Bitcoin Crypto News

Tracking Whales, What This Bitcoin Divergence Could Hint About BTC’s Price

Bitcoin is trending downside on lower timeframes and seems to hint at future losses. The number one crypto by market cap records a 3% loss in the past week, but there is a potential sign of hope for the bulls. Related Reading | Why Ethereum Could Trade At $500 If These Conditions Are Met At the time of writing, Bitcoin (BTC) trades at $20,000 with a 1% loss in the last 24 hours. As a pseudonym trader pointed out, Bitcoin whales are currently buying into BTC’s price action and could be hinting at a future relief bounce. The trader used data provided by Material Indicators to show what the different investors’ classes are doing while BTC records losses. As seen below, investors with bid orders of about $100,000 (purple in the chart below) have increased their buying pressure as almost every other and smaller investor class sells into this price action. This divergence could hint at a bounce as these BTC whales often anticipate or create price trends. The pseudonym trader explained: Whales (purple) are market buying while #bitcoin price is flat. Historically, purple is the most important class for future price action. Clear divergence, hopefully it will play out this time. Bitcoin whales (brown in the chart) also saw a small uptick in buying orders as BTC returns to the area of around $20,000. This investor class has been mostly dormant in the current market environment, but their recent involvement highlights the importance of BTC’s current levels. In that sense, Material Indicators records massive bid orders for BTC’s price around this area from $19,900 to $20,000. There are over $20 million in bid order on these levels alone with an additional $6 million at around $19,500, and over $10 from $19,000 to $19,000. In other words, there seems to be enough liquidity for Bitcoin to hold at its current levels for the time being. Can Bitcoin The Bitcoin Bulls Score A Green Monthly Candle At higher timeframes, additional data provided by Material Indicators records an important liquidity zone between $17,000 and $20,000. Large market participants could attempt to push down the price to fill these orders which could hinder the bulls’ attempts to save the monthly candle. Analysts from Material Indicators wrote: Bulls are defending the 2017 Top, but with one day to go it’s going to be almost impossible to print a green Monthly candle. Still a chance for green on the Weekly. Expecting volatility. One way or another, Bitcoin is going to breakout or breakdown very soon. Related Reading | Extreme Fear Remains: Recapping What’s Behind The Crypto Market Panic The analysts expect a potential relief in the coming days after a potential retest of the yearly lows. Any bullish thesis would be invalidated if BTC loses $17,500. Trend Precognition is flashing a pretty strong Long signal on the #BTC Weekly chart. Signal won't print until the W candle closes, but indicates that we could see a run at the 200 WMA this week. Happy to test the lows first. For me, sub $17.5k invalidates. #NFA pic.twitter.com/hvs1as44qG — Material Indicators (@MI_Algos) June 28, 2022

Bitcoin Crypto News

Holding Back The Bears: Why Bitcoin Must Break $22,500

Bitcoin continues to struggle to hold the $20,000 level even after a recovery coming out of the weekend. This decrease in price has pushed the market further into the bear market. It still trades at very critical levels which will determine the movement for the next couple of weeks. These two main points are the support that formed at $20,000 and the 200-week moving average. Bitcoin Turning Bearish? The price of bitcoin at the time of this writing is ranging towards $20,000 with drawdown. Being so dangerously close to this point is critical in the forecast for the price of bitcoin, and this is despite the fact that bulls have already formed support at $20,000. Related Reading | Outflows Rock Bitcoin As Institutional Investors Pull The Plug, More Downside Coming? Another critical technical level is the 200-week moving average which the digital asset is currently trading below. Now, this is the first time in history that the price of BTC has ever fallen below the 200-day moving average, registering one of the most bearish trends ever recorded in the market. As such, there is now significant resistance mounting at the 200-week moving average which lies at an average of $22,500. This makes $22,500 the point to beat if the digital asset has any hopes of reverting to a bull trend. However, resistance is building even below this point. This was seen at $21,500 over the last couple of days as bitcoin had failed to successfully beat this point. BTC price struggles to hold $20,000 | Source: BTCUSD on TradingView.com Additionally, the digital asset price falling below the 200-week moving average has triggered more sell-offs in the market. These sell-offs are apparent on centralized exchanges such as Coinbase which have recorded large inflows in the last couple of days. Sentiment Refuses To Budge The market sentiment surrounding bitcoin and other cryptocurrencies has been impressively negative in recent times. It has now spent the majority of the month of June in the extreme fear territory as investors refuse to budge on their decisions to not move more funds into the market. The same sentiment is resonating through institutional investors who have been pulling out of the digital market en masse. Even the decline in price to levels some would consider a ‘discount’ has not done much to combat this negative sentiment. Institutional investor outflows from bitcoin for the previous week had come out to $453 million. Related Reading | Ethereum Plugs 11-Week Bleed, why $1,500 May Be On The Horizon Moreover, the interest in shorter-term positions in BTC is gaining more ground. This is evident in the attention that the ProShares Short Bitcoin has received in the last week. More than $18 million had flowed into the ETF in the first week alone. Bitcoin is currently trending at $20,000 at the time of this writing. If continues on this trend, the next significant support is existent at $16,500 which could be a shock to the market.  Featured image from Bitcoinist, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Crypto News Ethereum

