Bitcoin BTC Price Watch – Watch This Triangle for Directional Clues

Bitcoin (BTC) Price Watch - Watch This Triangle for Directional Clues

Bitcoin (BTC) Price Watch – Watch This Triangle for Directional Clues

Bitcoin Price Key Highlights

 

  • Bitcoin price is still stuck in consolidation, forming higher lows and lower highs inside a symmetrical triangle on the short-term chart.

  • Price is approaching the peak of this formation so a breakout might be due soon, providing longer-term directional clues.

  • Technical indicators are giving mixed signals, although there seems to be some bearish pressure in play.

Bitcoin price is consolidating inside a symmetrical triangle on the short-term charts while traders decide which direction to take.

 

Technical Indicators Signals

The 100 SMA crossed below the longer-term 200 SMA on this time frame, indicating that the path of least resistance is to the downside. In other words, support is more likely to break than to hold, possibly leading to a slide that’s at least the same height as the triangle. This pattern spans $6,640 to around $$7,000.

Stochastic is on the move down to show that sellers are in control and could push for a break below the triangle bottom. RSI also seems to be moving south to signal that bearish pressure could stay in play as the oscillator has plenty of room to move down before hitting oversold levels.

The recent surge in bitcoin price is being pinned on the Tether selloff, although the launch of Fidelity’s institutional platform might be a bigger factor sustaining longer-term gains. After all, this could open bitcoin and ethereum to stronger volumes and increased trading activity from bigger market players.

A candle closing past the $6,750 triangle resistance could be enough to signal an upside break and a continuation of the rally from the larger triangle breakouts. A break below the $6,675 level, on the other hand, could lead to a test of the nearby support zones, although it’s worth noting that bulls are strongly defending the lows by buying on dips.

 

SARAH JENN | OCTOBER 17, 2018 | 3:54 AM

Alan Zibluk Markethive Founding Member

Is Another Short-Squeeze in Bitcoin Looming?

 

Is Another Short-Squeeze in Bitcoin Looming?

Following the strong run-up in bitcoin prices yesterday, traders may now be eyeing another opportunity for further growth as the short trade is getting unusually crowded for the number one cryptocurrency.

In what appears to be short-term traders positioning themselves for a further sell-off in bitcoin on the Bitfinex exchange, the ratio of short-to-long orders on the exchange reached 1.54 during the Asian trading session Tuesday morning, a level not seen since November last year.

Short-selling essentially involves speculating on lower prices in a market by borrowing an asset that a trader doesn’t currently own in order to sell it in the market. The asset can then be bought back at a lower price later, allowing the short-seller to profit from the difference between the selling price and the buying price.

While a high number of sellers in a market is generally considered a bad sign, it also opens up opportunities when it reaches extreme levels. This is what is known as a short-squeeze, and it is something we have seen repeatedly this year as the short-to-long ratio has hit the high levels we are at now.

If the market starts to move upwards in the near future, many of the short-sellers will exit their short positions by buying back bitcoins in the open market. As the price moves further up, even more short-sellers will get margin calls or hit their pre-set stop-loss levels, forcing them to cover their shorts, and creating a self-reinforcing mechanism that can cause sharp price increases. Whether this will happen again this time, however, still remains unclear.
 

Significant arbitrage opportunities

Another possible explanation is that there is a significant amount of arbitrage going on right now centered on the Bitfinex exchange, following the surge in the bitcoin price yesterday that brought the price on Bitfinex to nearly USD 7,800 at its peak. That was close to USD 1,000 higher than on other exchanges like Coinbase, where bitcoin reached a high of about USD 6,800 yesterday.

An obvious way for traders to take advantage of a situation like that is to short-sell bitcoin on Bitfinex, while buying bitcoin on Coinbase or another exchange. That way, a trader would be profiting as the price gap between the exchanges closes.

The bitcoin price was nearly unchanged across exchanges on Tuesday morning, and still remains significantly higher on Bitfinex than on other exchanges, which many in the community attributes to speculation and fear about the status of the popular stable coin Tether.

Price differences at exchanges:

By Fredrik Vold

October 16, 2018

Alan Zibluk Markethive Founding Member

Bitcoin price latest update – Cryptocurrency as stable as dollar

Bitcoin price latest update – Cryptocurrency as stable as dollar

The crypto market is notorious for its volatility and large swings in price.

