Why Bitcoin Analysts See This Dip As Incredible Opportunity To Buy
Today’s Bitcoin price drop below USD $7k has taken some by surprise, yet it is causing little concern among analysts, In fact, the mood is optimistic, as most believe that the market will recover quickly, with the flagship crypto currency soon surging much higher.
Today’s market dip has not caused a notable shift in Bitcoin’s general upward movement since mid-March. In fact, a look at the chart from CoinMarketCap shows that drops of $200-400 have taken place several times in the past few weeks, only to rebound relatively quickly. Thus, if the pattern is to hold Bitcoin would need to hover around $6,900 for a day or two before coming back up.
There are some analysts that seem to think that prices may remain low for a few days, yet most seem to think that the price will not go much lower, if at all. For example, Pierre has tweeted:
Not excluding a simple bearish continuation from here after a few more hours of consolidation @ current level, giving time for H1/H4 to reset a bit more, and maybe even taking 6,800-6,850 lows before a real bounce.
I guess that’s it, I hope it helps. Cheers mates, later.
— Pierre 🌐 (@pierre_crypt0) April 10, 2020
Although those that were hoping that the price would remain above $7k may be disappointed, the mood is that there is little concern for a major drop.
Analysts of all types remain very firm in their assertions that Bitcoin stands to gain significantly due to a range of upcoming events. For example, much discussed block reward halving will re-shape the market, making existing Bitcoins more valuable. It seems as if everyone agrees that this one simple change in the protocol will have a major market impact.
Also, fear continues to grow that the U.S. Federal Reserve will continue to devalue the Dollar in its attempt to alleviate the growing economic crisis. In fact, few now believe that the Fed will stop at just 2.3 trillion. Many point to the fact that this amount is a mere drop in the bucket when compared to other government liabilities such as the national debt and unfunded entitlements.
Meltem Demirors, Chief Strategy Officer at CoinShares, has tweeted:
wait until @Bitcoin discovers the additional $120T of unfunded and underfunded social security, Medicare, and Medicaid liabilities
— Meltem Demirors (@Melt_Dem) April 8, 2020
The simple implication is that before long the government will be forced to print an exponentially greater amount of cash in order to pay for these programs. Such a move will cause much higher inflation, and all but certainly drive more Americans into crypto investment. Bitcoin would clearly benefit most.
Thus, there is a growing sense that Bitcoin presently sits at what could be a bargain-basement price. Should the current patterns continue, now is clearly the time to invest.
Do you think this current dip is a good Bitcoin buying opportunity? Add your thoughts below!
Bitcoin’s open interest skyrocketing indicates immense volatility may be imminent
Bitcoin has seen some notable overnight volatility, with the benchmark cryptocurrency’s buyers struggling to maintain the support that had been established within the lower $7,000 region.
The decline below this support has marked a bearish resolution to the consolidation phase that the crypto had been caught within, with this potentially doing some technical damage to the cryptocurrency’s market structure.
One interesting phenomenon that has occurred in tandem with this price decline is a major upswing in the crypto’s open interest, which is an indicator that is often looked towards for insight into whether or not a big movement is imminent.
In general, the past several days have been positive for Bitcoin, with the benchmark cryptocurrency climbing from lows of $6,600 to highs of $7,500 – which is around the place at which the crypto met insurmountable resistance.
The rejection at this level led Bitcoin to enter a bout of sideways trading within the lower-$7,000 region, with strong support being established around $7,100.
Now that this support has been lost, its next key support level exists around $6,800, with this level slowing BTC’s descent overnight.
One factor that could contribute to this volatility in the days and weeks ahead is the fact that Bitcoin’s open interest on popular crypto trading platform BitMEX has ballooned over the past day, according to data from Skew.
This number, which indicates the dollar-value of the open positions on the platform, tends to impact Bitcoin’s price action in two primary ways.
Firstly, it indicates that retail traders are anticipating the asset to make a large movement, with this number declining during periods of consolidation and climbing when the crypto shows signs of a big movement being imminent.
Climbing open interest also perpetuates volatility, as the larger quantity of positions can help magnify both upside and downside movements.
