🚀 Ether Leads the Charge 🚀
Happy New Year, Everyone 🙌
The crypto community will happily put 2018 in the rearview. Our team has faith that 2019 will be an extremely profitable time for new market entrants.
As we have outlined in our Dollar Cost Average Analysis, our plan is too slowly accumulate Bitcoin with weighted percentages at certain price points. We are implementing this strategy because our belief is that the prices we will be able to purchase $BTC at during 2019 will be highly enviable entries in the coming years. Although we are skeptical of new all time highs being achieved in 2019, we do think the market, as a whole, should return nicely over the course of this year as momentum is achieved before the next bull run ensues.👍
The current price of Bitcoin is $3817, with 24 hour volume leveling at 4.7 billion USD. Bitcoin has consolidated in a tight $400 price range between $3500-$3900 for about a week.
At this point in time, price action seems to be pointing in favor of the bulls. We mentioned the 3500’s in our prior update as a significant area of support, and it provided buyers with a motivated entry. In our opinion, Bitcoin looks prepped to break out above the 7-day high of $3960.
We are adding to our current exposure to crypto with about 50% fiat / 50% crypto weighted percentages. We will look to add more on a break out and close above $3960 on a 4hr time frame or higher. A break below $3500 would signal renewed bearish pressure and we would return to net short positions at that time. 📈
Ethereum has stolen the show as of late by posting yet another green day, up over 11% over the course of the past 24 hours. This has been a continuation of a nearly 80% rally from 2018 lows for Ether as it has retaken the #2 spot for total market cap of cryptos. We believe some of this rally may be spurred on by the upcoming Constantinople fork in the Ethereum protocol, which will be occurring on the 16th of January. This will be an upgrade to the Ethereum blockchain as it will decrease the block time, making the network faster.
We will be looking for further consolidation on Ether to accumulate a larger position. The upcoming Constantinople fork has been a long awaited protocol update that will be very promising for the long-term success of the Ethereum blockchain.
Happy New Year, Everyone 🙌
The crypto community will happily put 2018 in the rearview. Our team has faith that 2019 will be an extremely profitable time for new market entrants.
As we have outlined in our Dollar Cost Average Analysis, our plan is too slowly accumulate Bitcoin with weighted percentages at certain price points. We are implementing this strategy because our belief is that the prices we will be able to purchase $BTC at during 2019 will be highly enviable entries in the coming years. Although we are skeptical of new all time highs being achieved in 2019, we do think the market, as a whole, should return nicely over the course of this year as momentum is achieved before the next bull run ensues.👍
The current price of Bitcoin is $3817, with 24 hour volume leveling at 4.7 billion USD. Bitcoin has consolidated in a tight $400 price range between $3500-$3900 for about a week.
At this point in time, price action seems to be pointing in favor of the bulls. We mentioned the 3500’s in our prior update as a significant area of support, and it provided buyers with a motivated entry. In our opinion, Bitcoin looks prepped to break out above the 7-day high of $3960.
We are adding to our current exposure to crypto with about 50% fiat / 50% crypto weighted percentages. We will look to add more on a break out and close above $3960 on a 4hr time frame or higher. A break below $3500 would signal renewed bearish pressure and we would return to net short positions at that time. 📈
Ethereum has stolen the show as of late by posting yet another green day, up over 11% over the course of the past 24 hours. This has been a continuation of a nearly 80% rally from 2018 lows for Ether as it has retaken the #2 spot for total market cap of cryptos. We believe some of this rally may be spurred on by the upcoming Constantinople fork in the Ethereum protocol, which will be occurring on the 16th of January. This will be an upgrade to the Ethereum blockchain as it will decrease the block time, making the network faster.
We will be looking for further consolidation on Ether to accumulate a larger position. The upcoming Constantinople fork has been a long awaited protocol update that will be very promising for the long-term success of the Ethereum blockchain.
📈Crypto Markets Rally 30% from 2018 Lows📈
Hello Everyone,
The current price of Bitcoin is $4032 (Bitmex Pricing), with 24 hour volume leveling around 5.7 billion USD (via Coin Market Cap). Bitcoin rose nearly 4.5% over the course of the past 24 hours, resulting in a $300 price increase 🏦.
Bitcoin has now rallied nearly 30% from 2018 lows 🐳, which was achieved on December 15th, and crypto itself has seen a 36% increase in total market cap as 36 billion USD has flowed back into the market.
Our team is short-term bullish in recent price action. Bitcoin is a leading indicator for how we believe alts will perform. As of right now, Bitcoin has broken above multiple points of control, including one such level around $3800 💪.
We believe this rally will continue so long as $BTC can remain above $3966 (Bitmex Pricing) on 4hr time frames and higher⏳.
At this point in time, to generate profit from greater potential upside (90% crypto, 10% fiat), our team is adding to its longs and increasing its exposure to alts. We will be utilizing the index strategy that we have previously mentioned to aggregate ourselves across top 30 market cap cryptos.
Case and point, we want to have high exposure to alts, here, as they typically act with more volatility than $BTC, in whatever way the market trends. If $3966 (Bitmex Pricing) doesn’t hold, then we will hedge ourselves neutral with shorts to protect against ensuing downside ❌.
We will circle back with you guys this afternoon (PM U.S. Central Time) to discuss updated price action and relevant news in the space.
Hello Everyone,
The current price of Bitcoin is $4032 (Bitmex Pricing), with 24 hour volume leveling around 5.7 billion USD (via Coin Market Cap). Bitcoin rose nearly 4.5% over the course of the past 24 hours, resulting in a $300 price increase 🏦.
Bitcoin has now rallied nearly 30% from 2018 lows 🐳, which was achieved on December 15th, and crypto itself has seen a 36% increase in total market cap as 36 billion USD has flowed back into the market.
