Considering that Bitcoin (BTC) is a blockchain network that uses a proof-of-work (PoW) consensus mechanism, miners are a highly significant part of the market dynamics of the network and the community itself. On Jan. 5, it was revealed that Kazakhstan shut down its internet services due to unprecedented political unrest sparked by rising fuel prices in the country.

The protests in Kazakhstan began on Jan. 2 in the town of Zhanaozen to fight against the government doubling the price of liquefied petroleum gas (LPG), which is widely used as car fuel in the country. This change in pricing came as a result of the gradual transition to the use of electronic trading of LPG in order to abolish the existing state subsidies for fuel and allow the market to discover the price of the asset.

However, protests in the region soon snowballed, gaining more momentum and continued despite the country’s government announcing that the prices of LPG would be brought down to a level lower than before the increase. Soon, this led to the country’s presiding cabinet resigning and the state-owned telecom company, Kazakhtelecom, shutting off the country’s internet services. Network data provider Netblocks reported that the normalized network connectivity fell down to 2%, with the government attempting to limit coverage on the escalating anti-government protests.

As a result, the Bitcoin network’s mining hash rate declined over 13% in the hours after the shutdown in the country from 205,000 petahash per second (PH/s) to 177,330 PH/s. Over the past year, the country grew to account for 18% of Bitcoin’s mining activity. A report from the Data Center Industry & Blockchain Association of Kazakhstan estimated that cryptocurrency mining would bring in $1.5 billion in revenue for the country in the next five years.

This is not the first time that Bitcoin mining in the region has received the spotlight. Despite being an energy-rich country, the Kazakh government announced last year that it planned to crack down on unregistered miners that were straining the country’s energy supply after the mining migration from China.

Kazakhstan’s mining market share

The Central Asian country became a hub for Bitcoin mining after the Chinese government banned mining operations and cryptocurrency services in 2021. This led to the migration of mining companies like BIT Mining to relocate their operations from China to Kazakhstan. BIT Mining is one of the largest BTC mining companies in the world. 

The mining company has indicated that it is unlikely to flee Kazakhstan to relocate to North America amid the political upheaval. The firm is closely monitoring and evaluating the situation in order to decide its next move with respect to mining. 

However, countries like Spain have had their eyes on Kazakhstan’s mining market share. The Deputy for the Spanish Ciudadanos political party, María Muñoz, proposed to make the country a mining hotspot amid the current situation, stating in a tweet, “The protests in Kazakhstan have repercussions all around the world but also for Bitcoin. We propose that Spain positions itself as a safe destination for investments in cryptocurrencies to develop a flexible, efficient, and safe sector.”

Rob Chang, the CEO and director of Gryphon Digital Mining, a digital assets mining company, told Cointelegraph:

“Bitcoin mining will continue to grow and the need for viable locations will always be necessary. Countries with the foresight to make themselves Bitcoin-friendly will stand to do quite well as Bitcoin continues to establish itself as a legitimate alternative to fiat.”

As a result of China’s mining ban, the mining dynamics have shifted globally, with the United States leading the charge with over a third of the mining rate. Chang said that one benefit of this migration includes rehomed miners’ shift to a larger mix of carbon-free energy sources.

Additionally, some of the hash rates has gone to more transparent entities operating the mining machines, leading to increased security for the network and a higher level of public trust in Bitcoin miners.

Illia Polosukhin, the co-founder of the NEAR Protocol, a decentralized development platform, told Cointelegraph that in addition to China’s ban leading to a loss of investment, the loss of talent is another major factor:

“Chinese citizens living on the mainland and abroad are banned from working in the crypto sector, and that’s a big loss for the blockchain industry as a whole. It will stifle innovation and, eventually, leave Chinese citizens behind as more users begin to adopt Open Web technologies. It’s possible that more mining operations shifting to the United States could push the issue of blockchain and sustainability more fully into the public eye.”

Thriving amid geopolitical risks is rare for financial assets

The mining hash rate for the Bitcoin network recovered quickly from the drop to 168 million TH/s, according to data from YCharts. In fact, the network has taken a step forward with the hash rate hitting a new all-time high of 215 million TH/s on Jan. 13.

