Bitcoin rally set to continue after BTC whales build buy walls near $17.2K
According to analysis from Edward Morra, a popular Bitcoin trader, Coinbase and Bitfinex exchange now have major buy orders above $17,200.
The emergence of major buy walls is important because on Nov. 18, BTC flash crashed to around $17,222. This shows that whales are using large buy orders to defend the $17,200 support area with strength.
Both whale clusters and exchange order books show that the $17,000 level is turning into a major support area.
Above $18,500, there is little resistance until the all-time high at $20,000. This means if Bitcoin stays stable above $17,000, the chances for breaking out above $18,500 significantly increase.
Based on whale activity and exchange order books, it has become more unlikely that the price will drop below $17,200. For such a large downside movement to occur, a massive sell order would have to trigger cascading liquidations.
Prior to the intraday recovery of Bitcoin from $17,340 to $18,000, whales on Bitfinex were placing sell orders. Recently, Morra said that Bitfinex has seen more buy orders at the $17,000 support. He wrote:
“In case it dips, Coinbase put a lot of bids (buy orders) below current range. Surprisingly, Bitfinex that was mostly placing sell walls before now has a pretty fat buy wall below.”
Analysts at Whalemap track Bitcoin whale activity by identifying clusters and they said $17,783 and $17,651 have formed as clusters.
These ‘whale clusters’ emerge when large Bitcoin holders purchase BTC at a certain price point and do not move those funds elsewhere. Hence, if whale clusters form at $17,783 and $17,651, it shows that whales bought at those levels and are holding onto their investment.
Throughout November, many analysts have pointed to the high time frame charts to depict an optimistic short to medium-term outlook.
Kevin Kelly, the co-founder and head of global macro at Delphi Digital, emphasized that Bitcoin is on track to mark the first monthly candle close above $14,000. Kelly said:
“And if $BTC closes out November anywhere near current levels, it will mark a new monthly closing high, surpassing its December 2017 close just above $14,000.”
Even during the run-up towards the record high in 2017, Bitcoin struggled to maintain stable high time frame price action. Based on the trend and many other factors, Kelly noted stated Bitcoin is maturing. He noted:
“It’s important to remember the road to the top is never linear; significant drawdowns are inevitable. But make no mistake, this market is maturing. #Bitcoin is garnering attention from the world’s top investors. It’s permeating the inner circles of the world’s top thinkers.”
Across major Bitcoin (BTC) exchanges, large buy walls are starting to emerge. Considering that BTC’s price has recovered beyond $18,000, this trend is optimistic.
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Bitcoin Options Investors Are Starting to Hedge Against Potential Price Pullback
Bitcoin’s options market data shows investors are beginning to position for a temporary retreat from the cryptocurrency’s steep bull run.
The one-month implied volatility, which is influenced by the demand for call and put options, jumped from roughly 55% to a four-month high of 70.5% in the past two days, suggesting increased expectations for price turbulence over the next four weeks.
The one-month gauge is currently seen at 65%. Implied volatility metrics for longer durations have also recovered from recent lows.
Alongside that, the negative spread between the cost of puts (bearish bets) and calls (bullish bets) has eased, as evidenced by the recovery in the one-, three- and six-month put-call skews. Notably, the one-month gauge bounced from -27% to -14%, according to data source Skew.
These numbers indicate increased demand for put options – a sign of investors hedging against a potential price pullback. While call buying can and does cause a rise in implied volatility metrics, in this case, the put-call skew has recovered alongside the pick up in volatility, suggesting a rise in demand for puts.
Validating that assessment is the tweet by Deribit Insights, which says institutions have bought put options. That does not necessarily imply a bearish bias but could be a hedging strategy against a long or bullish position in the spot market.
Options are derivative contracts that give the purchaser the right but not the obligation to buy or sell the underlying asset at a predetermined price on or before a specific date. A call option gives the right to buy, and the put option represents the right to sell. Implied volatility, a key component in calculating the price of an option, is the expected standard deviation of returns over a selected period and is expressed in annualized terms.
Fears of a deeper drawdown in bitcoin’s price and demand for puts looks to have been fueled by the volatile price action seen in the past 36 hours. Bitcoin rose as high as $18,358 during Wednesday’s Asian trading hours only to make a quick retreat to $17,200. That has seen volatility spike and the put-call skew rise, as traders hedge their bullish sentiment with puts, according to Shaun Fernando, head of risk and product at cryptocurrency exchange Deribit.
The renewed interest in the put options comes following bitcoin’s recent vertical rally from $10,000 to above $18,000. The cryptocurrency has seen multiple corrections of more than 20% in the previous bull markets. This time, a bull market correction has remained elusive, possibly due to a supply deficit in the market.
However, the uptrend may now lose some momentum, according to technical studies.