In 2017 alone, Bitcoin’s value rocketed to more than double its value, reaching a high $19,783 in December, before then crashing to less than $6,000 by June this year.

But now, new research published in the journal Chaos: An Interdisciplinary Journal of Nonlinear Science, suggests investment in the digital asset may be more reliable than previously thought.

In a report titled “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multiscaling effects,” researchers explain Bitcoin is following some of the same trends of the market as physical currencies.

After analysing graphs of Bitcoin’s price, the authors said: “Initially, the graphs we got were a bit crooked, which did not augur anything promising.

“But when we took a closer look at the data, suddenly it turned out that this crookedness originated from the first two years of the analysed period, that is, from the time when the market was just starting to shape itself.

“Later on, the rates of return fluctuated according to the inverse cubic law.”

Cubic law refers to a method of judging a market’s maturity.

Analysts plot price changes in one-minute sequences and compare how they match up.

The authors of the new research looked at Bitcoin’s price between 2012 and April 2018 to determine that despite early irregularities, the market has become more mature is recent years.

They added Bitcoin’s maturity was “particularly evident in the last six months of the examined period”.

In another sign likely to please investors, the researchers said Bitcoin acted with the functions of fluctuations in rates of return as “regular, mature markets, such as the stock, dollar, oil or bond markets”.

However, not everyone agrees with the suggestion Bitcoin is a worthy investment.

Treasury Committee Chair Nicky Morgan has labelled the burgeoning world of cryptocurrency investment as a “wild west” industry.

She said: “Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets.

“This unregulated industry leaves investors facing numerous risks.

“Given the high price volatility, the hacking vulnerability of exchanges, and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.”

Alan Zibluk Markethive Founding Member

Bitcoin price analysis – Break of 6000 or breakout to 12000?

Bitcoin price analysis - Break of $6,000 or breakout to $12,000?

Bitcoin price analysis – Break of $6,000 or breakout to $12,000?

  • BTC nearing a point of breaking out on the long term.

  • Falling wedge suggests, it should be upside breakout.

Bitcoin, the largest cryptocurrency by market capitalisation and defacto King of the crypto world, has been trading in a broad range of $6,000-$7,000 for past many weeks and is now reaching a point where it is potentially make or break for the bulls.

BTC/USD is down one cent of a percent at $6,185 in less than one percent range for the day, in a sign of lower weekend volatility. After falling from the upper end of the range, which is also a descending trendline resistance, BTC is now heading towards lower end of it – around $5,900.

This wedge formation, although has failed many times in the past, could be one positive trigger that the bulls were searching for. If bulls manage to bounce from the lower end of this range, then the next move on the upside should result into a breakout with potential targets of beyond $12,000 in the next few months.

BTC/USD daily chart:

 

Manoj B Rawal

FXStreet

 

Alan Zibluk Markethive Founding Member

Bitcoin price analysis – BTCUSD recovery attempts capped by 6200 Bitcoin not as volatile as it may seem research shows

 

Bitcoin price analysis – BTC/USD recovery attempts capped by $6,200; Bitcoin not as volatile as it may seem, research shows

  • BTC/USD movements are contained by $6,100-$6,200 range.
  • Researchers proved that Bitcoin volatility matches traditional markets.

After a short-lived dip to $6,060 low on Thursday, BTC/USD found a floor at $6,100. The recovery attempts have been limited by $6,216 handle so far, which means that a stronger trigger is needed to push the coin out of this range. BTC/USD is changing hands at $6,190, mostly unchanged in the recent 24 hours.
 

Bitcoin's technical picture

A sustainable movement above $6,200-$6,216 congestion zone will open the way towards $6,300 followed by SMA50 (1-hour) at $6,340, where fresh selling interest is likely to appear. However, if this area is cleared, the upside movement will start gaining traction with the next aim at the broken downside trendline at $6,480 strengthened by SMA200 (1-hour) and psychological $6,500.

On the downside, the critical support is located at $6,100, strengthened by Thursday's low at $6,060, Once below, the sell-off will continue to $6,000
 

Pretty stable
 

A recent study performed by Stanislaw Drozdz from the Institute of Nuclear Physics of the Polish Academy of Sciences revealed that Bitcoin is much more stable than it might seem. The researcher found out that the coin market is very similar to traditional financial markets in terms of stability.

