correction

Jun 26 2021

Bitcoin Price Prediction: BTC/USD Creeps toward $31,000

Bitcoin Price Prediction – June 25

The Bitcoin price moves below $32,000 as the king coin is likely to climb steadily with a few downward moves.

BTC/USD Long-term Trend: Ranging (Daily Chart)

Key levels:

Resistance Levels: $37,500, $39,500, $41,500

Support Levels: $26,500, $24,500, $22,500

In recent days, BTC/USD has been turbulent keeping its price above the 9-day and 21-day moving averages. During the European session today, the Bitcoin price rises sharply by moving above the resistance level of $32,500. Meanwhile, the first digital asset exceeded this level before correcting lower. At the moment, the price is declining and remains below the 21-day moving average at $31,426.

Bitcoin Price Prediction: What is the Next Direction?

A crucial uptrend could form above the 9-day and 21-day MAs, with support close to $30,000 on the daily chart. However, if the decline occurs below this barrier, the price could extend its downward correction to the $28,000 level and any other loss could possibly push the Bitcoin price to the support level of $26,000.

Looking at the daily chart, the Bitcoin price touches the daily low of $30,173 and a further drop may cause the market to reach the critical supports at $26,500, $24,500, and $22,500. In other words, if the market were to rebound, traders could see the next buying pressure towards the resistance levels of $37,600, $39,500, and $41,500. Nevertheless, BTC still ranging on the daily chart, with the Relative Strength Index (14) moving sideways.

BTC/USD Medium-Term Trend: Bearish (4H Chart)

Looking at the 4-hour chart, the resistance at the $32,000 was too heavy for the bulls to overcome. So the price is seriously struggling in a consolidation mode, which has made BTC remain indecisive over the past few hours now. The resistance levels to watch are 34,000 and above.

However, the Bitcoin price is still roaming around $31,755 and we can see that the bullish supply has been slowly turning heavy in the market, while the bears are trying to drag the price below $32,000 support. Meanwhile, the $30,200 and below may come into play if BTC breaks the mentioned support. The technical indicator Relative Strength Index (14) is moving to cross below the 40-level, suggesting more bearish signals.

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Bitcoin Price Prediction: BTC/USD Creeps toward $31,000

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Jun 22 2021

Dogecoin Price Hits $0.176 after a 22% Dip – Where to Buy DOGE

Altcoins are having a hard time recovering, with the majority of them deep in the red zone. One of the worst-hit tokens is dogecoin, which has lost 22% in the past 24 hours.

In the past month, DOGE has lost nearly half of its value. However, those who invested at the beginning of the year are still in profit since the token’s current price is almost 7,000% higher than what the coin was trading at the beginning of the year.

At the time of writing, DOGE had sunk below critical $0.20 support levels and traded at $0.176 on major exchanges.

Dogecoin Price Analysis

It seems that DOGE’s glorious days may be coming to an end. The meme coin gained popularity after Elon Musk affiliated himself with it and promoted it on his Twitter account. However, Musk is yet to come to the rescue of DOGE this time round. His silence comes weeks after a threatening video by the Anonymous hacker group was released, criticizing him for misusing his power over the crypto market.

DOGE Price Analysis 22 June 2021 — Source: TradingView

The chart above shows how dogecoin has been performing this month. The highest downtrend for the token started this week, as can be seen above, which could be attributed to the lack of support from the broader crypto market. After BTC sunk to almost $31,000 at the beginning of the week, altcoins followed suit and dogecoin was not spared.

Dogecoin needs to push past $0.20 to prevent a further retreat. Currently, the meme coin is on the verge of losing its coveted position among the top ten cryptocurrencies. Losing its space could be devastating for the token.

Dogecoin holders are urging Elon Musk to step in and save the meme coin from any further turmoil. However, his silence on the matter could indicate that the billionaire is keeping his sentiments about the crypto market to himself ever since he was accused of manipulating the market and misusing his power in the sector. However, not all is lost, and we may see the CEO tweeting about his favourite coin soon.

