Bitcoin has finally started to move higher after flatlining around $9,000 for over 10 days. During Wednesday’s trading session, the leading cryptocurrency moved as high as $9,475 — the highest price in weeks.
Analysts say, however, that this price action hides an eerie set of bearish technical occurrences. What’s interesting is out of these technical occurrences, there are some that were last seen when BTC topped at $10,500 in February.
Bitcoin Forms Eerie Similarities to February’s Brutal $10,500 High
A pseudonymous cryptocurrency trader says that Bitcoin’s recent price action is almost structurally identical to the $10,500 high seen in February.
He shared the chart below on July 8th, showing that both periods have the exact same three trends: a semi-rounded top, a markdown after that top, then an ascending triangle that fails to trigger a bullish recovery.
Worse yet, the on-balance volume indicator looks almost identical to how it looked near the $10,500 highs.
Should Bitcoin follow the path it took last time this structure was in place, it will dive 60% in the next week.
Bitcoin analysis (February vs. now) from crypto trader “Nebraskan Gooner” (@Nebraskan Gooner on Twitter). Chart from TradingView.com
This formation is far from the only similarity that analysts have seen between Bitcoin’s 2020 year-to-date high and the recent price action.
Per previous reports from Bitcoinist, an analyst shared the chart below last week. It shows that from the perspective of the Ichimoku Cloud, BTC is structurally almost identical to the February highs.
Bitcoin chart from IchimokuScholar (@IchimokuScholar on Twitter). Chart from TradingView.com
All Eyes on the S&P 500
Although the charts of Bitcoin then and BTC now may be eerily similar, the crypto market’s fate is somewhat dependent on the stock market. As a team of JP Morgan analysts observed in the middle of June in a report on the cryptocurrency market:
“[Since June,] Cryptocurrencies have traded more like risky assets like equities—a significant change relative to the prior couple of years.”
There are many, unfortunately for bulls, warning that the S&P 500 could soon be subject to a retracement. Assuming the correlation between these asset classes holds, that means Bitcoin could also drop.
Prominent stock investor Jeremy Grantham spoke with CNBC in June on his outlook for the stock market.
The long-time investor, who called the Dotcom Bubble and Great Recession, said that:
“My confidence is rising quite rapidly that this is the fourth ‘Real McCoys’ bubble of my investment career… The great bubbles can go on for a long time and inflict a lot of pain. The previous three bubbles Grantham referred to were Japan in 1989, the tech bubble in 2000, and the housing crisis of 2008.”
What could unexpectedly buoy the stock market, though, is a new stimulus bill by the U.S. government. Such a bill would likely put investable money into the hands of millions while reassuring investors that businesses will stay afloat.
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
The Last Time Bitcoin Formed These 3 Patterns, It Dropped 60% in a Week origin »
Wednesday’s US Fed decision on interest rates remains the focal point as financial markets brace for a week of macroeconomic events. Meanwhile, Bitcoin has soared above $27K (for the first time since last month) as analysts expect hike pause during Wednesday’s rate decision.
The price of Bitcoin BTC/USD lost 20% Wednesday morning, bringing its seven-day losing tally to around 36%. The weakness extended beyond Bitcoin as many high-profiled cryptocurrency names were also down sharply.
Bitcoin inched towards $18,500 on Tuesday night. A sell-off occurred, and the cryptocurrency lost its support base of $18,000 in the early Wednesday hours. But ahead of the US session, it managed to secure the $18,000-support all over again.
Over the past few days, Bitcoin has strongly outperformed altcoins, especially Ethereum and XRP. On Wednesday, when BTC was trading 8% down on the week, both ETH and XRP — the second and third-largest cryptocurrencies by market capitalization, respectively — were down nearly 15% since the weekly open, crushed under the pressure of BTC volatility.
Bitcoin futures markets are booming, posting record numbers yesterday across the board. Bakkt also managed to break its previous all-time high in trading volume. Wednesday was a good day for Bitcoin.
Bitcoin stabilized above the $7,000 support level on Thursday, as the number one cryptocurrency continues to hold onto Wednesday trading gains. Altcoins moved into positive territory, with Maker, Waves, Ravencoin and Theta leading the advance.
As the BTC/USD quotation updated the lowest level since May of this year, institutional investors were in a rush to benefit from the cheap Bitcoin price. On Bakkt, the trading volume of Bitcoin futures surged to $47 million on Wednesday.
Bitcoin saw quite the bout of volatility on Wednesday. Early in the morning, the cryptocurrency tanked, falling as low as $6,450 in a strong move lower, before rebounding to the upside. By the end of the day on Wednesday, the price of BTC had rallied as high as $7,300, surging by over 10% from its.
