https://www.newsbtc.com Bitcoin & cryptocurrency news today, price & technical analysis Tue, 23 Feb 2021 06:19:33 +0000 en-US hourly 1 https://wordpress.org/?v=5.6.2 https://www.newsbtc.com/wp-content/uploads/2020/06/cropped-cropped-cropped-favicon-32×32.png https://www.newsbtc.com 32 32 https://www.newsbtc.com/analysis/xrp/ripple-xrp-outperform-bitcoin-ethereum/
Tue, 23 Feb 2021 07:18:55 +0000
Ripple remained stable above $0.5000, while there were heavy losses in bitcoin and ethereum against the US Dollar. XRP price is likely to start a fresh increase above $0.5500.
- Ripple failed to clear a major hurdle at $0.6500 and corrected lower against the US dollar.
- The price is now trading near the $0.5200 support and the 100 simple moving average (4-hours).
- There is a major bullish trend line with support at $0.5150 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
- The pair could start a fresh increase as long as there is no close below $0.5000.
Ripple’s XRP Price is Holding Key Support
Recently, there was a sharp upward move in ripple’s XRP price above the $0.5200 resistance zone. The price surged above the $0.6000 level and it settled above the 100 simple moving average (4-hours).
However, the price failed to clear a major hurdle near the $0.6500 barrier. It topped near the $0.6501 level and it started a fresh decline. There was a sharp decline in bitcoin and ethereum, but XRP remained stable above $0.5000.
There was a break below the 50% Fib retracement level of the retracement level of the upward move from the $0.4330 swing low to $0.6500 swing high.
Source: XRPUSD on TradingView.com
The price is now trading near the $0.5200 support and the 100 simple moving average (4-hours). There is also a major bullish trend line with support at $0.5150 on the 4-hours chart of the XRP/USD pair. The trend line is close to the 61.8% Fib retracement level of the retracement level of the upward move from the $0.4330 swing low to $0.6500 swing high.
On the upside, the price is likely to climb above the $0.5350 and $0.5400 levels. The main resistance sits at $0.5500, above which the price might rally towards $0.6500.
Dips Limited in XRP?
If ripple fails to continue higher above $0.5500, it could correct lower. An initial support on the downside is near the $0.5150 level and the trend line.
A downside break below the $0.5150 support zone could lead the price towards the $0.5000 zone. Any more losses may possibly lead the price towards $0.4400.
4-Hours MACD – The MACD for XRP/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now just below the 50 level.
Major Support Levels – $0.5150, $0.5000 and $0.4500.
Major Resistance Levels – $0.5400, $0.5500 and $0.6000.
Tue, 23 Feb 2021 05:18:46 +0000
Ethereum started a sharp decline below $1,850 against the US Dollar. ETH price spiked towards $1,500 and it is currently struggling to stay above $1,650.
- Ethereum declined heavily after it broke the $1,850 and $1,750 support levels.
- The price is now trading well below $1,800 and the 100 hourly simple moving average.
- There was a break below a crucial bullish trend line with support near $1,865 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to move down if it fails to stay above the $1,650 support.
Ethereum Price is Showing Bearish Signs
Ethereum started a strong decline after it failed to stay above $2,000. ETH broke many important supports near $1,850 and $1,800 to move into a short-term bearish zone, similar to bitcoin.
There was also a break below a crucial bullish trend line with support near $1,865 on the hourly chart of ETH/USD. It opened the doors for more losses below the $1,750 support. The price even spiked below the $1,600 level and settled well below the 100 hourly simple moving average.
It traded close to the $1,500 support and recently started an upside correction. There was a recovery wave above the $1,600 and $1,650 levels. The price even climbed above the 50% Fib retracement level of the recent decline from the $1,980 high to $1,500 swing low.
Source: ETHUSD on TradingView.com
However, the price failed to surpass the $1,800 resistance level. It struggled to clear the 61.8% Fib retracement level of the recent decline from the $1,980 high to $1,500 swing low.
Ether is now moving lower and approaching the $1,650 support. If there is a close below $1,650 and $1,620, there are chances of a fresh decline towards the $1,500 support. An intermediate support sits near the $1,550 level.
