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Bitcoin has plunged more than 30% since hitting a year-to-date high. That fact is clear, but explaining why the world’s largest digital currency has lost momentum in the second half of the year is anything but. Some, like JPMorgan Chase & Co. have pointed to Intercontinental Exchange Inc.’s new futures contracts and an unwinding of long positions as likely culprits for the nosedive. Others have pointed to a buildup of technical bearish signals as setting off its summer swoon.
One of the most popular Bitcoin margin trading exchanges, BitMEX, saw a 24-hour net inflow of around $16 million. This took place right before Bitcoin’s price fell more than $450 in less than an hour. According to a well-known cryptocurrency monitoring resource, TokenAnalyst, one of the most popular Bitcoin margin trading exchanges, BitMEX, saw a 24-hour net inflow of $16 million right before Bitcoin’s price went south.
The past 24 hours have been fairly turbulent for Bitcoin’s price. | BTC/USDT. Source: TradingView
Bitcoin is facing further losses after the bulls failed to capitalize on price gains seen this week. The cryptocurrency’s quick pullback from a 2.5-week high of $8,830 to below $8,400 this morning has invalidated a bullish breakout on the 4-hour chart seen Wednesday, as seen below. The failure to hold above the 200-day moving average (MA) at $8,654 has also weakened the bullish outlook on the daily chart and may have shifted risk in favor of a drop to $8,000 in the next 24 hours.
- Bitcoin whales likely seeking liquidity as the price dives towards $8,000.
- Bitcoin must keep above the Moving Averages and $8,000 to encourage fresh demand and a refocus on $9,000.
Bitcoin capped by the red curve (200-day MA) | Image credits: TradingView.com
The benchmark cryptocurrency was trading at $8,373.96, down 2.49 percent as of 11:03 UTC. Its downside sentiment came on the back of an unbiased Thursday, wherein its opening and closing price was almost the same. The rate also remained capped under technical barriers, represented by a long-term moving average indicator in the chart below. Meanwhile, sentiments arising from the rejection of yet another Bitcoin exchange-traded fund in the US kept potential buyers at a distance.
The Intercontinental Exchange (ICE) in conjunction with their Bitcoin futures platform Bakkt is reportedly seeking to jump ahead of the CME group to release a Bitcoin options contract. This suggests that it wants to beat its CME rival that is considering a Q1 2020 launch for its Bitcoin option contract.
“We’ve been very clear on Bitcoin: Bitcoin is a commodity. We haven’t said anything about ether – until now. It is in my view as chairman of the CFTC that ether is a commodity.”
access bottle pay block matrix social media
Forget about Facebook’s “cryptocurrency” Libra. UK-based Block Matrix is developing Bottle Pay – a new application that allows users to send and receive BTC using social networks. The user experience is designed to be as seamless as possible. Users can send bitcoin to any of their connections regardless of whether they have a Bottle Pay account or not. The company has already caught the eye of several keen private UK investors.
A new report by Binance Research titled ‘2019 Q3 Crypto-Correlations Review’ shows that Bitcoin’s “price dropped by nearly 30%.”
“The third quarter of 2019 exhibited adverse price movements, breaking the two consecutive quarterly price gains in Q1 and Q2. In Q3, Bitcoin price dropped by nearly 30%, closing on September 30th at around $8000. In comparison, BTC trading dominance fluctuated around 15-25% for the first half of 2019.”
This transaction notified @whaletrades which sent out the following tweet: While assessing and identifying market trends is no straightforward task, following the money in the way of large transactions can be a very useful indicator. A transaction of this magnitude by a major player followed by a sell may very well be a precursor to a significant dump in the price of Bitcoin. Therefore, keeping track of such transactions by accounts such as @whaletrades can be very helpful in determining the direction of future price movement and predicting rapid increases or decreases.
The Cryptocurrency wave that hit the market is still making headlines, especially when it comes to discussing its possibilities of replacing authorized currency. Among varied digital currency forms, Bitcoins and Ethereum are popular ones and rank high in circulation. Today, Bitcoins are used by people to make online purchases of a host of goods and services. Not just e-commerce sites, even top online casinos allow Bitcoin transactions besides other payments and withdrawal modes. It’s not difficult to find premium sites on par with top UK sites like Black Spins Casino where players can deposit in Bitcoins to instantly access a galore of games.
“We believe that tribalism in the crypto community is slowing down adoption of the technology. .Crypto is a domain name system meant to be used for any cryptocurrency payment and with any cryptocurrency wallet.”
Intercontinental Exchange’s cryptocurrency venture Bakkt is planning to launch options tied to bitcoin, aiming to forestall CME Group, which previously announced its plans to introduce bitcoin options in Q1 of 2020.
As COIN360 previously reported, Bakkt has launched its much-anticipated product – a ”physically settled monthly futures contract for bitcoin held in the Bakkt Warehouse” in September.
“We’re incredibly excited about joining forces with Ripple to bring XRP to our user base. Ripple understands the need for a strong wallet partner as they push into key markets like cross border banking and remittance, so we are thrilled to help them achieve their goals. In addition, it is our plan to have BRD be the cheapest and easiest place to buy XRP moving forward.”
Bitcoin’s status as an uncorrelated asset is about to be revoked, as a scarily close relationship to the price of avocados implies that the digital currency may be about to fall off a cliff. Bitcoin’s performance of late has left a little to be desired, and strangely so has the price of avocados. This relationship was pointed out in a profoundly insightful tweet by Bloomberg’s financial Journalist, Tracy Alloway. A graph depicting the price of Hass avocados and bitcoin shows an eerily similar pattern.