto markets yesterday has all been lost today as total capitalization slides back down to $270 billion once again. Daily volume has also now dropped below $50 billion as things cool down in crypto land.

The digital lemmings are mostly in the red this Friday morning. Ethereum has dumped 3% in a fall back to $215, Bitcoin SV is down a similar amount. The only altcoin in the green in the top twenty is Bitcoin Cash but it has only eked out 2% reaching $312.

Nano is today’s big mover and the only altcoin gaining double digits in the top one hundred. There are a few of the lower cap altcoins dumping doubles but there is very little movement for the majority of them at the moment.

Will bitcoin price fall back to $9k this weekend? Add your thoughts below.

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Čvc 25

Bitcoin Price Analysis: Bulls Win Another Breakout

Bitcoin bulls have won yet another descending channel breakout, causing short-term price action to bounce off a key support around $9,500 and push price levels back to 5 digits. 


Bitcoin Monthly Chart
XBT1M

On the monthly XBT/USD, we can see a doji forming on the latest candle as the head sits in the middle of two large wicks. Typically, a Doji can go in any direction and is heavily dependant on the overall trend of the coin. In this case, BTC is still very much bullish so we are assuming an upside continuation will ensue over this time frame. Volume right now are still sustaining levels way above that seen throughout the bull run in 2017 and 2018.

POC (Point of Control) has yet to move up from $6,430 meaning the highest amount of volume or trades exchanged throughout this bullish phase on BTC still remains quite low. This will be a very bullish sign as it shows us high volume is exchanging hands at this level and represents a new critical support level. More information on this key support level can be found in my previous analysis.

Bitcoin Hourly Chart

XBT1H

On the 1 hour XBT/USD chart, we can see the second descending channel break clearly with price action now attempting to create a small bull flag just below the 200EMA. The volume appears to steady with no real jumps during this breakout. This suggests that Bitcoin bears are really struggling to build up momentum inside this time frame.

Maxx Momentum has crossed to the upside painting green in conjunction with this breakout after displaying red throughout the descending channel. POC still remains back at the top of the channel at $10,500 as mentioned in my previous analysis, which will likely as act as a magnet for price action thus making a sensible profit target on this move upwards.

The previous range local high was $9,400 before BTC went on to reach just shy of $14,000 meaning the previous breakout point has already been re-tested for BTC. When a breakout occurs many traders will wait for a pull-back and re-test of the breakout point before entering. BTC has already re-tested the previous breakout point and bounced quite significantly back up to $11,000. From this, we know that support around $9,400 is very strong and will require a lot of selling pressure to break.

Do you think BTC will hit POC at $10,500 over the coming days as a result of this most recent breakout? Please leave your thoughts in the comments below!


Images via Shutterstock, Tradingview

None of the information/ opinions in this article should be construed as financial advice.

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Čvc 22

Bitcoin Price To Move Higher After Neutral Weekly Close

As bitcoin price closes out another weekly candle, traders and analysts are scrambling to predict its next move. The longer BTC consolidates, the larger that move is likely to be, and it could be coming soon.


Bitcoin Price Consolidation Persists …

Yesterday’s retest of $11,000 was very short-lived. Bitcoin price fell back to record an intraday low of $10,330 which was tested a couple of times. BTC recovered to reach $10,600 where it has consolidated for the past 10 hours or so. Daily volume has also dropped back to $16 billion as ranges get tighter.

bitcoin

BTC price 1-hour chart – Tradingview.com

The dojis are coming more frequently which signifies indecision and a battle between bulls and bears with neither getting the upper hand. Trader and analyst Josh Rager also observed a contraction in the Bollinger bands on the four-hour chart which could spell increased volatility when the breakout comes.

“Weekly/daily close was neutral. Closed in the range between primary support/resistance levels. But volatility expected to happen this week, BBands starting to pinch on 4 hour. Hopefully we get some live action on the charts to start the week”

Usually, the longer bitcoin price consolidates for the larger its next move is. Rager is not alone with his prediction of more volatility this week as a fellow analyst, ‘Chonis Trading’, observed a similar thing adding:

“The Longer #bitcoin takes to consolidate the Bigger the next move becomes … $BTC is the same price it was exactly a month ago… the next break should happen quicker and larger than the last…”

Still on crypto twitter is ‘Dave the wave’ who has been eyeing the fractals and noting that something big is about to happen for BTC.

Industry observers are generally mixed with their predictions of the next direction. Many are predicting further declines following the retest of $11,000 and failure to break above it. This would lead to buying opportunities back in four figures. Bitcoin price has not spent a great deal of time below $10k over the past month which indicates there are a lot of buyers lurking there.

Conversely, the pressure from US lawmakers appears to have eased somewhat with the bulk of their anxiety being targeted at Libra and big tech becoming their own banks.

Elsewhere in crypto land things are pretty quiet today. Altcoins are largely unmoved from weekend prices and they are likely to stay that way until we get a big bitcoin breakout. Total crypto market capitalization is currently at $290 billion which is where it was this time last Monday.

Will bitcoin price break up or down in its next big move? Add your thoughts below.


Images via Shutterstock, Tradingview, Twitter: @Josh_Rager, @davthewave

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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 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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