This new all-time high was driven by the statement from ex-Twitter CEO Jack Dorsey, announcing the creation of an open Bitcoin mining system. Thomas Templeton, the general manager of hardware at Square, said, “We want to make mining more distributed and efficient in every way, from buying, to set up, to maintenance, to mining. We’re interested because mining goes far beyond creating new bitcoin. We see it as a long-term need for a future that is fully decentralized and permissionless.”

This new all-time high is evidence of how resilient the Bitcoin network and its community are to ensure that the network thrives at all costs. 

However, it’s important to remember that such risks are not exclusive to Bitcoin. Chang said, “Geopolitical risk is a common issue for many industries, and Bitcoin mining is not immune. While there will be some that will take the risk and operate in these countries for the sake of lower costs, they do run the risk, such as those experienced in Kazakhstan or others such as the government deciding one day to take all of your machines. Operators will need to understand the risk/reward tradeoff.”

Related: A new intro to Bitcoin: The 9-minute read that could change your life

Polosukhin explained that no matter how distributed or decentralized a blockchain network is — Bitcoin or any other — it’s still intertwined with many legacy systems: energy grids, energy prices, regulation and the laws of nations. Bitcoin mining has either been banned or is facing uncertainty in many countries including Iran, Lebanon, Iceland and Sweden.

Being an energy-intensive PoW network, the Bitcoin network is expected to continue to thrive as long as miners are incentivized economically to continue to remain miners. A report from Fidelity Digital Assets, the crypto wing of Fidelity Investments, indicated that the Bitcoin cycle is far from over, and with the high financial incentives for miners, they are in it for the long haul

While Bitcoin is in a price slump, currently trading around the $42,000 range with a market capitalization of $791 billion, the fact that miners — the core aspect of the network — have shown resilience to adverse situations over the 13-year history of the network reinforces the belief and trust the community puts on the flagship blockchain network.




Cointelegraph By Anirudh Tiwari

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The first IPO for the crypto industry in 2022 comes from a Texas-based Bitcoin (BTC) mining company, Rhodium Enterprises.

In an SEC filing made last week, Rhodium plans to offer 7.69 million shares at $12-$14 each in an initial public offering (IPO). Trading under the ticker “RHDM” on Nasdaq, 56.8 million class A and 67.5 million class B shares will be released, ultimately valuing the company at just shy of $1.7 billion. 

Rhodium is a cryptocurrency technology company that uses proprietary tech and liquid cooling technology to self-mine Bitcoin. Their goal is to be the most sustainable and cost-efficient producer of Bitcoin in the industry.

The company joins a growing list of US-based companies that mine Bitcoin. Over the past three years, Marathon, Bitdeer Technologies, Riot Blockchain, and Bit Digital listed on stock exchanges such as NASDAQ.

According to the filing, Rhodium currently runs 125 megawatts (MW) of mining power capacity at its first Texas site. 33,600 Bitcoin miners are running, churning out a total combined hash rate capacity of approximately 2.7 EH/s.

Following the IPO and a raise of $100 million capital, it will run a second site in Texas where they “expect to develop 225 MW of additional capacity.” By the end of 2022, the company will effectively more than double its current capacity.

Bearing in mind that the average cost per BTC in 2021 was about $47,000, their electricity cost basis is staggering:

Our infrastructure platform allows us to mine Bitcoin at a significantly lower cost compared to the industry average. For the period from January 1. 2021, to September 30. 2021, our average electricity cost to produce one Bitcoin was approximately $2,507.

Related: Mr. Wonderful plans to invest in mining company stocks

Texas continues to carve out a reputation as a Bitcoin mining-friendly state. In quarter four of 2021, Senator Ted Cruz commented that Texas should use Bitcoin mining to capture wasted natural gas while the Electric Reliability Council of Texas (ERCOT) anticipated that Texan Bitcoin mining power demands could jump 5 times by 2023.

Rhodium takes advantage of Texas’ “independent power market and abundance of low-cost renewable energy resources,” and pro-Bitcoin business environment.

Given the company’s experience with liquid-cooling technology and efficiency; for tiny Bitcoin miners seeking to solve valid blocks, it just got a bit harder. 


Cointelegraph By Joseph Hall

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Bitcoin (BTC) hodlers face a crucial week in more ways than one as $42,000 rekindles a familiar battle.

