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Bitcoin’s house of cards rally hinges on conquering $10,500; failure could spell disaster

Source: Unsplash

  • Bitcoin’s price since the start of 2020 seems to be supported by the bulls. This is a crucial development, especially after the traumatic year that was 2018 and the letdown of 2019. However, 2020 is seeing cryptocurrencies turning a page as Bitcoin’s RoI is at 39%. Even with such a bright future ahead of Bitcoin, its rally hinges on an important level, and failure to breach this level could push Bitcoin lower.


Source: BTC/USD on TradingView

The price on the weekly chart looks quite bullish, especially since it crossed the 21 WMA. Bitcoin is up by 23% since the breach of this important level. Further, Bitcoin has also breached the 0.618 Fibonacci level for BTC, thus creating space for it to surge up to the next level at $11,577 aka the 0.786 Fibonacci level. The problem for Bitcoin is the resistance at $10,498, which is where Bitcoin hit a ceiling after its first rally.

Hence, the future of Bitcoin hangs in the balance as it needs to breach this resistance level. Failure to do so will push the price to the immediately available resistance support, the Fibonacci level of 0.618 aka $9,770.

Halving Effect

Source: BTC/USD on TradingView

Bitcoin is set to undergo its 3rd halving in the immediate future, a development that will induce negative supply shock with constant demand. This will invariably push the price of BTC higher. As seen in the chart above, the hash ribbons are back above the zero-line, indicating that BTC’s are once again profitable. This makes sense as the price has surged above $10,000, which is an important psychological level.

The halving scenario indicates that the price usually tends to surge higher a year before the halving. Although there was a chance for the 3rd halving to be different than the other two, it wasn’t. The price started its pump and it has fulfilled the narrative of the price rising a year before the halving.

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Bitcoin News Today – Headlines for February 22

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  • Analysts and traders have long been waiting for BTC to “moon” once again
  • The $14k mark might be the key to send BTC back to the moon
  • The forthcoming halving could send BTC price to between $55k to $100k

Bitcoin News Today – Ever since the price of Bitcoin surged by more than 1,000 percent in 2017 to hit an all-time high of $20k, analysts have been waiting for the digital currency to “moon” once again. It seems like the moon – a noun-turned-verb used to describe the price of an asset surging significantly higher – is rapidly drawing near, that is if Bitcoin can break over one key hurdle point.

Bitcoin Needs to Break Over a Key Hurdle to Head to the Moon

While the largest digital currency in the world by market cap surged as high as $20k in 2017, it did not stay on that level for long. The digital currency failed to establish any semblance of support in that area. In fact, it ended the month of December around the $14k level, a decrease of 30 percent from its all-time high as the bulls failed to maintain momentum.

Recently, Delboy – a chartist – doubled down on this in a recent tweet. In the tweet, he said that the long-term chart of Bitcoin is showing signs that the $14k level might be key in sending the price of the digital currency back to the moon.

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %

From the chart, it is obvious that once Bitcoin (BTC) surged over the monthly high of the 2013 bubble around the $1,150 mark, the bullish traction picked up quickly, taking the price of the digital currency to $20k by the end of 2017.

How High Can the Price of Bitcoin Go?

While the jury is still out on where exactly the next bull market can take the price of Bitcoin to, the consensus is a fresh all-time high of at least $50k, proven by a crazy accurate price model made by an institutional quantitative analyst. The model, which is known as a stock-to-flow model, equates to the scarcity of Bitcoin, derived from the above-ground supply divided by the rolling issuance of the digital currency, to the market cap of the asset.

It determined, to a 95 percent R squared, that after the reduction of block rewards on the Bitcoin network in May this year, the digital currency will have a fair value of anywhere between $55k to $100k. A Twitter user – GeertJancap – pointed out that according to his transfer function model of BTC’s price, the price of the digital currency will catch up to the model, created by PlanB – a pseudonymous analyst.

At press time, the world’s most dominant digital currency is struggling below the $10k level after several failed attempts to break over the $10,500 mark. Bitcoin is currently hovering around the $9,600 mark.

