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Bitcoin Price Risks Further Pullback as Bearish Trend Strengthens; Cash App Leaves Room for Optimism

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Bitcoin’s price was getting very little reprieve from the sellers on Tuesday, as the market looked poise to test a new yearly low. This comes despite flashing oversold levels on the relative strength index (RSI).

BTC/USD Update

The bitcoin price swung as low as $3,326 on Coinbase Pro, where it was approaching the lowest levels in 15 months. It last traded at $3,350, having declined 4% from the previous day. The leading digital currency registered similar levels on Bitstamp and Bittrex. However, it traded at a $100 premium on Bitfinex.

Looking to the aggregate data courtesy of CoinMarketCap, we observe an average value of $3,414.93. That represents a drop of 4.2% over the 24-hour period. That gives bitcoin a total market cap of $59.5 billion, which accounts for 55% of the entire cryptocurrency market.

Trading volumes have dropped over 10% in the last 48 hours, though options markets continued to dominate. On Tuesday, BitMEX processed 23% of bitcoin’s trade volume on virtual currency exchanges.

Bitcoin CME Futures (BTZ) for December settlement had 1,105 active contracts at the time of writing. Bitcoin CBOE Futures (BGZ) had 1,041 contracts. The futures contracts last traded at $3,330 and $3,335 respectively.

As Hacked previously noted, the bitcoin price is likely to test new yearly lows over the short term as the sellers target the $2,800-$3,200 support zone. A test of that critical region is likely before the end of the month. Until now, there’s no evidence that bargain hunters are playing the rebound, which means investors are still on hold until a definitive bottom has been reached.

Cash App Surges

Square’s highly popular Cash App, which lets users buy bitcoin, has become the no. 1 finance app on the Google Play Store. In doing so, it also surpassed Coinbase as the largest bitcoin buying app in the United States. Astonishingly, Cash App has also surpassed YouTube on Apple iOS to become the no. 1 free mobile application on the platform.

The explosion of Cash App suggests that demand for bitcoin, especially among millennials, isn’t as low as previously thought amid the downtrend. More importantly, it signals the rise of digital payments in the world’s largest economy. This latter trend could have important implications for cryptocurrency payments as merchant adoption grows.

Square CEO Jack Dorsey believes bitcoin could one day become the currency of the internet. As such, Square is looking to integrate cryptocurrencies as a way of overcoming inefficiencies in the current payments system.

Intercontinental Exchange announced earlier this year that it is teaming up with some of America’s largest businesses to boost merchant adoption of bitcoin and other digital currencies. The Bakkt initiative, which launches its physical bitcoin futures market in January, will eventually support crypto payments at the retail level. Although it’s not entirely clear when, or how, this will be accomplished, partners like Starbucks and Microsoft could make the promotion of bitcoin payments much easier.

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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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Bitcoin

Bitcoin Turns Defensive Following Sunday Slide; Binance Euro Platform Sees “Huge” Demand Amid Brexit

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Bitcoin traded within a narrow range on Monday, after a sharp and sudden reversal during the previous session dragged prices back toward $3,500. The largest digital currency by market capitalization faces renewed headwinds in the wake of yet another failed attempt to break through the $3,700-$3,800 range.

BTC/USD Update

The bitcoin price slipped 0.4% on Monday to $3,581.16, according to aggregate data provided by CoinMarketCap. Bitcoin fell 4% on Sunday in the span of an hour, where it briefly pierced below $3,550. During the previous session, BTC had gained 2.5% as part of a broad market rally that included altcoins and tokens.

The following chart highlights bitcoin’s present value via Bitstamp. Weak momentum via the MACD can be clearly observed.

A sustained drop below $3,550 would spell trouble for bitcoin, as it would mean the loss of a long-term vital support. This would likely lead to an imminent drop to the $3,400 region and, possibly, a re-test of the December low near $3,100. Another possible scenario is a bounce off $3,400, which would keep prices very much rangebound.

Trading in BTC has picked up sharply since the beginning of the year, with daily volumes climbing above $5 billion. Over the last 24 hours, more than $5 billion worth of BTC traded hands on virtual currency exchanges. BitMEX continues to be the largest by overall volume, though its share has declined after it announced the closure of U.S.-based accounts.

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

Bitcoin’s market cap is currently valued at $62.6 billion, which represents 52.4% of the overall crypto universe. Its share has steadily increased during the bear market as interest in altcoins and tokens continued to diminish.

Europe and the Future of Crypto

Cryptocurrency exchange Binance has shined the spotlight on the European region after the company announced it would expand its fiat-to-crypto offerings to the region. The leading exchange will service the region through the Island of Jersey, a self-governing entity of the United Kingdom. The Binance Jersey platform will allow traders to buy bitcoin, Ethereum and other cryptocurrencies through traditional fiat channels like the euro and British pound.

Binance CEO Changpeng Zhao, also known as CZ, said the new exchange is “overwhelmed with registrations.” As Forbes recently noted, the strong demand for crypto trading comes at a time of heightened uncertainty regarding Brexit. That uncertainty has not only roiled traditional financial markets, it has cast a dark shadow over London’s role as a traditional banking hub.

Although bitcoin and Brexit aren’t directly linked, cryptocurrency regulation in Europe is likely to crystalize this year. It remains to be seen whether this will serve as an added draw for investors to diversify into digital assets as a store of value should Brexit implode.

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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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Bitcoin

Bitcoin Reverses Gains as Bears Eye Breakdown of Major Support Level

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Bitcoin swung lower on Sunday, giving back all of Saturday’s gain and setting the stage for a possible re-test of a long-term support level.

