Tag: price analysis

Is Bitcoin Going To Experience Its Biggest Weekly Loss Of 2019 This Week?

For the first time in over six months, Bitcoin’s acceptance has been below key support. Yesterday, the prices plummeted below a four-month low of $7800 and this phase of price volatility lingers. Bitcoin is currently trading at $8,030 on Bitstamp. This is a 20% decline from Monday’s opening price of $10,022. Assuming these prices remain at this level till Sunday’s UTC close, this would be the year’s biggest weekly loss so far.

Bitcoin has been dramatically hit with a rapid drop in one-fifth of its value. On Tuesday evening, bitcoin dropped by $1,500 within an hour to hit the $8,000 threshold. The prices dropped again after another sharp sell-off to as low as $7,830. The entire cryptocurrency market has also experienced this rapid drop.

BTC weekly chart

According to data from Bloomberg, bitcoin dropped by 9% and traded for as low as $7,736 in New York. This is its lowest record price since May. The total market capitalization continues to show new multi-month lows across crypto markets. Altcoins are not left out of this phenomenon of losses. Ether (ETH) is currently down by 2.54% and sells at $165.41. XRP is down by 1.54% and Bitcoin Cash (BCH) is down by 4.92%, selling at $214.48.finally, Litecoin (LTC) is down by 3.16%, changing hands at $55.01.  

Bitcoin prices have failed to hold onto signs of recovery. More downward price actions have been experienced as at yesterday. Back in the second week of January, there was a 13% fall back and this has been the biggest weekly loss so far. If bitcoin experiences a greater loss than this, it would be the most severe of the year.  From all indications, only a short-lived corrective bounce is possible over the weekend. It is likely that cryptocurrency would close below $8,719 on Sunday and would be the biggest weekly loss so far.

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XRP Status Classified as Unclear, Meanwhile Analysts Say XRP Price Could Jump to $0.30

The US Commodities and Futures Trading Commission (CFTC) Chairman Heath Tarbert indicated in an interview that the status of XRP had been classified as unclear. He said, “It’s unclear. Stay tuned I’d say. Part of the issue is that our jurisdiction we share with the SEC (Securities and Exchange Commission). If it’s a security, it falls under their jurisdiction. If it’s a commodity, it falls under ours.” 

Tarbert also added that the CFTC and SEC would be working together to classify the status of various cryptocurrencies. According to Tarbert, Bitcoin and Ethereum are classified as commodities. XRP, however, does not fall into this classification, as the token is used on RippleNet by Ripple to enable fund transfers globally, and has been used as a store of value.  

Is XRP ready to push above its resistance? 

XRP has been staying in the mid $0.20 region, proven to be a strong support level prior to its drop to $0.18 in Q4 2019. The bullish trend in the crypto market has been positive for major altcoins such as XRP to push against a key resistance. If the resistance is broken in the next few days, it could lead to a significant spike reaching new multi-month highs.  

Crypto Rand, a crypto analyst said that he believes that XRP could push upwards past $0.30. 

Popular crypto analyst stated in a tweet, “XRP – 6 month RSI technical level broke yesterday, here is where the 6 month descending trend line rejected yesterday but very likely breaks up today.” 

MoneyGram’s expansion into India, a win for Ripple’s adoption 

MoneyGram, a multinational payment remittance platform previously partnered with Ripple, for its on-demand liquidity for cross-border transactions. Using XRP is the bridge between two fiats for transactions, this ensures a faster and more efficient transfer. This resulted in MoneyGram’s improved speed of the settlement of transactions, as XRP adoption also increased.  

MoneyGram recently partnered with EbixCash, to expand the former’s presence in India. According to a press release, it states that Ebixcash is owned by a software application product supplier, who is responsible for MoneyGram’s expansion into the Indian market. As MoneyGram will get access to more consumers in India, the company will also get access to hit the rural areas in the country.  

Alex Holmes, MoneyGram’s CEO believes that Ripple’s on-demand liquidity could be a game-changer, although it is currently in its early days. Ripple has already put together a list of partners who are using or planning to use on-demand liquidity. 

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Bitcoin Surges Past $24,000 for the First Time, Market Analysts Predict What’s Next for BTC

After seeing a decline of its price a few days ago, Bitcoin has accelerated its pre-Christmas rally and has reached the $24,000 mark for the first time in history, before declining to $23,978.89 on the day. On December 19 at 17:16 UTC, the cryptocurrency hit $24,049 and was up to 6.75% in a day, according to CoinMarketCap.

