Connect with us

Blockchain

Why has Bitcoin’s brief recovery not been enough

Avatar

Published

on

Bitcoin’s price bounced back on the charts after undergoing yet another price correction, with the same settling above the $32,000-price level, at press time. In fact, after seeing its value fall by over 15 percent on the 20th of January, the coin was on its way to breach its immediate resistances at the $33,000 and $34,000-levels.

In the past, Bitcoin has been troubled by minor corrections on the charts after falling from the ATH it set around the $42k-level. However, Bitcoin returning to claim a position above $35k, for example, might be a clear sign that the bulls are back in control. This raises the question – In the short-term market for Bitcoin, how probable is such a scenario?

Given the cryptocurrency’s overall market sentiment, traders may have to wait a while before the $35k-price level is claimed. In the long term, given Bitcoin’s scarcity and the fact that it has in the past gone past this price level, the $35k-level should be easily capturable.

However, in the next few weeks, the continuing bearish sentiment may stop the coin from breaching this resistance.

Source: Santiment

According to Santiment’s data, strong bearish sentiments with regard to Bitcoin are around at the moment. Santiment’s Weighted Social Sentiment metric is a clear indicator of the overall sentiment traders have towards an asset. In Bitcoin’s case, in spite of it rebounding today, many traders seem to be a bit hesitant at these levels.

For assets like Bitcoin that work in a speculative market, crowd sentiment is a key attribute. While it is wise to buy when the price takes a dip, the fact that after Bitcoin fell to the $30k-price range there were quite a few corrections without a strong uptrend could be one of the reasons traders are hesitating to buy more BTC and help its price move north.

Source: Santiment

In fact, taking a closer look at the two corrections that happened on Bitcoin’s charts over the past week, Santiment highlighted that while traders were keen on buying the dip during the first correction, there was a bit of skepticism during the second dip that happened yesterday.

To better understand social sentiments, Google trends data can also come in handy. Taking a look at user interest in Bitcoin world over, a slump over the past few days was evident, with this finding shedding new light on the cryptocurrency’s recent price performance.

According to Google’s data, a value of 100 is the peak popularity for a term, with Bitcoin seeing its levels fall to 59 at press time, from 100 on the 11th of January.

Source: Google Trends

With Bitcoin setting new highs this month, it has also, in turn, redefined what it means to buy low and sell high. Bitcoin’s press time price point is still quite steep in comparison to where it was under a year ago and one of the reasons why traders may be a bit apprehensive during these price corrections could be because the price is still in quite an expensive range.

Additionally, another reason why the bearishness continues for Bitcoin could be because of the $10k drop that Bitcoin underwent, and even after traders ‘bought the dip,’ the price has only increased marginally and ended up seeing yet another price correction. To a certain extent, one can argue that this could be the reason why in the short-term, the bearishness prevails.

However, given Bitcoin’s predicted trajectory, a $30k-price point is likely to be quite a rarity in the coming months and traders accumulating the coin may find themselves quite fortunate soon.

Source: https://ambcrypto.com/why-has-bitcoins-brief-recovery-not-been-enough

Blockchain

XRP, Cosmos, Elrond Price Analysis: 07 March

Avatar

Published

on

XRP floated above its press time support but needed to retake additional resistance levels to overturn its bearish market. ATOM reflected a consolidated market as the price moved within a fixed channel while Elrond traded within an ascending channel after a bounce back from the $100-mark.

Source: CoinStats

Meanwhile, the world’s largest cryptocurrency Bitcoin was trading at $50,870 with a 24-hour trading volume of over $36.3 billion.

XRP

Source: XRP/USD, TradingView

XRP was still at the nascent stage of a recovery as the bulls barely held on to $0.46 level after flipping it to support. Weekly gains of over 10% highlighted the bounce back from $0.40 support as XRP rose steadily on the 4-hour time frame. Nevertheless, several challenges awaited the bulls moving forward. The first was to overcome bearish sentiment in the market set by the 200-SMA (green) crossing above the 50-SMA (blue).

