Bitcoin has been caught within a persistent bout of sideways trading throughout the past few days, with the selling pressure seen…
Bitcoin has been caught within a persistent bout of sideways trading throughout the past few days, with the selling pressure seen above $19,000 allowing bears to spark multiple strong selloffs throughout the past couple of weeks.
These rejections have all resulted in the cryptocurrency forming a series of higher-lows, which is an incredibly bullish technical pattern that could indicate that serious upside is imminent if held over an extended period of time.
This technical strength has certainly struck a blow to bears, but the selling pressure between $19,500 and $20,000 is still significant and may continue hampering its growth in the days and weeks ahead.
The consolidation seen due to this recent battle between buyers and sellers may not last for too much longer.
One trader is now noting that the crypto is nearing the apex of a massive triangle formation that may give rise to it seeing some tremendous volatility in the near-term.
These patterns typically result in bull-favoring breakouts, which could mean the next push higher will be swift and violent.
Bitcoin Consolidates as Bulls Defend $19,000
At the time of writing, Bitcoin is trading down marginally at its current price of $19,160. This is around where it has been trading throughout the past few days.
$19,000 has been a pivotal level for BTC, as breaks above and below this level seem to be trend-defining events.
Where Bitcoin trends in the mid-term will likely depend on its continued reaction to $19,000, as a sustained bout of trading above or below this level could provide serious insights into its mid-term outlook.
The key downside support to watch exists at roughly $18,600, with its next resistance level sitting at $19,400.
Analyst Claims BTC is on the Brink of Seeing Massive Volatility
One analyst explained in a recent tweet that Bitcoin is on the brink of seeing some massive volatility in the days ahead.
He is pointing to a triangle formation that has been shaping up following the cryptocurrency’s recent decline to lows of $16,400.
“When uncertain about the direction, I always switch to linear $BTC chart to filter out the market noise. The price essence shows clear consolidation which is contracting in the form of a triangle. Nearing the apex, today I’d expect big breakout and big volatility. Set stops fam,” he said while pointing to the below chart.
XRP has been flashing some signs of weakness throughout the past few days and weeks, with the selling pressure seen around…
XRP has been flashing some signs of weakness throughout the past few days and weeks, with the selling pressure seen around the mid-$0.60 region proving to be too significant for the cryptocurrency to surmount.
Where it trends in the mid-term will depend largely on whether or not this level continues holding strong as resistance.
If it breaks above this level, then the crypto could soon see some massive momentum that creates another leg higher.
One trader spoke about XRP’s price action and market structure in a recent tweet, explaining that some serious warning signs seem to indicate downside could be imminent for the already embattled cryptocurrency.
This weakness comes despite the upcoming airdrop that has been widely looked upon as a bullish catalyst – a trend that may be emblematic of this recent rally being purely based on speculative trading activity.
There are a couple of technical levels that, if surmounted, could bolster its market structure and help lead it higher in the days and weeks ahead.
A failure to reclaim these levels would be dire and open the gates for serious downside.
XRP Struggles to Hold Above $0.60 as Selling Pressure Mounts
At the time of writing, XRP is trading up just under 6% at its current price of $0.58.
Although this marks a serious rebound from its overnight lows of $0.54, it is important to note that the cryptocurrency is still trading well-below its recent $0.90 highs.
The $0.60 level appears to be pivotal for the cryptocurrency, as breaks below it seem to tilt the balance into bears’ favor, whereas bouts of trading above it greatly favor bulls.
How it reacts to this level heading into the weekly close should provide insights into where it will trend in the weeks ahead.
Trader Claims the Token is in a Precarious Position
One trader explained in a recent tweet that XRP is currently in a precarious position, with the recent breakdown potentially spelling trouble for where it trends next.
He specifically pointed out that the break below its 200-day EMA on its 1-hour chart is particularly dire and may indicate its bullish market structure is about to degrade.
“Beginning to look like the worlds biggest shit coin again. 200 EMA on the 1 hour, lets see if we can hold it and get back in structure. If not rip XRP.”
The coming few days should shed some light on the long-term importance of the recent XRP rally, as any downtrend here could lead to a full erasure of its recent gains.