The past week, the cryptocurrency rallied by 33% in a month and up 234% since the beginning of 2020.

Some crypto traders have projected that Bitcoin could climb up to $25,000 by Christmas. The price of the cryptocurrency is set to get a seasonal boost over the coming days with the current holiday festivity.

A crypto analyst said: “We’ve got 5 days to pump $BTC to $25,000 and $ETH to $800.”

Meanwhile, Philip Gradwell, the chief economist at Chainalysis blockchain analysis company, stated on Thursday, December 17 that he anticipates seeking a huge swing in the price over the next few days as the market attempts to get a balance between supply and demand.

 Gradwell further said that in this year, the top cryptocurrency has matured as a financial asset and is well suited in the current macro environment. He mentioned that because of this, large investors have significantly bought millions of Bitcoins thus decreasing the remaining supply available for purchases.

Large Wall Street firms including Square, MicroStrategy, and many others have added millions of dollars in Bitcoin to their treasuries. As a result, some people feel that it is only a matter of time before major corporations follow suit.

Retail investors can also purchase Bitcoins through the huge PayPal market network.

As Bitcoin continues to take new all-time highs, Alternatively, crypto fear and greed index indicates strong greed in recent weeks. Extreme greed is a potential indication that investors are overpopulated and a correction could be on the horizon. Extreme fear of missing out shows that the market is overbought.  

Bitcoin Hits $33,000 For the First Time Ever as FOMO Among Investors Supports the Surge

The world’s largest virtual currency continues with its extraordinary upward trend. On Saturday morning January 2, Bitcoin sailed past the $30,000 threshold for the first time in its history and jumped as high as $33,000 before sliding back below $32,000 by late Saturday afternoon.

In early September of 2020, the leading cryptocurrency traded at around $10,000 and did not surpass the $20,000 mark until just three weeks ago on December 16. The day after Christmas, Bitcoin soared past $28,000.

In the month of December alone, the largest cryptocurrency has advanced almost 50% and gained nearly another 9% on Saturday. Bitcoin’s market capitalization is now above $600 billion.

However, Bitcoin was not the only crypto asset that has increased its value on Saturday. Other smaller competitors such as Chainlink, Litecoin, and Ethereum also saw a price increase during crypto trading.

Meanwhile, several crypto experts have issued their opinions with regards to the recent rally. Nicholas Pelecanos, the head of trading at NEM crypto company, has made a prediction that the value of the biggest cryptocurrency could increase to $50,000 by Valentine’s day. Likewise, Scott Minerd, the CEO of Guggenheim Investments said in mid-December that the price of Bitcoin should eventually rise to about $400,000.

However, Glen Goodman, a crypto trader and former TV news reporter, has a different version of the story. Last month Goodman said:

“History has a warning for people buying at the new all-time-high. While I’m optimistic about the long-term prospects for Bitcoin, four years ago we had a very similar situation with Bitcoin breaking new ground, but just two weeks later its price plummeted by more than a third.”

The crypto asset has a long history of volatility and several analysts expect some correction of the recent rally sooner or later. The initial major price spike happened in 2017 when Bitcoin climbed to around $20,000, but then lost over 80% of its value over the following 12 months.

Fiat Currency Losing Its Meaning

The leading cryptocurrency has grown immensely over the previous year as it has widely drawn in more interest from retail and institutional investors who mainly see the digital currency as a safe haven asset during the Covid-19 pandemic. People have been losing faith in their government-backed fiat currencies, and the monetary policies resulting from the economic impact of the COVID-19 pandemic have accelerated such decline. Many institutional investors have decided to embrace virtual currencies. Firms such as PayPal have added support for crypto transactions. Many retail investors have also turned to digital currencies as a safe haven during the coronavirus pandemic.

$2.3 Billion Liquidated on Crypto Exchanges as Bitcoin Price Crashes By $5.4k In Minutes

Over the last 24 hours, the entire crypto market suffered a flash crash, losing about $110 billion in the market cap and sending the Bitcoin price below $30,000.

