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Bitcoin Price Defends Critical Support Following Pullback; Bulls Eyeing Reversal 

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Hopes of a bullish revival for bitcoin have not been lost in spite of the recent pullback, as the cryptocurrency continues to trade above a psychologically significant inflection point. The real test is whether bitcoin can maintain its holding pattern for the rest of the week as bearish headwinds subside.

Bitcoin Price Update

The bitcoin price stabilized Wednesday following a nearly 6% plunge earlier in week. The largest cryptocurrency by market cap has spent the majority of the trading session above $6,400, a level that proved difficult to penetrate following the most recent bear cycle.

More importantly, bitcoin is trading well above the psychologically important $6,000 support. Defense of this level in the coming days could ensure that the scale does not tip in favor of the bears.

Beyond this point, BTC shows no immediate threat of re-testing last month’s swing low of around $5,760.

At last check, BTC/USD was hovering around $6,410, where it was virtually unchanged compared with 24 hours earlier.

At the time of writing, upward momentum is being constricted by diminishing trade volumes, with turnover hovering below $4 billion. As Hacked previously reported, daily turnover of $4 billion or greater is commonly associated with higher prices. Volumes exceeded that critical level earlier in the day as prices rebounded from a daily low of around $6,320.

The broader cryptocurrency market remains in a holding pattern in anticipation of bitcoin’s next move. The total value of all cryptocurrencies in circulation was little changed at $253 billion following a deep $20 billion plunge on Tuesday.

Bitcoin Bulls Come Out in Full Support

Bitcoin’s prolonged downtrend has tested the resolve of its most ardent bulls, but for the likes of Tom Lee and Julian Hosp, there’s still plenty of reason to be optimistic.

Hacked reported last week that Tom Lee is maintaining his price target for bitcoin at $25,000 for the year. The Fundstrat co-founder was believed to have downgraded his position to around $20,000 before clarifying his outlook on national television. Lee maintains that bitcoin has historically traded at 2.5 times its mining costs. As the cost of mining a single bitcoin swells to $9,000 from the current level of $7,000, a price target between $22,000 and $25,000 is reasonable, according to Lee.

Meanwhile, TenX co-founder Julian Hosp is standing by his long-standing $60,000 price target. Citing positive regulatory developments, Hosp recently told CNBC he is “quite confident” that a prolonged uptrend is on the immediate horizon.

Interestingly, Hosp predicted last year that bitcoin will fluctuate between $5,000 and $60,000 in 2018.

The Forbes bitcoin price estimator is pegging end-of-year prices at around $10,000. Though significantly lower than what the bulls are saying, that represents an increase of 56% from current levels. The estimator calculates bitcoin’s future value based on multiple parameters, including transaction volumes and the number of users.

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.

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4.6 stars on average, based on 498 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Bitcoin

Bitcoin Price Rally Shows Promise After Technical Breakthrough

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Bitcoin is eyeing a potentially bigger breakout this week after prices crossed the 20-day and 50-day moving averages, signaling renewed momentum for the largest cryptocurrency.

Bitcoin Price Levels

The bitcoin price touched a new intraday high of $6,761 on Tuesday, as trading volumes topped $4.9 billion for the first time since July 6. More importantly, the recent uptrend pushed prices above their short-term moving averages. The 50-day MA was breached for the first time since May.

Relative strength has also shot up into bullish territory, with values rising above 60, according to Barchart data.

Bitcoin attempted a similar breakout last weekend but was eventually pushed back to the $6,100-$6,200 region as part of a market-wide breakdown that came to a head on July 12. However, BTC/USD continued to defend $6,000, a sign that the market had put a firm bottom on prices.

With a short-term bottom established, prices may be poised for a re-test of the July 8 high of $6,886. From there, the psychologically significant $7,000 comes in play.

Crypto Market Consolidates

The broader cryptocurrency market continued to show poise Tuesday as the majors continued to trade near weekly highs. As Hacked reported earlier, the cryptocurrency market cap swelled more than $20 billion at the start of the week amid reports that BlackRock is exploring a potential entry into the blockchain arena.

Positive news has kept coming after IBM confirmed it is working on a new stablecoin project to help banks streamline international payments.

Bitmain, China’s largest bitcoin mining manufacturer, was also in the headlines after announcing a stake in Block.one, the parent company behind EOS. CCN also reported Tuesday that Bitmain has set up a 20,000 square-foot facility in Silicon Valley ahead of its planned initial public offering (IPO) later this year.

Last month, the company concluded a successful $400 million funding round, which catapulted it to the top of the global blockchain ranks.

As Hacked previously reported, the cryptocurrency market has largely discounted the wave of positive developments taking place over the past three months, a sign that regulatory scrutiny was keeping investors on the sidelines. Trading activity at the start of the week suggests more capital is flowing into the market, though the absence of new traders is generally reflected in overall trade volumes.

That said, 24-hour trade volumes crossed $15 billion on Monday for the first time in over a week.

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.

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4.6 stars on average, based on 498 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Bitcoin

Frenzy to Get Bitcoin ETF Listed Is Clogging Up the SEC’s Email

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The Securities and Exchange Commission is apparently fielding a tidal wave of messages from crypto-currency enthusiasts after an exchange recently sought approval to list a Bitcoin ETF.