Featured image from Unsplash.
Charts from TradingView.
Even those who have been around the cryptocurrency space for some time are still in disbelief over how fast Bitcoin rose…
Even those who have been around the cryptocurrency space for some time are still in disbelief over how fast Bitcoin rose from $3,000 to setting a new all-time high in the same year.
But despite what the world sees as the biggest wave in FOMO in crypto yet, it isn’t reflected in the volume on Coinbase BTCUSD charts. What exactly does this mean, and is this a sign that interest isn’t quite here yet, or is an enormous breakout supported by volume just days away?
Bitcoin Trades Just Below All-Time High As Market Braces For Next Move
Bitcoin is trading at just under $20,000 for what feels like an eternity in crypto time. Because the cryptocurrency is notorious for its volatility and wild price swings, stability, especially just under all-time high, is eerie and confusing.
Nearly every crypto market participant expected Bitcoin to take out $20,000 and never turn back once it got there. And while FOMO is back in crypto in a major way, the top cryptocurrency has yet to take out the key level. But it also hasn’t corrected, either, despite nearly every technical indicator signaling frighteningly overheated conditions.
There are also fundamental buy signals triggering that have historically been incredibly profitable, the combination of bullish fundamentals but ultra-bearish short-term technicals has analysts mixed everywhere.
Some of the most iconic traders, including Peter Brandt and John Bollinger, have both recently warned of impending correction – a correction that still hasn’t arrived. There are few areas elsewhere analysts and investors can look to get a read on the market. And because volume is said to “precede price” our search began there.
Crypto Exchange Coinbase Volume Doesn’t Reflect Bull Run Breakout… Yet
“The constant buying on Coinbase the last 2 months has been relentless,” a tweet from Bitcoin expert Charles Edwards reads. Edwards created the Hash Ribbons signal mentioned above regarding its outstanding reputation for profitability.
“OG whales” were said to be putting up sell walls on the exchange hoping to stop any further advance, but the cryptocurrency got right through.
All this talk of buying would indicate a surge of trading volume on Coinbase, right? Wrong.
Trading volume on Coinbase has been abysmal despite "relentless" buying and soaring prices | Source: BTCUSD on TradingView.com
The timeframe with the longest stretch of green candles and the most overheated indicators, show nowhere near the level of buying taking place when Bitcoin was much cheaper – priced at below $5,000.
The sharp move on Black Thursday did get plenty of sellers to capitulate, but buyers more visibly took advantage of the discount on the first-ever cryptocurrency. The volume on that move is at least double compared to the recent rally.
Zooming out to the just the bear market and excluding most of 2020, when there’s a major trend change or breakout, it is accompanied by a sizable reading of trading volume. The 2019 rally had increasing volume at each peak, which helped propel Bitcoin to the yearly highs.
This simply doesn’t exist with the current rally, but the reasons why may not be as clear as the lack of breakout volume is. For one, institutions aren’t buying on Coinbase, and they could be having the most impact on price increases. Wealthy buyers get their BTC on OTC markets, as to not move the price as much when they make their massive buys.
There is also far less BTC these days on exchanges like Coinbase that can be traded or sold. So while the “buying” could have been “relentless” because there aren’t as many sellers, price is rising without the volume to support it.
Weak volume with the largest candle being red is a negative sign | Source: BTCUSD on TradingView.com
But that typically is a dangerous situation if the volume doesn’t soon arrive. And currently, the largest 3-day volume during the recent rally is red, suggesting that that might have been reversal and that sellers had taken control.
The opposite can be seen on Black Thursday, where after the initial spike down, buy volume was skyrocketing as people bought BTC as cheap as they could.
Declining or sub-par volume that doesn’t match the movement of price, can be a signal of a reversal. Is that is what is playing out right now, or has the entry of institutions simply clouded things so much that it is now difficult to judge the market based on traditional technicals like volume or indicators, which seem to continuously fail when charting the cryptocurrency?
Featured image from Deposit Photos, Charts from TradingView.com
Litecoin is the epitome of what investors describe as a “legacy altcoin” with little utility in the present crypto ecosystem, but…
Litecoin is the epitome of what investors describe as a “legacy altcoin” with little utility in the present crypto ecosystem, but still often sees large rises in value due to new entrants to the market buying it due to its established history within the crypto ecosystem.
