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Bitcoin remains the largest cryptocurrency in focus but throughout this recent rally many altcoins that have led from the front. This shows that the market participants are diversifying away from Bitcoin and are buying altcoins that have strong potential.
Will altcoins continue to lead this rally or will Bitcoin pick up momentum? Let’s analyze the charts to find out.
The bulls are attempting to push Bitcoin (BTC) above the overhead resistance at $10,360.89. If successful, a rally to the long-term downtrend line at $11,500 is possible. The upsloping moving averages and the RSI in positive territory show that bulls have the upper hand.
Rager also mentioned CNBC’s latest embracement of Bitcoin. The number one US business channel is usually regarded as a contrarian indicator when it comes to BTC prices.
There is still a chance that the current rally will have legs. As reported by U.Today, the number of deposits to exchanges remains unchanged whilst market tops are usually marked by strong upticks.
Meanwhile, trader DonAlt has just posted a tweet where he predicts a drop back to the $7,500 level.
“Hedged most of my Bitcoin now in the grey. This has been my plan for weeks, sticking to it. We could go higher, but I think the temperature on CT and how far we’ve already run are inline with a pullback. Could be wrong, don’t care, do you. Watching $9.5k, $8.7k, $7.6k,” he explained.
Naturally, analysts are wondering what could have happened to make BTC incur such a quick and drastic change. For one thing, large trades have been recorded over the past 24 hours, suggesting that perhaps crypto whales are active within the space. Whale Alert, a crypto transaction tracker, has recorded more than $350 million in bitcoin traded over the past day through two very large transactions.
Of course, there are some analysts out there who want to bring everything back to bitcoin’s halving, which is scheduled for this coming May. Gavin Smith, chief executive officer of the crypto trading platform Panxora in Hong Kong, states:
The recent bullish impulse that the flagship cryptocurrency went through allowed it to hit the $10,460 resistance level. This price barrier is key to Bitcoin’s trend and could be the catalyst for the next major price movement.
As a matter of fact, closing above it would take BTC to make the first higher high since the peak of late June 2019, when it was trading at nearly 14,000. Upon the breakout point, investors would likely enter a FOMO (fear-of-missing-out) stage pushing this crypto to the next level of resistance between $11,500 and $13,000.
Individual customers can also access the service but it is restricted to the 23 states only for now. To qualify, such individuals must have been actively trading on Coinbase Pro, evident by an active account with recent deposit and withdrawal transactions. In addition, they must have reasonable digital assets in their Coinbase Pro account as collateral. Institutional customers on the other hand only need to be in the 23 states or the 9 other countries where the feature is available.
Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.
Currently, virtually all major altcoins are trading up significantly over a 24-hour period, with XRP rallying 8%, while Ethereum has posted a whopping 13% climb.
The current market leader, however, is Tezos, which has rallied 24% today and is showing no signs of slowing down anytime soon.
Big Cheds, a top cryptocurrency analyst on Twitter, spoke about Tezos’s insane rally in a recent tweet, while pointing to a chart that shows the significance of its parabolic uptrend.
“XRP should be around 30% higher. Every other major altcoin has reached the neckline. Most already had their breakout.
Why? Groups of alts move together. Example: large-cap alts move together, just on slightly different timelines. I try to identify the macro structure, and then pick the most attractive of the group….the lagger.
This approach is what led me to believe ETH was the best major setup this week. ETH is now proving this correct. Up 8% today while EOS & ADA [are] barely moving. Now XRP stands out as the lagger.”
The market for derivatives tied to cryptocurrencies is heating up, according to the latest available data.
Bakkt, which rolled out its bitcoin futures product in September 2019, saw volumes for the product top $37 million – a performance record for 2020, data from Skew shows.
26,000 Ethereum (ETH) coins worth $7.08 million has just been moved from Gemini to an unknown wallet.
This is according to a new alert by whale watching account, Whale Alert. There is no specific reason why the coins were moved neither has the true identity of the receiver divulged.
According to local news outlet Telegraaf, those behind the extortion scheme were threatening businesses with the letter bombs while demanding an undisclosed amount of bitcoin to stop sending those out. The specific amount was reportedly not disclosed as it could harm the ongoing investigation.
2019 was an interesting year for darknet markets (DNMs) and a number of marketplaces closed for a variety of reasons. Despite the closures, crypto payments on DNMs doubled for the first time in five years. Moreover, statistics from the blockchain analytics provider 1000x Group show digital currencies like bitcoin cash (BCH) have joined BTC’s dominant role within the deep web.
The Government Accountability Office (GAO), a U.S. Congress watchdog, published a report in response to a request from Rep. Kevin Brady (R-Tex.), evaluating the IRS’s existing approach and public guidance surrounding cryptocurrencies.
The office had three recommendations for the U.S. tax collector, as well as an additional related recommendation for the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department. Notably, one of its recommendations was to clarify that some of the IRS’s recent guidance is not binding or authoritative – and the agency rejected this recommendation.