Bitcoin
IOTA (MIOTA) Technical Analysis: Key Levels To Watch
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 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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