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IOTA (MIOTA) Technical Analysis: Key Levels To Watch

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IOTA Chart

Now that the holiday season has ended and markets are beginning to normalize, volume should start to increase, especially in the cryptocurrency markets.

The lack of volume resulting from traders taking Christmas holiday vacations caused most of the high-flying cryptocurrencies to take a slight break from setting new all-time highs every few days and settle into a price consolidation period.

This break in market action has also given traders and investors an opportunity to take a look at some of the other, less-popular cryptocurrencies that have been quietly making rapid gains, albeit not as impressive as Bitcoin or Ethereum, but impressive nonetheless.

Furthermore, the beginning of a new year is when most investors, both personal and institutional, re-evaluate their investment portfolios and make adjustments according to current market conditions.

There’s no doubt that cryptocurrencies have garnered a great deal more consideration after the incredible gain made over 2017.

IOTA is one such cryptocurrency that is slowly gaining recognition by traders and investors alike.

First, from a fundamental perspective, IOTA’s Tangle technology solves some of the issues that blockchain technology used by some of the more popular cryptocurrencies such as Bitcoin and Ethereum, have yet to contend with scalability, processing time, and high fees.

In a “nutshell,” IOTA’s Tangle technology eliminates the need for mining, and consequently the need to pay fees to miners; therefore making it well suited for very small no-fee transactions which would otherwise not be cost effective for the end user, or the miner.

Also, by eliminating the mining process, transaction authentication is processed much faster, all the while maintaining a very high degree of security.

This will allow for the much broader application of the cryptocurrency, eventually fostering a higher demand for it.

Chart #1: IOTA Daily

From a technical Analysis perspective, IOTA is currently trading at $3.88, a far cry from the hundreds, or thousands of dollars that Ethereum or Bitcoin are presently priced at.

This makes IOTA a viable long-term investment on which a large-scale position can be taken with relatively little downside risk and a great deal of upside potential.

Unlike Ethereum or Bitcoin in which the potential downside makes a substantial investment very risky.

IOTA hit its all-time high of $5.80 on December 19, 2017.

It has since then formed a classic head-and-shoulder price reversal pattern which is very near completion (noted in Chart #1 above).

The completion of the pattern presents a win-win scenario.

At its current price, if IOTA reverses and drops in price, as head-and-shoulder usually patterns do, there’s not much downside for it to drop.

This presents an opportunity to enter long or add to existing positions, based on the aforementioned fundamental technology assessment.

If IOTA breaks through the upper key level labeled on Chart #1,  there will be plenty of future up-side potential to take advantage of.  We will be watching closely.

We will be updating our subscribers as soon as we know more. For the latest on IOTA, sign up below!

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.

Image courtesy of coinmarketcap.com

Bitcoin

Bitcoin Price Could Get Extremely Ugly – Barrons

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Bitcoin (BTC/USD) price recent rebound has faded and its easy to see why. After soaring to a two-month high of $21,470, Bitcoin has pared back some of those gains to trade at $20,895. This decline is mostly because of the fundamentals and technicals of the coin as I will explain below.

Bitcoin Fundamentals

The main fundamental reason why Bitcoin is pulling back is the rising fears of a recession. A recent survey by WSJ placed the risk of a recession in the US at 61%. That is notable since it is the highest the figure has been in months. 

At the same time, Wall Street banks like Goldman Sachs, Citigroup, and Wells Fargo published weak financial results. Most of them said that their profits tumbled by more than 30% in the final quarter of 2022. Reading between the lines shows that most of them have allocated millions of dollars in credit loss provisons.

Historically, these provisions tend to rise when there is a fear of a recession. At the same time, many safe American companies have starte announcing substantial layoffs recently. Amazon is laying off 18,000 people while Microsoft, Salesforce, Meta Platforms are laying off thousands of workers. In a note, an analyst at Oanda said:

“Bitcoin prices are weakening as growth fears have Wall Street worried a…

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Bitcoin

2 Reasons Why Bitcoin Price is Soaring in 2023

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Bitcoin price has staged a strong comeback in 2023 as investors rushed to buy the dip. The BTC/USD exchange rate surged to a high of 21,465, the highest level since November. It has risen by more than 30% from the lowest point in 2022. Here are the top reasons why BTC price is soaring.

Mild recession hopes

Bitcoin and other financial assets like stocks and gold have rallied because of the falling inflation in the United States and around the world. Consumer inflation dropped from 7.1% in November to 6.5% in December. Core inflation dropped to 5.7%. 

And on Wednesday, data from the US showed that wholesale prices dropped by 0.5% in December, higher than the expected 0.1%. The producer price index (PPI), rose by 6.2%, the lowest level since March 2021. This decline happened because of the falling energy prices.

Another data showed that retail sales tumbled in December. They dropped by 1.1% in December, the biggest decline in 2022. In a note, an analyst at RSM said:

“The lag impact of elevated inflation weighs heavily on U.S. households, it’s very clear that the median American consumer is still reeling from the loss of wages in inflation-adjusted terms.”

A recession is often seen as a bad thing. But in the financial assets, it can be seen as…

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Bitcoin

Bitcoin Price is Getting Severely Overbought: Is it a Buy?

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Bitcoin price made a spectacular comeback in the past few days as investors reflect on encouraging data from the United States. The BTC/USD exchange rate surged to a high of $21,365, the highest point since November. It has risen by more than 35% from the lowest level in November. So, is the tide turning?

Will the Fed pivot?

Bitcoin and other global assets continued surging as investors reacted to the latest American economic data. Data published last week revealed that the American consumer inflation inched downward in December. It dropped to 6.5% in December, the sixth straight month of decline.

A week earlier, data by the Bureau of Labor Statistics (BLS) showed that the country’s unemployment rate dropped to 3.5% in December. In the same period, wage growth increased by 4.7%, lower than the previous month’s 5.2%. A decline in wage inflation is a positive sign for Bitcoin and other financial assets because of the Federal Reserve.

The Federal Reserve has been in a strong tightening phase in the past few months as it continues its battle against inflation. Its goal is to soften the economy and prevent a hard landing. Such a situation will happen when wage growth eases. 

Therefore, Bitcoin has risen because of the rising chances that the Fed will start to pivot. Historically, Bitcoin and other…

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