Our team is short-term bullish in recent price action. Bitcoin is a leading indicator for how we believe alts will perform. As of right now, Bitcoin has broken above multiple points of control, including one such level around $3800 💪.
We believe this rally will continue so long as $BTC can remain above $3966 (Bitmex Pricing) on 4hr time frames and higher⏳.
At this point in time, to generate profit from greater potential upside (90% crypto, 10% fiat), our team is adding to its longs and increasing its exposure to alts. We will be utilizing the index strategy that we have previously mentioned to aggregate ourselves across top 30 market cap cryptos.
Case and point, we want to have high exposure to alts, here, as they typically act with more volatility than $BTC, in whatever way the market trends. If $3966 (Bitmex Pricing) doesn’t hold, then we will hedge ourselves neutral with shorts to protect against ensuing downside ❌.
We will circle back with you guys this afternoon (PM U.S. Central Time) to discuss updated price action and relevant news in the space.
😴Market Hangs in Limbo after Constantinople Delay😴
Bitcoin closed at $3607 (Bitmex Pricing) today, with 24 hour volume leveling around 5.3 billion USD.
Bitcoin’s close doesn’t inspire either a bullish or bearish bias for the time being. This type of price action doesn’t bode well for bulls as it appears support in the mid $3000’s is beginning to wane 😕.
Our analysis from this morning remains unchanged; therefore, our team will still hold its hedges in place from $3900. We expect more downside to ensue for $BTC and alts alike.
Some of the recent sell off may be partially caused by Ethereum’s Constantinople delay. A critical vulnerability in the blockchain upgrade was discovered by a smart contract audit firm on Tuesday.
The long-awaited Constantinople upgrade may have propelled Ethereum’s 100% rally from 2018 lows, but its delay may have negatively impacted the price of Ether as well as the alt market.
With a long-term scope in mind, the discovery of the incorrect code is a good thing for the crypto space as no real harm was able to transpire from faulty code.
Will the implementation of Constantinople provide a resurgence to crypto markets? Unfortunately, our team does not believe this will be the case.
Nonetheless, it is important for this space to continue the battle for smoother operability and system awareness as the crypto sphere continues to evolve.
Bitcoin closed at $3607 (Bitmex Pricing) today, with 24 hour volume leveling around 5.3 billion USD.
Bitcoin’s close doesn’t inspire either a bullish or bearish bias for the time being. This type of price action doesn’t bode well for bulls as it appears support in the mid $3000’s is beginning to wane 😕.
Our analysis from this morning remains unchanged; therefore, our team will still hold its hedges in place from $3900. We expect more downside to ensue for $BTC and alts alike.
Some of the recent sell off may be partially caused by Ethereum’s Constantinople delay. A critical vulnerability in the blockchain upgrade was discovered by a smart contract audit firm on Tuesday.
The long-awaited Constantinople upgrade may have propelled Ethereum’s 100% rally from 2018 lows, but its delay may have negatively impacted the price of Ether as well as the alt market.
With a long-term scope in mind, the discovery of the incorrect code is a good thing for the crypto space as no real harm was able to transpire from faulty code.
Will the implementation of Constantinople provide a resurgence to crypto markets? Unfortunately, our team does not believe this will be the case.
Nonetheless, it is important for this space to continue the battle for smoother operability and system awareness as the crypto sphere continues to evolve.
🎉Fidelity Set to Launch Custody Service🎉
Hello everyone,
The current price of Bitcoin is $3441.5 (Bitmex Pricing), with 24 hour volume leveling around 5.8 billion USD.
Bitcoin, at this point, has respected support from $3340-3405, which was outlined in Monday’s update. Buyers haven’t been overwhelmingly present at these levels, which doesn’t provide us with too much confidence in $BTC for the short-term.
Our previous analysis was centered on the idea that $BTC would likely head towards 2018-2019 lows.
That being said, we wish to highlight one of our market hypotheses:
We are currently comparing the conclusion of the 2017-2018 crypto bull market to the current price action of the bear market 📑. Price exhaustion was visible in late 2017/early 2018 as $BTC formed rising wedges. Volume during that period began to subside.
We believe there is a chance that $BTC may be acting in a similar way, but with opposite price action at these levels (see Bull/Bear Comparison Below👇).
Bitcoin experienced a potential selling climax during the middle of November that has now been followed by consolidation at these levels.
We think seller exhaustion, similar to how buyers grew exhausted near the 20k mark, is occurring. You can see a chart-based explanation below👇.
To coincide with this opinion, Bitcoin is still operating within the range we highlighted on Monday (see ‘Updated BTC analysis chart below👇). We are not sure whether $BTC has printed a final bottom, but we have found reason to present you with our existing bearish outlooks 🐻 and our bullish outlooks 🐂.
In other news, Fidelity plans to launch its Bitcoin custody service in March; this will allow one of the largest asset managers in the world to provide a custodial solution to its clients, which should offer a higher form of security to those who want to hold Bitcoin through Fidelity. However, this does not mean that Fidelity will be able to distribute Bitcoin to its clients.
We will keep you updated on our crypto market analysis as the week rolls on!👊
Hello everyone,
The current price of Bitcoin is $3441.5 (Bitmex Pricing), with 24 hour volume leveling around 5.8 billion USD.
Bitcoin, at this point, has respected support from $3340-3405, which was outlined in Monday’s update. Buyers haven’t been overwhelmingly present at these levels, which doesn’t provide us with too much confidence in $BTC for the short-term.
Our previous analysis was centered on the idea that $BTC would likely head towards 2018-2019 lows.
That being said, we wish to highlight one of our market hypotheses:
We are currently comparing the conclusion of the 2017-2018 crypto bull market to the current price action of the bear market 📑. Price exhaustion was visible in late 2017/early 2018 as $BTC formed rising wedges. Volume during that period began to subside.
