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DeFi tokens make triple-digit gains as Bitcoin cost look for assistance

Since topping out at $18,476 on Nov. 17, Bitcoin price has been flirting with the $18,000 level as bulls fight to flip the level to support and chase after the all-time high at $19,789. 

While this battle takes place and the bulk of crypto and mainstream finance outlets focus on Bitcoin price, a number of less-loved crypto assets are producing generous returns for investors.


DeFi Assets Index. Source: Messari

As shown by Messari’s DeFi assets index, many of the top tokens are providing hefty double-digit gains.

Within the last 7 days, AAVE ricocheted off its double bottom to rally 214% and currently trades slightly above $80.

Day traders are likely playing the support / resistance checks within the ascending channel pattern. At the time of writing, AAVE’s trading volume, MACD and RSI still reflect a healthy amount of interest from bulls.


AAVE/USDT. Source: TradingView

Even Curve finance’s CRV governance token, one which many crypto investors have described as a complete laggard, pulled off a clean double bottom reversal and rallied 176% to $0.84.


CRV/USDT. Source: TradingView

After nearly being shorted to death by the likes of Sam Bankman-Fried and other savvy professional traders, Yearn Finance’s (YFI) token is also making waves with an 83.5% gain in the past week.


YFI/USDT. Source: TradingView

On Nov. 18 YFI price was at the 50% Fibonacci retracement level ($25,500) and bulls were attempting to flip the level to support. Within the last few hours, this was accomplished and the price sliced through a gap in the volume profile visible range (VPVR) to make a new daily high at $29,850.

Unsuprsingly, YFI clones like DFI. Money (YFII) and YF Link (YFL) also followed suit and each has rallied 58% and 49% respectively.

SushiSwap switches spots with Uniswap

SushiSwap’s (SUSHI) governance token has also attracted the attention of investors after losing more than 95% of its value back in September when Chef Nomi, the lead developer dumped approximately $13 million worth of SUSHI on the open market.


SUSHI/USDT. Source: TradingView

As reported by Cointelegraph, this week marked the end of Uniswap’s liquidity pool rewards and rival exchanges like SushiSwap, 1inch, and Bancor have upped the APY rewards offered on their listed assets to attract former Uniswap liquidity providers.


Total value locked (USD) in SushiSwap. Source: DeFi Pulse

In fact, this week Uniswap saw a $1.3 billion dollar (57.5%) drop in in its total value locked as users sought more fertile pastures at other DeFi platforms. As this occurred SushiSwap saw a more than 300% increase and in the past week the token has rallied by 127% to trade at $1.63.

Across the board, the majority of DeFi tokens are currently in the black and data from Digital Assets Data and DeFi Pulse shows an increase in daily active users, TVL across platforms and daily transaction volumes.


Total value locked in DeFi platforms. Source: Digital Assets Data

Similar price action can also be seen across many altcoins, suggesting that while Bitcoin consolidates and attempts to flip $18,000 to support, traders have again embraced DeFi and altcoins.

com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Title: DeFi tokens make triple-digit gains as Bitcoin price searches for support
Sourced From: cointelegraph.com/news/defi-tokens-make-triple-digit-gains-as-bitcoin-price-searches-for-support
Published Date: Thu, 19 Nov 2020 22:06:41 +0000

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Ether hits $500 for the first time since June 2018, exceeding Bitcoin YTD

Ether (ETH) returned to $500 for the first time in more than two years on Nov. 20 as altcoins slowly staged a comeback from poor performance.


Cryptocurrency market overview from Coin360.

Ether price sees $500 after more than two years

Data from Cointelegraph Markets, Coin360 and TradingView showed ETH/USD briefly hitting the psychologically significant barrier in Friday trading before a rejection halted progress.

Despite being capped at roughly 6% daily gains at press time, Ether’s achievement delighted traders, who noted that overall in 2020, the largest altcoin has outperformed even Bitcoin (BTC).

