Bitcoin BTC – Are Bears Back in the Game?

 

Bitcoin (BTC) - Are Bears Back in the Game?

Bitcoin (BTC) – Are Bears Back in the Game?

 

Bitcoin Price Key Highlights

  • Bitcoin price appears to be turning from the resistance at the top of its descending triangle on the 4-hour chart.

  • Price could be making its way back to the bottom of the triangle again from here.

  • Technical indicators are also reflecting the presence of selling pressure that could keep gains in check.

Bitcoin price seems to be having trouble sustaining its earlier climb as the top of the descending triangle is holding as resistance.

Technical Indicators Signals

 

The 100 SMA is below the longer-term 200 SMA on this time frame, confirming that the path of least resistance is to the downside. In other words, resistance is more likely to hold than to break. These moving averages also coincide with the triangle top to add to its strength as a ceiling.

Stochastic is on the move down so bitcoin price could follow suit while selling pressure is present. This oscillator has some room to go before reaching oversold levels, which means that sellers could stay in control for a bit longer. RSI is also heading south and has plenty of room to cover before reaching oversold territory as well.

The spike higher in bitcoin is seen to be a result of the selloff in Tether as doubts are emerging on its stability and the financial health of Bitfinex. However, traders quickly booked profits as most of the move was also spurred by FOMO or fear of missing out.

Still, there’s enough reason to expect a longer-term rally to materialize as institutional funds could flow in by early next year. Fidelity Investments has unveiled its institutional platform for bitcoin and ethereum, making it available to more hedge funds and financial institutions. Goldman Sachs has also reportedly invested in BitGo in order to make cryptocurrencies more accessible to its clients.

SARAH JENN | OCTOBER 19, 2018 | 4:35 AM

Alan Zibluk Markethive Founding Member

Three dojis mean trouble for Bitcoin

 

Three dojis mean trouble for Bitcoin

  • BTC/USD sticks to $6,445 amid market indecision.

  • The imminent breakthrough will be forceful and devastating.

Bitcoin is changing hands at $6,445 at the time of writing. The digital coin No.1 has barely changed since Tuesday, sitting in the tightest range in its recent history. Three doji candlesticks on a daily chart highlight a high level of indecision on the market and promise forceful breakthrough once this coiled spiral starts unwinding.
 

Bitcoin's technical picture

As it is visible on Bitcoin's daily chart, the price has fairly moved since recovering from long-term sloping trendline on Tuesday. While a sustained movement above $6,400 handle looks positive for the bulls, lack of follow through and a prolonged period of consolidation mires short-term perspectives.

Considering the lack of fundamental catalysts it is hard to predict the direction of the breakthrough; however, the bulls' nearest target is $6,600. This resistance limited the recovery since the end of September. Enhanced by DMA50 and 38.2% Fibo retracement monthly, this level can attract new short-term sellers and push the price back inside the current range.

On the downside, bears are focused on $6,400 with a confluence of strong technical levels clustered on approach. They include 61.8% Fibo retracement weekly, 23.6% Fibo retracement monthly, one day low, Pivot Point 1-day Support 1, and a host of SMA levels. Once below, the sell-off will gain traction and take the price to $6,200 and possibly $6.060 (the recent low).

BTC/USD, the daily chart

 

Tanya Abrosimova

FXStreet

Three dojis mean trouble for Bitcoin

Alan Zibluk Markethive Founding Member

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