Bitcoin Crypto News

Bitcoin Rejects Downside At $29k, Here’s Why This Is Good

Today’s Bitcoin price analysis is positive, as a dip to $29,000 was met with solid support and rejection, indicating that additional downside is unlikely. As a result, BTC/USD is expected to rise further in the next days, most likely above the $31,000 resistance level. Naturally, the psychological price of $30,000 for Bitcoin implies a solid purchase zone. We’ll look at why Bitcoin’s recent consolidation around $30,000 is a promising sign of future price increases. Bitcoin Fall 57% From ATH Bitcoin prices have fallen from a high of $69,600 to a current level of $29,350. The entire cryptocurrency market was destroyed by this 57 percent price decrease. As a result of the decreasing prices, a snowball effect began to occur, causing other crypto projects to be hit and sink even more. The price range of $30,000 for Bitcoin is critical. Many large corporations bought Bitcoins at that price. Furthermore, as shown in Figure 2, Bitcoin prices historically consolidated around those precise positions before beginning an advance. BTC/USD 1-day chart showing the consolidation area. Source: TradingView For more than a week, bitcoin has been trading sideways, with the $31,000 mark acting as solid resistance. Meanwhile, significant support has been established at $29,000, signaling a clear consolidation region that must be overcome before the market can continue to develop. The previous high was set at the same level as the previous low, signaling market hesitation. As a result, the recent $29,000 test could lead to another retest of the resistance. Related Reading | Eight Consecutive Red Closes: Is Bitcoin Headed For A Recovery? Will Consolidation occur? If BTC prices happen to drop below $28,000 again, the next support area would be around $20,000. However, it is more likely that prices will increase from this Bitcoin price consolidation phase. The first target is around $35,000, or a 17% increase in prices. After that, prices should target the next psychological price of $40,000. From there, we might see a slight adjustment lower, but in the long term, prices should break higher. This would mark the official start of the uptrend. In order for bitcoin’s price to establish a foothold at the bottom in the short term, according to Josh Olszewicz, head of research at investment management Valkyrie, volatility must reduce. “We can look at things like the 200-week moving average, which is around $22,000. We can look at realized price, which is the average price of coins that have moved on-chain, which is around $23,800,” Olszewicz said on CoinDesk TV’s “First Mover” program. “This [movement to hit bottom] will probably take at least all of Q3, perhaps Q4 as well, if it were to happen this year.” Other variables, like as the US Federal Reserve boosting interest rates, are also influencing bitcoin’s market performance, according to Olszewicz. He speculated that institutional investors may be in the forefront of the downturn. The average size of on-chain transactions, according to Olszewicz, is in the tens of thousands of BTC. Nonetheless, according to Olszewicz, ordinary traders continue to influence market movement more than institutional investors. Those learning about cryptocurrencies are now jumping in during this bear market to “test the waters” and “see if they can survive,” according to him. Suggested Reading | Ripple (XRP) Plunges To $0.43 With Bears In Full Swing Featured image from iStock photo, chart from TradingView.com

Bitcoin Crypto News Ethereum

Investors May Expect Downside For Bitcoin And Ethereum Market For The Next 3 Months

The crypto markets have accepted the depegging of UST and the subsequent downward spiral of LUNA, both of which impacted the price of Bitcoin and the entire digital asset spectrum. According to a recent report by the Glassnode team, the Bitcoin market has been trading lower for eight weeks, making it the ‘longest continuous series of red weekly candles in history.’ Even Ethereum, the most popular altcoin, painted a similar picture. Bearish fluctuations damage returns and profit margins directly or indirectly. To make matters worse, derivative markets forecast shows more declines in the coming three to six months. Derivative Markets Hint At More Pain For Bitcoin According to derivative markets, the prognosis for the next three to six months remains fearful of further fall. On-chain, the report stated that blockspace demand for Ethereum and Bitcoin has dropped to multi-year lows, and the rate of ETH burning via EIP1559 has reached an all-time low. Glassnode calculated that the demand side will continue to face headwinds due to poor price performance, uncertain derivatives pricing, and extremely low demand for block-space on both Bitcoin and Ethereum. The report explains: Looking on-chain, we can see that both Ethereum and Bitcoin blockspace demand has fallen to multi-year lows, and the rate of burning of ETH via EIP1559 is now at an all-time-low. Coupling poor price performance, fearful derivatives pricing, and exceedingly lacklustre demand for block-space on both Bitcoin and Ethereum, we can deduce that the demand side is likely to continue seeing headwinds. Both Bitcoin and Ethereum’s price performance over the last 12 months has been disappointing. Long-term CAGR rates for Bitcoin and Ethereum have been impacted as a result of this. Source: Glassnode BTC, the largest cryptocurrency, moved in a roughly 4-year bull/bear cycle, which was frequently accompanied with halving events. When looking at long-term returns, the CAGR has dropped from almost 200 percent in 2015 to less than 50 percent as of this writing. Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate Furthermore, Bitcoin had a negative 30% return over the short term, implying that it corrected by 1% every day on average. This negative return for Bitcoin is very similar to prior bear market cycles. Source: Glassnode When it comes to ETH, the altcoin performed far worse than BTC. Ethereum’s monthly return profile revealed a depressing picture of -34.9 percent. Ethereum likewise appears to be seeing diminishing rewards in the long run. Furthermore, during the previous 12 months, the 4-year CAGR for both assets has dropped from 100% to only 36% for BTC. Also, ETH is up 28 percent per year, emphasizing the severity of this bear. To make matters worse, the derivative market warned of future market declines. Near-term uncertainty and downside risk continue to be priced into options markets, particularly over the next three to six months. In reality, during the market sell-off last week, implied volatility increased significantly. Total crypto market cap stands at $1.2 Trillion. Source: TradingView The Glassnode analysis concluded by stating that the present bear market has taken its toll on crypto traders and investors. Furthermore, the Glassnode team emphasized that downturn markets frequently worsen before improving. However, ‘bear markets do have a tendency of ending’ and ‘bear markets author the bull that follows,’ so there is some light at the end of the tunnel. Related Reading | TA: Bitcoin Price Stuck In Key Range, Why Dips Might Be Limited Featured image from iStockPhoto, Charts from Glassnode, and TradingView.com