Year-to-date returns stand at 284% for Ether and 155% for Bitcoin.

Versus the pit of its price lows in mid March, just after the coronavirus-induced cross-asset crash, Bitcoin was still the strongest player. At the time, ETH/USD traded at just $117, making Friday’s levels an increase of 327%, while BTC/USD gained 411% from $3,600 to $18,420.


Bitcoin vs. Ether price year-to-date chart. Source: Digital Assets Data

Alongside the $500 visit — Ether’s first since June 2018 — other major altcoins also showed signs of life, notably Litecoin (LTC), which with 12% gains outperformed Bitcoin on the day, and is the only major altcoin to outperform BTC in the past month — by 7%.

Earlier, Cointelegraph Markets analyst Michaël van de Poppe argued that a new “altseason” would need to wait, but that a realistic top for Ether’s next bull run could be as high as $20,000.

In an interview with Van de Poppe for Cointelegraph, meanwhile, Nugget’s News CEO Alex Saunders forecast ETH/USD beating its current all-time highs of $1,400 by the end of 2021.

Bitcoin rechallenges $18,420 peak

Bitcoin meanwhile firmly held the majority of attention on Friday, reclaiming $18,000 and continuing to hit resistance at its previous top of $18,420 from earlier in the week.

Anticipation of further gains remains strong, with 2017 highs of $20,000 forming the only major resistance level higher up the chart.

A reversal down, possibly to levels as low as $11,600, has yet to occur, with $17,200 now serving as a firm floor for bulls.

Title: Ether hits $500 for the first time since June 2018, outperforming Bitcoin YTD
Sourced From: cointelegraph.com/news/ethereum-hits-500-for-the-first-time-since-june-2018-outperforming-bitcoin-ytd
Published Date: Fri, 20 Nov 2020 09:29:56 +0000

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Bitcoin price decrease in 3, 2 … 1? Concern

Bitcoin (BTC) is all but guaranteed a price drop if one sentiment metric is right about the state of the market. 

On Nov. 19, with BTC/USD lingering at $17,500, the Crypto Fear & Greed Index hit 94, nearly matching its all-time high of 95 points out of 100 on June 26, 2019.


Fear & Greed Index. Source: Cointelegraph Markets, Digital Assets Data

Fear & Greed hits “greediest” in 17 months

Compiled used multiple estimates of investor sentiment, the Crypto Fear & Greed Index delivers a normalized score out of 100 to gauge how overbought or oversold cryptocurrency markets really are. The closer the number is to 100, the greater the chance that the market is due for a pullback.

Heavily tied to price action, the index has succeeded in calling price tops with considerable accuracy since its initiation in early 2018.

“The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear of missing out),” the developers explain on the metric’s official website.

“Also, people often sell their coins in irrational reaction of seeing red numbers. With our Fear and Greed Index, we try to save you from your own emotional overreations.”

In late June 2019, the index hit its highest level ever — 95 out of 100 — and at press time on Thursday, the record was just a single point higher than current readings.


Crypto Fear & Greed Index historical chart. Source: Alternative.me

Cointelegraph Markets analyst filbfilb meanwhile highlighted that 2020’s market structure is “very similar” to 2019.

Can strong hands avert a dip?

As Cointelegraph reported, a host of charts tracking Bitcoin market activity have hit all-time highs this week, with their impact decidedly more bullish.

Analysts have broadly stopped short of calling the current bull run too hasty, given its “organic” nature, in the words of statistician Willy Woo, compared with its clip to all-time highs in 2017.

In principle, Woo and others argue, strong hands are buying up the supply this year, while amateurs and speculators remain on the sidelines.

That perspective is corroborated by data showing large numbers of coins leaving exchanges for cold storage and other long-term wallets, as well as whales’ buying activity.

