Bitcoin

Analyst Points To Key Bitcoin Metric Indicating A Strong Uptrend—$90K in Sight?

Published

5 hours ago

October 19, 2024

Bitcoin (BTC) has been on an upward trend in recent weeks, showing positive price movements that appear quite appealing to investors.

According to a recent CryptoQuant analysis, a key metric, “active address momentum,” paints a bullish picture for the cryptocurrency.

Active Address Momentum Signals Upward Market Structure

Active addresses represent the number of unique addresses conducting transactions on the Bitcoin network, providing insights into network activity and investor engagement.

By applying a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to this indicator, the CryptoQuant analyst could assess the network’s growing momentum.

Bitcoin active addresses.

The analyst emphasized that the 30DMA has sharply risen recently and is closing in on the 365DMA. If a “golden cross” occurs, where the 30DMA surpasses the 365DMA, it could signal a further bullish trend for Bitcoin, dent reveals.

The CryptoQuant analyst added that Bitcoin has seen high transaction volumes since the second half of the year, supporting increased network activity.

While the current upward momentum is encouraging, the analyst also warned of potential volatility due to a “rising wedge” formation in Bitcoin’s price chart—a pattern that could lead to significant price swings if the wedge continues to tighten.

Bitcoin Rally To $90,000 In Sight?

Bitcoin’s recent price performance has added to the optimism among investors. Over the past week, the cryptocurrency has surged by over 10%, and it has continued its upward trajectory, rising by an additional 1.98% in the past 24 hours to trade at $68,708 at the time of writing.

Bitcoin (BTC) price chart on TradingView

This upward movement has helped Bitcoin break through a major resistance zone on its daily chart, sparking predictions of even higher prices.

One notable prediction came from crypto analyst Javon Marks, who recently shared his outlook on X. Marks highlighted that Bitcoin has broken out of a “descending broadening wedge” pattern. Statistically, this pattern suggests that when the resisting line is broken, the price objective is reached in 81% of cases.

In Bitcoin’s case, Marks believes that this breakout could push the price of Bitcoin to a range between $90,000 and even more than $96,000.

#Bitcoin (BTC) is now broken out of the displayed ‘descending broadening wedge’ pattern and statistics from this type of pattern states that in 81% of cases, the pattern’s price objective is reached when the resisting line is broken.
Bitcoin’s Price Objective:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
— JAVONMARKS (@JavonTM1) October 17, 2024

Featured image created with DALL-E, Chart from TradingView

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Adoption

El Salvador Survey Shows Bitcoin’s Lindy Effect in Action

Published

8 hours ago

October 19, 2024

admin

El Salvador’s misguided critics got some new ammunition this week.

A recent survey revealed just 7.5% of Salvadorans use Bitcoin for transactions, and that 92% of Salvadorans do not. But while some (cue: Steve Hanke) may look at these numbers and think “Oh, well that experiment failed,” I disagree.

Even putting aside the increased tourism, business activity, and international notoriety, El Salvador’s Bitcoin legal tender law has been a success.

El Salvador currently has a population of around 6.3 million, meaning 475,000 (7.5%) people are now using Bitcoin for transactions. The fact that almost half a million citizens now use BTC in their daily life for transactions is pretty impressive, but the Lindy effect means we can expect this figure to increase with time.

Considering the history of El Salvador, it was obvious from the beginning that the entire country was not going to start using this new payments technology from day one. El Salvador has a history of failed currency regimes. It takes time for any new system to build trust.

As I pointed out three years ago, I believe Bitcoin needs to become a store of value first before it can become a medium of exchange. Bitcoin today, even with it being a $1.4 trillion dollar asset, is still just a drop in the ocean compared to vast global wealth.

There is still a common consensus in the general public that Bitcoin is risky to get into, and that will need to change before more people in more countries start using it on a daily basis.

Bitcoin is still a new asset class that is growing up. The more it grows up, the more credibility it earns, the more price increases, the more innovation happens that sprouts new transactional and custody solutions to meet non-technical people where they are.

This will take a long time, but it’s a process that is underway.

I see many Bitcoiners online who are so bullish that they believe that adoption as an everyday transaction method will happen suddenly over the next few years, but this discounts real-world data, like this survey, which shows the process is much slower.

All this is to say that if Bitcoin is going to see worldwide merchant adoption and use by everyday individuals, we’re going to need to see a much higher price, Bitcoin will need to be easier to use, and more trusted than it is today.

Exactly how long will it take? I don’t know for certain. But if you think of it as a loading bar, we’re already 7.5% complete on our way to 100% of Salvadorans transacting in Bitcoin.

Remember, this is progress. Nothing happens overnight.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Altcoins

Market Data Hints At 500x XRP Rally In Upcoming Altcoin Season

Published

21 hours ago

October 18, 2024

admin

Este artículo también está disponible en español.

According to market analysis, XRP might be near to having a significant price blowup. The next altcoin season could go anywhere from 10x to the amazing 500x, experts believe.

