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Bitcoin price prediction – Bulls struggle to break beyond $11,600

Bitcoin price prediction has gone haywire after multiple rejections from $11,600 Bulls have been unable to muster up liquidity and volume to break $11,600 resistance 50-day SMA is now above the 100-day SMA signalling waning bull strength Any weekend abrupt price move can do severe damage to Bitcoin price Bitcoin price prediction – BTC moving […]

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  • Bitcoin price prediction has gone haywire after multiple rejections from $11,600
  • Bulls have been unable to muster up liquidity and volume to break $11,600 resistance
  • 50-day SMA is now above the 100-day SMA signalling waning bull strength
  • Any weekend abrupt price move can do severe damage to Bitcoin price
Bitcoin price prediction - Bulls struggle to break beyond $11,600 1
Cryptocurrency heatmap by Coin360

Bitcoin price prediction – BTC moving in a bearish wedge pattern

The last week saw Bitcoin price jump above $11,500 on the back of strong fundamentals and bullish buying. As the price crossed 100-day SMA, the BTC/USD pair quickly rose to prominence and touched $11,700 within a span of one week. After a few days of horizontal movement, the Bitcoin price is now firmly rejected by crucial resistance at $11,550.

The price hovers around $11,350, and it seems that bulls have given up the fight as is evident from low volume and liquidity. A bearish pattern has emerged on the hourly charts since the larger timeframe 100-day SMA has now gone below the 50-day SMA. In case the bears take over, Bitcoin price prediction can turn lower towards $10,850 support level.

Earlier, the price range between $10,800 to $10,600 has supported the pair well. Bulls and institutional demand remains high in this range. A severe blow by the bears can also take the price further lower towards $9,700 where 200-day SMA awaits the pair.

Bitcoin price movement in last 4-hours – Bulls holding on to minor gains

Bitcoin price prediction - Bulls struggle to break beyond $11,600 2
Bitcoin price chart by TradingView

Bitcoin price currently trades around $10,350 mark. Bitcoin price prediction remains stuck in a tight range between $11,550 and $11,200. Whales have turned bearish as huge BTC are being dumped at higher levels. This may be due to profit-booking by BTC whales.

So, can the bulls come to the rescue? Speaking of the hourly timeframe, the bulls have to maintain the pressure to break beyond $11,600 resistance. Further ahead, there’s moderate resistance to stop the price from moving towards the all-important $12,000 resistance mark. On the hourly front, the bulls must close the day above $11,350 to maintain upward momentum for the Bitcoin price prediction.

BTC/USD 4-hour chart – All eyes on $10,825 support line

The support levels must be watched with utmost interest in the next few hours. The bears would have to bring the price under $10,825 level to make a substantial dent over the weekend. To achieve this, the 50-day SMA must be crossed, and from there, the price can quickly move under $10,500. If bulls can act strongly on these two walls, the selling pressure will fizzle out in a few hours turning Bitcoin price prediction positive.

Smaller hourly timeframes paint a bullish Bitcoin price prediction. Here, the charts are oversold, and $11,200 support is giving crucial support to the BTC/USD pair. The reflex recovery is so far holding well for the crypto king. The bulls must treat $11,000 as a crucial support level in the 4-hour chart.

On the technical side, the RSI is slightly oversold but still has room to go further. Continued bearish action can bring RSI in the negative fold, and price can quickly rebound to $11,500 highs in the next few sessions. However, if the wedge pattern persists longer on the hourly charts, it can spell more selling pressure. The 50-day SMA is doing a good job of absorbing excess bearish moves.

Bitcoin price prediction – BTC/USD pair again stuck in a bearish range

The symmetrical triangle pattern has started to emerge again on the BTC/USD charts. In case bulls are not able to break above $11,600 range, the pattern will materialize, and bears will be in full charge. The bearish divergence remains strong at $11,600 where selling can re-emerge in a false bullish move.

The RSI indicator is forming lower highs reflecting the declining strength of the buyers. Any loss in sustained buying at lower price levels can wreak havoc for the bulls over the weekend. Meanwhile, MACD is also turning stagnant while the moving averages are in a horizontal direction.

Disclaimer – The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Crypto staking services provider Figment raises $2.5 million in Series A funding

Figment Networks, a crypto staking infrastructure provider, has secured $2.5 million in Series A funding.

The post Crypto staking services provider Figment raises $2.5 million in Series A funding appeared first on The Block.