“When new emerging financial markets started to appear in Central and Eastern Europe after the collapse of socialism, the question of their stability naturally arose. A number of statistical criteria were identified at that time, making it easier to assess the maturity of the market. We were curious about the results we would get if we used them to look at the Bitcoin market, currently valued at hundreds of billions of dollars,” Stanislaw Drozdz wrote.

The research team analyzed Bitcoin prices in a period from 2012 to April 2018 and the rates of return over the same timeframe. They found out that the volatility of rates of return is comparable to mature markets.


 

Tanya Abrosimova

FXStreet

 

Bitcoin price analysis - BTC/USD recovery attempts capped by $6,200; Bitcoin not as volatile as it may seem, research shows

Alan Zibluk Markethive Founding Member

SHOCK DROP as bitcoin price suddenly falls and wipes out BILLIONS of dollars in MINUTES

 

SHOCK DROP as bitcoin price suddenly falls and wipes out BILLIONS of dollars in MINUTES

BILLIONS of dollars were wiped out within minutes from the market capitalisation of bitcoin (BTC), as the cryptocurrency experienced a sudden and unexpected plunge in value today.

BTC has experienced a sudden drop in its value after a stable few months of trading, as five percent was shaved off its price almost instantaneously.

Other leading cryptocurrencies, ripple and ethereum, were dragged down with it as the price plummet caused a ricochet effect on the whole cryptocurrency market.

The world’s leading cryptocurrency had entered a period of remarkable stability as the asset hit a 17-month volatility low in September.

But the steady spell appears to be over, with the digital asset taking a huge price hit causing $13billion to be lost in minutes, according to CoinDesk data.

The decentralised digital commodity’s price fell sharply to $6,125 (£4,629) but it did recover briefly to $6,200 (£4,686).

At the time of writing, one bitcoin is worth £4,696.

Short and sudden swings in bitcoin’s price are often attributed to trading “bots”, which initiate trades and cause a domino effect on the price.

So-called “whales” (holders of huge amounts of cryptocurrency) can also cause price fluctuations, as they buy and sell amounts so vast they impact the whole market rate.

The news comes after the International Monetary Fund (IMF) warned this week the bitcoin and blockchain boom facilitating the “rapid growth” of cryptocurrency assets could create “new vulnerabilities in the international financial system”.

In a key report published on Wednesday, the Fund said: “Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services.

“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”

Bitcoin’s receding price (down from extreme highs of more than £15,000 last year) is indicative of the cryptocurrency’s unpredictability, making it an uncertain form of investment

 

By SAM STEVENSON

PUBLISHED: 05:34, Thu, Oct 11, 2018 | UPDATED: 05:36, Thu, Oct 11, 2018

SHOCK DROP as bitcoin price suddenly falls and wipes out BILLIONS of dollars in MINUTES

Alan Zibluk Markethive Founding Member

Bitcoin price surge WARNING as RAPID GROWTH’ could cause CHAOS in global system

Bitcoin price surge WARNING as ‘RAPID GROWTH' could cause CHAOS in global system

Bitcoin price surge WARNING as ‘RAPID GROWTH’ could cause CHAOS in global system

THE BITCOIN (BTC) and Blockchain boom facilitating the “rapid growth” of cryptocurrency assets could create “new vulnerabilities in the international financial system,” the International Monetary Fund (IMF) has cautioned.

The recent explosion of interest in crypto assets and the relentless surge in BTC’s value may contribute to a weakened global financial system overall, the IMF has suggested.

The Fund published a key report today, October 10, entitled the World Economic Outlook.

It said: “Cybersecurity breaches and cyber attacks on critical financial infrastructure represent an additional source of risk because they could undermine cross-border payment systems and disrupt the flow of goods and services.

“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”

It is not the first time the IMF has warned about risks posed by BTC and cryptocurrencies.

The IMF's stability report last week said: “Despite its potential benefits, our knowledge of its potential risks and how they might play out is still developing.

“Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors.

“These developments should act as a reminder that the financial system is permanently evolving, and regulators and supervisors must remain vigilant to this evolution and ready to act if needed.”