We believe there is a chance that $BTC may be acting in a similar way, but with opposite price action at these levels (see Bull/Bear Comparison Below👇).
Bitcoin experienced a potential selling climax during the middle of November that has now been followed by consolidation at these levels.
We think seller exhaustion, similar to how buyers grew exhausted near the 20k mark, is occurring. You can see a chart-based explanation below👇.
To coincide with this opinion, Bitcoin is still operating within the range we highlighted on Monday (see ‘Updated BTC analysis chart below👇). We are not sure whether $BTC has printed a final bottom, but we have found reason to present you with our existing bearish outlooks 🐻 and our bullish outlooks 🐂.
In other news, Fidelity plans to launch its Bitcoin custody service in March; this will allow one of the largest asset managers in the world to provide a custodial solution to its clients, which should offer a higher form of security to those who want to hold Bitcoin through Fidelity. However, this does not mean that Fidelity will be able to distribute Bitcoin to its clients.
We will keep you updated on our crypto market analysis as the week rolls on!👊
🇮🇷State-Backed Iranian Crypto Pushes Industry Forward🇮🇷
Hello everyone,
The price of Bitcoin is currently $3410, with 24 hour volume leveling around 5.8 billion USD.
Due to continued market indecision, various crypto markets have taken a slight step back in the past 24 hours 📉. The crucial levels we have outlined this week remain in tact.
With each day of sideways action, we lean more towards the market hypothesis that price action could continue down through support😖. During this bear market, low volume and sideways action have been indicative of a high-volume downward move, which could happen in the near future (see updated $BTC analysis below👇).
We will still wait to enter net short positions until $BTC cracks $3330 on a significant time frame (4hr or higher).
In other news, a gold-backed cryptocurrency, the Peyman (Persian word for covenant), has been launched in Iran. Four banks and the Gohgnoos company will utilize the Peyman to tokenize bank assets and excess properties. The launch of the Peyman comes amidst speculation that Iran is developing its own state-backed cryptocurrency.
Due to economic sanctions imposed by the United States, Iran’s ability to conduct business internationally has been crippled 🆘. Last year, Iran identified cryptocurrencies as a means to circumvent the sanctions.
The introduction of the Peyman also comes directly after Iran’s central bank issued new cryptocurrency regulations. While there are still restrictions on Bitcoin, Iran gave the green light to ICO’s, exchanges, wallets, and cryptocurrency mining.
This development is not surprising to our team. One of the most important value propositions of this space is the accessibility to censorship resistance money. This could reshape the effectiveness of economic sanctions imposed by the world’s elite nations as smaller nation states resort to using cryptocurrency and blockchain to remain relevant on the international economic scene.
Hello everyone,
The price of Bitcoin is currently $3410, with 24 hour volume leveling around 5.8 billion USD.
Due to continued market indecision, various crypto markets have taken a slight step back in the past 24 hours 📉. The crucial levels we have outlined this week remain in tact.
With each day of sideways action, we lean more towards the market hypothesis that price action could continue down through support😖. During this bear market, low volume and sideways action have been indicative of a high-volume downward move, which could happen in the near future (see updated $BTC analysis below👇).
We will still wait to enter net short positions until $BTC cracks $3330 on a significant time frame (4hr or higher).
In other news, a gold-backed cryptocurrency, the Peyman (Persian word for covenant), has been launched in Iran. Four banks and the Gohgnoos company will utilize the Peyman to tokenize bank assets and excess properties. The launch of the Peyman comes amidst speculation that Iran is developing its own state-backed cryptocurrency.
Due to economic sanctions imposed by the United States, Iran’s ability to conduct business internationally has been crippled 🆘. Last year, Iran identified cryptocurrencies as a means to circumvent the sanctions.
The introduction of the Peyman also comes directly after Iran’s central bank issued new cryptocurrency regulations. While there are still restrictions on Bitcoin, Iran gave the green light to ICO’s, exchanges, wallets, and cryptocurrency mining.
This development is not surprising to our team. One of the most important value propositions of this space is the accessibility to censorship resistance money. This could reshape the effectiveness of economic sanctions imposed by the world’s elite nations as smaller nation states resort to using cryptocurrency and blockchain to remain relevant on the international economic scene.
👏Crypto Remains Stable as VanEck Resubmits👏
Bitcoin, per Bitmex, is trading at $3434. Its 24 hour volume is leveling at around 5.5 billion USD.
The market has remained stable since yesterday's update; as a result, our general outlook on $BTC and the industry is unchanged. Bitcoin's crucial support is from $3330 to $3400. Should it hold above those levels and print higher lowers, we will regain confidence in the alt market🎉.
In the event Bitcoin falls through support, we will enter net short positions and DCA as yearly lows are likely to be met 🤒.
On January 23rd, it was reported that CBOE withdrew its VanEck/SolidX Bitcoin ETF proposal. This was due in large part to the ongoing government shutdown, and the fear associated with the proposed rule change being denied by the SEC.
As of yesterday, CBOE, VanEck, and SolidX resubmitted their joint proposal to the SEC 🏅.
They withdrew earlier this month because a deadline was set on their application for February 27th. Now there is no time clock on either the CBOE/VanEck/SolidX proposal or NYSE Arca and Bitwise’s proposal, which was submitted a few weeks prior. It seems as though the leading Bitcoin ETF proponents are back in stride to become the first groups to bring a Bitcoin ETF to market in the United States.
This news is unequivocally bullish for the industry. With such investment vehicles nearing their acceptance, the market is gradually becoming more investor friendly. To think, in time, cryptos will be vastly more accessible to consumers than ever before - something all enthusiasts and incumbents in the space should be thankful for 🐂.
Bitcoin, per Bitmex, is trading at $3434. Its 24 hour volume is leveling at around 5.5 billion USD.
