The broad cryptocurrency landscape continues to trace out a major-degree corrective phase that was born into existence about two weeks before the end of the last calendar year. That makes this process now roughly 7 months old.
The crypto world moves at a fast pace relative to other markets, and 7 months is a lifetime, so traders and investors are doubtless hard on the search for tangible signals of a coming change in character in the charts.
Naturally, for much of the general public, Bitcoin is somewhat synonymous with the cryptocurrency complex. In a sense, it functions as almost a major index or average – like the S&P 500. While this is far from true in any literal sense, the correlation framework that defines cryptocurrencies in general often reinforces this intuitive notion perhaps more than it should.
Hence, whether justified or not, in many important ways it is hard to get away from the sense that, as Bitcoin goes, so goes crypto.
As such, when we take a close look at the Bitcoin (BTC) chart, we are looking at the defining trend for the complex as a whole. And that trend is quite clearly “down”, and has been for the better part of the past eight months.
Without question, the key level to appreciate here is the $6000 level. In terms of closing prices, this level more or less held as key support back in early November of last year, before the most significant and maniacal portion of the Bitcoin bubble sprint higher from mid-November to mid-December.
This same level also played a significant part in defining the lows that Bitcoin reached in early February of this year. And, as fate would have it, this is just about the level at which we held that key support late last month.
It is not insignificant to note that the lows recorded in BTC in April 2017 – as a final check before the parabolic move higher began – were right around the $1000 level. If one establishes this level as the defining low point in a Fibonacci retracement ruler, then the $6000 level is also a near-perfect 78.6% Fib retracement of the entire bubble run.
However, perhaps the most important point is this: we recently saw a break underneath the March/April 2018 lows, followed by a test of the underside of the $6000 level, further followed by a grinding rally that has now lasted nearly two weeks. This rally has not been accompanied by any true game-changing positives for Bitcoin in terms of news or headline drivers.
This is a bit of a red flag for bears holding short interest in the BTC futures: a test of new lows that gives way to a sharp rally on no new bullish catalysts can often be a sign of a selling exhaustion point.
Hence, one may make a case that the BTC chart is beginning finally to carve out the ingredients of a base under construction. Stay tuned!
As one might expect, looking at the ETH chart is very similar to looking at the Bitcoin chart. The correlation between BTC and ETH has been quite high since midway through last year.
However, we have begun to see a bit of a divergence in recent action that suggests some favoritism toward ETH during the immediate future as compared to Bitcoin.
The divergence is built off the fact that, while Bitcoin broke beneath its March/April 2018 lows during June trade, ETH held above that same pivot point on its own chart, putting in sharp support at the very important $400 level.
At the same time, Ethereum (ETH) was able to carve out a pivot at an extreme oversold reading on the RSI chart, but a positive divergence relative to the same point on the RSI oscillator seen several months ago at the key pivot low.
While this may signal a potential for bullish action ahead in ETH, it is important that traders not get carried away with the small timeframe signals.
The fact still remains that, in the case of both of these coins, and in the larger case defining the crypto landscape in general, we are dealing with charts that are mostly still solidly underneath their major moving averages, with many of them moving underneath downward sloped averages.
In such a situation, the odds don’t favor aggressive long positioning until some level of further technical confirmation starts to rear its head on the charts.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Charts courtesy of tradingview.com
Blockchain technology outshines Bitcoin and Gold during global pandemic
As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.
However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world.
Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.
What is blockchain technology?
Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see.
Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).
Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…
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The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
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XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
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The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
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