BTC Price Analysis: Bitcoin’s Liquidity Crunch Deepens: Brace for Volatility
Amid the banking concerns this month, the liquidity situation in cryptocurrencies has gotten worse, according to researcher Conor Ryder. His recent study reveals that aftermarket makers lost access to USD payment rails, and bitcoin liquidity fell to a 10-month low.
The analysis also showed how much less liquid the BTC markets are now than they were during the FTX and Alameda collapse. The “Alameda gap,” as it was known at the time, was caused by the absence of one of the biggest market makers in the sector, according to Kaiko.
Liquidity in the U.S. exchanges was disrupted by the closure of Silvergate Capital and Signature’s Signet payment network, two crucial players of infrastructure for market makers in the area.
He said that we are in this situation because the market makers are facing “unprecedented challenges” to their operations. “We can see the difference in reaction between US and non-US exchanges with more severe reactions to some of the liquidity issues of the last month,” Ryder added. He issues a warning that the loss of simple fiat access might have longer-term repercussions.
“On a $100k sell order, Coinbase’s btc-usd pair has increased by 2.5x the slippage it started the month at Binance’s btc-usdt pair’s slippage meanwhile barely moved,” he said.
The research also covered how the absence of USD payment rails had an impact on liquidity, resulting in spreads becoming more unpredictable as banking troubles grew worse and slippage increasing as a result of a shortage of liquidity.
In response to Ryder’s study, former Coinbase CTO Balaji S. Srinivasan, who is now in the news for his $1 million Bitcoin bet, said, “Interestingly, as the liquidity of Bitcoin markets decreases under state pressure, it takes less buying to get USD/BTC to moon. I don’t think the state can close it fully, but we shouldn’t wait. Paradoxically, closing the exit makes the exit more desirable in more ways than one.”
Bitcoin’s RoadMap Towards $60K : Here’s How & When BTC Price Will Hit New ATH
This month, bank runs and a lack of certainty over interest rate increases by the Federal Reserve both contributed to a rise in the price of Bitcoin.
After 9 months, a massive Bitcoin price rise in the previous two weeks drove the price of BTC to over $28,000; it has since increased 15%. Most investors and traders are unsure of where Bitcoin will go next in light of its unexpected price trend.
According to a well-known crypto expert, Bitcoin may currently be in the midst of a consolidation phase that may give rise to a parabolic rally. Kevin Svenson explained that BTC may be forming a base of buyers before printing gains of over 100%.
Bitcoin’s Advent to $60k
Svenson said that after establishing two bases of support, Bitcoin appears to be following the parabolic diagram. A parabolic asset often builds three bases of support before launching a 2x rally over a brief period of time.
“Bitcoin, from $15,500 at the beginning of the year to where we are now currently at [$28,000]. Bitcoin has created two bases of support, and possibly we’re about to create base three. Why is that important?”
The parabola graphic showed that the stock price, or in this example, the price of the cryptocurrency, doubled following the formation of three bases of support within the parabola.
According to him, this suggests that BTC may start with a base of roughly $30,000 and then double it to $60,000.
The expert added that Bitcoin appears strong as it maintains respect for both its horizontal support and diagonal trendline on the four-hour chart.
Talking about the largest cryptocurrency by market cap, Bitcoin is currently trading at $28, 171 and is up by more than one percent in the last 24 hours.
However, it may face a brief retracement or sell-off in the meanwhile, based on the direction of the market, just in case it crosses the critical $29,000 resistance level.
US Could Be Hit by Potential Hyperinflation Soon-Will Bitcoin’s (BTC) Price Make It to $100K?
The crypto space appears to have relaxed a bit as the prices of the popular tokens have been consolidating within a very narrow range. Bitcoin, the star cryptocurrency, appears to be accumulating gains as it prepares to fly past previous highs very soon. Hence, the altcoins may also begin with a fresh bullish wave as the possibility of the global crypto market cap achieving the milestone of $2 trillion appears to be pretty high.
But how will the BTC price reach $100k? And by when?
The US economy has been badly hit by the ripple effects of the fallout from the major banks in the state. Although customers are assured they will get access to their funds, the stability of the banks continues to remain shady. In the meantime, JP Morgan, a leader in investment banking, raises the possibility of the FED releasing an emergency loan.
As per the reports, the FED may soon inject $2 trillion into the US banking system to stabilize the prevailing crisis. This facility is likely to be used by the largest banks, which may help the centralized banks recover from their losses.
The reserve balances at the FED had depleted, but they spiked since the beginning of 2020 and marked highs during the first half of 2021. This was when the inflation rates began to surge. The rates, which were 1.40% in January 2021, soared to 9.06% in July 2022, which was the highest in the past 42 years!
One needs to take note that this was the time when the crypto markets underwent a massive bull run where Bitcoin prices soared from around $10,000 to as high as $69,000. Now that the FED is preparing to inject $2 trillion into the economy, the dropped inflation rates may rebound and surpass the 2022 highs.
This may be when the US could be hit with hyperinflation, resulting in a bull run in the crypto markets. Many tokens may rise more than 10x to double their ATH as the BTC price is assumed to hit $100K then!
Bitcoin’s Biggest Inflow in 6 Months – What Next For BTC Price?
After the most recent inflation figures, Bitcoin surpassed $26,000 to a nine-month high just for a brief period. In just four days, the value of the biggest cryptocurrency by market capitalization rose by more than 20% and is currently hovering closer to $25,000. This comes after reaching lows of $19662 following the failure of Silicon Valley Bank.
BTC has ridden predictions that U.S. interest rates won’t rise as quickly while bucking the turbulence on international markets that followed the collapse of Silicon Valley Bank last week.
Bitcoin liquidations hit record highs
With a surge of more than 51%, the king coin had an outstanding run in 2023. Santiment, an on-chain analytics firm, reported that several coins have recently been traded on exchanges. The “exchange flow balance,” which calculates the net amount of Bitcoin moving in or out of the wallets of all centralized exchanges, is the relevant signal in this case.
The exchange flow balance for Bitcoin has suddenly risen over zero during the past few days. A total of 21,524 BTC ($524.9 million at the current exchange rate) have been deposited to various platforms over the course of this increase.
Yet on March 13, bets against a rise in the price of bitcoin totaling more than $100 million were cashed. This was the greatest amount that had been liquidated since January 14, when a bitcoin increase resulted in a $500 million liquidation across several crypto futures.
78% of all bitcoin futures traders lost money as a result of the liquidations, according to data from Coinglass. Binance, OKX, Huobi, and Bybit were the major cryptocurrency exchanges that experienced losses.
At the time of writing, Bitcoin is trading below the $25k mark. The coin has gained more than two percent in the last 24 hours and is currently exchanging hands at the $24,703 levels.
Who is Satoshi Nakamoto?The Ultimate Quest for Bitcoin’s Creator
The world of cryptocurrency and blockchain technology is surrounded by mystery, with the true identity of many key figures remaining unknown.
One name that has become synonymous with this enigma is Satoshi Nakamoto, the elusive creator of Bitcoin and pioneer of decentralized finance.
Who is Satoshi Nakamoto?
This question has puzzled experts and enthusiasts alike for over a decade, and despite countless claims and theories, the true identity of this enigmatic figure remains a mystery.
So, let’s explore the mystery of Satoshi Nakamoto and unravel the story of the world’s most famous anonymous figure.
