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Bitcoin whale clusters pinpoint 3 key levels for BTC price rally to continue

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According to Whalemap, there are three major Bitcoin (BTC) whale clusters in the near term that might serve as key technical levels. The $11,857, $12,256 and $12,868 levels would likely act as important support and resistance areas.

In previous cycles, whale activity coincided with significant price movements at crucial technical levels. For instance, Cointelegraph reported that a whale sold at $12,000 after “HODLing” for years. In the next few weeks, BTC dropped to sub-$10,000.

Bitcoin whale clusters. Source: Whalemap.io

What are whale clusters and why are they important?

Whale clusters form when whales buy Bitcoin and do not move their BTC holdings. This indicates that whales are accumulating BTC in the areas where the clusters materialize.

The larger Bitcoin whale cluster has formed at $11,857, with previous clusters at $11,288 to $11,465. In the near term, that signifies that the $11,857 is considered a big support area by whales.

Now, Bitcoin would have to remain above $11,857 or consolidate above it to see a broader rally. The ideal technical structure for a rally continuation would be to stabilize at $11,900.

After a major rally, some consolidation to neutralize the futures market could make the ongoing uptrend healthier.

Since Oct. 2, in just over three weeks, the price of Bitcoin climbed 24% against the U.S. dollar. In the same period, gold has slightly risen by 0.2%, as BTC outperformed most risk-on and safe-haven assets.

Throughout most of the rally, the futures market demonstrated negative or neutral funding rates. As such, the rally itself was not highly overcrowded and is not in danger of a large pullback.

Still, a corrective price movement following a month of consistent rallying could further stabilize the upward movement.

Why are whales accumulating BTC at these price points?

Whales might have been buying all the way from early $11,000s to $12,000 due to the context of the current rally.

Technically, Bitcoin broke out of a three-year range, with the daily chart confirming the highest price point since January 2018. As Cointelegraph reported, the daily candle of Bitcoin has never closed above $12,900 for nearly three years.

Atop the technical reasons, the perception of Bitcoin as a potential competitor against gold is also strengthening alongside network fundamentals. Consequently, the institutional demand for BTC has considerably spiked as seen by the rise of the CME Bitcoin futures market.

Meanwhile, researchers at Santiment, an on-chain market analytics firm, point out that BTC appears to be decoupling from other markets. Throughout historical bull cycles, when BTC demonstrated independent price movements, it caused the momentum to strengthen. They said:

“$BTC has historically thrived when its reliance on world markets, and other asset classes & industries, is minimal, and trading can operate independently without interference from non-#crypto events as distractions.”

The confluence of BTC’s resilience above $11,900, an important whale cluster, as well as various favorable technical factors may help BTC/USD overpower several bearish signals in the short term to keep the current rally going. 

Source: https://cointelegraph.com/news/bitcoin-whale-clusters-pinpoint-3-key-levels-for-btc-price-rally-to-continue

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Further Declines in Bitcoin Price Possible Though Grayscale is Crucial, Notes JPM Analyst

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Although Bitcoin has recovered from its vigorous price losses during the Thanksgiving massacre, analysts from JPMorgan Chase & Co believe that further declines may still occur.

The strategists pointed out that Grayscale, through its Bitcoin Trust, will play a significant role in future BTC price developments.

Is Bitcoin To Head Further South?

The primary cryptocurrency reached a new yearly high of $19,500 last week; thus, it came less than 3% away from the 2017 all-time high of $20,000. As the community began speculating on how long it will take to surpass that level, the trend reversed viciously.

Bitcoin headed south and lost over $3,000 of value in hours. Nevertheless, the cryptocurrency has recovered most of its losses and trades north of $18,000.

A JPM analysis, led by Nikolaos Panigirtzoglou, recently said that the Thanksgiving price drops had cleared the “previous froth in momentum traders’ positioning.” However, the strategists hinted that Bitcoin could still go lower.

