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Bitcoin (BTC) Technical Analysis – 2nd Time A Charm?

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Back in 1Q18 in the January-through-March period, all eyes (including yours truly) were focused on the developing inverted Head-and-Shoulders (H&S) pattern forming with Bitcoin (BTC).

While reminiscing back in time, we couldn’t help wondering at that time, whether there were far too many eyes looking at and anticipating a break into higher ground out of the developing inverted H&S pattern. As the pattern played out, the end result was a failure and down the slippery slope did BTC find itself before ultimately bottoming-out at the 6.4K level.

Well, as it turns out, we’re once again in a similar position with BTC forming yet another potential inverted H&S pattern and we ask ourselves the same question today as we did just a couple of Months ago, “Are there far too many eyes (ourselves included) witnessing another replay of the same scene, albeit, just a different time?”

With that said, let’s take a look at the technical picture and try to determine whether this time around is any different and whether both investors/traders may be treated to a better result.

As we can see from the daily chart above, BTC was forming the noted inverted H&S pattern back in 1Q18. We can also witness that the pattern failed at the Neckline via the dark blue line despite BTC trading above all of its important moving averages (20/50/200DMA’s) and subsequently, was treated to a rather harsh sell-off down to the 6.4K level.

Fast forward to today, and here we are once again with BTC forming yet another inverted H&S pattern below its 200DMA yet, trading above both its 20 and 50DMA’s with the Neckline offered via the purple horizontal line.

Thus, are we setting up for yet another disappointment or, will the second time around be a charm for BTC?

While it’s far too premature to declare, moving forward, both investors/traders may want to focus their attention on the following levels for further evidence and clues.

If at any time moving forward, BTC can clear the 9768; 9900 and perhaps more importantly, the 10,112 level/s and capable of holding such figures, the probability for a positive outcome for the developing pattern will certainly provide clues/evidence that the second go-around may just be a success.

If, on the other hand, BTC is unable to clear the 10,112 level and hold, or, perhaps more importantly, witness upside ‘Follow-Through’, BTC may just find itself on the receiving end of a similar result as we witnessed back in 1Q18.

Nevertheless, the inverted H&S continues to develop. We await the verdict. While it was six times – 6X a charm for Vinny in the film “My Cousin Vinny”, perhaps BTC will fair better in its second attempt at delivering the goods, producing a happy ending.

Happy Trading!

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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 Matt Wolynski via Flickr

Chart courtesy of tradingview.com

Bitcoin

Why Bitcoin Price Remains Stable Before the Expected Hike

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The cryptocurrency rallied a few days back, but now, it has moved closer to 38.2% Fib level. Investors are enthusiastic that as it remains at this level for some time, and stabilize. The next move in Bitcoin price will take it to the 61.8% Fib level. This is when the hike in the price of the cryptocurrency will occur towards $4,200. However, after the surge in price, the upcoming weeks will see the Bitcoin falling swiftly to $3,000.

The truth is that if this move fails to occur, there may not be an improvement in the value of the digital currency. Also, this movement will enable the “bullish gartly pattern” we saw on the BTC/USD 4H chart to become a reality. Also, we are expecting that the Bitcoin price will decline the same way it has been recovering since early February.

Why this week’s closing price matters

Presently, Bitcoin price is still trading above what the intrinsic value is showing on larger time frames. However, we can see adequate room to accommodate short-term rallies. The price at which Bitcoin closes this week is very critical. It will be a clear indication as to how the digital currency will move in the coming weeks.

If Bitcoin closes at a price above $4,000, we are hopeful that the correction may come from early next week. On the other hand, any…

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Bitcoin

Stanford Lecturer praises XRP over Bitcoin

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The world of cryptocurrencies continues to cause controversies even now, particularly when it comes to matters such as the superiority of one coin over others. According to recent reports, one student from Stanford University has stated that one of Stanford’s guest lecturers — Dr. Susan Athey — bashed the first and largest cryptocurrency, Bitcoin, while praising XRP.

Does guest lecturer go anti-Bitcoin?

In late February, Stanford’s student called Conner Brown came out publicly with a claim that Athey described Bitcoin’s network and protocol inaccurately, and that she also used the opportunity to make unfounded criticism. Athey, who also sits on Board of Directors at Ripple Labs — XRP’s parent company — supposedly also stated that XRP provides solutions to all issues mentioned in regards to Bitcoin.

According to Brown’s comments on the matter, the lecture in question took place over a month ago, and after attending it, he wrote an open letter to Standford, explaining the incident. In the letter, Brown claims that Athey inaccurately presented Bitcoin’s consensus protocol and overstated several issues, such as the threat of a 51% attack on the coins network, as well as Bitcoin’s mining centralization.

However, the main problem with the lecture, as Brown sees it, is the professor’s claims that XRP presents a solution to these problems.

The claims caused Dr. Athey to respond publicly via Twitter, stating…

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Bitcoin Chasing Green — First Positive Month Since July In Sight

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The crypto market has started seeing gains in mid-February, with Bitcoin (BTC) following the bullish trend as well. In fact, the largest coin was on its way of seeing the first positive month since July of the last year. Even though its price was struggling to permanently overcome the major resistance at $4,000, the coin kept trying, and as long as its price doesn’t drop below $3,414, this goal can still be achieved

The return of the bearish trend which briefly overtook the market on February 24th caused a lot of damage, although Bitcoin managed to remain above $3,800. Following the crash, BTC started seeing minor gains once again, indicating that the bears have withdrawn for now.

What does the future hold for BTC?

As mentioned, Bitcoin can only complete a positive month if its price remains above $3,500 until the end of February. At the time of writing, the price sits at $3,807 according to TradingView, with an increase of 0.58% in the last 24 hours. As things are right now, it is likely that BTC might succeed in doing this, as its price performed relatively well ever since January 11th, even though it remained between $3,300 and $3,700.

Chart courtesy of TradingView

The recently-emerging bullish trend took it beyond this, and while the price…

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