Bitcoin continued its sideways movement this week as it remained around the $11,600 level. However, during the week, the cryptocurrency did push higher as it penetrated above the $12,000 resistance to reach the $12,400 level.
Unfortunately, it was unable to sustain these highs as it rolled over to fall beneath $12,000 at the start of the week. Bitcoin has since dropped further as it reached the support at $11,650 (.236 Fib Retracement). A rising trend line also bolsters this support.
The fading momentum, coupled with falling volume, puts Bitcoin in a precarious situation that could lead to it dropping back toward $11,000.
If the sellers do break beenath $11,650, the first level of support lies at $11,300 (downside 1.172 FIb Extension). Added support is found at $11,150 (.382 Fib Retracement), $11,000, and $10,783 (.5 Fib Retracement).
On the other side, if the bulls can regroup at $11,650 and push higher, resistance lies at $11,800, $12,000, $12,100 (1.272 Fib Extension), and $12,400.
Ethereum dropped by 5.5% this week as it falls into the $408 support. Last week, the coin pushed higher above $400 to reach the resistance at $438, provided by the August 2018 high price. This allowed Ethereum to create a fresh 2-year high.
During the weekend, ETH rolled over from this resistance. The coin eventually found support at $408 (previous flipped resistance) as the buyers battle to defend this level.
Ethereum did spike lower during the week to reach the support at $395 (.236 Fib Retracement), but the bulls quickly stepped in and allowed it to rebound above $400.
A break beneath $409 is likely to drive Ethereum below $400. If this is the case, support lies at $395 (.236 Fib Retracement), $382 (downside 1.272 Fib Extension), $375 (downside 1.414 Fib Extension), and $363 (2019 high). The support at $363 is further bolstered by a downside 1.618 Fib Extension and the .382 Fib Retracement – adding further to this support.
On the other side, the first level of strong resistance lies at $438 (August 2018 high). This is followed by $445 ($450), $463 (1.272 Fib Extension), $490 (1.414 Fib Extension), and $500.
Against Bitcoin, ETH also fell lower from the high reached last week at the 0.0371 BTC level. During the week, the coin initially found support at 0.0347 BTC (.236 Fib Retracement). The buyers have defended this support over the past 4-days. However, the sideways movement has caused Etheruem to break beneath a steeply rising trend line that it was tracking since mid-July.
If the sellers push lower, the first level of support lies at 0.0337 BTC (March 2019 support). This is followed by support at 0.0329 BTC (.382 Fib Retracement), 0.032 BTC, and 0.0314 BTC (.5 Fib Retracement).
On the other side, resistance first lies at 0.035 BTC. Following this, additional resistance is located at 0.0361 BTC (March 2019 high), 0.0371 BTC, and 0.038 BTC.
XRP suffered a smaller 4% price drop this week as it falls into the $0.286 support, provided by a .236 Fib Retracement. XRP started the week above $0.3 as it pushed above a shallow falling price channel. It managed to spike as high as $0.331 before the sellers stepped in and sold XRP lower.
On Tuesday, XRP penetrated beneath $0.3 as it fell back into the previous falling price channel. The coin continued to drop over the following days until reaching support at $0.286 (.236 Fib Retracement).
If the bulls can regroup at $0.286 and push higher, the first level of resistance lies at $0.3. Following this, resistance lies at $0.313 (1.414 Fib ExtensioN), $0.321 (bearish .886 Fib Retracement), and $0.331 (1.618 Fib Extension).
Alternatively, if the sellers break beneath $0.286, the first level of support lies at $0.28. This is followed by support at the lower boundary of the channel, $0.264 (.382 Fib Retracement), and $0.25.
Against Bitcoin, XRP headed lower this week as it reached the 2435 SAT support (.382 Fib Retracement). The coin had attempted to push higher as it spiked toward 2700 SAT. However, the bears did not allow it to close a daily candle above 2560 SAT this week.
After rolling over from 2560 SAT, XRP headed lower and eventually broke beneath the 100-days EMA to reach the current 2435 SAT support (.382 Fib Retracement).
If the sellers push beneath the 2435 SAT, the first level of support lies at 2400 SAT. This is followed by support at 2333 SAT (.5 Fib Retracement & 200-days EMA), 2230 SAT (.618 Fib Retracement), and 2100 SAT.
Chainlink suffered a steep 14% price drop this week as it reached the $14.60 level. LINK had started the week on a bullish note as it pushed into the $19.50 resistance (1.618 Fib Extension). The coin attempted to push higher as it spiked toward the $21 level, but the sellers quickly stepped in and dropped LINK.
During the week, the bulls attempted to defend the $16 level, which broke today as LINK penetrates beneath support at $15 (.382 Fib Retracement) to reach $14.62. The price drop today caused the RSI to break beneath the mid-line, which indicates that the sellers are now in charge of the market momentum.