Early Days of Bitcoin
14 years ago, an unknown individual or group of people, using the pseudonym Satoshi Nakamoto, created a new form of digital currency that would change the financial world forever.
That is “Bitcoin”
It’s a decentralized form of currency that operates on a revolutionary technology called a blockchain. This technology allows secure and transparent transactions without the need for a central authority, making it free from government control and manipulation.
Over the years, we have seen a steady increase in the number of Bitcoin users and more recently, institutional investors have begun to take notice of this digital currency. This has led to a significant increase in the price of Bitcoin, with the cryptocurrency reaching an all-time high of $69,000 in 2021.
The potential of Bitcoin to replace fiat currency is also being discussed. With its decentralized nature, it could be a viable alternative to traditional currency.
As we continue to uncover the secrets of Bitcoin and its mysterious creator, one thing is certain, this digital currency has sparked a financial revolution and has changed the way we think about money.
But the question on everyone’s mind is,
Who is behind this revolutionary technology?
Who is the person responsible for creating Bitcoin?
Is it a single individual or a group of people?
& Why are they hiding?
Well,
Some believe Satoshi Nakamoto could be a group of people, while others believe it to be a single person. The true identity of the creator of Bitcoin remains a mystery, and the search for the real Satoshi Nakamoto is a topic of much speculation…
Let’s dive deeper into the world of Bitcoin and the search for the real Satoshi Nakamoto.
The Publication of the Bitcoin whitepaper
In the early 2000s, the idea of digital currencies began to gain traction. However, these currencies were centralized, meaning that they were controlled by a single entity, such as a bank or government.
This centralization made them vulnerable to hacking and fraud, and many people began to look for a better solution. And that’s where Satoshi Nakamoto comes in.
In 2008, Satoshi Nakamoto purchased the domain bitcoin.org. This would become the website where Bitcoin information would be published and where the community would come to learn about the new digital currency.
Satoshi’s decision to purchase the domain was the first step in the creation of a new kind of currency, one that would be decentralized and not controlled by any single entity.
On October 31st, 2008, Satoshi published a whitepaper on the Bitcoin website titled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
This document outlined the technical details of how Bitcoin would work, including the use of a decentralized ledger, called the blockchain, to keep track of transactions.
Development of the first version of Bitcoin in 2009
The Genesis Block, the first block in the Bitcoin blockchain, was mined by Satoshi on January 3rd, 2009. The Bitcoin network was formally launched with the creation of this block.
The Genesis Block contained a message, “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”, which was derived from the London Times article.
It demonstrates how Satoshi’s invention was not only original but also a reaction to problems with the established financial system.
A few days later…
On January 12th, 2009, the first Bitcoin transaction was recorded. Satoshi sent 10 Bitcoins to Hal Finney, a programmer, and early Bitcoin enthusiast. This simple transaction marked the beginning of a new era in digital currency.
Early Involvement of Nakamoto’s in Online forums
The first transaction was a significant milestone, as it proved that the Bitcoin network could be used for real-world transactions, and it was all made possible by the revolutionary concept outlined in the whitepaper.
In the months that followed, Satoshi became a regular participant in the Bitcoin Talk forum, where he discussed the development of Bitcoin with other enthusiasts.
These chats provide insight into Satoshi’s early thoughts on the project and his plans for its future. Satoshi’s participation in the forum allowed him to gather feedback and ideas from the community, which helped to shape the development of Bitcoin.
It shows how Satoshi was not only a visionary but also a collaborator.
Satoshi later continued to work on the development of Bitcoin, releasing new versions of the software and addressing any issues that arose. He also corresponded with other developers via email, discussing various aspects of the project.
His commitment to the project was evident in his tireless work to improve and refine the software. It shows how Satoshi’s dedication to Bitcoin was not only evident but also ongoing.
But one day suddenly
Satoshi Nakamoto disappeared from the public eye after posting on the BitcoinTalk forum for the last time on December 13, 2010.
While their true identity remains unknown, the impact of their creation on the world of technology and finance cannot be denied. As days passed there have been many contenders for the title of Satoshi Nakamoto, each with their own unique story.
Let’s dive into the top contenders who have claimed to be the mastermind behind the revolutionary invention.
Potential Candidates for Satoshi Nakamoto
The article suggested that Dorian Nakamoto was the real name behind the pseudonym Satoshi Nakamoto, but Dorian Nakamoto denied the claim and stated that he had never heard of Bitcoin before the article.
It was later found that the journalist mistook the name and the individual had no connection with Bitcoin or Satoshi Nakamoto.
Craig Wright: An Australian computer scientist and businessman who claimed to be Satoshi Nakamoto in 2016, but his claim has been met with skepticism and controversy.
Wright provided some technical proof to back up his claim, but many experts in the field have said that the evidence is not conclusive. Additionally, Wright’s claim to be Satoshi Nakamoto is met with several inconsistencies and contradictions, making it difficult to fully verify his identity as the true creator of Bitcoin.
Nick Szabo: A computer scientist and cryptographer who is considered to be one of the godfathers of smart contracts and digital currencies.
He created the concept of smart contracts in the 1990s and has been involved in the development of several encryption and security systems.
Szabo’s writing and digital footprint have been compared to that of Satoshi Nakamoto, and some have pointed to similarities in language and coding style. Szabo, however, denies being Satoshi Nakamoto and it is not clear if he is the real Satoshi.
Hal Finney: A programmer and early Bitcoin developer who was one of the first people to receive Bitcoin from Satoshi Nakamoto.
Finney was a known member of the cypherpunk community and had a technical background that would have allowed him to create Bitcoin. Finney passed away in 2014, but his involvement with Bitcoin and the possibility that he could have been Satoshi Nakamoto remains a topic of debate among experts.
Adam Back: A computer scientist and cryptographer who has been involved in the development of several encryption and security systems. Back has been involved in the development of cryptographic technology for decades and is considered to be one of the leading experts in the field.
Some have pointed to similarities in language and coding style between Back’s writing and that of Satoshi Nakamoto, but Back denies being Satoshi Nakamoto.
Each of these so-called Satoshis generated a lot of media attention and sparked a lot of discussion within the crypto community. Some people believed them, while others were skeptical.
Do you believe any one of them? Comment down delow…
But, can you guess how much bitcoin satoshi holds?
Let’s find that out…
Overall Holding of Satoshi Bitcoin
It is estimated that Satoshi holds around 1 million BTC, which is around 5% of the total supply of Bitcoin. With the price of BTC reaching $69,000 in September 2021, Satoshi’s net worth was estimated to be around $69 billion, making him one of the wealthiest individuals in the world.
Woah, that’s a hefty amount of money.
It is uncertain whether or not Satoshi will maintain or increase his wealth as the future value of Bitcoin is highly dependent on market conditions and investor sentiment. Additionally, the action’s pseudonym could also impact the value of Satoshi’s holdings.
Furthermore, it’s important to mention that it’s uncertain if Satoshi is one person or a group of people, hence it’s difficult to predict what will happen to their wealth.
Do you think Satoshi will become the richest person on the earth?
If bitcoin reaches a new all-time high of $114,000 per BTC, with all other things staying equal, Satoshi will be the richest person on the planet.
But
It’s amazing to think about the potential impact of this decentralized digital currency on the world of finance and beyond. Only time will tell how high the value of bitcoin will go, but one thing is certain, it’s a technology that is here to stay.
