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Bitcoin’s fundamental health slides as investors grow bearish, but whales don’t seem to care

The overall state of the Bitcoin network degraded again this past week, with the latest slide primarily being driven by waning sentiment amongst the cryptocurrency’s retail traders.

The post Bitcoin’s fundamental health slides as investors grow bearish, but whales don’t seem to care appeared first on CryptoSlate.

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The overall state of the Bitcoin network degraded again this past week, with the latest slide primarily being driven by waning sentiment amongst the cryptocurrency’s retail traders.

The benchmark digital asset has also seen a decline in its liquidity over the past week, although measures of its network health have shown positive growth.

It doesn’t appear that these signs of tempered weakness have been enough to halt the multi-month trend of intense accumulation amongst so-called “whales.”

According to data from analytics platform Glassnode, the number of BTC whales has now reached levels not seen since September of 2017, right before it reached its all-time high of nearly $20,000.

Bitcoin’s fundamental strength takes a hit as investor sentiment declines 

Bitcoin’s fundamental strength has been sliding as of late, according to the Glassnode Network Index (GNI).

This week, the cryptocurrency’s aggregated GNI declined by four points. Although the network health sub-index was able to climb, the overall score was dragged down by Bitcoin’s liquidity and the sentiment seen amongst investors.

Bitcoin
Image Courtesy of Glassnode

Last week, Bitcoin’s GNI index was able to climb slightly, but it had been trending downwards for several weeks prior.

The research firm explains that saving behaviors amongst investors did increase, but the recent sentiment slide was primarily driven by the significant amount of Bitcoin that dropped out of a state of profit as a result of its recent decline from over $10,000.

“Sentiment saw the largest drop of the week, decreasing by 19 points due in large part to bitcoin’s price drop on Thursday. While saving behavior increased by 11 points, investor sentiment took a hit as more BTC dropped out of a state of profit.”

BTC whales continue accumulating despite recent turbulence

The extended consolidation pattern between $9,000 and $10,000 doesn’t appear to have impacted accumulation trends seen amongst the cryptocurrency’s largest buyers.

Glassnode spoke about the growth of so-called Bitcoin whales in a recent newsletter, explaining that there are now 1,882 entities holding at least 1,000 BTC.

They also note that the last time this number was this high was in September of 2017 while BTC was laying the groundwork for its parabolic rally that would ultimately send it to highs of $20,000.

“The last time this figure was so high was in September 2017, just as BTC was on its rapid ascent to $20k. Perhaps more interestingly, the first time we saw this many whales was in March 2016, when bitcoin was still under $420.”

Image Courtesy of Glassnode

This data signals that one of Bitcoin’s most important investor groups is optimistic on its mid and long-term outlook.

The post Bitcoin’s fundamental health slides as investors grow bearish, but whales don’t seem to care appeared first on CryptoSlate.

Source: https://cryptoslate.com/bitcoins-fundamental-health-slides-as-investors-grow-bearish-but-whales-dont-seem-to-care/

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India Reportedly Plans to Tax Crypto Investors As Bitcoin Price and Trading Activities Soar

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Barely ten months after the Indian Supreme Court lifted the RBI’s ban on cryptocurrency transactions, fresh reports from yesterday revealed that the country’s tax authority is now keeping a close watch on crypto traders as Bitcoin’s price continues its bullish trend.

Taxing Crypto Gains

According to local media, the Indian Tax Department is already in possession of data belonging to investors who invested in Bitcoin or cryptocurrencies through banking channels before the RBI’s ban in 2018. 

This development is coming after data shows a tremendous increase in crypto trading activities in India. Since the crypto ban was lifted earlier this year, retail investors between the ages of 25 and 40 have been spending millions of dollars on crypto trading every day. 

Over $25 Million Daily

Two of India’s largest crypto trading platforms, Binance-acquired WazirX and CoinDCX, saw a significant increase in activities over the last six months. According to an earlier report, WazirX recorded a massive 125% increase in user signups in the last two quarters. The exchange also has a daily trading volume of $19-26 million, with more than 85% of the transaction coming from Indian traders. 

Some experts believe it will be difficult for the country to tax crypto because there’s no regulation in place for crypto dealings. They feel a regulatory framework will provide the needed clarity to make taxation easier. While India is yet to release its crypto regulation, an earlier report suggests that the country may regulate crypto as commodities.

Declaring Bitcoin Profits As Capital Gains

Although it is unclear how India plans to implement the tax law, sources familiar with the matter claimed that the country’s taxman is already preparing to collect tax on the gains made from Bitcoin. And notice may be sent out to investors if “something goes out of this.”

Experts believe that the tax authorities may classify crypto gains as business income, and investors may have to pay up to 30% tax on profits made from selling cryptocurrencies. 

However, some tax experts are advising their clients to declare their Bitcoin earnings as capital gains, which is similar to profits generated from shares.

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Source: https://cryptopotato.com/india-reportedly-plans-to-tax-crypto-investors-as-bitcoin-price-and-trading-activities-soar/

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Bitcoin Breaks 2017 ATH But Gets Rejected: The Crypto Weekly Market Update

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To say that this week was interesting would be an understatement. It had a little bit of everything.

Starting off, towards the beginning of the week, Bitcoin officially surged past its 2017 high and recorded a new all-time high, clocking at almost $20,000 but couldn’t really manage to surge past that point.

Naturally, as it always happens with the primary cryptocurrency, things took a turn for the exact opposite of what many were expecting. The price took a beating ad dropped to the low $18,000s in a matter of hours. This resulted in around $800 million worth of liquidations in less than 24 hours.