The current price movement could be because of a market correction, given the coin’s massive gains. However, it is worth noting that DOGE’s price gains merely resulted from investor demand. If the token gains practical adoption for use in the real world, such as in global financial systems, its value will definitely shoot.

Dogecoin has a strong community of fans compared to other cryptocurrencies, which is one of DOGE’s strengths that will help it with its long-term value. Due to its growing fan base, dogecoin has been accepted as a payment method for Wag, a dog-walking app. An increase in use-cases for DOGE will boost demand and hence value.

How to Buy DOGE

To purchase dogecoin, you need to create an account on a crypto exchange. One of the exchanges that support DOGE is eToro. The exchange is highly secure and reliable. Besides, its trading fees are highly competitive, and it offers a wide array of outstanding features for new investors. In addition, the exchange is among the few that offer copy trading, and if you have never traded crypto before, the exchange will provide you with a demo account where you can learn.

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Dogecoin Price Hits $0.176 after a 22% Dip – Where to Buy DOGE

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Jun 13 2021

Top 5 cryptocurrencies to watch this week: BTC, AAVE, KSM, ALGO, TFUEL

Bitcoin’s (BTC) price continues to be range-bound between $30,000 and $40,000 level for the past few days, which is not necessarily a bearish sign.

Generally, after a sharp fall, the price tends to consolidate as the asset transfers from weaker hands to stronger hands. After the transition is complete, the asset breaks out and starts a new uptrend. Usually, the longer the price consolidates in a range, the stronger the next trending move will be.

Bloomberg Intelligence senior commodity strategist Mike McGlone said on Saturday that Bitcoin’s declining supply was a positive sign, which could act as a “bullish ace” for its move higher “if past patterns hold.”

*Crypto market data daily view. Source:* *Coin360*

Yoni Assia, CEO of eToro, also told Cointelegraph that Bitcoin could see a sharp rise “over the next three to five years, as there are still 5 billion people in the world that basically don’t have good local currency.”

Therefore, investors should not be discouraged by the muted price action in the short term. Bitcoin’s fundamentals remain strong and are likely to result in a new uptrend in the future.

As crypto markets consolidate, let’s analyze the charts of the top-5 cryptocurrencies that may outperform in the next few days.

BTC/USDT

Bitcoin turned down from the resistance line of the descending triangle on Jan. 12 and broke below the 20-day exponential moving average ($36,586). This suggests that the bears are aggressively defending the resistance line.

The longer the price stays below the 20-day EMA, the greater the chances of a drop to the lower levels. If bears sink the price below $34,600, the BTC/USDT pair could drop to $33,400 and then to $31,000.

A break and close below $31,000 will complete a descending triangle pattern, which has a target objective at $19,549. However, it is unlikely to be a straight drop to the lower levels because the bulls will attempt to stall the decline in the $31,000 to $28,000 support zone.

This negative view will invalidate if the price continues to move up and rises above the resistance line of the triangle. Such a move could open the gates for a rise to the 50-day simple moving average ($44,709), which is again likely to act as a stiff resistance.

A break above the 50-day SMA will suggest that the correction could be over and the bulls will gradually try to start a new up-move.

*BTC/USDT 4-hour chart. Source:* *TradingView*

The moving averages on the 4-hour chart have been crossi each other and the relative strength index (RSI) is just above the midpoint, indicating that bulls are trying to make a comeback.

A breakout and close above the resistance line of the triangle will signal that demand exceeds supply. If the bulls sustain the price above the triangle, a new up-move could begin.

Alternatively, if the price turns down from the resistance line and breaks below $34,000, it could signal a minor advantage to the bears. That could pull the price down to the critical support at $31,000. A bounce off this support will suggest accumulation at lower levels and that could keep the pair inside the triangle for some more time.

