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The Laser Eyes Meme: Not a Coincidence That This Marked a Local Top for Bitcoin (Opinion)

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Bitcoin price lost 25 percent in less than two days. And while the correction might not be over, a popular meme trend might have been the telltale sign.

Bitcoin plunged. It lost somewhere around $13k, or 25% in the past couple of days. It’s not alone. The entire crypto market is bleeding.

Data from CoinMarketCap shows that the capitalization lost around $365 billion since Sunday. For reference, last year, on this date, the total market cap of all cryptocurrencies was $283 billion. There’s no sugarcoating it – the crash is substantial, and it might not be over yet.

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Cryptocurrency Market Cap. Source: CoinMarketCap

But what led to it? Well, there’s no telling, but if one thing is for sure, the euphoria is definitely peaking.

2017: Retail Euphoria

Back in 2017, we witnessed a historic bull run that took the prices for many cryptocurrencies to peaks never before seen. Bitcoin peaked at about $20,000 – a number that the entire community will remember, despite the fact that we’re more than twice above it now.

However, the joy was somewhat short-lived. In retrospect, it’s easy to see some of the top signals. Retail investors flooded the market, heavily promoted by mainstream media. At one point, CNBC even did an ‘educational’ bit showing people how to buy Ripple’s XRP.

Guess what price was XRP trading at that time? If you said $2.25 – you were right! That was on January 2nd, 2018, and XRP almost doubled 2 days later before the market took a turn. The price has never been as high since a few days later, and many, MANY people lost their money.

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That’s just one example. We saw celebrities starting to publicly endorse initial coin offerings, many of which turned out to be sold entirely illegal.

If you’ve been around since before 2017, and even if you didn’t have any crypto holdings until then, it’s almost 100% guaranteed that you heard about Bitcoin’s epic ascend to $20,000. This was peak euphoria. Everyone was talking about crypto. Everyone.

What followed was a brutal bear market where BTC dropped to a low of around $3K, and most altcoins lost more than 95% of their value. Some of them never recovered. Many of them disappeared completely. People lost a LOT of money.

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Fast forward a few years, and the bear market is over. We’re currently in another bull market that is perhaps even more impressive than the last one. Bitcoin marked a new all-time high just a few days ago, and this time, it was almost $60K!

But the market has never been programmed to go “up only.” It corrects. And when BTC sells at $58K a pop, a 20% correction means a five-digit decline. That’s where we are right now.

Laser Eyes Meme 2021: Euphoria Settles

One good way to measure the retail interest in Bitcoin (and, by extension – the crypto market) is to check out data on Google Trends. The search volume for “bitcoin” doesn’t seem to be anywhere near the peak of 2017.

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Bitcoin Search Volume. Source: Google Trends

And yet, I’m sure all of you reading this have received a phone call from your friends, family, or even people you haven’t heard in years asking you about Bitcoin. Euphoria is starting to settle.

Another clear example of peaking euphoria is the #LaserRayUntil100K trend that started a few days ago on Twitter, right when BTC’s price was ascending towards its all-time high.

Major proponents, senators, influencers, industry leaders, thought leaders, and regular folks changed their Twitter profile pictures to include laser eyes.

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The crypto community under the laser eyes. Source: Mike Dudas’ Twitter

 

The trend spread like wildfire. A good representation of its reach would be the fact that Elon Musk did it, as well as the US Senator Cynthia Lumis. Disclaimer – we did it too. Our Potato is now staring at you with its laser eyes on Twitter.

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Is there something wrong with this undertaking? Absolutely not! The community is united under a common banner is definitely a positive.

However, perhaps we should unite under something else rather than bitcoin against the USD. I just feel like retail euphoria isn’t exactly where it was in 2017 in terms of regular folks, who are outside of the industry. But it’s definitely here among those of us who’ve been waiting for this bull market for quite some time.

But could that be a signal for a local top? After all, we did see a major correction in Bitcoin’s price, which is down $13k in less than a couple of days. Perhaps. Why, though? Well, there are a few reasons.

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The Price Became a Dominating Factor

The truth is, regardless of whether you want to admit it or not, that price is all everyone talks about.

In retrospect, the hardcore Bitcoin community has always been represented by modest people who tend to stay away from the headlights, quietly waiting for their moment.

People who are stacking their sats without making too much noise. People who aren’t the “I told you so” kind. People who are doing the work every day, spreading awareness, building, educating.

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Crypto Twitter, where a large part of our community is, is dominated by price conversations. Everyone is obsessed with it. Bitcoin’s price suddenly became its measure for success.

I know a lot of people continue building, I also know a lot of people didn’t succumb to the laser eyes trend. You won’t likely see figures like Andreas Antonopoulos and Jimmy Song take a part in this laser eyes game.

In other words, it suddenly started to feel as if euphoria is within all of us. And that’s usually when the market takes its share.

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Andreas Antonopoulos
Andreas Antonopoulos, you won’t likely see him participating in the laser eyes meme

Maximum Pain?

The question remains – was this maximum pain? Well, if we look at history, it probably wasn’t. In 2017 we saw plenty of corrections where the price crashed by more than 30% and the one we saw (are seeing) right now was barely above 20%. But every cycle is different, so it may as well have been.

Don’t get me wrong. I’m not calling a market top here. I’m just saying that the attention seems to spin in a wrong direction. Bitcoin’s worth in USD is as far from its value proposition as it can be.

