Following yesterday’s $350 price lost for Bitcoin, the asset has remained relatively calm around $11,350. Most larger-cap altcoins have also seized the free-falls with Ethereum trading near $370 and Ripple above $0.24.
Bitcoin Sits Tight Around $11,350
News broke out yesterday that police officers had taken away the founder of the popular cryptocurrency exchange OKEx. Although the company reassured users that funds are safe on the platform, the negative news had an immediate adverse effect on prices.
Bitcoin was trading north of $11,550. In just a few hourly candles, though, BTC plummeted to an intraday low of just above $11,200.
The bulls intercepted the steep price decline and drove the asset to about $11,350 in the following hours. Since then, Bitcoin has primarily stayed in a range between $11,280 and $11,400.
From a technical perspective, the first support line in case of another break down sits at $11,300. Further below are positioned $11,150, $11,000, and $10,800.
Should Bitcoin heads north, it would have to fight off the resistance lines at $11,500 and $11,800.
Large-cap Altcoins Take A Breather
Most alternative coins followed Bitcoin’s rapid drop yesterday. Something similar is occurring today as the larger-cap altcoins have also stopped losing significant chunks of value.
Ethereum, Ripple, Polkadot, Binance Coin, and Litecoin sit at approximately the same level as yesterday. ETH trades at nearly $370, XRP – $0.241, DOT is close to $4, BNB is above $30, and LTC – $47.5
Chainlink (2.5%) and Cardano (2.2%) have even marked some gains on a 24-hour scale.
Even the double-digit price increase club has a few representatives. Decred leads the way with a 19% surge. Waves (17%), Stellar (12.5%), and Uniswap (10%) follow.
However, it’s worth noting that quite a few coins have continued dumping in value. Filecoin has continued tanking after the recent hype with another 27% drop.
TRON’s Justin Sun actually suggested that Filecoin founders could have pulled an exit scam by selling 1.5 FIL for $200 (worth $300 million) without an announcement. FIL’s price has plummeted since then to $45.
Aave (-25%), NEAR Protocol (-18%), and Quant (-10%) have also declined significantly since yesterday.
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Cryptocurrency charts by TradingView.
Stellar Lumens, Cosmos, Nano Price Analysis: 22 October
To the delight of bullish investors, a surging market was the highlight of the day, with many of the industry’s altcoins closely aping Bitcoin’s own price movements.
At press time, Bitcoin was being traded near the $13,000-level, having risen by over 4.5% in the last 24 hours. Further down the cryptocurrency charts, Stellar Lumens, Cosmos, and NANO followed suit, recording bullish movements of their own.
Stellar Lumens [XLM]
Up by 2.5 % over the past 24 hours with a valuation of $0.0857 at press time, the digital asset marked a notable high from its recent lows seen over the previous week.
In fact, the dotted markers of the Parabolic SAR were below Stellar Lumens’ price candles and underlined an uptrend for the coin. The Relative Strength Index, while noting a slight downturn, was still near 60 and pointed to buying pressure in the market.
The present scenario, being bullish, may see the digital asset further rise well above its support level at $0.0852. At the same time, price stabilization along this level also remains a likely scenario.
The Chaikin Money Flow was noted to rise above zero, underlining a surge in buy liquidities as the level of capital inflows became greater than the outflows and established a strong bullish trend in the Cosmos market.
The simple moving averages were bullish too, with the 9 SMA (yellow) seen above the 20 SMA (cyan). The golden cross thus confirmed a bullish ATOM market as it approached the $5.557-level of resistance.
In related developments, Cosmos recently released an upgrade for Stargate, an open-source community bounty rewards program for finding low, medium, and high-risk vulnerabilities in the Cosmos ecosystem.
NANO, at the time of writing, was trading comfortably above the 50% retracement level marked by the Fibonacci retracement tool.
With near-term technical indicators painting a bullish picture, NANO’s price was closing in on its September highs.
The Awesome Oscillator also displayed a clear bullish zero-line crossover, signaling a positive trend for the short-term.
