That was a crazy day for the price of Bitcoin. Some would say it’s an ordinary day, but as we wrote here in yesterday’s price analysis, after sideways action in a tight range, the primary cryptocurrency had exploded.
After trading for the last few days between $6800 – $7000, it first started with a deep below the critical $6600 support, whereas the daily low was around $6472 (Bitstamp), which is the next-mentioned support level we had stated here yesterday.
But it was only a quick glitch below the $6600 because, for the following hours, we saw Bitcoin trading safely above the crucial level.
Over the past two hours, we saw Bitcoin firing up – from the $6600 price area to a current high at $7150 (Bitstamp). That’s roughly a $500 gain in just two hours. Business as usual for Bitcoin?
As of now, Bitcoin looks short-term bullish. However, we will have to see how the daily candle closes. It’s crucial to see a daily close above the $7000 benchmark, along with the 50-days moving average line.
Looking at the momentum indicator, the RSI is now pointing up, hovering slightly above the 50 mark. Maintaining this level is also crucial for the short-term.
Besides, the daily Stochastic RSI oscillator had made a crossover at the oversold area and about to enter the neutral territory. This aligns with the bullish reversal.
From the bearish side, we will have to see Bitcoin holding this price area. As we learned about the recent era, the Bitcoin price is in correlation with the global stock markets. As of writing these lines, Wall Street futures trading over 1% in the green, which aligns with Bitcoin.
Total Market Cap: $200.5 billion
Bitcoin Market Cap: $128.6 billion
BTC Dominance Index: 64%
*Data by CoinGecko
– Support/Resistance levels: Following the breakout of the $7K zone, along with the descending trend-line as can be seen on the following 4-hour chart, Bitcoin is now facing $7150 – $7200 resistance as its first mission. Further above is the 10-day high at around $7400 – $7500. The latter is the highest-level Bitcoin price had seen since the COVID-19 crisis had begun.
From below, the $7K now becomes the first level of support, together with the 50-days moving average line (marked pink). A little below lies $6800, followed by $6600.
– The RSI Indicator: discussed above.
– Trading volume: The declining volume had ended as expected with a crazy day like today. It will be interesting to see what the price and the volume level will be at the end of today.
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Cryptocurrency charts by TradingView.
Is Bitcoin Headed For A Sharp Decline?
Bitcoin prices could be on track to record serious losses in the near future, says one technical … [+] analyst. (Photo by Yuriko Nakao/Getty Images)
Bitcoin, the world’s most prominent digital currency, may be headed for a substantial correction, according to one technical analyst.
Now, “the bulls now must sustain the rally at an equal or greater pace in the short term or the bears might take back some serious ground,” said Nicholas Pelecanos, head of trading at NEM Ventures.
“Indicators from one of our momentum based strategies are beginning to show a serious bearish setup that could lead to a 50% sell off, sending price into the low $3,000s,” he stated.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
A Rare Event
The analyst highlighted “a crossing of the 150&400 exponential moving averages,” noting that “this has happened only twice before in Bitcoin’s price history.”
He elaborated, stating that “this was in conjunction with the 200EMA crossing the 300EMA after a price rejection from the 60EMA, which has signaled the start of a major month long sell off.”
“Worryingly, both of these sells offs were sparked by brief sell offs in the Dow and S&P.”
Pelecanos noted that “since the beginning of March, Bitcoin’s correlation with the S&P and Dow has been unusually high at approximately 0.82,” stating that a sharp sell-off in stocks could trigger an even larger flight from bitcoin.
Analysts Weigh In
When polled for this article, other technical analysts noted that while bitcoin may very well be headed for some downside in the near future, the digital currency will probably not suffer a 50% loss in value.
“The 50-day moving average is putting a lot of pressure on Bitcoin’s price and is keeping it under $7,000,” said Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital.
“However, going from here to low $3,000s (as indicated in the assessment above) is not the most likely outcome, and we believe there is strong support at $5,000 in the short-term.”
Alex Mascioli, head of institutional services for Bequant, also weighed in, offering a similar point of view.
“It feels like there has been a slight shift of the wind from the end of last week where Bitcoin was bouncing off the 50 MA and we were testing and retesting the upward trendline for an anticipated $8 – $9k breakout,” he stated.
“Now, after failing to sustain the $7,000+ level we are seeing an increase in open-interest in options, fueling higher selling pressure,” said Mascioli.
“The $3k level may be a bit of an over-retraction and, as such, we are looking for support in the $4.5k neighborhood if pressure continues,” he concluded.
Kiana Danial, CEO of Invest Diva, also commented, taking a look at the Ichimoku Cloud, a group of technical indicators which helps provide insight into an asset’s current trend and momentum.
Even with this different approach, she didn’t see bitcoin dropping to almost $3,000.
“Based on the Ichimoku system, calling for a 50% drop could be a bit premature,” she stated.
“We could see drops towards the 50% Fibonacci retracement level of $5,976,” said Danial.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.
Author: Charles Bovaird
Crypto Today: Bitcoin on the verge of bearish breakthrough
BTC/USD is hovering at $6,640. The coin has been mostly range-bound since the beginning of the day, though it has lost nearly 4% of its value in the recent 24 hours. The coin has recovered from the intraday low of $6,466, now it is moving within a short-term bullish trend amid low volatility.
