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What is key to Bitcoin hitting $300K in a year?

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Bitcoin’s market has been performing exceptionally lately, with the cryptocurrency recording YTD returns of 160%, at press time. It should be noted, however, that even though the gains in the present market are more “real,” compared to 2017, the inclination from institutions in the market has mainly been driven by the high volatility in the digital asset market.

According to data provider Skew, despite the high volatility, the close to close Realized Volatility of Bitcoin is half of what it was in 2017. In fact, it has moved less than 2% close to close in absolute value 207 days this year, making it less volatile than most technology stocks or commodities in the traditional market.

However, since Bitcoin has not yet surpassed its previous ATH, the cryptocurrency, in a way, is still in unchartered territory. Ergo, there could be a regime change if Bitcoin moves above $20K, especially in light of the record cheapness of Options skew.

Bitcoin and digital gold

The said volatility and price have definitely invited more institutions to invest in Bitcoin, but will this interest sustain itself above the $20K price level? This depends on how much of the ‘Bitcoin is digital gold’ narrative follows through.

Consider this – Recent entrant and prominent investor Stanley Druckenmiller noted that Bitcoin could be an asset class that has a lot of attraction as a store of value. This view definitely points to a shift in the thought process of big-time investors. In fact, while he conceded that he owned more Gold than Bitcoin, he added,

“I own many, many more times gold than I own bitcoin, but frankly if the gold bet works, the bitcoin bet will probably work better because it’s thinner and more illiquid and has a lot more beta to it.”

While the use of Bitcoin has remained limited to crypto-specific operations, most investors have not put their trust in it like they have in Gold. Thus, the possibility of Bitcoin’s price climbing to $300K by the end of 2021 (As assessed by Citigroup) will remain a far-fetched dream for now. This is simply because the narrative of ‘Bitcoin is digital gold’ has not been realized yet and it has not found its place among institutional investors.

That’s not all, however, as Ray Dalio believes that he cannot imagine Bitcoin being used by central banks, big institutional investors, businesses, or multinational companies, like they are using Gold. This highlighted the belief in Bitcoin being used as a hedge again inflation trades, while also underlining Gold’s precedence in comparison.

To grow as big as the Gold market, Bitcoin’s market cap has to reach $9T, which would mean a price of $485k per Bitcoin. This is higher than the estimated price put up by Citigroup. However, the only way this can be possible is if it attains the status of digital gold and if the investors believe that digital gold is indeed equivalent to physical gold.

Looking at the crypto-market right now, it is difficult to see Bitcoin climbing to $300K by the end of 2021.

Source: https://eng.ambcrypto.com/key-to-bitcoin-300k

Blockchain

TA: Why Bitcoin Must Clear $19.3K To Start A Fresh Rally Towards $20K

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Bitcoin price remained in a range above the $18,500 support against the US Dollar. BTC is trading above $19,000 and it could start a strong surge if there is a clear break above $19.3K

  • Bitcoin is currently holding the $18,800 and $19,000 support levels.
  • The price is facing a major resistance near $19,300, but it is above the 100 hourly simple moving average.
  • There is a major contracting triangle forming with resistance near $19,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair could start a strong rally if there is a clear break above the $19,300 resistance zone.

Bitcoin Price is Stuck In Range

Yesterday, we discussed the importance of the 100 hourly simple moving average and $18,800 for bitcoin price. BTC did find a strong support near the 100 hourly simple moving average and there was no downside break below the $18,500 support.

The price seems to be trading in a broad range above the $18,500 and $18,800 support. The last swing low was formed near $18,117 before the price climbed above the 50% Fib retracement level of the key downward move from the $19,957 swing high to $18,117 swing low.

The price is now facing a major resistance near $19,300, but it is above the 100 hourly simple moving average. It seems like there is a major contracting triangle forming with resistance near $19,300 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Source: BTCUSD on TradingView.com

The triangle resistance is close to the 61.8% Fib retracement level of the key downward move from the $19,957 swing high to $18,117 swing low.

Therefore, a close above the triangle resistance and $19,320 could open the doors for a larger increase. The next key resistance is near the $19,500, above which bitcoin might test the $20,000 zone.

Downside Break in BTC?

If bitcoin fails to clear the $19,300 resistance level, there is a risk of a downside break. An initial support is near the triangle lower trend line at $18,800 and the 100 hourly simple moving average.

A downside break below the $18,800 support level could push the price towards $18,500. Any more losses may possibly spark a sharp decline towards the $18,000 level.

Technical indicators:

Hourly MACD – The MACD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently just above the 50 level.

Major Support Levels – $18,800, followed by $18,500.

Major Resistance Levels – $19,300, $19,500 and $19,800.

Source: https://www.newsbtc.com/analysis/btc/bitcoin-must-clear-19-3k-to-start-rally/

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Chainlink recovery hampered under $14.5 but these key support levels hold the fort

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  • Chainlink holds above the critical support provided by the 50% Fibo in conjunction with the 100 SMA.
  • LINK/USD could resume the uptrend as long as the price reclaims the position above $14 and holds the 50% Fibo support.

Chainlink’s upside recently hit a wall amid the recovery from the Thanksgiving Day crash to $11. Several barriers were pushed into the rearview but LINK failed to sustain gains above the stubborn resistance at $14.5. Meanwhile, it is still difficult to sustain the uptrend, now that the price slipped under $14.

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Chainlink holds above critical support

At the time of writing, the decentralized oracle price feed token is trading at $13.9. Immediately on the downside, the 50% Fibonacci level is providing support. Additionally, the 100 Simple Moving Average on the 4-hour chart, adds credibility to the support.

Holding anchor above will cement the bulls’ position in the market while setting up Chainlink for a price action eyeing $18 in the medium term. As mentioned earlier several resistance levels are likely to delay the recovery, including $14.5, $15 as well as $16.

LINK/USD 4-hour chart

LINK/USD price chart
LINK/USD price chart by Tradingview

On the other hand, trading under the 50% Fibo and the 100 SMA might trigger massive sell orders. If enough volume is created, LINK would be forced to seek balance at the 50 SMA and the 38.2% Fibo. The bearish outlook has been reinforced by the Relative Strength Index after stalling slightly above the midline.

In case of extended declines, the 200 SMA is in line to cushion Chainlink from a massive drop. However, last week’s support at $11 would be the last resort before LINK enters into a downtrend with the potential of refreshing levels under $10.

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Chainlink intraday levels

Spot rate: $13.9

Relative change: -0.034

Percentage change: -0.2

Trend: Short-term bearish bias

Volatility: Low


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Author: John Isige




John is a talented writer with over two years of experience actively contributing to the cryptocurrency industry by providing credible, interesting and easy to read the content. His main focus is on cryptocurrency price analysis and industry news coverage. Lets follow him on Twitter at @jjisige

Source: https://coingape.com/77191-2/

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TrustToken and Syscoin Partner on a Stablecoin Bridge

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Decentralized marketplace and e-commerce protocol Syscoin has partnered with the stablecoin platform TrustToken.

The goal of the collaboration is to speed up payments and to provide further solutions to Ethereum’s blockchain. It also means that the five stablecoins of TrustToken, namely TUSD, TGBP, THKD, TCAD, and TAUD, will run on Syscoin’s blockchain and be available for users.

A Collaboration Between Syscoin and TrustToken

According to a release shared with CryptoPotato, the popular decentralized marketplace and e-commerce protocol Syscoin has teamed up with stablecoin platform TrustToken.

Right off the bat, this means that the stablecoins provided by the platform will now run on Syscoin’s blockchain as well. These are TUSD, TGBP, THKD, TCAD, and TAUD.

Stablecoins have grown in popularity over the past few months, mainly because of the DeFi boom, where they are used to enable staking, liquidity provision, and so forth. However, there was also an obvious challenge with all of it – scaling. Supposedly, Syscoin is intended to help with that. Using Z-DAG (Zero Confirmation Directed Acyclic Graph), the protocol claims to be able to settle transactions in less than 10 seconds with comparatively low fees.

The partnership will also enable users to mine two cryptocurrencies at the same time – SYS and BTC.

Distribution of the Roles

While Syscoin’s task would be scalability, TrustToken comes in for the stablecoin part. It’s a platform that aims at an open financial system through a selection of stablecoins.

The stablecoins it offers are collateralized, and it has also partnered with Chainlink, as well as other protocols.

The overall partnership is aimed at creating a solution for scalable and secure token payments at a lower risk interoperability with Ethereum’s network. It should make TrustToken’s stablecoins function quicker and cheaper following the enabling of the bridge.

Speaking on the matter was Syscoin’s Foundation Chairman Jag Sidhu, who said:

“Digital assets have growing needs for better usability, robust decentralized security, and a scalable way of ensuring every transaction complies with regulations. Syscoin uniquely aligns with all of these requirements. We look forward to TrustToken’s family of stablecoins becoming future-proof and gaining significant advantage with Syscoin.”

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Source: https://cryptopotato.com/trusttoken-and-syscoin-partner-on-a-stablecoin-bridge/

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