Title: Bitcoin price drop in 3, 2…1? Fear & Greed Index nears dangerous record high
Sourced From: cointelegraph.com/news/bitcoin-price-drop-in-3-2-1-fear-and-greed-index-nears-dangerous-record-high
Published Date: Thu, 19 Nov 2020 14:30:00 +0000

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Bitcoin analyst sees ‘excellent backdrop’ for $100K this bull cycle, $1M by 2035

Bitcoin (BTC) can hit $100,000 in five years and $1 million by 2035, Nugget’s News CEO Alex Saunders has told Cointelegraph.

Speaking in an interview with Cointelegraph Markets analyst Michaël van de Poppe on Nov. 18, Saunders described current conditions as a “perfect backdrop” for new highs.

Saunders: $1M Bitcoin price by 2035

“It’s either going to keep going like right now in the next few weeks and get to $20,000 very quickly, or it’s going to have its bit of a range now and then hopefully positive into next year,” he said.

Saunders was speaking as BTC/USD came off recent highs of $18,400 to move in a wide corridor, which has become focused on $17,700. Gains have been swift, with weekly performance alone delivering up to 15% returns.

Looking ahead, Saunders believed that six or seven figures for Bitcoin lay some way off, but that a combination of money and adoption meant that there was now “no way out.”

“I honestly think that Bitcoin will hit $100,000 in the next five years, and then it’s going to become about, ‘Well do they actually try and shut it down, or how do they regulate it and trade it?’” he told Van de Poppe.

“And if it’s allowed to just continue on its mission and absorb all the money from around the world and become a global reserve currency… I think we can get to $1 million per coin in the next, whatever that is, 15 years.”

The estimates appear somewhat conservative by comparison to some extant price forecasts, among them, the popular stock-to-flow based series, which predicts at least $100,000 by next year.

Saunders’ concerns about legality in the event of major price rises echo those of major investor Ray Dalio, whose comments on Bitcoin earned him significant publicity this week.

Ether’s turn for transformative gains?

In terms of the largest altcoin Ether (ETH), meanwhile, the prognosis is even better. Saunders considers there to be a strong possibility that new all-time highs for ETH/USD are a year away — or less.


Bitcoin and Ether YTD performance. Source: Cointelegraph Markets/Digital Assets Data

Given current performance, that would require nearly 200% of upside from press-time levels of $470.

Ether, like most altcoins, has failed to copy Bitcoin’s recent advances, despite the rollout of the long-awaited Ethereum 2.0 and associated roadmap, which will transform the network.

Van de Poppe nonetheless agrees that the future is likely bright for Ether, with the next bull run halting only at an order of magnitude above the peak of the previous one.

“Next cycle ATH for ETH probably between $10,000–20,000,” he told Twitter followers on Wednesday.

Title: Bitcoin analyst sees ‘perfect backdrop’ for $100K this bull cycle, $1M by 2035
Sourced From: cointelegraph.com/news/bitcoin-analyst-sees-perfect-backdrop-for-100k-this-bull-cycle-1m-by-2035
Published Date: Thu, 19 Nov 2020 09:00:00 +0000

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HODL your equines, Bitcoin choices data claims $18.5 K is not a neighborhood top

Earlier today, Bitcoin (BTC) price peaked at $18,476 after an impressive 35% bull run that appears to have started in early September. 

This powerful movement was followed by a correction to $17,000, a natural pullback. This adjustment led some investors to question whether the current formation resembles the $13,850 top formed in July 2019.


BTC/USD, July 2019. Source: TradingView

Back then, a 30% drop followed a similar-sized rally, and afterwards it took Bitcoin 14 months to regain the $13,850 level. Coincidently, an intense flash crash happened right after that local high, but the price eventually recovered and stabilized near $12,800.

If something similar happened this time around, investors would expect a $13,000 low for the current cycle. Apart from a flash crash following a strong rally, what other indicators mimic the July 2019 price action?

