Bitcoin Crypto News

This Expanding Triangle Pattern Could Be The Last Hope For Bitcoin Bulls

Bitcoin broke through support and plunged to the lowest prices seen since 2020. However, despite all the fear the drop has caused, it could be the last low before the top cryptocurrency continues its bull run. Here is why an extremely rare Elliott Wave expanding triangle pattern could be the last hope Bitcoin bulls have for new highs before a bear market. Ralph Nelson Elliott And His Theory On How Markets Move Ask most crypto investors and they would probably agree: we are in a bear market. However, based on the guidelines of Elliott Wave Theory, the last year and a half of mostly sideways could be part of one powerful, confusing, and rare corrective pattern. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up Elliott Wave Principle was first discovered by Ralph Nelson Elliott in the 1930s. The theory believes all markets move in the direction of the primary trend in the same five-wave pattern. Odd-numbered waves move up with the primary trend as well, while even-numbered waves are corrective in nature that move against the trend. Is Bitcoin trading in an expanding triangle? | Source: BTCUSD on TradingView.com In the chart above, BTCUSD could potentially be trading in an expanding triangle. In Elliott Wave Theory, triangles of any kind only appear immediately preceding the final move of a sequence. During the bear market, a triangle appeared in place of the B wave before breaking down to the bear market bottom. Identifying A Bullish Expanding Triangle Pattern Triangles can contract, expand, descend, ascend, and even take on some “irregular” shapes. The expanding triangle pictured above and below should in theory only occur before the final wave five impulse up. If that’s the case, the bull run could continue once the bottom of the E wave is put in. Each subwave is a Zig-zag similar to wave two  | Source: BTCUSD on TradingView.com An expanding triangle is characterized as having five waves that sub-divide into ABCDE corrections. Waves A, C, and E are against the primary trend, while B and D waves are with the primary trend. Each sub-wave further sub-divides into three-wave patterns called a Zig-zag. Zig-zag patterns are sharper, and more commonly appear in wave two corrections. The fact that an expanding triangle has five of these brutal corrections in two different directions makes it especially confusing and frustrating. Expanding triangles only form under the most unusual market conditions. Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season Extreme uncertainty drives expansive volatility in both directions. Both sides of the trade are repeatedly stopped out of trades, adding to frustration. By the end of the pattern, order books are thin and easily overpowered. Decidedly bearish sentiment squeezes prices up quickly causing an upward breakout of the pattern and continuation of the bull run. The chase and FOMO creates the conditions necessary for wave five. Why Bitcoin Could Still Have Wave Five Ahead The only problem is that there is no telling if this is the correct pattern, or if Bitcoin is in (or possibly just completed) a wave four according to Elliott Wave Theory. Knowing that triangles only appear before the final move of a sequence helps improve the changes of this expanding triangle being valid. However, it is more important to understand the characteristics of each wave. Corrective waves result in ABC or ABCDE corrections (along with some more complex corrections) that move against the primary trend. Between corrections is an impulse wave up, in a five-wave stair-stepping pattern. After the bear market bottom, a new trend emerges starting with wave one. Wave two is often a sharp, Zig-zag style correction that retraces most of wave one. A bear market will move below the zero line on the MACD  | Source: BTCUSD on TradingView.com The lack of a new low creates the confidence for more market participants to join, making wave three the most powerful and extended of all. Wave four typically moves sideways and lacks the same severity of the wave two correction. Elliott said that wave four represents hesitancy in the market before finishing the trend. Both wave two and wave four tend to bring the MACD back down to the zero line before reversing higher – a setup clearly depicted above. Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015 When the hesitancy ends, wave five typically matches the length and magnitude of wave one. But after such a long and nasty wave four correction, any wave five has the potential to extend similar to wave three. If this were the case, the expanding triangle pattern created the perfect shakeout of both sides of the market. Here is a 🧵 on my full Elliott Wave analysis on #Bitcoin and why I don’t believe there is a bear market – and why I expect the last leg up any day now. — Tony "The Bull" Spilotro (@tonyspilotroBTC) May 15, 2022 Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin Crypto News

Bitcoin Price Plummets To Lowest Point In 2022, Will $33,000 Hold?

