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Bitcoin (BTC) sheds 5% to slip below $40K but analyst sees asset reaching $90K-$120K in the next 6 months

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  • Bitcoin (BTC) has at the start of the week shed around 5 percent of its value, slipping below 40K and wiping out its weekend gains.
  • Market analysts CryptoBirb notes that given the recent trend, BTC can push to the $90K to $120K price level in the next 6 months an outlook that is supported by the accumulation pattern witnessed from long term investors and Bitcoin miners.

Bitcoin (BTC) after a strong start to the month has wiped out its weekend gains. After initially climbing as high as $42,000 during the weekend, the asset has at the start of the week shed 5 percent of its gains falling just below $40,000. According to our data, Bitcoin is exchanging for $39,500. The crypto king has dragged with it the wider market which has seen a nearly 4 percent drop in the last 24 hours.

One of the reasons blamed for the drop is the recent infrastructure bill that seeks to get $28 billion from the crypto industry. The bill has drawn great controversy with market leaders like Cardano’s Charles Hoskinson warning that it could negatively affect the wider industry.

Market analysts are despite the recent drop unwaved by the price action. Several pointers still indicate that Bitcoin is still on a positive path. One of these is the continued accumulation pattern witnessed among Bitcoin miners and long term investors.

Data from CryptoQuant has in particular shown that miners are consolidating, a sign that they are anticipating a positive move. Data represented by Miners’ Position Index (MPI) reading from the firm shows that close to two months now, miners have been accumulating. The most recent reading is -0.67 with a reading of 2 generally representing active selling from the miners.

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Last week, Santiment highlighted record levels of Bitcoin outflows from exchanges. Historically, this has signalled optimism across the market with investors choosing to hold their assets in private wallets until a time when they need to sell to which the market witnesses increased inflows in exchanges.

With the miners joining long term investors in accumulating, this is set to trigger a shortage and boost demand. In the past, this has led to prices increases.

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Bitcoin (BTC) to climb above $90K in 6 months

With some of the most influential players in the market accumulating, some experts are fairly confident that Bitcoin will not only retest the recently established all-time high of $65K but will go on to surpass this. According to market analyst CryptoBirb, Bitcoin is likely to climb as high as between $90K and $120K over the next 6 months.

This prediction aligns with others from a majority of top analysts who have suggested that the digital asset will reach a new high of $100K by the end of the year.

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Bitcoin extends correction as Ethereum sees ‘picture perfect’ rejection at all-time highs

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Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.

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BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

ETH all-time high? Blink and you’ll miss it

Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.

Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.

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Trader and analyst Rekt Capital called the event a “picture perfect rejection.”

At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.

ETH

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July. 

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Bitcoin could see “additional topside euphoria”

Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.

Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April. 

Chart

Bitcoin funding rates chart. Source: Bybt

As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.

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“This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market,” crypto trading firm QCP Capital commented in its latest market update.

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Bitcoin Forecast and Analysis BTC/USD October 22, 2021

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BTC/USD are trading at 64619 and continue to move as part of the correction and the bullish channel. Bitcoin cryptocurrency capitalization at the time of the publication of the forecast is $1,194,342,792,891. Moving averages indicate a short-term bullish trend for Bitcoin. Prices went up from the area between the signal lines up, which indicates pressure from buyers of ”Digital Gold” and a potential continuation of the rise in the value of the asset already from the current levels. As part of the cryptocurrency rate forecast for tomorrow, October 22, 2021, we should expect an attempt to develop a decrease in the value of a digital asset and a test of the support level near the 57505 area. Where again should we expect a rebound and an attempt to raise the Bitcoin rate with a target above the 74055 area.

Bitcoin Forecast and Analysis BTC/USD October 22, 2021

An additional signal in favor of the growth of BTC/USD quotes will be a test of the rising trend line on the relative strength index (RSI). The second signal in favor of this option will be a rebound from the lower border of the bullish channel. Cancellation of the growth rate and value of Bitcoin will be a fall in the value of the asset and a breakdown of the area of ​​52205. This will indicate a breakdown of the support area and a continuation of the fall in the Bitcoin rate with a potential target at 42055. Confirmation of the rise in the price of the asset will be a breakdown of the resistance area with the price fixing above the level of 69205.

Bitcoin Forecast and Analysis BTC/USD October 22, 2021

Bitcoin Forecast and Analysis BTC/USD October 22, 2021 suggests an attempt to test the support level near the 57505 area. And further, the cryptocurrency will continue to grow with a potential target at 74055. An additional signal in favor of the Bitcoin rate rise will be a test of the support line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be a fall and a breakdown of the 52205 area. This will indicate a continued fall with a potential target below the 42055 area.

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Bitcoin Price Flash Crashes for Second Time in a Month in the US

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The price of bitcoin (BTC) on Binance.US, the US-based exchange affiliated with Binance, briefly crashed to as low as USD 8,200 today – a drop of 87% – before recovering again. The crash marks the second time in a month when bitcoin prices in the US have briefly disconnected from the rest of the world. 

Today’s flash crash, which was one of the most significant on a major exchange in bitcoin’s history, all happened within less than 1 minute, the BTC/USD price chart from Binance.US showed. 

Although the flash crash was all over within a minute, the trading volume showed that a significant number of coins did change hands during the crash, indicating that some traders may have been able to fill orders for bitcoin at extremely low prices.

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BTC/USD on Binance.US. Source: TradingView

Flash crashes can happen when large market sell orders are sent to exchanges without sufficient liquidity on its order books, for instance, because a large trader accidentally placed the order as a market order instead of a limit order.

Today’s flash crash on Binance’s US exchange is the second such incident in a month in the US. On September 20, a data feed for crypto prices called Pyth that is used by some of the largest financial institutions on Wall Street showed a 90% crash in the price of bitcoin.

The feed briefly showed bitcoin at a price of USD 5,402. However, a similar price crash was nowhere else to be seen. Two days later, in a report about the incident, Pyth concluded that the abnormally low price was indeed a technical glitch, “caused by the combination of (1) two different Pyth publishers publishing a near-zero price for BTC/USD and (2) the aggregation logic overweighting these publishers’ contributions.”

Discussing today’s incident on Twitter, many traders complained about being forced by US regulations to use exchanges such as Binance.US, which has thin order books and low liquidity compared to the international version of the exchange.

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No statement has yet been made from Binance or Binance US regarding today’s flash crash.

At 16:11 UTC, BTC trades at USD 63,180 and is down by almost 6% in a day, trimming its weekly gains to 10%.

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