Believe it or not, there remain traders that are macro bearish on Bitcoin. That’s to say, there are some investors that think the capitulation crash to $3,700 was not the worst of the bear trend.
There’s a prominent cryptocurrency analyst, for instance, who says that as long as Bitcoin remains under $10,500, he remains bearish. So bearish, in fact, that he believes the cryptocurrency is on track to plunge towards $2,000 — and maybe even lower — in the coming year or two.
Yet one commentator says he cannot understand how people are macro bearish on BTC due to the fundamentals of this nascent market.
“Whether BTC trades sideways here and breaks higher or whether it has a deeper pullback below 8k, I still don’t understand how people can still be macro bearish.”
Money Printing Can Boost Bitcoin
What the commentator’s bullish sentiment was derived from is how Bitcoin’s scarcity characteristic is becoming so valuable in a world where fiat currency is being debased at a record pace.
According to data from Picton Mahoney and shared by Dan Tapiero, there has been approximately $20 trillion worth of stimulus from governments and central banks all around the world since the ongoing illness started.
Image made by Picton Mahoney, shared by Dan Tapiero.
This is equivalent to the annual GDP of the U.S. and approximately 25 percent of the world’s GDP.
In a world where the intrinsic value of fiat money drops, Bitcoin stands to benefit, as its scarcity is enforced by hard-coded block rewards.
As Tuur Demeester postulated in a recent interview, there’s a good chance Bitcoin hits $50,000 in the coming years “especially given just how crazy the money printing is.” He even mentioned the $100,000 figure due to the zaniness of the ongoing macro environment.
Even billionaire hedge fund investors are picking up on this narrative.
Paul Tudor Jones, an investor worth in excess of $5 billion, released a report earlier this month entitled “The Great Monetary Inflation.” He wrote in that report that he would be investing his fund’s capital into Bitcoin because of the inflation of fiat monies.
“I am not an advocate of Bitcoin ownership in isolation, but do recognize its potential in a period when we have the most unorthodox economic policies in modern history,” Jones wrote in the note.
Not the Only Bullish Factor
The money printing is far from the only macro factor boosting Bitcoin.
As reported by Bitcoinist previously, there have been growing tensions over Hong Kong’s democracy.
Bitcoin stands to benefit from this because U.S. sanctions and restrictions on China due to Hong Kong will force the Chinese yuan lower. This, in turn, will drive demand for Bitcoin — just as it did in 2015/2016 and in 2019.
BlockTower Capital’s analysts summed up the macro case for Bitcoin quite well with the following statement:
“With all of these catalysts on the horizon, what’s become clear is that the macro case for Bitcoin has never been more obvious. […] Heading into the back half of 2020, the future looks pretty bright…”
Featured Image from Shutterstock origin »
Bitcoin has gotten to a positive start of the month. This, however, doesn’t seem to have convinced most investors that the month will be a strong one for Bitcoin. A poll set up by one prominent analyst and macro investor has revealed that a majority in the crypto community is bearish on Bitcoin over the […]
While Bitcoin remains up in 2019, outperforming effectively all other assets except for altcoins and Tesla, market participants have been scared by the recent reversal. In fact, one popular cryptocurrency trader, who called the bearish reversal quite well over the past few days, has warned that the macro BTC bottom might not have been established at $6,400 in December.
Ethereum and most major altcoins have incurred significant upwards momentum over the past day, which stems from Bitcoin’s notable surge from lows of $6,800 to highs of $7,400. ETH, which is slightly underperforming BTC, has been able to reclaim its positive within the $130 region, and is showing growing signs of bullishness.
Since Bitcoin (BTC) bounced cleanly off the macro $6,400 support earlier this month, analysts have been wondering if the pain is over for the cryptocurrency market. According to two key trend indicators, which predicted previous bear markets and bull markets, the medium-term to long-term trend remains bearish, unfortunately enough.
According to a cryptocurrency trader, the Bitcoin price may be set for an extended rally to $50,000 by mid-2020, based on its macro trend. Throughout the past two weeks, despite the brief breakout of the Bitcoin price to $10,600, many technical analysts have generally geared towards a bearish short term outlook.
The currently monthly bitcoin price level is below support and could potentially see lows as far down as $6,400.
The post Bitcoin Price Analysis: Macro Level Breaks as Bearish Continuation Ensues appeared first on Bitcoin Magazine.
