These 4 Factors Show Why It’s Hard to Be Bearish on Bitcoin Right Now

These 4 Factors Show Why It’s Hard to Be Bearish on Bitcoin Right Now
  • There remain some Bitcoin bears despite the ongoing push higher.
  • One trader said that due to BTC’s failed attempts to break past $12,000, the cryptocurrency could move towards the $8,000s or $9,000s.
  • One fund manager, Charles Edward, in the space says that it’s hard to be bearish on Bitcoin right now, though.
  • He cites a confluence of fundamental trends, four of which will be outlined in this article.
  • How can you be bearish Bitcoin here?

    – Portnoy in Bitcoin
    – Fed investigating crypto dollar w MIT
    – Gold S/R flip
    – +26% Tether
    – 45% supply hasn’t moved in >2yrs
    – Energy Value increasing > price
    – Mining profitable & price near Production Cost
    – Accumulation price structure

    — Charles Edwards (@caprioleio) August 13, 2020

    This week, Dave Portnoy, the founder of Barstool Sports and a celebrity day trader, bought Bitcoin with the help of the Winklevoss Twins. Analysts see this move as bullish for the cryptocurrency as his millions of followers will now be exposed to BTC on a regular basis.

    Case in point: his Twitter video with the Winklevoss Twins has already been viewed over 700,000 times. Separate Portnoy interactions about Bitcoin have been liked and replied to tens of thousands of times as well.

    I’m officially inviting the Winklevi twins to my office to explain bitcoin to me. Have to wear the rowing outfits though. #DDTG pic.twitter.com/owQr0aZVdn

    — Dave Portnoy (@stoolpresidente) August 4, 2020

    This week, it was revealed that the Federal Reserve is looking into a digital/crypto dollar in collaboration with MIT.

    “With these important issues in mind, the Federal Reserve is active in conducting research and experimentation related to distributed ledger technologies and the potential use cases for digital currencies. Given the dollar’s important role, it is essential that the Federal Reserve remain on the frontier of research and policy development regarding CBDCs.”

    Although it isn’t clear if this will materialize into an actual crypto asset, analysts say the digitization of finance will boost the value of Bitcoin.

    As Arthur Hayes of BitMEX has explained, the abolishment of cash will lead to Bitcoin adoption due to the “moral and even psychological” need to keep information to oneself.

    According to Charles Edwards, the market capitalization of Tether has increased 26% recently past $10 billion.

    To analysts such as him, this indicates that there is an influx of interest in capital into the Bitcoin and Ethereum markets.

    Edwards previously found that Tether’s market capitalization was strongly correlated to the price action of BTC throughout 2018 and 2019, with the correlation somewhat tapering off this year.

    Blockchain data indicates that a large portion of all Bitcoin in circulation has not moved in over a year. Glassnode, for instance, indicates that around 67% of all BTC has not moved from a wallet in 12 months or more.

    The last time this much of the BTC supply was inactive, the rally from the hundreds to $20,000 began.

    Source: bitcoinrecent.com

    Author: by admin


    Bitcoins Are Being Tokenized Faster Than They’re Mined as DeFi Craze Continues

    Bitcoins Are Being Tokenized Faster Than They’re Mined as DeFi Craze Continues

    Since Sunday, 1,043 more bitcoins were tokenized through Wrapped Bitcoin than were actually created by bitcoin miners as the Ethereum-based decentralized finance (DeFi) boom shows no signs of abating.

    • In July, Three Arrows Capital minted its tokenized bitcoins through BitGo, the company that helped spearhead Wrapped Bitcoin in 2019.
    • Within a year, WBTC will be a “first class asset” in the decentralized finance ecosystem, predicted Three Arrows co-founder Su Zhu, “just as USDC and USDT are now.”
    • Bitcoins Are Being Tokenized Faster Than They’re Mined as DeFi Craze Continues
    • Bitcoins Are Being Tokenized Faster Than They’re Mined as DeFi Craze Continues

    Source: finance.yahoo.com

    Zack Voell

    Bitcoins Are Being Tokenized Faster Than They’re Mined as DeFi Craze Continues

    Bitcoin Breaking This Confluence Resistance Could Spark a Significant Surge

    Bitcoin is trading in a bullish zone above the $11,650 level against the US Dollar. BTC is likely to accelerate higher once it clears the key $12,050 resistance zone.

  • Bitcoin is gaining bullish momentum and it is approaching the $12,000 resistance zone.
  • The price is forming a strong support near the $11,650 level and the 100 simple moving average (4-hours).
  • There is a crucial bullish trend line with support near $11,500 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could correct a few points, but the price action suggests more gains above $12,000.
  • In the past few days, there was a positive price action in bitcoin, Ethereum and ripple against the US Dollar. BTC remained well bid above the $11,200 level and the 100 simple moving average (4-hours).

    It started a fresh increase from the $11,276 swing low and climbed above the main $11,500 resistance area. There was a break above a connecting bearish trend line with resistance near $11,600 on the 4-hours chart of the BTC/USD pair.

    The pair retested the $12,000 resistance zone and it is currently consolidating gains. An initial support is near the $11,800 level. It is close to the 23.6% Fib retracement level of the recent upward move from the $11,276 swing low to $11,977 high.

    Bitcoin

    Bitcoin price testing $12,000. Source: TradingView.com
    What future awaits cryptocurrencies?
    GOODBAD

    The main support is forming near the $11,650 level or the 50% Fib retracement level of the recent upward move from the $11,276 swing low to $11,977 high. There is also a crucial bullish trend line with support near $11,500 on the 4-hours chart of the same chart.

    On the upside, a successful daily close above the $12,000 and $12,050 levels may perhaps open the doors for another rally. The next major resistance could be $12,400 or $12,600.

    If bitcoin starts a downside correction, it is likely to find support near $11,650 or $11,600. The breakdown support is near the trend line and the $11,500 pivot level.

    A downside break below the $11,650 and $11,500 support levels could initiate a substantial downward move in the coming sessions. The next key support is near $11,200, followed by the $11,000 handle.

    Technical indicators

    4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bullish zone.

    4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 55 level.

    Major Support Level – $11,650

    Major Resistance Level – $12,050

    Source: bitcoinrecent.com

    Author: by admin


    These 4 Factors Show Why It’s Hard to Be Bearish on Bitcoin Right Now


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