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Bitcoin Reclaims Key Support Level After Drop to $34,500

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  • Bitcoin faced an extreme correction earlier today.
  • Over the span of 12 hours, the cryptocurrency plunged from the $41,000 region to lows on spot exchanges close to $34,000 and lows on futures exchanges close to $35,000.
  • BTC lost over 15% over the span of this rally.
  • The cryptocurrency has since bounced swiftly to the upside, reclaiming a key support level per analysts.

Bitcoin Reclaims Key Support Level After Flash Crash Lower

Bitcoin faced an extreme correction earlier today. Over the span of 12 hours, the cryptocurrency plunged from the $41,000 region to lows on spot exchanges close to $34,000. The cryptocurrency lost over 15% over the span of this rally.

Many thought this was the start of a larger correction. Even when the cryptocurrency was near lows, the funding rates and premiums seen on futures exchanges for BTC were extremely high, implying a continuation to the downside was becoming increasingly likely.

Bitcoin swiftly bounced to the upside, though, as buyers stepped in all at once.

The cryptocurrency has since reclaimed a key support level, according to technical analysts.

One crypto-asset trader shared the chart below after the recovery, noting that Bitcoin had reclaimed a key technical support level on its 15-minute chart. While this is not the end all and be all of support levels, analysts are optimistic that this technical occurrence could help boost the ongoing recovery.

Bitcoin does face some overhead resistance, though, that could put an end to the ongoing recovery.

Image

Chart of BTC's price action over the past few days from crypto asset trader and chartist Pierre (@Pierre_crypt0 on Twitter).
Source: BTCUSD from TradingView.com

Time to Cool Down

On-chain data may show, though, that the ongoing rally is starting to become overheated and that a short-term correction or medium-term consolidation could follow suit. Philip Swift, an on-chain analyst, recently noted that the cryptocurrency is reaching overheated levels per one key on-chain-focused indicator. Referencing the chart below, he said on the matter:

“I am starting to feel that the market is approaching overheated levels now. One data point to observe is MVRV Z-score, which looks at extremes in the data sets between Market Value and Realised Value… We can see that when the z-score enters the red zone it signals a market top. We are not there yet but a few more parabolic days up for price and we will be.”

Bitcoin

Bitcoin has long faced corrections during bull markets. In 2017, the coin regularly pulled back by 20-30 percent before moving to new all-time highs.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Macro Analysis Predicts Bitcoin Has Begun Rally Toward $100k

Source: https://bitcoinist.com/bitcoin-reclaims-key-support-level-after-drop-to-34500/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-reclaims-key-support-level-after-drop-to-34500

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Metis | Enabling Web 3.0 Through Easy-to-Use Layer 2 Next Generation Framework

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The next generation of web platforms is beginning to emerge, as the explosion in demand for DeFi projects demonstrates. Unfortunately, as the high gas fees and scaling issues plaguing Ethereum have shown, there are currently limitations to innovation and adoption. The technology behind Metis, however, enables a true breakthrough in blockchain business operations, allowing companies to easily launch decentralized companies with a full suite of management and community governance tools. Through the Layer 2 framework, Metis will act as the missing puzzle piece in ushering in the age of Web 3.0. 

Here’s everything you need to know about Metis and how it will revolutionize the blockchain industry. 

Learning The Difference Between Layer 1 and Layer 2 Blockchain Technology

Long before a contractor can begin building walls or start laying tile, they must first build a strong foundation that can support the structure for decades to come. The more ambitious the project, the stronger that foundation needs to be to support what’s built on top of it currently and anything added in the future. 

Think of Layer 1 technologies as that foundation. Much of the crypto universe is built on Ethereum, including most of DeFi. However, the platform’s popularity, combined with a lack of ability to scale, has left decentralized applications difficult to use due to high ETH gas fees. 

The costs have begun to hinder innovation and force developers to consider other blockchains and avoid using the platform altogether. 

Fortunately, there are solutions to this today, as Vitalik mentioned, “Rollups,” which can significantly improve the scalability, lower the cost, and enable more functions to be built on top of it. Optimistic Rollups, for example, are layer two constructions that enable running smart contracts at scale while still being secured by Ethereum. These constructions resemble Plasma, but trade it’s almost infinite scalability to run an EVM compatible Virtual Machine called OVM (Optimistic Virtual Machine) which enables ORs to run anything Ethereum can.

