Bitcoin BTC Price May See 13 Drop Here’s Why

Bitcoin (BTC) Price May See 13% Drop; Here’s Why

Bitcoin (BTC) took an absolute beating on Wednesday. For those who missed the memo, the cryptocurrency saw a 10% drop within an hour or two, plunging under the key level of $7,700 for the first time in around five months. This dramatic move came after countless analysts expected volatility to hit markets, citing the Bollinger Band amongst other indicators.

While the pain has hit traders hard already, leading analysts are expecting for Bitcoin to continue falling. Here’s why.

Bearish Bitcoin Factors

Speaking to CNBC in the wake of the recent $600 plunge, Mike Novogratz, the CEO of Galaxy Digital and a Wall Street veteran, said that he expects the leading cryptocurrency to fall further in the coming days. He claimed that there be another leg of selling pressure that will take Bitcoin down by at least 13% to $6,500. Novogratz added that for this move to be negated, there will need to be “new energy” that wrests Bitcoin back above $8,000.

He backed this prediction by looking to the “bunch of negative things that have happened recently,” specifically citing the U.S. Securities and Exchange Commission’s (SEC) decision to stop Telegram from launching its crypto asset. Other bearish fundamental trends include Mark Zuckerberg’s hearing in Congress, the SEC’s decisions to make a case against other startups, and the fact that institutions have yet to really delve into the crypto markets.

It is important to note that it isn’t all bearish fundamentals for Bitcoin. CoinMetrics, a top cryptocurrency analytics firm, recently observed that Bitcoin’s implied 24-hour hash rate hit 115 exahashes per second, which is a metric that is seven to eight times higher now than it was during the peak of 2017’s bull run to $20,000.

Also, the Federal Reserve has continued to inject billions into the repo markets, which many see as a sign of impending collapse or at least troubles for the fiat financial system.

Why the Mid-$6,000s?

Novogratz isn’t the only one eyeing $6,500.

In a recent analysis, prominent analyst Dave the Wave, who has been short-term bearish for months now (and essentially called the recent downturn), said that Bitcoin is likely to fall further. This move lower, he claimed citing a geometric/fractal analysis of the last market cycle and the current, will end with Bitcoin bottoming in mid-November — just three weeks away.

In terms of the price at which the cryptocurrency will bottom, Dave’s ideal target is $6,700, which is where there exists a confluence of technical levels: the 0.5 Fibonacci Retracement of the $3,200 to $14,000 move, the bottom of a descending channel, amongst other important levels.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

Want to Spend Bitcoin on Amazon? There’s An App For That

Want to Spend Bitcoin on Amazon? There’s An App For That

Crypto investors have long been asking when Amazon, the massive American e-commerce giant, will integrate Bitcoin (BTC). These expectations make sense. If the platform accepted Bitcoin payments, users would effectively be able to stake their entire lives on cryptocurrency.

So far, Amazon has been mum on the topic. The firm did file a patent relating to a seeming cryptocurrency-related system, yet the firm hasn’t gone as far as to launch an AmazonCoin or Bezos Token.

Regardless, there is a new solution in town that may quench the aforementioned need of Bitcoin investors.

Meet Moon, a cryptocurrency infrastructure provider that has just launched a desktop browser extension that allows users to spend their favorite cryptocurrencies for Amazon goods. The extension is currently available for Google Chrome, the already crypto-centric Brave, and Opera. Crazy, right?

According to a TechCrunch post outlining the new product, Moon’s flagship product allows one to pay for Amazon goods with Lightning Network Bitcoin, base layer BTC, Litecoin, and Ethereum. Moon also allows one to pay with their holdings on their Coinbase account.

So how does this solution work?

Well, it’s pretty simple. Per TechCrunch, Moon uses prepaid value on Amazon, so that when one uses their cryptocurrencies to pay for goods, the service “automatically converts your cryptocurrencies, tops up your Amazon account and pays with your Amazon balance.” What’s interesting is that Moon isn’t charging extra fees to users of the service, making spending Bitcoin and its ilk on Amazon that much more of a breeze.