Bitcoin price had a treacherous weekend, capping off what has been nearly a 20% loss since the Fed meeting last week. The selloff has now taken the top cryptocurrency by market cap to the lowest point all year, setting a significant lower low for the first time in 2022. With BTCUSD at $33,000 per coin, will higher timeframe monthly support hold? Bitcoin Price Sets 2022 Lower Low: Where Is The Bottom? Bitcoin price is down 32% from April 2022 highs, and has shed 50% from its 2021 peak. The last year plus has been a rollercoaster of a ride for crypto investors, setting not one, but two separate higher highs above $60,000. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up Since the November EFT-driven double-top, the continued downtrend has taken BTCUSD to a lower low in 2022 and puts the 2021 low set around $29,800 at risk. Bitcoin has touched the lowest price yet in all of 2022. | Source: BTCUSD on TradingView.com How Deep Does This Go? Will Monthly Support At $33,000 Hold? Lower lows and lower highs are a sign of a confirmed downtrend on timeframes between daily and weekly. Trends can differ on multiple timeframes, so not all hope is lost. Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet Currently, the bull market structure on monthly timeframes remains intact. If BTCUSD can stay above the monthly resistance block, a double bottom could form and put in a higher low. Monthly support is now being retested and must hold or a larger plunge still waits. | Source: BTCUSD on TradingView.com Bitcoin has taken a beating over the course of the last year due to a tight correlation with tech stocks, soaring inflation, and rising Fed interest rates. The Crypto Fear & Greed Index has reached extreme fear and sentiment is the most bearish in recent memory. Although the outlook is bleak, some of the most well-known and successful investors ever advocate buying when others are in fear. Is now that time? Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin Crypto News

Bitcoin Short-Term Holders Were Behind The Selloff To Below $36k

On-chain data shows Bitcoin short-term holders seem to have been behind the latest selloff that has taken the price of the crypto below $36k. Bitcoin Investors Holding Coins Aged Between 1 Day And 6 Months Sold Big Yesterday As pointed out by an analyst in a CryptoQuant post, short-term holders seem to have sold the heaviest during the recent selloff. The relevant indicator here is the “exchange inflow,” which measures the total amount of coins moving into exchange wallets. A modification of this metric is the “exchange inflow spent output age bands.” it tells us how much the different Bitcoin holder groups are contributing to the inflow. The various groups are divided based on how many days the investors held their coins before transferring them to the exchange. The 1-day to 6-month coin age group is generally considered the “short-term holders” (STH). This cohort is usually the likeliest to sell their coins. All investors holding their Bitcoin for longer periods of time are the “long-term holders” (LTH). Now, here is a chart that shows the trend in the below 6-month and between 6 to 18-month age group inflows over the last few months: Looks like STH inflows spiked up recently | Source: CryptoQuant As you can see in the above graph, the 1-day to 6-month coin age group sent a large amount of coins just yesterday. The inflow spike amounted to more than 60k coins being transferred by this group. Investors usually send their Bitcoin to exchanges for selling purposes, hence these coins took part in the selloff that has now taken the price below $36k. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up The 6-month to 18-month group, on the other hand, doesn’t seem to have moved too many coins over the past day. The older Bitcoin LTH groups have also not shown much activity recently. The below chart shows the trend in their inflows. The 1.5-year to 3-year cohort only looks to have sold around 500 BTC yesterday | Source: CryptoQuant From these trends, it seems like the only investors that took part in the selling yesterday were the short-term holders, who are generally the more fickle ones. The long-term holders still look to be holding strong. Related Reading | Bitcoin Long Squeeze Incoming? Funding Rates Surge Up BTC Price At the time of writing, Bitcoin’s price floats around $35.8k, down 8% in the last seven days. Over the past month, the crypto has lost 21% in value. The below chart shows the trend in the price of the coin over the last five days. The price of Bitcoin seems to have plummeted down over the past day | Source: BTCUSD on TradingView Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

Bitcoin Crypto News Ethereum

Bitcoin Tumbles Below $36K, Altcoins In Red Too

The crypto market has turned red even after the latest FOMC meeting. Bitcoin inches towards the $35,511 mark, and altcoins are getting a beating too. Bitcoin responded to the Federal Reserve’s 50 basis-point interest rate hike by dropping more than 10% in one day, its most significant decline in two months. Related Reading | Cardano Prepares For Major Update, Will It Be Enough To Push Bears Back? Most of the crypto market was up early today, with bitcoin hitting $40,000 after yesterday’s Federal Reserve meeting. Other cryptocurrencies that performed well in the early hours are Cardano, Solana, Polkadot, and Avalanche. The afternoon market dived, and all cryptocurrencies, including Bitcoin, recorded a significant decline. BTC fell 10%, while altcoins also saw a considerable fall.  The second-largest cryptocurrency Ethereum fell by 7.8%; other altcoins also had a major decline. For example, DOGE had dropped 5.4% in the last 24 hours while SAND was down 11.8%. As the cryptocurrency landscape was bearish last week following a rejection at $40,000, it quickly returned below that level and kept losing value. This resulted in an almost two-month low of under $35,511 per coin. Yesterday, it was reported that the asset failed to stay above $39,000 and eventually fell below $38,000 again. Bitcoin was trading at around $38,500 before the FOMC meeting. The Fed Chair Jerome Powell said the institution would raise the interest rates by 50 basis points (instead of the expected 75).  This news caused the stock market to go up. Bitcoin also jumped to an intraday high of $40,000. As per Jarvis Labs: (…) the fair price scanner started showcasing potential local bottoming after alerts last night. However, they predict FOMC/trad-fi is more likely to play along for a market relief current week. Any slight dovishness sign and we might see the follow-up. And if not, then further crab or a drop hard. Volatility could go either way. U.S Stock Market Affecting Bitcoin Price Unfortunately, the stock market could not hold the spike and started a downtrend. Bitcoin also followed the US stock rally and lost more than 10% of its value. This brings its total market cap above $692.6 billion. Cryptocurrencies are being affected by the same trend as stocks. Investors seem to be selling off their stocks, causing a “risk-off” trade. This has caused the market for cryptocurrencies to go down sharply. Despite the several positive news like a DDoS attack against a cryptocurrency busted, Congress is considering allowing companies to include cryptocurrencies in their 401(k) plans; the falling stock market is pulling cryptocurrency values down with it. In addition, the volatility of tokens means that when the stock market goes down, the losses are generally more severe in the crypto market. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up Cryptocurrencies are constantly changing. Thursday’s changes seem regular. People who invest in cryptocurrencies might understand that the value of these investments can go up and down drastically. However, as things stand, what has changed in the last six months is that stock market values have started affecting cryptocurrency values. Featured image from Pixabay and the chart from Tradingview.com

