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Bitcoin Price

PayPal Co-Founder Says Bitcoin Price Points To Crisis In The Economy

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PayPal co-founder Peter Thiel has said that the bitcoin price points to an ongoing crisis in the economy. Thiel expressed that the price of bitcoin hitting $60,000 is an indicator of this crisis. Mainly, Thiel says, this has been due to the staggering inflation rates that the country has been experiencing following the pandemic.

The Fed had been accused of printing money recklessly during this time without measures in place to affect the inflation it triggered and as such, has pushed investors to more unconventional investment options to hedge for this inflation.

This lines up with general sentiment towards the financial markets. Goldman Sachs analysts also pointed to growing inflation as a reason behind the growth of cryptocurrencies, revealing that they expected the price of Ethereum to surge a further 80% if the inflation line continues on its current course.

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Calling Out The Fed

Thiel was present at the second National Conservatism Conference where he expressed displeasure at the way the Fed has been approaching rising inflation in the country. He pointed out that the Federal Reserve is not paying attention to the seriousness of inflation rates in the country and as such, has not taken any steps to address this issue.

Bitcoin price chart from TradingView.com
BTC price settles above $63K | source: BTCUSD on TradingView.com

The billionaire further criticized the actions of the Fed by saying it was in a state of “epistemic closure,” A term that refers to close-mindedness. Thiel expressed strong displeasure at the rate at which the Fed continues to print dollars, a problem which has been pointed out by many in the financial sectors. Unscrupulous printing of dollars will inadvertently lead to further inflation and damage the economy but all warnings seem to have fallen on deaf ears.

Thiel shared that growing inflation has factored into bitcoin’s success thus far and could see the digital asset continue its rally. However, the billionaire asked investors to exercise caution when investing in the asset. “$60,000 Bitcoin, I’m not sure that one should aggressively buy,” said Thiel. “But surely, what it is telling us is that we are having a crisis moment.”

Bitcoin Versus The Economy

The state of the economy has been a growing concern in financial markets recently. COVID had seen economies around the world weather some massive hits and the U.S. was not spared in the onslaught. The inflation rate is concerning for investors. However, the leaders do not see a cause for alarm at this point.

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U.S. Treasury Secretary Janet Yellen assured the populace that there was nothing to worry about at a press conference in Ireland. But citizens are not buying it and have looked for ways to hedge against inflation which they believe will only continue to rise.

This is where bitcoin has entered the picture. Returns on bitcoin year-over-year have surpassed that of traditional financial markets consistently, making it an adequate hedge for inflation. With over 200% returns each year, investors with money in BTC can safely avoid the impact of inflation on their assets, which currently sits at 5.4% for the past year.

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Bitcoin Price

Bitcoin Price Flash Crashed to $28.8K on Huobi: Over $2.5B Total Liquidations in 24 Hours

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While bitcoin dumped to $42,000 on most exchanges, Huobi saw a more substantial drop as BTC went below $30,000.

A flash crash transpired on Huobi as BTC went all the way down to $28,800 before recovering just as sharply. At the same time, the liquidations are well above $2.5 trillion on a daily scale as the entire market is deep in the red.

  • As reported earlier, bitcoin, and the entire cryptocurrency market, went through one of its worst crashes in recent history. BTC plummeted by $16,000 in a day from around $58,000 to an intraday low of $42,000 on Bitstamp and most exchanges.
  • However, other trading venues saw even more dramatic price drops. Such was the case with the BTC/USDC trading pair on Huobi, where bitcoin dropped all the way down to $28,801, as the picture below shows.
BTC/USDC on Huobi. Source: TradingView
BTC/USDC on Huobi. Source: TradingView
  • Such events are known as flash crashes, in which the price of the underlying asset drops significantly lower on one (or more) exchanges compared to most and recovers immediately.
  • As it happened in previous times that CryptoPotato reported, the price of BTC recovered just as quickly as it fell.
  • Separately, the aforementioned market dump, which caused massive double-digit price nosedives for almost all coins, resulted in severe pain for leveraged traders.
  • According to data from CoinGlass (formerly known as Bybt), the total liquidations are above $2.5 billion on a daily scale. In the past 4 hours alone, the liquidations are over $1.5 billion.
  • The number of traders liquidated is just shy of 400,000, and the largest single liquidation order was worth $28 million and transpired on Bitfinex.
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Bitcoin Price

Bitcoin price analysis: Bitcoin hits lowest since mid-Oct, breaks below $50k; falling to $47k range

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  • Bitcoin price analysis is bearish today.
  • BTC has fallen below the psychological mark of $50k.
  • Bitcoin continues to look for support.

The Bitcoin price analysis report reveals a dramatic bearish situation as the Bitcoin fell below the $50,000 range today, and a sudden drift towards the $47,000 range has been observed as well. This looks like the strongest correction after May 2021, when Bitcoin closed below the EMA100, as the bearish pressure is immense and something the same is happeninging again. Speculations for BTC to go as low as $48,000, even down to 45,000 were already in the market, and the bearish indications for the past few days were already confirming them. But speculations are speculations, and rumors are rumors. What happened today was expected, but it came as a surprise to many in such a sudden plunge.