Fresh Increase in ETH?
If Ethereum stay above the $1,650 support, it could attempt a fresh increase. The first key resistance is near the $1,750 level.
The next major resistance is forming near the $1,800 level (the recent breakdown zone). To move into a positive zone, the price must gain momentum above $1,850 and the 100 hourly simple moving average.
Hourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.
Hourly RSI – The RSI for ETH/USD is now well below the 50 level.
Major Support Level – $1,650
Major Resistance Level – $1,800
Tue, 23 Feb 2021 03:18:42 +0000
Bitcoin price declined over $5,000 and tested the $45,000 support against the US Dollar. BTC is now correcting losses, but it is facing a strong resistance near $54,000 and $55,000.
- Bitcoin is struggling to climb back above the $54,000 and $55,000 resistance levels.
- The price is now well below $55,000 and the 100 hourly simple moving average.
- There was a break below a major bullish trend line with support near $54,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The same trend line support and $55,000 are now acting as a strong resistance.
Bitcoin Price is Showing Signs of More Losses
After forming a short-term top, bitcoin price started a sharp decline below the $56,000 level. BTC broke the key $55,000 support level and the 100 hourly simple moving average to move into a bearish zone.
There was also a break below a major bullish trend line with support near $54,500 on the hourly chart of the BTC/USD pair. The pair crashed over $5,000 and it even spiked below the $50,000 support. It tested the $45,000 support before correcting higher.
There was a break above the $50,000 and $52,000 levels. The price even climbed above the 50% Fib retracement level of the downward move from the $58,350 swing high to $45,000 swing low.
Source: BTCUSD on TradingView.com
However, the same trend line support and $55,000 are now acting as a strong resistance. The 100 hourly simple moving average is also near the $55,000 level along with the 76.4% Fib retracement level of the downward move from the $58,350 swing high to $45,000 swing low.
Bitcoin is now moving lower and it seems like it could revisit the $50,000 support level. If the price fails to stay above $50,000, it could decline towards the $46,200 support.
Upsides Capped in BTC?
If bitcoin remains stable above the $50,000 level, it could make another attempt to settle above $54,000. The first major resistance is near the $55,000 level and the 100 hourly SMA.
To start a fresh increase and move into a positive zone, the price must clear $55,000. The next major resistance sits near the $57,000 level.
Hourly MACD – The MACD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.
Major Support Levels – $52,000, followed by $50,000.
Major Resistance Levels – $54,000, $55,000 and $57,000.
Tue, 23 Feb 2021 01:00:57 +0000
Bitcoin has been booming in part because of the digital gold narrative, among many other key factors. However, a veteran trader is reminding crypto holders of an old US Executive Order banning gold, warning that it could very well happen again, but with Bitcoin. Are they just trolling, or is there truth to the claim?
Here’s everything you need to know about Executive Order #6102, why it is unlikely to happen again, but also why it is something every crypto investor should be aware of.
Bitcoin Becomes Digital Gold Post-Pandemic
Bitcoin has exploded back into the limelight after three years of a <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/bear/”>bear market. This bull market has already taken Bitcoin from under $4,000 to nearly $60,000 and over a $1 trillion market cap.
Although the cryptocurrency is primarily a speculative asset at this time that’s difficult to assign a value to, some analysts put the price per Bitcoin as high as $400,000 and beyond in the future.
As the cryptocurrency’s market cap grows and beats major publicly traded company after company, even rising the ranks of total currencies globally, it becomes even more so a viable challenger to gold and to the dollar.
Bitcoin is now trouncing gold with its better, faster, more secure, all-digital narrative, but it is still a far ways off from facing squarely off with the dollar as the global reserve asset.
Gold's value has been diminishing while Bitcoin's rises. Coincidence? | Source: BTCUSD on TradingView.com
At one point in time, when the dollar was at its weakest and the nation of the United States was in crisis. Then US US President Franklin D. Roosevelt signed into law an Executive Order “forbidding the hoarding of gold <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/”>coin, gold bullion, and gold certificates,” in the country.