It has been three weeks since the SEC first asked for feedback on Cboe Global Markets Inc.’s request to change its listing rules and allow a crypto exchange-traded fund.

Since then, more than 90 individuals have submitted comments. That’s 10 times the number of responses the SEC previously received when it asked for opinions on another Bitcoin ETF listing back in April. It is apparent that the appetite for such a product is far higher then before.

The over-enthusiasm of the blockchain community is also spilling over into other areas of regulation. For instance, out of 19 of 21 comments left on the agency’s potential ETF rule change are desperately begging for the Bitcoin fund. Furthermore, the actual proposal for the ETF doesn’t mention Bitcoin, crypto or blockchain on any of its 286 pages whatsoever.

The SEC has spent much of the last 12 months preoccupied with damping attempts to bring a Bitcoin ETF to market.

After the currency’s precipitous climb to more than $18,000 last year, the commission in would-be issuers to withdraw their applications until asset managers could reliably answer a series of questions on custody, liquidity, market manipulation, valuation, and arbitrage. Bitcoin has since fallen to around $6,600, although it was rallying all of yesterday.

Although there were many alternately entertaining and informative comments, the commenter who best summed up the fervor of crypto left his comment under the pseudonym, “Noah’s Ark of Crypto.”

He said, “To all the Peter’s Bob’s, Linda’s and Nancy’s reviewing this bill, this all comes down to one thing: Innovation. Do you want to be at the forefront of historical financial technology or do you want to be left behind as the plebs of the western world?”

Brutal. But potentially warranted.

A more serious take was left by an analyst ostensibly employed by analyst firm Ernst Young. The commenter wrote, “Creating regulations for crypto ETF’s allows for certainty and reliability to emerge in a market that desperately needs it.

As the rise of crypto use-cases becomes more prolific it is of the utmost importance to the crypto community, as well as in the best interest of the United States financial system at large, to engage in drafting regulations to mitigate fraud, corruption, and dubious practices.

The SEC, coupled with other levers of regulation such as FINRA, hold the largest opportunity to propel cryptocurrency to new all-time highs by shoring up uncertainty in the market. Please don’t squander this opportunity. Thank you.”

Both comments seem to share the assessment that if the SEC does not relax its oppositional stance the only losers will be the United States relative to other countries.

Since this new filing was released for comment, the SEC has also postponed a decision on another prospective Bitcoin-related listing change until later this September.

Both requests were made by Cboe, which has repeatedly urged the SEC to consider approving crypto ETFs. It will be interesting to observe if the SEC has changed its mind and/or will bow to public pressure.

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.

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Analysis

Crypto Update: Technical Setup Unchanged Despite Encouraging Rally

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Cryptocurrency bulls could breathe a sigh of relief on Monday as the secular uptrend in the most valuable coin got saved yet again, as BTC rallied above $6500 for the first time in a week after a low-volume consolidation period just above the $6000 level. All of the majors joined the rally as correlations remain very high in the segment, and the market recovered 10% on average with the total market cap of the coins getting back to $275 billion.

Despite the rally, the top coins are still stuck under key resistance levels, as the recent swing highs are still above the current prices and from a short-term standpoint, the downtrend is still intact. Until a move above the crucial levels, traders should still stay away from opening new positions, as odds continue to favor another test of the June lows.

That said, given the still intact long-term bullish setups in the most important digital currencies and the very negative sentiment that developed thanks to the long declining trend, a short-term trend change could be ahead. A bullish leadership is still yet to form, although Bitcoin’s short-term relative strength is a positive sign.

BTC/USD, 4-Hour Chart Analysis

In BTC’s market, all eyes are once again on the $6750-$7000 zone that has capped the really attempts for a month now, and below that zone, the largest coin remains on a short-term sell signal. As the coin didn’t hit a lower low, a bullish pattern could form in the coming weeks, but until it remains in the current trading range, traders shouldn’t enter the market. Support above the long-term $5850 level is found at $6500, $6275, and $6000 while further resistance is ahead at $7350.

Altcoins Slightly Lagging Behind Amid Broad Rally

LTC/USD, 4-Hour Chart Analysis

The major altcoins are in very similar short-term technical setups, thanks to the strong correlation between the coins, and the most bearish coins, like Litecoin, NEO, Monero, and Dash are still below the key support levels that they violated in June. While the previous lows held up this weekend, investors should still remain defensive with regards to the relatively weak currencies.

LTC/USD, 4-Hour Chart Analysis

That still points to a dangerous long-term setup in the segment, and further technical progress is needed to switch the segment-wide trend. Ethereum remains below the key $500 level, although the coin managed to rally above the $475 level yet again, despite being relatively weak from a short-term perspective compared to BTC.

A rally above $500 would be a very positive short-term sign for ETH, and it could trigger a move to the $555-$575 zone. Primary support is at $450, with further levels at $420, $400, $380, and $360, and below $500 the short-term sell signal is intact.

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.

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4.6 stars on average, based on 293 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.




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