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TO $53,000 AS WALL STREET GAINS HURT APPEAL; WHAT’S NEXT?

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Bitcoin fell towards $53,000 on Tuesday as US stocks rallied, breaking away its tradition of tailing riskier assets even as bond yields and the US dollar dipped.

The benchmark cryptocurrency was down 1.13 percent to $53,500 per token ahead of the L0ndon opening bell. Bitcoin futures on the Chicago Mercantile Exchange dropped by more than 4 percent to $53,475 around 0600 UTC. At its intraday low, Bitcoin was trading at 53,000.

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“It’s a due trip to oversold,” said Scott Melker, an independent analyst associated with the Wolf Den Newsletter, referring to Bitcoin’s relative strength indicator (RSI) that earlier alerted about its technically overbought status. An RSI reading above 70 typically leads to a neutralizing downside correction.

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Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin RSI nears oversold area. Source: BTCUSD on TradingView.com

BITCOIN AND RIVAL MARKETS

Simultaneously, Bitcoin’s latest decline largely coincided with a renewed demand for the US dollar against the Turkish Lira’s crash on Monday. The cryptocurrency typically reacts inversely to the greenback’s trends. The US dollar index was firm in the previous session but rose 0.15 percent on Tuesday.

Bitcoin further lost appeal as investors’ focus shifted towards Wall Street, with the tech-heavy Nasdaq Composite gaining 1.2 percent by the market close in New York. The benchmark S&P 500 rose 0.7 percent at the same time. Bitcoin was earlier trading in tandem with tech stocks.

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Meanwhile, the US Treasuries pared losses, sending the 10-year note yield lower to 1.699 percent after briefly trading above 1.75 percent last week.

Global stock rally halted on Tuesday, with Asian markets falling alongside the US and the European futures on the US-China relation worries and harsher coronavirus lockdowns in Germany. Gold plunged in tandem.

SCOPE FOR FURTHER DOWNSIDE CORRECTION?

Fundamentals favor Bitcoin bulls. The cryptocurrency expects to rebound as the global central banks continue their loose monetary policies to support their economies battered by the coronavirus pandemic’s aftermath. Last week, the Federal Reserve said it would keep its interest rates near zero while buying government and corporate debts at the pace of $120 billion per month.

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Meanwhile, Joe Biden’s $1.9 trillion stimulus packages kept the US dollar under pressure due to its oversupplied nature. The US president also reportedly got in touch with his top advisers about a $3 trillion government spending plan, risking to lift the country’s debt-to-GDP ratio further above a whopping 98 percent.

At the same time, the European Central Bank stepped up the pace of its bond-buying program to its highest level in more than three months. It bought €21.1 billion of bonds in the week ending March 17 — up from €14 billion in the previous week — to counter the latest sell-off in eurozone debt markets.

Bitcoin expects to do well against loose monetary policymaking. Investors looking for higher returns step away from lower-yielding bond markets and inflation-stuck fiat currencies to seek safety in the cryptocurrency. The BTC/USD has surged about 1,500 percent amid a globally dovish environment.

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Nevertheless, technically,  the pair could decline further while retaining its overall bullish bias.

Bitcoin is breaking out of a Rising Wedge pattern. Source: BTCUSD on TradingView.com.

BTC/USD slipped below its 20-day exponential moving average on Monday, which alerted bulls about a potential extended sell-off towards its 50-day simple moving average, now sitting around the $50,000 level. At the same time, the pair’s decline appeared like a negative breakout move from a Rising Wedge, a bearish reversal pattern.

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That risked sending BTC/USD down by as much as the Wedge’s maximum height. The downside target, therefore, is near $41,000.

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Bitcoin

The Cycle Started, Mike Novogratz Says – Bitcoin Boom Is Here; Jack Dorsey Boosts BTC’s Price

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Mike Novogratz is one of the essential names in the crypto space which is celebrating the booming price of Bitcoin.

Check out what he had to share with his followers and Twitter fans:

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Someone hopped in the comments section and said this; ‘Anyone who has not yet embarked on the crypto band wagon is a simple minded idiot who knows nothing about markets, freedom or wealth creation.’