By hard-forking Optimistic Rollups and tailoring for managing a virtual entity, Metis enables the streamlined building of decentralized companies, building trust among distrusted community members, and managing all the collaborations(business activities) via blockchain-based tools. 

Metis and other Layer 2 technologies can be thought of as the framing built on top of the foundation that can correct many of the limitations of the foundational Layer 1. With a strong foundation laid down, and a proper framework in place, innovators can begin to build the future of Web 3.0 before our eyes. 

More About Metis Protocol Powering The Future of Web 3.0

Metis is a disruptive Layer 2 blockchain technology aiming to enable Web 3.0 to flourish. Using the Metis protocol, anyone can create a decentralized company in just three easy steps. 

To begin, simply visit the Metis app and input the DAC name, logo, and description; stake Metis tokens to activate, and within a few clicks, a fully autonomous, decentralized company can be launched. 

Using the Metis toolset, decentralized companies can manage their community, create incentivized tasks, build a community-based knowledge base, perform accounting, and much more at an extremely low operational cost. 

Developers and entrepreneurs can innovate without limitation, creating the future of Web 3.0 consisting of Dapps, sharing and gig economies, volunteer networks, open-source projects, etc. 

Metis is launching its own mainnet in 2021, which will further improve scalability. To learn more or leverage state-of-the-art blockchain-based tools for the streamlined creation of decentralized companies and stay updated regarding the upcoming token airdrop and public sale, visit the Metis website

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Source: https://bitcoinist.com/metis-enabling-web-3-0-through-layer-2-blockchain-framework/?utm_source=rss&utm_medium=rss&utm_campaign=metis-enabling-web-3-0-through-layer-2-blockchain-framework

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Blockchain

Bitcoin Retraces After Bouncing, Falling Below $47,000

Bitcoin is approaching a crucial support area. A strong resurgence will be mandatory for the possibility of bullish continuation to remain.   Bitcoin Bounce Retraces On Feb. 28, BTC reached the $45,000 support area and bounced upwards. It proceeded to reach a high of $52,652 four days later but has been moving downwards since. So … Continued

The post Bitcoin Retraces After Bouncing, Falling Below $47,000 appeared first on BeInCrypto.

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The Bitcoin (BTC) price has been retracing since getting rejected by the $52,500 resistance area on March 3.

Bitcoin is approaching a crucial support area. A strong resurgence will be mandatory for the possibility of bullish continuation to remain.

 

Bitcoin Bounce Retraces

On Feb. 28, BTC reached the $45,000 support area and bounced upwards. It proceeded to reach a high of $52,652 four days later but has been moving downwards since.

So far, BTC has reached a low of $46,294 in the early hours of March 5. This is still inside the body of the bullish candlestick of March 1. Therefore, it’s still inside the parameters of a normal retracement. 

However, both the MACD and Stochastic oscillator are bearish. The latter has already made a bearish cross. On the other hand, the RSI is trying to hold on above the 50-line.

BTC Daily Movement
BTC Chart By TradingView

Bitcoin Struggles to Find Support

The six-hour chart shows that the main resistance area is found at $52,476. This is the 0.618 Fib retracement of the most recent downward movement and a horizontal resistance area. 

Therefore, until BTC manages to clear it, we cannot consider the trend bullish — at least not in the short/medium-term.

Similar to the daily time-frame, the MACD and RSI are bearish.

BTC Six-Hour
BTC Chart By TradingView

Finally, the two-hour chart shows that BTC is still above the $46,600 support area (0.618 Fib retracement). 

However, there are no bullish reversal signs yet.

If BTC were to break down, the next closest support area would be found at $45,000. This is the 0.786 Fib level of the most recent move and a horizontal support area from the daily chart. 

Therefore, the loss of this level would be a significant bearish development for BTC.

BTC Short-Term
BTC Chart By TradingView

Corrective Decrease?

A look at the very short-term 15-minute chart shows a continued decrease that has been ongoing since March 3. 

The downward movement is perfectly channeling, and the significant overlap suggests that it’s likely to be corrective. This means that despite the lack of bullish reversal signs, an eventual breakout is expected.