Short-medium term challenges were presented by the overhead resistance levels $0.5 and $0.55. However, the ADX rested around the 15 mark and indicated a weak trend in the XRP market. The MACD line moved alongside the signal line as equilibrium was maintained between each side. Considering the neutrality set by the indicators, the bulls might have to sustain a period of consolidation before a northbound move.

Cosmos [ATOM]

Source: ATOM/USD, TradingView

The Bollinger Bands on Cosmos started to converge as volatility looked to escape the Cosmos market. Short-bodied candlesticks on the 4-hour charts showed that the buyers and sellers were not in major disagreement with regard to the price. The RSI pointed lower from the 50-mark.

If the bears take control over the coming sessions, a fall towards $16.45 support could present some buying opportunities for traders at a discounted price. A psychological boost could also stem from a breach above the overhead resistance at $21.45.

Elrond [EGLD]

Source: EGLD/USD, TradingView

Gains over the past week amounted to over 12% as Elrond bounced back strongly from the $100-mark. As the price formed higher highs and higher lows, an ascending channel appeared on the 4-h0ur timeframe. The indicators tilted in the favor of the bulls at press time but a break outside the channel seemed unlikely.

The MACD closed in on a bullish crossover, while the red bars on the histogram moved towards the equilibrium point. The RSI was neutral-bullish as the index moved flat from above the 50-level.  A move above the upper trendline over the long run would present an upside at $208. Conversely, a southbound move from the lower trendline could see EGLD move towards the $100 level once again.


Sign Up For Our Newsletter


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://ambcrypto.com/xrp-cosmos-elrond-price-analysis-07-march

Continue Reading

Blockchain

Chinese Crypto Purchases Signal Asian Corporate Attention

The Chinese company Meitu announced on Mar. 7 the purchase of 5,000 ETH and more than 379 BTC. The purchase, on Mar. 5, is part of an investment plan using cash reserves. Meitu’s business focus is in image and video processing as well as social media. In the announcement, the company states that its Board … Continued

The post Chinese Crypto Purchases Signal Asian Corporate Attention appeared first on BeInCrypto.

Avatar

Published

on

The Chinese technology company Meitu purchased millions of dollars of BTC and ETH from its corporate reserves.

The Chinese company Meitu announced on Mar. 7 the purchase of 5,000 ETH and more than 379 BTC. The purchase, on Mar. 5, is part of an investment plan using cash reserves. Meitu’s business focus is in image and video processing as well as social media.

In the announcement, the company states that its Board sees blockchain as being in a state “analogous to the mobile internet industry circa 2005.” Moreover, Meitu sees its purchases in differing lights.

Moving into Blockchain

Meitu sees the Ethereum chain as a natural place for its own exploration into blockchain. The company might use it for Gas or for investing into blockchain-based projects that take ETH.

Bitcoin as an Asset

Meitu made the Bitcoin purchase primarily for asset diversification. First and foremost, Meitu sees Bitcoin as a superior store of value. The company’s analysis compared BTC to gold, precious stones and real estate.

Asian Attention

Observers quickly noticed the fact that a Chinese corporation made the purchase. 

The focus on U.S. companies buying crypto from corporate reserves is not a surprise. As just one example, Bitcoin bull Michael Saylor, the CEO of MicroStrategy, has stayed in the spotlight since the company’s initial purchase of BTC in August 2020.

How-to Books

MicroStrategy literally wrote the book on corporate reserves purchases of Bitcoin, at least for the American market. On Feb. 5-6, the company held a remote conference in which it explained the legal and accounting measures required for American corporations to follow in the process. The company also made available for free a download of its internal playbook used when making such purchases.

Increasing Competition

The Meitu purchase is an example of how widespread this cryptocurrency bull run has become. Asian corporate purchasers are now emulating their American counterparts. 

Closer to the U.S., though, investment companies face pressure of a different kind. Canadian investment firms are ahead with Exchange Traded Funds (ETFs). The Purpose Bitcoin Fund, which is traded on the Toronto Stock Exchange, is the first Bitcoin ETF in North America. 

Not to be outdone by the Bitcoin crowd, the world’s first Ethereum ETF has been given preliminary approval for trading on the Toronto exchange as well.