The first step is to analyze the futures basis indicator, which can be interpreted as investor optimism. Basis is also frequently referred to as the futures premium, and it measures the premium of longer-term futures contracts to the current spot (traditional markets) levels.

Fixed-month futures contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlement longer. On healthy markets, futures should trade at a 5% or more annualized premium, otherwise known as contango.


Bitcoin 3-month futures annualized basis, July 2019. Source: Skew

Some excessive optimism might have taken place as the basis indicator touched 20% on June 23. Nevertheless, it sustained very healthy levels through the entire price correction back in 2019.

The above chart can be interpreted as an absolute unwillingness to reduce long positions. This movement happened despite a $2,000 flash crash followed by a 30% correction from the top.

Oddly enough, not even the 30% crash that followed the $13,850 top reduced the futures contract premium. Reduced bullishness usually has a massive impact on the basis indicator.

Fast-forward to the current scenario, and there isn’t a single instance of excessive optimism according to the same metric.


Bitcoin 3-month futures annualized basis, November 2020. Source: Skew

The above chart shows the basis indicator quickly falling below 10% right after the $18,500 top formation. To further differentiate the current price action from July 2019, two weeks ahead of the price peak the futures premium stood at 0%, a clear indication that investors were feeling bearish.

This time around, the lowest level over the past couple of weeks has been 7%. This means investors have kept positive expectations over the past couple of months, whereas in July 2019, the market faced an intense, quick, optimistic rush.

Options traders weren’t so bullish ahead of the pump

To better assess the current market sentiment, investors should also evaluate options market spreads. The 25% delta skew indicator will shift to negative when call (neutral/bullish) options are more costly than equivalent put options. The metric usually oscillates between -20% to +20%, and it reflects the current market sentiment.


Bitcoin 3-month options 25% delta skew, June 2019. Source: Skew

Oddly enough, Bitcoin underwent an 80% bull run in the three weeks preceding the $13,850 top, but the options market seemed ill-prepared for this. At the time, protection for the upside using call options were trading at the same premium as the bearish puts.

Therefore, we can conclude that option traders were pricing in the same probability of a strong market swing in either direction. This situation has not been the case recently, as the 25% delta skew indicator shows.


Bitcoin 3-month options 25% delta skew, November 2020. Source: Skew

For the past 30 days, this option market sentiment gauge has been signaling bullishness. Traders are unwilling to sell protection for the upside, thereby causing the skew indicator to reach an unprecedented -30%.

As professional traders are demanding a sizable premium for bullish call options, one can only conclude that a sudden price dump is far away from their expectations.

Investors should not make decisions solely based on the interpretation of a single indicator that shows option traders are overly bullish right now. These traders could have been taken by surprise and therefore are not eager to open short positions.

There are substantial differences between July 2019 top and the current market according to futures and options markets. This indicates that there are no signs that a 30% drop will occur over the next few days.

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.

Title: HODL your horses, Bitcoin options data says $18.5K is not a local top
Sourced From: cointelegraph.com/news/hodl-your-horses-bitcoin-options-data-says-18-5k-is-not-a-local-top
Published Date: Wed, 18 Nov 2020 22:11:53 +0000

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Watch these two degrees if Bitcoin rate sees a significant correction before $20K.

Bitcoin (BTC) is on the run, printing a new high with each day. After officially achieving a new all-time high by market cap, will Bitcoin finally break through that elusive $20K barrier once more? Or will we first see a major correction?

When correction?


BTC/USD 1 week chart. Source: TradingView

It’s hard to not get excited when looking at the weekly Bitcoin chart. In the past 30 days, Bitcoin has undergone a true parabolic run. But it is yet to reclaim its previous all-time high, which is just 10% away.

However, as the saying goes, what goes up, must come down, and right now the question on everyone’s mind is “when correction?”

The doomsday scenario of the Fibonacci retracement levels paints a bleak picture of a 50% correction to the .618 of around $9,000. But in a post-halving bull run, is this something hodlers need to prepare themselves for? Or will previous resistance levels serve as the support on Bitcoin’s stairway to the moon?


