Bitcoin (BTC) May Have Bottomed, But Crypto Could Still See A “Black Swan” Event

In the eyes of analysts across the board, Bitcoin (BTC) decidedly bottomed at $3,150. They cite the fact that at $3,150, BTC was down 85% from its all-time highs, which is where the crypto asset has bottomed in previous cycles, coupled with the idea that industry fundamentals are better than ever.

And so far, this call has been vindicated, as BTC now sits at a casual $5,300. However, some pundits fear that a so-called “black swan” event could still strike this market, forcing Bitcoin and other cryptocurrencies to enter a freefall. Let’s take a look.

Related Reading: Crypto Professionals Predict $2,400 Bitcoin Bottom, Expect Infrastructure To Spark Bull Run

Why Crypto Could Head Lower From Here

Adamant Capital, an Alpha-seeking Bitcoin fund, recently released its latest report about the state of cryptocurrency markets. While the report, titled “Bitcoin in Heavy Accumulation,” had bullish undertones, its authors, which includes prominent analyst Tuur Demeester, weren’t remiss to not mention the cases for lower lows in this cycle.

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Adamant’s researchers and partners gave three/four cases for a collapse to new lows in the coming months.

First, hacks or failures of exchanges and other infrastructure providers. While the unwinding of the 2013 rally was partially a result of natural cycles, some of the drawdown was catalyzed by the decimation of Mt. Gox, hacked for hundreds of thousands of BTC. Adamant postulates that if a similar event occurs in the coming six months, Bitcoin markets could see a negative demand shock.

Second, a macroeconomic crash. Although cryptocurrencies have been lauded as non-correlated assets to stocks, it was proposed that a collapse in traditional markets could create a situation similar to the “2008 paradox” of the value of gold falling by 30%, even as demand surged.

Last, a “secondary Bitcoin mining capitulation.” Adamant remarks that while miners have already capitulated in this cycle already, if BTC “drifts down” to $3,000, this capitulation could be replicated as miners go out of business en-masse.

Bitcoin Looks Hopeful

More likely than not, however, Bitcoin has bottomed. As reported by NewsBTC previously, the same report showed clear signs that BTC is in accumulation.

It was explained that the Bitcoin Unrealized Profit/Loss (BUPL) indicator, which aims to estimate how much BTC holders’ are cumulatively profiting or losing, is reading at $13 billion in the positive. If the indicator is adjusted for the approximate number of lost coins, however, BUPL currently reads at $3 billion — 3% — of unrealized losses.

While this doesn’t sound all too important, as the measure is lesser-known, as Adamant explains, the recent BUPL movements confirms that Bitcoin has exited a “capitulation” phase, entering into a stage of “hope” (and fear). It is important to note that when BTC exited the “capitulation” phase during 2014 to 2016’s cycle, there was strong BUPL uptick, as we are experiencing now due to Bitcoin’s recent rally past $5,000.

What’s even more optimistic is that the 60-day volatility chart for BTC is currently sitting at 5%, a level not seen since late-2016, and even fell as low as 2% in early-November 2018. This, as Murad Mahmudov once explained, shows that a Bitcoin rally could be on the horizon.

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The post Bitcoin (BTC) May Have Bottomed, But Crypto Could Still See A “Black Swan” Event appeared first on NewsBTC.

Bitcoin (BTC) May Have Bottomed, But Crypto Could Still See A “Black Swan” Event

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

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Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run

The crypto markets have dropped slightly today after tepidly climbing higher over the past week. Despite this, Bitcoin (BTC) has been able to firmly establish its position within the $5,000 region and has not incurred any significant selling pressure after climbing towards $5,300.

Although many analysts are currently looking towards freshly formed levels of support and resistance for where BTC is heading next, one technical indicator may signal that the cryptocurrency is on the verge of another bull run.

Analyst: Bitcoin (BTC) a Good Buy Between $4,900 and $5,150 

At the time of writing Bitcoin is trading down less than 1% at its current price of just below $5,300. BTC is down slightly from its daily highs of $5,360, but did not incur any significant selling volume after nearing $5,400, which has historically proven to be a strong level of resistance for the cryptocurrency.

It now appears that Bitcoin is caught in a newly formed trading range between approximately $5,000 and $5,400, with its support level first being formed when BTC treated $5,000 as a level of strong support on April 11th.

Flood, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is looking towards the $4,900 to $5,150 price range as an area in which he will buy more Bitcoin.