The action, put into law in April 1933, involved a “penalty of $10,000 and/or up to five to ten years imprisonment,” if discovered holding more than the allowed allocation of $100 in gold coins or up to five troy ounces of gold.
At the time, the US was dealing with the Great Depression and to combat economic challenges, investors flocked to the safe haven asset. Sound familiar?
Career commodities trader Peter Brandt today warned crypto investors that the same could theoretically happen to Bitcoin – an asset in which he holds and often comments on. And while in theory this is true, things are very different than they were back then.
Executive Order #6102 — Action by a progressive U.S. president during a time of a national crisis
Been done before
Any U.S. citizen who thinks it can’t be done again better think twice – but this time not with Gold pic.twitter.com/OA95G3lxB9
— Peter Brandt (@PeterLBrandt) February 21, 2021
At the time, the United States government had significantly more control over its citizens than it currently does, thanks to decentralization and the internet. Individual wealth is very different today, and the wealth controlling all of the capital in Bitcoin has a lot more say than the private individual investor did during The Great Depression.
That’s not to say it is impossible, but banning it outright for citizens of the United States while the asset flourishes globally will only serve to restrict the country’s economic growth, not save it.
Related Reading | Here’s How High Bitcoin Could Go If 2017 Repeats
And perhaps the most important benefit of Bitcoin of all, because it lacks a physical form, confiscation would need to be voluntary or would otherwise be impossible.
An Executive Order of this magnitude is not impossible, but even Brandt himself appears to be only having some fun and trolling the speculators holding the cryptocurrency currently.
Featured image from Deposit Photos, Charts from TradingView.com
Mon, 22 Feb 2021 20:00:02 +0000
February is the largest monthly candle on record for Bitcoin price dollar for dollar. But with only a few days left in the shortest month of the year, things could soon turn extremely negative for the leading cryptocurrency by market cap.
Here’s why March has traditionally been a bad month for Bitcoin, and what that could mean about the current crypto market uptrend.
February Posts Landmark Bullish Cryptocurrency Monthly Candle
From the February open until the highest recent peak, Bitcoin price added nearly $25,000 per <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/”>coin to its price tag before pulling back.
And while whales caused a large selloff today back down to $47,000 at one point, the leading cryptocurrency by market cap has already set the record for largest monthly candle in terms of total dollars moved.
Related Reading | Forget 2021, Here’s How High Bitcoin Price Can Go By 2026
All kinds of records are being broken left and right, and the asset is in full price discovery mode. And while the uptrend seems unstoppable as of late, February has often been a month where short term trends come to an end.
This time it’s different pic.twitter.com/oEpK0SLqRz
— Darren Lau (@Darrenlautf) February 22, 2021
Last February was the early 2020 peak prior to the pandemic hitting and panic setting in, and following the 2017 top, Bitcoin fell from $20,000 to $5,800. But its actually March that’s a lot bloodier than February historically.
Bitcoin Bleeds In March Each Year, Is This Time Different?
March 2020 was when Black Thursday struck, and Bitcoin plunged from $10,000 to $3,800 in just days alongside stocks and other assets. The March before that was green, but closed below $4,000 while the cryptocurrency was in the lowest accumulation trading range.
Related Reading | Here’s How High Bitcoin Could Go If 2017 Repeats
Five years in a row before that saw nothing but red candles. Even during the historic bull market, nearly every March was red on the way up to $20,000. Will the same thing happen again even with Bitcoin this bullish?
Only two out of nine March candles closed green | Source: BTCUSD on TradingView.com
Bitcoin is working on its fifth green monthly candle in a row, and is more than likely going to close February in the green. Next month’s candle closing green would match the current record for consecutive bullish closes, and put the current Bitcoin rally much more on par with the first bull market.
Interestingly, the first bull market is just one of two instances that had a green March finish. Even then, the sixth green candle close ultimately led to two months of downside, so the risk of a larger bull market correction remains high over the coming months, weeks, and days.
With most March candlesticks closing red, how do you think next month will close for Bitcoin?