As noted by on-chain analytics firm Glassnode on Monday, 30% of the BTC supply is now at a loss — historically, this has been a key number to defend for bulls.

Mixed opinions on rebound chances

Bitcoin’s descent from $69,000 to current levels — at one point over 40% — is nothing unusual, but for long-term investors, there is a specific reason to hope that current support holds.

Looking back at historical price performance, Glassnode reveals that once 30% of the supply goes “underwater,” price rebounds often occur.

“As the bears apply pressure to the in-profit cohort of holders, Bitcoin bulls are defending a historically significant level of the Percent of Supply in Profit metric,” staff explained in the latest edition of its weekly newsletter, The Week Onchain, describing bulls as “under siege.”

“This magnitude of ‘top heavy supply’ was defended in two instances in the last few years.”

These were the post-Covid market crash in March 2020 and summer 2021, in the aftermath of the China mining crackdown. The 30% in-loss level resulted in an upside impulse move for spot price in both instances.

Bitcoin percent of supply in profit annotated chart (screenshot). Source: Glassnode

Continuing, Glassnode acknowledged that the same result is nonetheless far from guaranteed this time around.

“The reaction from this level will likely provide insight into the medium-term direction of the Bitcoin market,” the newsletter continued.

“Further weakness may motivate these underwater sellers to finally capitulate, whereas a strong bullish impulse may offer much needed psychological relief, and put more coins back into an unrealized profit.”

Others were more optimistic, with fellow on-chain platform CryptoQuant expecting a bullish outcome.

“The bull run in July had just begun when it had previously risen to these levels. The bulls are aggressively preparing for the new run,” a blog post argued about the profit-to-loss ratio.

“A hodler-dominated market”

Earlier, Cointelegraph reported on the continued steely resolve by both long-term holders (LTHs) and miners when it comes to preserving their assets.

Related: What bear market? Current BTC price dip still matches previous Bitcoin cycles, says analyst

With short-term holders (STHs) — defined by Glassnode as coins moving in the past 155 days — staying low as a proportion of the overall supply, hope remains that the worst of the capitulation following all-time highs has been and gone.

“The supply held by this cohort sits at ~3 million BTC, a relative historical low, and a level that signifies a transition into a HODLer dominated market,” the newsletter continued.

“This has been in effect since the May 2021 deleveraging event. Low STH supply levels are typical of bearish trends, as old coins remain dormant, and younger coins are slowly accumulated by high conviction buyers.”Bitcoin supply held by STHs vs. LTHs annotated chart (screenshot). Source: Glassnode


Cointelegraph By William Suberg

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Canadian businessman Kevin O’Leary laid out his plans to invest in mining company stocks. In an interview with Anthony Pompliano, Mr. Wonderful shared stories about his recent travels in the Middle East to find ways to invest in Bitcoin (BTC) mining. According to the Shark Tank mogul, investors in the Middle East are looking into “sovereign mining operations.”

O’Leary also predicts that in the next 2-3 years, sovereign funds may decide to invest in Bitcoin mining. However, the businessman notes that the funds will choose mining businesses that use sustainable energy. Due to environment-related controversies, the eco-friendliness of mining operations is a crucial deciding factor for investors, according to the Canadian entrepreneur.

The businessman also expressed his interest in opening his own mining operations. However, he explained that there are things that he is considering before this happens. He stated that aside from government approvals, the people who live in the community where the mining operations will take place must approve of the business.

Aside from these, the entrepreneur also explained that Bitcoin mining companies must be able to track their BTC earnings in company balance sheets. This enables investors to buy the mining company stock and own BTC through equity. O’Leary notes that he will be investing in BTC through this process.

Related: Kevin O’Leary-backed WonderFi to buy Bitbuy parent company for $162M

Back in December, O’Leary also shared his thoughts on crypto investing with the public. In an exclusive interview with Cointelegraph, the businessman explained that investing in crypto is similar to investing in Google and Microsoft.

“If you’re investing in, for example, Google or Microsoft, what are you investing in? You’re investing in software. Why wouldn’t you invest in crypto? It’s software too,” he said.

Meanwhile, the former BTC critic is also very excited about the potential of nonfungible tokens (NFT). O’Leary is betting that NFTs may potentially become bigger than Bitcoin. However, he notes that he will invest in both.