The bitcoin price rallied aggressively on Wednesday, and crypto analysts say BTC defended a 5-year-old "parabolic" support line.
The post Bitcoin Rallies Aggressively After Defending ‘Parabolic’ Price Support appeared first on CCN.com
The Governor Lael Brainard, of the US Federal Reserve on Wednesday stated Facebook’s digital currency project Libra faces a “core set of legal and regulatory challenges.” Social media giant’s stablecoin that is linked to fiat money and other sound assets to mitigate fluctuations in the price of cryptocurrencies like Bitcoin, remains unproven with a vague […]
The market is attempting to stage a recovery during Wednesday’s U. S. session, following another heavy crypto sell-off earlier this morning. Almost the entire top 10 plunged to fresh multi-month trading lows before partially bouncing back.
Little changed in the cryptocurrency market since Wednesday, though a number of top cryptocurrencies briefly tested below under critical technical support level. Bitcoin moved toward the psychological $7,000 level as a bearish triangle breakout continues to weigh on the BTC/USD pair’s short-term technicals.
Bitcoin on Wednesday moved slightly upward as traders remained puzzled about its next big price rally. The bitcoin-to-dollar exchange rate surged by as much as 0. 80 percent to establish an intraday high of $7,263.
The broader cryptocurrency market appears vulnerable to further losses on Wednesday, as Bitcoin and other major cryptocurrencies slipped back into negative territory for the month. Bitcoin fell back to its lowest trading level since Dec.
Wednesday’s volatility liquidated over $76 million bitcoin longs & shorts. Peter Schiff criticized this. Crypto Twitter replied with memes.
The post Peter Schiff Says ‘It’s Game Over for Bitcoin’ After Epic Pump and Dump; Crypto Twitter Laughs appeared first on CCN.com
United States' financial regulators on Wednesday, 4 December, appealed to federal and state officials to monitor risks from digital assets like Bitcoin. The panel consisted of Treasury Secretary SteveThe post United States' FSOC asks officials to monitor risks from digital assets appeared first on AMBCrypto.
The bitcoin price spiked by 10% in as many minutes on Wednesday, dealing short sellers a brutal $60 million liquidation.
The post Bitcoin Surges 10% in 10 Minutes as Shorts Suffer $60 Million Beatdown appeared first on CCN.com
Bakkt, the market’s first physically-settled Bitcoin futures offering, has posted another record day in trade volume on its monthly contract and is now an order of magnitude away from the volumes of its cash-settled competitor at CME Group.
On Wednesday, November 27, the U. S. Federal Reserve pumped $108 billion into the American economy using overnight repo tactics and 15-day repos. The central bank explained the move will stimulate more liquidity into the faltering U.
On Wednesday morning, it seemed as though things were about to go south for the Bitcoin market yet again. For those who missed the memo, notable Korean cryptocurrency exchange Upbit revealed that it had been hacked for $50 million worth of Ethereum (ETH), sparking an immediate 2% sell-off that some described as a “black swan”.
Bitcoin's price recovered on Wednesday following a brief stint at six-week month lows, as technical re-positioning fuled an 11% recovery.
The post Bitcoin Price Rebounds 11% From Low amid ‘Textbook’ Inverse Head & Shoulders Pattern appeared first on CCN.com
Coinspeaker Bitcoin Price Stabilizes Above $7,000 as Only 169 Days Left till BTC HalvingBitcoin fell to a six-month low just above $6,500 on Wednesday, however, now it seems to have gained a little bit and stabilized above $7,000.
Over $20 billion have been wiped off Bitcoin’s market cap in the last few days. The flagship cryptocurrency went from trading around $8,000 on Wednesday to a low of $6,800 today. As the sell-off continues, IntoTheBlock believes that several blockchain analytics factors can explain this drop.
Daring robbers have been caught on tape stealing from a Bitcoin ATM in Canada, taking an alleged $4,000 from the machine. Earlier Wednesday, news medium Castanet published a report showing footage of two bandits who broke into a grocery store in Vernon, Canada to steal money from a Bitcoin ATM.
The cryptocurrency market remains subdued on Wednesday as Bitcoin and a number of top altcoins continue to trade towards their respective monthly price lows. 0x and NEO are currently outperforming the broader cryptocurrency market.
About to make its initial exchange listing, Universal Protocol Token (UPT) will serve as a mega-utility token, offering holders attractive interest rates when lending and borrowing, lower exchange fees, cashback and discounts on trading.