BTC/USD 1 day chart. Source: TradingView

The daily Bitcoin chart hints at levels that people might be able to stomach a little better with the previous $17K resistance being the first level of support to hold, before potentially dropping to $14,000 and $12,500.

While this would be represent close to a 25% drop in the price of Bitcoin, it would represent a “healthy” pullback, allowing the king of cryptocurrencies to entice more retail buyers to step in and buy the dip, and potentially push the price above the key $20,000 level.

You might be screaming at the screen in disbelief right now, wondering how on earth this would be healthy. However, the fact remains that we must have a correction at some point, and the higher the price continues to climb, the steeper the correction will be.

In other words, it’s important for Bitcoin to find a new local bottom if BTC is to climb to new all-time highs.

Bitcoin’s strong trajectory


BTC/USD 1-HOUR chart. Source: TradingView

Zooming into BTC/USD on the hourly chart provides a different perspective, one that shows a structure that has been valid since the beginning of November. This shows that Bitcoin is currently overextended, and has already tapped the mid-channel support after hitting the top of the channel.

Should the structure remain intact, this view paints a downside of just 9% to the lower channel support of around $16,285. But for now, it seems the previous resistance of around $17,000 is holding quite well.

Should Bitcoin punch through the upper resistance of the channel around $19,000, then it could be that we already had our correction, which will catch those trying to short the local top off guard.

Heatmap data suggests the channel will hold


BTC/USD 1-hour chart. Source: Tensorcharts

Heatmap data on Tensorcharts shows that there are sell walls at $18,500 and $19,000, indicating that whales are paying attention to the current ascending channel.

Interestingly there are multiple buy walls between $17,800 and $17,000 further signaling the upper part of the channel is the range that Bitcoin could expect to stay in over the coming days.

However, once $19K pops, there’s very little in the way of resistance before Bitcoin could go on to print new highs, and if you want to know what price level that is, I suggest purchasing a crystal ball.

The bearish scenario for Bitcoin

Should the mid-channel support of $17,000 fail, the last level to hold sits around $16,285 for the current structure to become invalidated. From here, I would expect the next logical floor to be found around the $14,000 region.

The bullish scenario for Bitcoin

Closing above $19,000 opens up a whole new chapter in the history of the price of Bitcoin. Attempting to forecast where the price will go at this stage would be nothing more than a guess.


Rainbow chart. Source: Blockchaincenter

However, if you follow the Blockcenter rainbow chart, Bitcoin looks set to move from the “Accumulate” to “Still Cheap” color level, which puts Bitcoin at over $22,600 in the coming week.

For now, it’s all about price discovery, and as many of us have waited thre years for this moment, I suggest you sit back and enjoy the ride.

The views and opinions expressed here are solely those of @officiallykeithand 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.

Title: Watch these two levels if Bitcoin price sees a major correction before $20K
Sourced From: cointelegraph.com/news/watch-these-two-levels-if-bitcoin-price-sees-a-major-correction-before-20k
Published Date: Wed, 18 Nov 2020 11:47:21 +0000

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This expert called Bitcoin’s brand-new price high in 2020 3 months earlier

Bitcoin (BTC) hitting new all-time highs by Christmas is beginning to look conservative, but one analyst called current levels back in August.

As noted by consumer investment service Swan Bitcoin on Nov. 18, the co-founder of The Investor’s Podcast Network, Preston Pysh, predicted 90% end-of-year returns for BTC/USD when the pair traded at $11,400.

Pysh: 2020 gains could be “insane”

“You should be making a new all-time high by Christmas 2020. That means we’ve got 80–90% upside from here, which is insane, right because there’s not that many more months between now and Christmas,” Pysh said during an episode of the company’s Swan Signal podcast.

“So to think that that much of a jump could occur between now and then is going to be a dramatic, dramatic narrative that I think very few are ready for.”