Cointelegraph By Ezra Reguerra

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Bitcoin (BTC) has “at least one more upward impulse to come” before reaching this halving cycle’s all-time high, new research maintains.

In a series of tweets about the current state of BTC price action, popular analyst TechDev argued that contrary to many opinions, there is nothing unusual about BTC/USD in 2022.

Bitcoin in 2021: Nothing to see here

With a drawdown of 40% from November’s all-time highs of $69,000 still ongoing, sentiment has likewise taken a hit — “extreme fear” still characterizes both Bitcoin and altcoin markets.

For TechDev, known for his optimistic takes on the Bitcoin outlook, there is nonetheless nothing to worry about.

Analyzing new wallet addresses relative to price behavior, he showed that last year’s scenario — new address numbers making lower highs while price makes higher highs — is far from unique.

“In 4 out of the 6 corrections we saw divergence where price made higher highs and new addresses made lower highs,” comments on two posts read.

“…To me, all 6 are running corrections, also supported by declining volume.”

That low volume has previously made headlines as part of concerns that BTC/USD may see unduly significant moves thanks to a lack of liquidity.

Overall, however, price behavior relative to Fibonacci levels has stayed well within historical norms, TechDev added, and there is thus no reason to assume that another all-time high will not come before a bearish phase ensues.

“Our current correction (since Feb 2021) is taking place between the same two-cycle log fibs as a running correction has always taken place, with locally declining volume and new addresses,” he concluded.

Bitcoin new addresses (2-week moving average) vs. BTC/USD chart with Fibonacci levels. Source: TechDev/TwitterA recovery in waiting

As Cointelegraph reported, interest has broadly fallen away from Bitcoin throughout the past year, specifically when it comes to retail investors.

Related: Top or bottom? Traders at odds over whether Bitcoin will keep rising

Seasoned traders remain primed, however, with leverage still near all-time highs and institutions tipped to begin reentering the market.

Meanwhile, in Q4, TechDev began highlighting trends in Bitcoin’s relative strength index (RSI), which again showed that a higher all-time high should be due.

RSI remains significantly “oversold” for BTC/USD, data from Cointelegraph Markets Pro and TradingView shows, something which in times past has unanimously resulted in a reversal and upside price pressure.

BTC/USD 1-day candle chart (Bitstamp) with RSI. Source: TradingView




Cointelegraph By William Suberg

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Bitcoin’s (BTC) sudden crash on Jan. 10 caused the price to trade below $40,000 for the first time in 110 days and this was a wake-up call to leveraged traders. $1.9 billion worth of long (buy) futures contracts were liquidated that week, causing the morale among traders to plunge.

The crypto “Fear & Greed” index, which ranges from 0 “extreme fear” to 100 “greed” reached 10 on Jan. 10, the lowest level it has been since the Mar. 2020 crash. The indicator measures traders’ sentiment using historical volatility, market momentum, volume, Bitcoin dominance and social media.

As usual, the panic turned out to be a buying opportunity because the total crypto market capitalization rose by 13.5%, going from a $1.85 trillion bottom to $2.1 trillion in less than three days.

Currently, investors seem to be digesting this week’s economic data that shows United States December 2021 retail sales going down by 1.9% compared to the previous month.

Investors have reason to worry about stagflation, a scenario where inflation accelerates despite the lack of economic growth. However, even if this eventually proves that Bitcoin’s digital scarcity is a positive characteristic, markets will still take shelter with whatever asset is deemed safe. Thus, the first wave will potentially be damaging for cryptocurrencies.

Top weekly winners and losers on Jan. 17. Source: Nomics

Bitcoin price was flat over the past seven days, effectively underperforming the altcoin market’s 7% gain. Part of this unusual movement can be explained by layer-1 decentralized applications platforms showing a positive performance that was driven by Fantom (FTM), Cardano (ADA), Near Protocol (NEAR) and Harmony (ONE).

Loopring (LRC), a zkRollup open protocol for decentralized exchanges on Ethereum, presented the worst performance of the week. The DEX volume using the protocol peaked at $30 million per day in early December 2021, but is now near $6 million. Meanwhile, Dfinity (ICP) and Chainlink (LINK) are adjusting after a 40% or higher rally in the first 10 days of 2022.