Given the growing competition for increasingly scarce BTC at hand, MicroStrategy might need to write the book on how to find it in the first place.

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.

Share Article

James Hydzik is a finance and technology writer and editor based in Kyiv, Ukraine. He is especially interested in the development of regulation in the face of increasingly rapid technological change. He previously covered the CEE region for Financial Times banking and FDI magazines. An ardent believer in gut renovating eastern Europe one flat at a time, he currently holds more home renovation gear than crypto.

Follow Author

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://beincrypto.com/chinese-crypto-purchases-signal-asian-corporate-attention/

Continue Reading

Blockchain

Top 5 cryptocurrencies to watch this week: BTC, UNI, THETA, VET, LUNA

Avatar

Published

on

Bitcoin’s (BTC) fundamentals received a boost as the U.S. Senate passed the $1.9 trillion stimulus bill on March 7. If traders react to this bill in the same way as they had done to the first stimulus package in April 2020, then the crypto markets may witness a strong rally.

The stimulus package also intensifies the focus on the devaluation of the U.S. dollar. These concerns could lead some investors to park their money in hard assets or Bitcoin instead of keeping them in fiat currencies, according to veteran trader Peter Brandt.

Crypto market data daily view. Source: Coin360

In addition to investors, a growing number of listed companies are choosing to protect their fiat reserves by buying Bitcoin. After the high-profile purchases by MicroStrategy, Tesla, and Square, a Chinese listed company called Meitu revealed that it had acquired $40 million worth of Bitcoin and Ether.

If other companies across the world also follow this lead and invest a portion of their treasury reserves in Bitcoin, that could create a massive supply and demand imbalance, sending prices through the roof.

Let’s study the charts of the top-5 cryptocurrencies that may resume their uptrend in the short term.

BTC/USD

Bitcoin dipped below the 20-day exponential moving average ($48,484) on March 5 and March 6 but the long tail on each candlestick shows buyers are ready to jump in at lower levels. The bulls have currently pushed the price toward the $52,040 overhead resistance.

BTC/USDT daily chart. Source: TradingView

While the 20-day EMA is flat, the relative strength index (RSI) has started to turn up and it has risen above 58, indicating that the bulls are attempting to make a comeback.

If the buyers can propel the price above the resistance, the BTC/USD pair may retest the all-time high at $58,341. A breakout of this level could start the next leg of the uptrend, which may reach $72,112.

Contrary to this assumption, if the price turns down from the overhead resistance and breaks below $46,313, the pair may drop to the 50-day simple moving average at $42,861. This level is likely to act as a strong support.

If the pair rebounds off this support, the pair may spend a few more days in consolidation. But if the bears sink the price below $41,959.63, traders may rush to the exit, which could signal a possible change in trend.

BTC/USDT 4-hour chart. Source: TradingView

The pair has formed an inverted head and shoulders pattern on the 4-hour chart that will complete on a breakout and close above $52,040. This bullish setup has a pattern target of $61,075.

The 20-EMA has started to turn up and the RSI has jumped above 62, indicating a minor advantage to the bulls.

This bullish view will invalidate if the price turns down from the current levels or the overhead resistance and breaks below $47,000. Such a move could open the doors for a decline to the next major support at $41,959.

UNI/USD

After consolidating near $29 for three days, Uniswap (UNI) has broken out of the overhead resistance today. If the bulls can sustain the price above $29, it will enhance the prospects of the resumption of the uptrend.

UNI/USDT daily chart. Source: TradingView

Both moving averages are sloping up and the RSI is in overbought territory, which indicates that bulls are in command. If the UNI/USD pair rises above $33, the next level to watch out for is $38 and then $46.

This bullish view will invalidate if the price turns down from the current levels and breaks below the 20-day EMA ($25.31). If that happens, the pair may drop to $22 and then to the 50-day SMA ($19.78).

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are likely to defend the $32 overhead resistance aggressively. However, if the bulls do not allow the price to dip below the 20-EMA, it will signal strength. A breakout and close above the $32 to $33 zone may start the next leg of the up-move.

