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PentarhUdi, a well known technical analyst and trader who has deftly predicted multiple Bitcoin market cycles in the past, initially estimated that Bitcoin price would plunge from $10,500 to $5,800 in the first week of February.
On February 10, 2020, the trader explained that based on candlestick wicks, $10,500 was technically a lower low at a macro level and given that this level was a historically heavy resistance, a drop to $5,800 was highly probable.
Citing PentarUdi’s $10,500 to $5,800 prediction, crypto whale and Bitfinex trader Joe007
The four-day increase has helped bitcoin claw back some of its losses during the first three months of the year, when the spreading coronavirus and increasingly dire economic prospects sparked a flight for cash among investors in both traditional and digital-asset markets.
Joe DiPasquale, CEO of BitBull Capital, a San Francisco-based hedge fund specializing in cryptocurrencies, said he saw no clear driver of Thursday’s move. Market signals show a growing conviction among bitcoin traders that prices won’t fall below $6,000 in the short term, but rallies above $7,000 appear to be drawing in sellers, he said.
Bitcoin price finally crossed the barrier at 7,000 and extended the bullish action above $7,200. The return of the bulls in the American session followed a technical breakout above a key 61.8% Fibonacci level taken between the last swing high at $7,292 to a swing low at $5,849. The surge to the weekly high was rapid just as the immediate reversal currently testing the 61.8% Fibo support level.
Broadly, the Bitcoin Futures market can be divided into two halves – Regulated exchanges like the Chicago Mercantile Exchange [CME] and Bakkt, the Intercontinental Exchange’s [ICE] digital assets’ platform and Unregulated exchanges like BitMEX, Binance, and OKEx, among others. The former are not only under strict oversight by the Commodity and Futures Trading Commission [CFTC], their customers are also directly affected by the United States Federal Reserve.
The cryptocurrency market is currently in an uninteresting state, especially for top cryptocurrency prices. However, there seems to be a ray of hope. Data from the on-chain data platform Santiment shows that the top two cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) have daily address activity that suggests a bullish future for the two cryptocurrencies, particularly for ETH.
- Bitcoin has been forked many times.
- Bitcoin Cash is the highest-profile and most contentious hard fork.
- Bitcoin (BTC) remains by far the most dominant chain.
Most cryptocurrency projects that are well-known off-shoots of Bitcoin often followed contentious debates around the direction of the code. Bitcoin Cash was the first high-profile hard fork of Bitcoin and was created in mid-2017. It is regarded as a contentious fork, meaning it occurred because there were competing visions about the future development of the network.
- FEAR OF FIAT INFLATION IS PUSHING PEOPLE INTO CRYPTO
- PEOPLE ARE LOOKING FOR CRYPTO DEALS
- PLATFORM FUNDAMENTALS REMAIN STRONG
Prices across the crypto space are moving into positive territory. Bitcoin is up five percent over the past twenty four hours and many alt coins are breaking weekly highs. Several factors are at play which are pushing up these values.
“Moreover, one can argue that the expected duration of unemployment matters more than the unemployment rate itself, especially if the recovery is quick (and so duration is short). These are very large numbers by historical standards, but this is a rather unique shock that is unlike any other experienced by the U.S. economy in the last 100 years.”
According to the same trader who nailed the $0.13 call, XRP is currently in the midst of an Elliot Wave correction, which will likely see the cryptocurrency fall towards $0.08-0.09, then continue lower to $0.05-0.06 to establish a long-term bottom in the middle of 2020.
Their steady performance also comes in times when Wall Street crashes, summarizing a terrible first quarter, and thousands of people are losing their jobs.
Gold, primarily regarded as a safe haven asset, holds relatively well in the current times of economic uncertainty. At least according to historic behavior during the most prominent financial collapses. And what about Bitcoin? There is a lot of going on discussions about whether BTC is a safe-haven asset, just like gold or not. Bitcoin now has its first major financial crisis.
- Economic uncertainty owing to the spread of COVID-19 has sent many investors rushing to the relative safety of stablecoins.
- Asset allocation has been highly variable, with Binance and Huobi coins capturing the lion’s share and DAI falling short.
- Ethereum users locked up ETH in Tether while TRON users moved assets in the opposite direction.
A lot has changed since the coronavirus pandemic swept the globe as it has caused a wide range of negative effects on the world’s economy. On March 30, the blockchain surveillance firm Chainalysis published a report that shows how the cryptoconomy is faring from merchant acceptance to gambling, and darknet purchases as well. The researcher’s study highlights that the covid-19 environment has “brought about a significant change” by impacting crypto-based spending habits.
Bitcoin increased by a whopping 9% over the past 24 hours of trading as the cryptocurrency surged to a high of around $7,250. It has since dropped lower but is battling to remain above the $6,800 level.
If Bitcoin can actually close above $6,800, this should set up a fantastic 2 weeks ahead as it would be breaking a consolidation pattern that has trapped the cryptocurrency since the market collapse.
NIFA, a self-regulatory organization affiliated with China’s central bank, said Thursday that foreign-based crypto exchanges have faked trading volume, according to its own data analysis. It also noted that some trading platforms compared digital currencies to safe haven assets like gold and silver, but a recent tumble in the crypto market caused significant losses for investors.
“In our sampling analysis based on trading data from some of the exchanges, the daily trading turnover rate for more than 40 coins is over 100 percent, while more than 70 coins’ rate exceeds 50 percent,” NIFA said. “Despite the relatively low price and small market value, there have been massive trading volumes.”