AAVE/USDT

Aave is trading inside a large range between $280 and $581.67 for the past few months. The bulls have successfully defended the support of the range on five previous occasions, hence the buyers are likely to buy the dip once again.

If the price rebounds off the current level with strength, it will suggest that the bulls continue to accumulate on dips. The buyers will then try to push the price above the 20-day EMA ($344). If they succeed, the AAVE/USDT pair could rise to the 50-day SMA ($414), which may act as a stiff hurdle.

If the price turns down from the 50-day SMA, the pair could consolidate between $280 and $414 for a few days. On the contrary, a break above the 50-day SMA will clear the path for a northward march toward $581.67.

This positive view will invalidate if the price turns down from the 20-day EMA and breaks below the $280 support. That will embolden the bears who will then try to pull the price down to $208.09 and then to $160.

*AAVE/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bears had pulled the price below $280 but they are struggling to sustain the lower levels. However, the moving averages are sloping down and the RSI is in the negative zone, indicating advantage to the bears.

If the price turns down from the current level and breaks below $266.68, the pair could start its downward journey. This negative view will invalidate if the bulls push the price above the downtrend line. Such a move will suggest the correction is over and the pair could then rise to $500.

KSM/USDT

Kusama (KSM) has been witnessing volatile moves in the past few days. Although the bulls pushed the price above the $480 overhead resistance on June 9, they could not sustain the higher levels and the price dipped back below the level on June 10. This shows that bears are selling on rallies.

However, the buyers have not allowed the price to break below the 20-day EMA ($388). This suggests that the sentiment is turning positive as the bulls are buying the dips to the 20-day EMA.

The rising 20-day EMA and the RSI near the midpoint indicate a minor advantage to the bulls. The buyers will now make one more attempt to push the price above $480. If they succeed, the KSM/USD pair could rally to $537 and then retest the all-time high at 625.

This positive view will invalidate if the price turns down from the current level or the overhead resistance and breaks below $360. That could pull the price down to $280.

*KSM/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bulls are trying to defend the trendline support. However, the 20-EMA has turned down and the RSI is in the negative zone, indicating the bears have the upper hand.

If the sellers sink the price below $380, the pair could drop to $342. A break below this support could result in a decline to $280.

This negative view will invalidate if the bulls can push the price above $429. That could attract buying, pushing the pair to $480.

ALGO/USDT

Algorand (ALGO) bounced off the trendline on June 12 and rose above the 20-day EMA ($0.97), which suggests the bulls are buying on dips. The flattish 20-day EMA and the RSI near the midpoint suggest the selling pressure has reduced.

The price action of the past few days has formed an ascending triangle pattern, which will complete on a breakout and close above $1.15. If the bulls manage to sustain the price above $1.15, the ALGO/USDT pair could rally to the target objective at $1.63.

Contrary to this assumption, if the price turns down from $1.15, the pair may extend its stay inside the triangle for a few more days. A breakdown and close below the trendline will nullify the bullish view and open the gates for a drop to $0.80 and then $0.67.

*ALGO/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the bulls are attempting to push the price above the downtrend line. If they can sustain the breakout, the pair could rise to $1.15. A breakout and close above this resistance could start a new uptrend.

Conversely, if the price turns down from the current level and breaks below the moving averages, the bears will make one more attempt to sink the price below the trendline. If they succeed, it will signal the start of a deeper correction.

TFUEL/USDT

Theta Fuel (TFUEL) soared to a new all-time high at $0.679 on June 9 but the bulls could not sustain the higher levels as seen from the long wick on the day’s candlestick. That was followed by a sharp pullback to the 20-day EMA ($0.41) on June 12.

The strong rebound off the 20-day EMA shows the sentiment is positive and traders are aggressively buying on dips. The bulls will now try to push the price to the all-time high where they are likely to encounter stiff resistance from the bears.

If the price turns down from the all-time high, the bears will make one more attempt to pull the price below the 20-day EMA. If they succeed, it will suggest the start of a deeper correction.