Both the long upper wick attached to Wednesday’s indecisive candle and the above-50 reading on the relative strength index indicate bull fatigue. “The cryptocurrency may face some selling pressure if the prices end (UTC) Thursday below lows near $17,100 seen Wednesday,” Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG, told CoinDesk.
The broader trend remains constructive with the three- and six-month put-call skews reporting negative values and macro factors aligned in favor of scarce assets like bitcoin.
Why Bitcoin Dominance Suggests Alt Season Is Nonetheless Many Months Out
Bitcoin worth is a mere $2,000 away at the moment from setting a brand new excessive and surprising the world that the cryptocurrency rose from the ashes like a Phoenix as soon as once more. The at the moment flaming sizzling cryptocurrency is the speak of the world of finance, and it has resulted in altcoins struggling considerably over the past a number of weeks.
Whereas a lot of the cryptocurrency group expects alt season to observe the second Bitcoin corrects and consolidates, BTC dominance could possibly be forecasting that any enchancment within the altcoin development could possibly be many months out. Right here’s what the metric measuring the first-ever cryptocurrency rising market cap in opposition to the remainder of the crypto business has to say about altcoins.
Bitcoin is buying and selling at $18,000 and its complete market cap has set a brand new larger excessive over the 2017 peak. All indicators level to an prolonged Bitcoin bull run, after maybe yet another correction.
The final time round when the first-ever cryptocurrency went parabolic, altcoins adopted. Two distinct altcoin seasons occurred, one in the course of the preliminary run-up, then one other when Bitcoin reached its all-time excessive, and retail investor FOMO flooded altcoins with capital.
The mainstream hadn’t heard of Bitcoin, not to mention altcoins. With BTC buying and selling at psychologically costly costs, and the common investor discovering consolation in entire rounded numbers, altcoins seemed to be the higher choice. The attract of discovering the following Bitcoin early pushed retail in the direction of alts, and so they have carried out nothing however undergo since.
BTC dominance dropped from a better of over 90% to as little as 35%. The 2019 rally peak left altcoins reeling, inflicting dominance to prime out at round 72%. Now, BTC represents precisely two-thirds of the whole crypto market cap, in line with dominance.
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Bitcoin has attracted a brand new class of buyers, who’ve subsequent to zero curiosity in most altcoins that don’t have wherever close to the promise, attraction, adoption, and regulatory acceptance as BTC.
As sensible cash is available in, comprised of billionaires, hedge funds, firms, and extra, they’ll be specializing in BTC completely. Within the present financial surroundings, Bitcoin’s advantages are being considered as a protected haven and insurance coverage coverage, whereas altcoins carry a big danger of capital loss.
Alts like Ethereum, XRP, Litecoin, and the tried and true cash might additionally profit, however tokens method down the ranks are doubtlessly doomed into obscurity. The one saving grace is one other wave of retail buyers looking for the following BTC and one other alt season going down, however that could possibly be a big method off, in line with technicals and never simply the present sentiment.
A doable breakout of a four-year trendline on BTC.D occurs with a detailed on Sunday night time | Supply: CRYPTOCAP-BTC on TradingView.com
Pure technicals don’t look promising for altcoins, based mostly on BTC dominance. The metric measuring Bitcoin in opposition to all different altcoins places the cryptocurrency at about two-thirds of the crypto market’s complete market share.
The chart above highlights what seems to be a breakout from a trendline that first let altcoins achieve some floor with Bitcoin stretching again so far as early 2017.
The breakout is supported by the Ichimoku cloud, however the candle should shut to substantiate | Supply: CRYPTOCAP-BTC on TradingView.com
Including credence and validity to the breakout is the truth that the worth motion is at the moment above the Ichimoku cloud on excessive timeframes. A detailed above the cloud would result in a robust push larger.
Associated Studying | Bitcoin Approaches High Of Accumulation Zone, Parabolic Section Begins With Breakout
Within the chart beneath, the month-to-month BTC.D chart can be closing above the middle-line on the Bollinger Bands. The metric climbed one other 30% the final time it closed above the shifting common and normally ensures not less than a contact of the higher Bollinger Band which at the moment resides at 2019 highs.
Altcoins have till the tip of November, to stop dominance from hovering to the highest of the Bollinger Bands | Supply: CRYPTOCAP-BTC on TradingView.com
Though there are 5 charts complete, the ultimate chart has three extra alerts which might be extraordinarily bearish for altcoins. The Relative Power Index is nowhere close to oversold ranges, and lately broke out from a downtrend line, letting the highest cryptocurrency rip in opposition to alts.
The MACD can be flipping bullish by way of crossover for the primary time since April 2019. The histogram additionally turned inexperienced for the primary time since March 2018, simply because the final important altcoin season ended.
The RSI, MACD, and quantity all level to additional BTC crypto market dominance | Supply: CRYPTOCAP-BTC on TradingView.com
Altcoins have by no means fairly recovered since 2018, and the rising quantity above on BTC.D means that the development of favoring Bitcoin over altcoins is barely strengthening.
