Bitcoin
Bitcoin News: Will $6000 Hold?
Our bullish enthusiasm certainly got tempered after Bitcoin dropped $300 yesterday on no new Bitcoin news. The Bitcoin price just could not break through the 6500-6600 resistance zone. As usual, what can’t go higher must go lower.
The problem has been very light volume as many traders are on the sidelines waiting for Bitcoin news. We have the Bitcoin ETF approval coming up on September 30th and many traders don’t want to press their bets. The lack of volume also creates problems where the whales come in and can move the market and spook many longs out of their positions. I, for one, was positioned pretty long expecting the next leg to be higher. Unfortunately, the price has come down and I will just have to HODL my core position and wait.
While I am waiting, I am contemplating what the next move shall be.
Bearish case
So let’s say Bitcoin takes out the 6100 double bottom on the charts as shown on the BitMex chart.
Do I press a short or do I wait and average in a long? If we take out 6100, we will most likely test the 5740 lows. If 5740 fails, the target for a lot of traders is 4820.
I believe the correct course of action is to average in on a long. I will scale in bit by bit as the price drops. The reason? Because wherever it bottoms, I think we will see a very significant price bounce and recovery and it will happen rather quickly.
Why not short?
My main reason for not shorting is that I cannot be sure when the break will come. I don’t want a short triggered and then I get into a short position when I am a sleep, the market collapses, but then stages the rally I am looking for. I don’t want to position short, not at these levels. The best thing I can do is throw limit orders to buy around 5800, 5700, 5500, 5000. This way I am averaged in, especially if a flash crash happens. This could be the most likely scenario if we get panic selling on new lows. The good news is that if this happens, there is a lot of money on the sidelines waiting to buy. That’s why I am not worried if the market goes lower.
Psychological effect
The biggest issue I have with prices back around 6250 is psychological. This bear market is wearing down a lot of people. I can tell because Google search traffic is down. Crypto investors are just not following their coins like before. The bear market has decimated many investors with many having losses greater than 90%. To recover their losses, the coins need to rise 1000% or more just to break even.
Gameplan
The best spot to be right now is on the sidelines in fiat or Tether. I am HODLing Bitcoin at these levels and will buy more as the price drops.
Bottom line
My team and I are watching the markets closely waiting for next big move. To hear more of my thoughts on the crypto markets, tune into my interview with Crypto Rich on his YouTube channel. Hope you like it.
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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. The author is long Bitcoin. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Charts courtesy of Trading View
Image courtesy of Pexels
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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