Why Bitcoin will fall further and where will be the new BTC bottom at which you should start building your portfolio. Source: https://wunderbit.co/en/blog/bitcoin-crash-is-coming-wk50
Bitcoin price prediction: Bearish overtones cloud BTC/USD pair as $9,700 support beckons
Bitcoin price downside is restricted to $9,700 as BTC/USD tumbles towards crucial support. Bitcoin and gold realized correlation hit 12-month high on Monday. DeFi decline is making traders cautious and Is behind today’s Bitcoin price correction. An abrupt fall below $9,700 will fill the crucial CME gap at $9,600 and provide a cushion. Bitcoin price […]
- Bitcoin price downside is restricted to $9,700 as BTC/USD tumbles towards crucial support.
- Bitcoin and gold realized correlation hit 12-month high on Monday.
- DeFi decline is making traders cautious and Is behind today’s Bitcoin price correction.
- An abrupt fall below $9,700 will fill the crucial CME gap at $9,600 and provide a cushion.
Bitcoin price prediction – Current price overview
Bitcoin price started the day at $10,492 to immediately move upwards and touch a high of $10,573 only to be rejected. The profit booking turned severe in the next few hours as the pair broke below $10,300 to touch day’s low of $10,062 and threatened to break the psychological $10K barrier.
Bulls came into few hours later to buy small dips on the hourly chart. Subsequently, the BTC/USD price once again moved past the $10,500 level. But this time, the rejection was even more violent, and the crypto king immediately rolled towards $10,138 low. Currently, the price has recovered slightly to trade around $10,225 level.
There’s a bearish overtone to the Bitcoin price prediction as BTC/USD struggles to hold vital support levels. In case the crypto king slips below the $10,000 level, the next big support at $9,700 will serve as an even stronger cushion.
Bears have dominated Bitcoin price in the last 6 hours
Bitcoin price met severe resistance at $11,200 and quickly tumbled down. During the fall, the BTC/USD pair first found support at $10,800 only to find the ground slippery. Attempts to bounce back were again met with rejections, and the price moved below the crucial $10,300 mark to touch new daily lows.
The bulls clearly look exhausted and are finding it difficult to penetrate through the resistance ceiling above at $11,000. Bearish positions are piling up as Bitcoin price moves to touch even lower support at $9,700.
BTC/USD 2-hour chart is filled with red candlesticks
Bitcoin price has now entered bearish territory on the hourly charts since it has broken below key support at $10,500. The pair has not been able to move past the SMA20 curve currently situated at $10,480. However, the rising volatility can cause an imminent breakout provided the volume rises around the 20-day Bollinger Band.
As trader Alan Masters points in below chart that if the price closes the day under 100-day exponential moving average, new lows will be in sight. The pair can even slide towards $9,200.
The MACD is showing a bearish signal as the market momentum shifts downwards. The RSI is slowly inching towards the oversold territory. Even though the hourly charts are sounding a death knell for the bulls. The psychological support at $10,000 can serve as a bounce-back price point.
So, how much decline is in store for Bitcoin price?
The daily Fibonacci patterns observed at 38.2 percent and 23.6 percent, along with the Bollinger Band curve, are painting a neutral picture with a downward bias. The price has been summarily rejected from crucial resistance at $12,000. Moreover, the Bitcoin price is now trading below the $10,500 support mark.
The pair will touch oversold territory on the hourly charts at $9,700, and it will likely witness as a strong to moderate buying action. Interestingly, it is also the weekly Fibonacci 161.8 percent retracement mark.
‘Buy the Dip’ signal from Spent Output Profit Ratio (SOPR) indicator
Glassnode’s Spent Output Profit Ratio is a leading on-chain data-based indicator. On-chain metrics can deliver insights on better predicting the market. Glassnode says that its SOPR indicator is hinting towards a buy signal as per the current Bitcoin ecosystem.
As per Glassnode, the SOPR index reflects the average stakeholder’s profit or loss scenario. It is calculated as the ratio of realized value output spent to the creation value. It shows the progress of stakeholder’s profit sales on an average. In case the SOPR value is more than one, it shows that price at which coins are being sold is more than what was paid for buying and vice versa.
Presently, the SOPR index is signalling a ‘buy the dip’ light to the traders. Philip Swift of Decentralized says that SOPR is shifting under one level, and it is the perfect time to buy the BTC/USD pair. Considering the current decline, traders will have to study other factors before putting their money on the bull case.