Tether’s premium and the futures premium held up well

The OKEx Tether (USDT) premium or discount measures the difference between China-based peer-to-peer (P2P) trades and the official U.S. dollar. Figures above 100% indicate excessive demand for cryptocurrency investing. On the other hand, a 5% discount usually indicates heavy selling activity.

OKEx USDT peer-to-peer premium vs. USD. Source: OKEx

The Tether indicator bottomed at a 3% discount on Dec. 31, which is slightly bearish but not alarming. However, this metric has held a decent 2% discount over the past week, signaling no panic selling from China-based traders.

To further prove that the crypto market structure has held, traders should analyze the CME’s Bitcoin futures contracts premium. That metric analyzes the difference between longer-term futures contracts to the current spot price in regular markets.

Whenever this indicator fades or turns negative, it is an alarming red flag. This situation is also known as backwardation and indicates that bearish sentiment is present.

BTC CME 2-month forward contract premium vs. Bitcoin/USD. Source: TradingView

These fixed-month contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlements for longer. As a result, futures should trade at a 0.5% to 2% premium in healthy markets, a situation known as contango.

Notice how the indicator flipped negative on Dec. 9 as Bitcoin traded below $49,000 but it still managed to sustain a slightly positive number. This shows that institutional traders display a lack of confidence, although it is not yet a bearish structure.

Considering that the aggregate cryptocurrency market capitalization is down 9.5% to date, the market structure held rather nicely. The CME futures premium would have gone negative if there had been excessive demand for short-sellers.

Unless these fundamentals change significantly, there is not yet sufficient information available that would support calls for a sub-$40,000 Bitcoin price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.




Cointelegraph By Marcel Pechman

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The wider cryptocurrency market continued to see choppy, sideways price action on Jan. 17 with Bitcoin (BTC) experiencing a midday dip to $41,650. Across the market, trading volumes remain subdued and U.S. financial markets were closed in observation of the Martin Luther King Jr. holiday. 

BTC/USDT 1-day chart. Source: TradingView

Here’s what analysts are saying about Bitcoin’s price action and the impact today’s correction might have on BTC’s market structure.

Major resistance at $43,120

Analysis of the weekly Bitcoin price action was provided by crypto trader and pseudonymous Twitter user ‘Rekt Capital’ who posted the following chart showing that BTC is trading near a well-established support and resistance zone.

BTC/USD 1-week chart. Source: Twitter

Rekt Capital said,

“The new BTC Weekly Close shows that the black ~$43,120 level is figuring as new resistance. Technically, BTC continues to reside at the upper region of its current $38000-$43,100 range.”

Bitcoin’s 4-year cycle is starting to lengthen

A look at the long-term trend for Bitcoin was discussed by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following charts looking at the Bitcoin’s 4-waves pattern and Realized Cap HODL Waves. According to the analyst, there is a possibility that the typical 4-year cycle for BTC may be lengthening.

Bitcoin 4-wave pattern and realized cap HODL waves. Source: Twitter

van de Poppe said,

“Honestly, it would make a lot of sense. This cycle is longer than the previous one. The 4-year cycles aren’t happening anymore due to macroeconomic impacts. Therefore, this cycle will be higher & longer than everyone expects.”

Related: Bitcoin stays in tight range as analyst eyes potential ‘interesting week’ in BTC

“At least one more upward impulse”

The sentiment of a lengthening Bitcoin price cycle were echoed in a tweet from crypto analyst and pseudonymous Twitter user ‘Techdev’, who posted the following chart providing analysis of the “impulses and corrections over the cycles’ bull markets based on new address trends on-chain.”

Number of new Bitcoin addresses and impulse waves. Source: Twitter

Compared to the previous impulse waves outlined by Techdev, Bitcoin is still due for a green shaded price breakout in the current cycle before it resets and begins the next one.

Techdev said,

“At least one more upward impulse to come in my opinion before an impulsive downtrend (bear market) begins.”

The overall cryptocurrency market cap now stands at $2.02 trillion and Bitcoin’s dominance rate is 39.6%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.




Cointelegraph By Jordan Finneseth

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A YouTuber started a journey in September to see whether he could survive solely on Bitcoin as a means of payment while traveling to 40 different countries.

