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Analyst Claims It’s Clear Skies for Bitcoin Above This Key Level; Factors to Consider

Bitcoin’s consolidation phase seen throughout the past several weeks muddied the confidence that many investors previously had regarding the strength of its uptrend. Although the crypto’s 150% surge from its March lows has been incredibly impressive, this momentum halted as soon as it reached the five-figure price region. It has now posted two rejections at […]



Bitcoin’s consolidation phase seen throughout the past several weeks muddied the confidence that many investors previously had regarding the strength of its uptrend.

Although the crypto’s 150% surge from its March lows has been incredibly impressive, this momentum halted as soon as it reached the five-figure price region.

It has now posted two rejections at $10,500 following its rebound from $3,800 and has posted countless other rejections at $10,000 in the time since.

This has done little to bolster its market structure and has caused many investors to be concerned that it is in the process of forming yet another lower-high.

That being said, analysts are now noting that it is essentially clear skies ahead for Bitcoin once it is able to break above $10,400.

Fundamental data regarding the strength of BTC’s investor base also suggests that it may still have to ability to negate its recent bearishness and push higher in the days and weeks ahead.

Bitcoin Hovers Beneath Key Resistance, But It’s “Thin Air” Above

At the time of writing, Bitcoin is trading down marginally at its current price of $9,380. The crypto is currently inching lower after consolidating around $9,400 for the past couple of days.

The present technical weakness expressed by BTC appears to be rooted in the recent rejection it posted at $10,050. After tapping these highs, it lost its momentum and found itself caught within a downtrend that led it to $9,000.

Despite having some strong support between $8,600 and $9,000, each rejection the crypto posts around the five-figure price region seems to cause it to enter consolidation channels that are closer to its range-low support.

This does seem to be a grim sign for its near-term outlook, and it remains unclear as to what could cause it to see any major upside.

One factor that still provides hope for bulls is the fact that it is essentially “thin air” above $10,400 – meaning that there isn’t any heavy resistance above this level until significantly higher.

Mohit Sorout – a founding partner at Bitazu Capital and a respected analyst – spoke about this in a recent tweet, explaining that $10,400 is a level of critical importance.

“Hard to overstate the importance of price level BTC has hovered around for the past month. There’s only so much corn sellers can dump. Thin air above,” he explained.

Image Courtesy of Mohit Sorout. Chart via TradingView

BTC Flashes Signs of Fundamental Strength

Bitcoin’s fundamental strength may also be one factor that helps it climb significantly higher in the near-term.

Alistair Milne – the CIO at the Altana Digital Currency Fund – spoke about the amount of Bitcoin being held by investors over an extended period of time in a recent post, explaining that it is on par with that seen in 2015-2016.

“What if I told you that the amount of Bitcoin held without moving for >12 months is on course to make new ATHs (>61%) and barely changed in the March COVID panic… These levels of HODL’ing were last seen when the price was $200-500 back in 2015/16.”

Image Courtesy of Alistair Milne.

If history repeats itself, this could signal major upside is imminent in the near future.

Featured image from Shutterstock. Charts from TradingView.



Bitcoin SV, Stellar Lumens, Dogecoin Price Analysis: 21 October



As Bitcoin closed above $12,000 once more, it was pertinent to ask if the altcoin market would follow. Would traders sell altcoins to follow Bitcoin’s gains? The rising Bitcoin Dominance suggested, yes. Bitcoin SV formed a bullish divergence and made gains in the past few hours, while Stellar Lumens witnessed strong buying volume. Dogecoin was making some gains in the short-term, but the longer-term bearish trend also loomed over the asset.

Bitcoin SV [BSV]

Bitcoin SV, Stellar Lumens, Dogecoin Price Analysis: 21 October

Source: BSV/USDT on TradingView

BSV slipped beneath the short-term range from $158 to $174. However, the asset’s sellers were unable to drive prices lower as the RSI signaled a bullish divergence which saw BSV reclaim the range’s low.

The RSI moved past 50 to indicate bullish momentum, and BSV could see steady gains in the coming days alongside a bullish Bitcoin.

On the other hand, if BSV stalled at $158 for a couple of days, it might indicate that the price was headed lower.

Stellar Lumens [XLM]

Bitcoin SV, Stellar Lumens, Dogecoin Price Analysis: 21 October

Source: XLM/USD on TradingView

Both the CMF and the OBV highlighted the strong buying present behind XLM’s recent move from $0.072 to $0.086. The OBV has set higher lows (white), and the outlook for the asset would be bullish in the coming days provided OBV does not dip beneath the ascending trendline.

