Connect with us

Bitcoin

Bitcoin price weekly outlook: BTC bulls await breakout above 50-day EMA

Published

on

A four-day winning streak brought the Bitcoin (BTC) prices closer to testing its 50-day exponential moving average (~$35,115) as resistance.

The wave, which was instrumental in strengthening Bitcoin’s bullish bias across 2020 as support, flipped to become a resistance during the May 2021 sell-off. In doing so, it capped the cryptocurrency from extending its upside rebound moves many times.

For instance, Bitcoin’s drop from $56,900 to $30,000 in mid-May prompted bulls to buy the dip. As a result, the cryptocurrency shot back above $40,000 but found its bullish momentum exhausting right near the 50-day EMA. The scenario repeated multiple times after May’s retracement attempt, as shown in the chart below.

Advertisement
Bitcoin’s 50-day EMA as resistance. Source: TradingView.com

Rekt Capital, a well-known cryptocurrency analyst, turned to a 2020 fractal to determine potential outcomes from the ongoing Bitcoin price action.

The trader noted that Bitcoin price tested the 50-day EMA as resistance in October last year when the BTC/USD pair was trading shy of $10,000. But after breaking the wave to the upside, BTC/USD eventually established a record high near $65,000.

Bitcoin 50-day EMA fractals. Source: Rekt Capital, TradingView.com

“This [was] when BTC formed an almost identical fractal of Bitcoin’s current price action,” the profile noted, hinting that the fractal might repeat as Bitcoin tests the same resistance level after nine months.

This week

Bitcoin closed in to reclaim 50-day EMA after painting a rosy week.

The benchmark cryptocurrency was off to end the seven-day session up by more than 8%. A majority of its gains came after The B-Word conference that features a trio of Wall Street biggies— Tesla’s CEO Elon Musk, Twitter’s CEO Jack Dorsey, and Ark Invest’s founder Cathie Wood. The executives took turns to speak favorably about Bitcoin technology and shared their thoughts about the future.

Advertisement

Musk, whose comments on cryptocurrencies are notorious for moving markets, revealed that his private rocket company SpaceX holds Bitcoin. He also added that Tesla would resume its Bitcoin payment option once its miners switch to more renewable energy sources to operate its blockchain.

Dollar, stocks and the Fed

Bitcoin also appeared to have capitalized on risk-on flows led by a choppy U.S. dollar index and a rising Wall Street.

Bitcoin versus leading Wall Street indexes and the Us dollar index. Source: TradingView.com

Next week appears busy with high-profile data and policy-statement releases.

On Tuesday, the U.S. Conference Board will publish the Consumer Confidence Index for July. In addition, a preliminary Consumer Sentiment Index report from the University of Michigan shows a negative change in consumer sentiment. The report also professes fears of a sharp rise in inflation.

Advertisement

As of late, inflationary pressures have boosted the dollar’s appeal among investors. This has sapped Bitcoin’s interim bullish outlook despite the cryptocurrency’s popular safe-haven narrative.

On Wednesday, the Federal Open Market Committee (FOMC) will announce its decision on interest rates and publish its monetary policy statement.

Jerome Powell, the chairman of the Federal Reserve, said in congressional testimony earlier this month that they are still away from tapering their $120B a month bond-buying program. He commented that a decision on scaling back the Fed’s asset purchases would come only upon seeing a substantial improvement in the labor market.

Advertisement

However, the U.S. central bank officials expect to discuss whether they could start tapering by the end of this year. In detail, a hawkish shift in the Fed policy in June was partially responsible for pushing Bitcoin prices lower and the dollar higher. Therefore, Bitcoin bulls would expect to remain cautious about the potential outcome of the FOMC meeting.

On the other hand, if the Fed decides to sleep on the tapering talk, given the rising economic uncertainties led by the fast-spreading Delta variant of the Covid-19, it could hamper the dollar’s appeal and, in turn, provide a certain degree of upside boost to Bitcoin.

On Thursday, the U.S.  Bureau of Economic Analysis will release its gross domestic product’s growth estimate for the second quarter. Economists expect it to improve to 7.9% year-over-year from 6.4%.

Finally, the US economy docket will feature the Personal Consumption Expenditures (PCE), the Fed’s preferred metric to measure inflation, on Friday; it is expected to rise 3.7% in July from 3.4% in June.

Advertisement

News Source

Bitcoin

Bitcoin Drops as China Declares Crypto-Businesses Illegal

Published

on

  • China declared that cryptocurrency-related businesses are illegal
  • Bitcoin, Ether, and stablecoin Tether do not qualify as legal tender in China
  • BTC drops in price as the announcement went out

Once again, China reiterated its antagonistic stance on Bitcoin and the cryptocurrency industry as a whole.