Speaking to Cointelegraph on Monday, YouTuber Paco De La India — or “Paco from India” — said though the spread of omicron had somewhat altered his original travel plans, he was still surprised at how many people had accepted Bitcoin (BTC) in countries where crypto was in a legal or regulatory grey area. Beginning his journey in the Indian city of Bengaluru, Paco sold his belongings in September 2021 and mostly relied on BTC donations to fund his trip — which, so far, has taken him across India, the United Arab Emirates, Thailand and Cambodia.

The YouTuber, who said he preferred to use non-custodial wallets and Lightning for BTC transactions, originally planned to visit 40 countries for 10 days each, but COVID restrictions had somewhat altered his itinerary. Paco is working around mandatory quarantines, the requirements of many countries that tourists stay within their borders for at least 14 days, and the additional costs for polymerase chain reaction, or PCR, tests.

Paco, speaking from Siem Reap, Cambodia

According to Paco, two people conducting his COVID test in India for travel to the UAE accepted BTC in lieu of fiat rupees without hesitation. In addition, he was able to negotiate with test takers in Thailand for a PCR test to travel to Cambodia. The YouTuber attributed part of the reason behind the acceptance of crypto payments to officials more concerned with verifying vaccine certificates than COVID tests.

“At the end of the day, it’s a piece of paper,” said Paco. “It’s just a piece of paper [for] which [there] is no way possible to verify. The only thing that they’re checking right now is the vaccine, because of the QR code.”

Related: Cryptocurrency Adoption: How Can Crypto Change the Travel Industry?

Though many countries have announced plans to verify the authenticity of COVID-19 test results using blockchain technology, there does not seem to be an international standard for immigration officials to recognize tests conducted in foreign nations. For example, travelers flying to the United States are required to complete a rapid COVID test within 24 hours of arrival, but not all health passport apps recommended by U.S. airlines can recognize theQR codes provided by foreign testing centers.

In addition to COVID tests, Paco said he had been able to survive on Bitcoin as a method of payment often by sheer chance, never forcing crypto on an unsuspecting party and surprised at how many random vendors were open to it. According to the YouTuber, he had been forced to avoid most public transportation in these four countries and use his debit card to fuel his bike, but was connecting with more people on the ground.

“Thailand is super crypto-friendly,” said Paco. “Cambodia is another [super friendly] place. UAE, it looks like that but I feel it’s just between the richest people.”

He added:

“I have changed my approach a lot. I’ve gone more from talking to the old people who have already lived their life to finding young people who are really tech-savvy […] They’re really curious about [Bitcoin]. It’s always: They want to make money. Everyone just looks at Bitcoin as making money.”


Cointelegraph By Turner Wright

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Bitcoin’s (BTC) volatility has been shrinking in the past few days. The standard deviation of daily Bitcoin returns for the last 30 and 60 days as calculated by the Bitcoin Volatility Index is at 2.63%, the least volatile it has been since November 2020.

Generally, tight ranges are followed by strong price expansions. In 2020, the low volatility period in November was followed by a sharp rally in mid-December, which resulted in a supercycle that carried the price all the way to $64,854 on April 14, 2021.

Daily cryptocurrency market performance. Source: Coin360

However, there is no certainty that the volatility expansion will happen only to the upside. The price could break out in either direction. Commentator Vince Prince warned that the high leverage ratio of Bitcoin could trigger a big chunk of stop-losses if the $40,000 support breaks down.

Could Bitcoin start a new up-move or will bears pull the price below the support levels, triggering a sell-off in altcoins? Let’s study the charts of the top 10 cryptocurrencies to find out.

BTC/USDT

Bitcoin has been trading near the 20-day exponential moving average (EMA) ($44,181) for the past few days. Although bulls have not been able to push the price above this resistance, a minor positive is that they have not given up much ground.

BTC/USDT daily chart. Source: TradingView

If the price turns up from the current level or $41,725.95, the bulls will make one more attempt to clear the overhead resistance at the 20-day EMA and the horizontal resistance at $45,456.

If they do that, the pair could rise to the 50-day simple moving average (SMA) ($47,680) where the bulls may again encounter stiff resistance from the bears. A break and close above this resistance could push the pair to $52,088.

