Volatility

Jun 23 2021

Bitcoin Price Prediction: BTC/USD Retests $34,800 High

Bitcoin Price Prediction – June 23

The Bitcoin bulls are working hard to nurture a bullish trend from the support at $31,708.

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

Key levels:

Resistance Levels: $40,000, $42,000, $44,000

Support Levels: $27,000, $25,000, $23,000

BTC/USD is currently trading 2.66% higher on the day after the coin opened the session at $32,538 and touches the daily high of $31,708. The first digital asset is moving within the short-term bullish trend amid low volatility. The current conditions imply that the price may stay range-bound during the next trading hours as the coin remains below the 9-day and 21-day moving averages. Meanwhile, the technical indicator Relative Strength Index (14) may start moving sideways.

Bitcoin Price Prediction: What to Expect from Bitcoin

At the opening of the market today, after testing the low of $31,708, the Bitcoin price is currently hovering at $33,402. Meanwhile, looking at the market movement, there is likely that the market may experience a quick retracement or sell-off just after touching the crucial $34,000, and traders may see $35,000 to $38,000 being tested again before pushing higher.

On the downside, if the market decides to fall, the Bitcoin price could fall towards the lower boundary of the channel at $28,000, and if that support fails to hold the sell-off, traders could see a further decline towards the support levels of $27,000, $25,000, and critically $23,000. All the same, any further bullish movement towards the upper boundary of the channel may hit the resistance levels at $40,000, $42,000, and $44,000.

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

When compares with the 4-hour chart, the Bitcoin price first touches the daily high of $34,881 but now dropping slightly. If the price continues to drop further and moves below the 9-day and 21-day moving averages, it could reach the nearest support levels at $30,500 and below.

Moreover, if the bulls push the coin above the upper boundary of the channel, the Bitcoin price may likely reach the potential resistance levels of $36,000 and above. Presently, the market may be indecisive as the technical indicator Relative Strength Index (14) indicator moves above 40-level.

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Bitcoin Price Prediction: BTC/USD Retests $34,800 High

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Jun 17 2021

Shanghai Man: Economist says El Salvador ‘on road to death’, salaries paid in e-CNY …

Our Man in Shanghai has refused to let recent regulations slow down the news coming from China. Enterprise blockchain, central bank digital currencies and start up projects continue to make a positive impact in a region hoping to grow economic value through technology.

Death march for El Salvador

The debate around El Salvador continued this week as media and officials tried to digest the adoption of Bitcoin as a national currency. JPMorgan stated that there was little economic benefit, and John Hopkins University professor Steve Hanke warned that the move could “completely collapse the economy” of the small nation. The former Bank of China deputy governor Wang Yongli took a very hardline approach, by stating that volatility and a lack of regulation or controls would put the economy on a “road to death.” This quote, appearing in state run media The Paper June 9, was an unusually direct and colorful statement on the issue.

Crypto innovation can be productive

Zhou Xiaoquan, a former governor of the People’s Bank of China, had a few positive things to say about cryptocurrency as a technology on June 11. He spoke at an economic summit in Shanghai and noted the cryptocurrency innovation in China can be productive when it serves the real economy. He also took some shots at other countries, stating that people would be mistaken if they thought other countries were taking the same approach towards building financial services. Zhou, who is one of the most often-quoted economists in the country, felt there was little emphasis on the relationship between financial services and economic value elsewhere in the world. Based on the wild displays at the Miami Bitcoin conference a few weeks ago, his position might be more sound than others would care to admit.

Paid in e-CNY

China’s e-CNY tests continued with the first reported mass payment of salaries in Xiong’an, a district near the capital Beijing. According to Cointelegraph, the pilot received support from a number of national banks and saw subcontractors paying workers their salaries from a digital wallet.

Industrial blockchain worth $22.6B

On June 3, a government organization issued a report entitled the China Industrial Blockchain Development Status and Trend Report. According to the report, in 2020, 222 industrial blockchain policies were issued, 12,059 new blockchain-related patent applications were approved, and 776 new blockchain enterprises were established. The report also claimed that the current market size of the industrial blockchain sector was around $22.6 billion U.S. dollars. Industrial blockchain is an area that China is eager to grab control in, leading to this explosive growth in recent years.