Bitcoin price prediction: Profit booking imminent before the leg next down
Bitcoin price has sharply declined from the $10,415 support line and now entered the bearish territory. Today marks the third straight day of bearish activity, and SMA 20 curve offers stiff resistance to any upward movement. Squeezes in Bollinger Bands on hourly charts show that volatility is extremely low. However, squeezes are usually indicative of a massive upcoming price movement. Technically, the longer the period of a squeeze, the more prominent will be the price breakout.
As of now, the price will move horizontally on the daily chart with a bearish trend on the hourly timeframe. So, as of now, it looks like the price will trend horizontally as BTC enters a period of consolidation.
Disclaimer: The information provided is not a trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
MakerDAO Users Hosed by March Flash Crash Won’t Get MKR Payouts, Say MKR Whales
MakerDAO will not compensate victims of March 12’s “Black Thursday” flash crash that left some of the decentralized finance (DeFi) platform’s investors out $8.33 million, according to a vote that closed Tuesday. The Maker community had initially voted in early April to refund sunken investors.
Nearly six months later and the community – represented by current holders of Maker’s MKR governance tokens – concluded a final vote to give zero compensation for lost funds. Some 65% of votes opted for zero compensation, with the next two options for partial compensation receiving 18% and 15%, respectively.
The vote itself was dominated by large MKR holders. Only 38 unique votes were cast, equivalent to 8.74% of MKR token holders, with the low turnout reflecting some of the current difficulties associated with governance in the booming DeFi sector.
Stepping back, many Maker users had collateral positions for outstanding loans liquidated after a sudden, mid-March crash in the price of ether (ETH). Additionally, investors were unable to maintain positions because of a backlog of transactions on the Ethereum blockchain as investors sought to flee the COVID-driven market collapse.
The one-two punch was preyed upon by market making bots that exploited the flaw to the tune of 2.4 million ETH. Broken logic in the platform’s collateral liquidation engine could be exploited under the right conditions to gobble up collateral on the cheap.
Investors have since lobbied the community for partial compensation denominated in the platform’s MKR governance token. All options included in Tuesday’s vote included MKR as the compensation vehicle. (Early on, affected investors had pushed for ETH.)
Yet, participating MKR holders were incentivized to vote against the compensation as any additional printing of MKR tokens would dilute the value of their holdings. Many community members said as much in the MakerDAO forum.
Litigation against the Maker Foundation in the form of a class-action lawsuit continues regardless of the vote’s outcome, said Adam S. Heder, the Harris Berne Christensen LLP attorney representing MakerDAO’s Black Thursday investors.
Lead plaintiff Pete Johnson filed three counts against the Maker Foundation in April including negligence, intentional misrepresentation and negligent misrepresentation. He and joining members of the suit are seeking up to $28.35 million in compensation.
“The parties have submitted briefing on the Maker Defendants’ motion to compel arbitration. We don’t know yet when the Court will issue its ruling,” Heder said via email.
The Maker Foundation declined to comment.
Kraken releases new security updates to combat phishing attacks
Crypto exchange Kraken’s Chief Security Officer, Nick Percoco, announced the release of four new security enhancements, on the Kraken platform that will be made available to all the exchange’s customers from today. Percoco further detailed the security updates in four different features named: Security Shield, Security Checkup, Device Approvals, and Device Management, with each step having its own purpose.
While Security Shield would indicate the security state of users’ accounts, Security Checkup step would make the process of securing accounts easier for users. Meanwhile, the roll-out of the Device Approvals feature would combat phishing attacks in particular. The feature would alert users if the system detects an attempt to sign in from an unrecognized device. The exchange believed that such device-approval mechanisms would mitigate 60% of phishing attacks.
In addition to this, the security releases would also update Kraken’s Security Center that includes Session & Device management. According to the Chief Security Office, Device Management would be the next step that would follow the approval of a device. This would allow users to see and manage their devices as well as users’ signed-in sessions. Percoco also said that users will be able to see all their active sessions and approved devices, something that can be revoked entirely or in any combination of these.
Kraken is said to have a large number of new security enhancements on its roadmap that will be rolled out throughout this year and continue until 2021. The Chief Security Officer revealed that these future releases would address authentication enhancements, more activity logging, and alternative methods for receiving critical notifications. However, the announcement did not mention if these security enhancements were due to any current increase in phishing attacks or whether its users had lost funds.
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