Bitcoin Price Could Collapse to $2,000 Based On Golden Ratio
Bitcoin price has failed to reclaim and hold above $7,000 and could retest lows set a month ago on Black Thursday.
However, if that recent low fails to hold, the first-ever cryptocurrency could fall to nearly $2,000 according to a mathematical figure that coincidentally is located at an untapped support level from past Bitcoin bull cycles.
After repeated attempts to push strongly above $7,000 and hold, bulls have now lost control over Bitcoin price action once again to bearish traders, hoping to short the cryptocurrency to new lows.
At the start of the year, Bitcoin price reached over $10,000, then in less than 48 hours plummeted to $3,800 on the day now known as Black Thursday – a day that set record-breaking collapses in the stock market, crypto, and much more.
The shocking selloff crushed hopes that Bitcoin’s halving would be a bullish event and caused even the most confident crypto investors to reconsider the asset class and give up on long-term valuation models.
Sentiment has now spent the longest stretch ever in extreme fear, all while Bitcoin price climbed above $7,000. But a failure to hold the level could push the asset back to retest recent lows, or perhaps even lower, according to math.
Many analysts believe that all future price movements can potentially be predicted using mathematics like geometry. But could the golden ratio be the key to timing Bitcoin’s elusive bear market bottom?
In trading, assets very often peak at or retrace to specific levels based on Fibonacci numbers, such as 0.382, 0.5, 0.618, and the golden ratio, 1.618. Nearly every peak in Bitcoin’s 2018 bear market peaked at 0.618, proving just how valid the theory can be.
According to the location of the golden ratio of 1.618, the psychological support level coinciding with the golden ratio puts Bitcoin price somewhere around $2,000 for the final bottom.
Interestingly, this level is also an untapped support level from the previous bull run – that took Bitcoin price to its all-time high of $20,000. The number is also a full 90% retrace from the all-time high, which is typical of past Bitcoin bull to bear market cycles.
It’s not fully understood as to why assets fall to these important mathematical ratios, but it remains a common strategy amongst crypto traders when planning entries or exits of positions.
If Bitcoin price does indeed fall to $2,000, given the fearful sentiment in the crypto space, few people are likely to buy the bottom, just like the last time it occurred at $3,200.
Then, trading volumes supported the idea that very few traders actually knife caught that bottom properly, also adding credence to the theory that “smart money” investors buy assets and “be greedy” when the market is fearful.
Author: Tony Spilotro
Tether Mints $120 Mln Worth of USDT. Bitcoin (BTC) Price Boost Incoming?
The Bitcoin (BTC) price spikes two percent as Tether prints $120 mln USDT to address future demand
Flagship stablecoin issuer Tether has minted $120 mln more of its USDT stablecoin to replenish its inventory, which means that it anticipates even more demand.
As explained by Tether and Bitfinex CTO Paolo Ardoino, the new batch of coins will be used for future issuance requests.
Tether, along with a batch of other stablecoins, has thrived during the coronavirus crisis, with its market cap recently surpassing $7 bln.
As reported by U.Today, USDT recently became the third-biggest cryptocurrency, edging out XRP, according to OnChainFX data.
After the March 12 market crash, investors rushed to fiat-pegged cryptocurrencies to hedge themselves against wild volatility. Since then, the stablecoin market has swelled to more than $8 bln (almost doubling in the span of two months).
The fact that billions worth of stablecoins are presumably waiting to enter the market is one of the bullish Bitcoin narratives as of now.
Because of a study conducted by finance professors John Griffin and Amin Shams, tongues have been waggling that Tether is an omnipotent force in the crypto industry that can manipulate the Bitcoin price at a whim.
This resulted in a class-action lawsuit against the company, but Tether vehemently denies the accusations thrown by its detractors.
While freshly minted USDT is yet no enter the market, its issuance recently coincided with a two percent price uptick. However, it is unclear whether it was the Tether news that painted BTC green.
However, the recent price increase might not be enough for Bitcoin to avoid a deeper pullback.
Trader Scott Melker claims that the leading cryptocurrency has to surge to $7,000 in order to be back in a bullish mode. Otherwise, a drop back to the $6,540 level seems likely.
Author: Tue, 04/21/2020 – 19:14
Google, Apple Card and Facebook’s Libra Want to Kill Bitcoin
Under the given conditions, Bitcoin continues gaining traction, therefore, Google, Apple, and Facebook need to find new revenue streams.
While Bitcoin is gaining traction even despite the coronavirus crisis, technology giants Google (NASDAQ: GOOG), (NASDAQ: GOOGL), Apple Inc (NASDAQ: AAPL), and Facebook Inc (NASDAQ: FB) are losing momentum. Bitcoin’s strength breeds competition that may result in the tech giants’ intention to kill BTC for own survival. Because of the pandemic, their major sources of revenue – advertising business in cases of Google and Facebook and iPhone sales in Apple’s case – are at a low ebb, and it is unlikely whether they will recover after the crisis. Therefore, Google, Apple, and Facebook need to find new revenue streams.