If the sellers continue to drive LINK lower, the first level of support lies at $14. This is followed by support at $13.35 (.5 Fib Retracement), $12.60 (downside 1.272 Fib Extension), $11.62 (.618 Fib Retracement), and $11.
On the other side, resistance lies at $15, $16, $17.20, and $19.50.
The situation is similar for LINK against Bitcoin. The coin reached as high as 0.0017 BTC during the week but failed to close a daily candle above 0.0161 BTC. LINK rolled over from here and initially found support at 0.00127 BTC (.382 Fib Retracement). This support broke today as LINK dropped further to reach 0.00124 BTC.
If the selling continues, support is expected at 0.0015 BTC (.5 Fib Retracement). This is followed by support at 0.00108 BTC (downside 1.272 Fib Extension), 0.0010 BTC (.618 Fib Retracement), and 0.000943 BTC.
OMG saw an extraordinary 250% price increase this week as the coin reached the $7.00 level. This type of growth is truly unprecedented and took the entire market by surprise. The coin started the week by trading beneath the $2.00 level. From there, it began to climb higher until reaching $3.50.
Yesterday, OMG surged higher above $3.50 to reach the $5.71 resistance level, provided by a bearish .236 Fib Retracement. This bearish Fibonacci Retracement is measured from April 2018 high to the 2020 price low.
Today, OMG exploded above the $5.71 level as it climbed higher to reach as high as $9.40 (1.414 Fib Extension). The coin has since dropped quite substantially to reach the current $7.00 level.
If the buyers begin to climb again, the first level of resistance lies at $8. This is followed by resistance at $8.70 (1.272 Fib Extension), $9 (bearish .382 Fib Retracement), $9.40 (1.414 Fib Extension), and $10. Beyond $10, added resistance is expected at $10.40 (1.618 Fib Extension), $11.42, and $11.70 (bearish .5 Fib Retracement).
On the other side, support lies at $6.22 (.236 Fib REtracement), $5.70, $5.00 (.5 Fib Retracement), and $4.37 (.618 Fib Retracement).
The situation is similar in OMG against Bitcoin. OMG started the week at around the 15,000 SAT level as it began to push higher. It stalled briefly at around 23,800 SAT during the week until a large candle penetrated above here yesterday to reach 50,000 SAT (2019 highs).
OMG continued to surge higher today as it pushed into the 80,000 SAT level (bearish .382 Fib Retracement). The sellers have since pushed OMG lower as it trades around 58,800 SAT.
If the buyers push higher again, resistance lies at 68,500 SAT (September 2018 High), 73,100 SAT (1.272 Fib Extension), and 80,000 SAT (bearish .382 Fib Retracement). This is followed by added resistance at 87,400 SAT and 96,000 SAT.
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Amid the COVID-19 crisis, economies worldwide have shuddered and governments have been forced to introduce drastic measures to resuscitate the ailing economy. As a result of this uncertainty, bitcoin has become an attractive investment for institutions. The spark that started with MicroStrategy’s jumbo bitcoin purchase morphed to an institutional frenzy around the flagship cryptocurrency.
The increased appetite for bitcoin from institutions comes from its budding image as a digital store of value. As the demand grows, the supply for BTC shrinks. Max Keiser, vocal bitcoin champion and founder of crypto-focused venture capitalist firm Heisenberg Capital, thinks this serious supply pressure will drive the price of bitcoin to $1 million.
Speaking with Express, Keiser noted that bitcoin’s supply is fixed at 900 BTC per day and will be slashed in half again to 450 BTC in 2024. And this is why he’s of the opinion that institutional players will devise ways of purchasing bitcoin directly from the miners, subsequently shutting out the public. This will be accompanied by the incredible price growth to $1,000,000.
Keiser goes on to predict that Generation Zs who purchased bitcoin while it was trading below $100 will be “the new global elite”. “The world order is about to flip”, he added.
The daily demand for bitcoin from leading crypto exchanges currently exceeds the supply minted by miners on a daily basis. To put things into perspective, the daily demand on these trading platforms totals 2,600 BTC, while miners can only produce 900 BTC per day. Keiser described this supply-demand disparity as “amazing”.
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Bitcoin has especially attracted the attention of multi-billion-dollar corporations and billionaires this year. Besides MicroStrategy, Square and Stone Ridge also allocated significant portions of their idle cash reserves to bitcoin, while PayPal recently launched a crypto service that allows users to buy, hold, and sell bitcoin and other cryptocurrencies. Interestingly, according to Pantera Capital’s Dan Morehead, PayPal and Square’s Cash App are buying more than 100% of newly-minted bitcoins.
The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.
Bitcoin is looking to retest its all-time high, near $20,000, as Donald Trump authorizes his administration to cooperate with president-elect Joe Biden’s transition team.
The flagship cryptocurrency rose cautiously on Tuesday, hours after the General Services Administration’s head Emily Murphy informed Mr. Biden that Mr. Trump had approved the official government transition process.
