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$46,000 BITCOIN EMERGE ON DOUBLE TOP BREAKDOWN WOES

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Bitcoin bulls should prepare for a shock as a confluence of technical indicators readies to send the cryptocurrency price to $46,000.

According to independent market analyst Jonny Moe, the BTC/USD exchange rate risks declining to the said level as it declines below the price floors of two classic technical patterns: Double Top and Descending Triangle. That raised its probability of extending its bearish correction based on how traders interpret classical technical indicators.

BEARISH CONFLUENCE

In retrospect, Bitcoin confirmed a double top pattern after reaching a high two consecutive times with a moderate decline between the two peaks. Its decline below the double top neckline level pointed towards further potential sell-offs, with the price target situated as far as the double top’s height.

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That roughly put Bitcoin en route to $46,000, said Mr. Moe.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin watches $46,000 as its primary downside target after confirming double top formation. Source: BTCUSD on TradingView.com

Meanwhile, Bitcoin showed signs of breaking out of a Descending Triangle pattern. The cryptocurrency’s plunge below the structure’s lower trendline on Wednesday altered Mr. Moe about a confluence bearish signal alongside the Double Top indicator. He noted that traders could perceive Triangle breakout as an additional cue to prepare their positions towards $46,000.

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“Call it a double top, call it a descending triangle, but either way, still targeting $46k region on a breakdown,” the analyst said, adding:

“We broke down out of the double top, but we’ve caught at least some initial support at the $52k horizontal level. Gonna take my own advice and step back to see how we react. Shorts closed for now; back to flat.”

MORE DOWNSIDE CALLS FOR BITCOIN

The downside risks in the Bitcoin market also appeared from a potential falling wedge, a bullish reversal pattern but currently in the middle of its formation. Market analyst Vince Prince spotted the structure in his Wednesday analyst, noting that bitcoin could head towards the point at where the Wedge’s upper and lower trendlines converge.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin levels to watch, as highlighted by analyst Vince Prince. Source: BTCUSD on TradingView.com

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The point of trendlines convergence sits inside the $50,000-51,000 area. Bitcoin expects to fall inside it before it attempts a bullish breakout. Meanwhile, any further declines for the cryptocurrency would have traders watch the same $46,000-area as the next downside target.

“Now, this does not mean Bitcoin is completely bearish,” added Mr. Prince. ‘It will be important on how the cryptocurrency approaches the lower supports and how it manages a potential bounce from there. When this bounce can sustain strong enough, it can lead to further stabilization and also a potential reversal.”

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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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s are now selling ‘way more’ US Dollars to buy Bitcoin

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El Salvador’s mainstream Bitcoin (BTC) adoption gains momentum during the ongoing bull run as citizens increasingly exchange their United States dollar savings for Bitcoin. 

President Nayib Bukele shared this new development on Twitter based on the data acquired from El Salvador’s in-house wallet service, Chivo. President Bukele said:

“People are inserting way more USD (to buy #BTC) than what they are withdrawing from the Chivo ATMs.”

He also urged media outlets to independently confirm the above information by visiting the ATMs. President Bukele further stated that Chivo has reported 24,076 remittance requests “adding up to $3,069,761.05 in one day.”

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The increase in USD to Bitcoin conversions within the jurisdiction reflects a change in investor sentiment, which initially faced resistance during adoption from the general public. Moreover, the Salvadorean government offers various subsidies for using Bitcoin such as fuel subsidies and tax exemptions. 

El Salvador has installed over 200 ATMs after adopting Bitcoin as a legal tender, making it the third-largest network of crypto ATMs after the United States and Canada.

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A Cointelegraph report shows that El Salvador exceeded United Kingdom’s crypto ATM count after deploying 205 crypto ATMs, mainly to facilitate local Bitcoin transactions and Bitcoin to U.S. dollars conversions.

Recently, the Salvadorean government announced to build a $4 million veterinary hospital using the profits attained during the Bitcoin bull market. According to President Bukele, the veterinary hospital will host four operating rooms, four emergency clinics, 19 offices, and a rehabilitation area: “We decided to invest a part of that money in this: a veterinary hospital for our furry friends.”

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