Additionally, the addition of Litecoin to platforms like PayPal may also boost its adoption and utility, which may partially be the catalyst for its recent uptrend.
Over the past month, LTC had seen some intense gains, with buyers pushing its price from lows of under $50.00 to highs of nearly $100.00 before it met some serious resistance that slowed its ascent.
Despite it being overshadowed by Bitcoin and having limited development activity, it is still a popular asset for traders to use due to its high liquidity.
Many believe that the addition of it to PayPal’s suite of supported crypto assets will help usher in a rush of “no-coiner” money into the asset, which may be why its price has risen over the past few days and weeks.
One trader is now noting that the cryptocurrency is forming one of the largest bullish divergences he has ever seen while looking towards its Bitcoin trading pair.
Litecoin Consolidates as Crypto Market’s Momentum Falters
At the time of writing, Litecoin is trading down over 6% at its current price of $83.77. This marks a decline from recent highs of over $90.00, but it is important to note that it also marks a serious rally from its recent lows of $64.00.
The cryptocurrency’s recent volatility has come about due to an influx of derivatives trading activity from traders who are banking on fresh retail money being directed to “legacy” altcoins like LTC.
LTC Forms Massive Bullish Divergence, Claims Analyst
One analyst explained that Litecoin is poised to see a serious push higher in the near-term due to the formation of an incredibly bullish divergence seen while looking towards its Bitcoin trading pair.
He pointed to this in a recent tweet, noting that it is the “largest bullish divergence” he’s ever seen within the crypto market – a sign that massive upside could be right around the corner.
“LTC paired with BTC has the largest bullish divergence I’ve ever seen for crypto. Let’s go,” he said while pointing to the below chart.
As long as the legacy altcoins like XRP and Litecoin continue pushing higher, there’s a strong possibility that it will soon break $100 and see another leg up.
Featured image from Unsplash.
Charts from TradingView.
Bitcoin is clearly at a pivotal point in its current market cycle. But market cycles aren’t always obvious as to what…
Bitcoin is clearly at a pivotal point in its current market cycle. But market cycles aren’t always obvious as to what might occur, even if the when happens to become more clear with time.
In the leading cryptocurrency by market cap, Decembers are particularly notable, culminating in most of the asset’s tops and bottoms. With the all-important month now here, and Bitcoin at a potential inflection point something significant could be brewing.
Crypto Analyst Reveals Compelling Bitcoin Cycle Theory
In 2017, Bitcoin’s bull run and meteoric rise – as the mainstream media dubbed it – came to a climax in December of that year. December 2018 is when Bitcoin set its bear market bottom. In December 2019, the “post PlusToken low” was put in, according to analysis from crypto trader Philip Swift.
The cryptocurrency has primarily topped and bottomed during the December months, but one instance also kicked off the 2017 bull run and began the asset’s most recent parabolic phase.
Given the cyclical nature of Bitcoin, there’s a chance something equally important happens any moment now. But which direction is it, and does market timing based on cycles or key dates hold any credence?
Remembering The Legendary W.D. Gann And The Role Of Astrology And Geometry In Market Timing
The idea that markets are cyclical and can top or bottom at specific dates isn’t a new one. Legendary trader William Delbert Gann made a name for himself by combining geometry and astrology to time tops and bottoms in markets or when important inflection points might take place.
Notice the December tops and bottoms in the Wheat market match what Swift says above | Source: Wikipedia
Gann noticed that tops and bottoms take place often in December in the commodities market, especially during the astrological event, “Sun conjunct retrograde Mercury in Sagittarius,” according to his Wikipedia page.
His tools are used today, although aren’t very popular with the crypto crowd. But after putting his market timing technical analysis tools to the test, the results are quite shocking and line up with Swift’s cycle-based theories above. However, it still doesn’t help much with direction.
The Gann Box is one of many time-based technical analysis tools the trader left behind | Source: BTCUSD on TradingView.com
In the first tool we’re examining, each Fib time zone happens to take place at a major turning point. The first was at Bitcoin’s bottom, the second was right before the 2019 blow-off top.