Alternatively, if buyers propel the price above the all-time high, the TFUEL/USDT pair could resume the uptrend, with the next target objective at $0.85 and then $1.

*TFUEL/USDT 4-hour chart. Source:* *TradingView*

The 4-hour chart shows the pair rebounded strongly off the $0.40 support, which suggests accumulation at lower levels. However, the relief rally is facing resistance just below the 61.8% Fibonacci retracement level at $0.57.

This suggests that the bears have not given up yet and are selling on rallies. If the price dips below the 20-EMA, the bears will try to pull the price down to $0.40. If that happens, the pair may consolidate between these two levels for a few days.

Alternatively, if the price rebounds off the 20-EMA, it will indicate the sentiment is positive and the bulls are not waiting for a deeper fall to buy. That will increase the possibility of a break above $0.57. The pair could then rise to retest the all-time high.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Top 5 cryptocurrencies to watch this week: BTC, AAVE, KSM, ALGO, TFUEL

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Jun 12 2021

Here’s how Bitcoin’s impending death cross could be a contrarian buy signal

Bitcoin’s (BTC) succession of sharp corrections from its all-time high at $64,900 has turned investor sentiment negative, at least for the short-term. While some analysts believe the bottom may have been hit, others are warning of a further fall due to the “Death Cross” pattern that, at the time of writing, is on the verge of completion.

For new traders, the name death cross itself brings a lot of negativity and a feeling of impending doom. This sentiment can trigger selling panics, especially if the market has already been going through a bear phase prior to the pattern being spotted.

However, is a death cross something to be feared or is it a crystal ball that gives traders insight on when a plunge is imminent?

Let’s find out with the help of a few examples.

What is a death cross and how accurate is it?

The death cross forms when a faster period moving average, usually the 50-day simple moving average, crosses below the longer-term moving average, generally the 200-day SMA.

*LTC/USD daily chart. Source:* *TradingView*

The crossover is bearish as it shows that the uptrend has reversed direction. Large institutional investors generally do not buy in a falling market until a bottom is confirmed. Due to this, buying dries up and investors holding positions rush to the exit due to panic, exacerbating the decline.

Before looking at a few death cross examples in the crypto markets, let’s see how the pattern has affected the S&P 500 index between 1929 to 2019. According to Dorsey, Wright & Associates, LLC, the average fall after the formation of the death cross is 12.57% and the median fall is much lesser at 7.75%.

However, if only the post-1950 period is considered, the average fall is less than 10.37% and the median is at 5.38%.

While those figures are not startling, especially for volatility-accustomed crypto traders, the bearish convergence of these two moving averages should not be taken lightly.

History shows that the death cross has resulted in a few instances of massive declines in the U.S. stock market indices.

After the death cross on June 19, 1930, the S&P 500 plummeted 78.84% before bottoming out on Sep. 15, 1932. The next terrible death cross came with a 53.44% correction that occurred from Dec. 19, 2007, to June 17, 2009.

This shows how in select instances, the death cross has been able to predict a sharp correction. However, two sharp declines of over 50% in a 90-year history suggests the pattern is not reliable enough to instil instant fear in traders.

Recent Bitcoin death crosses

As cryptocurrencies are still a nascent market, the available data is limited. Let’s review a few instances of the death cross and how it has affected Bitcoin.

*BTC/USD daily chart. Source:* *TradingView*

The most recent death cross occurred on March 26, 2020, when the BTC/USD pair closed at $6,758.18. However, this death cross turned out to be an excellent contrarian buy signal as the pair had already formed a bottom2 weeks back at $3,858 on March 13.

Before that, the pair had formed a death cross on Oct. 26, 2019, when the price closed at $9,259.78. By then, the pair had already corrected 33% from the high at $13,868.44 made on June 26, 2019.

