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Bitcoin Likely to Break Below $11,000 Before Next Uptrend: Analyst

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Bitcoin has been caught within a prolonged consolidation phase throughout the past few days and weeks, with buyers and sellers both being unable to take control of its near-term trend.

This has done little to offer investors with insight into where it may trend next, and its close correlation to the U.S. stock market makes it likely that it will continue lacking a trend until either the election is finished or a second round of stimulus is passed through.

This could be incredibly bearish for altcoins, as they have been slowly sliding lower over the past few days while investors move to take some risk off the table while the entire market’s outlook remains somewhat uncertain.

One analyst is now noting that he expects Bitcoin to see a pullback in the near-term that takes it beneath $11,000.

Although this decline would be overtly bearish, he believes that it will be the last decent buying opportunity and will be followed by significant upside.

Bitcoin Struggles to Break Consolidation Phase as Selling Pressure Persists

At the time of writing, Bitcoin is trading up marginally at its current price of $11,340. This is around where it has been trading throughout the past few days and weeks, with buyers and sellers largely reaching an impasse.

Its rally up to these highs occurred last week close on the heels of news regarding Square’s decision to purchase $50 million worth of BTC to be held on their asset books.

This news was certainly bullish and marked another step forward towards Bitcoin becoming a reserve asset.

That being said, it was not enough to push BTC past the resistance it faces within the mid-to-upper $11,000 region.

Analyst: BTC Likely to Reel Towards $10,700 Before Extending Uptrend 

For Bitcoin to further extend its uptrend and rally higher, one analyst is noting that it is imperative that the cryptocurrency retraced towards $10,700 before making any further advances.

“We finna tap the MO. But don’t go net short or you’ll get left behind empty handed for good,” he said while pointing to the chart seen below.

Bitcoin

Image Courtesy of Byzantine General. Source: BTCUSD via TradingView.

Where the entire market trends next will depend largely on Bitcoin and on whether or not it can defend against any sustained downturn in the days, weeks, and months ahead.

Featured image from Unsplash.
Charts from TradingView.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-likely-to-break-below-11000-before-next-uptrend-analyst/

Blockchain

HODLers: Most Crypto Investors Hold Majority In Bitcoin Over Altcoins, Survey Finds

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As Bitcoin price recorded a new yearly high, most of the participants in a recent survey shared that they hold the majority of their holdings in Bitcoin rather than altcoins.

Bitcoin traders are basking in profit as October turns out to be a good month for BTC.

46% Of People Allocate More Than 50% To BTC

Crypto commentator and analyst Josh Rager took to Twitter to ask crypto users how much of their portfolio is allocated to Bitcoin. Voters had to choose from one of four options that best describe their portfolio.

The result of the poll was quite interesting. As much as 35% of traders revealed they dedicated less than 10% of their portfolio to the most valuable cryptocurrency. This category is bullish on altcoins and had the highest number of votes in the poll.josh_rager_poll

A total of 23.2% maintained that Bitcoin holds a significant percentage in their portfolio. According to the results, these people dedicate between 51% to 89% of their portfolio to Bitcoin.

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The third-highest category consists of Bitcoin maximalists who are very bullish on Bitcoin. These voters, which made up 22% of the poll result, said that 90 to 100% of their portfolio is allocated to the king coin.

Lastly, the fourth category, consisting of 18% of voters, said they allocate between 11 to 50% to BTC.

In other words, almost 46% of the respondents shared that they hold over half of their portfolio in Bitcoin rather than altcoins.

Bitcoins Hits $13,200, Altcoins Suffer

Elsewhere, altcoins have been experiencing terrible nightmares since last month. An earlier report suggested that Bitcoin’s fresh surge is crushing both altcoins’ prices and market dominance.

At the time of writing, Bitcoin has blasted through important resistance levels, reaching a fresh 2020 high of $13,217 on Binance. The cryptocurrency now holds a market dominance of about 61%.

Although the speculation around is the current surge is caused by money flowing from altcoins into Bitcoin, a fresh analysis debunked has debunked that. As CryptoPotato reported, Bitcoin’s rising value is likely caused by new money entering the crypto market.

Moreover, the latest surge seemed to be primed largely by the news that PayPal, the world’s largest online payment processor, will start allowing users to buy, sell, and hold Bitcoin and other cryptocurrencies.

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Source: https://cryptopotato.com/hodlers-most-crypto-investors-hold-majority-in-bitcoin-over-altcoins-survey-finds/

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BTC Price Analysis: After Breaking 2020 High, Is Bitcoin Eyeing $14K?

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Bitcoin price has managed to avoid all 3 unfilled CME gaps this week and go on to break the $13,235 level for the first time since July 10, 2019 – 469 days ago.

The catalyst for the 11% surge was the breaking news from PayPal yesterday that the payments giant will soon facilitate BTC and other crypto-asset payments.

