Connect with us

Bitcoin

Bitcoin short position closing on Bitfinex speculated to have an impact on coin’s price

Published

on

The cryptocurrency market has been rife with comments and inputs from various proponents, with many claiming that Bitcoin and the rest of the altcoin market will enjoy an unprecedented bull run soon. This sentiment has been helped along by significant movements, not just in the cryptocurrency’s price, but also in other metrics such as transaction volume and hash rate.

A recent survey of the Bitcoin ecosystem revealed how massive short positioning on Bitfinex has actually had an effect on the cryptocurrency’s price. Jacob Canfield, a popular cryptocurrency trader, recently tweeted,

“Massive #bitcoin short position closing has happened 4 prior instances on @bitfinex
3/4 times price dropped an average of 23% afterwards
1/4 times price increased by 28%.
It’s possible we range for a while before continuing our uptrend.
Expecting more volatility though.”

Source: TradingView

Source: TradingView

The only time Bitcoin’s price went up due to the

short closing was back in April 2018. During the month of April, Bitcoin rose from $6584.60 to $7971.11 in a short span of time. After the April phenomenon, Bitcoin recorded another price hike in July after the price crash in May. In July, Bitcoin rose from $6220.88 to settle at $8391.83.

Bitcoin shorts had an impact on the cryptocurrency’s price recently after the price dropped below the $11,000 mark after the shorts took control. The drop resulted in $1000 being shaved off Bitcoin’s value, forcing it to trade at $10,800.

The price correlation has also worked the other way, where the price fluctuation affected short sales. BitMEX, a popular cryptocurrency exchange, saw around $64.38 million shorts being liquidated after Bitcoin prices breached the $10,000 threshold.

At press time, Bitcoin was trading at $11,699.93 with a total market cap of $208.41 billion. The cryptocurrency held a 24-hour market volume of $26.9 billion, as the cryptocurrency was going up by a mediocre 1.16 percent.

Source.ambcrypto

Bitcoin

BITCOIN VOLATILITY DWINDLING, HAS BTC TAKEN AN EARLY VACATION?

Published

on

Bitcoin and cryptocurrency markets are slowing down. There has been very little activity over the past week as volumes and volatility decline. Technical indicators are also lining up which could indicate a larger move is imminent or is BTC on vacation for the rest of the year?


BITCOIN SLOWING DOWN

This may not be such a bad thing. One of the points bitcoin detractors always make is that it is too volatile to be used as a daily currency. This much is true if a cup of coffee is going to be 20% cheaper ten minutes later you’re not going to buy one in BTC right now.

Over the past year or so these massive price swings have decreased in amplitude and it appears that bitcoin has entered a low volatility regime.

Day traders seeking quick bucks have had to take a break as movements are minimal at the

moment. Over the past few days, BTC has only oscillated $150 or so in its sideways channel. This is good for price stability but not good for those seeking quick returns.

This type of action often preludes a bigger move and technical indicators such as Bollinger bands squeezing are also indicative of such.

This slowing of momentum has happened across the board, not just on bitcoin markets. Ethereum volatility is also at low ebb, falling to levels not experienced since 2016 as noted by Coin Metrics.

It could just be that time of year when traders take a break and FOMO is as thin as the first fall of winter snow. If this is the case then markets will remain flaccid until sometime next month.

News Source

Continue Reading

Bitcoin

Bitcoin News Today – Headlines for December 14

Published

on

news bitcoin
  • Investor believes round numbers are very important in BTC markets
  • BTC crossing $10k is important says investors and analysts
  • Crossing the $10k mark in the near-term will ensure that Bitcoin’s price action is positive.

Bitcoin News Today – Bitcoin investors have always gravitated towards round figures. According to one top crypto investor and commentator, the importance of round numbers can’t be overstated especially in a nascent market. This implies that after reclaiming the $10,000 mark, the macro price scales will ensure that Bitcoin can go higher and higher until it reaches a new round number.