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First Mover: Bitcoin Falls as Covid Surges, ECB’s Lagarde Steps Up, US GDP Hits 33%

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Bitcoin was lower for a second day, even as traditional markets showed signs of stabilization following Wednesday’s sell-off. 

Cryptocurrency analysts looked for solace in bitcoin‘s October-to-date return, still at an impressive 22%, during a month when the Standard & Poor’s 500 Index of U.S. stocks has declined by 2.7%.

“The sell-off in equities and gold due to rising Covid infections and restrictive lockdowns had only a limited impact on the digital asset,” Lennard Neo, head of research for the cryptocurrency-focused firm Stack Funds, wrote Thursday in a report

In traditional markets, European stocks rose as traders awaited a decision from the European Central Bank, headed by President Christine Lagarde, on whether further monetary support is needed amid a resurgence in coronavirus cases. 

U.S. equity futures pointed toward a higher open, as a key government report showed that the world’s largest economy grew at a 33% in the third quarter – a somewhat context-less data point that’s likely to do little beyond serving as an easy talking point for President Donald Trump’s reelection campaign

Market Moves

Just as bitcoin bulls were starting to salivate over the cryptocurrency’s powerful rally over the past week toward $14,000, a sell-off in traditional markets has dragged prices back down.

Investors globally were rattled by reports of a resurgence in coronavirus cases. German Chancellor Angela Merkel announced that the country would implement tough new business restrictions, and French President Emmanuel Macron announced plans to impose a national lockdown. 

Such restrictions could crimp economic growth, theoretically a deflationary development, which could reduce demand for bitcoin in the short term as a hedge against higher consumer prices. There’s also the possibility that some investors, seeing further turmoil ahead, decided to bulk up on cash. One of the easiest things to sell is bitcoin, which is still up 84% year-to-date, even after Wednesday’s sell-off.  

“It seems the pressure was too much,” Mati Greenspan, founder of the foreign-exchange and cryptocurrency research firm Quantum Economics, told clients Wednesday. 

As detailed in First Mover on Wednesday, analysts relying on price-chart patterns have identified few points of resistance along bitcoin’s path from the hitherto-rarely-breached $14,000 psychological level to the all-time-high around $20,000, reached in 2017.   

According to Greenspan, “$14,000 is a huge psychological barrier, and I would be delightedly flabbergasted if we were able to pass through it without first seeing a significant pullback.”

options-chart-skew

Probability (left axis) of bitcoin being above $X (bottom axis) at maturity, implied from options market.
Source: Skew.

And as reported Thursday by CoinDesk’s Omkar Godbole, bitcoin options traders are assigning a low probability that the cryptocurrency will end 2020 above $20,000.

The implied chances of prices above that level currently stand around 6%, according to the cryptocurrency data firm Skew. 

“A below-10% probability of record highs by the year end means the market is unconcerned with that outcome,” Vishal Shah, an options trader and founder of Polychain Capital-backed derivatives exchange Alpha5 told Godbole in a Telegram chat.  

Despite the sincerest wishes of bitcoin bulls, it would take a rally of more than 60% in the next eight weeks for prices to set a new record. It wouldn’t be unprecedented: There have been eight times in the 11-year old cryptocurrency’s recorded history where prices have rallied more than 50% or more in a two-month span. 

It could be that traders are just being realistic. 

“The options market is seemingly not getting carried away with the recent strong price momentum,” Sui Chung, CEO of CF Benchmarks, said in a statement to CoinDesk. “If we extrapolate bitcoin’s price action and volatility of the past 90 days till December expiry, then bitcoin appears set to end the year between $14,000 to $15,000.”

Read More: Bitcoin’s Options Market Sees Just 6% Chance of $20K Before Year’s End

Bitcoin Watch

godbole-oct-29

Bitcoin daily price chart showing resistance and support levels.
Source: TradingView

Bitcoin’s price rally has paused, with the top cryptocurrency by market value near $13,100, having reached 16-month highs above $13,800 during Wednesday’s Asian trading hours.

Investors are rotating money out of stocks and into safe havens like the U.S. dollar and treasuries on concerns that Germany and France’s new lockdown restrictions would torpedo Eurozone’s fragile economic recovery.

Not just bitcoin, but almost every asset denominated in U.S. dollars has taken a beating in the past 24 hours or so. Markets saw similar but more violent action in March when recession fears triggered a global dash for cash.