The market has remained stable since yesterday's update; as a result, our general outlook on $BTC and the industry is unchanged. Bitcoin's crucial support is from $3330 to $3400. Should it hold above those levels and print higher lowers, we will regain confidence in the alt market🎉.
In the event Bitcoin falls through support, we will enter net short positions and DCA as yearly lows are likely to be met 🤒.
On January 23rd, it was reported that CBOE withdrew its VanEck/SolidX Bitcoin ETF proposal. This was due in large part to the ongoing government shutdown, and the fear associated with the proposed rule change being denied by the SEC.
As of yesterday, CBOE, VanEck, and SolidX resubmitted their joint proposal to the SEC 🏅.
They withdrew earlier this month because a deadline was set on their application for February 27th. Now there is no time clock on either the CBOE/VanEck/SolidX proposal or NYSE Arca and Bitwise’s proposal, which was submitted a few weeks prior. It seems as though the leading Bitcoin ETF proponents are back in stride to become the first groups to bring a Bitcoin ETF to market in the United States.
This news is unequivocally bullish for the industry. With such investment vehicles nearing their acceptance, the market is gradually becoming more investor friendly. To think, in time, cryptos will be vastly more accessible to consumers than ever before - something all enthusiasts and incumbents in the space should be thankful for 🐂.
🏦JP Morgan Set to Issue its Own Cryptocurrency🏦
Hello everyone,
The value of Bitcoin is $3569. Its 24 hour volume is leveling at 6.4 billion. The market has pulled back slightly since yesterday’s daily close. However, it bounced perfectly off the support we illustrated in yesterday’s chart. Go ahead and check out the updated version below. Our analysis remains unchanged from yesterday.
The news dominating the crypto landscape today is JP Morgan Chase's announcement. JP Morgan Chase, a former critic of cryptocurrency, particularly Bitcoin, and the United States' largest bank, has created the first cryptocurrency (JPM COIN) by a major U.S. Bank 😲. The ‘JPM coin’ will be usable in the next few months to instantly settle payments between clients.
JP Morgan is posturing themselves to operate in a world where cross-border payments and corporate debt issuance is moved to the blockchain. A quote from JP Morgan’s head of blockchain projects goes on to say, “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions, can use this.”
This will ultimately be one of the first real-world applications for banking with blockchain technology. JPM coin will not be available for retail investors and it will also be pegged to USD. So although the investment opportunity is not available for JPM coin, we think this is overwhelmingly bullish for the space long term.
We are in the right space, ladies and gentlemen 👊
In our opinion, we will only see more stories like this in the coming years as blockchain is embraced by varying industries. In turn, the industry itself will expand and gradually improve the global landscape.
Click the link below 👇to check out Birch’s thoughts on the matter…
👉 https://twitter.com/BitcoinBirch/status/1096062109950111745
Hello everyone,
The value of Bitcoin is $3569. Its 24 hour volume is leveling at 6.4 billion. The market has pulled back slightly since yesterday’s daily close. However, it bounced perfectly off the support we illustrated in yesterday’s chart. Go ahead and check out the updated version below. Our analysis remains unchanged from yesterday.
The news dominating the crypto landscape today is JP Morgan Chase's announcement. JP Morgan Chase, a former critic of cryptocurrency, particularly Bitcoin, and the United States' largest bank, has created the first cryptocurrency (JPM COIN) by a major U.S. Bank 😲. The ‘JPM coin’ will be usable in the next few months to instantly settle payments between clients.
JP Morgan is posturing themselves to operate in a world where cross-border payments and corporate debt issuance is moved to the blockchain. A quote from JP Morgan’s head of blockchain projects goes on to say, “The applications are frankly quite endless; anything where you have a distributed ledger which involves corporations or institutions, can use this.”
This will ultimately be one of the first real-world applications for banking with blockchain technology. JPM coin will not be available for retail investors and it will also be pegged to USD. So although the investment opportunity is not available for JPM coin, we think this is overwhelmingly bullish for the space long term.
We are in the right space, ladies and gentlemen 👊
In our opinion, we will only see more stories like this in the coming years as blockchain is embraced by varying industries. In turn, the industry itself will expand and gradually improve the global landscape.
Click the link below 👇to check out Birch’s thoughts on the matter…
👉 https://twitter.com/BitcoinBirch/status/1096062109950111745
🐳Cryptocurrency Trading Volumes Approaching Year-to-Date Highs🐳
Hello everyone,
The current price of Bitcoin is $3914 (Bitmex pricing), with 24 hour volume leveling at 8.6 billion USD.
Bitcoin is showing off both impressive price action and its sustained volume over the course of the past 48 hours. 🦍🥰
Our bias remains unchanged from Monday. We believe the reversal for $BTC is gaining momentum, which should allow crypto to remain profitable for at least the next 1-2 weeks! 🤑
We are not sure if $BTC will need to cool off here, or if it is ready to attempt $4000-4100 resistance (see chart below).
Ultimately, we think the addressed resistance level will be taken out in the coming days. The volume levels across the market are strong, leading us to our reasoning.
Let’s take a closer look at exactly how much volume has been flowing into crypto since the major price spike on Monday:
The last three days of cryptocurrency trading volume, recorded via coinmarketcap, is the highest three day stretch of volume since late April of 2018, and the second highest stretch in the past 365 days 😲
Volume of this magnitude is nothing short of impressive. With all that has occurred since the last bull market, some incumbents are surprised by what’s happening.
That being said, we are not out of the woods. 2018-2019 lows could still be met. But at this point, we’re confident the market has changed from a distribution phase to an accumulation phase.
We will continue to update you as price action continues to develop.
Hello everyone,
The current price of Bitcoin is $3914 (Bitmex pricing), with 24 hour volume leveling at 8.6 billion USD.
