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Bitcoin tops $66k, resuming uptrend as real bond yields slide

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shot up on Monday, ending an almost three-week-long sideways churn that saw persistent demand around $60,000.

The cryptocurrency topped $66,000 during the European hours and appeared set to challenge the record high of $66,975 reached on Oct. 20, CoinDesk data shows. Ether, the native token of Ethereum’s blockchain, also broke its previous record early Monday; its price briefly passed $4,700 around 1:00 UTC, according to CoinDesk data. Bitcoin is the world’s largest cryptocurrency by market capitalization, whereas ether, is the second largest.

Yuya Hasegawa, crypto market analyst at Japan’s exchange bitbank, said sinking real or inflation-adjusted bond yield may be powering bitcoin higher. “Real yields sliding due to inflation fears may have caused the recent BTC rally,” Hasegawa told CoinDesk in an emailed statement. Data from U.S. Department of Treasury Shows the 10-year real yield dipped to -1.09% on Friday, the lowest since Aug. 30.

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Bitcoin is widely perceived as a store of value asset like gold and while Federal Reserve’s Chairman Jerome Powell reiterated last week that price pressures may be transitory, fears of inflation running out of control persist.

“The inflation narrative still dominates the headlines and people are feeling the pinch globally,” Coinbase said in its weekly email on Friday. “Whether it’s gas prices in the U.S., energy prices in Europe or food prices in Latin America, the headwinds of supply chain constraints and a shrinking labor force has investors looking for a store of value.”

On-chain data also show bullish signs for bitcoin in the medium term, said Eddie Wang, senior analyst at OKLink research, crypto exchange OKEx’s on-chain data research arm. The network’s hashrate has been steadily increasing since July, the mining difficult has also increased eight times, and miners have accumulated over BTC 3,000 in their wallets since September, Wang said.

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The number of unique wallets with a balance of more than zero has returned to 39 million, close to the record high of 39.28 million non-zero wallets in May, Wang said, citing the data as an indicator of a positive sentiment in the market.

An increase in bitcoin-pegged coins and stablecoins is also a sign of a bull market, Wang said. The analyst noted that 6,022 wrapped bitcoin (WBTC) were printed on Ethereum in the last seven days, and Tether printed 1 billion ERC-20 USDT on Nov. 5.

Data tracked by blockchain analytics firm Chainalysis shows renewed accumulation by large investors, i.e. whales. Investors holding at least 1,000 BTC snapped up 142,000 coins in the last week of October, taking the cumulative tally to nearly 200,000 BTC – the highest in 2021.

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According to Daniel Kukan, senior cryptocurrency trader at Swiss-based Crypto Finance AG, bitcoin’s latest upside move appears to be spot-driven, as funding rates or cost of holding long positions in the perpetual futures market remains low.

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Data provided by Coinglass.com shows the average funding rate was 0.0250% early Monday versus 0.0589% on Nov. 3. Exchanges calculate funding rates every eight hours. A very high funding rate is widely taken to represent excess bullish leverage. A combination of rising costs and sideways price action often forces traders to trim long positions, leading to a price pullback.

Kukan said the sideways action seen in the past couple of weeks was a typical bull market pause. “It was a healthy consolidation and the market has not tested the short-term support of $58,000, which is a strong signal,” Kukan added. “I can see some interest to sell at slighlty above $70,000, [but, I] guess we are going to take out that level rather fast.”

The Japanese exchange bitbank expects bitcoin’s price to be as low as $58,000 and as high as $76,000 this week.

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Bitcoin’s previous all-time high was on the back of the approval of the first bitcoin futures-backed exchange-traded funds in the U.S.

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Bitcoin

Mike Novogratz Expects Bitcoin to Stay Above $42,000

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Mike Novogratz says that it would be surprising to see Bitcoin below $40,000

Galaxy Digital CEO Mike Novogratz believes that the price of Bitcoin is not going to fall below $40,000.

The crypto mogul told CNBC host Joe Kernen earlier today that he would be surprised to see the biggest cryptocurrency revisiting the aforementioned price level.

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Novogratz is convinced that $42,000 will remain at the bottom of the ongoing correction.
 

I think $42,000 should hold, that should be the bottom of this move. It would surprise me if it went below $40,000.
 

Bitcoin suddenly collapsed 21% on Dec. 4, making crypto traders dust off their $20,000 charts.

The cryptocurrency managed to recover to $52,000 on Dec. 8, but it was rejected there.

At press time, Bitcoin is trading down 2.7%, slightly above the $49,000 level on cryptocurrency exchange Bitstamp.

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Novogratz claims that Bitcoin going below $40,000 would result in a significant sentiment shift, adding that such a dramatic drop would make him scratch his head.