After the cross, the pair bottomed out at $6,430 on Dec. 18, 2019, suffering a further 30% fall. From the high of $13,868.44 to the low at $6,430, the total decline was roughly 53%.

In another scenario, Bitcoin’s roaring bull market topped out at $19,891.99 on Dec. 17, 2017, and the death cross formed on March 30, 2018, when the pair closed at $6,848.01. By then, the pair had already corrected over 65% from the then all-time high.

Thereafter, the selling continued and the bear market bottom formed at $3,128.89 on Dec. 15, 2018. This meant a further fall of about 54% from the death cross and a total drawdown of 84% from the all-time high.

The above instances show how the death cross occurs late in the bear market cycle and investors who wait for the pattern to form give a lot of profits back to the market. At the same time, initiating bearish bets may work for short-term traders but could prove detrimental for long-term investors.

Key takeaways

The examples show how the death cross is a lagging pattern, which forms when a large part of the decline has already occurred. Typically, long-term investors don’t need to panic if they spot the death cross on the daily charts but it is a signal to be more attentive to and perhaps prepare one’s portfolio for positioning for a variety of unanticipated outcomes.

Death crosses can also, at times, be used as a contrarian signal so when they are spotted traders should look for other indications of the chart to spot a possible bottom.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Here’s how Bitcoin’s impending death cross could be a contrarian buy signal

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Jun 05 2021

Why Bitcoin’s next breakout may not be an altcoin season signal

On April 14, Bitcoin (BTC) reached a $64,900 all-time high after accumulating 124.5% gains in 2021. However, a 27.5% correction followed over the next eleven days, marking a $47,000 local bottom.

The popular Crypto Fear and Greed Index reached its lowest level in 12 months on April 25, signaling that investors were closer to “extreme fear,” which was a complete reversal from the “extreme greed” level seen during the Bitcoin rally above $60,000.

This downward move from April 14 to 25 wiped out $200 billion from the altcoin market capitalization. Still, the recovery that followed could serve as a guide on what to expect when Bitcoin finally manages to exit the sub-$40,000 level.

*Bitcoin price in USD, Coinbase. Source: TradingView*

Altcoins posted a similar trend, bottoming at $850 billion on April 22 but fully recovering to a record $1.34 trillion high on May 10. There is no guarantee that this pattern will repeat, but there is no better source of information than the recent market itself.

*Altcoin market capitalization, USD billion. Source: TradingView*

Cheaper is not always better

Many investors believe that altcoins consistently outperform when Bitcoin price takes off, but is that an absolute truth?

Although that has been the case in 2021, Bitcoin was the clear winner in the last quarter of 2020 as it surpassed the broader market by 110%. However, analyzing the winners from the late-April bull run could provide interesting insights on what to expect for the next rally.

*Top altcoin performances from April 22 to May 9. Source: CoinCodex*

Among the top-100 tokens, Ether Classic (ETC), Polygon (MATIC), Waves, and Fantom (FTM) were the clear winners. The winners were either scaling solutions or smart contract platforms, and the sector leader Ether (ETH) also outperformed the market.

80% of the worst performers were sub-$1 coins which is precisely the opposite of investors’ usual expectations. There’s a persistent myth that cheap, nominally-priced altcoins will excel during altcoin rallies, but that clearly was not the case.

*Worst performance from the top-100 altcoins between April 22 to May 9. Source: CoinCodex*

Timing the market is impossible

Unfortunately, there is no way to predict when the current correction will be over, and altcoins historically do not usually excel during bear trends. This means calling ‘alt season’ at the first sign of Bitcoin’s price recovery is an inaccurate strategy that can lead to financial ruin.

A general rule of thumb for an ‘alt season’ kick-off is two or three consecutive days of 30% or higher accumulated gains on cryptocurrencies with little-to-no development, including Dogecoin (DOGE), Litecoin (LTC), and Ether Classic (ETC).

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Why Bitcoin\’s next breakout may not be an altcoin season signal

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