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?
More Pain Ahead for Crypto Market Says XRP Lawyer in Ripple vs SEC Lawsuit
The post More Pain Ahead for Crypto Market Says XRP Lawyer in Ripple vs SEC Lawsuit appeared first on Coinpedia Fintech News
The crypto space which suffered massively during the recent fallout ever since Sam Bankman-Fried led FTX exchange collapsed finely. On the other hand, the US SEC and its Chair Gary Gensler have been presumed to have taken irregular steps to protect the market. On the other hand, the lawyer representing Ripple suggested that the crypto space may encounter more pain in the coming days.
John Deaton, the lawyer representing XRP holders in a series of threads shed some light on the SEC’s next plan of action. He mentioned that the SEC is set to run after the crypto space in the next couple of years as they have doubled the size of the SEC staff dedicated just to crypto.
As the SEC chair is in favor of pushing regulations even in non-fraud cases like Ripple, LBRY , Dragon Chain, BlockFi, and more. Deaton specified that the SEC is the largest creditor in the BlockFi bankruptcy. The lawyer has predicted earlier that the SEC may coon go behind all the exchanges for dealing with unregistered securities.
However, it all came out to be true as the commission sued Coinbase, for selling securities and also believed that this could happen again which may cause another 50% crash in the coming days. This may further allow the whales and the institutional investors to accumulate a large share of the market ahead.
This Is What’s Barring Ethereum From A Bull Run! ETH Holders To Get Max Pain By December
The crypto market has witnessed several impactful events that have plunged multiple digital assets to the bottom. From the last few weeks, there has been intense selling pressure in the global crypto market due to the sudden collapse of FTX, which forced investors to liquidate massive positions and exit the market due to unpredictable price fluctuations. The 2nd largest cryptocurrency, Ethereum, accelerates its bearish bloodbath as its price seems to be impacted mainly by massive fund movements by whale holders.
ETH Price Tumbles Down As Dormant Whale Wakes Up!
FTX’s collapse is not the only reason for stopping Ethereum from trending upward as the FTX hacker gains a significant role in controlling ETH price. The FTX drainer address holds over millions of dollars worth of Ethereum, which is enough to lead the asset to the worst price levels.
Coinpedia reported that the FTX hacker who stole over $600 million from the crashed crypto exchange is continuously swapping stolen Ethereum for cash-out purposes. Recently, blockchain tracker, PeckShieldAlert, reported that the hacker swapped around 15K Ethereum (~$16.78 million) in exchange for renBTC, which further converted into 1023.64 Bitcoin.
Moreover, an on-chain data provider, LookIntoChain, mentioned an Ethereum address that was inactive for almost two years has recently made huge movements of ETH holdings. The dormant address has moved 720K Ethereum (~$817 million) to a new wallet address, hinting at a plan of a massive selloff.
Moreover, Whale Alert tracked a movement of 400K Ethereum from several crypto exchanges and individuals amid the dump situation. According to on-chain data, whales moved over 300K Ethereum from the crypto exchange Upbit to different wallets.
Ethereum May Drop To An Extreme Fear Zone
Following the massive liquidation of Ethereum, the asset is trading in a crucial fear zone, which may soon trigger a sharp fall in the ETH price chart. A pseudonymous crypto strategist, 0xStacker, predicted that Ethereum might drop to $1,015 if the current selling pressure continues. If bears take control of Ethereum, its price can fall further and take support at $840.
However, the analyst believes this price momentum can be an excellent opportunity to invest in DCA (Dollar Cost Averaging) to pull out a significant profit in the upcoming bull run.
Amid the ongoing dump situation, the DeFi activity on Ethereum has dropped rapidly as DefiLlama showed that the total value locked (TVL) in dApps on Ethereum declined by 4% to $23.8 billion.
Moreover, on-chain analyst firm, Coinglass reported that $40 million worth of ETH future trades (long position) were liquidated in the last 24 hours, which is expected to come after a significant loss for ETH traders during the turmoil.
At the time of writing, Ethereum trades at $1,114, with a drop of over 5% from yesterday’s performance. The RSI-14 has rapidly dropped to 34-level as Ethereum trades below its long-consolidated zone after breaking the $1,181 barrier.
If the FTX hacker cashes out all his ETH holdings, Ethereum may continue its death rally further and drop below its crucial support zone of $1,075. After that, the ETH price will likely stabilize near $900 before igniting a fresh surge by the beginning of 2023.
Bitcoin Bottom Not In , BTC Price Can see Max Pain in December-January
The worst-than-expected CPI data has caused Bitcoin to experience massive volatility on 13 October. Several prominent crypto strategists and analysts have already predicted the future prices of Bitcoin.
At the same time, some analysts predict a bullish note as Bitcoin can see a short-term bullish rally again. Toni Ghinea, a famous crypto analyst, now indicates that Bitcoin is ready to initiate a mini-bull run before bottoming by the end of 2022.
Bitcoin Is Under Bull Trap!
Bitcoin has been continuously trading in a consolidated zone near the $19K price level, and it may soon form a short-term bullish momentum, predicted by a crypto analyst.
Toni Ghinea, a significant crypto strategist, who predicted that Bitcoin would drop below $10K by the beginning of Q1 of 2023, now forecasts that the crypto king is poised for an upward jump before initiating a downtrend in the price chart.
According to his recent tweet, Bitcoin is forming a falling triangle pattern, which indicates a resistance level at a price range of $22K-$24K. Bitcoin is projected to reach this price range by the end of October before starting its bearish journey.
The analyst further predicts that this bullish trend may be short-lived as BTC price is expected to drop significantly to a price zone of $14K-$16K by the end of December.
Toni predicts that BTC may have a considerable price recovery by the beginning of 2023 as it can touch a maximum price level between $28K to $30K.
For June 2023, Toni further predicts that Bitcoin may again have a significant price drop, touching the bottom line between a price range of $10K to $12K.
However, he looks bullish for the rest of 2023 as BTC can have a smooth bull run which will stretch to 2024, hitting a trading price of $26.5K.
What Is Bitcoin’s Technical Analysis Saying?
Bitcoin investors may get relief as Bitcoin is showing a short-term bullish momentum. According to CoinMarketCap, Bitcoin is currently trading at $19,136 with a downtrend of nearly 1%. However, the candles on the Bitcoin price chart may soon turn green as it can attempt to break the price level of $20K.
EMA-50 is currently at $19.8K, acting as an immediate resistance level for Bitcoin. If BTC successfully breaks this level and holds its price above it, it can soon make an upward target of $22K.
SMA-14 line trades near 47-level, hinting a stable price momentum for now. However, the MACD line is approaching its trend line, which shows that Bitcoin may soon have a breakout to the upper side.
Conversely, the Bollinger band’s lower limit is at $18K. If the bullish analysis fails, Bitcoin price can drop below $17.5K and may continue to plunge until December.
The RSI-14 indicator is not impressive as it continuously declined and reached 44-level. If Bitcoin comes over any negative news, its price may have a sharp fall and get to the predicted $10K level in no time.