Only 5X the fun

Leading exchange Huobi surprised futures traders by limiting them to only 5x leverage on perpetual swaps and blocking new users from accessing the feature altogether. Futures trading, particularly highly-leveraged futures trading, had always been popular features on exchanges like OKEx and Huobi. It will be interesting to see whether these new decisions to limit risk will be damaging to these large exchanges that still somewhat adhere to regulator rules. It’s also possible that it’s a short-term solution in order to avoid scrutiny during periods of tighter control.

Futures of Singapore

While Huobi was tightening controls on futures traders, Singapore-based platform SynFutures was completing a Series A for $14 million. The round was led by Polychain Capital and included names like Framework Capital, Pantera Capital, Bybit, Kronos Research, WOO Ventures, Wintermute, and IOSG Ventures. SynFutures is creating a trustless derivatives market where users can take positions on assets or anything that has an accurate feed, including Bitcoin, the price of gold, or even the Bitcoin hashrate. What many people don’t know is that the SynFutures team is composed of members from Matrixport, a financial service app that was an offshoot of massive Chinese mining conglomerate Bitmain. Now you know the whole story!

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

Shanghai Man: Economist says El Salvador \’on road to death\’, salaries paid in e-CNY …

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Jun 12 2021

Bitcoin Price Prediction: BTC/USD Price Plummets Below $36,000

Bitcoin Price Prediction – June 12

The Bitcoin price is spreading the bearish move to areas just below $35,000 after numerous attempts to hold gains above $37,500.

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

Key levels:

Resistance Levels: $42,000, $44,000, $46,000

Support Levels: $30,000, $28,000, $26,000

BTC/USD falls below $37,448 as the largest cryptocurrency embarked on a support smashing exercise after failing to hold above $37,000 following a significant breakout in the last few days. Therefore, the bearish control is seen across the market with other major digital assets posting similar losses as they trade below the 9-day and 21-day moving averages.

Bitcoin Price Prediction: Can BTC Price Go Lower?

The Bitcoin price is trading at $38,825 with an intraday loss of 4.05%. The prevailing trend is bearish with expanding volatility. However, the first digital asset is currently consolidating in a bearish flag pattern. Meanwhile, a breakout in this pattern in the direction of the previous trend is expected to continue. In this case, BTC/USD is expected to drop and stay below 9-day and 21-day moving averages and could move towards the critical support levels at $30,000, $28,000, and $26,000.

However, if the Bitcoin price stays above the moving averages; the price could rise to $38,000 vital resistance. Therefore, a further bullish drive could push the price to $42,000, $44,000, and $46,000 resistance levels. The technical indicator Relative Strength Index (14) is moving below 45-level, which shows a possible more bearish momentum may continue to play out.

BTC/USD Medium – Term Trend: Ranging (4H Chart)

At the opening of the market today, the Bitcoin price first went up but dropped slightly within 24 hours, bringing its price from $37,448 to reach around $35,790. Should the price continue to drop below the 9-day and 21-day moving averages, it could reach the nearest support level at $33,000 and below.

However, should in case the bulls push the coin above the upper boundary of the channel, the Bitcoin price could reach the potential resistance level of $38,000 and above. Presently, the market may continue to move sideways or experience an uptrend as the Relative Strength Index (14) indicator moves above 45-level.

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Bitcoin Price Prediction: BTC/USD Price Plummets Below $36,000

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Jun 07 2021

Bitcoin price is fragile, but on-chain data points to fresh accumulation

The May 19 crypto market sell-off saw $1.2 trillion in value erased from the total market capitalization as the froth and excess leverage of over-hyped markets was quickly eliminated.

But similar to a forest fire, whose destructive power is essential to the rejuvenation of a forest’s ecosystem, dramatic market shake-outs are a vital part of the full life cycle of a developing market, as excesses that have accumulated are burned away and cleared in order to set the stage for a new round of growth.

According to data from Glassnode, the past month saw a “historically large decline” in on-chain activity, “transitioning rapidly from booming on-chain economies at ATH prices, to almost completely clear mempools and waning demand for transactions and settlement.”

This clearing of congestion helped address the rising cost of fees on both the Ethereum (ETH) and Bitcoin (BTC) networks which have now “returned to mid-2020 levels of around $3.50 to $4.50” after experiencing short term spikes as high as $60 in April and May but given the lingering price action from BTC and Ether, traders are also worried whether the market has shifted from bullish to bearish.

