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Bitcoin Will See a “Significant Retracement” If It Falls Under $8,600: Here’s Why

Analysts expect Bitcoin to see a “significant retracement” if the cryptocurrency falls below the crucial $8,600 support in the coming few days. Related Reading: The Ethereum Investment Case Has This Unexpected Achilles’ Heel Bitcoin Must Hold the Mid-$8,000s, Analysts Explain Bitcoin moving under $8,600 will spell disaster for the bull case, a top trader has shared.  The $8,600 region has held as support on multiple occasions over the past few weeks, acting as a point […]

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Analysts expect Bitcoin to see a “significant retracement” if the cryptocurrency falls below the crucial $8,600 support in the coming few days.
Related Reading: The Ethereum Investment Case Has This Unexpected Achilles’ Heel
Bitcoin Must Hold the Mid-$8,000s, Analysts Explain
Bitcoin moving under $8,600 will spell disaster for the bull case, a top trader has shared. 
The $8,600 region has held as support on multiple occasions over the past few weeks, acting as a point at which bear trends have bounced on at least three separate occasions.
The cryptocurrency moving below that level, then, indicates that bulls are no longer in control.
“As you can see $8600 is a super strong market level that has been only tested a few times previously since being in this range, and this is a level that I would really be expecting for bulls to defend. If bulls fails to defend this level then I think this could signal a pretty significant retrace for HTF momentum.”
There are other commentators that have drawn attention to the importance of the mid-$8,000s from a technical perspective.
As reported by Bitcoinist previously, a top trader recently said that Bitcoin must hold $8,700 to maintain the path of “bullish continuation” it is on. TradingView.com BTC chart annotated by BitDealer (@Bitdealer_ on Twitter)
He published the chart seen above that illustrates that below $8,700, there is a lack of market liquidity that could force BTC to plunge lower.
“If price was to close below 8700, this gap would likely fill in a high volatility quick move,” he wrote, pointing to the low-$6,000s as a likely place at which said “quick move” could bottom.
Importantly, the mid-$8,000s is also the point at which a block of Bitcoin buy orders will end.
Below is a chart shared by analyst Cole Garner. It shows BTC’s price action over the past ~two months along with the Order Book Dominance Bands indicator, which forms bands where there is a black of buy or sell orders.
The current block of buys supporting the Bitcoin price ends at $8,600. Bitcoin price chart shared by Cole Garner. The chart shows BTC’s order book data on Bitfinex.
The Fundamentals Will Help BTC Hold On
The fundamentals will help Bitcoin hold onto the crucial mid-$8,000 region, analysts say.
Bloomberg senior commodities strategist Mike McGlone released a report titled “Bitcoin $10,000 Gaining Support” earlier in June. In the report, the analyst opined that  “something needs to go really wrong for BTC not to appreciate.”
In the report, he identified upwards of 10 technical, fundamental, and on-chain trends showing that Bitcoin remains in an uptrend. “Something needs to go really wrong for #Bitcoin to not appreciate.” pic.twitter.com/eMehQdwPPZ
— Nathaniel Whittemore (@nlw) June 4, 2020 According to the cryptocurrency community, one of the main takeaways of the report is that McGlone expects for Bitcoin to trade at $20,000-28,000 this year.
Related Reading: Top Trader Explains Ethereum’s Rally to $1,400 in 2018 Was a “Red Herring” Event
Featured Image from Shutterstock Price tags: btcusd, xbtusd, btcusdt Bitcoin Could See a “Significant Retracement” Should It Slip Below $8,600: Here’s Why Source: https://bitcoinist.com/bitcoin-will-see-a-significant-retracement-if-it-falls-under-8600-heres-why/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-will-see-a-significant-retracement-if-it-falls-under-8600-heres-why

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Bitcoin Price Has Only Ever Spent 93 Days Above $11,500

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With Bitcoin’s price hovering around $11,500, recent data indicated that the asset had spent only about three months of its existence above that particular level.

BTC: Only Three Months Above $11.5K

The official launch of the first-ever cryptocurrency came in early January 2009. Born during the last massive financial crisis, Bitcoin was this “magical money” that actually lacked any significant attention in its initial years. Consequently, its price traded close to zero for a while.