He added that gold would fail to match “anything like” Bitcoin’s growth, something that has since come true as the precious metal flagged following the United States persidential elections.

BTC/USD hit highs of $18,400 overnight on Tuesday, capping an extraordinary 24 hours that saw gains hit 10%. The performance accompanied new all-time highs for Bitcoin’s market cap.

Pysh himself was already in the spotlight thanks to a Twitter discussion in which he highlighted common fallacies about Bitcoin and its security. This week, he recalled another statement from August, in which he endorsed the projections of quantitativ analyst PlanB’s stock-to-flow price forecasting model.

As PlanB himself continues to note, Bitcoin is behaving exactly in line with expectations following the start of its third halving cycle in May this year.


Preston Pysh’s Bitcoin price chart showing stock-to-flow growth potential. Source: Twitter

“Remember posting this tweet in August and all the traditional financiers thought I was nuts. Guess what. It’s just math,” Pysh commented on Wednesday.

Dalio gets education offers

On the subject of traditional financiers, a renewed sense of satisfaction came over much of social media on Tuesday when Ray Dalio, the well-known investor who had just poured scorn on Bitcoin, appeared to admit that he did not understand it.

In a now infamous update, Dalio conceded that he was open to being taught the facts about the cryptocurrency.

“I might be missing something about Bitcoin so I’d love to be corrected,” he wrote.

Among those offering to do so were Pysh himself, along with Avanti Bank CEO Caitlin Long.

Title: This analyst called Bitcoin’s new price high in 2020 three months ago
Sourced From: cointelegraph.com/news/this-analyst-called-bitcoin-s-new-price-high-in-2020-three-months-ago
Published Date: Wed, 18 Nov 2020 09:00:00 +0000

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Why Bitcoin cost just blink collapsed 6% after turning down at $18.5 K.

The price of Bitcoin (BTC) dropped sharply after approaching $18,500 on Binance and Coinbase. The plunge took place as large sell orders were spotted on both spot and futures exchanges.


BTC/USD 15 minute chart. Source: TradingView.com

As Cointelegraph previously reported, traders anticipated a pullback as the price of BTC neared the $18,000 to $19,000 resistance zone. Upon its first retest of the area in nearly three years, the market saw a strong reaction.

Bitcoin confirms $18.5k as a key near-term resistance area

There are two main reasons why Bitcoin saw a swift drop near $18,500, and this caused other cryptocurrencies like Ether (ETH) to correct even harder.

First, the $18,500 level remains the biggest resistance level before a new all-time high above $20,000. Hence, it is a key area of interest for sellers to defend, as breaching $18,500 would raise the chances of a broader rally.

Second, an overwhelming majority of Bitcoin addresses are profitable as BTC tests an important resistance area. According to IntoTheBlock, 99% of BTC addresses are now in a state of profit. This raises the probability of a profit-taking-induced pullback.

There is a high probability that dips would get aggressively bought, based on BTC’s recovery in the past two hours. Following the initial drop to $17,214 on Binance, Bitcoin immediately recovered above $17,600.

The hourly chart of Bitcoin shows that the 20-day moving average (MA) hovers at $17,586. As such, if BTC remains comfortably above that level, the likelihood of a prolonged recovery increases.

Dan Tapiero, the co-founder of 10T Holdings, expressed confidence in Bitcoin’s medium-term outlook. He said that the “big boys” or the smart money would likely buy the dips. Referring to the weekly chart of Bitcoin, he wrote:

“Not often in life do you get to look at a chart like this one. #Bitcoin to slice through highs imminently. 3rd wave up to dwarf the 2017 move and should persist for several years. Real fundamentals driving price unlike ’17 speccy/ico retail flow. Big boys will buy dips now.”