Conversely, if the price breaks below $41,725.95, the BTC/USDT pair could drop to the strong support at $39,600. This is an important level for the bulls to defend because if it breaks down, the selling could intensify and the pair may plummet toward $30,000.

ETH/USDT

Ether’s (ETH) recovery off the support line of the descending channel fizzled out near the 20-day EMA ($3,439), which suggests that the sentiment remains negative and traders are selling on rallies.

ETH/USDT daily chart. Source: TradingView

The bears will now try to pull the price below $3,188. If they manage to do that, the ETH/USDT pair could drop to $2,928.83. This is an important support to watch out for because if it collapses, the decline could extend to $2,652.

Contrary to this assumption, if the price turns up from the current level and breaks above the 20-day EMA, the bulls will try to push the pair above the resistance line of the channel. If that happens, the pair could rise to $4,200.

BNB/USDT

Binance Coin (BNB) failed to break above the resistance line of the descending channel pattern on Jan. 16. This may have sparked selling by short-term traders, pulling the price below the 20-day EMA ($488).

BNB/USDT daily chart. Source: TradingView

If bears pull the price below $466.50, the BNB/USDT pair could decline toward the support line of the channel. The flat moving averages and the RSI just below the midpoint, indicate equilibrium between the bulls and bears.

If the price rebounds off $466.50, the bulls will again try to thrust the price above the channel and the 50-day SMA ($530). If they succeed, it will signal a possible change in trend. The pair could then rally to $572.

ADA/USDT

Cardano (ADA) broke and closed above the 50-day SMA ($1.34) on Jan. 16, indicating that bulls are attempting a comeback. The price could now reach the resistance line of the descending channel.

ADA/USDT daily chart. Source: TradingView

The moving averages are on the verge of a bullish crossover and the RSI has jumped into the positive zone, indicating that bulls have the upper hand in the short term. If buyers propel and sustain the price above the channel, it will signal a change in trend.

The ADA/USDT pair could first rally to $1.87 and if this level is crossed, the next move could be to $2.47. On the other hand, if the price turns down from the resistance line, the pair could again drop to the moving averages.

SOL/USDT

Solana (SOL) continues to trade inside the descending channel pattern. The bulls attempted to push the price above the 20-day EMA ($154) on Jan. 13 but failed. This suggests that bears are selling on every minor rally.

SOL/USDT daily chart. Source: TradingView

The bears will now attempt to pull the price below the support at $130. If they succeed, the SOL/USDT pair could drop to the strong support at $116. This is an important level for the bulls to defend because a break below it could sink the pair to the support line of the channel.

Contrary to this assumption, if the price turns up from the current level and breaks above the 20-day EMA, the pair could rise to the resistance line of the channel. A break and close above the channel will signal a possible change in trend.

XRP/USDT

Ripple (XRP) has been trading between the 20-day EMA ($0.79) and the support at $0.75. This squeeze is soon likely to end in a range expansion.

XRP/USDT daily chart. Source: TradingView

If the price breaks below $0.75, the XRP/USDT pair could resume its downtrend and drop to $0.69 followed by a decline to $0.60. The downsloping moving averages and the RSI in the negative territory indicate advantage to bears.

Contrary to this assumption, if the price turns up from $0.75 and breaks above the moving averages, it will suggest accumulation at lower levels. The pair could then start its northward march toward the stiff overhead resistance at $1.

LUNA/USDT

Terra’s LUNA token could not rise and sustain above the 61.8% Fibonacci retracement level at $87.88 on Jan. 15 and 16. This may have triggered profit-booking by short-term bulls.

LUNA/USDT daily chart. Source: TradingView

The price has turned down to the 20-day EMA ($80.17), which could act as a support. If the price turns up from the current level, the bulls will again try to propel and sustain the LUNA/USDT pair above $87.88.

If they succeed, the pair could rally to the 78.6% Fibonacci retracement level at $94.80. Alternatively, if the price slips below both moving averages, it will suggest that traders are rushing to the exit. The pair could then drop to $68.33.

