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Bitcoin price analysis: BTC in head and shoulder movement at $44,784

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Bitcoin price analysis reveals that the king of cryptocurrency is emerging out of a head and shoulder pattern. The head and shoulder pattern is a bearish pattern, and if the pattern strikes, the king of cryptocurrency can fall further down towards the $44,200 range. During the last 24-hours, Bitcoin has fallen by 0.28 percent and by over 13 percent during the past seven days. Bearish signs are engulfing the charts since the 7th of September flash crash owing to a $3.7 billion liquidation. 

Bitcoin price analysis: BTC in head and shoulder movement at $44,784 1
BTC/USD price chart. Source Trading View

As evident from the chart, the king of cryptocurrency is either emerging out, which means the bearish trend has passed already. In that case, there is a smaller reverse head and shoulder pattern also in the making. Otherwise, the head and shoulder bearish strike is about to hit the king and take the price further down.

Bitcoin price analysis 1-day chart holding bearish sign

The one-day candlestick Bitcoin price analysis chart reveals bearish signs all over. The upper Bollinger band is serving as the strongest resistance point found at the $52,294 mark. The volatility has slightly increased compared to the 7th of September. The Bollinger bands’ average is posing resistance at the $47,989 mark. The nine-day moving average is posing resistance at the $47,201 mark.

Bitcoin price analysis: BTC in head and shoulder movement at $44,784 2
BTC/USD 1-day candlestick price chart. Source: Trading View

Both the Bollinger bands’ average and the nine-day Moving average are giving bearish signals. The lower Bollinger band average is found at $43,683, serving as the strong support mark. The relative strength index (RSI) is also giving off a neutral sign with a score of 43.65.

BTC/USD 4-hour price chart confirms bearish trend

The four-hour Bitcoin price analysis chart confirms the bearish struggle the king of cryptocurrency is currently going through. The volatility has decreased on the 4-hour chart, which shows a good sign. The upper Bollinger band is found at the top resistance point of $46,662, while the lower band is available at $44,418.

Bitcoin price analysis: BTC in head and shoulder movement at $44,784 3
BTC/USD 4-hour candlestick price chart. Source: Trading View

The Bollinger bands’ average and the nine-day moving average are still giving bearish crossovers at the values of $45,540 and $45,442, respectively. The RSI is also giving neutral signals slightly leaning towards the bearish side with a score of 35.37.

Bitcoin price analysis conclusion

If the current Bitcoin price movement completes the head and shoulder pattern, a blowback to the $44,200 mark is expected. However, if the damage is already done, the short inverse head and shoulder can push the price back up to the $45,000 mark. If the current support tallies, the price is likely to hit a slightly better high, moving into gains instead of losses on the charts. If the current support falters, the king can drop further down in that scenario as well.

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VanEck Filed for Digital Assets Mining ETF

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Global investment manager VanEck, with more than $60 billion assets under management, has filed an application to establish an exchange-traded fund that will track the price and yield performance of the Global Digital Asset Mining index.

Fund’s investment principles

The Global Digital Asset Mining index is being used to track the performance of companies that are somehow engaged in digital assets mining activities, including Bitcoin or altcoin mining operations. Additionally, companies that provide various services like software development, as well as hardware suppliers, also fall into the category of mining operations providers.

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The fund will invest at least 80% of its total assets in securities in the DAMC but, at the same time, the company is not allowed to invest in digital assets by using derivatives products like options or futures. Hence, the fund is not going to track the price movement of any cryptocurrency.

The VanEck ETF will be able to provide exposure to companies that are in fact operating with digital assets or holding them on their balance sheet and are also being presented in the Global Digital Assets Mining index.

Risks for investors

The application also contains a section related to the risks behind the digital assets mining industry. According to the filing, the main risks for investors are technological obsolescence, supply chain issues and certain issues with obtaining new hardware.

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Additionally, the fund agrees that most digital assets mining companies are exposed to the issue of relying on third-party companies that are located and functioning overseas.

Bitcoin Daily Chart
Source: TradingView

In addition to risks tied to hardware wearing, digital assets miners generate revenue from selling their assets on various cryptocurrency exchanges, and the price of their assets is a subject of high volatility that could lead to the value loss of their holdings.