The crypto boss remains optimistic due to the increasing number of people participating in the industry:

There’s so many more people participating on it. It’s hard for me to see if going below.

However, as reported by U.Today, growth investor Louis Navellier recently said that Bitcoin could drop to $10,000 if it were to lose the do-or-die $28,500 support level that managed to hold during a dramatic correction in summer.

After a streak of unsuccessful predictions in 2018, the hedge fund veteran made a prescient call about Bitcoin reclaiming its previous record high of $20,000 by the end of 2020.

Bitcoin is now up 73% in 2021, significantly underperforming some of the top altcoins.

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Ethereum

Top Trader Says Ethereum Looks Exceptionally Bullish, Unveils Targets for Bitcoin and Explosive Altcoin Terra

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A popular crypto analyst believes Ethereum (ETH), Bitcoin (BTC) and one altcoin are about to blast off and leave the recent market-wide slump in the dust.

The pseudonymous crypto strategist and trader Kaleo tells his 454,000 Twitter followers that ETH’s time to shine has arrived as the “king” of the layer-1 blockchain protocols.

The analyst says,

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“ETH is so bullish after the most recent flush it’s not even funny.

We’ve seen a major rotation play among the alt [Layer-1s] the past few months.

It only makes sense that the king of the L1s finally has a chance to suck liquidity from the rest of the market and have a run of its own.”

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Ethereum is about even on the day, trading for $4,346 at time of writing.

Kaleo next looks at Bitcoin and says he still believes the top crypto will reach at least $100,000 during the current cycle.

“I’ve said it before and I’ll say it again – I still expect to see Bitcoin have a parabolic move to top out at $100K+ this cycle.

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I’ll gladly start scaling out around $150K. I expect it to go higher, but I’m not concerned with nailing the top. Until then, just keep stacking.”

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Source: Kaleo/Twitter

BTC currently sits at $50,900 after having battled back from a flash-crash low around the $43,500 level on December 3rd.

Lastly, the crypto analyst lays out his price prediction for the Terra (LUNA) protocol, whose native token LUNA underpins a suite of decentralized stablecoins.

Kaleo tells his followers that Terra reaching the $100 threshold is inevitable.

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“LUNA going to $100 from here is only a matter of time.”

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Source: Kaleo/Twitter

LUNA has seen some wild price action in recent days, with the altcoin tumbling from $69.66 to $53.64 late last week before surging to $77.37 on Sunday.

The 10th-ranked crypto has since corrected but is back up 5% on the day to $70.74.

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Bitcoin

Bitcoin SV Coin Struggling Near Vital DMA lines, In Sideways Consolidation

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  • Bitcoin SV coin is trading sideways over the larger time frame, with a substantial consolidation over the past few months. 
  • The crypto asset is currently placed under the narrow range of $100 to $200 while trying to suppress its 20, 50, 100, and 200-day lines.
  • The pair of BTC/BTC is trading at 0.003027 BTC with an intraday gain of +3.21%, and the ratio of BTC/ETH is CMP at 0.03489 ETH with a minor 24-hour change of +1.91%.  
Chart of BSV/USD by Tradingview

Bitcoin SV coin at the monthly chart is trading sideways, with solid consolidation. Currently, the coin is trying to suppress its all vital moving averages of 20, 50, 100, and 200-day lines. The overall short to long-term trend is still neutral, as it is struggling near all vital moving averages. Volume activity over the chart increases and needs to grow strongly for the breakout from the sideways pattern. The breakout from the sideways pattern will create a substantial upside in upcoming trading sessions, which needs supportive volume activity to grow. The sustainability above the breakout level of $200, with supportive volume activity, will boost more upside to $240 to $270. Support on the lower side is $125 and $100, whereas resistance on the higher side is $180 and $200.

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame

Chart of BSV/USD by Tradingview

Bitcoin SV coin is trading under the roller coaster at the 4-hour time frame. Meanwhile, the technical parameters presently showcase substantial volatility, with good volume activity. Volume activity at the weekly chart is higher and needs to maintain above its average volume activity. BSV price is trading at $149 with an intraday drop of -1.84%, and the volume to market cap ratio is 0.2866.

relative Strength Index (CAUTION): Bitcoin SV coin RSI is heading lower, after testing the overbought zone. The coin moves lower with a substantial upsurge from the lower levels and RSI at 54. 

Moving Average Convergence Divergence (CAUTION): The daily chart projects a caution trend with a bearish crossover at the 4-hour time frame. The buyer’s signal line (green) is heading towards the seller’s line (red) for the upcoming negative crossover.  

Support levels: $125 and $100

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Resistance levels: $180 and $200.

DISCLAIMER

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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