Recently, Google was reported to be working on its new smart debit card. Its payment system will allow users to make purchases through card, online, or mobile handsets. Besides, the card will integrate with the Google Pay app, enabling users to keep track of their expenses, balances, and account access. To develop the card, Google has teamed up with Citibank and Stanford Federal Credit Union. The Card will initially come with a Visa-powered chip, but later, Google may add support for other payment processors like Mastercard.
According to Google, customers will “benefit from useful insights and budgeting tools.” Dubbed “Cache”, the service is expected to significantly expand Google Pay’s capabilities. The date of the card release is unknown, but the initiative will definitely take place this year.
Last year, Apple launched its own credit card in partnership with Goldman Sachs and Mastercard. Apple Card differs from other cards by combining excellent rewards with a consumer-friendly app. It offers 3% cashback on purchases at Apple, 2% cashback on all purchases made on the card through Apple Pay, and 1% cashback on other purchases. Apple Card provides transparency, simplicity, and privacy and charges no fees. But if customers fail to pay the full balance by the due date, they can attract the interest of 12.99% to 23.99% based on their creditworthiness.
To compete with Bitcoin, Facebook has been long working on its Libra currency. For some time, there has been no news about the developing process, and there were reports about Facebook abandoning the project. However, it is not so. Indeed, the Libra Association pulled away from its original vision of a global stablecoin pegged to a basket of national currencies. Instead, the Association plans to develop several stablecoins to represent different fiat currencies. One Libra coin could be pegged to the Euro, another to the U.S. dollar, and so on.
Now let us turn to Bitcoin. Its first advantage that comes to mind is functioning without a government, central bank, or technology company behind it. Maintained by an evolving and decentralized network and beholden only to the mathematical principles, Bitcoin is stable without authority. It has no CEO, no advertising budget. Not one authority can interfere in Bitcoin transactions, impose transaction fees or take people’s money away. Besides, its movement is extremely transparent, as every single transaction is stored in a massive distributed public ledger.
Notably, Bitcoin appeared during the last economic crisis. But in Silicon Valley, centralization is the main principle. Facebook’s Mark Zuckerberg, Apple’s Tim Cook, and Google’s Sundar Pichai are running tight ships. Developing new products to penetrate deeper into the financial sector, they all focus on centralization. But as more people are considering Bitcoin for investment, Facebook’s, Apple’s and Google’s products are unlikely to take an absolute advantage over the digital currency leader.
Bitcoin News, Blockchain, Cryptocurrency news, FinTech News, News
Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.
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Author: Muhaimin Olowoporoku
Satoshi Nakaboto: ‘Not Bitcoin, but oil fell to $0’
Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.
Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Plato used to say: Whip it, whip it, whip it!
We closed the day, April 20 2020, at a price of $6,881. That’s a notable 4.24 percent decline in 24 hours, or -$304.90. It was the lowest closing price in four days.
We’re still 65 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin’s market cap ended the day at $126,192,239,912. It now commands 64 percent of the total crypto market.
Yesterday’s volume of $37,747,113,936 was the highest in three days, 76 percent above the year’s average, and 49 percent below the year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 694 tons of gold.
A total of 310,649 transactions were conducted yesterday, which is 3 percent below the year’s average and 31 percent below the year’s high.
Yesterday’s average transaction fee concerned $0.21. That’s $3.50 below the year’s high of $3.71.
As of now, there are 10,756 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.
Furthermore, the top 10 Bitcoin addresses house 5.6 percent of the total supply, the top 100 14.9 percent, and the top 1000 35.1 percent.
With a market capitalization of $124 billion, AbbVie has a market capitalization most similar to that of Bitcoin at the moment.
On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.
He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.6 percent behind being on track. Bitcoin‘s price should have been $291,864 by now, according to dickline.info.
Bitcoin used an estimated 205 million kilowatt hour of electricity yesterday. On a yearly basis that would amount to 75 terawatt hour. That’s the equivalent of Venezuela’s energy consumption or 6,9 million US households. Bitcoin’s energy consumption now represents 0.33% of the whole world’s electricity use.
Yesterday 34,822 fresh tweets about Bitcoin were sent out into the world. That’s 83.6 percent above the year’s average. The maximum amount of tweets per day this year about Bitcoin was 75,543.
This was one of yesterday’s most engaged tweets about Bitcoin:
Mainstream economists must be so confounded that oil fell to zero instead of #Bitcoin lolhttps://t.co/gd5lBXJsgh
— 🔨Robert Brrrrrrrrreedlove (@Breedlove22) April 20, 2020
This was yesterday’s most upvoted Reddit post about Bitcoin:
“Bitcoin is too volatile” from r/Bitcoin
And this was yesterday’s top submission on Hacker News about Bitcoin:
[dupe] Bitcoin stealer infected 700 libraries of major programming language (decrypt.co)
My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.
Author: Satoshi Nakaboto