Bitcoin continues to be the leader of the pack while Ethereum and altcoins can’t make a move. Just this morning we witnessed Bitcoin blast through the 7350 double top on the daily charts. That spot was just too tempting for Crypto Arthur Hayes to run Bitcoin higher and hit all the shorts stops on BitMex.
Bitcoin shorts keep coming
Over a two day span, the shorts built their positions from 22k from 34k. In all my time trading Bitcoin, I’ve never seen such a large buildup in short positions in such a short amount of time. The shorts have been rather relentless this year and must have been certain that Bitcoin was going lower after the 7350 resistance wall held firm.
It seems this year that many are still betting on the Bitcoin seeing $5000. I believe that the bears had their chance this year when Bitcoin tested $5700. That strong support held and now we are sitting at $7400. I have been saying that Bitcoin is to be bought below $6500. Now that we are above $7300, us HODLers have to let things play out. While the bears will not go down without a fight, the momentum is with us bulls.
Ethereum is depressing
The talk among the Crypto Twitter universe this weekend was the article titled “The Collapse of ETH is Inevitable” by Jeremy Rubin. While I am not technologically savvy enough to determine whether there’s merits or not, I instead focus on what others are saying. The most interesting in my opinion came from Paul Everton who had an interesting response to Vitalik Buterin’s own rebuttal.
Remarkable. Vitalik Buterin says that with the current system $ETH will go to zero. But he'll save it by changing everything about the protocol. Ethereum fans don't want an open financial system, they just want $ETH to go up. pic.twitter.com/nbLCkpjTB5
— Paul Everton (@realpauleverton) September 3, 2018
For me, I’m a trader and not a technologist, so I can only speak from a price perspective. Looking at the price of Ethereum and there is nothing to get excited about. While I am bullish Bitcoin, I believe Ethereum is heading lower. The Ethereum market is very weak and rallies are not sustainable. The ETH/BTC price keeps heading lower and I have no confidence that the market will turn. Here’s the daily chart for ETH/BTC.
I expect Bitcoin to continue strengthening and that will put further pressure on Ethereum. Bitcoin has in effect became the safe haven for crypto traders. Articles on the death of Ethereum are not helping improve investor sentiment at the moment and while ETH is not a falling knife, it is at least a constant paper cut for those trying to pick the bottom. Unfortunately, I am an ETH HODLer and just watching the slow bleed take hold.
The next levels I am watching for Bitcoin are 7440 and then 7500. If we break above 7500, look for the market to test 7800 then 8000. I don’t expect it to be violent as we are not seeing the huge candles like before. I think Crypto Hayes just keeps running stops and gives the shorts enough confidence to come in and short again, only to be squeezed further at a later date of Arthur’s choosing. Overall, it is fun watching and I expect higher prices this week.
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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. This author is long Bitcoin and Ethereum.
Image courtesy of Pexels
Charts courtesy of tradingview.com
Why Chinese New Year Affects Bitcoin (BTC)
Bitcoin (BTC) lost about $100 in value in the last week, and, while reasons behind the drop in crypto prices can often be hidden and unclear — this time, that is not the case. The reason for this drop is believed to be the celebration of the Chinese New Year.
The New Year celebration was over more than a month ago for most of the modern world. However, things are a bit different in China. This is a country which is considered to be one of the oldest ones in the world, with a long and complex history. The country’s traditions are fascinating to many around the world, as so many of them are different from western culture. One of these traditions is the Chinese New Year.
The New Year celebrations in China start on January 28th, which was a week ago. The New Year itself is today, February 5th, although the celebrations and festivities are going to last until February 19th. For the people of China, and all those around the world who follow the country’s tradition, this is the time to relax, take a break, and perhaps travel and visit friends and family. But, what does it have to do with Bitcoin?
China and Bitcoin
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EO.Finance Launches Highest Paying Crypto Referral Program of 2019
The EO Referral Program, already touted to be a significant addition to the ecosystem has been launched, and more details can finally be revealed. Offering 30% of transaction fees for each referral, it is expected to be the highest paying crypto referral program of 2019.
Each user will receive their own unique invite link, which can be shared with friends or via social media, in order to start earning 30% of the companies fees for every transaction made by someone who registered using their unique link. Furthermore, receive 5% of the fees for each new referral introduced by your own referral, increasing earning potential and adding even more benefits to an already feature-packed ecosystem. The fact the ecosystem supports credit and debit card transactions, as well as more than 40 cryptocurrencies means it will be even easier for you to start earning from your referrals.
The EO Referral Program will also extend to EO.Trade following launch, meaning it will be possible to earn from a single referrals transactions across multiple products within the EO ecosystem. It is important to note that the figure of 30% is significantly more than most competitors offer.
Payment will be made in the same currency as was purchased or exchanged. Withdrawal of the profits earned via the program can be made instantly, meaning you can earn immediately from your referral.…
Is Bitcoin (BTC) Ready for Another Surge?
It is no secret that Bitcoin (BTC) has had a rough 2018. The coin has dropped by over 80% from its all-time high in a matter of months, it experienced two market crashes, a constantly bearish market, and even troubles within its own ecosystem. Crypto investors spent the entire year hoping for a surge that never arrived, and since BTC is the most influential coin within the crypto space, its behavior usually dictates the pace for other coins as well.
Then, the year finally ended, and investors believed they could finally start anew, hoping to see BTC perform better in 2019. While Bitcoin is certainly performing better than in 2018, the current state of things is still far away from a rally. However, there is a possibility that this might change in the future.
Projects that could have sparked the next rally
As mentioned, crypto investors around the world were hoping to see a new price surge with the arrival of the new year. So far, this has not happened, and while there were several events believed to be able to boost BTC value, several complications prevent them from occurring.
One of them is the launch of the Bakkt Bitcoin Futures Exchange, which was scheduled to happen on January 24th. However, due to the long-lasting US government shutdown, the exchange failed…
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