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Bitcoin Price Risks Dropping Below $10,000 if This Support Level Fails

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As the price of Bitcoin (BTC) couldn’t break through the resistance level of $12,000, a retracement did not come as a surprise. In recent days, BTC/USD pulled back to $11,400, a correction of almost 10%.

Crypto market daily performance snapshot. Source: Coin360

Crypto market daily performance snapshot. Source: Coin360

Meanwhile, gold, silver and other commodities are also correcting due to a slight bounce of the DXY, or the U.S. Dollar Currency Index.

What’s more, multiple heavy movers like Chainlink (LINK) and Tezos (XTZ) also showed substantial corrections in recent days. Can this be a moment to buy the dip, or are further revisions imminent? Let’s examine the charts.

Bitcoin rejected at $11,800 after breaking back in the range

The price of Bitcoin couldn’t force a breakout above the $12,000 resistance level, which led to a drop back into the range.

BTC/USDT 4-hour chart. Source: TradingView

BTC/USDT 4-hour chart. Source: TradingView

As discussed in the previous article, the $12,000 area was crucial to hold for any further upward momentum. It failed to sustain this support, which means that a pullback became likely.

Immediately after the breakdown below $12,000, the price of Bitcoin fell towards the support area at $11,600. This $11,600 level resulted in a slight bounce towards $11,800. However, as the chart shows, the $11,800 area was then confirmed as a new level of resistance.

Such a support/resistance flip generally means more downside as the buyers aren’t strong enough to force the price above this resistance level. Given the weakness of such a move, more support levels below may get tested.

This is indeed what happened as BTC then dropped toward the next support level, which is the green zone, and the final crucial hurdle before a potentially quick drop to $10,000.

This key support level must hold

BTC/USDT 1-day chart. Source: TradingView

BTC/USDT 1-day chart. Source: TradingView

The bearish divergence is calling for a potential trend reversal. However, it’s not a confirmed bearish divergence, unless the market starts to make new lower lows on the daily timeframe.

As the recent low is found at $11,200-11,300, the market needs to stay above the green zone and recent low for a chance at more upside in the short term.

If the price of Bitcoin drops below the green zone, the next support zone is found at $9,600-10,000, and more pain for the bulls is on the horizon.

BTC/USD 1-day chart. Source: TradingView

BTC/USD 1-day chart. Source: TradingView

There are several examples of invalidated bearish divergences found in recent years. One of them is shown in the chart (April 2019) and it’s looking similar to the current price action.

The potential bearish divergence was spotted on the charts here as well. However, it was never confirmed as its latest low held as support. Given that the structure remained intact (higher lows, higher highs), the market continued climbing higher as Bitcoin rallied to $13,000.

The overall conclusion is that the current price action reminds me of a lot of the price action the market saw in April 2019, and history could repeat as long as $11,200-11,400 holds.

The bullish scenario for Bitcoin

BTC/USDT bullish scenario chart. Source: TradingView

BTC/USDT bullish scenario chart. Source: TradingView

The bullish scenario depends on the $11,200-11,400 support level as mentioned previously.

As long as this area sustains support and Bitcoin reclaims the $11,800 area as support instead of resistance, more upside should be expected.

Further targets for Bitcoin would then be found at $13,000. However, the main resistance area after $12,000 is $15,500-17,000. In other words, if $12K finally gives, the market will become even more bullish than before.

The bearish scenario for Bitcoin

BTC/USDT 12-hour bearish scenario chart. Source: TradingView

BTC/USDT 12-hour bearish scenario chart. Source: TradingView

Similarly, the $11,200-11,400 support level is also crucial for the bears. If this level is lost in the coming week, further downward momentum is likely, particularly toward the open CME Bitcoin futures gap at $9,7000, which is also a significant support level.

However, before this can happen, a potential retest of the $11,800-12,000 should not come as a surprise. In that regard, there are two crucial zones for the bulls and bears.

For the bulls, the $11,200-11,400 area must hold, after which the price of Bitcoin needs to break through $11,800-12,000.

For the bears, the $11,800-12,000 must sustain as resistance, and the $11,200-11,400 area needs to fail as a support level.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/bitcoin-price-risks-dropping-below-10-000-if-this-support-level-fails

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Chainlink Price Crosses Above $12.5 and Reclaims Lost Support

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Chainlink, one of the lucrative projects amongst the top 10 coins of the global crypto market, is seen pulling back just like any other altcoin of the market, including the largest cryptocurrency by market capitalization—Bitcoin. The entire crypto market is seen losing the winning streak, including the top 10 except Tether—the global crypto market’s stable coin. 

Chainlink trading right after Bitcoin Cash on the 6th position is seen shedding its two-day gains as the price experiences a steep dip at $11.2. Alongside, the Chainlink platform gained all the limelight in the past quarter when it hit an all-time high, a Dollar below $20, around $19.85. 

eToro Crypto

Over the past three years, Chainlink traded like completely void crypto, unable to draw user’s attention until the current year’s collaborations and integrations could manage to lure investors and networkers for one of the most lucrative cryptos and platforms now. 