The weekly price chart of Bitcoin. Source: Bloomberg, Dan Tapiero

John Wick, a popular Bitcoin trader, echoed this sentiment. Wick said that Bitcoin is seeing some profit-taking, but it remains uncertain how long bears would be able to sustain the pressure. He said:

“Profit taking has started on $BTC right now. Let’s see how far the bears can push this dip down before it’s bought back up.”

What happens next?

A pseudonymous trader known as “Bitcoin Jack” said the dominant cryptocurrency is reaching the “finale” of its short-term cycle. There is some upside left for Bitcoin following the recent pullback. But, he notes that more longs or buyers could be trapped, which could make another drop likely.

The trader explained: 

“We are right in the finale I think. Some upside left potentially to squeeze early shorters and bait more longs to trap. Then clap, bang goes the trap. We are eating shoarma for dinner.”

Considering that the hourly MAs of Bitcoin held strongly after the dip, the chances of a recovery are higher than a larger drop.

Title: Why Bitcoin price just flash crashed 6% after rejecting at $18.5K
Sourced From: cointelegraph.com/news/why-bitcoin-price-just-flash-crashed-6-after-rejecting-at-18-5k
Published Date: Wed, 18 Nov 2020 07:19:02 +0000

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3 reasons Bitcoin rate struck $17K, marking a new allegorical uptrend

The price of Bitcoin (BTC) surpassed $17,000 for the first time since December 2017, continuing its current uptrend. The rally comes after BTC broke out of the previous parabola, which initially caused concerns.

Three factors likely contributed to the ongoing rally: a new parabolic trend, resilience above $16,000, and Bitcoin absorbing whales’ selling pressure.

New parabolic trend

On Nov. 16, Cointelegraph reported that analysts found the Bitcoin price dipped below a parabola dating back to September.

Though the trend seemed concerning, new parabolic trends could reemerge in a bull cycle. As such, when BTC dropped below the parabola, some analysts said that BTC could form a new parabolic uptrend.

Typically, when Bitcoin falls out of a parabola and enters a short-term bear cycle, the price dips rapidly and can correct by as much as 80%. In the case of BTC in the past few days, it remained stably above $16,000.

The stability of Bitcoin decreased the probability of a sharp near-term drop, eventually leading BTC to rally.

Resilience above $16,000 was key

Bitcoin maintaining stability above $16,000 following the initial drop to $15,800 on Nov. 16 was key for the latest rally.

There was a strong narrative for Bitcoin to see a deep short-term correction. Gold, for example, dropped, as Moderna’s vaccine trial results were positive. BTC saw a large resistance level at $17,000 due to on-chain orders, making it a difficult area to break past.

Yet, the momentum of Bitcoin was simply too strong to avoid a massive rally. When BTC was showing stability following the initial breakout of the parabola, traders said the technical pattern is optimistic.

Trends that typically arise during bull cycles are beginning to show again as well. According to on-chain analytics firm Intotheblock, 99% of the addresses holding Bitcoin are profitable. The firm said:

“Roughly 99% of the addresses currently holding BTC are experiencing profits. There are only 164.11 ‘thousand addresses that bought 44.91 thousand BTC that are still out of the money.’ We could be experiencing soon a 100% profitability for every Bitcoin owner.”

Some might argue that this metric suggests many investors could take profit and thus create a pullback. But, as Bloomberg reports, this rally has been mostly silent in terms of mainstream involvement, which makes a sudden take-profit rally less probable.

Bitcoin withheld whale selling pressure

Throughout November, Cointelegraph reported that whales and miners were selling large amounts of Bitcoin. This meant that there was significant selling pressure being placed on Bitcoin in the past month.

Yet, Bitcoin’s price still reached $17,000 despite the immense selling pressure placed upon it by whales.

On Nov. 15, Cointelegraph also reported that a whale either shorted or sold $100 million worth of Bitcoin on Bybit.

At the time, the Bitcoin price was trading just under $16,000, at around $15,900. The recent price spike above $17,000 indicates that many whale sell or short orders likely got squeezed in the past several days.