The bulls weren’t finished, however. They intercepted the move, and the price started recovering. At the time of this writing, Bitcoin is trading around $19,000, and it’s interesting to see where it would take from here.

Elsewhere, there was quite a bit of positive news throughout the entire week. Just yesterday, the audio streaming giant Spotify posted a job opening that revealed that it’s contemplating cryptocurrencies for payments. The acting Comptroller of the Currency in the US, Brian Brooks, said that banning crypto is not part of the country’s plans, reassuring that positive news will follow by the end of Trump’s term.

Unfortunately, the week also presented us with some bad news. As CryptoPotato reported, a large Australian exchange accidentally exposed over 270,000 customer emails in a serious privacy breach. This is not the first time an incident of this kind happens as in late 2019, BitMEX went through something similar.

In any case, the overall sentiment within the community remains overly positive. In fact, a cryptocurrency sentiment survey conducted by Kraken revealed that investors hold that Bitcoin will hit $36,000 in 2021. Will it happen? Only time will tell.

Market Data

Market Cap: $562B | 24H Vol: 139B | BTC Dominance: 62.7%

BTC: $18,915 (+13.03%) | ETH: $587.46 (+16.13%) | XRP: $0.56 (+5.61%)

Audio Streaming Mogul Spotify Considering Cryptocurrency Payments. The popular audio streaming mogul Spotify has posted a job opening that reveals its intention to potentially incorporate bitcoin and other cryptocurrencies as a means of payment. With this, Spotify follows a group of major corporations that are putting effort towards implementing digital assets in their ecosystems.

Bullish Indicator to Buy Bitcoin Has Flashed Yet Again After 5 Months. The majorly bullish indicator has flashed green once again after five months. The Hash Ribbons, as it’s referred to, preceded BTC’s rallies to $10,500 in April and the run-up to $12,500 in August. It’s interesting to see if it will be correct again and if BTC will produce yet another leg up, taking it above $20,000.

Bitcoin Arrives At Wall Street: Crypto Indexes To Be Launched in 2021 By S&P Dow Jones Indices. In another news of serious cryptocurrency adoption, the leading index provider S&P Dow Jones Indices has revealed a partnership with the crypto-based Lukka to launch cryptocurrency indexes that follow 550 of the leading coins.

Bitcoin Price to Hit $36,000 in 2021: Kraken Crypto Sentiment Survey. According to a recent sentiment survey conducted by the popular cryptocurrency exchange Kraken, a majority of the respondents believe that Bitcoin will hit $36,000 in 2021. The same also think that Ether will clock in at a price of around $1450.

Visa Partners With Circle to Integrate USDC for Payments. The payment processing giant Visa has partnered up with Circle with the intention to integrate the USDC stablecoin within its network of merchants. The report also shared that 25 other companies involved in Visa’s Fast Track program would be included in the collaboration.

Australian Crypto Exchange Accidentally Exposes Over 270,000 Customer Emails. In what seems like another serious privacy breach, an Australian cryptocurrency exchange has accidentally exposed over 270,000 customer emails. This follows another mistake of the kind that happened with BitMEX in late 2019.

Charts

This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin – click here for the full price analysis.

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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.

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Source: https://cryptopotato.com/bitcoin-breaks-2017-ath-but-gets-rejected-the-crypto-weekly-market-update/

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Stellar Lumens, Waves, Decred Price Analysis: 05 December

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Stellar Lumens was rising to test the level at $0.18 at resistance before retracing more gains from the previous month, where XLM made gains of nearly 200%. Decred was also moving lower on the charts, and it is expected to see a bounce upward at $24.3 support. Waves had a bullish outlook and traded within an ascending channel.

Stellar Lumens [XLM]

Stellar Lumens, Waves, Decred Price Analysis: 05 December

Source: XLM/USD on TradingView

Using a Fibonacci Retracement tool for XLM’s move from swing low at $0.078 to a swing high of $0.233, some important levels of retracement for the coin were highlighted.

The RSI showed a value of 39, while the price was below the 23.6% level. This indicated the possibility that XLM would retest the same level at $0.18 as resistance, while the RSI tested the neutral 50 line as resistance as well, before a move downward.

The next levels of support for XLM lie at $0.154 and $0.145.

Waves [WAVES]

Stellar Lumens, Waves, Decred Price Analysis: 05 December

Source: WAVES/USDT on TradingView

WAVES was trading within an ascending channel. The bullish channel’s lower boundary can be used to enter long positions, while a close beneath the channel could be a trigger to open a short position with a target of $5.9.

Alongside the price, the OBV also made a series of higher lows, to indicate agreement between price and buying volume. The Stochastic RSI has not strayed either into overbought or oversold territory in the past few hours.

Taken together, it was bullish for WAVES at the time of writing, and dips to $7.3 and $7.4 can be a buying opportunity.

Decred [DCR]

Stellar Lumens, Waves, Decred Price Analysis: 05 December

Source: DCR/USDT on TradingView

The Fixed Range Volume Profile for DCR from 3rd November to the time of writing highlighted some important levels of support for DCR. The crypto asset showed downward momentum on the charts since closing at $33.8, with an upside wick to $43 met with strong selling pressure.

It has been falling steadily since then, The MACD line was moving some distance beneath the signal line, and indicated oversold levels. Hence, DCR could witness a bounce from the level of $24.3.

Source: https://eng.ambcrypto.com/stellar-lumens-waves-decred-price-analysis-05-december

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