While most cryptocurrency miners remain in high profit from their operations, rapid change of assets like Bitcoin may potentially lead to additional losses of those companies and, therefore, losses for investors that receive direct exposure to the aforementioned index.

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Bitcoin Senator Rallies For Support Against Powell’s Renomination As Federal Reserve Chair, Here’s Why

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Popular Bitcoin Senator, Senator Cynthia Lummis is reportedly soliciting for the support of her fellow Republicans in her stance against Jay Powell after the latter got renominated to chair the Federal Reserve.

Bitcoin Senator Wary of Crypto-unfriendly Nominees

As reported by Decrypt who first broke the news, a source in Lummis’ office says her reasons border on her belief that there is an unlawful treatment of crypto-based institutions in her home state, Wyoming.

Meanwhile, the Bitcoin senator is not only against the nomination of Powell. The source still claims that Senator Lummis is also asking her Republican colleagues to help block Leal Brainard’s nomination as well. Brainard is another nominee of President Biden’s for the Fed positions.

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Lummis’ skepticism might be as a result of the Special Purpose Depository Institutions or SPDIs as they are otherwise called. They are a new type of crypto-based bank that Wyoming lawmakers granted a special operational license to, just last year.

Two crypto-based companies that received the license in 2020 include Kraken exchange and Avanti — the stablecoin issuer. However, the Federal Reserve’s decision to not approve their applications for central bank-issued accounts has placed a hold on their banking ambitions.

Speaking about the Federal Reserve’s delay in a Wall Street Journal feature article by Lummis on Wednesday, she says it is an intentional and unlawful obstruction. She added that the Fed’s reasons are ambiguous at best. According to the Bitcoin Senator, Lummis claimed that the Wyoming entities have met all requirements for being a bank under the Federal Reserve Act.

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Lummis insists that Powell and Brainard are only avoiding their legal obligations in their continued treatment of SPDIs and like many other U.S lawmakers, she wants to know why.

Could Lummis’ Pressure Affect Powell’s Confirmation?

As Lummis continues to apply even more pressure on her colleagues, the possible extent to which this pressure can truly go in affecting the confirmation process of both Powell and Brainard, remains to be seen.

But with the chair of the Senate Banking Committee, Sherrod Brown, reportedly holding a vote on the pair sometime this month, both of them could be confirmed.

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Also, there’s a possibility of a potential tight vote now that some progressive Democrats — most notably Elizabeth Warren — are saying they will not be voting for Powell.

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PlanB’s Floor Model First Miss: Bitcoin Price Closed Way Below $98K In November

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PlanB’s floor model was wrong about BTC’s November closing price. The stock-to-flow model, though, is still on track.

Bitcoin’s closing price for November below $60,000 meant that PlanB’s floor model, which was particularly accurate until now, was finally broken.

At the same time, though, the analyst confirmed that the more popular stock-to-flow model was still valid as BTC is on track towards $100,000.

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PlanB’s Floor Model Fails

PlanB is among the most popular analysts in the cryptocurrency space, predominantly known for the Bitcoin stock-to-flow model, which he published in early 2019. However, he also posted another model, which he referred to as the “worst-case scenario,” in July this year.

Also known as the floor model, it’s based on technical aspects, such as the 200-day moving average, and saw BTC closing August at $47,000, September at $43,000, and October at $63,000.

The first two months were spot on. BTC closed in October at $61,000, which was still very near to the model’s predicted price, and PlanB said it was “good enough” for him.

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However, November’s closing actual closing price of way below $60,000 was quite different from what the model envisioned – $98,000. As such, the analyst admitted that this was the model’s first miss after nailing the previous few months.

S2F on Track

As mentioned above, the floor model works separately from the stock-to-flow model, which sees the stock as the size of existing reserves (or stockpiles) and the flow as the annual supply of new bitcoins to the market.

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It’s actually even more bullish as the original version sees bitcoin tapping $100,000 by the end of the year. The upgraded stock-to-flow cross-asset model, which introduced different phases of bitcoin’s development, predicted a price tag of $288,000 until 2024.

Although bitcoin still struggles below $60,000 at the time of this writing, PlanB believes that the original S2F hasn’t been broken as the asset is on its way towards $100,000. If BTC is indeed to go into a six-digit price territory, it would have to increase its USD value by more than 66% in the next 30 days.

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