Here’s Why Bitcoin Could Rally to $10,000 Before Seeing a Brutal Decline

Ursprünglich erschienen auf: https://thebitcoinnews.com/heres-why-bitcoin-could-rally-to-10000-before-seeing-a-brutal-decline/

Bitcoin’s intense volatility seen yesterday didn’t let up overnight, as the benchmark cryptocurrency pushed as high as $9,500 before facing a swift rejection
The crypto has been able to stabilize within the upper-$8,000 region in the time since
Analysts are now noting that this strong upwards momentum could lead BTC as high as $10,000, although it may face a brutal rejection at this level that leads it significantly lower

Bitcoin and the aggregated cryptocurrency market incurred an intense uptrend yesterday that allowed the benchmark crypto to rally from lows of $7,700 up to highs of $9,500 all in the span of a short 24-hour period.
This overtly bullish price action fundamentally altered BTC’s market structure, leading many analysts to grow increasingly bullish.
In the short-term, this bullishness may be enough to push the crypto significantly higher – even potentially sparking a movement to $10,000 – although analysts do not believe that this level will be easily surmounted.
Bitcoin Forms Bullish Undercurrent as Analysts Watch for Further Upside 
At the time of writing, Bitcoin is trading up over 7% at its current price of $8,800 – marking a notable climb from recent lows of $7,700.
This also marks a slight decline from highs of $9,500 that were set overnight when the crypto’s momentum reached a boiling point.
It is important to note that this overnight extension of the crypto’s momentum was short-lived, and ultimately resulted in Bitcoin declining back down to the upper-$8,000 region – where it has apparently been able to establish some support.
One popular pseudonymous options trader shared his thoughts on Bitcoin, explaining that high liquidity and fresh demand could be two factors that help push BTC well into the $9,000 region, and possibly even as high as $10,600.
“BTC long update: Tightened up stop, maximum loss 0.3R. Reasoning for this trade: Liquidity + fresh demand, a previous monthly open, and 0.5 retracement. All this taking place in a strong uptrend. My targets are 92xx, 94xx, and a moonbag for 10.6K,” he explained.
Image Courtesy of Chase_NL
BTC Could See Dire Rejection at $10,000
Even if Bitcoin’s rally does extend significantly further and pushes the crypto up towards $10,000, the intense resistance at this psychologically important level could be enough to spark a dire selloff.
Another popular cryptocurrency analyst on Twitter mused this possibility, offering a chart showing BTC making a bid at this level before retracing back into the mid-$8,000 region.
Image Courtesy of Mac
If this possibility does unfold, yet another rejection at the five-figure price region would be grave, as BTC has historically struggled to stabilize within the region.
The short-lived pump in late-2019 led the crypto as high as $10,500 before it began retracing, ultimately dropping as low as $3,800 in mid-March.
Unless bulls garner sustainable buying pressure, similar price action could soon unfold.
Featured image from Unplash.

Post source: Here’s Why Bitcoin Could Rally to $10,000 Before Seeing a Brutal Decline

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COVID-19, Inflation, and the Bull Case for Crypto

Ursprünglich erschienen auf: https://www.reddit.com/r/CryptoCurrency/comments/gaxm7j/covid19_inflation_and_the_bull_case_for_crypto/

We're in an economic shock caused by a healthcare crisis, and central banks are responding by printing FIAT money. In the long run, this could result in rampant inflation just like we saw in the '70s, and Bitcoin will shine as a hedge against inflation. We may see central banks in developing countries fail, sending their currencies in into an inflationary spiral and setting the stage for further crypto adoption.

I wrote an article about this, and would love your thoughts and feedback. I really hope you guys enjoy it, and thanks for taking a look!

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Chilling Fractal: Ethereum’s 150% Rally From March Lows Is About to Reverse

Ursprünglich erschienen auf: https://thebitcoinnews.com/chilling-fractal-ethereums-150-rally-from-march-lows-is-about-to-reverse/

No multi-billion-dollar asset has performed quite as well as Ethereum over the past seven weeks.
Since the $88 lows that were sustained after March’s “Black Thursday” crash, the cryptocurrency has rallied by 150%, reaching as high as $228 earlier today at the local peak of the ongoing rally.
Many investors have been inclined to say that this is just the start of a greater move, citing the technical strength of the uptrend in Ether. But a fractal analysis by a leading crypto trader and a confluence of other factors predicts that Ethereum’s luck will soon run out.
Fractal: Ethereum Subject to Sharp Decline Later This Year
As irrational as the cryptocurrency market may sometimes seem, the market, like others, can be analyzed through a variety of different means. Per a leading crypto trader, one such means is fractals, the repeating of historical price action over other time frames and with other assets.
To prove this, he shared the chart below on April 29th, indicating that Ethereum’s chart from December to now looks remarkably like XRP’s price action in late-2018. The chart suggests that should the fractal play out in full, ETH will crash to fresh yearly lows by the end of the year.
Chart from @im_calmly (Twitter)
Fractal analysis normally receives a lot of flak from skeptics. They claim that it is irrational to expect assets to show repeating patterns on different occasions due to small sample sizes, the existence of coincidences, and the sentiment that charts can be manipulated to fit fractals.
The crypto trader, however, made it clear that he believes fractals are a valid form of analysis for Ethereum, explaining to a skeptic bashing the above chart:
“Markets are a reflection of human psychology and coming up with ‘reasons’ for price action is just retconning.”
This bearish outlook for Ethereum comes as analysts have suggested that Ethereum’s continued decision to embrace stablecoin projects, like Tether’s USDT and USD Coin, could present a long-term threat to the value of ETH. 
Bitcoin Is the Bellwether
A continued rally in the Bitcoin price could put a stop to the correction of Ethereum, while a crash in BTC would enable the bearish scenario laid out above. The leading cryptocurrency, after all, is the bellwether for the rest of this nascent asset class; without Bitcoin, crypto would fail.
Fortunately for holders of Ethereum, analysts are largely optimistic about the prospects of BTC moving forward from both technical and fundamental perspectives.
Fundamentally, a report authored by startup Ryze explained that with the fiat regime being pushed to its extremes with money-printing and negative interest rates, there’s a potential for inflation to increase and potential for trust in alternative monies to grow.
This backdrop sets the stage for “Bitcoin’s greatest test yet.” 
Technically, a trader observed that on April 29th, BTC’s short-term chart registered nearly the exact same signal that was seen in April of 2019, specifically on the day that marked the start of a rally from $4,000 to $14,000 over the span of three months.
Photo by Mike Kotsch on Unsplash

Post source: Chilling Fractal: Ethereum’s 150% Rally From March Lows Is About to Reverse

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