It’s an interesting concept, for sure. But, it remains to be seen how this interesting cryptocurrency product, which is currently available for those in the U.S. and Canada (Europe is purportedly soon to follow), will impact the story of the adoption of digital assets for the masses.

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Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

Wyckoff Logic: Bitcoin BTC May Soon Return to 6000

Wyckoff Logic: Bitcoin (BTC) May Soon Return to $6,000

Bitcoin Looking Weak

When asked about the drawbacks of Bitcoin, many people cite the cryptocurrency market’s immense volatility — multiple days a year, BTC and its ilk have 10%+ days.

Case in point, the Bitcoin price tumbled off a cliff in late September, falling from the lofty price point of $10,100 to $7,700 in a week’s time. This move, as made evident by over $500 million in BitMEX long position liquidations in an hour, caught many investors were their pants down.

But Bitcoin’s price action in this scenario may not be as random as it seems. One analyst has argued that since December 2018, BTC’s chart has looked exactly as defined by the four market phases defined in Wyckoff Logic, a way of looking at markets created by prominent historical investor Richard Wyckoff: accumulation, mark up, distribution, mark down.

The logic suggests that Bitcoin is in the midst of the bearish phase of markets, the mark down. Analyst Moe Mentum’s interpretation of the Logic shows that in the coming weeks, BTC may begin another -20%+ leg lower to $6,000 or potentially even deeper.

Wyckoff Logic isn’t the only sign pointing towards a Bitcoin price drop to $6,000 or even lower.

Timothy Peterson, an analyst at Cane Island Alternative Advisors, recently argued that there is a clear “relationship between the premium investors pay for OTC shares of Grayscale Bitcoin Trust (GBTC) and the cryptocurrency’s Price.” Indeed, as can be seen through the investor’s post, BTC has tracked the GBTC premium per share over the course of the entire yet.

Seeing that BTC has yet to fulfill this correlation over the past few weeks, Peterson made the following harrowing conclusion about Bitcoin’s price action:

“The relationship between GBTC premium and bitcoin price has not been stable and predicable over time. However, our fundamental models also value BTC at about $6,000. It appears that institutional and long-term US investors in GBTC are expecting this price level for BTC as well.”

The Other Side of the (Bit)Coin

While Moe’s Wyckoff-based analysis is showing a bearish scenario, there is another analyst claiming that Wcykoff’s studies are implying appreciation, not depreciation.

Financial Survivalism noted last week that Bitcoin’s chart from the last week of September until now is eerily reminiscent of the textbook Wyckoff Accumulation pattern. Survivalism argued that if “this current pullback (referencing the fall from $8,350 to $8,100) creates a higher low above $8,000, then I would consider [the Wyckoff Accumulation] confirmed”.

Should this bullish pattern play out in full, Survivalism suggests that BTC will return above the key $10,000 price point in a few weeks’ time.


Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

Bitcoin BTC To 90000 in 2020 Forecasts German Bank Report

Bitcoin (BTC) To $90,000 in 2020 Forecasts German Bank Report

After Retaking $8,000, Bitcoin to Recover Further

Germany’s seventh-largest financial institution, Bayern LB, published a report on bitcoin predicting a price of $90,000 next year.

Basing its prediction on stock-to-flow ratios, it states that bitcoin “digital gold” is a “harder” form of commodity money than gold.

Part of a series of reports on digital megatrends, subtitled “Is bitcoin outshining gold”, the report states:

“Applied to Bitcoin, an unusually strong correlation emerges between the market value of this cryptocurrency and the ratio between existing stockpiles of Bitcoin (‘stock’) and new supply (‘flow’).”

Although the bank’s analysts are quick to say caution should be the watchword when applying this model to bitcoin, it thinks it is nevertheless a useful approach.

Bayern LB concludes that taking this practical approach yields useful insights into how bitcoin should be valued.

“It becomes clear that Bitcoin is designed as an ultra-hard type of money. Next year, it will already exhibit a similarly high degree of hardness as gold. In 2024 (when halving is set to take place again), Bitcoin’s degree of hardness will again increase massively,” the report reads.