This bullish view will invalidate if the price turns down and breaks below the 20-EMA. Such a move will suggest that traders are booking profits on rallies. The pair could then drop to the 50-SMA.

THETA/USD

THETA is in a strong uptrend. Although the altcoin turned down on March 7, the long tail on the March 8 candlestick shows buying at lower levels. Corrections in a strong uptrend generally last for one to three days after which the main trend resumes.

THETA/USDT daily chart. Source: TradingView

The rising moving averages and the RSI near the overbought zone suggest the bulls are in control. If buyers can drive the price above $4.72, the THETA/USD pair may resume the uptrend and rally to $5.73.

On the contrary, if the price turns down from the $4.50 to $4.72 overhead resistance zone, the pair may drop to the 20-day EMA ($3.58). A strong rebound off this support will suggest the sentiment remains positive as the bulls are buying the dips.

If the bears sink the price below the 20-day EMA, a deeper correction to the 50-day SMA ($2.82) is possible. Such a move will indicate that the momentum has weakened and may delay the resumption of the up-move.

THETA/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the 20-EMA is rising and the RSI is in the positive zone. If the bulls can push and sustain the price above the downtrend line, the pair may retest $4.72. A breakout of this resistance could start the next leg of the uptrend.

On the other hand, if the price continues to correct, it may find support at the 20-EMA. If that happens, the bulls will again try to propel the price above the downtrend line. However, a break below the 20-EMA may pull the price down to $3.85.

VET/USD

VeChain (VET) is currently stuck in a large range between $0.0345 and $0.060774. The price had reached the resistance of the range, but the long wick on today’s candlestick shows profit-booking near $0.060774.

VET/USDT daily chart. Source: TradingView

However, the moving averages are sloping up and the RSI has also inched higher into the positive territory, suggesting that the path of least resistance is to the upside. If the bulls can push and sustain the price above $0.060774, the VET/USD pair may start the next leg of the uptrend.

The first target on the upside is $0.087048 and if this level is also crossed, the pair may rise to $0.10.

Contrary to this assumption, if the price turns down from the current level, the pair may drop to the 20-day EMA ($0.047). A bounce off this support will suggest that the uptrend remains intact, but a break below it may bring the range-bound action into play.

VET/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows some profit-booking near $0.060, but the positive sign is that the bulls have not allowed the price to collapse. If the pair rebounds off the 20-EMA, the bulls will make one more attempt to thrust the price above the stiff overhead resistance.

If they can sustain the price above $0.060774, the next leg of the uptrend could begin. However, if the price dips below the 20-EMA, the selling could intensify and the price may drop to the next support at the 50-SMA.

LUNA/USD

Terra (LUNA) is currently consolidating in a large range between $5 and $8.50 for the past few days. Both moving averages are sloping up and the RSI is near the overbought territory, indicating the path of least resistance is to the upside.

LUNA/USDT daily chart. Source: TradingView

The bulls pushed the price above the range on March 5, but could not build up on the breakout as the price turned down and slipped back below $8.50 on March 6. This suggests that demand dried up at higher levels.

However, if the bulls do not give up much ground, it will indicate that traders are waiting to buy the shallow dips. If that happens, the buyers may make one more attempt to start the next leg of the up-move. If they succeed, the LUNA/USD pair could rally to $12.

LUNA/USDT 4-hour chart. Source: TradingView

The long wicks on the candlesticks above $8.50 show profit-booking at higher levels and the bulls are currently attempting to defend the 20-EMA. If the price rebounds off the current levels, the buyers will again try to resume the uptrend by driving the pair above the $8.50 to $9 overhead resistance zone.

On the contrary, if the bears sink and sustain the price below the 20-EMA, the pair could dip to the 50-SMA. If the price bounces off this level, the pair may consolidate in the upper half of the range for some time. A drop below the 50-SMA will be a signal that the price may settle into the $5 to $6 range.