One factor to consider while pondering Bitcoin’s mid-term outlook is the fact that this latest decline marked a downside break of an ascending trendline that has been leading BTC upwards in the time since its capitulatory decline to lows of $3,800 on March 12th.
One popular pseudonymous trader named CryptoBirb on Twitter pointed to the break below this trendline in a recent tweet, bearishly noting that it opens the gates for a downside movement to $5,300.
If BTC loses the support at $6,800 and begins reeling lower, it is possible that it will see an intense mid-term downtrend that is fueled by the crypto’s rising open interest.
Bitcoin, currently ranked #1 by market cap, is down 5.59% over the past 24 hours. BTC has a market cap of $125.84B with a 24 hour volume of $42.09B.
Chart by CryptoCompare
Bitcoin is down 5.59% over the past 24 hours.
Cover Photo by Torsten Dederichs on Unsplash
Get our daily newsletter containing the top blockchain stories and crypto analysis straight to your inbox.
Cole is a freelance journalist and university student studying philosophy. He focuses primarily on covering cryptocurrency and blockchain-related news. He owns a non-life-changing sum of Bitcoin and enjoys day trading.
Commitment to Transparency: The author of this article is invested and/or has an interest in one or more assets discussed in this post. CryptoSlate does not endorse any project or asset that may be mentioned or linked to in this article. Please take that into consideration when evaluating the content within this article.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
Author: AuthorCole Petersen Twitter LinkedIn Journalist @ CryptoSlate
Evidence Shows Politicians and Wall Street CEOs Expected the Market Crash Well Before Covid-19
ICO Crackdown: 11 Class-Action Lawsuits Filed Against Cryptocurrency Companies
2 American Banks Have Failed Since Coronavirus Started Spreading in the US
Blind Faith in S2F Models: Analysts Question Measuring Bitcoin’s Price With Stock-to-Flow
Sweden’s ‘Lagom’ Response to Coronavirus: No Masks, Keep the Economy Going With a ‘No Limit’ Printing Press
5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums
Virgin Galactic’s Chamath Palihapitiya: Bitcoin Could Go to $1 Million, Everybody Should Own Some
Get Ready for the Bitcoin Halving – Here Are 9 Countdown Clocks You Can Monitor
Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments
The Bitcoin Cash Network’s Block Reward Officially Halved – Block 630,000 Mined
Novogratz: We Have a Money-Printing Orgy Going on, Amazing Environment to Buy Bitcoin
New Wrapped Bitcoin Platform Allows You to Transact in BTC Using Tezos
BTC to INR: P2P Bitcoin Marketplaces Growing in India
Q1 Crypto Trade Volume Jumps 61%, Bitcoin’s Price Performance Trumps Equity and Gold Markets
Hundreds of Darknet Listings Are Selling Masks and PPE Products for Bitcoin
The Bitcoin Fund Completes IPO, Now Trading on Canada’s Leading Stock Exchange
Developer Launches Noncustodial Bitcoin Cash-Powered Authorization Platform
Bitcoin’s Third Halving: Survey Shows 50% of Miners Expect a Price Increase
Bitcoin Going Industrial: New York-Based Natural Gas Provider Sells Fully Compliant ‘Hashpower Contract’
Bitcoin Evolution: Wanna Make $1 Million in 2 Months Like Prince Harry and Meghan Markle? It’s a Scam
Rich Dad Poor Dad Author Robert Kiyosaki: Dollar Is Dying, Buy Bitcoin
Bitcoin Price Forecast: BTC/USD bulls attempt to fight back after heavily bearish Friday
BTC/USD bulls are attempting a comeback in the early hours of Saturday after taking the price up from $6,873.74 to $6,924.50. This followed an intensely bearish Friday wherein BTC/USD crashed from $7,296.25 to $6,873.74. In the process, the price managed to plunge below the upward trending line and the $7,000-level. BTC/USD is presently sandwiched between the SMA 50 and SMA 200 curves. The bulls need to gain enough momentum to push the price up to $7,280.86 to trend above the SMA 50 and the upward trending line. After this Friday’s bearish price action, the Elliott Oscillator has had a red session following 12 straight green sessions.
