Bitcoin

Analyst Warns Of Imminent Bitcoin Plunge Below $54,000 To Fill CME Gap

Published

2 months ago

August 8, 2024

After enduring a substantial drop to a seven-month low earlier this week, Bitcoin (BTC) showed resilience by reclaiming ground above the $57,000 threshold on Tuesday, sparking optimism among bullish investors who hoped that the worst of the downturn was behind them.

However, the leading cryptocurrency has quickly retraced over 3% in the past few hours, slipping back towards the $54,900 level, suggesting a possible continuation of the prevailing downtrend.

BTC’s CME Gap & Bearish Indicators

Crypto analyst Rekt Capital weighed in on the situation, noting Bitcoin’s repeated retracements following unsuccessful attempts to stabilize at higher levels. Rekt Capital pointed out that Bitcoin stands on the verge of filling the CME Gap positioned between $53,700 and $54,600.

While acknowledging the proximity of the current price at $54,900 to this gap, there’s uncertainty surrounding the necessity of filling it, especially considering its relatively minor size.

The analyst mused on the possibility that this downward movement could merely signify a volatile daily retest around the $55,800 support level, which aligns with the lows seen in early July.

However, if the CME Gap does require filling, doing so sooner rather than later, while the price remains in close proximity, could be a strategic move, according to Rekt’s analysis.

Adding to the bearish indicators, Julio Moreno, Head of Research at data analytics firm CryptoQuant, highlighted a significant observation regarding the Bull-Bear Market Cycle Indicator.

Moreno flagged a bear phase for the first time since January 2023. Previous instances of the indicator signaling bear phases coincided with major market events like the COVID-induced sell-off in March 2020 and the Chinese mining ban in May 2021, accurately predicting the onset of bearish trends in November 2021.

$50,000 Bitcoin Support At Risk?

Crypto firm Material Indicators has also shared bearish predictions in the near term for the Bitcoin price, raising red flags concerning Bitcoin’s bullish momentum. Observing a scenario where Bitcoin bulls are seemingly under siege, the firm notes a stabilization in BTC bids around the $50,000 mark.

However, the cautionary tone emerges as they brace for a potential dip towards a crucial support level at $45,000 if the $50,000 mark fails to hold firm.

Adding to the market sentiments, market expert Jesse Olson has detected a pending sell signal on Bitcoin’s weekly Heikin Ashi chart. This signal, if confirmed, would mark only the fifth such occurrence since 2021, indicating a significant shift in market dynamics.

Ultimately, it becomes increasingly apparent that Bitcoin must exhibit robust bullish momentum in the days ahead to counteract the intensification of the current downtrend.

Revisiting its all-time high levels of $73,700, achieved in March, now appears contingent upon sustained upward movements to offset the prevailing market pressures.

Featured image from DALL-E, chart from TradingView.com

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Bitcoin

Red alert as Ethereum price forms several dangerous patterns

Published

23 mins ago

October 17, 2024

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Ethereum, the second-biggest cryptocurrency, has lagged behind Bitcoin this year amid slow growth of its exchange-traded funds and competition from other layer-1 and layer-2 blockchains.

Ethereum (ETH) has rallied by less than 20% in 2024, while Bitcoin (BTC) has risen by over 50%.

Technicals point to more Ether weakness in the coming months. On the weekly chart, the coin formed a double-top chart pattern around $4,000. It dropped below the neckline of this pattern at $2,824 in July, confirming the bearish breakout.

Ethereum has also formed a death cross pattern as the 200-day and 50-day Hull Moving Averages made a bearish crossover. The HMA reduces lag by using weighted moving averages to smooth out price data.

The last time Ethereum formed a death cross on the weekly chart was in March 2022, and the coin dropped by over 70% after that.

Ether has also formed a bearish pennant chart pattern, which is characterized by a long vertical line followed by a symmetrical triangle. Typically, an asset experiences a bearish breakout when the two lines of the triangle converge.

Additionally, this consolidation is happening at the 50% Fibonacci Retracement level. Therefore, there are increasing chances that the coin will have a strong bearish breakout in the near term, with the next target to watch being $2,111, its lowest point on Aug. 5.

Ethereum price chart | Source: TradingView

Ethereum’s weak fundamentals

In addition to weak technicals, Ethereum is also battling significant fundamental challenges. First, Ether ETFs have not seen strong inflows a few months after launch.

According to SoSoValue, these funds have had cumulative outflows of over $530 million, primarily due to the Grayscale Ethereum Fund. In contrast, Bitcoin ETFs have crossed the $20 billion inflow level, pointing to higher demand from institutional investors.

Ethereum is also seeing intense competition in areas it used to dominate like DeFi and NFTs. Data by DeFi Llama shows that Solana has crossed Ethereum in terms of DEX volume in the last seven days. It handled $10.87 billion compared to Ethereum’s $9.69 billion.

If the trend continues, Solana may surpass Ethereum this month. Solana has handled $23.9 billion so far, compared to Ethereum’s $24 billion.