A flip of the 23.6% region or the $0.919-resistance level to support may solidify the bullish trend further, a scenario that may unfold after brief price corrections over the next few days.
$900 Imminent? Analyst Claims Ethereum is Ready for an Explosive Move Higher
- After days of underperformance, Ethereum’s price is finally catching up to that of Bitcoin
- The second-largest digital asset saw a massive overnight rally that led it all the way up to highs of $415 before it found any resistance
- This surge marks a notable climb from its recent lows of sub-$370 that were set just a few days ago
- It has also reinvigorated altcoins, with ETH’s uptick in price allowing many smaller assets also to push higher
- Some analysts even believe it will reignite the DeFi trend
- One trader is now noting that ETH’s macro strength could lift it over 100% higher in the coming months, targeting a move to $900
Ethereum’s severe underperformance of Bitcoin seen throughout the past few days is currently being erased, with bulls aiming at it seeing further upside as it continued breaking all of its near-term resistance levels.
This uptrend comes as Bitcoin consolidates just below $13,000. Overnight, it maintained nearly all of its recent gains, which is a positive sign for buyers.
Where the entire market trends next will continue depending largely on Bitcoin, but one analyst is now noting that ETH could rally to $900 based purely on its independent macro strength.
Ethereum Surges Overnight, Erasing Underperformance of BTC
Earlier this week, Bitcoin kickstarted the ongoing uptrend when it broke above $12,000, but this move came about in the absence of any upwards momentum seen by altcoins.
Yesterday, however, this trend shifted as major altcoins began seeing notable momentum.
Ethereum rallied as high as $400 before facing strong resistance that sent it back below $390. Since then, it has rallied significantly higher.
It is now trading up well over 5% at its current price of $415. It does appear to be facing some resistance at this level.
Analyst: ETH Could Rally to $900 as Macro Market Structure Strengthens
While speaking about where this imminent bull trend could lead Ethereum, one analyst explained that he is watching for an over 100% upswing past $900 in the coming few days.
“Successful retest for ETH on the weekly time-frame. The next few months will be insane. Not much to say other than see you at $900,” he explained while pointing to the below chart.
Image Courtesy of Galaxy. Source: ETHUSD on TradingView.
How Bitcoin trends in the coming few days will undoubtedly influence Ethereum. However, ETH may soon be able to gain independent momentum.
Featured image from Unsplash. Charts from TradingView.
As Corporations Build Bitcoin Treasuries, We All Win
The last three months in Bitcoin have been marked by large corporate entities transitioning significant portions of their treasury holdings into bitcoin. In August, software intelligence company MicroStrategy announced that it purchased 0.1 percent of the total BTC supply (its CEO Michael Saylor has since gone full maxi, and become a bit of a celebrity in the space). Major payments company Square, which has been offering BTC exposure to users of its mobile payments platform for some time, allocated $50 million of its assets to bitcoin in early October. And just yesterday, U.K. fintech company Mode allocated 10 percent of its cash reserves to buy BTC as a treasury asset.
To compile this trend into a single, easily-digestible database, Coinkite’s Rodolfo Novak, a.k.a. NVK, launched bitcointreasuries.org. It lists companies that have made the transition to hold bitcoin as a treasury asset, along with their market caps, the base price of their investment vs. today’s value, the amount of BTC they hold and, critically, the percentage of the total supply of BTC that each has bought up. The allocations listed total a whopping 3.74 percent of all of the bitcoin that will ever exist.
“I always assumed that there was a place where you could see, not a complete list, but some list of large holders of bitcoin that are not private entities,” Novak explained to Bitcoin Magazine. “Especially with publicly-traded companies, because they have all of their books public anyway and it’s all audited. But I couldn’t find anything and I’m a lover of buying domains, so I just started putting [bitcointreasures.org] together in the hopes it would create more FOMO for other companies.”
The listing mostly consists of blockchain-focused companies that have divested into BTC some time ago as part of their larger business missions. Grayscale Trust, for instance, holds the highest proportion of bitcoin on the list by far at 2.17 percent of the total supply.