“So, what do you think?
Will Satoshi reach the top spot as the richest person on earth if bitcoin reaches new heights?
Conclusion
While the identity of Satoshi Nakamoto may remain a mystery, his legacy lives on through the continued development of blockchain technology and the growth of the cryptocurrency market.
As the world continues to embrace digital currencies and decentralized systems, the impact of Nakamoto’s work will only become more apparent. Satoshi Nakamoto is a name that has become synonymous with the creation of Bitcoin and the emergence of blockchain technology.
Despite numerous claims and speculations, the true identity of the person or group behind this pseudonym remains unknown.
Bitcoin’s Historical Trend: Why This Might be the Perfect Time to Buy BTC
The year 2023 for the cryptocurrency industry started off brightly, as top cryptocurrencies like Bitcoin saw large price increases. The recent bullish trend, though, has not yet fully reflected a rebound.
As noted by the anonymous cryptocurrency expert Stockmoney Lizards, Bitcoin has been showing a consistent pattern of ideal periods for choosing between the buy, hodl, and sell.
According to these new developments, the current bearish phase appears to be a good opportunity to buy Bitcoin before its price begins another upward bullish movement. The findings highlight how this is the best course of action to hoard and then sell at the price peak, as shown on the chart that dates back to 2013.
Bitcoin’s current price, according to cryptocurrency analyst Ali Martinez, fell below a crucial support range between $23,050 and $23,730, where 1.63 million addresses bought more than 910,000 BTC. He said that if Bitcoin was unable to take back this area as support, it might lead to a sell-off that would drive the price of BTC as low as $19,300 or as high as $20,700.
A bottom is more likely to develop when more traders exit their positions at a loss, according to data from the cryptocurrency intelligence platform Santiment.
“Bitcoin & Ethereum are both having more traders sell at a loss than at a profit this week, the first such week so far in 2023. Historically, once the crowd is exiting their positions more frequently at a loss, bottoms are more likely to form.” Santiment noted in a tweet.
Despite the fact that it has been difficult for it to gain traction near the $22K barrier over the previous several months, the price of bitcoin has been fairly constant over the past few weeks. Prior to the start of February, Bitcoin had been trading at around $23,500 throughout the previous week.
This is Bitcoin’s Trading Strategy for the Next Few Months: – Will BTC Price Reach $30,000?
The crypto space was slashed hard following the collapse of the crypto-friendly bank, Silvergate. For the first time in four months, the token experienced one of the largest single-day drops of nearly $1200.
However, the descending trend appears to have come to an end, as the price is now trading sideways near the newly gained levels of $22,300.
The BTC price, currently appears to have stuck within narrow ranges, but may soon leap long to reach the higher targets in the coming months.
Bitcoin has been trading in constant wave patterns since before, and if the pattern continues, it may slide to the bottom. Once the price tests the lower support, a catapult action may raise the price to a level that could be close to the required target of around $50,000 in a short while from now.
The BTC price reached the previous highs again and faced rejection. Despite the price continuing to consolidate, it flashes the possibility of going high in the coming days. The global reversal of the BTC price chart can be assumed due to the ‘Inverted head & shoulders’ pattern.
March is expected to be extremely volatile as multiple macroeconomic indicators like the CPI, Fed rate, etc. Moreover, more than 140K BTC could enter the markets.
Therefore, the medium target for the Bitcoin (BTC) price is around $40,000 to $42,000, which is expected to happen sooner or later.
Besides, the BTC price is also believed to be witnessing extreme pressure that may prevail for the entire crypto space if a small group of traders wish to make profits.
This may intensify the possibility of a potential growth in the coming years that may mark new highs soon.
Bitcoin’s Golden Cross Emerges: Is This Another Opportunity For A Bullish Breakout?
Bitcoin price dropped below $22,500 from $23,400 in minutes following the Silvergate fiasco. Major exchanges stopped dealing with the crypto-friendly bank that created huge FUD within the space.
As a result, massive liquidations were recorded in the early trading hours. While the market participants have become extremely bearish on Bitcoin, some chances of a rebound may be expected in the coming days.
Coinpedia reported earlier that Bitcoin price experienced a ‘Golden Cross’ event during the previous month, but woefully, the price remained largely unaffected as the very first weekly death cross was on the cards. However, another opportunity for the price to break out of bearish captivity and rise high has presented itself.
On February 7, 2023, a golden cross occurred on the daily timeframe in the spot market, resulting in a significant failure of the bullish signal. A similar event, however, is about to occur in the future price chart, which may offer a nice upward movement.
CME Group, commonly known as the Chicago Mercantile Exchange, which began to offer the very first BTC futures, is flashing massive buy signals.
A Golden Cross, where-in a cross over of 50-day & 200-day MA levels undergoes a crossover, is believed to occur in a short while from now.
In the past, the early signals of a breakout have been false; therefore, other signals like gaps and the filling of them could be quite evident.
Will the upcoming Golden Cross confirm the bullish signals? Stay tuned with Coinpedia for updates on this event!
Crypto Analyst Reveals This Could Trigger Bitcoin’s Next Big Breakout
The largest cryptocurrency by market capitalization, bitcoin (BTC), hit its highest point since August earlier this month. Bitcoin, however, fell after The US Commerce Department reported that personal consumption expenditures (PCE) price index data rose by an unexpectedly strong 5.4% in January.
Bitcoin is still holding above the $23,000 psychological mark for bulls. A green close and a short-term victory for the bulls are possible as BTC approaches the monthly close well above $23,000.
A popular cryptocurrency analyst has revealed what he believes could lead to the next Bitcoin rally. According to analyst Michael van de Poppe, Bitcoin is likely to dip below $23,000 after failing to overcome resistance above $23,800 during yesterday’s rally. He believes that if Bitcoin is able to regain support at $23,000 following its expected drop, it might spark a recovery to $25,000.
The analyst said that he will be considering the above-mentioned scenario right now for Bitcoin. BTC rejecting the vital $23,800 level would mean that the support would be put to another test.
Van de Poppe is also expecting a short-term retrace for Bitcoin, but he is still positive about the long-term prospects of the cryptocurrency markets. The analyst thinks that cryptocurrency is simply consolidating before the next leg up after taking into account the total valuation of all digital assets.
The overall market value of cryptocurrencies is still painting a clear image, according to him. The analyst said that 2017 saw a retest of the all-time high when BTC retested the bottom twice.
“Simplified, there’s still room for crypto to continue the rally in Q2 of this year, as we’ve had a significant amount of intrinsic shocks in the markets past year. Max pain scenario is upwards, not downwards. Positioning myself into longs and buying the dip, patiently.”
BTC Price Analysis: Crypto Expert Michael Van de Poppe Maps Out Bitcoin’s Path To $40K
Michael van de Poppe, a renowned cryptocurrency analyst, has updated his prediction on Bitcoin reaching $40,000. According to him, the market is consistently making small and brief adjustments, followed by upward pushes, which indicates an unmistakable higher trend at the moment, contrary to past trends.
In addition, Michael stated that uphill movement results in substantially more shade. Although the market experienced some corrections over the past ten to twelve days, the apparent levels did not retest, and the same thing is observed with Bitcoin’s current movements.