Bitcoin is showing off both impressive price action and its sustained volume over the course of the past 48 hours. 🦍🥰
Our bias remains unchanged from Monday. We believe the reversal for $BTC is gaining momentum, which should allow crypto to remain profitable for at least the next 1-2 weeks! 🤑
We are not sure if $BTC will need to cool off here, or if it is ready to attempt $4000-4100 resistance (see chart below).
Ultimately, we think the addressed resistance level will be taken out in the coming days. The volume levels across the market are strong, leading us to our reasoning.
Let’s take a closer look at exactly how much volume has been flowing into crypto since the major price spike on Monday:
The last three days of cryptocurrency trading volume, recorded via coinmarketcap, is the highest three day stretch of volume since late April of 2018, and the second highest stretch in the past 365 days 😲
Volume of this magnitude is nothing short of impressive. With all that has occurred since the last bull market, some incumbents are surprised by what’s happening.
That being said, we are not out of the woods. 2018-2019 lows could still be met. But at this point, we’re confident the market has changed from a distribution phase to an accumulation phase.
We will continue to update you as price action continues to develop.
🏦$BTC Showing Strength as Crypto Goes Green🏦
Hello everyone,
Bitcoin is now trading at $3825 (Bitmex). Its volume for the day is healthy, leveling at 9.6 billion USD. The market is in an interesting state, providing little technical clarity as to which direction it is headed. However, we are observing key technicals that suggest bulls are at work.
First and foremost, volume has flooded back into the crypto markets. Outside of a 2-week stretch occurring in April and May of last year, volume is experiencing yearly highs 📈.
The price during the aforementioned stretch occurred when $BTC ran from $6k-9k. We are seeing this heightened level of volume while price is still resting near bear market lows. In our opinion, this shows a shift from distribution to accumulation, as buyers have ultimately stepped in to begin increasing their exposure to crypto.
As we have pointed out, we believe it is important for $BTC to maintain the 50DMA as resistance turned to support (see chart below👇). While Bitcoin briefly lost this level yesterday, buyers have stepped in with significant volume to retake the 50DMA 🏦.
A daily close above $3750 would indicate re-established support at that level.
Our team has also noticed great follow through on the weekly MACD. We originally pointed out, to all of you, that we were beginning to notice a bullish crossover on the weekly-MACD in early February. So far, the continuation has been beautiful (see image below 👇). This, along with the histogram reaching highs that haven’t been achieved since January 2018, shows us strong confluence that a shift in market structure could be happening.
We have an extremely comprehensive analysis on this shift in market structure coming in the next few days so; stay tuned!
Hello everyone,
Bitcoin is now trading at $3825 (Bitmex). Its volume for the day is healthy, leveling at 9.6 billion USD. The market is in an interesting state, providing little technical clarity as to which direction it is headed. However, we are observing key technicals that suggest bulls are at work.
First and foremost, volume has flooded back into the crypto markets. Outside of a 2-week stretch occurring in April and May of last year, volume is experiencing yearly highs 📈.
The price during the aforementioned stretch occurred when $BTC ran from $6k-9k. We are seeing this heightened level of volume while price is still resting near bear market lows. In our opinion, this shows a shift from distribution to accumulation, as buyers have ultimately stepped in to begin increasing their exposure to crypto.
As we have pointed out, we believe it is important for $BTC to maintain the 50DMA as resistance turned to support (see chart below👇). While Bitcoin briefly lost this level yesterday, buyers have stepped in with significant volume to retake the 50DMA 🏦.
A daily close above $3750 would indicate re-established support at that level.
Our team has also noticed great follow through on the weekly MACD. We originally pointed out, to all of you, that we were beginning to notice a bullish crossover on the weekly-MACD in early February. So far, the continuation has been beautiful (see image below 👇). This, along with the histogram reaching highs that haven’t been achieved since January 2018, shows us strong confluence that a shift in market structure could be happening.
We have an extremely comprehensive analysis on this shift in market structure coming in the next few days so; stay tuned!
🏌️Bitcoin Swings Low as Most Digital Assets See Red🏌️♀️
After rallying to just about the $9000 mark, Bitcoin is leading a market-wide pullback that’s leaving many digital assets seeing red. Double digital losses against USD appear to be the norm for many of crypto’s most well-known properties including Tezos, Cardano, Cosmos, Ontology, Chainlink, and Bitcoin SV.
As of the time of writing, bitcoin is consolidating around $8400, having bounced off of $8100 with plenty of vigorous volume. Several days worth of incremental gains for many BTC paired alts have been wiped out in one fell swoop, but with the overall positive sentiment resounding market-wide, these losses reflect an emerging opportunity.
Bitcoin has wildly defied expectation in recent weeks, but we are increasingly convinced that a correction period is impending. The question is not if, but when. Confirmation of a correction cycle would depend on BTC breaking below $7900, then facing an $8000 resistance.
Our analysts uncovered that during previous parabolic bull run periods, bitcoin corrected violently – to the tune of 30%–40%. Since 2015, there have been seven instances of such corrections. The current bull run has risen unhindered, and while past performance is not indicative of future results, the likelihood of a correction cycle increases with every additional run up.
After rallying to just about the $9000 mark, Bitcoin is leading a market-wide pullback that’s leaving many digital assets seeing red. Double digital losses against USD appear to be the norm for many of crypto’s most well-known properties including Tezos, Cardano, Cosmos, Ontology, Chainlink, and Bitcoin SV.
As of the time of writing, bitcoin is consolidating around $8400, having bounced off of $8100 with plenty of vigorous volume. Several days worth of incremental gains for many BTC paired alts have been wiped out in one fell swoop, but with the overall positive sentiment resounding market-wide, these losses reflect an emerging opportunity.