But many of the purchases or filings listed on the site took place this year. Novak explained that, while it might seem like lots of companies are jumping into Plan B all at once, it’s likely that even the most recent purchases have been planned for a long time, demonstrating a HODLer’s understanding of the asset.
“Corporate governance, especially for publicly-traded companies, moves at a snail’s pace,” he said. “So there had to be some mechanisms in place — sort of like a template of how to go about this. And that took years to make and, you know, bitcoin goes up, bitcoin goes down. And if you haven’t been in this space for a decade, it’s hard for you to understand that after bitcoin goes down, it goes up again. Number go up.”
But the reasons for moving toward a bitcoin-heavy treasury should be clear, especially in recent months.
“You have this store of value, everything serves at the pleasure of store of value,” Novak said. “And, you know, you hold it because you still want to be above water 30 years from now…. It’s just like, ‘Hey, I have cash in the bank, it’s going to shit, I need to find a solution.’ And, you know, gold pet rocks are not a solution.”
What Does This Mean For Bitcoin?
Because there is a finite supply of bitcoin (there will only ever be slightly less than 21 million BTC released into circulation), when any entity snatches up a significant amount, it affects everyone who might want to get their hands on some as well. And, because a major value proposition for bitcoin is this scarcity, these corporate purchases have implications for the price of bitcoin relative to fiat as well.
As a Bitcoiner who is frontrunning corporate interest, Novak is bullish about the trend.
“Everything’s good for Bitcoin, right?” he asked. “Bitcoin scarcity comes from people buying, right, and you have a limited cap supply on it. So, the more these behemoths buy it, the price goes up for everybody else.”
He also pointed out that as more diverse types of entities begin to hold bitcoin, the more the network overall will benefit.
“You want your enemies to have bitcoin, you want your competitors to have bitcoin,” he said. “Because the more types of people with different sets of preferences, different sets of incentives, that have it, the more secure the network is… If Kim Jong-un has bitcoin and the U.S. has bitcoin and China has bitcoin, it’s in everybody’s interest to not make any change to Bitcoin, right? Because if one wants a change that’s beneficial to them, the other ones are going to want that change too. So, it’s a beautiful set of incentives.”
Some retail-sized investors might see this trend as a warning to stack sats while they’re still available. But Novak points out that, while the bitcointreasuries.org roster is growing, there’s still significant opportunity to get ahead of the bulk majority of corporations.
“The little guy still has a chance to frontrun a Berkshire Hathaway,” he said. “You can even DCA at $10 a week or whatever, and you can be buying before they do. So, I think it’s not an opportunity that people should waste. It’s criminal not to have bitcoin exposure at this moment.”
Where Is This Trend Going?
When asked about where the trend in corporate allocation of BTC is headed, Novak said that he thinks bitcointreasuries.org will no longer exist in 10 years because “every single publicly-traded company that has treasury management in assets that are not just the dollar, they will have some exposure to bitcoin.”
That seemed to be a matter of inevitable hyperbitcoinization, but in the shorter term, it may help that some groups already on this list have published their methodology for divesting into BTC. For instance, Square released a white paper detailing its investment. Novak could see this utilized by other groups that are interested in following it toward Plan B.
“They created a template that other publicly-traded companies in the U.S. can just sort of follow and be regulatorily compliant to get this done,” he explained. “Now, you just go to a [corporate] board, you show that paper. You go to your legal, you show that paper. Compliance, show that paper, done. You just make the transfer and buy the bitcoin.”
A near-future bull run will also likely motivate more companies to follow Square’s lead. But the ultimate motivator may just be Bitcoin’s end game. The companies that have already made the ranks of bitcointreasury.org have adopted an incredible tool for opting out of the legacy financial system if and when that becomes necessary. Others will want to join them.
“Now they have an instrument that they can just send somewhere else,” Novak explained. “Let’s say the U.S. decides to go to shit, right? They could just send this BTC out, they don’t need permission.”
To listen to our full conversation with Novak, check out our podcast on this topic on these platforms:
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