This performance is largely driven by the popularity of Solana (SOL) meme coins like Dogwifhat, Bonk, and Popcat have become popular among traders. All Solana meme coins have gained over $10 billion in market cap.

Additionally, some high-profile Ethereum whales, including Vitalik Buterin and the Ethereum Foundation, have sold thousands of coins recently.

Therefore, a combination of weak fundamentals and technicals could push Ether lower in the coming weeks.

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Bitcoin

Polkadot (DOT) Gearing Up For ‘Massive Breakout’, Will It Skyrocket To $20?

Published

1 day ago

October 16, 2024

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Polkadot (DOT) has seen a price increase in the daily timeframe as the crypto market soars. Some market watchers suggested the cryptocurrency is gearing up for a breakout, setting new targets for the short and mid-term timeframes.

Polkadot Breaks Out Of Falling Wedge Pattern

Polkadot has registered a 10.9% increase in the last week following the market’s performance. DOT jumped from the $4.32 support zone to the $4.53 mark before retracing, registering a 4.8% daily surge in the early hours of Tuesday.

The cryptocurrency also saw a 56% rise in market activity, recording a $259.3 million daily trading volume. This increase has made DOT retest the upper trendline of a falling wedge pattern.

Market analyst CryptoBull360 stated that Polkadot is “getting ready for a massive breakout” from the bullish pattern after a long consolidation period. DOT has been moving within the falling wedge for the past seven months, consolidating between $4-$4.8 since August’s Black Monday.

polkadot

The analyst noted that the token had a strong bounce from the Point of Control (PoC) value zone, surging 11% in the last three days. Today’s jump saw the token break above the pattern’s upper trendline, momentarily sitting above it.

CryptoBull360 expects a retest of March highs if the token successfully breaks out of the falling wedge. To him, a 160% surge for the midterm is imminent, which would target the $11.46 yearly high.

Is DOT Preparing To Reclaim $20?

Crypto analyst Ali Martinez suggested that Polkadot could “be following Fantom’s footsteps.” Per the post, DOT’s chart looks similar to Fantom’s before its March performance.

Ahead of the Q1 rally, FTM rose two times to the upper range of its accumulation zone and retraced before its 263% bullish run toward its yearly high. If Polkadot were to follow, and its current pattern holds, DOT’s price could rise to $9.7 in Q4.

Polkadot

Following the surge, the cryptocurrency would face a pullback to the $6.5-$6.7 support zone before skyrocketing to $20 by Q1 2025, a level not seen since April 2022.

Despite the bullish forecasts, some investors remain cautious about Polkadot. A crypto trader noted that DOT followed Bitcoin’s lead like most of the market. The cryptocurrency surged to its daily high of $4.53 as BTC retested the $67,000 resistance level.

However, DOT quickly fell to Monday’s levels as BTC was rejected from its resistance zone. The trader questioned DOT’s 24-hour trend, stating, “BTC stops pumping, DOT rises a few percent, while most things don’t rise, as soon as it gets going, the entire market falls and DOT immediately loses everything it had previously gained.”

As of this writing, DOT is trading at $4.42, a 2.2% increase in the daily timeframe.

Polkadot, DOT, DOTUSDT

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Bitcoin

Blackrock CEO Is Right: Trump and Kamala Can’t Stop Bitcoin

Published

1 day ago

October 16, 2024

admin

I’ll admit – just a few years ago, I’d be shocked to hear myself say that the CEO of BlackRock is making good points about Bitcoin.

As head of the world’s largest asset manager, I assumed Larry Fink would be Bitcoin’s biggest critic. But compared to dismissive remarks on Bitcoin from other Wall Street leaders like Jamie Dimon, Fink’s perspective is a refreshing change.

If you think otherwise, yesterday’s earnings call proves it.

There, Fink declared, “I’m not sure if either president would make a difference” on Bitcoin’s growth,” adding “I don’t believe [Bitcoin’s rise] is a function of regulation.”

He went on to compare Bitcoin’s growth to much larger markets like mortgages, noting liquidity and transparency drives adoption more than rules.

Here's full Larry Fink quote on bitcoin/digital assets from the Q3 earnings call, he says bitcoin asset class in itself, they talking with institutions worldwide about allocation, dig assets remind him of the early days of the mortgage market (now $11T) and POTUS won't make dif pic.twitter.com/McvpW7cCnB
— Eric Balchunas (@EricBalchunas) October 14, 2024

It’s wild that the CEO of an $11 trillion company is not just embracing Bitcoin, but that he gets that Bitcoin thrives because it is an apolitical, decentralized, global money.

Regulation aside, Bitcoin marches on indifferently. Fink seems to grasp what many Bitcoiners don’t – that political winds don’t sway Bitcoin’s course long-term. Neither Donald Trump or Kamala Harris can stop Bitcoin from setting new all-time highs.

Bitcoin thrives on its own technical merits, not regulatory benevolence.

This independence was always its promise. Now, the world’s financial giants aren’t fighting it, but joining in. Bullish.

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