Bitcoin has wildly defied expectation in recent weeks, but we are increasingly convinced that a correction period is impending. The question is not if, but when. Confirmation of a correction cycle would depend on BTC breaking below $7900, then facing an $8000 resistance.
Our analysts uncovered that during previous parabolic bull run periods, bitcoin corrected violently – to the tune of 30%–40%. Since 2015, there have been seven instances of such corrections. The current bull run has risen unhindered, and while past performance is not indicative of future results, the likelihood of a correction cycle increases with every additional run up.
Spotlight on IEOs
Welcome to the weekend!
Bitcoin has held on to the mid-$8000s in convincing fashion after properly bouncing up and away from $8100. Volume has remained in place with only a slight decrease from ATH levels being registered up to this point.
Given the looks of the market today, buyers aren’t ready to let a pullback begin in earnest just yet.
Some of the previous days biggest losers, such as EOS, have completely retraced their steps and then some, posting double-digit gains in the process.
As per usual, one obscure coin has vaulted from the darkness. Today, that coin is MonaCoin, a Japanese digital currency riding high on $243.7 million in volume.
As noted in yesterday’s update, we’re expecting a correction cycle that should see BTC retrace up to 40% from recent highs. However, we’re fluid on that point and will move with the market as needed.
Initial Exchange Offerings: The Second Coming of ICOs
The market’s recovery from the painful lows of last year and most of 2019 has everything to do with bitcoin’s rise from the ashes. Nonetheless, digital assets are meshed together by a sprawling tapestry of exchanges and a surplus of pairings that make crypto market dynamics incredibly complex.
Owing to the highly interconnected nature of crypto assets, it’s important to keep an eye on trends that are enabling the profits being poured into, and ultimately fueling, the current BTC bull run. The most notable amongst several potential trends is the IEO.
In 2017, the cryptocurrency market’s parabolic advance was almost singlehandedly shaped by an ICO market that was on fire. For an entire year, it seemed like there was simply no way to lose on an ICO investment, and the gains made by savvy traders helped moon blue chip crypto assets to untold heights.
As we all know, ICOs faded away big time. By the time the dust had settled and the bear market was thoroughly entrenched, the ICO market lay completely dormant, and most of the talk shifted to STOs (security token offerings). While STO railways like Harbor, Polymath, and Smartlands were built, another phenomenon was quietly taking shape.
Initial exchange offerings allow projects to fundraise directly on an exchange followed by a subsequent listing. There’s no need to wonder about the liquidity of a new project when it’s already been picked up by a major exchange beforehand. This sense of security, along with the project being vetted thoroughly by the exchange running the IEO, has brought investor confidence back to the crowd fundraising model pioneered by cryptocurrency.
We’ve seen spectacular gains made by Binance-backed IEOs in particular. FET, BTT, MATIC, and now ONE have all found themselves skyrocketing atop green candles aimed at the sky. Interestingly, even after decent time has passed, investor interest in IEO projects hasn’t waned – which goes to show that these projects have real staying power.
As such, we aren’t underestimating the sheer potential of the nascent IEO trend. Most IEO platforms like Binance’s Launchpad or KuCoin’s Spotlight have only gone live in recent months. IEOs haven’t hit their stride yet but they’re posting spectacular gains anyway, and are being fueled by a resurgent crypto market.
In 2017’s bull market, ICOs gave many new investors a headstart in the market and made for amazing returns that became the stuff of legend. With the bear market apparently behind us and IEOs throttling the market, we might be cruising into a similar period that is well worth paying attention to.
Welcome to the weekend!
Bitcoin has held on to the mid-$8000s in convincing fashion after properly bouncing up and away from $8100. Volume has remained in place with only a slight decrease from ATH levels being registered up to this point.
Given the looks of the market today, buyers aren’t ready to let a pullback begin in earnest just yet.
Some of the previous days biggest losers, such as EOS, have completely retraced their steps and then some, posting double-digit gains in the process.
As per usual, one obscure coin has vaulted from the darkness. Today, that coin is MonaCoin, a Japanese digital currency riding high on $243.7 million in volume.
As noted in yesterday’s update, we’re expecting a correction cycle that should see BTC retrace up to 40% from recent highs. However, we’re fluid on that point and will move with the market as needed.
Initial Exchange Offerings: The Second Coming of ICOs
The market’s recovery from the painful lows of last year and most of 2019 has everything to do with bitcoin’s rise from the ashes. Nonetheless, digital assets are meshed together by a sprawling tapestry of exchanges and a surplus of pairings that make crypto market dynamics incredibly complex.
Owing to the highly interconnected nature of crypto assets, it’s important to keep an eye on trends that are enabling the profits being poured into, and ultimately fueling, the current BTC bull run. The most notable amongst several potential trends is the IEO.
In 2017, the cryptocurrency market’s parabolic advance was almost singlehandedly shaped by an ICO market that was on fire. For an entire year, it seemed like there was simply no way to lose on an ICO investment, and the gains made by savvy traders helped moon blue chip crypto assets to untold heights.
As we all know, ICOs faded away big time. By the time the dust had settled and the bear market was thoroughly entrenched, the ICO market lay completely dormant, and most of the talk shifted to STOs (security token offerings). While STO railways like Harbor, Polymath, and Smartlands were built, another phenomenon was quietly taking shape.
Initial exchange offerings allow projects to fundraise directly on an exchange followed by a subsequent listing. There’s no need to wonder about the liquidity of a new project when it’s already been picked up by a major exchange beforehand. This sense of security, along with the project being vetted thoroughly by the exchange running the IEO, has brought investor confidence back to the crowd fundraising model pioneered by cryptocurrency.
We’ve seen spectacular gains made by Binance-backed IEOs in particular. FET, BTT, MATIC, and now ONE have all found themselves skyrocketing atop green candles aimed at the sky. Interestingly, even after decent time has passed, investor interest in IEO projects hasn’t waned – which goes to show that these projects have real staying power.