BTC/USD 1-day price chart: BTC looks for support

The 1-day price chart for Bitcoin price analysis shows a steep decrease in the coin’s value as it came down from $53,725 all the way down to $47380 today in just a few hours, losing more than $6000 in price value. A swing low towards $42,000 was also observed. The BTC/USD yet have to clench on to a support, as all previous support zones have fallen one by one. BTC has lost 16 percent value over the last 24 hours and around 12 percent over the past week. On the other hand, the trading volume has increased by 69 percent over the last day but the market cap suffered by 16.42 percent.

Bitcoin price analysis: Bitcoin hits lowest since mid-Oct, breaks below $50k; falling to $47k range 1

The volatility indicator shows comparatively high volatility, but BTC price has stepped far below the lower limit of the Bollinger bands. The lower limit at $50,834 represented support for BTC, which just fell and turned into a resistance zone now. The moving average (MA) is present at the $55071 mark.

The relative strength index (RSI) was already on a downwards slope giving bearish indications, but today it dived straight down and has just dipped into the oversold region, which is a strong bearish territory. As the RSI just touched index 29, the BTC has turned undervalued, so a little reversal in price function can be expected in the coming hours.

Bitcoin price analysis: Recent developments and further technical indications

The 4-hour price chart for Bitcoin price analysis shows the coin fell to $51,9668 during the first four hours today and then suddenly took a deep plunge towards $47,256. Bitcoin hasn’t found support yet as it continues to decline.

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Bitcoin price analysis: Bitcoin hits lowest since mid-Oct, breaks below $50k; falling to $47k range 2
BTC/USD 4-hours price chart. Source: Tradingview

The volatility indicator started to diverge yesterday and took on to more steeper divergence today as the bearish pressure exceeded the expectation, and the price started falling tremendously, BTC price is trading below the lower limit of the Bollinger bands, and the moving average has also traveled low and is present at the $54,407 level. The RSI shows a critical situation as it has stooped low in the oversold region and is present at index 17, indicating high undervaluation at the moment.

Bitcoin price analysis: Conclusion

Bitcoin was first speculated to bounce of around $50,000 range, but that did not happen, then the second was 44,000 speculation for a bounce upwards, which seems correct at the moment, but as the coin hasn’t got the support yet, nothing can be said with confirmation, we can only assume for Bitcoin to float above $45,000 today.

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Bitcoin Price Analysis: BTC rejects upside at $59,000, more downside to follow?

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  • Bitcoin price analysis is bearish today.
  • BTC/USD spiked to $59,000.
  • Closest support at $56,000.

Bitcoin price analysis is bearish today as we saw upside rejected after a quick rally today. Therefore, BTC/USD is not yet ready to set higher highs, and we will likely see more downside tested over the next 24 hours.

Bitcoin Price Analysis: BTC rejects upside at $59,000, more downside to follow? 1
Cryptocurrency heat map. Source: Coin360

The cryptocurrency market has seen mixed results over the last 24 hours. The market leader, Bitcoin, declined by 2.29 percent, while Ethereum gained 3.55 percent. Terra (LUNA) was the top performer, with a gain of 12 percent.

Bitcoin price movement in the last 24 hours: Bitcoin retests $59,000 previous high, quickly rejects lower

BTC/USD traded in a range of $56,375.16 – $58,879.67, indicating strong volatility over the last 24 hours. Trading volume has increased by 19.75 percent, totaling $39.4 billion, while the total market cap trades around $1.08 trillion, resulting in market dominance of 41.17 percent.

BTC/USD 4-hour chart: BTC looks to test downside again

On the 4-hour chart, we can see the Bitcoin price action returning towards previous support over the last hours, likely leading to another retest of the $56,000 support.

Bitcoin Price Analysis: BTC rejects upside at $59,000, more downside to follow?
BTC/USD 4-hour chart. Source: TradingView

Bitcoin price has traded in a clear bearish momentum for most of November. After a quick spike higher on the 8th of November, a new all-time high was set at $69,000. From there, BTC/USD saw a strong reversal over the next week.

Almost 20 percent were lost until strong support was finally found at $56,000 on the 19th of November. After a brief retracement, the support got retested again on the 23rd of November. 

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Meanwhile, further lower highs were set, indicating a bearish market structure still in play. This gave the momentum for bears to finally break another lower low to $53,500 last Friday. 

After some consolidation over the weekend, the Bitcoin price saw a quick reaction higher overnight to Monday. Initially, the $58,280 mark was reached, with further higher highs reached with quick spikes higher over the last 24 hours.

Ultimately, the $59,000 previous high was not broken, meaning that another wave lower should follow over the next days.

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Bitcoin Price Analysis: Conclusion 

Bitcoin price analysis is bearish today as we saw the $59,000 resistance reject the market lower over the past hours. Therefore, BTC/USD is still not ready to break previous highs, likely leading to more downside later this week.

While waiting for Bitcoin to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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