Traders Beware Indicator Signals Massive Bitcoin Volatility is Inbound

Bitcoin (BTC) has been caught in the throes of consolidation for the past several weeks and months, and it has failed to garner any momentum in either direction in the time since it plummeted below $10,000.

This period of consolidation may soon be coming to an end, however, as one technical indicator is elucidating that a massive movement may be imminent, and one analyst believes that Facebook’s Libra may play a role in BTC’s future volatility.

Bitcoin Consolidates as Bulls and Bears Remain Deadlocked

At the time of writing, Bitcoin is trading down marginally at its current price of $8,250, and its buyers have failed to significantly extend the upwards momentum that it incurred in the time since it visited $7,900 late last week.

Bitcoin has been caught in a relatively tight trading range between roughly $7,800 and $8,800, with significant support at the former price and strong resistance at the latter price.

It is important to note that this period of sideways trading has come about after Bitcoin’s massive drop from its previous support level at $10,000, and although the mid-term trend remains bearish, the noteworthy support that has been established at $7,800 may mark a long-term bottom for the cryptocurrency.

In a recent report on Bloomberg, it is noted that Bitcoin’s Trading Envelope indicator is currently at its narrowest since mid-September, which means that another massive movement may be imminent for the cryptocurrency.

“The gauge smooths moving averages to map out higher and lower limits and a similar narrowing last month preceded a drop of more than 12% for Bitcoin on Sept. 24,” the report explained.

Facebook’s Libra May Contribute to BTC Volatility

Detailed in the same report, Matt Maley, an equity strategist at Miller Tabak + Co., explained to Bloomberg that he believes the fate of Facebook’s Libra is currently contributing to BTC’s price action, and that the crypto will only be able to resume its standard market cycles ones the headwinds from Libra die down.

“As it becomes more and more obvious that the Libra thing is not going to take off – it’s going to be a long time before it becomes an important part of anything Facebook’s doing – as that becomes more obvious, the volatility will pick up again… This issue with what’s going on with Libra and Facebook is a definite headwind and it’s not going to go away.”

Although it does remain unclear as to whether or not Libra is truly having any significant influence on Bitcoin’s price action, as its fate grows increasingly clear, it may allow Bitcoin to regain control of the news cycle.

 

Cole Petersen

David Ogden – Http://markethive.com/david-ogden

Billionaire Bitcoin Bull Backs Fight Against Chinese Monopoly on BTC Mining

A long-time Bitcoin bull with around $2.3 billion in net worth, Peter Thiel, is a good ally to have on your side if you plan on challenging China’s dominance in the global BTC mining industry. On that count, San Francisco-based Layer1 has scored a big win by raking in millions in funding from Thiel — for the second time.

For those unfamiliar with the startup, Layer1 aims to make the United States a hotbed for environmentally-friendly Bitcoin mining.

The company’s objective is to become vertically integrated, meaning it aims to launch its own Bitcoin mining facilities in the U.S., use its own power procurement for the cause, and internally design/manufacture all mining rigs.

Worries About China’s Influence on Bitcoin’s Hashrate

China has been leading Bitcoin mining-related activities ever since the early days of the world’s first cryptocurrency. The country has the largest number of Bitcoin miners in the world — in addition to being home to some of the largest mining rig manufacturers. This has caused some serious concern among analysts and the broader community.

A 2018 report jointly prepared by the researchers at the Princeton University and Florida International University underlined that nearly three-fourth of hash power on the Bitcoin network can be traced back to Chinese-managed mining pools. The report noted that while the Chinese government does not directly control these mining pools, their managers are located in China and, therefore, are subject to the communist government’s diktats.

Echoing a similar statement, Layer1’s co-founder and chief executive, Alexander Liegl, recently wrote that Chinese control of Bitcoin’s hashrate is as much as 60 percent or higher. The U.S. accounts for only five percent of the network’s hash power.

Is it Possible to End China’s Lead in BTC Mining?

Given China’s current lead over other countries, tipping the balance outright is probably out of question — at least, for the foreseeable future. Layer1 understands that and plans on proceeding one step at a time.

The company is optimistic that, with some effort, it can help the U.S. account for 15 percent of Bitcoin’s net hashrate. The fact that Layer1 already owns electricity substations and land-property in Texas will be of great use towards accomplishing that feat.

 

Shilpa Lama 1 min ago

David Ogden – Http://markethive.com/david-ogden

Institutional Longs on Bitcoin Price Grow as Bear Momentum Wanes

Despite the harrowing price drop seen in late September, institutions are expecting for the Bitcoin (BTC) price to soon head higher — at least for institutions involved in the Chicago Mercantile Exchange (CME) futures market.