Since then, however, Bitcoin started gaining traction that ultimately resulted in severe volatility throughout the years. The massive fluctuations took the asset towards an all-time high in December 2017 of nearly $20,000, and just a year later, BTC saw its price beneath $4,000.

Fast-forwarding two years and Bitcoin is currently positioned around $11,500. Although this level is nearly twice as less as the all-time high, recent data from the analytics company Skew informed that BTC hadn’t spent a lot of time above $11,500.

Historical Performance Bitcoin Price. Source: Skew
Historical Performance Bitcoin Price. Source: Skew

More precisely, BTC’s price has hovered above $11,500 for only 93 days (or three months) since January 2009.

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Fundamentals in Place

Apart from the data above, Bitcoin’s hash rate has experienced a significant boost even after the completion of the third halving in May. As CryptoPotato reported recently, the metric measuring the computing power miners use to validate transactions on the BTC blockchain reached a new all-time high of 170 exahashes per second. This represented a 40% increase in the five months following the halving.

Although the hash rate is not correlated with the price, another report suggested an upcoming price increase. By indicating that Bitcoin whales, meaning entities with at least 1,000 coins, have slowed down accumulation, Glassnode asserted that this could ultimately be a bullish sign for the asset price.

Historically, once whales have stopped buying massive quantities, this has led to an opportunity for retail investors. According to the analytics company, Bitcoin may be in the “beginning of a run-up to a market top.”

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Source: https://cryptopotato.com/bitcoin-price-has-only-ever-spent-93-days-above-11500/

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US Fed Chair Jerome Powell Says It’s Better to Be Right Than First on CBDC

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  • US Fed Chair Powell believes that the United States should focus on getting right the development of a central bank digital currency (CBDC), rather than attempt to be first.
  • While speaking on a panel hosted by the International Monetary Fund (IMF), Powell reassured that the US is “committed to carefully and thoughtfully evaluating the potential costs and benefits of a CBDC for the US economy and payments system.”
  • Although Powell admitted that the digital currency has the potential to improve the current payments system, he claimed that the Fed hadn’t made a final decision on launching its own.
  • Reports from earlier this year suggested that the Federal Reserve had started experimenting with a hypothetical digital currency.
  • Nevertheless, today’s speech showcased that the US central bank is still unconvinced by that idea. In contrast, the other global superpower China has been making serious improvements on the matter. 
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  • CryptoPotato reported earlier today that China had taken the CBDC tests to its citizens by airdropping $1.5 million worth of the digital yuan and urging them to buy goods. However, the initial results weren’t promising as users said it didn’t offer anything groundbreaking. 

Featured Image Courtesy Of CNBC

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Source: https://cryptopotato.com/us-fed-chair-jerome-powell-says-its-better-to-be-right-than-first-on-cbdc/

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Bitcoin Price Eyes $12,000 Following US Fed Chair Powell Talks

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  • Bitcoin’s price finally made a worthwhile move after surging to $11,840 on Bitstamp following days of stagnation.
btcusdh_chart
BTC/USD. Source: TradingView
  • The price has since retraced a bit to trade at its current level of around $11,780. Nevertheless, this is a move in the right direction as concerns started crippling up that we might be in for a fill of the CME gap down at $11,100.
  • Bitcoin is trading approximately only $700 away from the $12,500 area – the 2020 highest level that was reached on August 17. The next major resistance for BTC now lies at $12,000 – $12,100.
  • The move came soon after the Chairman of the US Federal Reserve, Jerome Powell, spoke on a panel hosted by the International Monetary Fund (IMF).
  • During the event, he said that the US is “committed to carefully and thoughtfully evaluating the potential costs and benefits of a CBDC (Centra Bank Digital Currency) for the US economy and payments system.”
  • He also said that it’s better to be right than be first on CBDCs.
  • Interestingly enough, BTC’s move appears to be uncorrelated to the US stock market. At the time of this writing, the S&P 500 is down about 0.4%, while the Dow Jones Industrial Average (DJI) is down about 0.3%.
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-price-eyes-12000-following-us-fed-chair-powell-talks/

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