Tag: bitcoin

17 maja, 2022 Wyłączone

TA: Bitcoin Holds Key Support, Why BTC Must Clear This Resistance

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Bitcoin corrected lower and tested the $29,000 support against the US Dollar. BTC must settle above the $30,500 resistance to start a decent increase. Bitcoin failed to gain pace above $31,000 and corrected lower below $30,000. The price is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $29,600 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could gain bullish momentum if there is a close above the $30,500 resistance. Bitcoin Price Faces Hurdles Bitcoin price started a downside correction from the $31,500 zone. BTC traded below the $30,000 support zone and the 100 hourly simple moving average. There was a move below the $29,500 level, but the bulls were active near the $29,000 zone. A low is formed near $29,060 and the price is now recovering losses. There was a clear move above the $29,500 level. The price cleared the 23.6% Fib retracement level of the recent decline from the $31,390 swing high to $29,060 low. Bitcoin is now trading above the $30,000 level and the 100 hourly simple moving average. There was a break above a connecting bearish trend line with resistance near $29,600 on the hourly chart of the BTC/USD pair. An immediate resistance is near the $30,300 level. It is near the 50% Fib retracement level of the recent decline from the $31,390 swing high to $29,060 low. A successful close above the $30,300 level could open the doors for a decent increase. Source: BTCUSD on TradingView.com The next major resistance is near the $31,400 level. A clear move above the $30,300 and $31,400 resistance levels might start a fresh increase in the coming sessions. The next key resistance could be near the $32,500 level, above which the price might rise towards $34,000. Fresh Decline in BTC? If bitcoin fails to gain pace above the $31,400 resistance zone, it could start a fresh decline. An immediate support on the downside is near the $29,600 level. The first major support is near the $29,000 level. A downside break and close below the $29,000 support might start a major decline. In the stated case, the price could decline towards the $89,000 level. Technical indicators: Hourly MACD – The MACD is now slowly gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $29,600, followed by $29,000. Major Resistance Levels – $30,500, $31,400 and $32,500.
16 maja, 2022 Wyłączone

Grayscale Launches European ETF While Urging SEC to Approve GBTC Conversion Into Spot Bitcoin ETF

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Grayscale Launches European ETF While Urging US SEC to Approve GBTC Conversion to Bitcoin ETFGrayscale Investments has announced the launch of an exchange-traded fund (ETF) in Europe. The company’s Future of Finance UCITS ETF will list on the London Stock Exchange (LSE), Borsa Italiana, and Deutsche Börse Xetra. Grayscale Launches ETF in Europe Grayscale Investments, the world’s largest digital asset manager, announced Monday the launch of its first European […]
16 maja, 2022 Wyłączone