Traditional financial institutions, from the US’s Security and Exchange Commission to the UK's Treasury Committee, are currently assessing whether bitcoin and other cryptocurrencies – including Ripple Lab’s XRP token, Ethereum, Litecoin, EOS and Stellar – could be integrated into existing systems.

The financial bodies are attempting to gauge how the digital assets could be used as investment tools and means to move money across borders more efficiently.

Regulators around the world are – with varying degrees of success – attempting to get to grips with the Bitcoin and Blockchain phenomenon.

Last month Treasury Committee Chair Nicky Morgan labelled the burgeoning world of cryptocurrency investment as a “wild west” industry.

 

By SAM STEVENSON

PUBLISHED: 06:21, Wed, Oct 10, 2018 | UPDATED: 06:23, Wed, Oct 10, 2018

Alan Zibluk Markethive Founding Member

It’s all or nothing moment for BTCUSD bulls as the coin sits at 6600 experts bet on Bitcoin’s bullish breakthrough

 

It's all or nothing moment for BTC/USD bulls as the coin sits at $6,600; experts bet on Bitcoin's bullish breakthrough

 

  • BTC/USD is stuck in a strong resistance area.

  • Experts surveyed by Finder.com expect Bitcoin's growth towards $10,000 by the end of the year.

Bitcoin is changing hands at $6,600, marginally both on a day-on-day basis and since the beginning of Tuesday. The price of the digital coin No.1 has been trying to escape from a narrow range of the past 10 days, but the momentum is too weak to engineer a strong breakthrough.
 

What’s going on

Bitcoin has gained some ground on Monday; however, investors are still waiting for valid catalysts to take the price out of the range. While speculators are not happy with multi-months low volatility, long-term investors and blockchain enthusiasts believe that it is a good thing for the industry as it signals that the speculative bubble is over and the market is getting more mature.

“As we’ve stated many times, a stable price is great for adoption and great for the development of the network. So, we really are in a positive place for bitcoin right now,” Mati Greenspan, a senior market analyst at eToro, commented.

Naturally, 10-15% price swings hamper many cryptocurrency use cases. People are less likely to pay with Bitcoin or any other digital assets for their everyday purchases if they know that the price can change dramatically in a matter of minutes.

Meanwhile the majority of experts surveyed by Finder.com, Bitcoin will end the consolidation phase with the upside breakthrough. By the end of the year, one Bitcoin will go for $10,319, according to the average forecast of nine experts, which is over 60% higher from the current price.

 

Bitcoin’s technical picture
 

BTC/USD attempted to develop an upside momentum on Monday but retraced to $6,600 handle, which is considered a strong resistance, packed with important technical hurdles, including Fibo retracement 38.2% monthly, Fibo retracement 38.2% daily, DMA50, 1-hour high and a host of SMA levels. Basically, we need a sustainable push above $6,630 for the upside to gain traction. If this happens, the recovery may be extended towards DMA100 at $6,780 and to psychological $7,000.

 

On the downside, BTC/USD is supported by $6,550, enhanced by a confluence of MA levels including SMA50 4-hour and SMA200 1-hour chart. If it is cleared, the downside may be extended towards the vital support at $6,400.

 

Tanya Abrosimova

FXStreet

 

It's all or nothing moment for BTC/USD bulls as the coin sits at $6,600; experts bet on Bitcoin's bullish breakthrough

Alan Zibluk Markethive Founding Member

Bitcoin Reaches Record-Low Volatility

Bitcoin Reaches Record-Low Volatility

Bitcoin Reaches Record-Low Volatility

It’s an open secret that trading in bitcoin has become more difficult in recent months than it once was. Traders rely on volatility to make their money, and with less volatility, there are fewer opportunities to trade. For long-term holders and users of bitcoin, however, it’s a very different story, and low volatility is generally seen as a sign the bitcoin market is maturing.

According to Gil Luria, research director at wealth management firm D.A. Davidson & Co., the recently stable bitcoin prices means that there is less speculation in the bitcoin economy.

“When speculators are involved, they drive unusually high volumes as well as volatility by trading the asset with high frequency. As speculator involvement is diminished, volumes go down and volatility goes down as well,” Luria told Bloomberg.

The same sentiment was also echoed by Mike McGlone, commodity strategist at Bloomberg Intelligence, explaining that bitcoin is now exhibiting signs of a “maturing market, so volatility should continue to decline.”