Two important charts by renowned market analyst Kevin Cage on XRP’s relationship with Bitcoin’s supremacy in past bull markets form the basis of this favorable prediction.

The Last 2 Times $XRP Pumped
Was during the previous 2 Alt Seasons when #Bitcoin was drawing higher highs first.
2017: Over 500X (over 300x with Monthly Candle Bodies)
2021: 10x (During Lawsuit & Exchange Delistings)
Will history rhyme or will the future be different?… pic.twitter.com/V8nb9yh8qR
— Kevin Cage (@Kevin_Cage_) October 16, 2024

Recently, financial analyst Gary Cardone generated enthusiasm within the XRP community with a cryptic tweet suggesting a possible “launch” for the cryptocurrency.

Historically, Bitcoin’s market dominance has significantly influenced the performance of altcoins, such as XRP. When Bitcoin’s dominance declines, altcoins frequently experience significant increases.

We are waiting….I confirmed w/ authorities they are ready for you, this was the message;
XRP- LAUNCH PAD IS: Green…….
Proceed with launch codes…..
Repeat:
Launch pad is green lite for XRP.
XRP may Launch.
General Barnaby Anushopium https://t.co/JB2BMQDoHs
— Gary Cardone (@GaryCardone) October 15, 2024

This trend was apparent in previous altcoin seasons, as XRP flourished when Bitcoin’s market dominance diminished. Proponents such as Zach Rector assert that XRP is poised for a substantial breakout, bolstering the belief that the token’s future may be promising.

Historical Performance Indicates Potential

Cage emphasizes two critical epochs in XRP’s history. During the 2017 bull market, XRP surged more than 500-fold, increasing from $0.006 to $3.50 by early 2018. This increase occurred as Bitcoin’s dominance decreased from 95.91% to 35.46%. Altcoins including XRP surged significantly when Bitcoin fell, grabbing the chance to shine.

XRP market cap currently at $31 billion. Chart: TradingView.com

Though delisted from multiple exchanges and facing legal challenges from the US SEC, XRP had an incredible 10x gain in value during the 2021 bull run.

It increased from $0.18 to $1.96 with a corresponding decrease in Bitcoin’s supremacy, which fell from 73.51% to 39.54%. These historical examples demonstrate a distinct trend: XRP typically excels when Bitcoin declines.

XRP price up in the last seven days. Source: CoinMarketCap

Altcoin: Market Dynamics

Currently, Bitcoin’s dominance is approximately 58%, having recently increased. Should its dominance begin to wane once more, according to previous cycles, XRP may be poised for another substantial price surge.

A tenfold rise is possible, which would push XRP above $5. This shows that altcoin seasons are still a big reason for the token’s price changes.

Even though these predictions are getting a lot of attention, it’s still not clear how much XRP will rise. Things like the present lawsuits against Ripple could change how the market works.

The SEC’s recent appeal in its case against Ripple makes things more complicated. It makes the legal fight last longer and makes investors less sure of what will happen.

Community Discourse And Speculation

The XRP community is full of speculations. Cardone’s tweet made while using military imagery indicated some kind of upcoming development for XRP. Some members of the community seemed to take it as good news.

Supporters of XRP, such as Zach Rector, interpreted Garry’s tweet as an indication of the growing recognition of the altcoin. “Gary is hopping onboard the XRP train,” he remarked.

Featured image from HTX, chart from TradingView

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Bitcoin

Bitwise CIO Says 2025 Will Be ‘Exceptional’ for Bitcoin, Predicts BTC Will Hit a Six-Figure Price – Here’s Why

Published

1 day ago

October 18, 2024

admin

The chief investment officer of crypto asset management firm Bitwise believes Bitcoin (BTC) will hit six figures sometime next year.

In a new interview on the Altcoin Daily YouTube channel with Aaron Arnold, Bitwise CIO Matt Hougan says that multiple factors seem to be lining up to make 2025 a big year for Bitcoin.

“I think it’s going to be a new all-time high. I think it’s going to be six-figure Bitcoin for sure. And the question is, is it a one handle or is it a two handle? When I say for sure, of course, there are no guarantees. It’s a risky market. You should only invest what you can lose. But the setup for 2025 is really exceptional.”

Hougan says one of the reasons to be bullish on Bitcoin is the effects of the most recent halving event in April, when miners rewards were cut in half.

“This is about the period in Bitcoin’s history where you start to feel the effects of the halving.”

He also expects the spot Bitcoin exchange-traded funds (ETFs) “will be bigger” next year. Other bullish catalysts, he says, include the Fed cutting rates.

Hougan believes that Bitcoin may start hitting fresh all-time highs in less than three months.

“Our view at Bitwise is that crypto will end the year at new all-time highs. It was just a question of when the rally would begin. It’s possible the rally has already begun.”

He also says that investors have plenty of liquidity at the ready that they can sink into the crypto market.

“There is a really significant amount of money on the sidelines.”

Bitcoin is trading for $67,028 at time of writing.

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