The third at 0.5 takes place at the “PlusToken low” Swift points to as another December moment of importance. The 2019 top was not in December, to be clear.
The Gann Square is another. Note how the angles intersect important points in price action | Source: BTCUSD on TradingView.com
Yet another tool, the Gann Square, also clearly lines up with these key December dates. The geometrical support and resistance points all react with the asset’s intra-session price action.
Gann was also a “fan” of geometrical shapes, and other techniques he developed include the “Square of Nine, the Hexagon Chart, and the Circle of 360.” His fan-based tool completely nailed the recent breakout as pictured below. When the cryptocurrency made it through the final Gann fan resistance drawn from all-time high, we saw the breakout that took us back to the current levels.
The Gann fan perfectly predicted the timing of the retest, coinciding with key numbers from Gann | Source: BTCUSD on TradingView.com
Gann also paid close attention to the timing of cycles with a direct focus on numbers that appear to be based on ancient Babylonian mathematics, which used a sexagesimal number system. The number system is still the basis of time, with intervals of sixty seconds and sixty minutes. Night and day cycles are 12 hours each and each day is 24 hours – all divisible by three, and six.
The iconic trader specifically called attention to any timeframes with intervals of three, including the 3-minute, 15-minute, 3 hour, 6-hour, and 3-day charts, and he claimed to never trade in the direction of the trend on the third day.
On larger timeframes, Gann cared a great deal about the significance of 144 time periods. Could it really just be coincidental, that Bitcoin broke out of the Gann fan, and retested the “meme” downtrend line on exactly 144 weeks from all-time high? The chart above offers strong evidence to support the theory.
This Gann fan is a dangerous take on the Dow Jones at the end of 90-year supercycle | Source: BTCUSD on TradingView.com
Finally, Gann warned very specifically about economic supercycles, which take place every 90 years or so. Roughly 90 years ago, was the massive stock market crash of 1929 that brought with it The Great Depression. That recession officially ended in 1938. This would also mean that we’re beginning another supercycle now, with the beginning of the pandemic.
Fiat money became so worthless, that new coins were minted, depicting a Phoenix rising from flames. The same sort of coin and the mythical bird can be seen rising on the cover of The Economist in 1988, where the magazine predicts the coming of a new world currency will come by the year 2018.
The coin depicting the Phoenix from 1957 has the month of November (Nov) printed on it. The astrological sign Scorpio is assigned to those born between October 23, and November 21. Scorpio is the only astrological sign with more than one animal associated with it.
According to astrological lore, the Scorpio transitions throughout life to the Eagle, and finally, rises as the Phoenix. Interestingly, Bitcoin was revealed to the world via the whitepaper by Satoshi Nakamoto on October 31, 2008 – essentially making Bitcoin a Scorpio and eventually a Phoenix by birthright.
The information above proves nothing at all and could be construed as pure coincidence, but with so much of Gann’s time-based theories and tools matching up with Bitcoin so perfectly, and his analysis being based on little more than math (geometry) and time, could there possibly be more to it?
And because math (computer code) and time (the halving and block confirmations) are so crucial to the anatomy of the first-ever cryptocurrency, could there be some type of undeniable connection between the asset and astrology? Appropriately, only time will tell.
Featured image from Deposit Photos, Charts from TradingView.com
The investor network holds a huge expectation price of bitcoin in 2021, the best-known cryptocurrency in the world, is again fascinating because of the solid return it has achieved up to now in 2020. Industry analysts assume that the current rally progresses and also that investor exposure should continue to climb when and when they see some pullback.
A Citibank leaked report titled ‘Bitcoin: 21st-century gold’ said that by December 2021 price of bitcoin may have surpassed the $3,18,000 mark. This means a 19-times rise to about $17 from the present amount.
Why you should hold Bitcoin in 2021
Apart from many ups and downs, BTC is still a profitable investment from the past few years and the average growth rate is more than 100% per year. In every 4 years cycle, BTC exceeds its prior All-Time Highs (ATH), last time it happened in 2017 where we saw a tremendous amount of returns within a very short time.