BTC Correction
BTC Chart By TradingView

The most likely wave count suggests another upward move towards a new all-time high. 

However, a decrease below the Feb. 28 low would signal that BTC is likely to fall towards $40,000.

BTC wave Count
BTC Chart By TradingView

Conclusion

Bitcoin is expected to find relief at one of the support levels outlined and continue moving higher.

The loss of the $45,000 support area would be a major bearish development, indicating that the local low might not be in yet.

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Valdrin is a cryptocurrency enthusiast and financial trader. After obtaining a masters degree in Financial Markets at the Barcelona Graduate School of Economics he began working at the Ministry of Economic Development in his native country of Kosovo.
In 2019, he decided to focus full-time on cryptocurrencies and trading.

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Source: https://beincrypto.com/bitcoin-retraces-after-bouncing-falling-below-47000/

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Bitcoin Support at $47K “Very Strong,” Glassnode CTO Asserts After Price Falls

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Bitcoin has an extreme potential to hold $47,000 as its support level, according to Rafael Schultze-Kraft, the co-founder/CTO of blockchain analytics platform Glassnode.

The data scientist studied the number of existing bitcoins that moved within the said price bucket and placed it against other price levels. He noted that the “UTXO Realized Price Distribution” near the $47,000-level was comparatively higher than the rest in recent times, stressing that the range prompted the Bitcoin network participants to become more active than usual.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin: UTXO Realized Price Distribution. Source: Glassnode

In retrospect, a higher number of coins moving near a specific level signifies more trades. It is possible that traders and investors sold or bought more bitcoins near $47,000 than any other level around it. Given the cryptocurrency’s recent uptrend, it is safe to assume that most trades near $47,000 had a bullish outlook, which made the level ideal support for Bitcoin.

“[We have a] very strong on-chain support at $47k – around 500,000 BTC have been moved at that level,” noted Mr. Schultze-Kraft. “It is important that we hold it; otherwise, we could see low forties quickly before the next upwards movements.”

Offsetting Yield Fears?

The statements appeared as Bitcoin bled through an unaccustomed macroeconomic environment. The benchmark cryptocurrency was among the biggest losers this Thursday as Federal Reserve Chairman Jerome Powell ignored offering any future guidance on rising bond yields in the US.

Bitcoin closed the previous session 3.95 percent lower and opened Friday declining further as it logged an intraday low near $46,219. The cryptocurrency pushed against bearish attempts and attempted a recovery above $47,000. At press time, it was still wobbling around the so-called on-chain support level.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin fell by around 4 percent during Powell’s speech on Thursday. Source: BTCUSD on TradingView.com

Traders anticipated that Mr. Powell would boost the Fed’s bond-buying program to longer-dated Treasurys to contain interest rate returns on the benchmark 10-year note. Lower yields have benefited Bitcoin throughout 2020, so it was safe to assume that the Fed’s extended assistance would aid the cryptocurrency’s bull run.

But with Mr. Powell choosing to remain mum, the Bitcoin market entered an uncertainty phase.

“Speculation is harder when there is no clear upwards trend,” said Alex Krüger, an independent market analyst. “There are multiple major market drivers pulling in opposite directions, and/or trades are crowded. As is the case right now.”

“I’ve got bids down to 45k,” said another analyst. “I still definitely lean towards the low being in — this drop doesn’t surprise me at all.”

Institutional Support for Bitcoin

Ki-Young Ju, the CEO of CryptoQuant—a South Korea-based blockchain analytics platform, said that institutional capital into the bitcoin market remains higher near the $46,000-47,000 range. As of Friday morning in London, about 12,000 BTC flowed out of Coinbase Pro wallets to enter its custodian addresses, reflecting accumulation via over-the-counter desks.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin Coinbase Pro Outflow. Source: CryptoQuant

“Also,” Mr. Ju added, “it seems most US institutions haven’t sold any Bitcoin since their OTC deals. For example, custody wallets from Coinbase outflows on Dec 23, 2020 [show that] no BTC moved since then.”

Bitcoin was trading at $46,500 at press time.

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Source: https://bitcoinist.com/bitcoin-support-at-47k-very-strong-glassnode-cto-asserts-after-price-falls/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-support-at-47k-very-strong-glassnode-cto-asserts-after-price-falls

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