1 BTC = 1 BTC. Let’s remember this if we’re truly here for it. Perhaps it’s just time to stick to what we all do best- work and build for this space instead of fixating on price.

Oh, and by the way: 

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Breaking news! Bitcoin dropped to a price not seen since 10 days ago. Bull market canceled.

I couldn’t have NOT said this.

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Ethereum Outperforms Bitcoin, Why ETH Could Rally To New ATH

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Ethereum started a fresh increase above $4,175 against the US Dollar. ETH could gain pace if there is a clear break above $4,300 in the near term.

  • Ethereum was able to climb above the $4,175 and $4,200 resistance levels.
  • The price is now trading above $4,200 and the 100 hourly simple moving average.
  • There is a major rising channel forming with support near $4,175 on the hourly chart of ETH/USD (data feed via Kraken).
  • The pair could extend its increase if it clears the $4,300 and $4,320 resistance levels.

Ethereum Price Could Rise Further

Ethereum started a fresh increase after it settled above the $4,050 level. ETH was able to clear the $4,750 resistance zone and the 100 hourly simple moving average.

Ether price even traded above the $4,250 resistance zone. A high was formed near $4,313 and the price is now consolidating gains. It traded below the $4,300 level. An immediate support is near the $4,260 level. The stated level is near the 23.6% Fib retracement level of the upward wave from the $4,091 swing low to $4,313 high.

There is also a major rising channel forming with support near $4,175 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $4,300 level.

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Ethereum Price
Source: ETHUSD on TradingView.com

The next major resistance is near the $4,320 level, above which the price might start a fresh rally. In the stated case, the price might rise towards the $4,400 level. Any more gains could lead the price towards the $4,550 level.

Dips Supported in ETH?

If ethereum fails to continue higher above the $4,300 and $4,320 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,260 level.

The first major support is near the $4,200 level. It is close to the 50% Fib retracement level of the upward wave from the $4,091 swing low to $4,313 high. The main support is near $4,175 and the channel trend line. Any more downsides could lead the price towards the $4,050 support. The next major support for the bulls is near the $4,000 level.

Technical Indicators

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Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now well above the 50 level.

Major Support Level – $4,175

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Major Resistance Level – $4,320

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Terra prepares to burn more than 9% of LUNA’s total supply

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Burning nearly 90 million LUNA tokens into the community pool can put an upward pressure on the native token’s price.

Do Kwon, co-founder and CEO of Terraform Labs, the South Korean company behind the blockchain project Terra (LUNA), recently announced on Twitter that on-chain voting for project 44’s proposal will begin on Wednesday. ).

The proposal to start burning 88,675,000 LUNA from the community pool to mint 3 – 4 billion UST will reduce the total supply of native token by more than 9%.

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TVL on Earth reached ATH

After the integration of the IBC protocol last week and the launch of Wormhole V2 support for Terra, the total blocked value (TVL) in protocols on the network has reached a new high.

Last week, TVL on Earth reached $10.22 billion, with the Anchor, Lido, Mirror and Terraswap protocols accounting for more than 90% of the amount, according to data from DeFi Llama.

Currently, at US$9.97 billion, Terra is ranked as the fourth blockchain with the largest TVL, following Ethereum, Binance Smart Chain and Solana.

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New Bitcoin ETF Offers Shorting Bitcoin Futures, Creators Warn of Multiple Risks

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Direxion has filed for a Bitcoin ETF that allows traders to short BTC futures contracts

According to an article by Bloomberg, a new Bitcoin ETF, if approved, will enable traders to short Bitcoin futures. The filing was submitted on Tuesday, Oct. 26.

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Direxion wants to launch Bitcoin futures ETF for short-sellers

Bloomberg has written that, on Oct. 26, Direxion submitted documentation to launch the Direxion Bitcoin Strategy Bear ETF. Last week, two ETFs that track the performance of Bitcoin futures were launched by ProShares and Valkyrie.

Now, the BTC futures ETF industry in the U.S. may reach a new milestone—if the launch of the ETF for bears is approved by the U.S. Securities and Exchange Commission.

The debut of Bitcoin futures products last week prompted Bitcoin growth to almost $67,000 and a new all-time high.

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However, today, the flagship cryptocurrency retreated below the $60,000 level as a mind-blowing half-a-million worth of liquidations were conducted across major exchanges: Binance, Bitfinex, OKEx, Huobi and so on.

Slightly over $500 million worth of those crypto liquidations were long positions.

BITO ETF gains $1 billion in just two days

ProShares Bitcoin ETF last week became the second-most-traded asset on the NYSE on its first day of trading. Buy orders to the tune of 10,100 were placed on BITO (the ticker the ETF goes by), and seven times more orders were placed to sell it.

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After trading for two days, BITO reached $1 billion in net asset value. That is the equivalent of the net asset value of several Canadian Bitcoin ETFs that have been trading for a while already.

Direxion fund bears lots of risks

The new Bitcoin ETF filed for by Direxion bears numerous financial risks for short-sellers, the company warns. Trading this ETF may lead to shorters getting wiped out, Bloomberg writes, and Bitcoin’s massive price swings would be a problem here, too.

The SEC filing states that if you are not prepared to lose all your funds by investing in this ETF, you should not bet on it.

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This week, some in the crypto community also expect another Bitcoin futures ETF to kick off—the one filed for by the VanEck asset manager.

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