“Right now we are attacking $25k and even though we are attacking that I stated that I was looking at a correction towards $22,700. I’m not even getting that correction because there’s just so many people jumping into the markets at this point.”—Michael van de Poppe
Bitcoin’s Future Trajectory
If Bitcoin successfully breaks the $25,000 mark with a clear candle, it is expected to rise all the way to $31,000 as investors would be willing to short the price in anticipation of a further increase. Afterward, the leading crypto will reach $35,000 and eventually $40,000.
Moreover, the momentum in Hong Kong seems to be changing, and the macro is performing better. Despite recent market gains, short sellers remain active, and the sentiment is still bearish, indicating investors’ readiness to short.
A close examination of Bitcoin’s weekly and 3-day charts shows an ongoing battle close to a crucial psychological milestone. Breaking this barrier will lead to spectacular momentum; otherwise, the year-to-date upswing will be lost. At the time of writing, one bitcoin equals $24,788.
Bitcoin’s Fate Hangs Near A Crucial Level! Will BTC Price Validate A Bullish Trend Or A Bearish Future Near The $25K Crossroad?
Bitcoin’s 12% surge in a single day has become a debate in the crypto market as it has again sparked signs of a potential bull market this quarter. After witnessing a massive influx of funds near the $21.5K level, the BTC price surged to $25K and made a minor rejection, confusing investors about the upcoming price trend.
Market analysts believe that Bitcoin’s wild price swings are a sign of a bullish and healthy market, while others are concerned about a market crash ahead as the volatility is too extreme to handle ongoing events.
Bitcoin Flashes’ Mother Of All BTC Signals’!
BTC price is showing a solid warning to bears as its indicator recently flashed green, which is the mother of all signals. According to a tweet from a crypto analyst, Mohit Sorout, Bitcoin (BTC) traders and investors have received a rare and significant buy signal for the cryptocurrency, providing a bullish outlook for the digital asset.
The analyst states that the Dollar Cost Averaging (DCA) indicator now hints at a solid bull market ahead for the BTC price. He further mentions this is the 4th time the DCA indicator is flashing in the green region after pushing Bitcoin’s price by 640% in the last bull market of 2020.
Moreover, in a recent statement, Cameron Winklevoss, the billionaire co-founder of the Gemini cryptocurrency exchange, expressed his views on Bitcoin’s outstanding performance. He indicated that the surge in Bitcoin’s price beyond $25,000 is a positive indication of the crypto market’s recovery from its tough situation caused by FTX’s demise.
BTC Price May Develop Two Scenarios Near $25K
The $25K price level is playing a crucial role in bringing the upcoming price trend for Bitcoin as it holds bullish sentiments on the verge of selling pressure from bears. Bitcoin has displayed a stable performance in recent days, as the crypto king holds its price near the $24K level. A breakout near $25K or a failure may bring sudden price fluctuations in both upward and downward directions.
As of writing, BTC price trades at $23.8K, with a decline of over 2.5% in the last 24 hours. A well-known crypto trader and analyst, PStrade, predicts that BTC price may be developed in two scenarios from $25K. First: If Bitcoin clears its resistance of $25K, it may surge above the 61.8% Fib retracement level and gain more long-positions until it hits the liquid zone of $30K.
Second: A failure to retest the resistance of $25K will strengthen sellers’ domination as BTC can witness a spike in short positions, forcing the asset for a downward correction. Finally, a drop below the EMA-20 trend line at $22.6K may plunge the asset to the support region of $18K-$21K, from which fresh long positions may be opened.
Bitcoin’s Fate Hangs in the Balance as CPI Report Looms: Expert Anticipates a Make-or-Break Moment
Bitcoin’s price remains in the negative, and the Consumer Price Index report that is due out later today has further ratcheted up the anxiety among traders and investors, who are unsure whether or not the data will force the king coin to drop much more.
Michael van de Poppe Weighs in
A prominent crypto expert by the name of Michael van de Poppe has chimed in on the topic and said that he does not see Bitcoin dropping much lower. The expert believes that there is a possibility that the price of the king coin will drop below $20,000 before the month of February is finished; however, he anticipates that this decline will be extremely temporary. Poppe provided another refutation of the rumors that the price of bitcoin will return to $15,000.
Since the beginning of the year, the analyst has maintained a bullish stance toward BTC. In his analysis, he predicted many weeks ago that he anticipates a significant decline in the price of the king coin to the level of $21,700.
Poppe admits that the surge in trading activity for bitcoin represents increased momentum in favor of the bulls. This indicates that the value of the cryptocurrency might see a significant increase to reach $40,000 by June 2023.
The market expert believes that a break over the $23,200 level would cause bitcoin to surge above the $25,000 level, which is the next immediate level of resistance. In spite of the fact that he is aware of the possibility that a decline would result in the loss of liquidity, he feels that it may be a profitable chance for buying.
Bitcoin Price
At the time of writing, the 24-hour volume for Bitcoin trading was $35.3 billion, while the price of Bitcoin had fallen by 0.5% to $21,734. Maintaining its lead as the largest digital currency by market value (438.2 billion dollars), Bitcoin is still going strong.
The token’s price might drop to an estimated $21,500 if it continues to trend downward from its present level. Technical analysis, however, shows increased selling pressure, as shown by the RSI and MACD indicators, which might lead to a new bottom of $21,050 in the near future.
Is Bitcoin’s Recent Price Dip A Red Flag Or A Buying Opportunity? BTC Investors May Find Relief Above This Level
After a series of sideways trading sessions, BTC price has finally made a thrilling move downward, bringing hope of a big price action ahead. Several analysts see this trend as a prime opportunity for Bitcoin investors to buy the dip and reap the rewards.
However, not everyone is optimistic about the recent price drop, as some noted that the severe bearish momentum below the immediate support level sent shockwaves to the market, and long-term holders’ are losing their bullish sentiments, which may pave the way to close their positions.
Is BTC Price Dip Building A Buying Opportunity?
The recent dip in the Bitcoin price chart has again worried investors as it wiped out more than 50% gain it made in January. After turning investment portfolios red, Bitcoin shows no sign of an upward reversal. While some investors are feeling uneasy, analysts relieve them as the price dip creates a profitable buying opportunity to accumulate more Bitcoins to maximize gain in the upcoming bull run.
On-chain analytic firm, Messari, revealed that Bitcoin price had been significantly influenced by the FTX’s collapse rather than macroeconomic events like inflation, job growth, and interest rate hike. The firm stated that the BTC price decreased by 25% following the demise of FTX.
However, despite a solid bearish divergence and several bankruptcy filings in the space, Bitcoin’s on-chain activity did not witness a slump. According to Glassnode, the number of Bitcoin addresses holding non-zero balances continues to rise exponentially.
It is reported that the metric rose above 43.8 million this week, signifying investors’ entry amid the market dip. Moreover, Bitcoin’s fear and index metric trades at 48, which indicates a neutral sentiment among traders even after the solid plunge.
Bitcoin Is Preparing For A Big Target Ahead
Bitcoin price had dropped over 5% in the last 24 hours as sellers placed short positions when BTC troubled to trade above its crucial price point of $23K. As BTC closed its price below the support of 31.8% Fib retracement at $22K, it witnessed intense bearish domination that plunged its price to $21.7K.
According to CoinMarketCap, the price of BTC moves near $21.8K. The drop below the EMA-20 trend line has strengthened bearish goals that witnessed massive liquidation of over $50 million. Analyzing the daily price chart, Bitcoin is repeating its December consolidation level, which was formed after the BTC price got rejected at 4H-MA50.