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Bitcoin Has a Stale Block for the First Time Since 27 January 2020

  • Bitcoin is known to be the most famous cryptocurrency with its price currently touching near $10,000.
  • According to BitMex research, it announced Bitcoin had a first stale block since January.
  • The stale blocks which are not part of the current best blockchain led to a small fork.

Bitcoin is known to be the most famous cryptocurrency with its price currently touching near $10,000 and beyond in good days. Millions of crypto-enthusiasts stalk the news about this cryptocurrency which uses peer-to-peer technology to operate with no regulations from a central authority or banks.

BitMex is a Peer-to-peer crypto-products trading platform.

According to BitMex research, it announced Bitcoin had a first stale block this morning reaching the height of 618,466 since January 27 of this year, and it was in a 19 second time gap. Stale Blocks are blocks that got successfully mined but not included on the current best blockchain, likely because some other block at a similar height who had their blockchain extended first.

A blockchain is a chain of increasing blocks contains information mainly related to finance attaching to make it a collection of records in a way which cannot be altered and every block record various transaction occurs in the blockchain. The stale blocks are newly mined and not part of the current best blockchain because it got overridden by a longer chain and the more the height of the blocks is always a good sign to the strength of the bitcoin.

The stale blocks which are not part of the current best blockchain led to a small fork. The small fork is a result of nodes when geographically closer they pick up the block that was mined near to them. The current block in bitcoin is, however, quickly accepted into the main chain.

In the blockchain, no double-spends has been observed, and the stale block contained 18 Txns excluded from the competing block.

According to the ForkMonitor

Bitcoin is at the height of 618,503
Mined by: ViaBTC
Accumulated log2(PoW): 91.692145
Latest Blocksize: 0.17MB
Latest block transaction count: 359

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Gold or Bitcoin, Which will Hit $3000 First? : Peter Schiff

  • Peter David Schiff is an American libertarian, Financial commentator, economist, and a stockbroker.
  • Schiff earned a nickname of Dr. Doom when he more or less predicted the financial crisis of 2007-2010.
  • Schiff tweeted on twitter a poll on gold and bitcoin.

Who is Peter David Schiff ?

Peter David Schiff is an American libertarian, Financial commentator, economist, and a stockbroker. He is CEO of the Chief global strategist of Euro pacific Inc and the founder the Euro Pacific Canada. Schiff as a stockbroker and Financial commentator attached strongly to Gold and sees it as a savior in times of Prolonged decline in US Dollar. His love of Gold can be easily seen through the actions in Euro Pacific Bank LTD named offshore bank, which he introduced as the first 100% genuine gold and silver physically embedded global debit card systems back in 2011.

Schiff is not a fanatic of Bitcoin and sees like any other currency or more like a tulip mania bubble. He firmly believes that like the Tulipmania bubble it is destined to fall soon and the high price is temporary, nothing can replace gold according to him.

Dr. Doom and his predictions

Schiff earned a nickname of Dr. Doom when he more or less predicted the financial crisis of 2007-2010. Schiff has been criticized a lot for his theory, predictions, and definition of inflation, which Schiff believes that the definition of inflation will increase in consumer prices after a not so certain waiting period.

Schiff is criticized on a daily basis for his predictions and today also from the official twitter handle @PeterSchiff he tweeted

Gold vs Bitcoin:
The gold vs Bitcoin debate is still on, peter Schiff’s tweet was about the performance of the Gold price in the market and compared it with bitcoin. He explained how gold is rising to $3000 and today it is up 27$ and rose up above $1,640 which is all-time high than any other currency.

As not a Bitcoin fanatic, he wrote about how Bitcoin is now trading at $9,700 and the whole cryptocurrency market is bearish which he feels could drag the Bitcoin to $3000.

The one he is not certain which he wants to get an opinion from us is from Gold or Bitcoin which one is going to reach $3000 first and people can vote it through clicking the option you feel like in the poll feature twitter provides.

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