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.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-uni-theta-vet-luna

Continue Reading
Blockchain5 days ago

Ethereum’s Top 10 Whale Addresses Add 1 Million ETH In A Day, Evolve Files for Ether ETF

Blockchain5 days ago

VeChain Price Prediction 2021 – 2027

Blockchain5 days ago

NFTs are changing the world of art and it is just getting started

Blockchain5 days ago

A deep dive into Eth 2.0, scaling and a project that lets users buy the entire crypto market

Blockchain5 days ago

Multiple assets can ‘behave like ADA’ through Cardano’s Mary upgrade

Blockchain5 days ago

Someone Sent $243K in Bitcoin to an ‘Elon Musk’ Scam Wallet Address

Blockchain5 days ago

Rarest Pepe — ‘most important NFT in art history’ — sells for 205 ETH

Blockchain5 days ago

Bitcoin Price Forecast: BTC elevation to $52,000 catches momentum

Blockchain5 days ago

Mainnet launch and NFT sale lift Aavegotchi (GHST) to a new all-time high

Blockchain5 days ago

Exploring Polkadot’s blockchain of blockchains

Blockchain5 days ago

Bitcoin’s Recent 25% Drop ‘Positive’ as It Tested Holder Conviction: Report

Blockchain5 days ago

SEC Chair Nominee Gary Gensler Calls Bitcoin (BTC) “A Catalyst for Change”, Is Bitcoin ETF Coming Soon?

Blockchain5 days ago

ChiliZ To Expand Operations, Will Invest $50 Million in the US

Blockchain5 days ago

DeFi token CRV spikes after reports PayPal acquired unrelated custody firm Curv

Blockchain5 days ago

Bitcoin price prediction: Bulls buy the dip to push BTC/USD past $50k

Blockchain5 days ago

Santiment Reveals Top 10 Ethereum Projects by Developer Activity

Blockchain5 days ago

Did Paris Hilton Forget She’s Already Released an NFT?

Blockchain4 days ago

A Beginner’s Guide on How to Play in Casinos

Blockchain5 days ago

Bitcoin’s Compound Annual Growth Rate Is ‘Unmatched in Financial History’, Analysis Shows

Blockchain5 days ago

Marc Lasry and former CFTC chair Giancarlo invest in BlockTower Capital

Blockchain5 days ago

Bitcoin price could rally up to $50,000

Blockchain5 days ago

Thailand SEC Allays Fears Over Controversial Crypto Proposal

Blockchain5 days ago

TA: Ethereum Lacks Momentum Above $1,550, Why Dips Likely To Be Limited

Blockchain5 days ago

Kraken Daily Market Report for March 02 2021

Blockchain4 days ago

Amplifying Her Voice

Blockchain22 hours ago

Here Are the Top Small-Cap Altcoins That Will Beat the Market, According to Crypto Trader Tyler Swope

Blockchain5 days ago

Top 3 NFT brands’ sales grew 381% in February

Blockchain21 hours ago

Bitcoin (BTC) Price Prediction: BTC/USD Is Stuck Below the Psychological Price Level, Unable to Sustain Above $50,000

Blockchain5 days ago

Best Bitcoin Reward Cards

Blockchain5 days ago

BaderDAO DeFi Protocol Launches Bitcoin Bridge with Ren

Blockchain5 days ago

Will U.S Sen. Elizabeth Warren’s Bitcoin comments lead to FUD?

Blockchain5 days ago

Bitcoin Shakes Off Dollar Rebound But Beware Of Coming Bear Phase

Blockchain5 days ago

TA: Bitcoin Holding Gains, Why BTC Could Surge Above $50K

Blockchain4 days ago

Amazon Adds Support for Ethereum on Amazon Managed Blockchain

Blockchain5 days ago

Top Analyst Predicts Bitcoin Will Hit $100,000 Sooner Than Most Traders Think, Says Two Altcoins Ready to Rally

Blockchain5 days ago

Vitalik proposes solution to link certain layer-two scaling projects

Blockchain5 days ago

The Hard Sell

Blockchain5 days ago

Ethereum now available on Amazon Managed Blockchain

Blockchain5 days ago

Moscow Exchange Reports Stable FX Volumes at $325 Billion

Trending