According to data from Datamish, the Paypal rally caused a $70.8M short squeeze on BitMEX as an eye-popping $31 billion returned to the crypto market during yesterday’s frenzy. This will have undoubtedly helped catapult prices beyond the milestone $12K and $13K levels as short traders buy back into BTC to cover losses.

Price Levels to Watch in the Short-Term

On the weekly BTC/USD chart, we can see that prices fell just shy of the 0.618 Fibonacci resistance at $13,360. Between this price point and the $13,890 level above, we have a major resistance zone (red shaded area) that has not been closed above since January 15, 2018 – during the huge crash from Bitcoin’s all-time high of $20,000.

This will be a massive psychological barrier for bullish traders to overcome, and will need considerable momentum to break it successfully.

Just above this area, we also have the upper resistance line of a broadening wedge pattern that bitcoin price has been tracking inside of since April 27, 2020, on the weekly chart (yellow lines). This currently sits around the $14,000 level. It’s possible that we could see a reaction at this trend line if prices managed to break through the aforementioned red zone.

From there, the most obvious daily resistances above this are the $14,600, $15,400, and $15,800 levels, before we get to the 0.786 Fibonacci level at $16,150.

Looking at potential supports, we have a key S/R zone (green shaded area) between $11,950 and $12,300, which should create some buying pressure to push back against a bearish decline.

Underneath that, we have the 0.5 Fibonacci level at $11,400, the daily 50 EMA (blue) at approx $11,170, and the support line of the broadening wedge pattern at around the $10,900 area.

With Bitcoin now dangerously close to breaking into the overbought region on the weekly RSI for the first time since July 2019, it’s possible that we could see a sharp decline as trading bots are triggered by the indicator before a new leg of the uptrend begins.

Total market capital: $395 billion
Bitcoin market capital: $ 237 billion
Bitcoin dominance: 60.1%

*Data by Coingecko.

Bitstamp BTC/USD Weekly Chart

bitcoin trading
BTC/USD chart via Tradingview
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/btc-price-analysis-after-breaking-2020-high-is-bitcoin-eyeing-14k/

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Bitcoin Price Paints A Fresh All-Time High Against Two National Currencies

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While most cryptocurrency community members speculate when or if Bitcoin will ever top its all-time high against the dollar, the digital asset has already marked an ATH against other government-issued fiat currencies – the Brazilian Real and the Turkish Lira.

Bitcoin Smashes Through BRL ATH

The past several days have been significantly exciting for the cryptocurrency industry, especially for its most well-known representative. Compared to the US dollar, BTC dipped to $11,200 on Friday, but since then, it has been on an impressive ride, resulting in a new 2020 high.

As CryptoPotato reported earlier, BTC pushed above $13,000 and topped at above $13,200. Looking at its price developments from the past few years, it’s easy to spot that this is still $7,000 less than its highest level of nearly $20,000.

Naturally, Bitcoin is compared with the US dollar as the latter is the world’s reserve currency. However, since BTC operates internationally without border limits, it’s compelling to follow its performance against other national currencies.

For example, during the December 2017 boom, one bitcoin cost 69,000 BRL in Brazil. Despite being officially ranked as the world’s ninth-largest economy by nominal GDP, Brazil’s currency has suffered since then.

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BRL’s decline in value, combined with Bitcoin’s recent increase, has resulted in a new all-time high. According to data from TradingView, the trading pair BTC/BRL reached 72,000 BRL today.

BTC/BRL. Source: TradingView
BTC/BRL. Source: TradingView

Bitcoin Sees New High In Turkey As Well

The Turkish Lira is another national currency that has dumped in value lately. The country, led by President Recep Tayyip Erdogan, experienced rising inflation and borrowing costs, resulting in loan defaults in 2018. The COVID-19 pandemic only accelerated its economic decline.

As the virus infiltrated the nation in April, the central bank enhanced its efforts to keep credit flowing through the economy by cutting interest rates from 12% at the end of 2019 to 8.25% in May.

Despite Erdogan’s intentions, the loan growth increased by 40% and even 50% – record numbers not seen since the previous financial crisis in 2008.

Ultimately, this credit explosion, the need for foreign currencies, and the rising imports led to a near 12% domestic inflation increase in July alone.

Amid Turkey’s declining currency, Bitcoin took advantage and marked a fresh ATH in August this year. One bitcoin equaled 83,500 liras at the time.

The situation has only worsened for the TRY since then, while BTC has grown to new highs as described above. The chart below illustrates that BTC/TRY has surged to a six-digit territory at 101,200 TRY per one bitcoin.

BTC/TRY. Source: TradingView
BTC/TRY. Source: TradingView
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Source: https://cryptopotato.com/bitcoin-price-paints-a-fresh-all-time-high-against-two-national-currencies/

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