As such, we aren’t underestimating the sheer potential of the nascent IEO trend. Most IEO platforms like Binance’s Launchpad or KuCoin’s Spotlight have only gone live in recent months. IEOs haven’t hit their stride yet but they’re posting spectacular gains anyway, and are being fueled by a resurgent crypto market.
In 2017’s bull market, ICOs gave many new investors a headstart in the market and made for amazing returns that became the stuff of legend. With the bear market apparently behind us and IEOs throttling the market, we might be cruising into a similar period that is well worth paying attention to.
Bitcoin Shows Signs of Exhaustion After Historic Run
After a historic run that took bitcoin from the $3K’s to nearly $9000, the king of crypto is finally running on what seem to be tired legs 💤. Despite appearances, BTC does tend to do the unexpected, so it’s best to keep analyses dynamic and not fall into dogmatic ways of thinking.
Currently, BTC is trading at $7942 as it bounces just above 24-hour lows. Its sudden fall from the heights of the mid $8000 range is a sharp reminder that comfort is a trader’s worst enemy. Becoming complacent is a form of taking excessive risk, and taking excessive risks is a shortcut to getting rekt 🆘.
As bitcoin shot higher and higher, and the market entered a jubilant phase of micro-euphoria, we started looking to take risk off the table. The higher a digital asset climbs over a short timeframe, the greater the likelihood of a strong correction 📉.
We constantly stress the importance of proper risk management as a way to defend against giving hard-won gains back to the market 🛡. Part and parcel of appropriate risk management is skepticism – the more euphoric the retail trading crowd becomes, the greater should be your suspicion towards the continued upside of a given asset or market.
Last week, our analysts revealed a startling trend regarding correction cycles after parabolic bitcoin moves up. During seven previous BTC bull runs, violent corrections of up to 40% occurred just after they topped. As always, past performance is not indicative of future results, but after parsing through the data, we decided that reducing BTC exposure using a hedge short was the right call.
We shared that call along with real-time data and analysis with our private members several days ago. Current strong resistance stands at $8030, and a breakdown + close below the $7903 mark would signal a strong shorting opportunity. Should we break back above the $8030 mark, the chances of retesting the $8400-$8500 region are excellent – however, because there is a rising wedge present with four tests in the books, the odds that a fifth test will hold are low.
Justin Sun Stirs More Controversy
Nobody loves stirring the pot more than Justin Sun. He recently made an announcement within an announcement, a move which defied all logic but hyped his followers up nonetheless. It turns out that the announcement he was teasing was a bid for having lunch with Warren Buffett, which he won for a mere $4.5 million.
The money will go straight to a homeless support charity which is an entirely admirable cause and one that Sun is benefiting greatly with the sheer amount of cash he just dropped – so no qualms can be made about his willingness to give.
It remains to be seen how he will approach Buffett, a man known for his completely inane, illogical, and staunchly critical views of Bitcoin. In a Twitter post, CZ, Binance’s beloved boss, stated that he had been invited to the lunch by Sun but turned it down because it’s “too far.” Regardless of how the lunch turns out, it’ll have been spectacular coverage for Justin and both Tron and BitTorrent – something he’ll be pleased with, no matter the price tag.
After a historic run that took bitcoin from the $3K’s to nearly $9000, the king of crypto is finally running on what seem to be tired legs 💤. Despite appearances, BTC does tend to do the unexpected, so it’s best to keep analyses dynamic and not fall into dogmatic ways of thinking.
Currently, BTC is trading at $7942 as it bounces just above 24-hour lows. Its sudden fall from the heights of the mid $8000 range is a sharp reminder that comfort is a trader’s worst enemy. Becoming complacent is a form of taking excessive risk, and taking excessive risks is a shortcut to getting rekt 🆘.
As bitcoin shot higher and higher, and the market entered a jubilant phase of micro-euphoria, we started looking to take risk off the table. The higher a digital asset climbs over a short timeframe, the greater the likelihood of a strong correction 📉.
We constantly stress the importance of proper risk management as a way to defend against giving hard-won gains back to the market 🛡. Part and parcel of appropriate risk management is skepticism – the more euphoric the retail trading crowd becomes, the greater should be your suspicion towards the continued upside of a given asset or market.
Last week, our analysts revealed a startling trend regarding correction cycles after parabolic bitcoin moves up. During seven previous BTC bull runs, violent corrections of up to 40% occurred just after they topped. As always, past performance is not indicative of future results, but after parsing through the data, we decided that reducing BTC exposure using a hedge short was the right call.
We shared that call along with real-time data and analysis with our private members several days ago. Current strong resistance stands at $8030, and a breakdown + close below the $7903 mark would signal a strong shorting opportunity. Should we break back above the $8030 mark, the chances of retesting the $8400-$8500 region are excellent – however, because there is a rising wedge present with four tests in the books, the odds that a fifth test will hold are low.
Justin Sun Stirs More Controversy
Nobody loves stirring the pot more than Justin Sun. He recently made an announcement within an announcement, a move which defied all logic but hyped his followers up nonetheless. It turns out that the announcement he was teasing was a bid for having lunch with Warren Buffett, which he won for a mere $4.5 million.
The money will go straight to a homeless support charity which is an entirely admirable cause and one that Sun is benefiting greatly with the sheer amount of cash he just dropped – so no qualms can be made about his willingness to give.
It remains to be seen how he will approach Buffett, a man known for his completely inane, illogical, and staunchly critical views of Bitcoin. In a Twitter post, CZ, Binance’s beloved boss, stated that he had been invited to the lunch by Sun but turned it down because it’s “too far.” Regardless of how the lunch turns out, it’ll have been spectacular coverage for Justin and both Tron and BitTorrent – something he’ll be pleased with, no matter the price tag.