Bitcoin Crypto News

Bitcoin Broke Above The Multi-Week Resistance; What’s Next

Bitcoin recovered on its chart over the last 24 hours as the king coin surged by 2%. Prices of the coin saw some respite after visiting the $37,000 price level. As broader markets started to recover Bitcoin’s price action moved on a north-bound journey. Currently, Bitcoin’s prices were trading in a tightly consolidated region because the coin did not manage to go past the $39,800 price mark. It is too early to say if the bulls have resurfaced completely in the market. If demand doesn’t recover considerably, then the digital asset could fall back to the $38,000 price level,  which is acting as a support level for the coin. It is however a positive sign because Bitcoin has managed to break past its multi-week resistance line. If the bulls continue to exert pressure then Bitcoin over the upcoming trading sessions could manage to revisit the $40,000 price mark. Bitcoin buyers have to continue staying in the market for the coin to successfully trade on the upside. Bitcoin Price Analysis: Four-Hour Chart Bitcoin was priced at $39,100 at the time of writing. After breaking past the multi-week resistance the coin again fell from the $39,800 price level. This indicated a brief correction because the coin’s prices plunged at the time of writing. Immediate resistance for the coin stood at $40,000. A break above that price mark could push Bitcoin to run to the $44,000 price level. On the flip side, the support level rested firmly at $37,900 and a fall beneath which, Bitcoin would trade near $37,000. The trading volume of the coin is yet to pick up momentum because the last trading bar was seen in red indicating negative price action. Technical Analysis The break above the multiweek resistance caused the buying strength to fall considerably. After rising on the chart considerably, the coin plunged at press time. Gains weren’t substantial and that had pushed the coin down further. The Relative Strength Index was seen closing near the 50-line which signified a fall in buying strength because buyers were exiting the market. The fear index of the market stood at 27, which points toward considerable fear. Bollinger Bands depict volatility in the market and the indicator expanded at the time of writing. An expansion of the bands indicates an anticipated increase in price volatility over the upcoming trading sessions. Related Reading | Bitcoin Long Squeeze Incoming? Funding Rates Surge Up MACD is responsible for depicting market momentum and it indicates bullish momentum for the coin. At press time however, the histograms were seen fading and that signalled at continued bearish price action for the coin. Chaikin Money Flow was positive about the capital inflows because the indicator was above the half-line. The indicator however, noted a small downtick and that could possibly mean an increase in capital outflows reaffirming continued bearishness in the market. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up Featured image from UnSplash, chart from TradingView.com

