Connect with us

Bitcoin

Bitcoin Forges New Highs as Prices Quadruple This Year

Published

on

Bitcoin’s relentless surge continued over the weekend, with prices crossing $4,000.00 for the first time since the cryptocurrency was introduced back in 2009.

BTC/USD: On to a New Milestone

The BTC/USD exchange rate reached a high of $4,190 for a new all-time record, according to Bitstamp.

After a brief pause, Bitcoin’s breathtaking rally resumed in mid-July. Prices have since doubled in value and are up nearly 300% on year.

The new record follows multiple all-time highs in the wake of the Aug. 1 hard fork – an event that was far less volatile than analysts had feared. What’s more, the transition to the new SegWit protocol, which was officially locked in last week, has been smooth.

Since fork day, the BTC/USD has eluded volatility and retained market share from rival Bitcoin Cash (BCH). The newly minted BCH has witnessed volatile swings since coming into existence. It was last up 3.7% at $323.00.

Bitcoin Well Ahead of the Pack

In terms of overall market value, BTC and BCH are ranked No. 1 and 4, respectively. Bitcoin’s market cap crossed $66 billion over the weekend. Bitcoin Cash was worth just over $5.3 billion. Eight other cryptocurrencies are worth at least $1 billion. The total value of all cryptocurrencies is approaching $140 billion, according to CoinMarketCap.

Though fundamental and geopolitical forces are expected to keep bitcoin prices elevated, the cryptocurrency is already “ahead of the pack” in terms of longer-term momentum. This suggests altcoins such as Ethereum, Litecoin and Dash may be better better options from a purely risk/reward perspective.

Japanese Buying Frenzy Drives Gains

Japanese traders continue to drive the bitcoin rally, with nearly 46% of global trade volume denominated in the yen currency. That’s up from roughly one-third on Friday. U.S.-dollar bitcoin trade accounts for roughly 25% of the market.

As of April 1, Japan has accepted bitcoin as a legal payment method. It is estimated that hundreds of thousands of Japanese stores will begin accepting the cryptocurrency as soon as this year.

ICO Frenzy Boosts Confidence in Cryptocurrency Market

Initial Coin Offerings (ICOs) are all the rage these days. Just last week, it was announced that the amount raised via ICOs in June and July topped the amount raised via early-stage venture capital.

Filecoin, a highly anticipated cryptocurrency, raised a staggering $180 million in a few hours.

Analysts say that the hype surrounding ICOs reflects growing confidence in the future of cryptocurrencies. Even on Wall Street, there is a sense of urgency to “get to the bottom” of cryptocurrency-as-an-asset. Hedge funds, wealth managers and institutional investors are devoting greater time and resources to understanding this new asset class.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




Feedback or Requests?

Bitcoin

Bitcoin Blows Past $4,000 as Volume Surges to 10-Month High

Published

on

Bitcoin’s bulls maintained full control of the market on Tuesday, as the BTC/USD exchange rate crossed $4,000 for the first time since early January. In the process, exchange-based volumes surged to their highest levels in ten months.

BTC/USD: Breakout Eyed

The bitcoin price crossed $4,000 on Bitfinex and reached a session high of $4,048, the highest since Jan. 8. At the time of writing, BTC/USD printed $4,006.30 on Bitfinex, having gained 0.7%. The leading digital currency has maintained strong momentum amid the latest rally, according to the hourly relative strength index (RSI).

Aggregate data provided by CoinMarketCap show an average bitcoin price of $3,921.67 as of Tuesday morning. That’s a gain of 4.2% over 24-hour cycle.

Read more: Bitcoin Surges to Five-Week High; Crypto Bulls Reignite?

In terms of technical indicators, bitcoin must return above $4,200 to negate the long-term down trend This represents the high from late December and was also the 15-week moving average prior to the last breakout attempt. Beyond that, the bulls must return above $5,500 and eventually break the 50-week moving average near $6,800 to convince traders that a full-blown recovery was afoot.

