Bitcoin
Bitcoin Market Technical Analysis: $12k Within Reach
Once again, Bitcoin sets a new all-time high of $11,800 on December 4, 2017. The $12,000 mark is well within reach in the next few days.
There seems to be no limit to how high Bitcoin will trade.
Demand for Bitcoin continues to grow with the announcement that the first bitcoin futures contracts on a regulated U.S. exchange are set to launch next week. The Chicago-based CBOE Futures Exchange (CFE) has announced it will begin listing Bitcoin futures contracts for trading.
The futures will begin trading at 5 p.m. CT on Sunday December 10th under the ticker symbol “XBT”.
The Chicago Mercantile Exchange (CME), will begin listing Bitcoin futures on December 18th.
This news has sparked even more interest in Bitcoin for investors that have otherwise been skeptical of cryptocurrencies.
Chart #1: Bitcoin Daily
The daily chart above shows the sustained upward move that Bitcoin has been on since November 13th.
At present, Bitcoin has closed up on the daily chart ten of the last eleven days, as shown in the shaded area. That is on the upper end of the statistical range for number of daily up-bars in a set.
From a technical analysis perspective, under any other market circumstance, a short position would normally be called for.
For Bitcoin however, trading from the short-side is far too risky.
It seems that taking a long position on a price dip is the only viable strategy for now.
To do this in such a volatile market without getting stopped out, timing into the trade correctly is critical.
The 5-minute chart below (Chart #2) is revealing a pattern that may help with this endeavor.
Chart #2: Bitcoin 5-Minute
The 5-minute chart above shows low points in the Bitcoin price action that correspond with the lows of the daily bars on the daily chart (labeled on Chart #1 as Price dips) that have significant down-side wicks on the candlestick bar.
This represents the down-side price fluctuation from the daily open for that trading day.
What is of particular interest is that each daily price low-point on the 5-minute chart is accompanied by a significant spike in volume (shown by the hand pointers).
Since Bitcoin does not seem to exhibit price dips that last for more than one or two days, we’re left with entering on an intraday price dip.
These price dips to daily lows that happen concurrently with volume spikes may be good entry signals for a long position.
This should help with timing into a trade so as to avoid falling into a steep draw-down if an extended price pullback does happen.
We will be updating our subscribers as soon as we know more. For the latest updates on BTC, sign up below!
Image courtesy of coinmarketcap.com
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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