During the flash crash, about $190 million in long positions were liquidated on Binance and an estimate of $2.3 billion was liquidated across all cryptocurrency exchanges in total. Bybit crypto derivatives trading platform also indicated that over 150,000 traders were liquidated during such a particular time frame.

At first, things were looking dull, but the crypto market has managed to recover significantly. Bitcoin’s value declined to $28,130 from $33,600, but has managed to recover and now trading at around $32,500. The entire market has quickly recovered and the current market capitalization sits at $884 billion according to CoinMarketCap.

Several crypto analysts believe that Bitcoin should pull back from its current trading levels to maintain a healthy uptrend.

While the previous dip was massive and something extraordinary in March 2020, other steeper dips in 2017 had an enormous impact on the leading cryptocurrency. However, Bitcoin and cryptocurrencies have managed to recover rapidly. This makes investors have confidence in the market and therefore are aiming for higher highs.

Putting this into consideration, it is possible that the next dip will come even faster and everyone now expects that.

Bitcoin bulls have defended a critical support level in the form of the 12-day EMA (exponential moving average) on the daily chart. Therefore, provided that Bitcoin price stays above the 12-day EMA and the 26-day EMA on the daily chart, the uptrend would remain intact. However, a slip below the 26-EMA would be a concern and indicate a shift in momentum.

The Ethereum price has also climbed to hit $1,000 for the first time since January 2018 and peaked at $1,162 before plummeting. The current price is trading at $1,100 as the bulls hope to continue with the upward trend.

The TD Sequential indicator has just presented a sell signal on the 6-hour chart. Similarly, the trend indicator shows that the crypto is on the verge of doing the same on the 9-hour chart. If both signals are confirmed, then the Ethereum price could see a fall towards the psychological level at $900 again.

Meanwhile, in the previous month, Litecoin has been one of the few coins that have outperformed Bitcoin, increasing its price by over 150% reaching $173, which is still down from its record high of $360 registered on December 19, 2017.

Bitcoin Hits A New Record High Of Over $37,000 As Wild Price Swing Resumes

While extreme swings continue to rock Bitcoin, the price of the world’s largest crypto asset has reached another all-time high. 

The cryptocurrency increased in value by approximately 8% to climb to around $37,254.00, surpassing the previous high record experienced on January 3 when it was trading at $36,190 in the late afternoon, in Eastern Standard Time (GMT-5).On Monday, January 4, Bitcoin had dropped its price by as much as 17%, but its bull run appears far from over.

Several factors have been identified for contributing to the increase of Bitcoin’s value, suggesting that it may be difficult to pinpoint one particular reason that can serve to explain the cryptocurrency’s latest volatility. Some traders have identified JPMorgan Chase & Company’s prediction of long-term Bitcoin price reaching as much as $146,000 in value as the cause of the recent price rise. However, others have pointed out that FOMO (fear of missing out) may be the cause of the record rally. Coinbase, the largest crypto exchange in the US, stated that it was witnessing “connectivity issues” on both its mobile app and website following Bitcoin’s ascent to $37K.

Vijay Ayyar, Head of Business Development at Luno cryptocurrency exchange in Singapore, said:

“Clear bull market, and we’re not getting 30 per cent to 40 per cent drops like in 2017. The market is more mature with bigger buyers. Keep in mind though that we’re in a parabolic phase and they do top out.”

Matt Long, head of distribution and prime products at OSL crypto brokerage firm in Hong Kong, said that while the latest price swings are part of the past boom and bust cycles, Bitcoin’s ability to reverse its price fall so quickly this week indicates institutional investors are not abandoning the crypto space.

Long said: “Monday’s dip was instructive as institutional investors used the opportunity to buy in. Institutional investment is firmly in the digital asset sector, and potentially accelerating.”

Likewise, Stephen Innes, chief global market strategist at Axi, said: “The chase higher is back based on the notion that bigger main street investors are interested in building longer-term positions.”

Bitcoin as a Hedge Against Market Risks

Bitcoin offers a hedge against risks such as inflation and a weakening dollar in an economy thriving on monetary stimulus. The crypto’s dizzying rally has attracted interest among Wall Street giants, with several institutions seeking to capitalize on the impressive returns being offered by the digital asset.

Many companies and prominent investors such as Stan Druckenmiller, Scott Minerd, Paul Tudor Jones, and others have begun allocating their funds into Bitcoins. The crypto market is being driven by institutional investors mainly from North America, China, Japan, and South Korea.  