Has Bitcoin Bottomed? A Closer Look at the Bullish and Bearish Cases

Trade Volumes Surge

The rally on Tuesday is a continuation of a sudden breakout that began more than 24 hours ago. On Monday, bitcoin and the broader cryptocurrency market rose to five-week highs thanks to a confluence of technical and fundamental forces.

A significant rise in trade volumes has underpinned the market’s push north. More than $10 billion worth of bitcoin traded hands on virtual exchanges in the last 24 hours. According to CoinMarketCap data, that the highest since April 2018. Virtual currency exchanges processed nearly $36 billion worth of cryptocurrency transactions over the same period.

The following chart highlights the extent of the volume surge on individual exchanges. Three exchanges processed more than $1 billion in adjusted volume; 12 more reported adjusted volumes of $500 million or greater. The billion-dollar exchanges are Binance, Bit-Z and OKEx.

The volume surge has contributed to higher volatility over the past two days. As of Monday, bitcoin’s 30-day volatility index rose to 2.24%, according to bitvol.info. That’s a gain of 32 basis points from Sunday, when volatility fell to three-month lows.

For crypto traders, volatility is a double-edged sword. Dramatic swings in prices make it more difficult to time their market entry or to rely on technical analysis to determine future positions. High volatility can also lead to rapid declines in prices. At the same time, the 2017 bull market showed that volatility can lead to parabolic gains for bitcoin and its altcoin peers.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




Feedback or Requests?

Continue Reading

Analysis

Crypto Update: Ethereum Leads Second Phase of Rally

Published

on

The major cryptocurrencies are all significantly higher today amid the US market holiday, with most of the top digital currencies also hitting their highest levels in a month. Today’s leaders also took out the highs set during the Litecoin-led spike 10 days ago, and the new swing highs mean that the counter-trend move continues. The negative long-term forces a

Our trend model is still on short-term buy signals in most cases, with the relatively weak Ripple still being the most important exception, but for now, the bearish long-term picture is unchanged, and traders should still use strict risk management strategies, as, despite the rally, bear market rules still apply. That said, investors could hold on to their smaller speculative positions, since the short-term break-out patterns in the segment remain intact, despite the still dominant negative long-term forces.

ETH/USD, 4-Hour Chart Analysis

Ethereum built upon its recent short-term relative strength, surging past the $120 and $130 resistance levels, outperforming its closest peers and leading the way higher for the whole segment. With the new swing high, a new short-term uptrend is established, and our trend model remains on a short-term buy signal, but the long-term trend remains bearish.

The long-term outlook is still negative for ETH, but the coin could test the $160 resistance level, which marked the top of the previous counter-trend move in the coming days. The coin is currently trading near the $145 resistance level, and although it’s slightly overbought from a short-term perspective, the next resistance level could be reached in the coming days.

BTC/USD, 4-Hour Chart Analysis

While Bitcoin has been slightly lagging behind Ethereum during the current rally, it not just recaptured the $3600 support/resistance level, but also managed to rally up to the next key zone near $3850. BTC remains on a short-term buy signal in our trend model despite its relative weakness, but from a long-term perspective, it’s still in a clearly bearish setup.

With that in mind, investors should still expect a move towards the $3250 and $3000 support levels following the current counter-trend move, but traders could still hold smaller, speculative positions in the coin. Further strong resistance is ahead between $4000 and $4050, while below $3600, support is found just above $3450.

XRP/USDT, 4-Hour Chart Analysis

Ripple continues to be relatively weak compared to the broader market, and although it topped the $0.32 level amid today’s broad rally, it’s still only neutral in our trend model even from a short-term perspective. Also, the long-term setup is still hostile for bulls, and the test of the $0.28 and $0.26 levels still seems likely in the coming weeks, with strong resistance levels also ahead neat $0.3550, and $$0.3750.

Litecoin Hits Marginal New High as EOS Soars

LTC/USD, 4-Hour Chart Analysis

LTC haven’t been able to retain its leadership during today’s move, and although it scored a new marginal swing high, ending the short-term correction, the momentum of the current upswing is not convincing. Should LTC form a failed break-out pattern, our trend model will switch to neutral, but for now, the currency remains on a buy signal.