Jack Dorsey boosts the price of BTC

It’s been also revealed that Jack Dorse said that Square could build a BTC mining system – this obviously triggered a more massive price race for the king coin.

At the moment of writing this article, BTC is trading in the green and the king coin is priced at $61,118.15.

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CNBC online publication just noted that Square CEO Jack Dorsey said late on Friday the company is considering jumping into BTC mining business.

Dorsey tweeted that the company is considering a “bitcoin mining system based on custom silicon and open source for individuals and businesses worldwide.”

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Dorsey’s goal would be to make crypto mining more accessible. We suggest that you check out the complete thread that Dorsey shared on his social media account in order to learn all the available details.

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Pantera Capital’s Dan Morehead: Bitcoin (BTC) Already Up 100% in This Bull Run

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How big is median increase in Bitcoin (BTC) price in bullish market phases?

As Bitcoin (BTC) reclaims $62,000 level, Dan Morehead, CEO of the first-ever cryptocurrency-focused VC firm in the U.S., shares the comprehensive statistics of the last six bull runs for Bitcoin.

Bitcoin (BTC) price doubled in 87 days: Bull Run 2021

According to the latest tweet by Mr. Morehead, the Bitcoin (BTC) price witnessed a 2x increase in the first 87 days of the ongoing bullish wave.

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Unlike many other experts, Mr. Morehead identifies two separate “bull run” phases in 2020-2021. During the previous one, between March 16, 2020, and April 14, 2021, it took 394 days for Bitcoin (BTC) to increase its price 13x and print a new all-time high.

According to his infographic, the most impressive rally ended with a 106x increase of the orange coin’s price in 2015-2017.

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That said, the median Bitcoin (BTC) price bull run lasted for 300 days and increased the “king coin’s price” by 15x.

Will Bitcoin ETF mark the top of the BTC cycle?

At the same time, according to “The Next Price Era” letter issued by Pantera Capital on Oct. 6, 2021, the hotly-anticipated approval of Bitcoin (BTC) ETFs is listed amidst the possible “sell the news” events.

Mr. Morehead noticed that the launch of CME Bitcoin Futures and Coinbase direct listing triggered painful bear markets:

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Will someone please remind the day before the bitcoin ETF officially launches?  I might want to take some chips off the table.

As covered by U.Today previously, similar statements were made by CNBC’s Jim Cramer.

The seasoned analyst also revealed his plans to “cash out” 50% of his Ethereum (ETH) bags.

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Bitcoin Will Significantly Underperform Altcoin Market As New Crypto Price Era Unfolds: Pantera Capital’s Dan Morehead

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The founder and chief executive officer of Pantera Capital says that investors can expect altcoins to outperform Bitcoin (BTC) in the long term.

In a recent edition of Pantera’s Blockchain Letter, the head of the digital asset management firm outlines Dan Morehead’s key quotes from the SALT 2021 conference in New York. During the conference, Morehead said that even though his company has greatly profited from BTC, he emphasized that most future crypto gains will come from altcoin investments.ADVERTISEMENT

“My perspective is: Bitcoin has been amazing – Pantera Bitcoin Fund is up 67,000% since inception. However, I think the majority of future gains will be from tokens outside of Bitcoin. I know that sounds heretical to some people here, but that’s my professional opinion.”

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Morehead compares the rise of Bitcoin and its competitors to that of the tech industry boom during the late 1990s.

“It’s like saying in 1998 that [the] majority of future tech gains would come from outside Microsoft.

At the time, Microsoft was worth $218 billion, Apple $3.5 billion, Amazon was $2.2 billion. Google and Facebook were zero – they didn’t even exist. In the years since Microsoft did great – it went up 10x. However, 80% of the tech gains in these five stocks came from outside Microsoft.

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That’s the view I have here – I think BTC is going to go up a ton – like 10x. It’s a great investment…[but] I think the broader portfolio is going to outperform.”

At time of writing, BTC has a market cap of $1.156 trillion while all altcoins combined have a market cap of $1.327 trillion, according to CoinMarketCap.

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