The Importance of Round Number Prices in Crypto

During a recent interview with Luke Martin, Three Arrows Capital Su Zhu said gave his opinion on why round numbers are essential. According to Zhu round numbers are important in the crypto market because the leading crypto topping the $10,000 mark will be an important time in terms of forcing a good price action. It isn’t only Zhu who is of the view that $10,000 is of great importance for Bitcoin and the entire crypto space.

Earlier in the year, Tom Lee, Fundstrat Global Advisors’ resident crypto analyst released his analysis for BTC by his firm. His analysis implies that if the price of BTC reaches and crosses the $10,000 level it could mean

something big. He requested that we all watch for that level. According to Fundstrat’s’ analysis, once BTC tops the $10,000 area, “Level 10” FOMO is expected to grace the market. If history repeats itself, the crypto market will shoot higher after $10,000 is reclaimed.

Another platform that agrees with Zhu’s view is Bloomberg. Bloomberg wrote in November of this year about the importance of the $10k barrier and how essential round figures with four and five digits are. The platform said Bitcoin faces a solid resistance point at the $10,000 area. The coin will have to break this barrier if there is to be a confirmation and continuation of meaningful gains.

Is the $10k Mark Attainable for Bitcoin?

Speaking about Bloomberg and BTC getting to the $10,000 mark, one analyst at Bloomberg believes that it’s just a matter of time before the number one crypto tops that key position. The analyst, Mike McGlone, who is the senior commodities strategist at Bloomberg, revealed in his monthly market update that he believes that Bitcoin will top the essential $10,000 resistance point. He said as gold rallies, Bitcoin should rally. While Gold is currently trending below BTC amidst the trade war, the macro picture may begin to favor gold and Bitcoin as we head into 2020.

News Source

Continue Reading

Bitcoin

Stratis Will Increase Rapidly If It Moves Above 4500 Satoshis, Predicts Trader

Published

on

Stratis has been trading in a range since August 2019. This movement has the characteristics of the consolidation phase, after which a new bullish market cycle is expected to begin.

The trading range of this consolidation has a magnitude of 40%, and the price has tested both the resistance and support areas several times. At the time of writing, it was moving upward towards the resistance area.

Full-time trader @CryptoMichNL noted that the Stratis price has been holding above a strong support area and has shown signs of moving upward.

Additionally, he suggested that a breakout above the 4500 satoshi resistance area would probably accelerate the rate of increase.

Let’s take a closer look at the price and see how likely this is to happen.

Long-Term Bottom

First, the Stratis price reached the long-term support area at 3000 satoshis in August 2019.

This was almost an all-time low, coinciding with the lows reached in 2016, which was the bottom before the 2017 upward move.

Additionally, the RSI reached an all-time low value of 23 during this time and created bullish

divergence. The weekly RSI has never been this low and the only other time it has created bullish divergence (October 2018) an upward move followed.

This suggests that this is a very suitable level to make a low and initiate a reversal, as we have suggested in our previous article.

Stratis All-Time Low

Looking closer at the movement, we can see the trading range, consisting of two support and one resistance area.

The main support area is at 3250 satoshis, where the double bottom was created. This is followed by the minor support area at 3850 satoshis. The minor support coincides with the 100-day moving average (MA). The price has flipped it as support. The price fell inside it twice and began an upward move each time.

The resistance area is found at 4500 satoshis and the price has not reached it since November 30.

Stratis Trading Range

Short-Term Breakout

On December 11, the Stratis price broke out above the descending resistance line that had been in place since the beginning of December.

The breakout transpired with significant volume, increasing the validity of the movement. Afterward, the price returned to validate the descending resistance line, a common movement after breakouts.

Stratis Short Term

To conclude, the Stratis price is likely consolidating before beginning a new market cycle. A decisive breakout above 4500 satoshis is expected, confirming that the new cycle has begun.

News Source

Continue Reading
Open

Close