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BTC USD daily chart. Source: TradingView | The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Bitcoin (BTC) finally dropped all the way down to the $7.4Ks in minutes as anticipated in our previous analysis if the key $7.8K level did not hold. As Cointelegraph reported, rumors of Chinese authorities raiding Binance’s Shanghai offices were likely also responsible for the drop. However, the exchange said that they had not received a notice from Chinese authorities, which required Binance to detail its activities. Specifically, a Binance spokesperson denied the rumors, saying:
Recent reports currently suggest that one of the world’s largest cryptocurrency exchanges, Binance, has had its Shanghai office shutdown causing its many staff members to either work remotely or even completely abandon China and move to Singapore. According to sources familiar with the matter as cited by The Block, there is currently no fully functioning Binance Shanghai anymore.
In a great twist, Bitcoin has turned bearish in a week some analysts expected to be bullish. For the holders, this twist has seen billions in investment lost. Short term holders will feel the sting even more with some jumping ship in fear of further losses that could see Bitcoin reach $7,400. For long term holders, they remain unshaken and expect that the bulls will get it together and push prices up. Some of the heavyweight players in the industry are backing long term holders and despite the recent drop are still throwing around huge predictions.
After a brief period of consolidation, Bitcoin has once again made another downwards movement that has led it below its previous support level at $8,000. This latest bout of downwards momentum has opened the gates for significantly further losses, assuming bulls don’t step up and propel BTC higher. One prominent analyst is now noting that a failure for BTC to maintain above its last-ditch support level at $7,700 would likely lead to a sharp and swift drop into the $6,000 region.
The largest cryptocurrency, Bitcoin, dipped below the $8000 mark earlier today as the bear further pushed the coin to its 4-week low. According to Coin360, at press time, the king coin was trading at an aggregated price of $7,881 with a market cap of $142 billion. The highest trade volume for the cryptocurrency was recorded on BitMEX, with Binance following behind.
BTC/USD, 4-Hour Chart Analysis
The cryptocurrency segment is having its worst day since late-September, as after weeks of persistent selling, volatility exploded higher today in early trading. Despite the global weakness in risk assets, even the safe-haven BTC remained under pressure yesterday, and the broad weakness warned of a likely retest of the October low, which is already happening in the case of several majors. All of the top coins are in dangerous short-term technical setups, and downside risks remain very high even in the wake of today’s losses.
Jerome Powell, chairman of the Federal Reserve, responded to an inquiry by two congressmen who urged the Fed to consider the prospect of a central bank digital currency (CBDC). As per Ledger Insight, chairman Powell’s response confirmed the Fed has assessed the possibility and continue to research the implications from a cost-benefit perspective, November 21, 2019.
However, bitcoin still has a chance to remain unpredictable, as many traders remarked on the macro head-and-shoulders pattern as ‘reading too much into the chart’. BTC remains clearly bearish, though more signs of capitulation from miners and traders are expected. The recent slide is a sell-off parking some of the gains into Tether (USDT), while waiting out for a reversal. The sell-off is currently hinging on 77% of volumes in the BTC/USDT pair.
Today a bipartisan team of U.S. senators introduced a bill called the “Managed Stablecoins are Securities Act of 2019”, which would make Facebook’s cryptocurrency Libra a security under U.S. law. On Thursday, members of the House Financial Services Committee Sylvia Garcia, D-Tex., and Lance Gooden, R-Tex., proposed a bill at a hearing on the role of big data in financial services. According to Garcia, Libra and other managed stablecoins are securities under existing law, and “bringing clarity to the regulatory structure of these digital assets” helps protect users and guarantees proper government oversight.
The Dow Jones steadied Thursday afternoon as the US Senate approved a bill to avoid a government shutdown. | Source: Yahoo Finance
- China headlines mixed with positive news in the US Senate to lift the Dow Jones off its lows on Thursday afternoon.
- Impeachment odds remained steady as witnesses added no new bombshells for the Dow to endure.
- Economist Nouriel Roubini believes the stock market outlook is worsening because investors appear increasingly out of touch with economic realities.
The Dow Jones roared back from its session lows on Thursday afternoon, as contradictory trade war headlines left the stock market volatile.
- Since our last analysis, XRP fell below the support at $0.2584, $0.250 to reach the current trading level of $0.244.
- From above: The nearest level of resistance lies at $0.2518. Above this, resistance is at $0.2584, $0.27, $0.2811, $0.2850 (100-days EMA), and $0.2890. If the bulls continue higher, resistance can be expected at $0.30, $0.308 (200-days EMA), $0.3177, and $0.3262 (bearish .382 Fib Retracement).
- From below: The nearest level of support lies at $0.24. Beneath this, support can be found at $0.2345, $0.23, $0.22, $0.2123, and $0.20.
With Bitcoin (BTC) again in the doldrums, Ethereum (ETH) is again following the market leader down for another tumble – this time into the key breakout zone from earlier in 2019. We start with a long chart to get the lay of the land, on the ETH/USD weekly. We can see ETH is starting to test the previous resistance zone starting at $165. It took Ethereum a considerable amount of time to break this area – it was first defined in the 2018 bear market – so we can expect it to serve as strong support.
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As per the report provided by CoinMetrics, the expected Bitcoin supply at block 600,000 was 18 million BTC. Nevertheless, taking into account the provably lost coins, Bitcoin’s supply should be adjusted to 17,999,817.32 BTC. This does not seem a large reduction of the supply considering this is just ~0.00086% of the total number of Bitcoin that will ever be mined.