Featured image from Deposit Photos, Charts from TradingView.com
Mon, 22 Feb 2021 17:19:53 +0000
Most people think metadata is something you only have to worry about if you are running an SEO campaign. However, most people do not realize that every task you perform creates metadata that contains every piece of information about the task you just performed. Even if you click a picture, the photo will have a metadata file that will contain all your personal information such as your location, device information, date and time information, etc.
Someone can misuse this information in more ways than you might realize. Therefore, only protecting your data is not enough if you want to stay completely secure. You have to protect your metadata as well. Here are a few reasons why protecting your metadata privacy will make you completely protected.
- The most important step of ensuring your privacy is encrypting the information you are transferring, and you can do that by protecting your metadata.
- Metadata privacy secures not only the information you are sending but also the information of the sender.
- As metadata files contain information about the sender, it also includes information on the receiver. By ensuring the privacy of metadata, you can ensure the privacy of the receiver as well.
Whatever you do online, sending & receiving any data, HOPR provides the tools and framework for a privacy-first layer zero of the Web3 ecosystem, ensuring everyone has control of their privacy, data, and crypto assets.
Why is the DeFi world waiting for HOPR?
HOPR provides complete network-level metadata privacy, which is extremely important in the digital age. Metadata is one of the crucial yet elementary parts of totally anonymous financial transactions. In the Decentralized Finance space, all the transactions take place over the internet. While the platforms encrypt these transactions, they can create caches and metadata that contains detailed information about the transactions.
HOPR understands the importance of total metadata privacy and provides complete network-level metadata privacy. The HOPR networks transfer all the data via multiple “hops” to eliminate any prying eyes and encrypt the transaction in the process. This way, the metadata is hidden that helps in masking the origin and destination, as well as size, sender & recipient of the data transaction.
Another advantage of using the HOPR network is its custom-made second-layer scaling based on probabilistic payments that immediately give a value to the HOPR token. This helps in avoiding high transaction fees on the blockchain.
The outstandingly strong & huge community of HOPR and what this means?
HOPR rewards its community members for helping others to transfer data private & secure. This decentralized network, which in testnets already had up to 3’000 nodes running, has a unique proof-of-relay mechanism that rewards every node runner with HOPR tokens. The platform incentivizes the community members to run HOPR nodes in exchange for HOPR tokens while contributing to online data privacy.
HOPR is launching the HOPR tokens in a matter of a week, and there is an exciting buzz going around the community. Even before the token launch, more than 20’000 members have already subscribed to TG channels in 11 different languages.
HOPR has always prioritized its community members by rewarding their efforts on several HOPR testnets.
The token launch comes after a first-of-its-kind DAO (decentralized autonomous organization) experiment. The timings and logistics of the token launch were decided by the HOPR Genesis DAO, a community of more than 3,000 HOPR testnet participants, independent of the project team itself.
More than 1,500 votes were cast on the final proposal that is an unprecedented level of turnout in the DeFi space. The DAO voted for a community presale, followed by a public distribution on the decentralized finance platforms Balancer.finance and Uniswap.exchange that are two popular DeFi tools for providing decentralized liquidity. In total, 85m HOPR tokens will be distributed.
The high involvement of the core community shows passion and great interest in the meaning of the project. Therefore, long-term growth can be expected for the project. By incentivizing the collective efforts of their community members, HOPR shows endless gratitude and appreciation towards them.
Why is Meta Data Privacy the next big thing?
The exponential global data traffic growth has led to an increase in security risk, due to the many webpages grabbing all kinds of data to find the right clients, grow and serve customers with matching desires. What sounds like a great customer serving is at the same time a big risk, as everybody might be influenced, based on the profile of others.
Data privacy is just not enough. HOPR is about to revolutionize how we will send data in the future. Similar to TOR but incentivized so that everybody can earn a token when supporting the HOPR network. Every community member that runs a HOPR node will be rewarded for their efforts and contribution to digital privacy.
The company even offers a dedicated HOPR hardware node in order to relay more data and earn more tokens. Anyone can easily run the HOPR node on their own hardware by using HOPR’s easy-to-install software. And it is open-source, so the installation is totally free. You only pay when you use it with HOPR token. These HOPR tokens will be given to the HOPR Node runners, as they will send your data, in a private & secure manner.
