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Litecoin’s ailing price prepares for breach of descending channel

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Bitcoin Just Tapped $13,000 as Buyers Continue to Rush In

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It’s been quite the past few days for the Bitcoin price. After trading as low as $11,200 last week, the cryptocurrency has rocketed higher. BTC now trades for $12,940 as of this article’s writing, just shy of the $13,000 daily highs it reached just hours ago.

Source of BTC's price action over the past few days. Chart from TradingView.com
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Taps $13,000

Bitcoin just tapped $13,000 as buying pressure continues to erupt across the industry. Analysts think that Bitcoin is poised to squeeze higher despite already gaining almost 9% in the past day’s trading session.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Analysts note that Bitcoin’s funding rates on leading futures markets are currently negative to barely positive. This suggests that the cryptocurrency has room to squeeze higher as there remain short holders.

“The other times that BTC tried to break $12k, funding and premium were positive. They are neutral/negative now. So yeah, this time is different.”

Bitcoin

Image Courtesy of il Capo of Crypto. Source: BTCUSD on TradingView.
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
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Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Just Tapped $13,000 as Buyers Continue to Rush In

Source: https://www.newsbtc.com/analysis/btc/bitcoin-just-tapped-13000-as-buyers-continue-to-rush-in/

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Analysis: Current Bitcoin Rise Due To New Money Entering Crypto (And Not Altcoins Sell Off)

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Bitcoin is enjoying several consecutive bullish days, resulting in a break above $12,000. The movement may surprise some. A few days ago, news broke that the popular cryptocurrency exchange OKEx had suspended withdrawals after reports emerged that its founder was taken away by the police.

In early October, the owners of another large platform, namely BitMEX, were charged by the US CFTC with illegally operating a derivatives exchange.

Similar developments typically lead to adverse consequences for the cryptocurrency market. Although Bitcoin’s price indeed dipped briefly, the asset recovered swiftly. Moreover, it actually started accelerating.

On October 2nd, when the BitMEX news came out, BTC slumped to $10,400. With its price set above $12,200, this represents a 17% increase in less than three weeks. Since last Friday alone, when the OKEx events transpired, Bitcoin has gained about $1,000 of value.

Apart from building optimism within the community that a new 2020 high of above $12,500 is coming, BTC’s impressive performance raised questions about the nature of the funds going into Bitcoin.

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New Capital Enters

Popular cryptocurrency commentator Alex Saunders published a graphic on the matter called “Crypto Market Cycle Capital Flows.”

Crypto Market Cycle Capital Flows. Source: Twitter
Crypto Market Cycle Capital Flows. Source: Twitter

Saunders specified that the blue represented the entire cryptocurrency market cap, the black – BTC’s market cap, and the orange was the cumulative market cap of all alternative coins.

He outlined several periods when Bitcoin’s performance contrasted altcoins. This implies that when BTC was heading up, investors were swapping their altcoin positions for more significant exposure to Bitcoin and vice-versa.

However, the latest price increase for the primary cryptocurrency doesn’t fall under the same category. Saunders concluded that the data he collected “suggests the capital entering Bitcoin is new money rather than a rotation from Altcoins.”

Alternative Coins Stay Still

By examining the price performance of the altcoin market, one could see merit in his words. Although some alts have lost value lately, most have remained relatively stable.

On a weekly scale, Ethereum has lost less than 1%, while Ripple has dropped by about 2%, according to data from CoinMarketCap.

The altcoin market cap hovered around $148 billion a week ago and is slightly down to $147 billion now. The monthly scale even sees an increase from about $135 billion.

Altcoin Market Cap. Source: CoinMarketCap
Altcoin Market Cap. Source: CoinMarketCap
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Source: https://cryptopotato.com/analysis-current-bitcoin-rise-due-to-new-money-entering-crypto-and-not-altcoins-sell-off/

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Cardano Prepares To Break Out As Investors Watch In Disbelief

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Cardano prepares to break out as the sentiment around it creates a valuable profit opportunity while remaining dormant as the price action gets capped by the 200 and 50-hour moving averages as we are reading further in our Cardano coin news.

The on-chain metrics show that Cardano prepares to break out above the resistance level which will not be easy. The current state of the disbelief of the ADA traders could be a positive sign from the counter sentiment perspective as Cardano is going through a stagnation phase and the rest of the market aims for higher highs. As the investors shift their attention to pumping coins, ADA will go higher and will make a breakout again.

adausd
ADAUSD on TradingView

Cardano has been stuck in the 200 and 50-twelve hour moving averages so these critical hurdles have limited the price action to a smaller trading range that is getting even narrower time after time. ADA’s inability to bust through the support and resistance makes this area a no-trading zone. With Bitcoin’s impressive rally at $13,000, it is safe to assume that a breakout will soon happen but the IOMAP model shows that moving past this resistance will not be easy. Based on the on-chain metrics, about 5,200 addresses previously purchased 2 billion ADA coins between $0.11 and $0.113 so with an impressive rally like this one, a barrier could have the ability to keep the rising prices at bay. Holders in this price range will try to exit the previously recorded underwater positions which will push the prices back down.

iomap
InOut of the Money Around Price by IntoTheBlock

Because of the heavy resistance ahead, the long-term sentiment around Cardano was pessimistic. Most of the market participants believe that ADA will not create a strong enough buying pressure to break out. they seem to be waiting to catch long positions at lower prices. Going against the wider opinion proves to be a profitable strategy especially in the crypto market. From a counter sentiment perspective, this state of disbelief is bullish as the odds for another breakout that will get the traders behind their backs increases drastically.

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If Cardano manages to turn the $0.11 and $0.113 resistance into support, the IOMAP model shows no bearish traps ahead that will prevent it from rising more towards $0.13. it is also worth mentioning that if the overhead resistance rejects more upward price action, the $0.1 level could act as stiff support. More than 18,000 addresses already hold 2.5 billion ADA according to IntoTheBlock’s IOMAP model.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Source: https://www.dcforecasts.com/cardano-news/cardano-prepares-to-break-out-as-investors-watch-in-disbelief/

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