A bullish move in the BTC price chart is expected by the end of February as the Stochastic RSI makes a bullish cross inside its oversold support region, which previously marked a bullish rally in January. To confirm a bullish move, BTC needs to hold its price above EMA-20, and a breakout near $23K will again fuel a bullish excitement and set a target of $29K.
Can Bitcoin’s Price Skyrocket with Increased On-Chain Activity? Here’s A Closer Look
Bitcoin price enjoyed a decent rally in January after posting a choppy 2022 following high-profile collapses including Terra Luna UST and FTX crypto exchange. Having rejected $24k for the past five days, the Bitcoin price exchanged around $23k on Tuesday. However, the largest gains have been recorded in the small caps altcoins like Baby Doge Coin, which mostly signifies the end of a cycle.
Furthermore, money circulation in the crypto market is observed to move from large caps to small caps later. As such, on-chain intelligence firm Santiment has warned crypto traders to take extra caution with bear traps in the coming weeks.
Bitcoin On-Chain Spike Amid Price Correction
Ever since the Bitcoin Taproot was upgraded, the overall network’s security has increased exponentially with each successfully mined block. Moreover, Bitcoin miners overwhelmingly backed the Taproot upgrade, which has in turn seen block utilization spike to 100 percent according to on-chain analysts.
As Bitcoin nodes and miners increase around the world, the Taproot upgrade was designed to be more useful in identity masking in a regulated manner over time.
“Since taproot script spends can only be made from existing taproot outputs, inscriptions are made using a two-phase commit/reveal procedure,” an ordinals inscription notes.
According to research by on-chain research firm Glassnode, the Taproot adoption metric has risen to an ATH 7.47 per cent and Taproot Utilization to 2.84 per cent.
With a notable spike in on-chain activity, analysts are arguing if the underlying Bitcoin value will rally to $30k in the near future.
Morgan Creek CEO Predicts Early Start To Bitcoin’s Bull Run; Here’s Why
The year 2023 has started off relatively well for the cryptocurrency industry. The market appears to be recovering from the unprecedented FTX collapse, with major token prices beginning to rise. BTC, one of the major tokens, is now worth $23,335; significantly higher than $16,547, which was its price at the end of 2022.
The community is optimistic and anticipates further gains in the crypto industry across various tokens. Here’s what Yusko has to say about it.
What is Bitcoin halving and when is the next one?
The Bitcoin halving occurs when the reward for Bitcoin mining is cut in half. Every four years, the amount is halved. The halving policy was incorporated into Bitcoin’s mining algorithm to combat inflation by preserving scarcity. In theory, a slower rate of Bitcoin issuance means that the price will rise if demand remains constant.
Given that new Bitcoins are mined every 10 minutes, the next halving is expected in early 2024, when a miner’s payout will be reduced to 3.125 BTC.
Mark Yusko’s prediction for BTC
According to Mark Yusko, founder, and CEO of Morgan Creek Capital Management, Bitcoin’s bull market will likely begin sooner than expected due to anticipation of the BTC halving and favorable macroeconomic conditions.
Yusko believes that the next crypto bull run, or “crypto summer,” could begin as early as the second quarter of this year due to a combination of dovish central bank policies and the anticipation of Bitcoin halving.
While the Federal Reserve of the United States is unlikely to cut interest rates anytime soon, markets, according to Yusko, tend to anticipate the Fed’s decisions. That means that even a slowing or halt in interest rate hikes would be interpreted as a sign of an impending pivot. This would create a positive dynamic for all risk assets, including cryptocurrency.
What’s Elon Musk’s POV?
Elon Musk, in a separate Twitter post, stated that if the Fed raises interest rates, the chances of a recession intensify. According to the post, “if the Fed raises rates again next week, the recession will be greatly amplified.” Elon Musk predicted that the recession would last until the spring of 2024.
Evidently, this is in stark contrast to Yusko’s opinion.
To conclude
In general, Bitcoin halving is regarded as a good economic model because it exerts disinflationary pressure on the digital currency, allowing it to appreciate in value over time. Yusko predicts that halving can be beneficial for the prices of cryptocurrency and help the market.
It’s exciting to see differing perspectives and potential outcomes for the crypto market. We would love to hear your thoughts and opinions on the matter.
Bitcoin’s Hash Rate Hits New Records; What Next For BTC Price ?
As the 2023 bull rally drives Bitcoin (BTC)’s price movement to new five-month highs, the largest cryptocurrency’s network is experiencing new records in activity. Data from MiningPoolStats, show that on January 26th, Bitcoin’s hash rate reached a new record high.
The entire amount of computer power that is linked to the Bitcoin network is referred to as the hash rate. If the current rate of increase in BTC prices is maintained, then it is likely that a new level will be registered.
According to the findings of on-chain analyst CryptoQuant, an increase in Bitcoin values would prompt a greater number of users and mining farms to turn on their rigs, which would lead to an even higher hash rate.
CryptoQuant added that the increasing hash rate would be a sign that strong liquidations were about to occur, which may lead to a reduction in mining activity and a subsequent decline in price.
The expert believes that the opposite is true, citing data that is stored on the blockchain. This is despite the fact that there seems to be a direct correlation between the spot price of Bitcoin and the hash rate. He is confident that prices and the peaking hash rate of bitcoin can move in opposite directions, which will affect the coin’s valuation.
Furthermore, the expert pointed up instances in the years 2021 and 2022 in which increasing hash rates led to major price retracements after strong gains in price. The average price drop during the selloff was 19.5%, with the steepest drop being 37%. There were seven events that caused the selloff. He goes on to say that prior to this downturn, the coin’s valuation had a tendency to report a maximum increase of 11%.
BTC is currently valued $22,968 as of the time of this writing, which represents an increase of over 10% in the past seven days but a decrease of 0.06% in the past twenty-four hours.
Top Crypto News Today-Traders Invest in Small Cap Altcoins, Is Bitcoin’s Party Over?
As the crypto markets gained some momentum, Bitcoin, Ethereum, and other Altcoins also surged, recovering from the losses incurred after the FTX collapse. BTC’s price surged above $23,000, while Ethereum headed towards $1700. Woefully, both failed to hold a tight grip over the rally that plunge below their respective levels.
In the meantime, traders after gaining significant profit appear to diversify their portfolio and hence gain interest in the small-cap altcoins. As per the data from Santiment, the investors are now moving out of the large-cap tokens like Cardano, Solana, etc, and investing in the other tokens within the top 200.
The platform lists a steep raise in the daily active addresses of the altcoins with a market cap below $300M like Chianbing (CBG), Morpheus Labs (MITX), Monetha (MTH), Polytrade (TRADE), PlusPad(PLSPAD), Ribbon Finance (RBN), etc and many more. The money has flown from the large caps like Cardano (ADA), Solana (SOL), Polkadot (DOT), etc which had made huge headlines in the first 3 weeks of January.
These altcoins are pretty small and hence the money flown from larger alts may draw a huge impact. Therefore, if the rotation on money continues, then these small-cap altcoins may witness a positive upswing in the coming days. On the contrary, these altcoins may also plunge hard if the traders wish to extract their profits.
However, new token exploration is always risky but is also equally important to distribute the dominance within the markets.