With ever-increasing security risks, we have to ensure our digital privacy is as good as possible. We have been focusing on securing the data, but metadata privacy is the next level important if not a larger security concern. As metadata contains information about the data, sender, and receiver, it is vital to keep it secure from any vulnerabilities.
Just 1 funny example so you understand the difference between data privacy & metadata privacy:
Here you see:
Sender / receiver / weight of the item / time sent / and the form
If this would be split into all equally looking HOPR balls – and they all would be sent through different delivery channels … the data & the metadata would be protected.
Image by ElasticComputeFarm from Pixabay
Mon, 22 Feb 2021 17:00:16 +0000
Without a doubt, dApps will continue to disrupt the crypto world as companies are investing heavily in the development of the DeFi ecosystem. Likewise, investors are willing to earn more returns by plowing various cryptocurrencies back into DeFi, which in a way is also responsible for the growth.
Decentralized Finance, or DeFi, is gaining more credence from crypto enthusiasts daily with the development of dApps, which utilize the Ethereum blockchain. The blockchain’s smart contract eliminates the need for middlemen during transactions, therefore, creating secure, efficient and fast transactions.
DeFi Projects You Should Follow in 2021
Following the rise in popularity of DeFi in 2020, many crypto users are on the lookout for projects that can help them maximize profits this year. Some of the projects you can follow in 2021 include:
Aave is built on the Ethereum blockchain and is best described as a lending pool that gives both lenders and borrowers access to 17 different cryptocurrencies including ETH, SNX, YFI and stablecoins like DAI.
To incentivize users and facilitate lending and borrowing, the platform has two types of tokens; the aTokens and AAVE tokens. The aTokens are issued to lenders who deposit to the liquidity pool so that they can earn interest on their deposits. The AAVE token, which is the native <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/”>coin, offers more benefits such as discounted fees when borrowers use AAVE as collateral.
A phenomenal attribute of the Aave protocol, which is why crypto users are crazy about it, is the “flash loan” feature. This provides an avenue for advanced crypto users to have access to flash loans, borrow as much money and repay within the same transaction very fast. Users can profit from this through arbitrage, collateral swapping and wash trading.
Just recently, on the 26th of January, AAVE reached a new all-time high at $278. 90 with its TVL (Total Value Locked) reaching a new high of $3.75 billion. This is a result of the spike in demand for flash loans by investors. Thus, making Aave a great project to follow this year.
Compound is simple and user-friendly for both beginners and advanced traders alike.
It is a money market protocol that lets users deposit cryptocurrencies to earn interest, or borrow other crypto against the deposited tokens.
Lending and borrowing on Compound is easy, as transactors do not have to hassle with the interest rate. The interest rates for lending and borrowing are automatically fixed and adjusted algorithmically based on supply and demand. A great attribute of Compound is that it requires only a crypto wallet and internet connection to participate in lending and borrowing on the platform.
It is definitely a game-changer in the DeFi space. After more than a year of delivering blockchain-based tools to 50,000 users, Nimbus has shifted to DeFi. The launch of their DeFi platform and native utility token NBU on the 27th of January shows the potential of their new DeFi functionality as a market cap of $35 million was reached just within 2 days after the launch.
Nimbus aims to become a one-stop-shop for those willing to diversify their portfolio without having to switch between multiple native tokens of different projects. On their new platform, Nimbus is set to launch four different decentralized apps in 2021: a peer-to-peer lending dApp, crypto Arbitrage-Trading dApp, IPO Hub dApp, and Crowdfunding dApp.
One advantage of the bold unprecedented move by Nimbus is that individual investors can now access shares at traditional IPOs as well as take part in start-up equity and crowdfunding, which before now was restricted only to institutional investors and finance hoarders.
The DeFi community keeps a close eye on the project in anticipation of their NBU token listing on Uniswap scheduled for February 24. This will likely give a new boost to the already successful Nimbus DeFi Platform launch.
Curve Finance is also an automated market maker where anyone can add their assets to the various liquidity pools to earn profits. Curve runs on the Ethereum blockchain and is a decentralized exchange liquidity pool for efficient stablecoin trading.