Crypto News

Avalanche (AVAX) Shows Optimism But Is This A Price Reversal?

Avalanche (AVAX) has displayed recovery on its chart. Over the last 24 hours, the altcoin brought home 4.8% gain. Although, there has been a considerable daily gain, AVAX is trading underneath its long-standing price floor. It is difficult for investors to look at just the daily gain as a good enough reason to buy the coin at the moment. Technical for the coin hasn’t suggested strong bullishness which might suggest that AVAX could be a good buy at the time of writing. Avalanche (AVAX) has lost 8% of its market value in the last week. This forced many investors to liquidate the asset and leave. Since, AVAX broke below its long term support area, this could act as an important red flag for the investors. The next solid area of support for AVAX was at $20. The coin traded around the current price level previously in the month of August, a year ago. Avalanche Price Analysis: One Day Chart Avalanche (AVAX) was exchanging hands at $31 at the time of writing. The altcoin has been laterally trading at that price mark for nearly a week now. It revisited this price mark last year, however, back then the coin was on an uptrend. Immediate resistance for the coin stood at $40 as established previously. A fall below the current price level could send AVAX near the $20 support mark. Failing to settle near the $20 mark could bring AVAX anywhere between the $12 and $9 support level. Technical Analysis The altcoin continues to depict weakness on its chart. The technical outlook seems bearish because buyers are nowhere to be seen in the market. As the coin revisited the August, last year’s price level, AVAX remained under the grasps of the sellers in the market. According to the Relative Strength Index, the indicator was bordering the oversold mark. Until and unless, RSI manages to move above the half-line, it is too early to call this price action a reversal. Going by the Directional Movement Index that reads the price direction, bears are in control. The -DI line was above the +DI mark signifying bearishness. The Average Directional Index line (red) was near the 50-mark, this reading meant that price action was strong with less signs of a reversal. Suggested Reading | Avalanche Crumbles More Than 16% As Crypto Landslide Continues On the one day chart, AVAX’s technical pointed towards a possible change in price direction at the time of writing. Moving Average Convergence Diverge aka MACD, displayed a green signal bar above the half-line. A green signal bar above the half-line might mean a buy signal, if continued buy signals are witnessed it may mean a change in price momentum. Parabolic SAR also depicted a dot beneath the price candles, this means a change in price direction. If more dots are seen beneath the candlesticks over the upcoming trading sessions then AVAX might stage a recovery on its chart. Suggested Reading | Cardano (ADA) Grapples At $0.524; Bullish Trajectory Coming

Crypto News

Polkadot (DOT) Trades Beneath $11; How Soon Will It Target $14?