In an announcement, the People’s Bank of China (PBOC) mentioned that BTC, ETH, and USDT are not legal tenders in China. They added that these cannot be used in the currency market.

Additionally, the central bank deemed all crypto-related businesses as illegal. This includes overseas exchanges serving residents within China and derivative transactions.

Following the news, Bitcoin’s price fell by almost $2,000 as the news circulated. This has been a common pattern whenever China FUD comes out.

Advertisement

Earlier, China also reiterated its stance on crypto trading and mining while testing the Digital Yuan. According to the PBOC, it will continue releasing regulatory pressure over the crypto trading industry.

Despite the negative news, many analysts remain bullish on Bitcoin and the cryptocurrency industry as a whole. According to analyst Lark Davis, this is not new and will happen again in the future.

In a tweet, Davis mentioned that “The year is 2025, #bitcoin has just corrected from 400k to 250k on China banning BTC fears.”

Advertisement
Continue Reading

Bitcoin

Can Bitcoin Surpass $6,000,000? Ethereum and Polkadot Creator Details Possible Future of Crypto

Published

on

Early Bitcoin developer and co-founder of Ethereum and Polkadot, Gavin Andresen, is outlining a future where BTC rises to a staggering $6,000,000 per coin.

Gavin Andresen, who took over as Bitcoin’s lead maintainer from founder Satoshi Nakamoto in 2011, just published a new blog post detailing how BTC’s theoretical evolution could look.

Andresen describes a “possible” scenario where Bitcoin hits a price tag of $6,000,000 by 2061, transaction fees 326x higher than they are now, and the blockchain is used chiefly by whales.

Advertisement

“Imagine: it is the year 2061. The BTC price is six million US dollars – equal to about a million 2021 dollars because of inflation.

Miners are being rewarded 0.006103515625 BTC per block, plus transaction fees of about 5 BTC for 4,000 or so transactions ($7,500 per transaction).

But most BTC transactions don’t happen on the BTC network. Most BTC is locked up in multi-signature outputs secured using multiparty computation and mirrored on another chain as ‘wrapped’ tokens.”

Advertisement

In his scifi scenario, Andresen says those who do remain on Bitcoin’s network will be incentivized to keep it alive.

“The transactions that do occur on the main BTC network are high-value, mostly between super-whale-size holders…

These whales maintain the BTC network forever. They are the miners and the transaction creators; they don’t care how high transaction fees go, because they receive as many fees as they pay.”

Advertisement

However, Andresen says that by 2100, even those users would likely leave the blockchain.

“In the year 2100 the whales notice that the mining reward is basically zero… Eventually, there are zero new BTC being produced on the BTC network, and zero BTC circulating on the BTC network. There is nothing left to secure, and the chain stops.”

News Source

Advertisement
Continue Reading

Bitcoin

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Published

on

Top Analyst Maps Bitcoin and Cardano Price Trajectories, Warns Best Entry Point for ADA May Be Gone

Crypto trader Michaël van de Poppe is looking at what’s ahead for Bitcoin (BTC) and the smart contract platform Cardano (ADA).

The analyst tells his 420,000 Twitter followers that the best entry point for Cardano may be gone after the asset bounced off a key support level at $1.86.

Advertisement

“If you want to get into Cardano, this was the region where you would want to get into it, and the higher low that might be created.

So based on the daily timeframe, the best entry might be gone, but you’re still getting a better entry than the ones who have been buying around $2.80.”

Van de Poppe is now looking to see if ADA can turn resistance at the $2.37 level into support.

Advertisement

If the markets correct further, he is keeping an eye on the $2.15 level as a potential buy zone.

“When you’re looking at the four-hour time frame, I think you’re getting the exact same view as what you have right now on Bitcoin and [Ethereum], actually. So you’re going to look for an entry point which is around the fact of $2.15, so anything in this region might be a good entry point if we get a corrective move.”

Looking at the Bitcoin pair, van de Poppe thinks that ADA will most likely consolidate briefly after retesting support at its previous all-time high.

Advertisement

“We can see that we’ve had a beautiful retest of the previous high here too, and therefore some consolidation is most likely going to take place before we’re going to have new impulse waves.

So both the USDT and BTC pair are looking for continuation, and I think that’s just great, and I think that’s just what we want to see with the markets right now.”

News Source

Advertisement
Continue Reading

Trending