BTC Price Analysis: Analyzing Bitcoin’s Prospects Of Reaching The $25,000 Mark
Despite market analysts’ skepticism that Bitcoin’s recent surge is a trap for bulls, the cryptocurrency has continued to rise. Data from CoinGecko shows that BTC has increased by 36% this month, reaching a peak of $23,000 on multiple occasions. This marks the highest monthly gain for the leading cryptocurrency since October 2021.
As traders eye the $25,000 level, they remain vigilant for potential downturns. However, for Bitcoin to reach a price of $25,000, a number of factors will need to come into play, including increased demand, positive sentiment, and a lack of negative market developments.
Bitcoin’s Road to $25k
For Bitcoin to reach a price of $25,000, it would likely need to follow a pattern of rising to a key level of resistance, such as $23,000, before retracing and moving on to the next level of support, such as $23,800, and gradually approaching $24,500 before reaching the target price.
If bulls are able to maintain a consistent pattern of breaking through resistance levels, as they did over the weekend at $23,000, the outlook for the month suggests that BTC may even reach as high as $29,000 before hitting a crucial cap. However, it should be noted that this is a speculative analysis and nothing can be predicted with absolute certainty.
Nevertheless, if bulls maintain their current level of dominance or even increase it, the possibility of the price reaching $30,000 in the near future should not be ruled out.
Bitcoin’s Bull Run: Investor Optimism Or Market Manipulation?
The cryptocurrency market began the day on a less-than-favorable note, but one currency that has maintained its bullish momentum is Bitcoin. Despite the King currency holding steady at around $23,000, it suggests that investors remain optimistic about Bitcoin. This has led to the global cryptocurrency market surpassing $1 trillion.
As of writing, Bitcoin is currently trading at $23,084, with an increase of 1.63% over the last 24 hours.
However, a prominent crypto analyst and trader has offered a different perspective on Bitcoin’s trajectory.
The analyst, known as Capo, has informed his 710,100 Twitter followers that the market performance of cryptocurrencies is not driven by organic demand. Given the direction of the current bull run and the high time frame resistance, the analyst believes that it is manipulation rather than demand that is driving the market.
Are tough times ahead for BTC?
Despite the claims made by one of his followers that the surge in Bitcoin’s price from $18,000 was due to an increase in demand as indicated by the minting of stablecoins, Capo maintained that this demand is artificial and the correction will be stronger as the demand increases.
It is worth noting that last week, Capo had predicted that Bitcoin would test its resistance level of $21,000 and that there was no bullish confirmation yet. However, his prediction turned out to be incorrect as Bitcoin’s value continued to rise.
In contrast to Capo’s predictions, another crypto analyst and strategist, Smart Contracter, believes that Bitcoin will experience a correction once it experiences a 38% surge in January.
Smart Contractor makes use of the Elliott Wave theory, which is a form of advanced technical analysis that uses crowd psychology to predict future price movements. According to the theory, when an asset is in waves one, three, and five, it tends to be bullish, while if it enters waves two and four, it suggests that the asset will experience a correction.
BTC Price Analysis: This Factor is Driving Bitcoin’s Unstoppable Rise to $30,000
Since this month’s cryptocurrency surge was so strong, traders are keeping an eye out for the price bottom. Is the market ready yet, or will bears drive prices back to the $20K crucial optical support level? With unusual RSI readings, analysts are now trying to identify Bitcoin’s bottom.
According to trader Crypto Wolf, a significant narrative now in motion sets Bitcoin’s most recent rally unique from all others. On January 18, he observed that RSI had printed a bullish divergence on weekly timescales.
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history, a once in a life opportunity. Technicals were there, charts were screaming bottom but as usual majority was in full bear mode,” Wolf said.
Trader Tardigrade, better known as Alan on social media, a trader and analyst, believes that the good times will last for a while as he expects some consolidation.
“On daily chart, 1. RSI Strong uptrend to overbought zone 2. $BTC had a significant drop before that 3. Sudden buyers bought up $BTC. Big rally will be following after some consolidation,” he noted.
At the time of writing, the daily RSI was close to 87, which is the highest reading since January 2021, months before the price of bitcoin to the dollar reached new all-time highs of $58,000 in April and $69,000 in November.
Three of the ten highest RSI readings for 2019 were recorded by BTC within the past two weeks. Its reading of 89.3 on January 14 came in third, with readings of 80.8 and 90.9 on January 16 and 17, respectively. Since 2019, out of over 1,500 trading days, Bitcoin’s RSI has only fluctuated between 78 and 79 ten times.
Bitcoin’s Price Rally Is Just the Beginning as Indicators Reveal Crypto Market Is Not Overheated
Cryptocurrency’s overall market capitalization has once again surpassed $1 trillion thanks to the market leaders Bitcoin and Ethereum, who emerged as overnight winners. After a significant bear market dip, the price of bitcoin has started to rise.
The uptrend started following a new year in 2023, but if Bitcoin can turn a particular level into a support floor, things can become interesting. Regardless, 2023 is off to a strong start as BTC is up almost 36% so far, and an overnight gain of 8% has lifted the price of Bitcoin above a significant threshold.
According to a verified author for CryptoQuant, Dan Lim spoke about on-chain data showing two indicators that might not be good for BTC. Dan Lim presents two indicators that lag behind the price of Bitcoin in a recent analysis that was featured by the staff of CryptoQuant.
“Looking at the open interest and leverage ratio, they have fallen sharply since the FTX incident, and despite the recent strong rally in #Bitcoin, these two indicators still haven’t overheated at all.”
Both metrics are still very close to multi-month lows, even if the Bitcoin price has now entirely recovered from the period of its fall brought on by the FTX/Alameda fiasco.
“It is necessary to have an active buying perspective if there is a strong drop of Bitcoin in the future or if it renews its low point.”
Mid-December marked the bottom for aggregate OI, and the rebound is still in its early stages. The second indicator, the Estimated Leverage Ratio, which represents the level of leverage that traders of derivatives choose to use for their holdings, bottomed out this week but is still unable to reach levels seen in December 2022.
In anticipation of the U.S. Department of Justice’s statement regarding a “significant international cryptocurrency action,” the two market leaders had momentarily declined. Crypto investors might feel as though we’ve returned to the exhilarating times of the Bitcoin bull run, even though we’ve obviously come a long way from its peak in 2021.
Bitcoin’s Fate Depends on the Federal Reserve’s Next Move – Will It Crash or Hit New All-Time Highs?
Experts speculate on the probable influence of the upcoming monetary policy adjustments by the Federal Reserve on the cryptocurrency market, particularly on the price of Bitcoin, as it nears $23,000 and the majority of the crypto market remains in green with the global crypto market moving over $1 trillion for the first time in what has been a while.
What Will Bitcoin’s Fate Be?
Given the dollar’s status as the world’s reserve currency, it comes as no surprise that the price of bitcoin is highly sensitive to fluctuations in the availability of US dollars across the world.
The market’s recent performance indicates that participants are expecting the Federal Reserve to change its stance on monetary policy. If the Federal Reserve follows through with a policy move, some analysts believe it might sustain the current advance in Bitcoin and spark a secular bull market.
One thing is certain as the world watches the future of monetary policy and its possible influence on the crypto market: Bitcoin and digital currencies are in a state of constant development, with substantial room for both volatility and growth.