Related: Propy rallies 227% as real estate NFTs become reality and PRO lists at Coinbase

DOT/USDT

Polkadot (DOT) rose above the 20-day EMA ($26.90) on Jan. 12 but the bulls could not push the price above the 50-day SMA ($28.15). This may have attracted profit-booking from the short-term traders.

DOT/USDT daily chart. Source: TradingView

The bears pulled the price back below the 20-day EMA on Jan. 17. If sellers sink the price below $25.45, the DOT/USDT pair could drop to the strong support at $22.66.

The 20-day EMA is flat and the RSI is just below the midpoint, indicating a balance between supply and demand. This suggests that the pair could remain range-bound between $22.66 and $32.78 for a few more days.

If the price turns up from the current level and rises above the 50-day SMA, the pair could rally to $32.78. The bulls will have to clear this hurdle to signal the start of a new up-move.

AVAX/USDT

Avalanche (AVAX) turned down from the 20-day EMA ($95) on Jan. 16, indicating that bears continue to defend this level aggressively. If the price sustains below the uptrend line of the symmetrical triangle, the next stop could be $75.50.

AVAX/USDT daily chart. Source: TradingView

The downsloping moving averages and the RSI in the negative zone indicate that bears have the upper hand. A close and below $75.50 could complete a descending triangle pattern, which could signal the start of a new downtrend.

The AVAX/USDT pair could drop to $57.02 and then to $50. This negative view will be invalidated if the price turns up from the current level and breaks above the downtrend line. The pair could then rally to $128.

DOGE/USDT

Dogecoin’s (DOGE) failure to rise and sustain above the $0.19 overhead resistance on Jan. 15 may have attracted profit-booking from short-term traders. This has pulled the price to the 20-day EMA ($0.16).

DOGE/USDT daily chart. Source: TradingView

The flattening 20-day EMA and the RSI just below the midpoint signal a consolidation in the near term. If bears sink and sustain the price below the moving averages, the DOGE/USDT pair could drop to $0.13.

Conversely, if the price rebounds off the current level, the bulls will make one more attempt to push and sustain the pair above $0.19. If they manage to do that, it will indicate the start of a new up-move.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.


Cointelegraph By Rakesh Upadhyay

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Bitcoin (BTC) hovered near $43,000 on Jan. 17 as “boring” price action combined with signs that the market could be stabilizing.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewLeverage comes off all-time highs

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD staying firmly within its established trading range between $40,000 and $45,000.

With few surprises expected thanks to the Wall Street holiday, traders took the opportunity to call for a level-headed approach on focus on altcoins.

Popular analyst William Clemente meanwhile highlighted Bitcoin bouncing along an ascending trendline this month, this soon to approach a turning point as part of a wedge construction.

“Should be an interesting week,” he forecast.

Beyond spot price, data showed that market composition still employed near all-time high leverage, this only just beginning to reduce in week two of January.

Such leverage prevalence previously sparked concerns that a liquidity cascade could be made all the more real, with a significant move up or down hitting traders.

“The highly increased leverage ratio of Bitcoin that since some days remains at an all-time high is showing concerns that a massive volatility increase will follow up,” commentator Vince Prince warned on the day.

“Technically if Bitcoin breaks the $40,000 level this will trigger a big chunk of stop-losses.”

Bitcoin leverage ratio chart. Source: CryptoQuantCardano stands out among altcoins

On the topic of altcoins, meanwhile, some moves diverged from the flat performance seen more broadly.

Related: BTC ‘likely’ to repeat Q4 2020 move — 5 things to watch in Bitcoin this week

The top 10 cryptocurrencies by market cap were led by Cardano (ADA), which conspicuously bucked the sideways trend to post daily gains of almost 9% at the time of writing. This placed ADA/USD at a three-week high.

“Crucially, the market psychology is working on $ADA again,” Cointelegraph contributor Michaël van de Poppe summarized.

“Last weeks the sentiment was comparable to a graveyard and expectations were that it would go south. Now, the sentiment is switching and the hype is getting back in.”

ADA/USD 1-day candle chart (Coinbase). Source: TradingView

Further down, Litecoin (LTC) managed 4.5% gains in some brief respite for hodlers.

“Another bounce at strong support. A break of the blue resistance should send this flying. Not there yet,” trader, analyst and podcast host Scott Melker added about the LTC/USD pair.




Cointelegraph By William Suberg

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