“I’m a buyer from 5150 to 4900. That is all,” he concisely noted.

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Because Bitcoin has been unable to break above the upper boundary of the aforementioned trading range, it is probable that it will revisit the lower-$5,000 region in the near-future.

BTC May Be on The Verge of a Massive Bull Run 

Bitcoin’s relative strength index (RSI) – which is an important technical indicator that many analysts use to gain insight into whether or not an asset is overbought or oversold – is nearing a level that has historically marked the start of previous bull runs when broken above.

Cow Jones, a cryptocurrency trader on Twitter, discussed this in a recent tweet, pointing towards Bitcoin’s historical RSI action as evidence for why this level could signal an imminent bull run.

“Personally don’t use RSI much. However, this is an interesting fork in the road. Past bull market began with RSI above the boxed range,” he explained.

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As a relatively quiet weekend trading session wraps up and a fresh week begins, trader and investors alike will likely gain greater insight into where the crypto markets are heading next.

Featured image from Shutterstock.

The post Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run appeared first on NewsBTC.

Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange

Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run

The crypto markets have dropped slightly today after tepidly climbing higher over the past week. Despite this, Bitcoin (BTC) has been able to firmly establish its position within the $5,000 region and has not incurred any significant selling pressure after climbing towards $5,300.

Although many analysts are currently looking towards freshly formed levels of support and resistance for where BTC is heading next, one technical indicator may signal that the cryptocurrency is on the verge of another bull run.

Analyst: Bitcoin (BTC) a Good Buy Between $4,900 and $5,150 

At the time of writing Bitcoin is trading down less than 1% at its current price of just below $5,300. BTC is down slightly from its daily highs of $5,360, but did not incur any significant selling volume after nearing $5,400, which has historically proven to be a strong level of resistance for the cryptocurrency.

It now appears that Bitcoin is caught in a newly formed trading range between approximately $5,000 and $5,400, with its support level first being formed when BTC treated $5,000 as a level of strong support on April 11th.

Flood, a popular cryptocurrency analyst on Twitter, explained in a recent tweet that he is looking towards the $4,900 to $5,150 price range as an area in which he will buy more Bitcoin.

“I’m a buyer from 5150 to 4900. That is all,” he concisely noted.

https://platform.twitter.com/widgets.js

Because Bitcoin has been unable to break above the upper boundary of the aforementioned trading range, it is probable that it will revisit the lower-$5,000 region in the near-future.

BTC May Be on The Verge of a Massive Bull Run 

Bitcoin’s relative strength index (RSI) – which is an important technical indicator that many analysts use to gain insight into whether or not an asset is overbought or oversold – is nearing a level that has historically marked the start of previous bull runs when broken above.

Cow Jones, a cryptocurrency trader on Twitter, discussed this in a recent tweet, pointing towards Bitcoin’s historical RSI action as evidence for why this level could signal an imminent bull run.

“Personally don’t use RSI much. However, this is an interesting fork in the road. Past bull market began with RSI above the boxed range,” he explained.

https://platform.twitter.com/widgets.js

As a relatively quiet weekend trading session wraps up and a fresh week begins, trader and investors alike will likely gain greater insight into where the crypto markets are heading next.

Featured image from Shutterstock.

The post Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run appeared first on NewsBTC.

Technical Indicator Signals That Bitcoin (BTC) May Be on the Verge of a Bull Run

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
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Bitcoin Bull Tom Lee: Alt-Season May Be Underway, Crypto Assets To See Strong Rally

All eyes may be on Bitcoin (BTC), but other crypto assets have seen their fair share of gains since the start of 2019, sparking calls that what is known as “altseason” is right on the horizon. Per one prominent industry analyst, this cyclical industry event, which sees altcoins dramatically outperform the de-facto cryptocurrency lead, may actually be live as we publish this.

Related Reading: 2019 Crypto Alt Season Kicks Off With Over 20 Altcoins Doubling in Value

Historical Precursor To Altseason Is Showing Its Face

Fundstrat’s prominent head of research, Tom Lee, recently took to Twitter to remark that one of the “pre-conditions” for historical altcoin rallies is coming to life in the current cycle. This precursor, for those unaware, is a drop in the correlation between the crypto asset class at large and Bitcoin itself.