For the naysayers that argue charting dominance is nugatory, the ETHBTC chart – usually used to gauge altcoins energy or weak spot in opposition to BTC – provides alerts inverse to all of the above, pointing to a deep collapse in Ethereum whereas BTC runs to new all-time highs.
The Ethereum ratio in opposition to BTC additionally suggests altcoin capitulation is coming | Supply: ETHBTC on TradingView.com
The following two weeks are particularly vital for altcoins, and are dealing with a bounce or die sort scenario in opposition to the one simply blossoming Bitcoin bull development.
If Sunday night time’s two-week shut and the month-to-month November shut at or above present ranges, alt season could possibly be delayed indefinitely, or not less than for a number of extra months till retail is sucked again in.
Featured picture from Deposit Photographs, Charts from TradingView.com
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Leaked Citibank Report Reveals Bitcoin Could Rocket To $300,000 Price By End Of 2021
Bitcoin has exploded over the last few weeks, adding to gains through 2020 that’s seen it more than double in value.
The bitcoin price has this week shot past $18,000 per bitcoin, causing jubilation among long-suffering bitcoin supporters and causing many to recall bitcoin’s late 2017 bubble—though it’s happening without 2017’s mainstream bitcoin mania.
Now, a leaked report from Wall Street giant Citibank has revealed a senior analyst thinks bitcoin could potentially hit a high of $318,000 by December 2021, calling it “21st century gold.”
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The bitcoin price has more than doubled from around $7,000 per bitcoin at the beginning of 2020 to … [+] around $18,000 now–with some expecting it to soar still higher.
“The whole existence of bitcoin has been characterised by unthinkable rallies followed by painful corrections, the type of pattern that sustains a long term trend,” Citibank’s global head of CitiFX Technicals, Tom Fitzpatrick, wrote in the note to institutional clients that was leaked on Twitter—asking: “Are we on the cusp of another such structural development?”
Pointing to a chart that shows three bitcoin bull runs over the last decade, the note suggests that the current rally could “potentially peak in December 2021, at the high of the channel, suggesting a move as high as $318,000 [per bitcoin].”
“Time will tell if we end up seeing such lofty levels but the backdrop and the price action we are looking at clearly suggest the potential for a major move higher nonetheless in the next 12-24 months.”
The note claims “the arguments in favour of bitcoin could well be at their most persuasive ever,” referencing bitcoin’s growing reputation as digital gold and “central banks increasingly discussing the digitization of currencies.”
Bitcoin is also expected to benefit from “the change in monetary policy and simultaneous opening up in fiscal policy” that could devalue traditional currencies.
This chimes with a separate note released by Citibank this week that predicts the coronavirus vaccine roll out and loose monetary policy will weigh on the U.S. dollar through 2021.
“When viable, widely distributed vaccines hit the market, we believe that this will catalyze the next leg lower in the structural USD downtrend we expect,” Citi wrote, according to reports. “Given this set-up, there is the potential for the dollar’s losses to be front-loaded, with the USD potentially falling by as much as 20% in 2021.”
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The bitcoin price has added around 12% over the last week, on top of triple-digit gains over the … [+] course of the year.
Bitcoin’s rally this year has been fuelled by renewed interest from Wall Street and support from a host of big-name investors, many of whom have given their backing to bitcoin as an emerging hedge against a wave of inflation that could be on the horizon.
Amid bitcoin’s latest rally, the bitcoin and cryptocurrency community has cheered what has been taken as vindication of their much-maligned belief in bitcoin’s eventual success.
“The dawn of the next great crypto bull run may be upon us,” Paolo Ardoino, chief technology officer at British Virgin Islands-based bitcoin and cryptocurrency exchange Bitfinex, said via email. “We are seeing bitcoin prices that have not been reached in years. This time, institutional money is infusing bitcoin’s gains.”
Author: Billy Bambrough
CRYPTO NEWS: Latest BITCOIN News, ETHEREUM News, DEFI News, TETHER News
On the morning of November 18, the Asian trading session was tumultuous as bitcoin prices soared to over $ 18,450 and then plummeted to the 50-hour moving average of $ 17,100. This indicates that many leveraged positions are being liquidated. Since then, BTC has returned to the $ 17,800 level it is currently trading at.
The round was led by gumi Cryptos Capital with contributions from Quantstamp, BlockRock Capital and Long Hash, among others. With fresh capital, Idle plans to expand its profitability optimization protocol with new features.
Ethereum is trading at just over 2% at the current price of $ 470. This is where it has traded over the past few days and weeks, with significant selling pressure.
Blockchain software giant ConsenSys has acquired DLT Truffle development project for an undisclosed amount. The Truffle Suite add-on aims to enable ConsenSys to provide its customers with an even more complete set of blockchain development tools.
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