Gold developed its “hardness” over millennia while bitcoin has achieved similar properties through “supply engineering”, namely the protocol designed by Sataoshi Nakamoto.

The yellow metal is currently priced at $1,491 having pulled back from highs at $1,537 – its highest valuation since April 2013.

Bitcoin has returned 122% year to date and gold 16%.

Gold did it the hard way but bitcoin is not ‘cheating’

The report notes how gold earned its high stock-to-flow ratio the “hard way”:

“Moreover, there have been no shortcuts for the yellow metal: a higher stockpile could only have accumulated in a shorter space of time if it had been easier to mine gold. In that case, however, gold would not have qualified as a store of value and, in turn, nobody would have held the yellow metal.”

Because of its supply engineering bitcoin will be able to emulate and even surpass gold’s stock-to-flow ratio.

Stock-to-flow of course relates to scarcity, and with bitcoin’s addition of the difficulty adjustment mechanism the inventor was able to disconnect price from flow (supply), thereby making supply deterministic.

Using regression analysis Bayern LB plots a market capitalisation that is creeping up on gold by 2020 when the next halving takes place.

On this basis a price of $90,000 is postulated for next year, which indicates that bitcoin is massively undervalued.

“If the May 2020 stock-to-flow ratio for Bitcoin is factored into the model, a vertiginous price of around USD 90,000 emerges.”

But as the author(s) conclude, even the best statistical model can fall apart, so the report comes with a big dollop of Caveat Emptor.

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Bayern LB (Bayerische Landesbank ) is one of Germany’s six state banks. It is 75% owned by the state of Bavaria and has a €220 billion balance sheet.

The full report is available here.

Original article posted on the EthereumWorldNews.com site, by Gary McFarlane.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe

Bitcoin Price Strong at 8300 May Be Ready to Bound Higher

Bitcoin Price Strong at $8,300, May Be Ready to Bound Higher

Bitcoin Retakes $8,300

After a precipitous drop to $7,700 this weekend, Bitcoin (BTC) bulls have managed to reclaim some ground on Monday and Tuesday.

While the cryptocurrency market hasn’t flipped decidedly bullish yet — BTC remains below some key moving averages and support levels — analysts say that Bitcoin is momentum. In fact, it is up a few percentage points in the past day, having found some support at $8,300.

Despite not showing the qualities of a fully-fledged bullish reversal, analysts say that this recent bounce is a sign of good things to come. Whether or not this materializes in an imminent move to fresh all-time or year-to-date highs remains to be seen, however.

Upward Trend Forming, Analysts Suggest

Macro investor and gold proponent Dan Tapiero recently pointed out that the Bitcoin price chart has printed a massive bull signal. In a tweet, the institutional investor noted that the TD Sequential indicator, which is a time-based technical indicator, has drawn a buy 9 signal. Tapiero noted that the last time that this buy signal was seen was in January 2019, when the cryptocurrency traded at $3,600. What followed, of course, was a massive move to $14,000 over the course of the following months.

That’s not all. The Fisher Transform, a trend indicator, recently saw a bullish crossover on Bitcoin’s daily chart, implying that the cryptocurrency may soon be subject to some upward momentum.

And to put a cherry on top of the cryptocurrency cake, Bitcoin is currently trending to retake its 200-day moving average after a week-long hiatus. The 200-day MA is a level which many analysts claim is a sign of if an asset is in a macro bull or bear trend.

Fundamentals Back a Price Recovery

The fundamentals seem to support a price recovery as well. Speaking to The Independent in the week of last week’s price decline, eToro analyst Simon Peters remarked that with Bitcoin’s hash rate still strong, “and adoption of crypto still moving forward at pace, we could see the price rise back up to $10,000 within the space of the next month.”

BitBull Capital CEO Joe DiPasquale has echoed this, arguing that since the fundamentals of the Bitcoin network “remain strong”, a move higher — one that could potentially bring Bitcoin back to five digits — could take place in the “coming days”.

Original article posted on the EthereumWorldNews.com site, by Nick Chong.

Article re-posted on Markethive by Jeffrey Sloe

Visit MarketHive to learn more: http://markethive.com/jeffreysloe