TOP 5 for Today: 10 April 2020 – Bitcoin & Crypto News
Predictions for the top 3 cryptocurrencies, massive XRP price surge, BSV’s botched halving, Trump’s support for airline bailout, and Bitfinex’s new lawsuit.
The end of the workweek has come, and with it, the beginning of Easter weekend. The Dow Jones Industrial Average (DJIA) and the S&P 500 were in the green, while the NASDAQ Composite remained unchanged. Economists say the United States is in a short recession, but consumers are expected to continue spending. With the coronavirus still in the headlines, Los Angeles County says that the stay-at-home and business-closure orders will be extended to May 15.
As for news within the cryptocurrency sphere, some of U.Today’s major headlines include price predictions for Bitcoin (BTC), Ethereum (ETH), and XRP, liquidity indexes for XRP skyrocket, Bitcoin SV (BSV) miners flocking to BTC after botched halving, and a new class-action lawsuit against Bitfinex.
U.Today’s most recent price prediction for Ethereum (ETH) is justified as the chief altcoin dropped below the expected $160 mark. Even though the rate for ETH has dropped more than 7%, it is not the bottom of the ongoing decline. The Relative Strength Index (RSI) has not moved closer to oversold zone, and the bottom of the rising channel has not been tested yet. The nearest support zone is $147.
XRP has lost much less as compared to ETH – 5.68%. As for a price forecast, XRP is more bearish than BTC and ETH. At its current levels, there is no liquidity and the trading volume continues to drop. One possible scenario is finding support at $0.18, where the price could remain relatively unchanged for a moment.
The XRP Liquidity Indexes in Australia (XRP/AUD, BTC Markets), the Philippines (XRP/PHP, Coins.ph), and Mexico (XRP/MXN, Bisto) have a skyrocketed, hitting a new all-time high (ATH) after reaching new highs earlier today. Below are the new ATHs for the three corridors:
With XRP trading between $0.18 and $0.19, some in the community are expecting the coin to break the $0.20 barrier and continue its upward swing. Twitter user @RobertArtRobArt says that XRP needs to break the $0.24 mark for this begin.
Otherwise, @RobertArtRobArt says that he expects XRP to drop below $0.10.
According to data provided by Coin Dance, the hash rates for both Bitcoin Cash (BCH) and Bitcoin SV (BSV) dropped below 1 EH per second. This comes on the heels of two underwhelming reward halvings that resulted in a mass exodus of miners to Bitcoin (BTC).
As of now, BTC is responsible for almost 99% of the total computing power, which it shares with the other two aforementioned coins. With the BTC halving ready to occur on May 13, this cryptocurrency is now more profitable to mine as compared to BCH and BSV.
However, this will put smaller miners in a tight spot as they will be forced out of the network due to low prices.
U.S. President Donald Trump recently expressed his support for a $50 billion bailout for the airlines. While the President says that the bailout “is not good”, he thinks that the it is necessary to save an industry that’s been hammered by the coronavirus pandemic.
With a significant drop in passenger traffic, the ‘Big Four” domestic airlines (American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines) are asking for a deal worth about $50 billion to help deal with the fallout from the coronavirus pandemic.
However, many are calling for the major airlines to fail as they spent a majority of their profits on stock buybacks. Venture capitalist Chamath Palihapitiya, recently made headlines on CNBC by urging the Federal Reserve to bail out ordinary Americans that are struggling to make ends meat and let the billionaires get “wiped out”.
Stuart Hoegner, General Counsel of Bitfinex and Editor of the bestselling book The Law of Bitcoin, shared updates on the class-action lawsuit brought against Bitfinex. Attorneys that recently filed the lawsuit against Bitfinex and Tether have asked the court for more time to ‘amend’ their documents but have decided to spend it another way.
Instead of amending the claims against Bitfinex, Roche Freedman has filed new lawsuits against other crypto trading ecosystems, including Binance, BitMEX, Block.one, TRON Foundation, and Status. According to the claims, the blockchain teams issued unregistered securities in the form of ICO tokens and had the exchanges sell them.
Plaintiffs mentioned in the new complaints have now decided to sue in U.S. court. Hoegner hopes that the attorneys understand that the plaintiffs understand that ‘there will never be a payday’ from Bitfinex or Tether.
Author: Sat, 04/11/2020 – 02:27