Traders paved the way for the new Bitcoin gains amid worries of a severe drop, and Bitcoin prices kept rising to new multi-month highs. Bitcoin’s value has increased by nearly 9% in the last twenty-four hours and 11.5% in the last seven days, to a current price of $$22,848 as of this writing.
Analytics tool built directly upon the blockchain Meanwhile, yesterday’s removal of ask liquidity on Binance was spotted by Material Indicators, paving the way for Bitcoin’s debut surge beyond the $22,000 barrier.
Some familiar voices like Toni Ghinea are still warning traders to brace for the worst, while others are saying that this is only the beginning of a lengthy bull run, proving that Bitcoin is never beyond suspicion at its highs. Which one is it going to be? All we can do is wait and see.
Bitcoin’s Short Squeeze Is Imminent, Claims Top Analyst
From trading around $20,900, the world’s largest cryptocurrency Bitcoin has surpassed $22,000 in just 24 hrs. This whooping upward movement has pushed other currencies like Ethereum, Cardano, XRP, Solana among other altcoins. The moment has resulted in the global crypto market cap gaining its $1 trillion mark again.
At the time of writing, Bitcoin is changing hands at $22,723 with a surge of 8.47% over the last 24 hrs.
Bitcoin Price At $30K ?
Meanwhile, as the flagship currency has broken its crucial resistance of $21,000, most of the industry experts are predicting more price rally ahead. Among these is the well-known crypto analyst, Crypto Kaleo who is targeting for BTC’s next bull run. The analyst informs his 550,000 followers over Twitter saying Bitcoin is all set to hit its next major resistance of $30,000 which was last seen in June 2022.
However, he believes that before Bitcoin makes a move towards the said target, the King currency will see some pull backs. If that happens, Kaleo claims that Bitcoin will tumble below $20,000 before reaching $30K. The analyst addresses this phenomenon as a short squeeze.
Short squeeze is when a trader purchases an asset for a particular price so that he can sell them at a lower price and keep the difference. Here the overleveraged short positions are used in the future markets. However, when the market rallies against their predictions, these traders will be forced to buy the borrowed assets.
Now, as Bitcoin has spiked more than 23% in the last one week, Kaleo strongly believes that a short squeeze is approaching.
On the other hand, as per the data the Bitcoin Fear and Greed Index indicator has dropped to neutral which indicates increased trading volume. Bitcoin’s trading volume has hit $10.8 billion after a surge of 114% in the last seven days. Hence, an increasing trading volume often leads to price volatility and this is the reason traders should make their next move cautiously
Bitcoin’s Bullish Rally Might Be Short-Lived, Here’s Why
The post Bitcoin’s Bullish Rally Might Be Short-Lived, Here’s Why appeared first on Coinpedia Fintech News
The cryptocurrency experienced its largest weekly percentage rise since February 2021 as of January 13 when it closed the week with 20% gains. Since the collapse of the troubled cryptocurrency exchange FTX, the price of bitcoin, which is presently trading at $20,800, has had a significant run this week, reaching its highest level in more than two months.
The host of the YouTube channel Coin Bureau predicted that the cryptocurrency market slump will extend through 2023. Crypto expert Guy Turner claimed he keeps an eye on traditional markets due to their association with the cryptocurrency market. In light of the gloomy forecast for the property and equity sectors, Turner said he anticipates additional losses for crypto assets.
Even though Bitcoin soared beyond $20,000 from $16,581 on January 1st, Turner predicts that the boom in crypto assets won’t likely last.
“There’s a lot to look out for with what we see from the Fed and what decisions they make. That switch to QE [quantitative easing], if it happens, could be the indication that something’s already gone seriously wrong. I’m kind of keeping an eye on things like the housing market and the stock market as well because we’ve obviously got that correlation between stocks and crypto.”
Will We ‘Turn the Corner’?
He said that he believes a lot of people seem to be expecting the stock market to take the next leap lower, so he is preparing himself for that as well. He also added that he is anticipating sort of more lows. The market may take some time to recover, according to him, but there may be some positive news for some cryptocurrency initiatives. He also said that investors are still hesitant to invest in cryptocurrencies.
“We’ll hopefully see some signs that the macro environment is changing, and there’ll be that excitement that says, “Maybe we’ve turned the corner,” and maybe we have, but I still think that will take some time to manifest itself in the markets.”
Bitcoin’s Two-Year Downward Trend Shall End Soon, Claims Analyst
The overall cryptocurrency market is showing signs of growth, even as the global cryptocurrency market struggles to regain its $1 trillion market capitalization.
Currently, the global crypto market cap has gained 1.55% in the past 24 hours and is trading at $819.85. This price rally is led by Bitcoin, the largest cryptocurrency by market cap, which is currently valued at $16,864 after a 0.77% increase in the past 24 hours. Resistance for Bitcoin is at $16,900, while support is at $16,850.
Crypto analyst Kevin Svenson has expressed a bullish outlook on Bitcoin. In a tweet to his 118,900 followers, Svenson mentioned that Bitcoin’s relative strength index (RSI) is about to move beyond its diagonal resistance, potentially marking the end of its two-year downward trend.
The RSI is an indicator that measures the currency’s movements.
In addition to his tweet, Kevin Svenson has also released a strategic video explaining the potential of the upcoming RSI breakout for Bitcoin.
According to the analyst, this movement is crucial for cryptocurrency. Svenson believes that the breakout, which he expects to occur within the next two weeks, will bring about a shift in Bitcoin’s trading pattern. He cites a similar weekly RSI breakout at the end of the 2018 bear market for Bitcoin.
If the RSI follows Svenson’s prediction, he claims that Bitcoin’s price could reach a target of $21,000. At its current trading value, Bitcoin would need a 25% increase to hit this target.
Historically January Is Not Bitcoin’s ‘Best Month’, February to Be a Game-Changer?
The price of bitcoin had already dropped significantly in 2022 before the abrupt failure of the trading site FTX last month. After a lackluster 2022, all eyes are on Bitcoin as it enters 2023 with high expectations. As noted by expert Daan Crypto, January has historically not been Bitcoin’s “best month.” The analyst supported his claim with data, stating that 60% of the months since 2013 had resulted in a negative return.
However, he also revealed that February has been BTC’s best ‘returning’ month. He said, “Besides that, February has been one of $BTC’s best returning months. Keep in mind that this data is not a reliable indicator for future returns. Use in confluence.”
As for Bitcoin price prediction, the analyst said that BTC had returned to the “Christmas Range” between $16.7-16.9K. He said that all eyes are on the $16.9-17K area which has been rejecting prices for some time now.
While Bitcoin is consolidating, crypto analyst Ali Martinez thinks the trend’s direction may be determined by a move outside between $16,000 and $17,000. According to on-chain statistics from IntoTheBlock, there are two big supply roadblocks at $16,600 and $17,000, respectively, where 1.46 million addresses hold 915,000 and 730,000 bitcoins, respectively.
Bill Miller Says Bitcoin’s Current Price Levels Are ‘Pretty Remarkable’
Despite Thursday’s carnage on the US stock market, the price of bitcoin (BTC) remained stable. The unanticipated breakthrough of BTC last week led to a rally to almost $18,357 before a severe fall at the end of the week. In the end, BTC ended the week at $16,781. At the time of writing, Bitcoin was trading at $16,843 and was up by more than one percent.