Litecoin Price Analysis Indicates LTC Will Surge Over $200

As Bitcoin (BTC) rallies to new all-time highs on almost a daily basis for the start of 2021, Litecoin (LTC) has also recently seen a massive surge as the cryptocurrency pushed past the $170 level today around 40% below its all-time high price. An analysis of LTC movements continues to flash bullish signals for a continued price rally.

Over the past week, Litecoin has surged by over 32%, and  LTC now has a marketcap $11,254,950,452 according to CoinMarketCap.

The Litecoin community grows more excited as LTC surges towards its all-time high of $360. Our technical analysis of LTC’s movements indicates further bullish price movements to come for the altcoin.

LTC Price Analysis

Source: LTC/USD TradingView

On a weekly timeframe, we can easily observe that Litecoin price trend has formed a W-shaped double bottom pattern formation. The first resistance is located at the $180 area, and it may have a minor retracement here before the LTC price takes off.

Source: LTC/USD TradingView

If we look at the candlesticks in the weekly chart, we can see that there was a bullish pin bar several weeks ago, and the price continues to rally for several weeks after this candlestick. Paying attention to the closing candle for this week, if it closes around $170 or higher, it would be a very bullish sign for the price to go further as we have predicted above.

If it follows the uptrend as indicated in the chart, the mid-term price target would be $225.26 as drawn in the chart above, and a long-term target of $270 level. 

At the time of writing, the Litecoin price is $167, with LTC up over 6% in the last 24 hours.

Bitcoin Tops $40,000 for The First Time but Experts Warn of Looming Price Correction

Bitcoin surged above $40,000 for the first time on Thursday, January 7, as the cryptocurrency continues the wild rally that has seen it jump over 700% since its low moments experienced during the March crash last year.  The world’s most popular digital currency reached as high as $40,402.46 and added 6.1% to its value, before pulling back slightly. Currently, it is trading at $38,199.06 at the time of writing.

Bitcoin climbed to $20,000 on December 6 and hit $30,000 for the first time on January 2. Other altcoins such as Ethereum (ETH) and Ripple (XRP) have also gained value by 1.8% at $1,200 and 31% at $0.32 respectively.

Crypto experts have however warned that a price correction could be imminent after Bitcoin achieved such a great rally.

Gavin Smith, CEO of cryptocurrency consortium, Panxora Group, said:

“While further growth is inevitable, investors should not expect this to move in a straight line. The reality is that bitcoin is far from being a magic money tree, nor is it free from downward price swings. In fact, we can expect dips as sharp as 25% at times as investors periodically withdraw profits.”

The recent surge in the price of Bitcoin occurred as the market capitalization for the entire crypto industry hit $1 trillion on Thursday, January 7. This is according to data released by cryptocurrency trackers CoinGecko and CoinMarketCap.

Meanwhile Glassnode blockchain analytics firm has identified increased interests among retail investors in the past few weeks, with the number of BTC wallets or addresses holding a “non-zero amount” of Bitcoin hitting an all-time high of over 33 million.

The blockchain data and intelligence provider also stated that while interest in Bitcoin and related news coverage issues has increased, it is far from being in bubble territory. Glassnode mentioned that the number of daily news Bitcoin has reached at the moment is still not comparable to the volume witnessed in 2017, therefore indicating that the cryptocurrency is witnessing a strong organic growth in its adoption, though not the kind of “virtual growth typical of a bubble.”

Bitcoin : A Game-Changer in the Financial Market

Increased interest among institutional investors and more recently retail investors has contributed to the surge of Bitcoin price this year. Companies and retail investors are attracted by the cryptocurrency’s potential for quick gains in a world of negative interest rates and ultra-low yields. Many investors see Bitcoin as a hedge against inflation amid huge monetary stimulus being proposed to alleviate the economic crisis triggered by the coronavirus pandemic.  

Bitcoin Price on Course to $100,000 by 3rd Quarter of 2021, says 10T Holdings Co-founder

Bitcoin (BTC) has been undergoing a price correction after it surged to highs of $41,500 recently. It is down by 5.32% in the last 24 hours, trading at $33,800 at the time of writing, according to CoinMarketCap.