Bitcoin Crypto News

One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up

Bitcoin price bounced to the tune of 5% following yesterday’s Federal Reserve meeting. However, the move has almost fully retraced. What’s interesting about the situation, is that traders at one particular platform could have seen this coming a lot more clearly, while others might have suffered a fake out. Here is a closer look at a comparison between BTCUSD spot index price charts and BTC CME Futures that puts a spotlight on the strange discrepancy. We also shed some light on how to possibly take advantage when these instances occur. Why You Can’t Ever Sleep On Crypto Markets The crypto market never sleeps. It trades night and day, 24/7 days a week. Even stock market futures take a break for short periods. But when it comes to CME Group’s BTC futures contracts, it more closely follows the stock market’s trading hours. CME takes a break from Friday to Sunday evening. If Bitcoin price moves substantially during the time the trading desk is offline, it will leave a gap on its chart that regularly becomes a target that gets “filled” in the following days. Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015 Because certain spot market trading days are missing from the CME BTC futures chart, certain technical indicators can produce minor deviations. More often than not, these minor discrepancies are early signs that a fake out is coming. Need proof? In the chart below, we’ve compared the BTCUSD spot price index, BTC CME futures, and SPX futures. Bitcoin’s spot index produced a bullish crossover of the LMACD yesterday, while the CME chart remained bearish. Interestingly, the CME chart more closely mimics the popular US stock market index. BTC CME futures performs more on par with the stock market | Source: BTCUSD on TradingView.com How To Potentially Predict Bitcoin Fake Outs Using Spot Vs CME Comparison The LMACD – the logarithmic version of the Moving Average Convergence Divergence indicator – is considered a lagging indicator. For this reason, bullish or bearish crossovers are typically considered reliable signals to take or close a position. It isn’t clear if the discrepancy above happened naturally due to the missing trading days from the chart, or if something else was at play. The crossover appears to have been used as a bull trap, clearing out any last minute longs. Momentum on the daily is currently bearish again, so there is risk of continued downside until it turns up again. Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet Traders need not ditch the indicator altogether, but instead can use such discrepancies between the two indicator’s performance to try and predict when fake outs, stop runs, or other nasty moves will occur. The last time the LMACD produced a false signal on spot exchanges, yet not on the CME BTC chart, was the exact peak in November 2021. Is there a chance this latest fake out is a sign the bottom is in, or is it merely suggesting more downside ahead? The missing bullish crossover called the top in November 2021 | Source: BTCUSD on TradingView.com Bitcoin bulls must push momentum back in their favor on daily timeframes, and follow through with enough strength to force higher timeframes to follow. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Crypto News

Cardano To Increase Block Size By 10%, Can ADA Benefit From This Network Improvement?

Via an official post, Cardano developer Input Output Global (IOG) confirmed the approval and implementation of a proposal to increase the network’s block size. Currently standing at 80 kilobytes (KB), the mainnet will see a 10% increase to 88 KB. Related Reading | Cardano (ADA) Is One Of The Worst Performing Crypto In Terms Of Profit Set to roll out today April 25 at 20:20 UTC, at the boundary of epoch 335, as confirmed by the company. IOG called this proposal a “significant network enhancement” set to increase Cardano’s throughput and the performance of its decentralized applications (dApp). As the company reiterated, Cardano has been experiencing a series of network upgrades that will allow it to improve its scaling capabilities in 2022. As the block size increase, IOG added, they will keep a close eye on it for future changes: Once deployed, we shall monitor network performance and behaviour closely over at least one epoch (5 days) to determine the next increment. Cardano has seen phenomenal growth in recent months, with performance improvements to match. Furthermore, the company claims that Cardano has been experiencing a “huge recent rise in transaction volume”. In that sense, with the addition of more improvements, they expect this trend to continue. IOG is focused on optimizing Cardano as it prepares for its next Hard Fork Combinator (HFC) event set for around June this year. IOG added: Cardano is one of the most decentralized blockchains in the world, built for correctness and security. As the ecosystem grows, we’re focused on delivering the scaling phase of our roadmap; improving speed and network capacity while maintaining security and decentralization. As NewsBTC reported, the network seems to be experiencing an increase in institutional demand, per data from IntoTheBlock. On-chain transaction volume for ADA appears to be in an uptrend since the start of February. This data seems to match with IOG’s statements about Cardano’s growth. @Cardano is experiencing increasing institutional demand The volume of on-chain transactions >$100k has increased by 50x just in 2022 Yesterday, a total of 69.09b $ADA were moved in these large transactions, representing 99% of the total on-chain volumehttps://t.co/8ME8STvRSF pic.twitter.com/aqH7hYIPiV — IntoTheBlock (@intotheblock) March 29, 2022 What’s Wrong With Cardano (ADA)? Data from Token Terminal paints a different picture. As seen below, ADA’s trading volume saw a massive increase in late 2021 as the cryptocurrency began a persistent downside price action. This suggests investors started taking profit on ADA at that time. Since that period, the cryptocurrency saw an uptick in trading volume during January which led to further losses for ADA. Only the increase in trading volume for March and April has led to profits for this cryptocurrency. Remains to be seen if the network improvements, as IOG claims, will be effective at bringing more users into the Cardano ecosystem which could result in sustainable price recovery. Related Reading | New Wallets Surge On Cardano, What’s Behind This? CEO at IOG Charles Hoskinson addressed ADA’s recent price action. In response to a holder’s concerns about the cryptocurrency’s recent downtrend, and what are the possible factor behind it, Hoskinson said: Nothing. Markets move up and down. Cardano is stronger and more useful as an ecosystem than it’s ever been. At the time of writing, ADA’s price trades at $0.8 with a 2% loss on the 4-hour chart.