Per Lee’s chart, which cites data from Bloomberg, CoinMarketCap, and his own firm, a drop in the rolling 90-day correlation between the two subsets has preceded three altseasons — Mar 2016, early-2017, and late-2017/early-2018. An altseason, as defined by Fundstrat, is when a large percentage of altcoins in the “liquid universe” rally by over 200% in a short period of time.

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With preliminary indicators predicting a further collapse in the correlation between digital assets and BTC, an altseason might already be well underway. If you take a brief gander at CoinMarketCap or other analytics providers, this would seemingly be the case.

Binance Coin (BNB) recently surpassed its all-time high, in a brutal bear market no less, as Litecoin has rallied by over 200% since December’s low. Cardano, Ethereum, Tezos, and Basic Attention Token are among other prominent cryptocurrencies that have also seen jaw-dropping gains in the past 90 days. But, this surge might just be the tip of the iceberg.

As Lee explains, historical altseasons averaged gains of 1,100%. He adds that Fundstrat expects for the next rally in cryptocurrencies to “deliver returns similar to the 2017/2018 cycles.”

Bitcoin Likely To Rally Alongside Other Crypto Assets 

While Lee is hinting that the fabled altseason is finally here, this isn’t to say that he is bearish on Bitcoin. Far from, in fact.

In a recent CoinTelegraph Youtube segment, the analyst claimed that the Bitcoin Misery Index, a measure meant to determine the average sentiment of a cryptocurrency holder, reached 89 — the highest the signal has ever read in a bear market. In the eyes of Lee, this confirms that BTC is out of a bear market, as x > 67 readings only came during bull markets. He adds that as Bitcoin has held above its 200-day moving average for an extended period, he is fairly convinced that bears are finally biting the dust.

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The post Bitcoin Bull Tom Lee: Alt-Season May Be Underway, Crypto Assets To See Strong Rally appeared first on NewsBTC.

Bitcoin Bull Tom Lee: Alt-Season May Be Underway, Crypto Assets To See Strong Rally

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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An Unlikely Suspect May Push Bitcoin’s Market Cap to Over $1 Trillion

Although the crypto markets are currently caught in a bout of sideways trading, many analysts and investors are closely watching some newly formed technical levels for insight into where Bitcoin (BTC) is heading next.

While looking through a long-term lens, however, the recent price gains the markets have incurred will (hopefully) be a drop in the bucket, and one prominent venture capitalist now thinks Bitcoin alone will be worth $1 trillion during the next bull run.

VC: Bitcoin Bull Run Likely to Bring BTC’s Market Cap Up Towards $1 Trillion 

At the time of writing, Bitcoin’s market capitalization is roughly $93.4 billion, accounting for 52.8% of the aggregated crypto market’s total capitalization.

At the height of the late-2017 bull run, BTC’s market cap hit highs of $327 billion, nearly one-third of the coveted $1 trillion level that would be a monumental milestone for the cryptocurrency – if it were ever to be reached.

Chris Burniske, a venture capitalist and partner at Placeholder VC, spoke about the likelihood of BTC’s market cap hitting $1 trillion in a recent tweet, explaining that he believes it is a real possibility.

“Looking at the top 10 cryptoassets at the end of each year makes me think #bitcoin (blue) gets to $1 trillion on its own in the next bull market,” he noted.

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If this were to happen during the next bull run, Bitcoin’s price would have to surge to over $50,000 per BTC – a possibility that many analysts think is highly probable.

Could Retirees Be the Unlikely Group that Pushes BTC’s Market Cap to Over $1 Trillion?

Although most investors and analysts are looking towards institutional and corporate investors as the groups that have the ability to push the crypto markets to stratospheric prices, retirees in the United States may be an unlikely suspect that could have a huge impact on the markets.

A recently conducted survey found that nearly 90% of retirees over age 50 in the US either don’t know what Bitcoin is, or aren’t interested in learning more about the nascent technology.

This lack of interest amongst a group that controls a significant amount of US wealth likely stems from the technological complexity surrounding both the technology itself, and the methodological requirements for acquiring it.

Despite this, the advent of regulated and easy-to-use crypto exchanges, in combination with growing involvement in the industry from US regulatory authorities, may lead more retirees to direct a portion of their wealth into the crypto markets, which may act as fuel for the crypto market’s next parabolic price surge.

Featured Image from Shutterstock.

The post An Unlikely Suspect May Push Bitcoin’s Market Cap to Over $1 Trillion appeared first on NewsBTC.

An Unlikely Suspect May Push Bitcoin’s Market Cap to Over $1 Trillion

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange