Bitcoin is moving up, here’s what will happen next

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Bitcoin Breaks $10,000 Again, Here’s Why

After a brief dip below $9,800, Bitcoin is again moving up. It has passed $10,400 over 24 hours with all signs pointing toward greater gains in the days ahead.

OPTIMISM IS GROWING FOR MORE BITCOIN GAINS

With the second break above USD $10,000 in two days, analysts are no longer debating whether or not Bitcoin is recovering. Discussion has now moved to how high the price may rise before reaching a ceiling.

The price surge is tied to statements by U.S. Federal Reserve Chairman Jerome Powell. Earlier today Powell testified before Congress, where he acknowledged that the fed is working on digital currency. Powell also recognized that cryptocurrency adoption poses a threat to the U.S. Dollar.

Bitcoin has now surpassed its recent high of $10,180 on February 9th, with no sign of a retracement. This upward price action has been swift. At one point the cryptocurrency moved up over $500 in under 6 hours, breaking $10,400.

The alt market has made similar moves, with top altcoins experiencing significant increases in value over the past twenty-four hours. Ethereum has crossed $230, a gain of more than five percent, and Litecoin has moved past $75, a gain of more than four.

There has also been a notable increase in media attention toward Bitcoin, as well as in Google searches, further indicating that investors are expecting prices to move higher.

FUTURE VOLATILITY ALMOST CERTAIN

As has been previously discussed, sell-offs almost always follow rapid gains. This time was no different, as Bitcoin’s price dipped below $10k after the weekend run up. It is perfectly reasonable to assume that it will happen again, making short-term market prediction very difficult.

Also, attention continues to focus on the upcoming block reward halving. The expectation that this timed move will lead to higher prices appears to have taken on a life of its own. Analysts now overwhelmingly view it as a sign of an impending bull market.

The halving is expected in May

There is, of course, no doubt that legacy financial institutions are paying very close attention to Bitcoin’s rebound. In years past most traditional financial professionals derided cryptocurrencies as valueless frauds. There is now no question that they are here to stay and represent a new global asset class. The extent to which institutional investors will move into the market remains unknown, but it is folly to assume that they will remain on the sidelines indefinitely.

The present conditions are clear examples of the tremendous volatility within the crypto market. As more fiat moves into the space, rapid price swings are all but certain to become more common. Also, despite analyst predictions, history has proven that accurately predicting Bitcoin’s future value is next to impossible. The current price recovery should not be considered an exception to these rules.

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Where do you think Bitcoin is heading this week? Add your thoughts below!

Bitcoin is moving up, here’s what will happen next

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Bitcoin (BTC) Flash Crash Cripples Bullish Resolve, Here’s What Could Happen Next

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Bitcoin (BTC) crippled the bullish resolve after it crashed by almost $1k in a matter of minutes. This was a surprising move that happened out of the blue and shook out many retail bulls. There were almost $148 million worth of longs liquidated on Bitmex alone. Other major exchanges saw similar liquidations as tables turned on the bulls and the bears were all of a sudden in control. However, as with all abrupt moves like these, it is always important to see follow through. The manner in which this dump happened means that the big players don’t want there to be a follow through as they don’t want this to get out of hand.

The way BTC/USD crashed is a sign that the whales and market makers wanted to run those stops below $9.7k without giving the bulls a chance to protect themselves. They also wanted this correction over and done with so the rally can ensue. As we can see now on the 1H chart for BTC/USD, the correction is finally over and Bitcoin is ready to surge higher as it has found support on the 38.2% fib level which corresponds to $9,564. That being said, there is no reason to be complacent and expect a rally to $12k from here without a risk management strategy in place. This is a volatile market and things can change very quickly. This is why it is important to always remain prepared for all eventualities.

Even though I expect BTC/USD to rally towards $12k before halving, if we see Bitcoin dominance (BTC.D) break trend line resistance and rally higher from here, we might see the trend reverse a lot sooner than expected and Bitcoin (BTC) may then not end up testing $11.7k or higher. So far, it appears very probable that BTC/USD will climb back above $10k but that could change quickly and if it does, we need to be prepared. The whole rally from $6.7k onwards has been mostly a result of sheer manipulation. There is no reason at all to trust any of it.

While I expect BTC/USD to decline to $1k towards the end of this bear market, most likely in 2021, I have to say that the sentiment has turned quite bearish at the moment. Sometimes, Twitter is a very good indicator of what the market might do next. Most of the popular crypto accounts are suddenly more comfortable expecting a decline below $9k. This coupled with the technicals could mean that we might be done with the correction here and BTC/USD might be all set to rally towards $11.7k from here. The price of Bitcoin (BTC) bounced very strongly off the 200-moving average on the 4H time frame yesterday. As long as it remains above the 200 MA, the bulls have no reason to worry.

Crypto Markets Flash Green Again Today, Here’s Why

After over two weeks of decline, a series of notable movements have converged to push the crypto markets higher. Whereas market volatility remains the norm, today’s gains serve to assuage fears that the market recovery has stalled.

Bitcoin Futures Have Expired

A round of Bitcoin futures has recently expired on the Chicago Mercantile Exchange (CME). Although much has been made of the impact of futures on the Bitcoin market, the price tends to go up shortly after expirations.

Interest in futures continues to reach record highs, clearly indicating a strong desire by investors to take advantage of Bitcoin’s predicted 2020 gains. In February, CME futures topped USD $1 Billion for only the third time ever, with crypto analysts already expecting a price spike as a result.

On the subject, the CME tweeted:

CME Bitcoin futures (BTC) open interest reached a record high of over 6.6K contracts on February 19 and nearly 300 new trading accounts were added this year, as of February 24. https://t.co/EU3e7nyh5B pic.twitter.com/38SlA3qvpg

CME is also not the only futures exchange to be experiencing record growth. Bakkt has continued to reach new volumes month after month. Both exchanges have plans to expand their offerings to serve a more diverse group of consumers.

Simply put, an increase in futures interest demonstrates a maturing market, which can only be good for Bitcoin.

Bitcoin Hash Rate Now Moving Up

For several weeks the hash rate has remained flat, which is surprising given Bitcoin’s gains earlier this year. The factors that may have been involved in this phenomenon have now clearly passed, as the rate has spiked to its highest level ever.

The correlation between hash rate and price may be complex, yet there can be no doubt that this increase in mining reflects an optimistic mood among Bitcoin’s core adopters. In fact, the last time the hash rate reached an all-time high at these prices the flagship crypto experienced a significant market surge. Many now believe it will happen again.

Crypto Transaction Volume Continues To Accelerate

Daily transaction volume has continued to move up during the brief market retracement. It has now rarely fallen below 300,000 for well over four weeks. In fact, the daily transaction volume may soon break 400,000, which has not happened since last June.

This movement, of course, coincides with the dramatic increase in overall blockchain usage of the past 12 months. Given Bitcoin’s continued hegemony in the space, a crypto market recovery should be expected.

Although volatility is the norm in crypto markets, ancillary data demonstrates that interest in Bitcoin, and blockchain technology, has only grown. Thus, today’s market rebound is a reasonable reflection of global sentiment. Even if further corrections take place, the march toward mainstream adoption continues unabated.

How long will crypto markets stay in the green? Add your thoughts below!

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