Chainlink’s Price Feed a Noteworthy Transition 

Alongside, one of the most noteworthy transitions of the platform that is hired by many other networks is Chainlink’s Price Feeds. Many different platforms leverage the price feed facility from Chainlink at three aggregation levels, i.e., the data provider level, node operator level, and the network level. 

This smart contract platform is worth the hype its native coin LINK attracted in the 3rd quarter when it spurred as high as $19.85, while currently trading at $12.77.

Chainlink Price Analysis

Chainlink News
LINK/USD Chart By TradingView

Today, at the press time, Chainlink price was spotted below $15 at $12.7 after drawing a notable uptrend but failed to keep up due to loss of momentum and a steep correction in the past two days to test lows at $11.2. LINK/USD when declined below $12, tested 50-day daily support, and declined even below; however, the coin regained the lost support at $12.09, as it spiked above $12.5 at the time of writing. 

With the current strengthening in price, Chainlink reclaimed both the MAs’ support on the daily chart. Alongside, it was two days back when the bearish candlewick almost breached the lower 20-day Bollinger Band on the daily chart with a steep correction after a gaining spree. 

However, the recent bullish candlewick formed led to regaining the lost traction but is continuing to draw a bearish crossover as the signal line crosses above the MACD line. The RSI is seen plummeting from the overbought region after the LINK price decline on the daily chart, lies at 48.02.

Source: https://www.cryptonewsz.com/chainlink-price-crosses-above-dollar-12-5-and-reclaims-lost-support/

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Acala: DeFi Hub & Stablecoin Platform for Cross-Chain Liquidity & Apps

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Acala is a DeFi platform that supports cross-chain operability through its stable coin aUSD.

During the summer of 2020, the introduction of the COMP token sparked the decentralized finance (DeFi) race with millions of investors pitching into either benefit from yield farming or just being able to take a loan using cryptos.

After COMP, many tokens tried to mimic the success of COMP and jump off the DeFi bandwagon, many succeeded while many failed to catch up. With the majority of tokens operating upon their specialized blockchain, many shortcomings were apparent.

A new blockchain made by an up-and-coming firm could handle so many transactions per-minute until traffic starts to pile up, creating bottle-necks, delayed transactions, and increased transactional fees. This happened over and over again, and even ETH gas prices hit record levels.

As an integrated multichain protocol, like Polkadot, Acala can trade information with other blockchains in the DeFi ecosystem. This allows for Acala to implement bridges to the Bitcoin blockchain, enhances transactional speed and overall efficiency across many chains so that costs are also low.

Acala: The Founders

Acala’s integration into Polkadot was not coincidental, as there are still other multichain protocols out there, but Polkadot is the chain of choice. This is the culmination of years of experience, trust, security, and synergy between the Polkadot eco-system teams, Laminar, Polkawallet, and direct support from Polkadot’s founder.

The team consisted of three brilliant minds, Bryan Chen who had the opportunity to work closely with Dr. Gavin Wood, the founder of Polkadot, Fuyao Jiang the founder of Polkawallet, and Ruitao Su founder of Laminar. They met in Hangzhou, China in 2019, they soon began the development of Acala.

Acala was spearheaded after the project received a large grant by the Web3 Foundation, also run by Gavin Wood, giving the team the much needed monetary and technical support from Polkadot. The grant was used to develop the Acala’s stable coin, which is now known as aUSD.

Acala Network
Acala Network

Stablecoin: Acala Dollar

One of the main selling points of Acala is its stablecoin, Acala Dollar or aUSD.

Unlike 99% of stablecoins in the market that are backed by fiat which could cause a few restrictions such as the ability to be censorship-resistant, go permissionless, and be trustless.

Acala Dollar is backed by different valuable cryptos such as Bitcoin, Ether, and so on, and that allows it to retain its decentralization.

The Acala Dollar prides itself on its ability to be used and transferred freely throughout the Polkadot multichain ecosystem which means any token within the protocol could be turned into Acala Dollar.

With a system-wide presence, the aUSD should be a boon to liquidity in the DeFi ecosystem.

The DeFi hub of Polkadot

The meat of Acala consists of two protocols, Honzon and Homa. These are the core functions that make up the Acala system.

The Honzon protocol is where interoperability comes into play, users could create Acala Dollar by creating a collateralized debt position (CDPs) and they could use any token within the protocol to deposit.

CDPs could also facilitate loans in Acala Dollar and again, could be used in any network that is on the protocol.

As for Homa, it powers the liquid staking feature within Acala, it lets users stake the DOT token and receive the liquid DOT or L-DOT which could be used to generate more Acala Dollars or to easily transfer and trade across the Polkadot platform.

What is Acala?
What is Acala?

Your Turn to Take Control

As a truly decentralized platform, power is given to the investors.

The existence of Acala’s native token or ACA is not without a purpose. It could be used as a regular token on a blockchain, to settle fees, trade, so on and so forth. But what makes ACA special is that it gives users voting rights and the power to have a voice on important protocol decisions.