Despite experiencing this dip, Dan Tapiero, the co-founder of fintech and digital assets firm 10T Holdings, believes that BTC has not missed a step in its journey of hitting $100,000 by the third quarter of 2021. He explained:

“Looking at 100 trillion USD-Bitcoin chart. So far, kudos. Yes, 100k very possible by Q321 but then SIDEWAYS until 2024! What will bitcoiners do for 3.5 years as mkt hovers around 2-3 trillion mkt value? BTC becomes stable pristine collateral as DAE gets built up around it.”

Source: Dan Tapiero Twitter

Based on Tapiero’s analysis, after surging to $100k in Q3 of 2021, Bitcoin will be subjected to a ranging market given that it will move sideways until 2024, and this will make the leading cryptocurrency a stable collateral, which will not need any intermediaries.

Therefore, it looks like it’s boiling down to a matter of when, not if Bitcoin hits the $100,000 mark. Earlier this month, leading American bank JPMorgan Chase & Co. disclosed that the target price of $146,000 could be breached in the long term if more public support and market share evaded traditional safe-haven asset gold for Bitcoin. 

Preaching the holding gospel

Crypto analyst Tone Vays has revealed that BTC’s price ought to hold the $31,500 level because a deeper price plunge will see the leading cryptocurrency plummet to the mid $20k range.

Nevertheless, the holding gospel is continuously being preached because some analysts see it as the light at the end of the tunnel in the long term. Crypto trader and technical analyst Michael van de Poppe recently stated that holding Bitcoin for the long term was key because its price is still skewed upwards above the all-time high (ATH) of $20,000 set in December 2017.

His sentiments are echoed by Isaiah Jackson, the co-founder of KRBE digital assets group and author of “Bitcoin & Black America,” who believes that BTC is good for the future because it will fix economic injustices.  He, therefore, encourages Black investors to jump on the BTC bandwagon. Time will tell what Bitcoin has in store in 2021. 

Bitcoin Recovers Its Losses After Early Week Plunge and Manages to Maintain Price above a Crucial Level

Bitcoin has recovered most of its losses seen at the beginning of this week, thus proving to skeptic investors who were quick to predict the end of the top cryptocurrency’s bull run.

The world’s leading crypto asset advanced as much as 7.5% to briefly climbed to $40,000 again on Thursday, with other altcoins such as Ethereum, Litecoin, and Bitcoin Cash also seeing a rise in their value. Over the weekend, Bitcoin was trading at about $36,230, thus experiencing a fall by 6.5% after clearing $40,000 earlier in the week.

Craig Erlam, a senior market analyst at Oanda Europe, said:

“While $35,000 may provide an interesting test, the only level that really matters is $30,000. A break of this could trigger a much sharper correction.”

He further added:

“We know it’s an extremely volatile instrument – the only difference this time is the absolute numbers are now much larger due to its growth over the last month.”

Meanwhile, Mike McGlone, a commodity strategist at Bloomberg Intelligence said that both institutional and retail investors adopting Bitcoin has contributed to pushing its price higher. He stated: “This is a very unique phase in the Bitcoin process of price discovery that favours a strong rally.”

Bitcoin experienced an impressive surge last year, which it advanced its value by over 300%. Crypto advocates claim that red-hot gains are solid and are here to stay because the current coronavirus pandemic has created the perfect conditions for the digital asset amid global central bank money printing activities.

Nevertheless, there are still skeptics that worry that the largest cryptocurrency by market cap has gained too much too fast, with several claiming that its surge is a sign that the crypto market is overloaded with speculative behaviour.

Technical analysts have stated that the price is fluctuating between support levels, which could pave the way for a far deeper retreat or see high records. The Relative Strength Index for the leading cryptocurrency, which tracks momentum over the last 14 days, shows that the only recent fall below crucial levels indicates that the digital asset was overbought.

What Drives Current Bitcoin Bull Run

In recent weeks, crypto-centric products have experienced an increase in popularity as investors have rushed to get a slice of the action.  

For example, Grayscale cryptocurrency investment firm has experienced a 900% surge of inflow investments. That 900% rise was driven by demand for Bitcoin from institutional investors like hedge funds, endowments, and pension funds. The firm stated that it has experienced total inflows of more than $3 billion across its products in the fourth quarter.

Institutional and current retail demand has been cited as major reasons explaining why Bitcoin hit $40,000 last week and tripled its rally, in comparison with last year.  

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