Polkadot (DOT) has held itself for sometime at the current price level. The consistent downslide of major market movers have pushed many altcoins near their immediate support and below their nearest resistance levels. Recent market conditions have been quite harsh for investors. The returns have been questionable. Polkadot (DOT) has witnessed a sharp fall in buying strength owing to the same bearish condition of the market. The coin has been in the limelight in the recent times due to the latest development. These developments are related to interoperability and features of multi-chain which was announced in the middle of this month. These activities have helped buyers to enter the market. Selling pressure however, continue to outpower buying pressure in the market. Polkadot now has an ecosystem which is consistently striving to bring new projects through para-chain auctions. It is still uncertain if over the upcoming trading sessions that coin can maintain its price action and touch its immediate resistance mark. Polkadot Price Analysis: One Day Chart The altcoin was priced at $10 at the time of writing and after several rejections from the $11 level. Nearest support level for the altcoin stood at $8 and a fall beneath that could land DOT near $6.26. Over the last 48 hours, DOT broke below its 10 month long support line. In the past 24 hours, the coin tried to move northwards but the bulls have tired out. The lack of buyers have caused the bullish action to fizzle out. Trading volume was seen in green which is a sign of positive price action, however, another session dominated by sellers could change that. Technical Analysis As mentioned above, Polkadot (DOT) has undergone quite a bit of developments recently and that could have helped the investors gain confidence. On the Relative Strength Index, the indicator stood below the half-line but noted an uptick. This uptick signified buyers re-entering however, lacklustre price action caused buyers to remain wary. In accordance to the same, DOT remained below the 20-SMA which is considered bearish. The sellers were still in charge of driving the price momentum according to the aforementioned reading. A slight push from the bears could help DOT rise above the 20-SMA which could then make the price reversal steady. Related Reading | Polkadot Displayed Bearish Engulfing Candlestick; Suggests Further Downtrend Polkadot might target $14 if the current price action picks up a bit of momentum. Moving Average Convergence Divergence indicates price momentum. MACD flashed green histograms just above the half-line and that refers to a buy signal. If buyers act on it then price of the altcoin could witness some relief. Bollinger Bands depict price volatility of the coin, a squeeze means chances of price fluctuations. At press time though, Bollinger Bands flashed nearly parallel movement indicating a stability in DOT’s price movement.   Related Reading | Nox Bitcoin To Refund UST At $1 To Their Customers

Altcoins Analysis Bitcoin Blockchain

Bitcoin Falls Under The Jurisdiction Of The CFTC – Asserts SEC’s Gensler

Why the CFTC suing Coinbase is a bullish blessing in disguise for Bitcoin

On Wednesday, Gary Gensler suggested that Bitcoin is a commodity token that would fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Testifying before a subcommittee of the U.S. House Appropriations Committee, the Securities and Services Commission (SEC) chair echoed his earlier assertions that Bitcoin and other cryptocurrencies appropriately fell under the securities […]

Crypto News Ethereum

Ethereum Could Tank Further; Here’s What The Charts Say

The bear market has been quite harsh to all major altcoins including Ethereum. Over the past 24 hours ago, the coin dipped by 4%. In the last week however, Ethereum tried to stage a recovery. The bears continued to drag prices down despite that. Buyers of Ethereum have tried to remain calm throughout most of the downswing. The consistent push by the bears have caused the altcoin to experience less to almost no recovery. The technical of the coin  also pointed towards further fall in price before Ethereum starts to rise on the chart again. In the recent developmental front, the altcoin has announced for its possible merge to happen in the month of August this year. It is to be seen if the altcoin’s price reacts positively to this news. A likeliness of a trend reversal cannot be ruled out as the chart below depicts it. Ethereum Price Analysis: One Day Chart Ethereum was exchanging hands at $1900 at the time of writing. Continued fall below the current price level would cause the coin to trade at $1700. If buyers continue to remain scanty the coin could note a further 30% downfall and trade near $1200. On the flipside the coin can trade above the $2000 mark slightly and then attempt to trade above the $2200 mark. The volume of Ethereum traded was still seen in red because bearish pressure had not declined in the market. Technical Analysis A chance of a possible downswing cannot be ruled out because the one day chart depicted at death cross. A death cross occurs when the short term moving average is below the long term moving average. On the SMA, 20-SMA was seen below the 50-SMA indicating weakness of ETH’s price in the market. ETH’s price was below the 20-SMA line because sellers were driving the price momentum in the market. The Relative Strength Index was also weak in accordance with other techincals. RSI was below the zero-line, just above the 20-mark. This reading meant sellers preceded the number of buyers heavily at the time of writing. Moving Average Convergence Divergence depicts the price momentum of the market. MACD flashed red histograms beneath the zero-line which indicated a continued bearish price action for the coin. Awesome Oscillator also demonstrated green histograms below the half-line, in accordance with the MACD. AO flashing histograms below the half-line indicated a sell signal for Ethereum. Related Reading | Exchange Inflows Rock Bitcoin, Ethereum As Market Struggles To Recover Possibility Of A Price Reversal? Ethereum formed a falling wedge pattern on the one day chart. A falling wedge pattern in associated with a change in current price action or a trend reversal. At the moment Ethereum was on a bearish price momentum. As falling wedge pattern was formed chance of the coin rebounding cannot be ignored. In case of a northbound movement, first resistance was at $2093 and then at $2200 respectively. For the bearish stance to be invalidated, Ethereum needs to trade above the $2900 mark. Related Reading | Ethereum Prepares For Ropsten Testnet Merge As Token Struggles To Hold $2k Support Featured image from UnSplash, Charts from TradingView.com