The CMF showed neutrality at press time as buyers and sellers were in equilibrium in the market.

The price would have to close above $0.084

Dogecoin [DOGE]

Bitcoin SV, Stellar Lumens, Dogecoin Price Analysis: 21 October

Source: DOGE/USDT on TradingView

DOGE was moving in an ascending channel as the level of $0.00257 was defended once more. The Directional Movement Index picked up steam as the ADX (yellow) moved above 20, indicating a strong trend was in progress. +DI (blue) highlighted the bullish nature of the trend.

Trading volumes have not been standstill in the past few days either, showing legitimate interest behind the asset in its most recent bounce.

The asset also posted a new low against BTC recently as Bitcoin surged past $12,200 while DOGE languished at support. DOGE/BTC was last trading at this value in 2017, December.


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Predictions Platform Polymarket Raises $4M From Polychain, Naval Ravikant and More



Polymarket, a decentralized information marketplace, has closed a $4 million funding round led by Polychain Capital. 

Announced on Monday, the round was joined by some of the industry’s most well-known advocates and investors such as former AngelList CEO Naval Ravikant, former Coinbase CTO Balaji Srinivasan, CoinShares CSO Meltem Demirors among others.

The startup said the investment will help it move to stage 2 of its beta release, which will remove technical complexities and make it easier for mainstream users to onboard and trade on the platform.

Polymarket is designed to let users place cryptocurrency bets on hotly debated topics, ranging from politics and health through to business and science.

The platform’s trading activity is turned into actionable insights and can also help hold to account those pumping disinformation in the news cycle, according to the announcement.

In essence, Polymarket allows those with an “educated opinion” to profit from correct statements and aggregates the data into what the company calls a “collective knowledge.”

Platform users can cross-check market activity against current news to better determine the truth of a given subject or statement, Polymarket said.

“One of the biggest problems with social media and discourse on the internet today is the lack of accountability,” Polymarket founder Shayne Coplan said. “Everyone has an opinion and isn’t afraid to share it.”

“At the moment there’s little downside to being wrong; this makes it really hard for regular people to discern what’s fact and what’s fiction,” Coplan added. “2020 has showcased just how bad the consequences of this can be.”

In the three months since its beta launch, Polymarket is said to have seen over $1 million in trading volume.


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Bitcoin transaction value sees 500% upswing in 4 months



Bitcoin’s average transaction has now climbed to over $150,000, translating to a 500% jump since July

The average value of Bitcoin transactions was around $25,000 in July. The last few months have since seen this value skyrocket sixfold to $150,000. The average value peaked on October 20 with a yearly high of $151,800 per transfer. Overall, the increase in average Bitcoin transaction values stands at slightly over 500%.

BTC average transaction value history. Source: BitInfoCharts

Bitcoin had two momentary peaks before the October 20 high. The first on August 17, where the value peaked at almost $121,000 — before being surpassed exactly a month later by an average of almost $130,000.

The latest surge comes around the same time as when Bitcoin’s trading dominance is increasing to heights that have not been witnessed for the past three years when the crypto hit its all-time high.

It is worth noting that Bitcoin’s current average value at $151,800 is about 190 times greater than Ethereum’s.

The average value of ETH transactions has been relatively flat compared to Bitcoin. The value has remained between an extreme of $800 and $1,500. The only significant surge was in the last week of August and early September.

ETH average transaction value history. Source: BitInfoCharts

During this period, the average transaction value rose to a high of $2,562 on September 1 that hasn’t been surpassed as of writing. There was one brief spike on September 18 that saw the value surpass the $2,000 mark and settle at $2,100. The current average value of ETH transactions are $793.

The huge disparity between the average transaction value of Bitcoin and Ethereum indicates a stronger presence in BTC markets.

Bitcoin Cash’s average transaction value has spiked several times in the same period. The highest average recorded in the three months was on August 12 where the value rose to $28,544. The value surged again to $26,093 on September 3 marking the last time the value was above the $20,000 mark.

Both cryptocurrencies have had flat trends in terms of the number of transactions over the last three months.

BTC and ETH transaction history. Source: BitInfoCharts

The only notable swell was on September 17 where the number of Ethereum transactions rose to a peak of 1.406 million. Prior to this, the highest number of transactions within the three months was 1.29 million posted on August 10.


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