The design of Curve finance allows for swapping stablecoins with low fees and slippage. Also, due to the dynamic system of Curve, it can also be used to swap tokenized versions of coins that are in a relatively close price range.
This is amazing because users can swap between tokens, such as swapping the various versions of bitcoin, like sBTC, renBTC, WBTC. This feature on Curve offers more options for its users, making it a great platform to follow this year.
Simply put, Synthetix is a protocol that issues synthetic assets on the Ethereum blockchain. Synthetic assets are instruments in the form of ERC-20 contracts called “Synths” that return interest on another asset, without the need to hold the asset.
The platform helps in the maturity of decentralized finance by introducing non-blockchain assets such as synthetic commodities, synthetic cryptocurrencies, synthetic inverse cryptocurrencies, synthetic fiat currencies into the crypto ecosystem.
On January 15, Optimism, an Ethereum scaling company, soft-launched Optimistic Virtual Machine (OVM) to solve Ethereum’s transaction problems. As a result, Synthetix co-founder, Kain Warwick announced that staking SNX, the platform’s native token, on OVM is now possible.
Although, the mentioned projects are not the only ones available in the crypto world. However, they exhibit great potentials that can help improve the crypto ecosystem for all users.
Mon, 22 Feb 2021 16:43:14 +0000
An American teenager from Miami, Florida earned 0.7 BTC in one day. His name is Karl Miller and he is a Miami Country Day School student.
A local media asked him several questions.
The boy says that he stumbled upon an article about the RJVX12 algorithm on the Internet. The company mentioned there offered passive income on cryptocurrency up to several percent a day, but the teenager didn’t have any money to invest. The company suggested that he use their affiliate program, where you can invite your friends and colleagues as investors and get a percentage of the transaction.
According to Karl, he sent out his partner link to a dozen boards and told hundreds of people about the possibility of investing. For several weeks every night after school, he was working with this affiliate program and when the quarantine began, he started dedicating almost his whole day to it.
As the teenager told us, he has already begun to earn at least $200-300 per day when one of the investors who went through his referral link on the 10th of February made a deposit of 10 bitcoins. That’s how Karl immediately received a commission of 0.5 BTC (at the rate of that date it was more than $ 20000).
Right now Karl wants to give some of the money to his parents and set some of it aside for college. He plans to continue working as a partner of the company and keep earning money from the affiliate program.
The RJV12X algorithm is a way of analyzing and predicting the cost forecast of securities, shares, and cryptocurrencies. It was developed in the summer of 2020 by a group of scientists from Oxford University along with analysts from FBC Limited.
At first, the goal of the joint action was to create an AI that would independently predict the situation, but after several years of failed affords, the project team rethought their actions.
It was decided not to teach AI to make decisions on its own, but to set the goal of developing a universal algorithm for predicting the cost forecast, based on which the analysts themselves would predict the “bullish” or “bearish” scenario of a particular security.
In summer 2020, a team of scientists and financial analysts successfully completed the work on the algorithm and managed to achieve phenomenal results. Based on the RJVX12 algorithm, the accuracy of the analysts’ forecasts from FBC limited reached an incredible 97.6%.
Disclaimer: This is a sponsored post. NewsBTC doesn't vouch for the accuracy of its contents or any claims made therein
Mon, 22 Feb 2021 16:01:33 +0000
Ethereum fell Monday in sync with the cryptocurrency market’s other top assets, including Bitcoin, Binance <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/”>Coin, Polkadot, and Cardano.
The second-largest cryptocurrency touched a record high of $2,041 during the weekend session that prompted daytraders to secure their profits. That led to a considerably larger sell-off throughout the weekend and Monday session, taking the ETH/USD exchange rate lower by as much as 26.11 percent to $1,508.
Ethereum slips amid broader crypto market sell-off. Source: ETHUSD on TradingView.com
Elsewhere in the cryptocurrency market, almost every high-cap asset suffered major intraday losses.
Bitcoin, the flagship digital asset having an extremely high positive correlation with Ethereum, plunged up to 19.99 percent from its session peak above $58,000. Likewise, Binance <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/”>Coin, which notched closed the previous weekly session 171 percent high, dropped by 44 percent on Monday.
