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Contrary to Vays, veteran trader Peter Brandt believes that Bitcoin can drop to sub $1,000 levels. We had warned our readers to not get overly bullish when targets of $20,000 and higher were being projected a few weeks back. Similarly, we suggest traders not get discouraged by ultra-low targets. At the same time, traders should avoid buying just because something has declined sharply. It is better to wait and buy after some reversal signs are seen. Let’s analyze the charts and spot the critical levels to watch out for.
- Bitcoin’s short-term chart has formed a textbook Adam and Eve bottom, which is a good indicator that a bottom is forming and a subsequent reversal will rapidly take place.
- The funding rate on BitMEX, which hit extremes near local bottoms and tops, has reached a ridiculously high level for shorts, meaning that they pay longs. This suggests that market is leaning very short, something often seen near bottoms.
- And lastly, Filb Filb wrote that the “Bid side of the order book has massively recovered,” suggesting there remains buying demand in the crypto markets.
The main catalyst of the sudden 50% decline in the price of Bitcoin within a span of eight hours was the 9.99% drop of the Dow Jones Industrial Average. The United States stock market experienced its worst sell-off since 1987, as panic over the coronavirus pandemic intensified to unprecedented levels.
The implementation of Lightning Network in 2018 was seen as a step in the right direction, one that would drastically improve Bitcoin’s scalability. This solution claims to enable higher transaction speeds within the network, enabling it to perform substantially faster and with greater efficiency.
As the crypto community grapples with the situation to understand the immediate consequences, some pessimistic people have opined that Bitcoin may not be as good a store of value as has been widely advertised over the last couple of years.
However, it’s people like Erik Voorhees who have a clear understanding of the crypto market that still holds a rather optimistic opinion. In a twitter post, Erik who is the CEO of the crypto exchange ShapeShift sought to dispel the notion that Bitcoin has failed as a store of value.
A closely-followed whale who earned $20 million in realized profits on Bitfinex in December through January is adding his two cents on the Bitcoin (BTC) and crypto market crash.
The whale, who goes by the name Joe007, recently warned that “phantom money” pushed BTC to its February high of just over $10,000. Now, he says he believes Bitcoin will hit final low when “real demand” for the leading cryptocurrency finally kicks in.
The budding market for cryptocurrency-backed loans met its first big stress test this week as bitcoin (BTC) dropped 40 percent and lenders demanded additional collateral from borrowers.
Yesterday, the price of Bitcoin crashed by over 40%, following the emerging global market crisis. Before this fatal plunge, Bitcoin showed signs of weakness consolidating around the $8000 mark for three days.
Meanwhile, this whole bearish scenario started from a mid-February high of $10,500, which was later confirmed by a bearish head-and-shoulds pattern, which played out around $8500 last week.
This technical formation is indicative of a consolidation period where the price of an asset is contained within two converging trend lines. By measuring the distance between the initial high and low of the pattern, the symmetrical triangle estimates an 84% target upon the breakout point.
As it can be seen on the weekly chart, Ether seems to have breached the lower trendline of the symmetrical triangle. The downward move could trigger a full-blown trend reversal from bullish to bearish taking Ethereum to $20.5.
- 1. Crypto Markets Weather First Major Global Crisis
- 2. Everything’s Trading at a Major Discount Before the Halving
- 3. Strong Bull Markets Usually Follow Steep Corrections
Yesterday’s meltdown of the crypto markets was not entirely negative, Bitcoin, although price dropped substantially, has remained resilient through its first financial crisis. The network has stayed up, and even made a higher low than 2018, and the halving is less than 60 days away.
Following three consecutive days of losses shedding $50 billion off the cryptoconomy, digital currency markets lost another $44 billion in a matter of hours on March 12. Not only did ‘Black Thursday’ wreck traditional markets, but gold and bitcoin felt the brunt as well. Amidst the sell-off, the whistleblower Edward Snowden said that he “felt like buying bitcoin” as he believes the price drop was invoked by “panic” rather than fundamentals.
United States President Donald Trump declared a national emergency on Friday because of the fast pacing spread of the coronavirus. He stated this move will make up to $50 billion available for the fight against the virus.
Trump stressed today’s action also includes urging hospitals to make “emergency preparedness plans” active and to provide the Department of Health and Human Services with the power to give up laws so they can profoundly offer medical professionals flexibility in dealing with the virus.
Hackers are creating fake coronavirus tracking applications that trick users into downloading malware.
The CovidLock ransomware forces to victims to pay $100 in bitcoin in order to gain access to their device.
Hackers are taking advantage of the coronavirus panic by using fake Android tracking applications to ransom users in crypto.
Aurus, a company creating a gold-backed token protocol, announced it has finalized a funding agreement with Dubai-based Silver Rock Group (SRG) to pre-subscribe for €1,000,000 worth of AurusCOIN (AWX) tokens at the company’s upcoming Initial Exchange Offering (IEO).
AWX derives 70% of the revenue created from fees generated by the company’s AurusGOLD (AWG) token, a 100% gold-backed cryptocurrency on the Ethereum blockchain.