Industry analytics provider Skew recently observed that long positions held by institutional accounts — pension funds, endowments, insurance companies, mutual funds & portfolio/investment managers with institutional clients — have begun to rise again in October after nearly falling to zero BTC. Right now, this subset’s long holdings sit at just over 1,100 BTC.

Bitcoin Bull Case Gains Traction

The trend Skew observed comes as Bitcoin’s bull case has begun to grow once again. For instance, a partner at Bitazu Capital recently found that BTC’s price is nearing a bottom. He noted that a number of technical indicators suggest that the bear trend is about to reverse.

The fundamental side of the Bitcoin story is also gaining traction. On Friday, Abigail Johnson, chief executive of Fidelity Investments, told Financial Times that the firm’s cryptocurrency branch will finally be rolling out its Bitcoin and cryptocurrency custodial and trade execution services to all qualified accounts — institutional players.

Johnson also said that she believes that Bitcoin is not a mere trend and is instead here to stay:

“It’s not going away. As long as the value is there, people will look to preserve that value.”

Not In The Clear Just Yet

While the bull case for Bitcoin is growing, this market is not in the clear just yet.

Per previous reports from this very outlet, a “death cross,” which is when a short-term moving average crosses below a long-term moving average for an asset, is forming on the Bitcoin chart. Should this technical pattern come to fruition on Bitcoin’s chart, it will show that bears have control of this market. As a trader pointed out, the last BTC death cross, which was observed in 2018, marked the commencement of a long-term price correction.

Also, Peter Schiff, a prominent libertarian investor, has suggested that BTC’s price chart “looks horrible.”

Schiff, in fact, remarked that the “(bear) flag that followed the recent breakdown projects a move to $6,000,” which would imply a 25% drop from current levels if this move pans out. He even added that not only has Bitcoin fallen below a flag, “but we are [also] close to completing the right shoulder of a head and shoulders top … that projects a collapse below $2,000.”

 

Nick Chong

5 hours ago

David Ogden – Http://markethive.com/david-ogden

Bitcoin (BTC) Price Weekly Forecast –  Vulnerable Below $8K-$8.2K

There was a steady decline in bitcoin price below the $8,200 support against the US Dollar.

The price is currently trading below $8,000 and it remains at a risk of more losses.

There is a major bearish trend line forming with resistance near $8,100 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).

The price must climb above $8,100 and $8,200 for bullish continuation in the near term.

Bitcoin price is showing bearish signs below $8,000 against the US Dollar. BTC could extend its decline below the $7,800 support area in the near term.
 

Bitcoin Price Weekly Analysis (BTC)

In the past few days, BTC followed a bearish path below the $8,400 and $8,250 levels against the US Dollar. The BTC/USD pair even settled below the $8,200 support and the 100 simple moving average (4-hours). Finally, there was a break below the $8,000 support and a new monthly low was formed near $7,822. The price is currently consolidating losses and is trading below the $8,000 support.

An immediate resistance is near the $8,000 level or the 23.6% Fib retracement level of the recent decline from the $8,475 swing high to $7,822 low. On the upside, there are many hurdles near the $8,100 and $8,200 levels. Moreover, there is a major bearish trend line forming with resistance near $8,100 on the 4-hours chart of the BTC/USD pair.

Besides, the 50% Fib retracement level of the recent decline from the $8,475 swing high to $7,822 low is also near the $8,150 level. Finally, 100 simple moving average (4-hours) is positioned near the $8,200 level. Therefore, bitcoin price must surpass the $8,100 and $8,200 resistance levels to start a decent recovery. Additionally, a close above the $8,200 barrier and the 100 SMA is needed for more upsides.

On the downside, the key support is near the $7,800 level. If there is a downside break below the $7,800 support, the price could continue to decline in the near term. The next major support is near the $7,500 level, below which there is a risk of more losses towards $7,200.

Looking at the chart, bitcoin price is clearly trading in a bearish zone below the $8,000 pivot level and the $8,200 resistance. Therefore, a convincing break above $8,000 and a follow through above $8,200 is required for a strong recovery. If not, the price is likely to test the $7,500 support area.
 

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving back into the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering and it could break the 40 level.

Major Support Level – $7,800

Major Resistance Level – $8,200

 

Aayush Jindal

 

David Ogden – Http://markethive.com/david-ogden

Ripple CEO – Bitcoin or XRP will not replace any currencies for the time being

Brad Garlinghouse, CEO of Ripple, does not believe that Bitcoin, XRP or other cryptocurrencies will replace local currencies such as the dollar, the euro or the Chinese yuan. The environmental conditions were in his view not yet ready to be suitable for the "masses".

Garlinghouse describes in an interview to "The Economic Club of New York" that Bitcoin or XRP will not serve in the next period as a replacement for classic Fiat currencies. He sees the use cases for the practice mainly in cross-border payments justified, as crypto currencies in this area are clearly superior to traditional Fiat currencies.