*Bitcoin vs. Ether average transaction fee. Source:* *Glassnode*

The drop in activity has resulted in a 65% decline in the total USD denominated transfer volume settled by the Bitcoin network and a 60% decrease in value transferred on Ethereum, marking the second largest declines for the networks behind the 80% drop for Bitcoin in 2017 and the 95% drop for Ethereum in 2018.

Long term holders accumulate

Although the on-chain activity paints a grim picture for some, as short-term holders were the hardest hit by the downturn, a closer look shows that long-term holders (LTH) have started accumulating again, a sign that the worst of the shake-out may have passed.

*Long-term holder net position change. Source:* *Glassnode*

As seen in the chart above, the supply held by long-term BTC holders has begun to accelerate upward following a period of distribution that happened as the price rallied from $10,000 to $64,000. This rising figure indicates that the “LTH supply is now in a firm uptrend,” and is similar to the trend seen during the “late 2017 bull and early 2018 bear.”

Glassnode said:

“This fractal describes the inflection point where LTHs stop spending, start re-accumulating and hodling what are now considered cheap coins.”

Further bullishness can be found in the fact that the amount of BTC currently held by LTHs is 2.3 million more than at the peak of 2017, indicating that the long-term view of these token holders is that the market is headed higher.

One final indication that the market may be consolidating in preparation for its next move higher can be found looking at the change in the liquid and illiquid supply of BTC over the past 6 months.

*Bitcoin liquid and highly liquid supply. Source:* *Glassnode*

As seen in the chart above, 160,700 BTC went from an illiquid state back into liquid circulation during the month of May, representing just 22% of the total supply that moved from liquid to illiquid since March 2020.

This means that 78% of the BTC acquired since then remains unspent, indicating an overall positive outlook by long-term holders.

While it’s impossible to be certain about the next steps for the cryptocurrency market thanks to factors like unpredictable volatility, erratic tweets from influencers and the rumors of surprise government crackdowns, on-chain data indicates a positive long-term outlook that should resume once the current shake-out and consolidation periods subside.

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, and you should conduct your own research when making a decision.

Bitcoin price is fragile, but on-chain data points to fresh accumulation

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Jun 02 2021

Ripple Price Prediction: XRP/USD Settles Above $1 as Price Consolidates

Ripple Price Prediction – June 2

For the past few days, the Ripple price has been unable to develop bullish momentum above the $1.20 resistance level.

XRP/USD Market

Key Levels:

Resistance levels: $1.28, $1.38, $1.48

Support levels: $0.70, $0.60, $0.50

XRP/USD is bullish as the market retraced to $0.96 support and currently prepares to move higher again. Therefore, we expect the Ripple price to move higher later today and push towards the $1.20 level. Although XRP/USD opened yesterday at $1.01 after a bearish closing price, since then, the market has moved sideways as the bulls prepare to rise. Therefore, we expect XRP/USD to rise to the next target at $1.20 in the next 24 hours.

Ripple Price Prediction: Next Direction for Ripple?

If the bulls manage to keep the Ripple price above the 21-day moving average; they may likely find the resistance levels of $1.28, $1.38, and $1.48. Meanwhile, if the market begins to experience the bearish movement, it may likely hit the nearest support below the 9-day and 21-day moving averages and a further drop could pull the market to $0.70, $0.60, and $0.50 supports. Meanwhile, the technical indicator Relative Strength Index (14) is slowly moving below the 50-level, suggesting sideways movement.

When compares with Bitcoin, Ripple’s price is still pointing down based on the technical indicator, although price movement around the 9-day and 21-day moving averages has remained intact. Therefore, if the selling pressure continues, the Ripple price volatility is likely to create a new low in the coming trading days.

At this time, the technical indicator Relative Strength Index (14) is hovering above the 50-level; Traders could continue to see negative market movement soon if the signal line crosses below the 50-level and can also expect close support at 2550 SAT if the market price dip below the lower boundary of the channel to reach critical support at 2200SAT and below.

However, when an upward movement occurs and confirms a breakout well above the 9-day and 21-day moving averages; Traders can confirm a bull run for the market, and the next resistance levels are located at 3300 SAT and above.

Ripple Price Prediction: XRP/USD Settles Above $1 as Price Consolidates

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