This Expanding Triangle Pattern Could Be The Last Hope For Bitcoin Bulls

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Bitcoin broke through support and plunged to the lowest prices seen since 2020. However, despite all the fear the drop has caused, it could be the last low before the top cryptocurrency continues its bull run. Here is why an extremely rare Elliott Wave expanding triangle pattern could be the last hope Bitcoin bulls have for new highs before a bear market. Ralph Nelson Elliott And His Theory On How Markets Move Ask most crypto investors and they would probably agree: we are in a bear market. However, based on the guidelines of Elliott Wave Theory, the last year and a half of mostly sideways could be part of one powerful, confusing, and rare corrective pattern. Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up Elliott Wave Principle was first discovered by Ralph Nelson Elliott in the 1930s. The theory believes all markets move in the direction of the primary trend in the same five-wave pattern. Odd-numbered waves move up with the primary trend as well, while even-numbered waves are corrective in nature that move against the trend. Is Bitcoin trading in an expanding triangle? | Source: BTCUSD on TradingView.com In the chart above, BTCUSD could potentially be trading in an expanding triangle. In Elliott Wave Theory, triangles of any kind only appear immediately preceding the final move of a sequence. During the bear market, a triangle appeared in place of the B wave before breaking down to the bear market bottom. Identifying A Bullish Expanding Triangle Pattern Triangles can contract, expand, descend, ascend, and even take on some “irregular” shapes. The expanding triangle pictured above and below should in theory only occur before the final wave five impulse up. If that’s the case, the bull run could continue once the bottom of the E wave is put in. Each subwave is a Zig-zag similar to wave two  | Source: BTCUSD on TradingView.com An expanding triangle is characterized as having five waves that sub-divide into ABCDE corrections. Waves A, C, and E are against the primary trend, while B and D waves are with the primary trend. Each sub-wave further sub-divides into three-wave patterns called a Zig-zag. Zig-zag patterns are sharper, and more commonly appear in wave two corrections. The fact that an expanding triangle has five of these brutal corrections in two different directions makes it especially confusing and frustrating. Expanding triangles only form under the most unusual market conditions. Related Reading | Bitcoin Bear Market Comparison Says It Is Almost Time For Bull Season Extreme uncertainty drives expansive volatility in both directions. Both sides of the trade are repeatedly stopped out of trades, adding to frustration. By the end of the pattern, order books are thin and easily overpowered. Decidedly bearish sentiment squeezes prices up quickly causing an upward breakout of the pattern and continuation of the bull run. The chase and FOMO creates the conditions necessary for wave five. Why Bitcoin Could Still Have Wave Five Ahead The only problem is that there is no telling if this is the correct pattern, or if Bitcoin is in (or possibly just completed) a wave four according to Elliott Wave Theory. Knowing that triangles only appear before the final move of a sequence helps improve the changes of this expanding triangle being valid. However, it is more important to understand the characteristics of each wave. Corrective waves result in ABC or ABCDE corrections (along with some more complex corrections) that move against the primary trend. Between corrections is an impulse wave up, in a five-wave stair-stepping pattern. After the bear market bottom, a new trend emerges starting with wave one. Wave two is often a sharp, Zig-zag style correction that retraces most of wave one. A bear market will move below the zero line on the MACD  | Source: BTCUSD on TradingView.com The lack of a new low creates the confidence for more market participants to join, making wave three the most powerful and extended of all. Wave four typically moves sideways and lacks the same severity of the wave two correction. Elliott said that wave four represents hesitancy in the market before finishing the trend. Both wave two and wave four tend to bring the MACD back down to the zero line before reversing higher – a setup clearly depicted above. Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015 When the hesitancy ends, wave five typically matches the length and magnitude of wave one. But after such a long and nasty wave four correction, any wave five has the potential to extend similar to wave three. If this were the case, the expanding triangle pattern created the perfect shakeout of both sides of the market. Here is a 🧵 on my full Elliott Wave analysis on #Bitcoin and why I don’t believe there is a bear market – and why I expect the last leg up any day now. — Tony „The Bull” Spilotro (@tonyspilotroBTC) May 15, 2022 Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com
16 maja, 2022 Wyłączone

Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

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Bitcoin has now entered perhaps one of its most bearish periods ever. The cryptocurrency which has held up quite nicely through all of the market scandals is seeing even more bad news ahead. Previously, it has seen a good number of consecutively red closes that have solidified its entrance into a bear market. However, this time around, it seems that the digital asset is ready to set another record, but this time for the worse. Seven Red Candles Anyone that has been following the market recently knows that Bitcoin has been seeing multiple consecutive red closes. This has not been a cause for alarm though since the digital asset has a history of marking bearish trends like these and still coming out on top. But this would prove to be a trend like no other after the cryptocurrency had seen its 7th consecutive red close. Related Reading | Bitcoin Recovers Above $30,000, Has The Bottom Been Marked? This would make it the first time in history that bitcoin is marking such a trend. However, what is even more important is what seven consecutive red candles mean for the cryptocurrency. With the digital asset still being a seller’s market, a close like this could trigger even more sell-offs as investors worry about the future of the coin in the short term. Furthermore, with so many red candles showing on the charts, it could indicate that there is more downtrend left to follow. An example of this was marked in the 2014 bear market that saw bitcoin record four consecutive red closes. What had followed was a single green close that would prove to give way to an even more brutal downtrend. Now, if bitcoin were to mirror this move from 2014, then another plunge below $30,000 may be imminent. BTC declines to $29,500 | Source: BTCUSD on TradingView.com Not All Bad News For Bitcoin While seven consecutive red closes can often paint a bearish picture, this is not always the case. It is well-known that the digital asset can record the most bearish patterns right before recovery. Oftentimes, a tremendous recovery. An example of this was in August of 2018 when the market had marked six consecutive red closes. Since the market had been in a stretched-out bear market at that point, it was assumed that what would follow this could only be more losses. However, this would prove to not be the case as the digital asset had gone on to record five consecutive green closes. Related Reading | Investors Make For Stablecoin Hills As USDT Volume Touches All-Time High Now, this was not the start of the next bull market but it showed that as much as these trends can signify more downtrends to come, they can also be a precursor of a good recovery. Expectations for bitcoin this time around are great as the digital asset has been able to now break above $30,000, although it has trouble maintaining its position above this point. The price of BTC is trending around $29,600 at the time of this writing. This puts it slightly above its 5-day simple moving average but continues to show bearish trends across other indicators. Featured image from Cryptonaute, chart from TradingView.com