Many have been bearish on bitcoin after the dominant cryptocurrency breached support of $9,000 in September. The month-long consolidation around $8,000 is not helping either. It is only giving bitcoin haters more reason to scream their bearish outlook.
Global equities need to post fresh highs before Bitcoin re-enters its bull market, one of the industry’s best-known analysts has said. Lee: Bitcoin Needs To Quit ‘Trendless Macro’ Phase In two tweets beginning on September 25, Fundstrat Global Advisors founder Tom Lee calmed fears about the state of Bitcoin markets.
By CCN: If you think today’s stock market declines were ugly, things could be about to get worse. While the Dow Jones Industrial Average and S&P 500 indexes managed to bounce off their lows of the day, they still ended in the red.
Summary:Following unconfirmed claims by the NYC Attorney General regarding Bitfinex and Tether’s insolvency, the bitcoin market had a knee jerk reaction that caused us to retest macro support.
Summary:Buying pressure continues as the bitcoin market holds above the macro, bearish trendline and the monthly resistance level. There was a small amount of selling pressure but it was absorbed by eager bulls.
Introducing our first video price analysis by Bitcoin Schmitcoin.
Summary:Bitcoin broke out of a massive consolidation pattern known as an “Adam and Eve” double bottom.
A slow, grinding upward drift has been the name of the game for bitcoin’s market over the last few weeks. The upward drift is bringing us slowly to a level that was previously rejected violently:Figure 1: BTC-USD, Daily Candles, Upward DriftOur third rejection of the red resistance level shown above brought the market into a test of macro support in the mid-$3,000s.
Last Friday, we discussed a macro resistance level bitcoin would likely test. The level was tested three times prior and immediately rejected. Now, for the fourth time, we find ourselves situated above the level as we wait to see if our support holds:Figure 1: BTC-USD, Daily Candles, Fourth Test of Macro ResistanceThe first three attempts to hold support above the black, broken resistance have been stifled with relatively high amounts of volume.
Bitcoin remains in its tightly coiled range as the market continues its sideways trend for the third week in a row. While macro support has been tested three times recently, we have yet to test the overhanging macro resistance:Figure 1: BTC-USD, Daily Candles, Narrow RangeThe blue zone outlined above shows a very strong zone of support that, over the last few weeks, has seen three strong tests and has led to a slowly upward-drifting market consolidation.
Bitcoin continues to coil tightly within its range-bound market as the bulls and bears fight it out to see which is most dominant. On the lower time frames (TF), bitcoin is managing to find support:Figure 1: BTC-USD, 2-Hour Candles, Low TF SupportThe zone outlined by the green line in Figure 1 represents local support that has kept the market afloat for the last week and a half.
Leading into the London open, bitcoin broke through its local support level in a move that seems to be hinting toward a downward continuation:Figure 1: BTC-USD, Daily Candles, Broken Local SupportSo far, our daily candle has yet to close, but it is currently on schedule to close below local support.
Shortly after falling from its test of the low $4,000s, bitcoin managed to find support in the mid $3,500s. This has proven to be a relevant level over the last few months, and finding support here would be a sign of relatively strong demand:Figure 1: BTC-USD, Daily Candles, Local SupportThe high candle spread rejection following our test of the low $4,000s was an indication that we had strong levels of supply left in the market, but for the time being we are holding support.
Over the weekend, a strong rally was stifled by an even stronger rejection as the bitcoin market was shoved into a band of overhanging resistance. This band of resistance has been mentioned several times in our analyses over the last few weeks as it has proven impossible to overcome for the time being:Figure 1: BTC-USD, Daily Candles, Failed BreakoutThis run to the low $4,000s coincided with a breakout of a rather large symmetrical triangle consolidation shown above.
The cryptomarket remains coiled as we lead into the weekend with no new highs and no new lows being established for bitcoin. However, it is nicely consolidating on lower time frames and hints toward the possibility of another leg up:Figure 1: BTC-USD, Hourly Candles, Consolidating PennantThe pattern shown in Figure 1 outlines a potential continuation pattern called a “bullish pennant.
Over the course of the last 10 days, bitcoin has managed to rally nearly 20% in value as it burst through two major resistance levels and is now beginning the test of a major macro level:Figure 1: BTC-USD, Daily Candles, Macro ResistanceWe can see a clear, descending supply-and-demand channel that governed the market for the last two months.