The statement came after Michigan certified the election results. The state found no evidence of significant voter fraud, as had claimed by Mr. Trump.
Bitcoin Boom Continues
As of 0755 UTC, the bitcoin-to-dollar exchange rate was up 0.17 percent, much in line with the US stock futures that too climbed in the pre-session trading Tuesday. Futures tied to the benchmark S&P 500 — for instance — ascended by 0.6 percent ahead of the London opening bell. Stocks in Asia surged likewise.
Markets had expressed uneasiness after the sitting US Treasury Secretary Steven Mnuchin refused to extend support to the Federal Reserve’s emergency lending facilities. Analysts noted that Mr. Trump used his human resource tools to constraint Mr. Biden’s administration’s powers to tackle the US economic fallout.
Bitcoin remains one of the biggest beneficiaries of the Fed’s lending programs.
The central bank printed about 20 percent of the US dollar bills that has ever existed in 2020 alone. On the other hand, Bitcoin did the complete opposite with an inherent economic policy that cut its supply by half every four years.
Fears of inflation, coupled with negative-yielding debts, pushed investors towards scarcer alternatives like Bitcoin. The cryptocurrency rose by more than 350 percent after the Fed announced its expansionary programs. The Trump administration attempted to end a big part of those aids, thus hurting Bitcoin’s further bullish prospects.
The GSA statement eased a pressing source of uncertainty for investors about the smooth White House handover to Mr. Biden. Robert Rennie, global head of market strategy for Westpac, told FT that the transition would limit the impact of Mr. Mnuchin’s decision.
A clear transition for Mr. Biden further paved the way for the long-pending coronavirus relief package.
The president-elect has earlier committed to increasing government spending to tackle the rising unemployment alongside COVID-19 infections. Should the Democrats win a majority in the Senate and Congress, the second stimulus package will face no political resistance.
Retail and institutional investors (read PayPal) have increased their Bitcoin exposure against a similar outlook. More stimulus reduces the US dollar’s purchasing power. It turns more people towards the safety of scarce assets like Bitcoin, so says Alex Mashinsky of Celsius Network. Excerpts:
“People must understand that there is no return in bonds, and they carry many risks. And buying into the stock market at all-time highs in the middle of a pandemic and a recession does not sound like an appetizing proposition.”
That somewhat justifies why Bitcoin would retest $20,000 by the end of this year — or in the first quarter of 2021 on tops.
Ethereum 2.0 Deposit Contract Reaches Threshold Value in Time for Dec 1 Launch
The deposit contract for Ethereum 2.0 has reached the minimum value in time for the proposed Dec 1 launch. The beacon chain will run parallel to the current network. Ethereum 2.0’s beacon chain is set to launch as the deposit contract reached the threshold value on Nov 23. The staked value reached the 524,288 ETH … Continued
The staked value reached the 524,288 ETH required in time for the anticipated Dec 1 launch date. Had it missed the deadline, ETH 2.0 would have launched a week after staking reached the threshold value.
Ethereum 2.0 Primed for Launch
Ethereum will now prepare itself for one of the biggest upgrades in its lifetime. The upgrade will bring a change to the governance model, as well as improvements to scalability and performance. However, the road ahead is long, as many of the changes will be executed in a phased manner, starting with Phase 0.
The deposit contract for Ethereum 2.0 went live on Nov 4, quickly gaining some staked value. However, there was a period where the staking contributions seemed to stagnate. Many were not troubled, as a similar contribution in Ethereum’s development saw funds flowing close to the deadline.
The 16,384 validators are expected to receive higher than average returns, which will decrease as more ETH gets staked over time. The beacon chain will run alongside the current Ethereum blockchain, with the stakers being its primary participants.
Industry Insiders Cheer the Milestone
Several prominent figures in the industry celebrated the milestone.
EthHub developer Eric Conner and content creator Evan Van Ness were among them. Meanwhile, Messari founder Ryan Selkis claimed that he was always confident that the contract would reach the threshold value.
Ethereum co-founder Vitalik Buterin, on the other hand, assured users that they could still stake. Buterin himself contributed $1.35 million towards the deposit contract adding that migration towardsproof-of-stake would not arrive until 2021.
Several companies have also staked large sums in ETH 2.0, including Dubai’s IBC Group. The investment was made in partnership with CanETH, which praised the move to a proof-of-stake model.
Ethereum’s price hit a 30-month high in light of the events, and is now over $600. 2020 has been a strong year for the asset, with a YTD performance that has pleased professional investors.
Grayscale Investments added over $58 million to its Ethereum Trust this year.
Rahul Nambiampurath is an India-based Digital Marketer who got attracted to Bitcoin and the blockchain in 2014. Ever since, he’s been an active member of the community. He has a Masters degree in Finance. <a href=”mailto:[email protected]”>Email me!</a>