According to investor Bill Miller, one catalyst will probably help Bitcoin (BTC) to reverse and perform better. Miller said that despite its volatility, Bitcoin may be included in investment portfolios as a “sound speculation”.
In a recent interview with Barrons, he recalled that Bitcoin was $5,800 at the market low in 2020. The price of one bitcoin is currently roughly $17,400. Since then, Bitcoin has increased by 190%, and the market has gained by 70%.
He added, “If anyone has a time horizon of longer than a year, you should do quite well in Bitcoin. I wouldn’t call that an investment. I would call it speculation, but I would call it sound speculation.”
Despite the upheaval in the cryptocurrency markets over the past year, Miller believes Bitcoin is still holding up well. Miller said that a change in the policies might be the catalyst that turns BTC around. Interest rates are rising as the Federal Reserve works to combat inflation.
“I’m surprised Bitcoin isn’t at half of its current price given the FTX implosion. People have fled the space, so the fact that it’s still hanging in there at $17,000 is pretty remarkable,” he added.
The upcoming weekend falls on the same day as the Christmas break. One might anticipate that volumes will be even lower throughout this weekend if they are already low on typical weekends. Will the market catastrophe once again shake the entire industry?
What Is Bitcoin’s “Real Max Pain” Point? Here’s What You Should Know
Bitcoin’s price remains in a downward trend as we approach the last meeting of the Federal Reserve Board for the year. The value of the king crypto has decreased by 1.05% in the previous twenty-four hours and by 1.66% in the past seven days as of the time this article was written.
After its most recent weekly finish, the Bitcoin to US Dollar exchange rate exhibited almost little upward momentum ahead of the opening of trading on Wall Street on December 12. The most significant cryptocurrency is still trading inside a rather small range, and market watchers are becoming more eager for fresh triggers to drive price action.
Traders are now in a state of uncertainty, not knowing how to do business in such a market. It would be prudent for them to investigate the options markets in order to determine whether or not Bitcoin will finally give in to the negative newsflow.
Analyst Shares Opinion on BTC Max Pain Point
Although it is reasonable to conclude that a new Bitcoin price decline would force many hodlers to reassess their investing approach, it is still unclear as to whether this bear market would be similar to the ones that have come before it or not.
In the past Bitcoin’s history, bear market bottoms were accompanied by at least 60 percent of the BTC supply being exchanged at a loss. This was the case when the market was at its lowest point. To this point, the market has nearly, but not quite, followed that trend.
However, as the analyst Mags clarified in his Twitter post, this does not suggest that the real max pain point is just around the corner. Mags is a cryptocurrency trader as well as a technical analyst, and he claims that he has been holding Bitcoin since 2016.
What is the max pain point?
The “max pain” or “max pain point” is the striking price point at which the greatest number of options contracts are currently active, and the price at which the asset would result in losses for the most option holders after expiry.
Simply put, “maximum pain” refers to the time at which option purchasers stand to lose the greatest money. Conversely, option sellers could benefit the most.
In Mags’ words:
“$10k – $14k won’t be Max pain for majority because most of you are prepared for it! The real max pain is the price moving inside a $500 range for months.”
He also said that most individuals would lose a significant sum of money due to excessive trading inside a 2% flat Range, adding that “as long as BTC does something (in any direction), we’re good”.
Meanwhile, as 2023 draws near, crypto enthusiasts are guessing at what would be the lowest potential price for cryptocurrencies. The failure of the exchange FTX has further compounded Bitcoin’s woes.
Some experts predict that by 2023, Bitcoin’s price might unexpectedly drop to the $5,000 range. If that happened, its current price of $16,900 would be reduced by another 70% then.
The decline or success of the crypto king will be influenced by inflation, interest rates, and the presumably oncoming recession. As we enter the year 2023, we can only hope that they become lower.
Closing Thoughts
Analyst Mags’s claims have been largely affirmed by the crypto community. Some others are holding out hope that Mags’ prediction would come true so that they may wait until later to invest in the leading cryptocurrency.
The interest in Bitcoin’s future performance among community members seems to be high. Where does it go, up or down?
This is When Bitcoin’s (BTC) Price May Raise More Than 12% to Reach $20,000!
Bitcoin price yet again slashed below $17,000 after struggling to hold above these levels for a while. Meanwhile, the bears continue to remain moderately passive which denotes the possibility of a minor upswing shortly. Yet, the upswing is expected not only to reclaim the levels beyond $17,000 but also to uplift the price beyond the crucial resistance at around $18,500.
However, the BTC price may certainly not undergo a fine upswing as the bottoms are still not reached. Hence, the token is believed to undergo a fine recovery very soon, but only after a notable drop. A popular trader and analyst, Altcoin Sherpa, tells his 188K followers that the BTC price is about to spark a massive upswing beyond $18,000 only after the star crypto bottoms out.
“Overall idea: BTC has not macro-bottomed quite yet, but I think that we are going to see [its] price eventually go into the $18,000s. Would expect a breakdown there and will be looking for shorts. I think [altcoins] continue to do well for the next few weeks while this happens for BTC,”
According to Altcoin Sherpa, most of Bitcoin’s descending movements have disappeared recently, but he still believes that the bottoms may soon knock in.
“BTC: a bunch of neutral candles, nothing really to say about this. I think that the bulk of the immediate downtrend is over, but I don’t think this is the macro bottom. Still wouldn’t dismiss this going to $18,000- $19,000 before potential new lows,”
The analyst believes that Bitcoin could go as high as $19,000 only if it surpasses the the $17,500 level. The price may go to as high as $20,000 beyond these levels, which may trigger the BTC shorts, dragging the Bitcoin price back to $19,000 in no time.
Ahead of Bitcoin’s $1.14 Billion Options Expiry on November 25, Here’s What You Should Know
Leveraged bulls seem to be unprepared for Bitcoin’s $1.14 billion monthly options expiring on November 25. The month-end options expiration for Bitcoin is scheduled tomorrow at 8:00 AM UTC and $1.14 billion worth of bitcoin will expire. Data from Coinglass showed that traders were still split, with the difference between bullish and bearish bets being relatively small.
When Bitcoin tested the $15,500 support on November 20, it experienced a loss of more than 7%. Despite how minor the correction may appear, it resulted in $230 million worth of future liquidations. Since November 11, Bitcoin has not recorded a daily close of over $17,000. This could, however, benefit the bears despite the 6% rally from the $15,500 bottom.
Important levels, scenarios, and bets
The psychological levels of $16k, $17k, and $18k appeared to be the most attractive to traders. At precisely 16k, put OI was at 3.3k BTC, favoring bulls, while call OI was at 1.06k BTC.
While most bullish bets are focused on upward targets, most bearish bets are placed at lower strike prices. The placement of bearish bets was somewhat higher than that of bullish bets at a $17k strike price, as shown below. This crude calculation includes both put and call options, which are only utilized in neutral to bearish trades and bullish wagers, respectively.
Because calls have an advantage, the loss would be minimal if Bitcoin hovers around $16.5k. However, if Bitcoin trades at $16k or $17k, it will probably give in to the pressure from the put traders.
There’s a chance the expiry won’t happen
The amount of calls and puts at $18k was mostly identical (2.67k vs. 2.38k BTC). Therefore, if the price stays at the specified level, the expiry may not even occur because the at-par bullish and bearish bets will ultimately cancel each other out. The chances of this scenario coming to play are low given the adverse market conditions.