View: China’s crypto is all about tracing — and power
By Andy Mukherjee
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Bitcoin Exchange balances have dropped $ 3 billion since mid-March. What this could mean
- Bitcoin has entered a solid phase of sideways trading as it struggles to achieve remarkable momentum in the short term
- This happens shortly after his last rejection at $ 9,900, confirming that the strong resistance around $ 10,000 could prove insurmountable
- This short-term volatility does not seem to put investors in phases as data show that the exchanges have had a $ 3 billion BTC net loss since March 12
Bitcoin and the aggregate cryptocurrency market have recently been hit by immense volatility, much of which has benefited cryptocurrency buyers.
Still, the benchmark crypto struggles to get enough buying pressure to push it beyond the $ 10,000 region. This level has been repeatedly confirmed as strong support in the past few days and weeks.
One event that could help it see a steady upward trend in the coming days and weeks is the trend that investors are moving their crypto away from exchanges and towards the cold store.
This trend has picked up momentum in the aftermath of the March 12 collapse and is a symbol that investors are pursuing a long-term investment strategy.
The price action on March 12 – a day known today as "Black Thursday" – shocked investors and reduced confidence in centralized platforms.
After the event, many investors and analysts found that the decline was likely due to cascading liquidations on the BitMEX crypto trading platform.
Once the downtrend picked up pace and long positions were liquidated, selling pressures proved insurmountable, causing Bitcoin to drop to a low of $ 3,800.
This decline stopped the moment BitMEX stopped trading on its platform, allowing the price to begin its subsequent "V-shaped recovery".
In the aftermath of these events, investors quickly removed their Bitcoin from the exchanges.
A popular analyst spoke about this in a recent tweet referring to data from blockchain analysis company Glassnode.
“Continuous BTC withdrawals continue to be recorded on the stock exchanges. Credit has dropped> 300,000 BTC (~ $ 3 billion) since Black Thursday. Lowest stock market since May 22, 2019, almost a year after today. "
This trend seems symbolic for two things.
First, the vast majority of these investors are likely to turn their Bitcoin into refrigerators. Since this limits the accessibility of crypto and makes sales somewhat difficult, this suggests that investors are pursuing their investment strategy in the long term.
This trend also suggests that investors may lose confidence in centralized platforms – as evidenced by the fact that BitMEX accounts for a third of the crypto that has been removed from the exchange in recent months.
Featured image from Unplash.
The Crypto Daily – Movers and Shakers -25/05/20
Bitcoin slid by 5.08% on Sunday. Reversing a 0.15% gain from Saturday, Bitcoin ended the week down by 9.91% to $8,710.10.
A bullish start to the day saw Bitcoin rise to a mid-morning intraday high $9,300.0 before hitting reverse.
Bitcoin came up against the first major resistance level at $9,295.47 before falling to a late afternoon low $8,859.2.
The reversal saw Bitcoin fall through the first major support level at $9,064.27 and the second major support level at $8,952.93.
Finding late support, Bitcoin briefly recovered to a high $9,075 before a final hour sell-off.
The sell-off saw Bitcoin slide back through the first major support level and second major support level to an intraday low $8,688.0.
The near-term bearish trend, formed at late June 2019’s swing hi $13,764.0, remained firmly intact, reaffirmed by the March swing lo $4,000.
For the bulls, Bitcoin would need to break out from the 62% FIB of $10,034 to form a near-term bullish trend.
Across the rest of the majors, it was also a bearish end to the week on Sunday.
Cardano’s ADA slid by 6.80% to lead the way down.
Bitcoin Cash ABC (-5.47%), Litecoin (-4.08%), Monero’s XMR (-4.06%), Stellar’s Lumen (-4.74%), Tezos (-4.31%), and Tron’s TRX (-5.15% weren’t far behind.
Binance Coin (-3.09%), Bitcoin Cash SV (-3.77%), EOS (-2.84%), Ethereum (-3.38%), and Ripple’s XRP (-3.27%) saw relatively modest losses on the day.
Sunday’s sell-off delivered mixed results for the week, however.
Cardano’s ADA and Tezos bucked the trend, with gains of 0.20% and 0.81% respectively, Monday through Sunday.
It was a week in the red for the rest of the majors, however.
Bitcoin Cash ABC and Stellar’s Lumen led the way down, with losses of 7.72% and 7.04% respectively.
EOS (-4.92%), Monero’s XMR (-6.72%), Ripple’s XRP (-4.45%), and Tron’s TRX (-5.43%) weren’t far behind.
Binance Coin (-1.90%), Bitcoin Cash SV (-2.71%), Ethereum (-3.58%) and Litecoin (-3.75%) saw relatively modest losses for the week.
In the week, the crypto total market cap rose to a Monday low $268.50bn before falling to a Sunday low $239.63bn. At the time of writing, the total market cap stood at $242.29bn.
Bitcoin’s dominance rose to a Monday high 68.31% before falling to a Sunday low 66.51%. At the time of writing, Bitcoin’s dominance stood at 66.64%.
At the time of writing, Bitcoin was up by 0.83 to $8,782.2. A mixed start to the day saw Bitcoin fall to an early morning low $8,620.0 before striking a high $8,808.7.
Bitcoin left the major support and resistance levels untested early on.
Elsewhere, it was a mixed start to the day.
Tron’s TRX (+1.57%), Tezos (+1.20%), Ethereum (+1.06%), Bitcoin Cash ABC (+1.23%), and Binance Coin (+1.11%) led the way early on.
Monero’s XMR was down by 0.15%, however, to buck the trend.
Bitcoin would need to move through to $8,900 levels to bring the first major resistance level at $9,110.73 into play.
Support from the broader market would be needed, however, for Bitcoin to break out from the morning high $8,808.7.
Barring an extended crypto rebound, the first major resistance level would likely limit any upside.
In the event of an extended crypto rally, Bitcoin could revisit $9,300 levels before any pullback. We would expect Bitcoin to come up short of the second major resistance level at $9,511.37, however.
Failure to move through to $8,900 levels could see Bitcoin hit reverse.
A fall back through the morning low $8,620.0 would bring the first major support level at $8,498.73 into play.
Barring another extended crypto sell-off, however, Bitcoin should steer clear of the second major support level at $8,287.37.
This article was originally posted on FX Empire
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Author: Bob Mason
Reddit Co-founder Sees ‘Crypto Spring’ Amid Blockchain Products Growth
Reddit Co-founder and earlier investor in Coinbase Alexis Ohanian in a recent interview with Yahoo! Finance said that the industry is watching a crypto spring right now in terms of blockchain-related products growth.
Ohanian sees developing of the decentralized network infrastructure as engineers and designers create “real solutions” on top of the blockchain technology.
“What I can say is we really do see a crypto spring right now in terms of top-tier engineers, product developers, designers, building real solutions on top of the blockchain. And that to me is the most interesting part… We’re seeing really top-tier talent building on the infrastructure,” he said.
The Reddit’s Co-founder admits he is trying not to keep an eye on cryptocurrencies’ prices as he can not predict any of that stuff. The crypto market is known for its high and unpredictable volatility caused by crypto-whales and massive pump & dump schemes.
However, Ohanian highlighted that the market is “kissing up toward $10,000” as bitcoin (EXANTE: Bitcoin) is struggling to break through the $10,000 mark since the halving.
Earlier popular online forum Reddit announced it is working on the development of ETH-based tokens that will be used to reward users for contributing to the platform.
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