Karura on Kusama

Kusama is essentially a similar version of Polkadot with virtually the same code. From an outside perspective, Kusama may seem as if it is a test-net for Polkadot, but it’s fully-fledged features and the community may say otherwise.

Kusama usually gets the newest features to experiment with, and if it works, it will be implemented onto Polkadot.

With Polkadot receiving Acala as its DeFi hub, it is only fair that the Kusama community deserves the same, and Karura is the answer. As previously stated, Karura will be exactly like Acala code by code.

Karura will also enjoy staking liquidity, where users could stake the native token KSM to receive liquid KSM or L-KSM and is capable of performing any DeFi function similar to L-DOT.

Kusama
Polkadot Team Announces Kusama “Canary Network” for Experiments

Users on Kusama could also enjoy cross-chain liquidity by bridging, therefore removing any additional ETH in fees associated with wrapped tokens but rather, use the token on hand to settle those fees.

Aside from Karura being capable of performing basic DeFi applications such as making a loan, trading on the decentralized exchange, and earnings from yielding, it is also an open governance platform where the community will vote upon future changes of the network.

For now, Polkadot and Kusama will be operating side by side with each other and so will Acala and Karura respectively. The future of the platform is for the two systems to interact with each other and become interoperable with one another.

What is a PLO?

PLO, or Parachain Lease Offering in simple terms is a way for the Polkadot network to lease a Parachain in their ecosystem, a parachain will most often be developed as a blockchain.

As there are limited amounts of parachain in a protocol, these leases will allow developers to bid for a chance to lease a spot and let the market demand determine what price it should be for a leasing period of two years.

After integration with Acala, Karura will then host its PLO which is scheduled to happen in Q4 of 2020. This will be very exciting for developers who are interested in the Polkadot and Kusama protocols as Kusama encourages risk-takers and “enabling rapid progress and growth”.

So if your startup wishes to move and grow fast, this could be the place for you.

More to Come!

As of the time of writing, Acala has already laid out its plans for 2021 with more exciting features such as the inclusion of a Council Governance, enabling cross-chain asset Bitcoin, which could happen during Q1, full EVM and smart contract support, support for more cross-chain assets for Q2 and for Q3, enabling liquid democracy.

Acala is Well Designed and Has Support

Though investors around the world had all encountered hardship during the dreaded year of 2020, it is undeniable that it is the most exciting year for the Polkadot ecosystem. With Acala being the leader of decentralized finance, investors on the protocol now have more opportunity to somewhat make back what they have lost during the pandemic.

Better yet, it has also been an exceptional year for the Kusama community. With the introduction with Karura, hand in hand with Acala, the future for this family of blockchain in 2021 will not only be filled with opportunities for developers but also filled with profitability to investors as well.

If you want to learn more about the Acala ecosystem, or any of its features, just click here for more information!

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Source: https://blockonomi.com/acala-guide/

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BTC Slips Below $17,000 As Bitcoin Whales Are Ready for the Dump

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Bitcoin bulls should take a moment of caution as this might not be the right time for accumulation. As per the latest reports, Bitcoin Whales have accelerated depositing of their BTC holdings to exchanges. Meaning, we can possibly see heaving selling, and dumping in the short term.

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Bitcoin is already facing selling pressure as the BTC price corrects another 5% slipping below $17,000. At press time, Bitcoin is trading at a price of $16,886 with a market cap of $313 billion. Cryptocurrency on-chain analyst and CryptoQuant CEO, Ki-Young Ju, has given a red alert.

As per the data from Glassnode, the number of Bitcoin Whales (investors holding over 1000 BTC) has reached an all-time high. The total number of Bitcoin whales worldwide is over 2000 as per the Glassnode data.

There’s been a steady rise in the number of Bitcoin Whales over the last few years, and more so in 2020. It looks like when the BTC price tanked during the March 2020 correction, whales accumulated in big numbers. Note that despite sizeable institutional participation this year, Bitcoin whales still dominate the BTC ownership and price movement as of date.

Bitcoin Heading for $14,000 And Possibly Even Lower

Just before Wednesday’s market crash, CNBC’s Brian Kelly had already warned of possible correction and Bitcoin going all the way to $12,000. Kelly noted that massive movement in the altcoin space has triggered the FOMO and attracted speculative investors.

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Kelly noted that the surge in newly created BTC addresses is also a sign of caution. He said: “Whenever you get that big of an address growth implied, that is a caution sign”. Another popular market analyst Peter Brandt said that a 37% correction from the top is on the cards.

One of the major factors preventing BTC to cross its all-time high of $20,000 is that post that level, Bitcoin will enter a price discovery mode. Above $20,000, there’s no historical data to suggest how BTC will show its movement. Analysts think that after crossing its ATH, Bitcoin can settle anywhere between $25,000 and $100K. Thus, BTC bears and sellers are aggressively defending their position and interest while not letting it move past $20,000.


To keep track of DeFi updates in real time, check out our DeFi news feed Here.

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Author: Bhushan Akolkar




Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Source: https://coingape.com/btc-slips-17000-bitcoin-whales-ready-dump/

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