Throughout the course of 2019, Iran’s government and the country’s energy officials have been creating new guidelines for bitcoin miners setting up data facilities in the oil-rich nation.
The activist hacker group Anonymous has made the announcement that is has a $75 million Bitcoin fund for promoting privacy-boosting technology and developing cryptocurrency. An Anonymous press release from Wednesday provided only vague information about this fund.
Global decentralized hacktivist group Anonymous has just announced the formation of a Bitcoin fund. The $75 million in BTC will go towards promoting privacy-enhancing technology and cryptocurrency development.
Facebook Libra lead David Marcus doesn’t believe bitcoin is a currency. Its volatility keeps it from becoming a currency, he explained. Bitcoin is more aking to ‘digital gold’, according to the Facebook executive.
Hong Kong’s Securities and Futures Commission has established a new regulatory framework that allows crypto exchanges to opt-in to be licensed and regulated. Starting Wednesday, centralized trading platforms can apply for a license, providing they meet certain requirements including adequate measures for the safe custody of assets, insurance, hot and cold wallets, and private key […]
The post Hong Kong Now Offers Opt-In Regulation to Crypto Exchanges appeared first on Bitcoin News.
The Friday before last, the Bitcoin futures contract on the Chicago Mercantile Exchange (CME) closed the week at $8,715. It was a strong performance, especially considering that on Wednesday of that week, the leading cryptocurrency had plunged to $7,300 in a flash crash event.
The Ontario Securities Commission (OSC) has ruled to allow crypto fund manager 3iQ to issue a prospectus for its prospective exchange-traded Bitcoin fund, signaling that Canada’s top securities regulator may be about to approve the launch of the nation’s first Bitcoin ETF.
On Wednesday, October 30, Cred and the Universal Protocol Alliance will be hosting a live demonstration of a point-of-sale (PoS) device that enables purchases with cryptocurrency. Cred’s PoS financial operating system allows customers to utilize any crypto wallet for purchases at the PoS and will debut with bitcoin cash acceptance.
Last Friday, the Bitcoin futures contract on the Chicago Mercantile Exchange (CME) closed the week at $8,715. It was a strong performance, especially considering that on Wednesday, the leading cryptocurrency had plunged to $7,300 in a flash crash event.
After about a month of being boring, Bitcoin went into a full-on party mood this week. First, on Wednesday, the bears had a chokehold on the world’s leading cryptocurrency. At one point, albeit very brief, bears dragged BTC below $7,300.
U.S. representative Ann Wagner noted at a recent hearing that child pornographic material has been reported on Facebook more than any other site. Lyn Ulbricht, mother of currently imprisoned Silk Road founder Ross Ulbricht, spoke out in a video livestream Wednesday against her son’s unfair sentencing and the hypocrisy of allowing sites like Zuckerberg’s to […]
The post Lyn Ulbricht Speaks Out Against Unfair Silk Road Sentencing and Government Hypocrisy appeared first on Bitcoin News.
On Wednesday, Bitcoin price lost $700 in a few hours and today under 30 minutes, the world’s leading cryptocurrency surged about $900. From its lowest level today at $7,393, the Bitcoin price surged to as high as $8,525, seeing a jump of 15.
On Wednesday, Bakkt’s Bitcoin futures (BTC) saw a massive volume boost as the cryptocurrency market tumbled by 10% within a few hours’ time. In fact, the upstart’s market saw 640 contracts traded, 653% the volume of the day prior and at least double of the previous traded contract all-time high.
After a start that disappointed many, interest in Bakkt’s Bitcoin futures is really picking up steam. Having witnessed an all-time high volume on Wednesday, the platform is today on track for a repeat performance.
On Wednesday, US-based Grayscale Bitcoin Trust released an advertisement wherein a white-collar miner cheerfully extracts a gold rock from a cave and takes it down to his bosses on Wall Street to make a few bucks.
Bitcoin price is consolidating above the $95,000 support zone. BTC must settle above the $100,000 level to start a fresh increase in the near term. Bitcoin started a fresh increase from the $94,200 zone.
Bitcoin price started a fresh upward move above $100,000. BTC is facing resistance at $103,000 and might aim for an upside break. Bitcoin started a decent upward move above the $100,000 zone. The price is trading below $103,200 and the 100 hourly Simple moving average.
Bitcoin price settled above the $100,500 resistance zone. BTC is consolidating gains and might aim for a fresh increase above the $105,000 zone. Bitcoin started a downside correction from the $106,800 zone.
Bitcoin price started a short-term downside correction from the $106,250 zone. BTC is consolidating above $100,000 and might aim for a fresh increase. Bitcoin started a downside correction from the $106,250 zone.