Should the virus figures continue to rise, risk aversion will likely intensify, fueling a more profound decline in the cryptocurrency. However, it’s possible that investors could buy the dips, with rising institutional adoption boosting the cryptocurrency’s long-term prospects.

Besides, stock markets will likely stabilize, helping bitcoin regain poise if the ECB announces more monetary stimulus later Thursday. While the central bank is expected to maintain the status quo, it could lay the groundwork for additional stimulus in December. Earlier this month, Goldman Sachs said that the central bank could boost its pandemic bond-buying program by 400 billion euros ($470 billion) in December to counter deflationary pressures.

From a technical analysis standpoint, the immediate bias will remain bullish as long as prices are held above $12,500. On the higher side, the June 2019 high of $13,880 is the level to beat for the bulls.

– Omkar Godbole 

Token Watch

Bitcoin (BTC): Winklevosses’ Gemini cryptocurrency exchange allows purchasing and trading with euros

Ripple (XRP): San Francisco-based payments firm plans to invest in blockchain money-transfer app MoneyTap, a joint venture with Japan’s SBI Holdings. 

Crypto.com Coin (CRO): Cryptocurrency-focused credit-card lender expands in Latin American market, hires former Visa exec Filomena Ruffa as general manager.

What’s Hot

Fidelity’s digital-asset division expands crypto custody service to Asia (CoinDesk)

Blockchain pioneer Caitlin Long’s Avanti wins approval from Wyoming regulators for new banking charter (CoinDesk

Bank of Canada Governor Macklem says digital currency initiative is progressing beyond proof-of-concept stage toward launchable product (CoinDesk

FTX crypto exchange launches bitcoin pairs for tokenized versions of top stocks Amazon, Apple, Tesla (CoinDesk

Coinbase crypto exchange to launch Visa debit card in U.S. early next year (CoinDesk

Former regulator who oversaw New York State’s BitLicense development and more recently led New York Stock Exchange’s regulatory division will now join crypto-friendly venture-capital firm  Andreesen Horowitz (CoinDesk

Analogs

The latest on the economy and traditional finance

Federal Reserve might be running low on ammunition to juice market and the economy (CNBC)

Jack Dorsey, Twitter CEO who also oversees payments-firm-turned-cryptocurrency-investor Square, grilled by U.S. Senator Ted Cruz over tweet platform’s content controls (WSJ)  

Lenders now telling U.S. mall owners to pay up on past-due mortgage bills (WSJ)   

Chinese Communist Party set to detail 15-year economic growth plan (Bloomberg

Tweet of the Day

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Source: https://www.coindesk.com/first-mover-bitcoin-coronavirus-ecb-lagarde-us-gdp

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Binance exchange partner Simplex rolls out Tether to euro offramp

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Simplex, a major crypto-to-fiat payments provider, is adding another fiat offramp to enable its partner exchanges like Binance and Huob to sell major stablecoin Tether (USDT) to the euro.

According to an Oct. 29 announcement, Simplex has rolled out new Tether (USDT) offramps across its partner network including major exchanges like Binance, OKEx and Huobi.

A Simplex representative told Cointelegraph that the latest development marks the first time when the sell option is enabled for Tether on Simplex, stating:

“USDT has been available to purchase through our partner network for a while but ‘cashing out’ and selling directly in this currency were not […] But the sell option right now is only to euro, but buy is enabled with 50 fiat currencies.”

With the new crypto-to-fiat offramp, Simplex’s partner companies can immediately add the new feature for their users worldwide, the firm’s executives said. “Simplex enables anyone to sell USDT and convert it into euro — using our bank account via our partner network users can transfer those funds anywhere in the world,” the spokesperson noted.

To date, Simplex’s partner network includes over 200 services including crypto exchanges, brokers and wallets. Alongside centralized crypto platforms, Simplex’s partner network also includes companies like MakerDAO — a major player in decentralized finance, or DeFi.

The world’s largest stablecoin, USDT surged almost 300% in 2020 in terms of market capitalization, starting the year with a market cap of $4 billion and rising up to nearly $16 billion in October. According to an recent report by Bloomberg, Tether could surpass Ether’s (ETH) market cap by the end of 2021, becoming the second-largest crypto after Bitcoin (BTC).

Source: https://cointelegraph.com/news/binance-exchange-partner-simplex-rolls-out-tether-to-euro-offramp

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