From a long-term perspective, Litecoin is still clearly in a bearish trend, so traders and investors should only consider short-term positions, but for now the break-out remains intact. The next level of resistance is ahead near $51, while is now found near $44, $38, and $34.50.

EOS/USD, 4-Hour Chart Analysis

EOS was also among the relatively stronger coins during the recent week, and after a failed move, today it surged to a significant new swing high, hitting the $3.50 resistance in the process. Our trend model remained on a short-term buy signal, during the recent consolidation, and although traders could take some chips off the table near the $3.50 level, the short-term trend is now bullish.

That said, the bearish long-term forces are still dominant in the market of EOS, and although the coin might test the $4.50-$5 zone, odds still the retest of the bear market low near $1.55 in the coming months. That said, traders could still to their short-term positions, following strict risk management rules, with support now found near $3, $2,80, and $2.55.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
1 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 51 vote, average: 5.00 out of 5 (1 votes, average: 5.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 466 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




Feedback or Requests?

Continue Reading

Bitcoin

Bitcoin Surges to Five-Week High; Crypto Bulls Reignite?

Published

on

Bitcoin and the wider cryptocurrency market surged to five-week highs on Monday, stoking renewed optimism that the end of ‘crypto winter’ was finally upon us. The sudden price surge was accompanied by a dramatic rise in trading volume, a phenomenon that was first observed in the fourth quarter.

BTC/USD: Price Update

The bitcoin price reached a session high of $3,864.00 on Bitfinex, levels not seen since the early part of January. At the time of writing, BTC/USD was valued at $3,843, having gained 2.9%.

Bitcoin has further room to accumulate, based on the MACD relative strength index (RSI). Both momentum indicators are flashing the ‘buy’ signal, based on the hourly chart.

Traders were paying a hefty premium on Bitfinex relative to other exchanges. The BTC price averaged in the $3,720-$3,730 range on Bitstamp, Bitstamp and Coinbase.

Looking at the big picture, bitcoin’s average price was $3,781, according to CoinMarketCap. That represents a gain of 4.2% compared with Sunday.

Volumes Surge

There was no immediate catalyst for the market’s sudden breakout on Monday. Rising trade volumes suggest that large-scale investors were absorbing more of the selling pressure that had re-emerged since the beginning of the year.

Bitcoin’s 24-hour volume improved to $8.2 billion, the highest since December. BitMEX,  a popular derivatives platform, accounted for 18% of the exchange-based volume. The spot market made up the remainder. These figures likely understate the true size of bitcoin’s market.

Related: Bitcoin’s Price Recovery Stalls as BitMEX Shuts Down U.S. Accounts.

It is estimated that over-the-counter trading accounts for at least half of global volumes. It recently came to light that “private bilateral contracts” have also surged in popularity among institutional investors. Read more: Bitcoin and Derivatives: Why $4,200 is So Critical

The dramatic surge in trading volume over the past four months suggests that a bearish-to-bullish trend reversal may be afoot. If that’s the case, the sharp rise on Monday could be the start of a major rally attempt that seeks to knock out $4,000 and $4,200. A rally above the latter is needed to negate the short-term bearish outlook.

Cryptoassets as a whole added more than $8 billion in value on Monday, as the market cap pierced above $128 billion for the first time since early January. Over the past 24 hours, trade volumes have surged by 40% to $27.4 billion, according to CoinMarketCap.

Bitcoin’s share of the overall cryptocurrency market fell below 52% on Monday for the first time since Jan. 10.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

Rate this post:

Important for improving the service. Please add a comment in the comment field below explaining what you rated and why you gave it that rate. Failed Trade Recommendations should not be rated as that is considered a failure either way.
0 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 50 votes, average: 0.00 out of 5 (0 votes, average: 0.00 out of 5)
You need to be a registered member to rate this.
Loading...

4.7 stars on average, based on 772 rated postsChief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi




Feedback or Requests?

Continue Reading

Recent Posts

A part of CCN

Hacked.com is Neutral and Unbiased

Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

Trending