Bitcoin serves the purpose to exchange money over the internet and is controlled by an openly regulated and decentralized network, offering an alternative to the fiat money controlled by central banks. There has been considerable discussion on the way Bitcoin is valued and we are going to explore the prices of the blockchain for a more widespread embrace in 2021.
What to buy in 2021: Gold or Bitcoin?
Experts say that price ofBitcoin in 2021 could replace gold. Blackrock is the world’s leading manager of assets, and as of September, it held over $7.4 trillion in assets. He is now Blackrock’s Head of the Multi-Asset Strategy Division Global Allocation Investment Unit.
When asked about the price of bitcoin and gold and whether he is a bitcoin bull, Rieder said: Rieder said:
“But do I think it is a durable mechanism that could replace gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around.”
Thomas Lee, Head of Research at Fundstrat Global Advisors, commented that bitcoin is “killing it this year — it’s just crushing all other hedges and asset classes this year, but in 2021 I think bitcoin could be the year of the fireworks … the best is probably yet to come.”
Where do we expect Price of Bitcoin will be heading in 2021?
Ignoring the short-term downside push of the BTC, it will most likely hit the 10000$-9000$ next (in the medium-term perspective), That will confirm the bullish trend by making the higher highs and higher lows and that will be the beginning of the next bull run. Once that resistance will turn into the support price ofBitcoin will push towards the 30000$ region in the next 2 years of time frame.
(Refer to the image for a clear understanding of the bigger picture scenario).
Refer to the image for a clear understanding of the bigger picture scenario
When you consider how much more capital is going to be flooded into this market. It’s not a long shot by any means to see how price can be quadrupled and beyond ATM’s have been taken out. This means even if you got entries at the yearly highs, and you have a dollar-cost average for your investment for 2–3 years.
“You will still get profits from your investment, as history always repeats itself and the market always rise to the upside targets”
With a simple look at charts and the historical pattern of the cryptocurrency market, you can paint a bigger picture than any forecaster can do. You have the proven statistics of history carved in stone on your side, trust the process, it comes with the journey of adapting technology ahead of the rest of the world.
Forecast of Bitcoin in 2021
The virtual currency is more than five times as big in a year for Bitcoin holders, who include leading hedge fund and money managers. It’s a gamble that has drawn eyes to the investors who assume that the unpredictable blockchain is not a store of wealth like gold, but a risky commodity.
After January, price ofbitcoin has risen by 160% boosted by high institutional demand and scarcity, as it is being bought on behalf of payment firms such as Square and Paypal. Bitcoin has reached just under $20,000 in December 2017 on its all-time record. It first came to zero in 2011 and last was $18,415 for trading.
It’s no longer a year’s time for moving from $18,000 to $100,000, says Brian Estes, the chief trader at Off the Chain Capital Hedge Fund.
“I have seen bitcoin go up 10X, 20X, 30X in a year So going up 5X is not a big deal.”
This forecast is based on a model that incorporates a stock-to-flux ratio that calculates product scarcity such as gold, between $100,000 and $288,000 by the end of 2021. He said that model has a 94% correlation to bitcoin’s price.
Tom Fitzpatrick from Citi Technical Analyst said last week that price of bitcoin could rise by the end of the next year to $318 000, citing its limited supply, ease of cross-border movement, and opaque ownership.
Neo predicts that by end of 2021, price of Bitcoin will reach $60,000-$80,000. Tempus Inc. currency trader Juan Perez had been unimpressed with the elevated forecasts even shocked, saying that the next year’s bitcoin jackpot at $100,000 would be a bet on the collapse of the international economy.
Some of the perks of Bitcoin are that they are diverse portfolios and that popularity and availability are anticipated to develop. Persons may see that diversification will be attributed to investment portfolios, including Bitcoin or Altcoin assets. In the case of a big market slump or other turbulent activity in the future, it will help secure these savings accounts.
High fees, extreme uncertainty, and restricted multinational market usage are some of the major drawbacks. Owing to its unpredictable price of bitcoin volatility, bitcoin could not be an ideal retirement fund. However, some financial services providers also offer the alternative of investing in the cryptocurrency through autonomous pension accounts (IRAs).