Indecision Time for Bitcoin
What’s going on?
It’s another day, and with that, we have new opportunities 💸. That’s an attitude we stress as traders – start every day fresh by reminding yourself that with every new day there are ripe opportunities.
Having said that, let’s turn to the market and see what we can make of the action. Bitcoin is making minor adjustments within the $7600 range while 24-hour trading volume continues to dry up. After weeks of posting impressive numbers, overall volume has declined from $32 billion to just half of that, having rounded out at $16 billion overnight.📉
Considering that BTC price is also gently declining, there’s plenty of encouragement to take away from the fact that it isn’t making a high-volume nosedive. However, even if we try to defog our view of the current market, there isn’t an obvious enough line of sight to help with a decision. During such times, it’s best to keep your powder dry, which is exactly what we’re doing (save for a hedge short we called out last week at $8400).
Our analysts have kept an eagle eye on BTC and have identified three scenarios to keep in mind:
1. There’s an overlooked head and shoulders pattern forming. The right shoulder completes the resistance of what we’re terming a ‘consolidation pivot’ – which is the last swing high and low before a pennant, flag, or rising/falling wedge breaks out. It’s aimed at a target just below 5700–5800.
2. If the above fails and price does indeed break out, albeit with slow price action and anemic volume, then we’ll assume a bull trap is in play. That assumption is based on recent price action that occurred with robust volume on moves down and decreasing volume on the way up. Should BTC cruise between $8200 and $8800 in that way, we’ll take a bearish stance and will move on a short setup.
3. A strong move would take us straight to $8600-$8800, an area which we would either consolidate or annihilate by moving directly to new highs. Should the latter be the case, a close above $9400 would suggest $10000 and beyond as the next destination.
Spotlight on Scaling
As the blockchain space matures and finds widespread adoption across most industries imaginable, the question of how to scale to the demand has arrived front and center. As smart contract blockchain platforms roll out, they’re teasing their potential transaction per second speed well before discussing other similarly important qualities.
The pressure to scale up to the demands of impending blockbuster commercial applications is getting so intense that some blockchains, like Zilliqa, are engaging in psychological battles. ZIL founder Max Kantelia recently stated that “…people are starting to mine Zilliqa, we’re beginning to see the network starting to grow and grow, so [competing with VISA] is absolutely within sight, and I would say that it could happen as quickly as the next 12 to 18 months.”
Ethereum’s ETH 2.0 project is promising to bring sharding to the network within the next two years – however, other projects may have the upper hand well before it comes online. Coming to Ethereum’s rescue is the rise of new second-layer scaling projects like Matic and Celer. Using a second-layer scaling solution takes some of the heat off of Ethereum, as they’ll be able to use projects like Matic to scale decentralized applications that want to use the Ethereum network to build and launch.
Regardless of who wins the transaction speed war, the way the question of scaling is solved will determine much of what’s to come in cryptocurrency’s future.
What’s going on?
It’s another day, and with that, we have new opportunities 💸. That’s an attitude we stress as traders – start every day fresh by reminding yourself that with every new day there are ripe opportunities.
Having said that, let’s turn to the market and see what we can make of the action. Bitcoin is making minor adjustments within the $7600 range while 24-hour trading volume continues to dry up. After weeks of posting impressive numbers, overall volume has declined from $32 billion to just half of that, having rounded out at $16 billion overnight.📉
Considering that BTC price is also gently declining, there’s plenty of encouragement to take away from the fact that it isn’t making a high-volume nosedive. However, even if we try to defog our view of the current market, there isn’t an obvious enough line of sight to help with a decision. During such times, it’s best to keep your powder dry, which is exactly what we’re doing (save for a hedge short we called out last week at $8400).
Our analysts have kept an eagle eye on BTC and have identified three scenarios to keep in mind:
1. There’s an overlooked head and shoulders pattern forming. The right shoulder completes the resistance of what we’re terming a ‘consolidation pivot’ – which is the last swing high and low before a pennant, flag, or rising/falling wedge breaks out. It’s aimed at a target just below 5700–5800.
2. If the above fails and price does indeed break out, albeit with slow price action and anemic volume, then we’ll assume a bull trap is in play. That assumption is based on recent price action that occurred with robust volume on moves down and decreasing volume on the way up. Should BTC cruise between $8200 and $8800 in that way, we’ll take a bearish stance and will move on a short setup.
3. A strong move would take us straight to $8600-$8800, an area which we would either consolidate or annihilate by moving directly to new highs. Should the latter be the case, a close above $9400 would suggest $10000 and beyond as the next destination.
Spotlight on Scaling
As the blockchain space matures and finds widespread adoption across most industries imaginable, the question of how to scale to the demand has arrived front and center. As smart contract blockchain platforms roll out, they’re teasing their potential transaction per second speed well before discussing other similarly important qualities.
The pressure to scale up to the demands of impending blockbuster commercial applications is getting so intense that some blockchains, like Zilliqa, are engaging in psychological battles. ZIL founder Max Kantelia recently stated that “…people are starting to mine Zilliqa, we’re beginning to see the network starting to grow and grow, so [competing with VISA] is absolutely within sight, and I would say that it could happen as quickly as the next 12 to 18 months.”
Ethereum’s ETH 2.0 project is promising to bring sharding to the network within the next two years – however, other projects may have the upper hand well before it comes online. Coming to Ethereum’s rescue is the rise of new second-layer scaling projects like Matic and Celer. Using a second-layer scaling solution takes some of the heat off of Ethereum, as they’ll be able to use projects like Matic to scale decentralized applications that want to use the Ethereum network to build and launch.
Regardless of who wins the transaction speed war, the way the question of scaling is solved will determine much of what’s to come in cryptocurrency’s future.