BTC/USD Update

Bitcoin’s price fell 4% to $3,596.96, where it was approaching an important long-term support. That level is located at $3,550. A successful penetration south by the bears could set the stage for a bigger drop toward new yearly lows. As a refresher, bitcoin bottomed near $3,100 last month before rebounding more than 30%.

Read: Bitcoin Approaches “GTFO” Level.

The bulk of the selloff on Sunday occurred over the span of one hour beginning around 06:30 UTC. Trading volumes have remained elevated throughout the session, with roughly $5.4 billion worth of BTC trading hands on virtual currency exchanges.

More on this story: Return to $100 Billion Awaits as Crypto Market Loses $5B in One Hour.

The leading digital currency received a boost heading into the weekend, as buyers re-emerged following a period of hesitation. Bitcoin climbed back above $3,700 on Saturday before the latest reversal took root.

Broad Market Reversal

Even with the recent decline, bitcoin’s share of the overall cryptocurrency market was little changed at 52.5%. That’s because altcoins and tokens registered bigger percentage losses, with Ethereum, bitcoin cash and EOS each falling 4.5% or more.

Alternative cryptocurrencies tend to gravitate around bitcoin, especially during bearish trends. Justified or not, bitcoin continues to be a major influence on how other assets perform. At the time of writing, the total cryptocurrency market cap was worth $119.8 billion.

Trading across all virtual assets has remained elevated over the last 24 hours, with total volumes exceeding $16.7 billion. Cryptocurrencies have seen a substantial rise in circulation over the past three months as long-dormant accounts became active once again.

In less than one month, cryptoassets will enter its longest bear market in history, according to CNBC’s Ran NeuNer. As of Sunday, the bear market has stretched on for 394 days. The longest on record was seen back in 2014-15 when the bear trend lasted for 420 days.

2019 could be a year of accumulation for bitcoin, as long-term holders and institutional investors look to capitalize on low prices. As we recently speculated, bitcoin will likely prove to be an attractive investment in the $2,000-$4,000 range. The current hesitation reflects uncertainty about whether the market has reached a definitive bottom.

Read: Bitcoin’s Year of Accumulation.

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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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Crypto Markets Get a Boost Heading Into the Weekend as Debate Over Bitcoin ETF Intensifies

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Cryptocurrency prices rose on Saturday, alleviating the risk of an imminent pullback following days of mostly lateral moves. As history has shown, longer periods of sideways trading are often followed by brisk selloffs in bitcoin and altcoins.

Flush of Green

The biggest cryptocurrencies all reported gains at the start of the weekend. Bitcoin, the largest by market cap, climbed back above $3,700 in a show of momentum for the bulls. At last check, the bitcoin price was valued at $3,744.11, having gained 2.5% from Friday.

Bitcoin’s price broke out on Monday but failed to generate sustained bids throughout the week. As a result, it spent most of that period hovering between $3,600-$3,700. Bitcoin faces a major long-term support at $3,550; a break below this key level could be a momentum killer for the bulls.

The leading digital currency continues to be a good barometer for the overall market. With a market dominance rate of 52.5%, bitcoin has a direct impact on how altcoins and tokens perform. It comes as no surprise that coins other than bitcoin rose by more than $2 billion on Saturday, according to CoinMarketCap.

The total market cap of all cryptocurrencies improved to $124.7 billion, up markedly from a 24-hour low of $120.9 billion.

Litecoin was the top gainer among major cryptos, rising 4.4% to $32.65. XRP added 1.7% to $0.3313, Ethereum climbed 2.5% to $125.01 and bitcoin cash rose 1.4$% to $130.70.

Outside the top-ten, IOTA rose 4.1% to $0.3246. NEO advanced 5% to trade at $8.09.

Bitcoin ETF Debate Continues

The U.S. Securities and Exchange Commission (SEC) has a big decision to make in roughly five weeks: approve or reject the VanEck SolidX Bitcoin Trust. Unlike previous crypto ETF applications, the VanEck-SolidX application proposes a physically-settled bitcoin fund that addresses many of the SEC’s ongoing concerns around investor protection and market manipulation.

Some investors are clinging to the hope that SEC approval of the VanEck-SolidX product will give the market a much needed boost by the end of the first quarter. But the impact of the approval/rejection could depend largely on how the market performs heading into the decision, now slated for Feb. 27. As Hacked reported last month: “The rejection of an ETF approval could affect the market if the price of Bitcoin has been increasing in anticipation of the announcement.” More here.

The consensus among analysts and market observers is that the SEC is unlikely to approve any bitcoin ETF this year. This view was recently echoed by bitcoin bull and CNBC contributor Brian Kelly, who says the bitcoin futures market isn’t mature enough to allow for an ETF to be approved. He didn’t comment specifically on the VanEck application, which has been designed as an alternative to futures-linked products by holding a repository of physical BTC as opposed to derivatives.

The SEC’s Office of Compliance Inspections and Examinations (OCIE) named crypto as one of six regulatory focal points for 2019. In a recently released report, OCIE said: “Given the significant growth and risks presented in this market, OCIE will continue to monitor the offer and sale, trading, and management of digital assets, and where the products are securities, examine for regulatory compliance.”

For more on this story, read: As Race for Bitcoin ETF Heats Up, SEC Identifies Cryptocurrency as a Top Priority in 2019.

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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2 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 52 votes, average: 5.00 out of 5 (2 votes, average: 5.00 out of 5)
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4.7 stars on average, based on 743 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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