At the time of writing, ETH/USD is changing hands above $153.30. The second-largest coin hit the intraday low $148.30 but managed to regain the ground. Despite the recovery, it is still 4.6% lower from this time on Wednesday. ETH/USD is moving in a short-term bullish trend in sync with the market. The volatility is low.
XRP/USD is changing hands at $0.1790 during early Asian hours, off the intraday low of $0.1741. The coin has lost 4.5% on a day-to-day basis and stayed unchanged since the beginning of the day. From the short-term perspective, XRP/USD is trading within a bearish trend amid low volatility.
Among the 100 most important cryptocurrencies, ABBC Coin (ABBC) $0.1068 (+8.9%), Hyperion (HYN) are in the green zone. The day’s losers are HedgeTrade (HEDG) $1.62 (-10.8%), Insolar (XNS) $0.9122 (-9.8%), Bitcoin Gold (BTG) $9.06 (-9.6%).
Chart of the day:
XRP/USD, 30-min chart
A world’s largest cryptocurrency exchange Binance will hold the first token sale since February. The project called Cartesi will have its token sold via Binance Launchpad. The participants of the token sale will be chosen through a lottery system, where your chances are directly related to the amount of BNB you hold. The exchange will take a snapshot of BNB balances from April 14 to April 21 to determine how many seats each user receives.
The announcement caused a sharp BNB price increase. The native token of the exchange hit $15.77 on Wednesday; however, by the time of writing the price retreated to $14.60. Binance Coin is the 8th largest digital asset with the current market value of $2.2 billion and an average daily trading volume of $445 million.
Cryptocurrency traders believe the market volatility may return once US ends the lockdown and reopens the economy. According to Twitter crypto trader BigCheds, market players should keep an eye on BTC reaction in the contest of its correlation with the broader equities market. Meanwhile, the US President Donald Trump considers opening businesses.
The plans to reopen the country are close to being finalized. The day will be very close,” he said, pointing out that it may happen before May 1.
A Seychelles-based cryptocurrency exchange KuCoin will build enterprise currency desk (ECD) in partnership with DigitalBits. According to the announcement released on Wednesday, ECD solution will provide over-the-counter (OTC) desk services to enterprise clients. ECD will operate on a subscription basis and target business and brands, allowing them to access Bitcoin and Ethereum-based rewards programs using branded stablecoins.
Johnny Lyu, CEO of KuCoin Global, commented:
We are focused on assisting brands and other enterprises to easily obtain the cryptocurrencies they require for their business, without the need to internally employ experienced traders to pursue the complex task of purchasing significant amounts of tokens.
ETHProtect solution allows tracking compromized coins and addresses on Ethereum block explorer.
We are happy to announce the release of ETHPROTECT. Integrated directly into Etherscan it lets you know in advance if an address is potentially ‘Tainted’ so that you can better protect yourself and avoid unexpected surprises.
The new ETH Protect system will be able to trace funds and determine if there are connected to scams or illegal, activities including phishing. Suspicious coins will be marked with the red shield.
Chinese commercial banks will start running tests of the state-issued digital currency, Bloomberg reports, citing people familiar with the matter. State-owned Chinese banks are also conducting internal tests of the new asset. The digital wallets are said to include the conversion functionality to allow users to transfer digital money between cash, bank accounts, etc.
Quote of the day
Lots of ppl asked me the China DCEP “leaked” screenshot, it didn’t stir up major attention imo, it’s long-expected project since 2 yrs ago. The screenshot is an HTML5 mock-up, whitelisted users can register, most likely it’s one of N prototypes from M teams working on it.
Dovey Wan, Founding Partner of Primitive Crypto
Satoshi Nakaboto: ‘Daily value transfer on Ethereum now on par with Bitcoin’
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 Satoshi Nakamoto used to say: Your imagination is the only tool in the book!
We closed the day, April 15 2020, at a price of $6,642. That’s a notable 2.97 percent decline in 24 hours, or -$203.45. It was the lowest closing price in thirteen days.
We’re still 66 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).
Bitcoin’s market cap ended the day at $121,731,940,639. It now commands 65 percent of the total crypto market.
Yesterday’s volume of $32,288,311,031 was the lowest in three days, 52 percent above the year’s average, and 56 percent below the year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 583 tons of gold.
A total of 310,084 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 $0.28. That’s $3.42 below the year’s high of $3.71.
As of now, there are 10,790 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 15.0 percent, and the top 1000 35.0 percent.
With a market capitalization of $120 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 $284,901 by now, according to dickline.info.
Bitcoin used an estimated 202 million kilowatt hour of electricity yesterday. On a yearly basis that would amount to 74 terawatt hour. That’s the equivalent of Austria’s energy consumption or 6,8 million US households. Bitcoin’s energy consumption now represents 0.33% of the whole world’s electricity use.
Yesterday 28,889 fresh tweets about Bitcoin were sent out into the world. That’s 53.3 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:
Toronto Stock Exchange’s Listing of Bitcoin Fund Can Have a Major Impact on Crypto https://t.co/Xm16L1psx6 via @cointelegraph
— Tyler Winklevoss (@tylerwinklevoss) April 15, 2020
This was yesterday’s most upvoted Reddit post about Bitcoin:
Value transfer on Ethereum just reached parity with Bitcoin. from r/ethereum
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