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Bitcoin (BTC) Price Analysis – May 23

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Bitcoin (BTC) Price Analysis – May 23

Key resistance levels: $8500, $9000

Key support levels: $7000, $6600

Rising from the 2018 low at around the $3150 on Bitstamp, Bitcoin market had dramatically climbed in the past few months following the significant cross above the daily 50-day moving average (orange band) in mid-February.

The positive move started to reveal clearly as the price action continued to respect the prominent 50MA, which was and still acting as a support for the market. The rally became more noticeable after the April 2 surge in volatility above the 0.236 ($4381) Fib. level and the important 200-day MA (red band).

While the cryptocurrency traded above the 0.382 ($5400) Fib. level, Bitcoin’s price further surge to the 0.786 ($7268) Fib. level before a slight drop. Meanwhile, a golden cross was signaled on April 23 as the daily 50MA broke through the daily 200MA.

After closing bearish at around the $6950 on May 12, Bitcoin breached the 0.786 ($7268) fib. level to the current 2019 all-time high, posted around the $8400 level.

From this above price level, BTC slumped below the 0.618 ($6386) fib. level due to the bearish surge that hit $6100. With immediate response, the bulls reacted to the sudden drop as they pushed price back above the $7000 before double-topping price the $8400 last weekend.

Since the retest at $8400 level, Bitcoin has remained subdued in the past three days of trading due to low volatility. Looking at the daily RSI technical indicator, the market is reflected downward after reaching the extreme overbought condition. Although, BTC positive climb was clearly revealed on the indicator since December 2018.

As of now, the buyers appeared weak. If the bears can pull price below the $7000, we may see Bitcoin fall to around 0.5 ($5767) fib. level, testing the daily 50MA.

However, the overstretched market needs a healthy correction around the $4500, the April 2 surge level before fueling the next bull-run, which is likely around the $8500 and $9000. A possible correction may meet support at the 0.236 fib. level, sitting on the 200MA.

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Bitcoin Consumes More Power Annually Than Switzerland, A Study At Cambridge University Reveals

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Bitcoin Consumes More Power Annually Than Switzerland, A Study At Cambridge University Reveals

The recent price upheaval seen in cryptocurrencies has been the hot topic in the cryptocurrency community. Crypto traders and investors have had a rough couple of days as this volatile market keeps shifting by the day.

At press time though, most cryptocurrencies, led by bitcoin seem to have struck a purple patch as they are recording small gains over the last 24 hours.

However, at the University of Cambridge, a certain group of researchers have been busy developing an index that computes the amount of electricity used by the bitcoin network.

This online tool indicates that the bitcoin network consumes more electricity than Switzerland. This revelation has left many in shock. 

It is not the first time we’ve heard bitcoin and Switzerland in the same sentence. Not so long ago, a lot of conversations have sprung up concerning the correlation between the price of bitcoin and Swiss franc, Switzerland’s fiat currency. Now with the ongoing economic uncertainties, bitcoin has been recognized as a safe haven by investors alongside Swiss franc.

Bitcoin’s Energy Consumption Exceeds That of An Entire Nation

This time around, the conversation is centered on bitcoin’s electricity consumption. This research was prompted by concerns over the impact of bitcoin mining on the environment.

Cambridge Centre for Alternative Finance at the University of Cambridge developed an index known as Cambridge Bitcoin Electricity Consumption Index (CBECI) to calculate the amount of electricity that powers bitcoin in real-time then calculating annual power usage.

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The Crypto Whale that Triggered an 8.5% Dip in Bitcoin (BTC) Prices

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A Bitfinex investor staked a 20,000 bitcoins short order and gambled that BTC prices would slide in the near term. Within a fortnight, the BTC price dropped to $10, 765 from a whopping $11,900. After a span of a few hours, the valuation of the crypto market fell by over $20 billion.

Market experts have been wondering whether a quick upward recovery is even possible. Some analysts, like the incredible – Josh Rager were quite skeptical if the price of BTC went below $11, 500. Below this point could prompt even a further drop from $10, 000.

Whale movements seem to be key influencers in the price movements of crypto markets. Where the effect on the market is not rapid sales of crypto assets (Let’s say BTC); the trivial effect is maybe a dip in the prices and market capitalization.

Minor corrections of Bitcoin markets has resulted in the declining power of top crypto assets against the pair of BTC/USD. Litecoin had recorded a 5% rise against the U.S dollar during the weekend but has dropped by 5%. Other crypto assets that have slid by an average of more than 5% include, Ethereum, EOS, Bitcoin cash, and Binance Coin.

Experts predict the 8.5% BTC drop was a result of technical factors. The large short contract created panic among many retail investors. As a result, they end up selling their assets and pulling down the market. It was such an abrupt drop, however, experts believe a bullish fundamental catalyst still exists around the market. This bullish expectation, they predict could improve sentiments within crypto markets. 

Analysts identified  a generally positive trend for BTC from factors such as; 

  • Opening of trading venues such as Bakkt and Fidelity in the second quarter of 2019
  • The gradual increase in retail investment
  • Rising institutional interest

Short term traders are however skeptical and remain wary of the declining trend of bitcoin prices. An extended correction of market insights forecast that crypto assets tend to follow the bitcoin movement. Therefore, illustrating intensified markets moving both to the upside and the downside.

However, some traders are very optimistic and have spotted positive medium-term indicators in the monthly BTC trend. Despite the fact, investors did not expect an abrupt pullback in the magnitude of 8.5%. Investors have faith that pullbacks are quite necessary for the stabilizing of crypto market foundations.

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