Why Ethereum Could Trade At $500 If These Conditions Are Met

Ethereum has returned to the red as it was rejected as a major area of resistance. The cryptocurrency is bleeding out and records the second-worst performance in the crypto top 10 by market capitalization with a 10% loss in the last 24 hours. Solana (SOL) holds the number one position with a 13% loss. Related Reading | TA: Ethereum Topside Bias Vulnerable If It Continues To Struggle Below $1.2K The general sentiment in the market seems to be at an all-time low, but there is room for it to enter into a capitulation state, according to Daniel Cheung, Co-Founder at Pangea Fund Management. ETH’s price could succumb to macroeconomic conditions. Cheung claims the second crypto by market cap is correlated with traditional equities, in particular with the Nasdaq 100 via the Invesco QQQ Exchange Traded Fund (ETF). In that sense, the crypto market has become susceptible to stock price movement making it “a market regime where it is all just one big Macro trade”. The analysis claims that Ethereum could see a 40% drop from its current levels as the Nasdaq 100 has “a lot of room to fall”. This index has only experienced a 30% crash, and historically it has dropped by as much as 45%. The potential upcoming crash in the Nasdaq 100 (tech stocks), and in Ethereum as a consequence, will be driven by a poor earnings season, Cheung believes. This is one of the conditions that could force ETH’s price to break below $1,000 and into $500 for the first time since 2020. The analysis claims that the traditional market is misreading the U.S. Federal Reserve (Fed). The institution is attempting to slow down inflation, currently at a 40-year-old high as measured by the Consumer Price Index (CPI), by increasing interest rates and unloading its balance sheet into the market. Will Ethereum Follow U.S. Stocks To The Downside? The objective is to reduce consumer demand, and reduce prices across global markets, in hopes that this will bring down inflation. Market participants seem to be underestimating the Fed, and thus could be unprepared for the consequences, Cheung argues: (…) there will likely be more iterations of lower earnings revisions that follow over the coming months especially given this is a market regime that very few investors have experienced This will bring equities lower and crypto to follow with it more downside to come. In fact, the analysis argues that the U.S. could already be in an economic recession. This could bolster the Fed to put more pressure on the market, having an even worse impact on Ethereum and other cryptocurrencies. Related Reading | Bankman-Fried Is Looking At “Secretly insolvent” Small Exchanges & Crypto Miners This could be confirmed today with the report on GDP growth to be posted by U.S. financial entities. If this report spells economic slowdown, adding more downside pressure and further impacting companies’ earnings season, Cheung claims while adding: If the GDP print + CPI print + FOMC commentary all play out according to plan – we will likely be at a triple digit $ETH price once again. However, the land mine that investors would have to overcome would still not be over as 2Q22 company earnings would be just on the horizon.

Crypto News Ethereum

Ethereum Plugs 11-Week Bleed, why $1,500 May Be On The Horizon

Ethereum has been closing red week after red week for the past 11 weeks. It is the longest red streak that has been recorded in the history of the cryptocurrency, hence, it carried significant implications for the digital asset. Through the decline, it has been one of the worst-hit coins, performing poorly compared to the other cryptocurrencies at this time. However, the digital asset has now closed its first weekly green candle in three months and things are looking up. Better Days Ahead With this recovery has come a renewed interest in the digital asset. Coupled with the fact that the digital asset is now trading above its 50-day moving average, it has now solidified a bull trend for the short term. The activity on the network, though reduced, remains high enough to strike renewed faith in the heart of investors.  Related Reading | Market Wallows In Extreme Fear As Bitcoin Struggles To Hold $20,000 However, there are still things that threaten the price of the cryptocurrency going on another bull rally. The Celsius debacle had been one of the major reasons behind the drawdown below $1,000 and remains a very real threat. The lending protocol which has found itself in a tight spot due to some bad trades remains at risk of being liquidated, and rumors continue to circulate that Celsius is planning to file for bankruptcy, which would mean users would not be able to get their tokens back. ETH price sees first green weekly close after three months | Source: ETHUSD on TradingView.com Additionally, Three Arrows Capital’s insolvency had hit the market hard but there is still more to come. This is because it is the leading crypto fund and as such had its hand in a large number of projects in the space, especially DeFi, the majority of which would be significantly affected by the 3AC insolvency. Ethereum To $1,500 Presently, the price of the digital asset is still trailing $1,200 but there are some things rumored in the market that will likely promote a pump in price. One of these is FTX’s supposed acquisition of the trading platform, Robinhood. Now, Robinhood is one of the most popular platforms when it comes to trading crypto. However, it has drawn the ire of the community in the past due to its practices. As such, if it were to be acquired by FTX, a trusted crypto exchange, it would mean that FTX would be bringing Robinhood’s massive user base of more than 22 million to the broader crypto community. Related Reading | Ethereum Fees Touch Monthly Lows As Transaction Volumes Plummet There is nothing definite regarding the acquisition yet but the sentiment among investors regarding it has been good so far. A rally resulting from such an acquisition could easily see Ethereum grow more than 20% and that would put the digital asset above the $1,500 level once more. ETH is trading at $1,221 at the time of this wring. It remains the second-largest cryptocurrency in the space with a market cap of $148 billion. Featured image from CoinMarketCap, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…