“When you have a new market, it will be highly volatile until it establishes itself. There are more participants, more derivatives, more ways of trading, hedging and arbitraging,” McGlone said.

Judging from the data, it appears the experts are right that both trading volume and volatility is down. Although most notably for bitcoin, the data confirms that the same is also true for many other cryptocurrencies.

The unusually low volatility in bitcoin is confirmed by a technical indicator known as the Average True Range (ATR) indicator, as seen in the bottom of the chart below. Looking on a day-by-day basis, volatility in the bitcoin market is now down to levels not seen since July 2017, before the huge run-up in prices seen later that year.

Bitcoin’s Next Move

Although volatility may be low at the moment, bitcoin’s price chart looks like it is about to break-out from a massive chart pattern that has been forming since the beginning of this year.

Judging from the pattern seen above, with lower highs but a floor around the USD 6,000 mark, it appears that bitcoin is about to face another battle between bulls and bears that will determine its next move.

As we have seen throughout 2018, the selling pressure has been heavy on bitcoin, but buyers have consistently shown up at USD 6,000 to support the market. Over time, sellers have become exhausted as they have not been able to drive the price further down, and we have seen lower volatility as a result. The next few weeks may give us an indication of which side is stronger in the fourth quarter of 2018.

Meanwhile, a new informal poll indicated that the usually very cautious Wall Street investors are now overwhelmingly calling a bottom in the bitcoin market. Twitter users, however, are still skeptical, with a majority saying bitcoin still has room to fall.

In either case, the next time you read a price prediction from an expert trader, you should probably take it with a large grain of salt.

 

By Fredrik Vold

October 08, 2018

Alan Zibluk Markethive Founding Member

New Cryptocurrency Research Shows 7 Out Of 10 American’s Feel Uncertainty Regarding Bitcoin

New Cryptocurrency Research Shows 7 Out Of 10 American's Feel “Uncertainty” Regarding Bitcoin

New Cryptocurrency Research Shows 7 Out Of 10 American’s Feel “Uncertainty” Regarding Bitcoin

Clovr recently decided to hold a research study, resulting in a publication called “How Do American’s Feel About Cryptocurrency?” In this research, which involved 1,000 Americans, the group aimed to “to understand their feelings about cryptocurrencies and to break down whether excitement (or fear) is the overwhelming emotion toward virtual money.” Ultimately, about 70% of Americans agreed that they felt “uncertainty” regarding cryptocurrency.

The information gathered in this study came from respondents that were abled between 18 and 80, though the average age is 36 years old. Participants engaged in the study by using the Amazon Mechanical Turk platform, which is a data-entry opportunity for individuals to fill out surveys and perform other work that pays out for participation, starting at $0.01.

The majority of Americans, about 9 out of 10 according to the study, have some kind of knowledge about cryptocurrency. Of that 90%, about 75% of Americans “feel they know what cryptocurrency is,” and “over 20% of the remainder believes they ‘sort of’ know what’s going on.” Clovr noted, “Almost 70 percent of respondents felt ‘uncertainty’ summed up their emotions regarding cryptocurrencies.”

When surveyed about why the participant would want to get involved with cryptocurrency, the top reason seemed to be “of riding the bitcoin wave or possibly getting in on the ground floor of an alternative like Litecoin or Ripple could most certainly pay massive returns … if they take off.”

Approximately 40% agreed that they would be more likely to participate in cryptocurrency if someone they knew was involved, which is just another demonstration of the “fear of missing out” (FOMO). About a third of the Americans surveyed already are involved in the cryptocurrency space, but the details showed that men “are twice as likely as women” to be already involved in cryptocurrency.

One of the other details included in this survey had to do with the income that participants made each year, determining if there was any correlation. Over half of the investors in the cryptocurrency industry have an income of between $75,000 and $99,999 annually. However, less than half of the participants that make under $25,000 took the time to do so. Still, Millennials “were almost twice as likely as any other generation to be crypto-investors.

The study concludes by saying,
 

“Americans appear to be divided in opinion over cryptocurrency and its role moving forward. It’s also apparent that while many think they know what it is, when asked whether explaining it to others was feasible, fewer believed they could do so, indicating a superficial understanding.”

 

Alan Zibluk Markethive Founding Member

Be As You Are ….