On the whole, the cryptocurrency market wiped off $149 billion off its valuation.
Bulls were able to offer support as Ethereum continued its plunge into the US session Monday. So it appears, they capped the cryptocurrency from falling below its 50-day simple moving average (the blue wave). The ETH/USD rate fell towards it briefly before pulling itself back upward by 13 percent.
Meanwhile, the bounce-back attempt took the pair close to another support wave (the green one) called the 20-day exponential moving average.
Both the curves have limited Ethereum’s downside corrections in the past. In January, traders attempted to break the 20-EMA about nine times—and each attempt took the ETH/USD rates to a fresh high. Meanwhile, any slipover below the 20-EMA had bulls treat the 50-SMA as support.
Meanwhile, Teddy Cleps, an independent market analyst, noted that the ETH/USD rates could still achieve a new all-time high, providing it maintains support above a so-called cloud price floor.
Ethereum eyes $5,000, as per Teddy Cleps. Source: ETHUSD on TradingView.com
“Ethereum getting squeezed between $2,000 and the cloud,” Mr. Cleps said. “[The] same exact price action that we had a few weeks back, when price was getting squeezed between the cloud and the 2017 all time high. Have patience, $5,000 is coming.”
Mon, 22 Feb 2021 11:00:56 +0000
Key Bitcoin Takeaways
- Bitcoin plunged by almost 5.5 percent on Monday after setting up a record high in the previous session.
- The one-day drop is the largest since February 10, pointing to extended intraday declines as the European session matures.
- Long-term sentiment remains bullish on growing corporate adoption against the US dollar depreciation.
Bitcoin (BTC/USD) sold off heavily throughout the Asian and early European session on Monday after achieving a new record high of $58,367 in the previous session.
The flagship cryptocurrency was down by up to 5.5 percent after the London opening bell, flirting with short-term technical support near $55,550 for an extended bearish breakout move. In doing so, BTC/USD targets the $52,000-54,000 as its next downside target.
Looking from a broader perspective, the pair appeared to have been testing an upward sloping trendline that acts as a price floor to a Rising Wedge pattern. Technically, a break lower risks sending the Bitcoin price lower by as much as the Wedge’s maximum height (which is about $10,000-long).
That puts the cryptocurrency on a corrective course to $45,000—about 20 percent lower from the latest peak.
Bitcoin's Rising Wedge pattern points to a 20 percent correction ahead. Source: BTCUSD on TradingView.com
…rising wedges have failed previously while determining Bitcoin’s short-term bias.
There is a massive possibility that Bitcoin locates a support area above $50,000 before it resumes its upward momentum. The reason remains its corporate/institutional adoption against the long-term risks brought by inflation and fiat depreciation.
Tesla, MicroStrategy, Square, Stone Ridge Holdings, and many other corporate firms have added billions of dollars of combined Bitcoin worth to their balance sheets in the last few months.
This is not a <a class="wpg-linkify wpg-tooltip" title="
BearBear market is defined as a decreasing set of prices for various types of assets. A bearish investor wants to profit from the movement of dropping prices. You can think of a bear, swinging his big paw downward on the investment, crushing prices.
” href=”https://www.newsbtc.com/dictionary/bear/”>bear market, just a healthy reset of the markets and actually quite organic for the contiuous growth of the #crypto markets.
— Michaël van de Poppe (@CryptoMichNL) February 22, 2021
Crypto economist Ben Lilly noted in his latest report that the bitcoin accumulation spree among Wall Street firms outran the cryptocurrency’s supply. That led to a liquidity crisis, which persisted amid higher exchange BTC withdrawals and upped retail demand.
Mr. Lilly added that investors have flocked into the Bitcoin market as a means to escape the falling US dollar market. He further noted that those investors would not need to sell the cryptocurrency to realize their profits. Instead, they would collateralize their BTC holdings via decentralized finance services to earn yields.
“In doing so, investors can potentially side-step capital gains tax on their bitcoin while enjoying its price appreciation,” said Mr. Lilly. “And when bitcoin is six figures, it begs the question.”