Last week, we saw a violent move to the upside as bitcoin rallied 11% over the course of one day. Since peaking in the upper $3,600s, bitcoin has seen close to zero bullish follow-through, and the price has begun to drift downward over the course of the last week:Figure 1: BTC-USD, Hourly Candles, Downward DriftDownward-drifting markets like this can often be a sign that distribution is taking place.
After weeks of consolidation, bitcoin finally broke through support. The market now finds itself cruising toward prior lows. On expanding volume and spread, the bitcoin market appears ripe for a continuation of the downtrend:Figure 1: BTC-USD, Daily Candles, Broken SupportAlthough the current daily candle has yet to close, unless there is a strong influx of demand hitting the market, it stands to reason that bitcoin will be closing a new daily low for the first time since mid-December.
Finally, after about a week or so of a tight, range-bound market, bitcoin poked right through support. This swift move dropped the price nearly 10% in the span of just a few short hours:Figure 1: BTC-USD, Hourly Candles, 11% DropNot only did this move occur on high spread, it occured on high volume.
For the better part of a month and a half, bitcoin has been fairly range-bound and unable to establish new lows or new highs. There are some bullish and bearish setups on the horizon for bitcoin, so let’s check out both sides of the argument because currently the market is sitting in the middle of Indecisionville — the most immediate sign of which is this glaringly obvious head-and-shoulders bottom reversal pattern:Figure 1: BTC-USD, Daily Candles, Head-and-Shoulders BottomThis current pattern is nothing more than a setup at the moment, but it represents one potential outcome of this sustained consolidation.
Another week, another low. Bitcoin’s market has been bleeding relentlessly for weeks and now, after falling 50% in value in just one month, the market has managed to break south of a major bearish consolidation pattern called a bear pennant:Figure 1: BTC-USD, 4-Hour Candles, Bear Pennant BreakoutThis is a massive bear pennant with a staggering $2,000 measured move.
American economist and chairman of economic consultancy firm Roubini Macro Associates LLC, Nouriel Roubini, is keeping his earned nickname of “Dr. Doom” intact, providing an incredibly bearish report on cryptocurrencies and Bitcoin in front of the U.
When we last discussed the ETH-USD pair, the price was testing support in the mid $200 range. Since then, the market has dropped another 30% as ether tests the waters in the upper $190 range:Figure 1: ETH-USD, 1-Day Candles, Macro TrendThe volume on the current drop has been exceptionally high compared to the beginning of its descent from the $800s.
In a potentially trend-changing move, bitcoin has now managed establish its first *higher* low since the beginning of this years crypto bear market. In mid-June, after seeing a short-lived bounce from this year’s low in the upper $5,000s, the bitcoin market took a very harsh, unrelenting move that dropped the price from the mid $8000s to the $5900s.
Once again, bitcoin finds itself precariously perched on the bottom of its macro trading range (TR). After a strong round of selling over the course of two weeks plunged the price back to the $6,000s, bitcoin began consolidating for several weeks at the bottom of the TR:Figure 1: BTC-USD, 1-Day Candles, Macro TRAs shown in the figure above, the market has interacted several times at the current price range and it has been a source of three major bullish rallies.
Jeff DeGraaf, head of technical research of Renaissance Macro Research says that Bitcoin may not rise again to its high value if it breaks down below its present support zone. His opinion is trailed the digital currency over the bearish trend it took in this past week that sees it go 14% low.
From Crescat Capital’s latest update to investors China equity and yuan shorts worked well for Crescat’s hedge funds in July although US equity shorts and the gold longs held back the performance. We expect US equity shorts and gold longs to be changing soon in our favor. The S&P 500 is re-testing its January 26 […]
After a feeble rally on diminishing volume, bitcoin is currently in the middle of its first major pullback in about 2 weeks. Over the last week or so, bitcoin managed to break its sustained downtrend and trend back inside the macro trading range (TR) — both of which are quite bullish market characteristics.
Bitcoin sits precariously perched at the bottom of the annual market low and many bitcoin investors aren’t sure what to make of it. Although the market seems to be continuing its drift to new lows with greater and greater ease, there are a couple of bullish signals worth considering while the market continues to consolidate: Figure 1: BTC-USD, Daily Candles, New Market LowOn Friday, June 29, 2018, for the first time this year, the daily candles closed below the annual low of $6,000s.
In the previous BTC-USD market analysis, we discussed a macro pattern forming, called a “symmetrical triangle. ” A symmetrical triangle (shown in red) is a directionally agnostic consolidation pattern.
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.