He also states that in the near future, people will not pay for goods in the supermarket or services with digital assets (freely translated):

XRP, in my opinion, and really every crypto – I do not think the use case is a consumer use case today. I imagine a certain percentage of the people in this room stopped by Starbucks before they came this morning. And you had no problems paying.

You used your Visa card. Maybe you had dollars in your pocket, I do not know. But it worked. People will not adopt a new thing unless it helps you in some way.

Cryptocurrencies could be used in some third world countries that lack access to finance. Above all else, cryptocurrencies could solve the problem of the different valency of fiat currencies (freely translated):

There are markets that have already lost control of their currency where the transaction cost for a Visa transaction is not 150 basis points or 200 basis points. There are 800 basis points.

Garlinghouse sees in it, among other things, the current developments of Facebook's own project Libra justified. Facebook has portrayed Libra as a kind of fiat currency in its white paper, which of course is a thorn in the side of many governments worldwide. Nevertheless, the crypto payment platforms are growing worldwide, which ensure a steadily increasing adaptation of Bitcoin and Co. There are many apps, such as Flexa or Wirecard, that enable you to pay for goods or services in participating shops within a few clicks within the app.

Ripple is currently pushing ahead with the further adoption and expansion of XRP through partnerships with wallet provider BRD and startup Vega. This is intended to reach new users and develop markets. Although the Vega platform is currently still under construction, it offers access to the wholesale market, which is worth several trillion worldwide. Ripple seeks to be present in key markets early through smart investment decisions and has a strong network of affiliates. It remains to be seen whether XRP can compete with other rivals such as Stellar Lumens .

By

Marcel Knobloch

18th October 2019

David Ogden – Http://markethive.com/david-ogden

Bitcoin and Cryptocurrencies Dominated by Sellers

In the last 24 hours, cryptocurrencies dropped 2.5% in market capitalization, moving this value to $216.05 billion with a 24H traded volume of $26.2 billion (+1.15%). ALGO (-6.39), Bitcoin SV (-6.3), Tron(-6.03)Litecoin (-5.03%) were the most sold cryptos. The exceptions were Monero (6.27%), Dodge Coin (5.73), and XEM (8%). The best performers among tokens were SNX (16.1%), and MOF (15.66%).

The Market capitalization chart shows that the heaviest selling happened at 06 p.m. on Monday and since then it has recovered slightly,

Market cap

Hot News

Market Capitalization

Telegram informed investors the launch of TON, its own cryptocurrency project, will be delayed, and thus, investors could get their funds back according to the original deal. Telegram wants to move the deadline from October 30 to April 30, 2020.

US Congressman Warren Davidson, a member of the US House of representatives from Ohio, said in an interview by Noded bitcoin Podcast that Facebook should adopt Bitcoin and drop their Libra project. He explained that Cash App was able to go unnoticed by merely integrating bitcoin into their platform instead of creating a brand new coin. He also suggests that Libra could be treated as security since it can be manipulated by a central authority.

Venezuelan president Nicolás Maduro stated its government is delivering a total of USD 543,700 in the oil-backed Petro cryptocurrency to each of the 23 states on a bimonthly basis. He also said that additional resources would be handed to local governments next month. This might the first time a government is officially founding its institutions using a state-run cryptocurrency.

 

Technical Analysis

Bitcoin

Bitcoin continued descending during the last 24 hours, and its price is now slightly below $8,000. The main drop happened before 6.pm. Then, the price made a timid recovery, although the current price action suggests more drops (lower highs and lower lows). The price continues moving below the -1SD Bollinger line and the MACD is in its bearish phase.

The levels to watch are:

Supports 4H Pivot Resistances

S3: $7,500 8,200 R3: $9,320

S2: $7,700 R2: $8,700

S1: $7,900 R1: $8,530

Ethereum

Ethereum followed a quite similar path to the Bitcoin. After breaking the triangular formation to the downside, the price kept moving down to touch $172 and then slightly bounce, as the price went to the oversold region. MACD continues being bearish, and the price moves below the -1SD Bollinger line.

Supports 4H pivot: Resistances

S3 $160 180 R3 202

S2 $167 R2 196

S1 $168 R1 186

Ripple

Ripple reached the corrective target we devised yesterday and is sitting on the ascending trendline and its 50-period moving average. MACD is still in it bearish phase, and although XRP did a modest correction compared to other cryptos, there is still a chance for more drops, as the price is below the -1SD Bollinger level and, as mentioned MACD still show selling pressure.

Supports Pivot: Resistances

S3 $0.24 $0.27 R3 $0.33

S2 $0.25 R2 $0.30

S1 $0.26 R1 $0.285

 

 

David Ogden – Http://markethive.com/david-ogden