The combination of Bitcoin’s resilience, the making of a potentially new parabolic trend, and BTC withholding whale pressure makes the medium-term prospect of BTC optimistic.

Title: 3 reasons Bitcoin price hit $17K, marking a new parabolic uptrend
Sourced From: cointelegraph.com/news/3-reasons-bitcoin-price-hit-17k-marking-a-new-parabolic-uptrend
Published Date: Tue, 17 Nov 2020 13:49:24 +0000

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Bitcoin analyst provides 4 reasons BTC price will certainly strike $22,000 next

Philip Swift, a Bitcoin (BTC) analyst and the creator of Lookintobitcoin.com, laid out four reasons why BTC is headed to $22,000. Both fundamental and technical factors indicate the top cryptocurrency’s momentum is strengthening.

The one-year HODL percentage, the decline of Bitcoin exchange reserves, neutral funding rates, and institutional accumulation point toward a prolonged BTC rally. Swift wrote:

“1yr HODL % still really high? Yep. Bitcoin being rushed off exchanges? Yep. Funding still neutral? Yep. Institutions still buying? Yep. Cool, See you at $22K in a few weeks when price reaches the 350dma x 2 of the Golden Ratio Multiplier.”

Since the start of the fourth quarter on Oct. 1, the price of Bitcoin rose from $10,773 to $16,730 on Binance. 


BTC/USD daily price chart since Oct. 1. Source: TradingView.com

HODL percentage shows investor confidence

The Bitcoin space refers to long-time BTC holders as “HODLers.” The One-Year HODL Wave shows the growth in the number of investors holding BTC for over a year.

Since the March crash, the One-Year HODL Wave rose from 59% to over 62%. It is now at an all-time high, signifying a clear accumulation trend.


The One-Year Bitcoin HODL Wave. Source: lookintobitcoin.com

When the number of HODLers increases, it demonstrates an appetite to purchase and hold Bitcoin for a long time. The ongoing trend might show that investors expect a broader Bitcoin rally in the longer term.

Funding rates are neutral

During bull cycles, the funding rates of Bitcoin can significantly spike as long holders or buyers overwhelm short-sellers.

The Bitcoin futures market uses the funding rate mechanism to ensure balance in the market. If there are more longs than shorts, the funding rate becomes positive. If so, buyers have to compensate short-sellers and vice versa.

The average funding rate of Bitcoin perpetual futures contracts is at around 0.01%. Throughout the past several months, the funding rate has remained at around 0.01% or sometimes below it.

This shows that there is a decent balance between buyers and sellers, and the market is not overheated as of yet.

Bitcoin reserves are dropping

As Cointelegraph reported yesterday, around 145,000 BTC has moved out of exchanges throughout the past month.

The $2.3 billion monthly Bitcoin exchange outflow suggests the intent of investors to hold onto their BTC holdings throughout the long term.

Investors have to deposit BTC into exchanges in order to sell their holdings. Hence, when outflows increase, it typically indicates that investors plan to hold BTC for prolonged periods.

Institutional accumulation is growing

In the United States, Grayscale remains the preferable point of entry for institutional investors into Bitcoin. The Grayscale Bitcoin Trust is the closest investment vehicle to an exchange-traded fund, as it publicly trades in the U.S.

According to Grayscale, the firm now holds more than 500,000 BTC, which, at a price point of $16,700, is worth over $8.35 billion.

Institutions have continued to accumulate Bitcoin as it posts a strong recovery since early 2020. The resilience of BTC, particularly as it is consistently outperforming gold, has made the store of value proposition more compelling to institutions throughout the year.

Title: Bitcoin analyst gives 4 reasons why BTC price will hit $22,000 next
Sourced From: cointelegraph.com/news/bitcoin-analyst-gives-4-reasons-why-btc-price-will-hit-22-000-next
Published Date: Tue, 17 Nov 2020 11:00:00 +0000