“Momentum traders such as commodity trading advisors and other quantitative funds likely played a big role in the slide by unwinding long Bitcoin futures positions. Momentum traders have room to further propagate” the Bitcoin decline, noted the analysts cited by Bloomberg.

Apart from broaching “momentum traders,” the strategists also discussed various other reasons behind the price developments. Those included the rumors of new regulations proposed by the Trump administration and profit-taking.

Grayscale Is Key

The JPM strategists also highlighted the significant role of Grayscale and its Grayscale Bitcoin Trust on the market. The cryptocurrency manager is the most preferred company for institutional investors to receive exposure to Bitcoin (and other digital assets) without worrying about storing the funds.

This has been exemplified through 2020 as Grayscale has reported back-to-back recording-breaking quarterly results. The assets under management (AUM) have exploded in the past 12 months to over $10 billion. Somewhat expectedly, the Grayscale Bitcoin Trust has the most substantial share.

The analysts asserted that if there’s a decline in the interest towards GBTC, this could damage the narrative that Bitcoin has become a favorite among institutional investors:

“A failure by the Grayscale Bitcoin Trust to receive additional inflows over the coming weeks would also cast doubt to the idea that institutional investors such as family offices have embarked on a trend of embracing Bitcoin as digital gold replacing traditional gold as a long-term investment.”

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Source: https://cryptopotato.com/further-declines-in-bitcoin-price-possible-though-grayscale-is-crucial-notes-jpm-analyst/

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Biden announces nomination of Janet Yellen to lead Treasury Department

President-elect Joe Biden and his transition team have announced Janet Yellen as the official Secretary of Treasury nominee.

The post Biden announces nomination of Janet Yellen to lead Treasury Department appeared first on The Block.

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Biden announces nomination of Janet Yellen to lead Treasury Department


















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FCA Warns Britons over Cryptocurrency Broker Markets Pilot

Final rules banning crypto CFDs and exchange traded notes will come into effect on January 6, 2021.

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The UK’s Financial Conduct Authority said in a brief statement Monday that local investors should use extreme caution when dealing with unauthorized firms known to have been soliciting customers in the UK jurisdiction.

The regulator specifically pointed out that one of the brokers highlighted in the latest flurry, Markets Pilot, is offering cryptocurrency-related services to British residents without being authorised to do so.

Markets Pilot is posing as an authorised company and claims to be a trading name of Click World Ltd, Cnr Old and Church Street. Additionally, the company is targeting UK investors with a full range of offshore investment services, including cryptocurrencies.

Britons that have been approached by Markets Pilot should contact the FCA, and anyone that has transferred money to the firm should report the incident to Action Fraud, the regulator further states.

Moreover, the City watchdog emphasized that anyone who deals with an unauthorized firm is not protected by the UK lifeboat scheme, and thus cannot complain to the Financial Ombudsman Service.

FCA concerns underpin retail ban

The latest warning comes ahead of scheduled applicability of final rules banning derivatives that allow investors to take a view on the direction of the price of crypto assets. The ban will come into effect on January 6, 2021, and affects CFDs, options and futures, as well as exchange traded notes (ETNs) that relate to unregulated cryptoassets.

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The FCA estimates the prohibition would save investors £53 million ($69 million) a year in losses, but it would not force them to liquidate their existing trades.

The FCA considers these products are ‘ill-suited to retail consumers’ who cannot assess the risks of derivatives or ETNs that reference certain crypto-assets.

The UK government has also proposed to bring the promotion of crypto-assets into the scope of the FCA’s existing oversight, rather than creating a new framework specifically for these products.

Citing concern over investor protection, the authorities said that even companies that sell regulated investments with an underlying cryptocurrency element will need FCA authorization to do so depending on their activities.

Providing the FCA with power to regulate the promotion of certain types of cryptoassets, for the first time, would be the quickest way of doing this and stamping out misleading advertising.

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