What really happened? All coins including those who are in Q4 are watching their values rising up, almost by 50%, but why?
Oliver von Landsberg-Sadie, founder and CEO of digital assets firm BCB Group, said that an order of $100 million, roughly 20,000 BTC, divided between Coinbase, Kraken, and BitStamp is what activated the frenzy of trading. There has been a single order that has been algorithmically-managed across these three venues, of around 20,000 BTC. If you look at the volumes on each of those three exchanges – there were in-concert, synchronized, units of volume of around 7,000 BTC in an hour.
Historically big order trades tend to spur other traders into making investments, especially those who conduct trades with the aid of algorithms. Furthermore, the price of altcoins is strongly correlated to that of Bitcoins, which surge when the latter does.
Of course this may not be the only cause for the price spike, as it is very hard to pinpoint the exact developments that lead to the market’s change in price.
The rally to a 4.5-month high was accompanied by a surge in 24-hour trading volumes to above $15 billion – the highest since mid-January 2018, according to CoinMarketCap. The bullish reversal, therefore, looks sustainable.
Further, the spike witnessed today has reinforced the positive trend change signaled by both the weekly moving average convergence divergence (MACD) and the money flow index a few weeks ago.
While the path of least resistance is now to the higher side, the bulls now face taking out the former support-turned-resistance of the 21-month exponential moving average (EMA), currently lined up at $5,200.
The persistent defense of that average support in the five months to October 2018 had triggered hopes of a strong bullish move. More importantly, a convincing break below that technical line on Nov. 14 invited strong selling pressure.
So the bulls need to force a convincing break above the 21-month EMA before claiming a complete victory over the bears.
As of writing, bitcoin is changing hands at $4,800 on Bitstamp, representing a 15 percent gain on a 24-hour basis.
Other major cryptocurrencies like ethereum’s ETH token, XRP and EOS are up at least 5 percent each. Meanwhile, names like litecoin, cardano and monero are flashing double-digit gains.
Weekly chart
As seen above, BTC’s move above $4,236 has activated twin bullish cues: A bullish higher high and a triangle breakout, both confirming a bearish-to-bullish trend change.
The 5- and 10-week moving averages (MAs) are also trending north, indicating a bullish setup, while the relative strength index (RSI) is probing the former support-turned-resistance of 53.70. A break higher would further strengthen the bullish case.
The crypto bulls are out in full force, and price predictions are back. Crypto trader Brian Kelly has consistently stuck up for bitcoin, even during the market downturn. Now BTC is returning the favor with today’s double-digit percentage rally. Kelly has taken his cue, telling CNBCthat the $6,000 to $6,500 range is the new resistance and that’s exactly where the bitcoin price is headed:
“Probably a reasonable target is close to $6,000 for this move.”
Based on fundamentals, bitcoin could rise as high as the $6,500 to $6,800 range before there’s even a hint of it being overvalued in the current cycle. Kelly believes that at the very least, the market has begun to put in a bottom based on historical patterns. He points to a shift in sentiment, one that includes institutions and one that is being fueled by a trifecta across fundamentals, technical signals, and quantitative analysis that his firm BKCM performs.
Bitcoin is blossoming this spring! @BKBrianKelly weighs in on what’s behind today’s 15% move
88 people are talking about this
BITCOIN ETF RUMORS PERCOLATE
It’s important to note that much of the gains in the bitcoin price appear to be being fueled by the technical signals, both short- and long-term. And while there is scuttlebutt that U.S. regulators could approve two bitcoin ETFs in the coming weeks, Kelly isn’t ready to place that wager.
He doesn’t expect a bitcoin ETF to see the light of day “until well into 2020,” he said, pointing to regulators that aren’t quite comfortable with the idea of the product yet. Regardless, investors aren’t going to let that spoil the party.
“I don’t think you need it. You’re starting to see a fair amount of institutional interest in this. And by institutional I mean even high net worth individuals, family offices are starting to take a serious interest…There’s quite a bit going on under the surface that just kind of mechanically could have the same impact as an ETF.”
FUNDSTRAT’S TOM LEE IS AT IT AGAIN
Not to be outdone, Fundstrat co-founder Thomas Lee provided his own analysis. Even after giving up on bitcoin price predictions in the crypto winter, Lee can’t ignore the bullish signs, chief among which is BTC trading above its 200-day moving average.
He says:
“Definitely a positive development that bitcoin is now above its 200-day moving average,” adding that many consider it to be a sign that BTC is in a “positive trend.”
1/ CRYPTO
Definitely a positive development that #Bitcoin is now above its 200D mov. avg.
--Many consider P>200D as sign of $BTC in positive trend
--BTC acts significantly better P>200D, a win-ratio of 80% vs 36% when P<200D
source: data scientists @fundstrat_ken @AlexKernA
75 people are talking about this
Lee reminds his followers of this oldie but goodie – that the bitcoin price is most influenced by the ten best days of trading each year. Without those ten best days, the bitcoin price has actually shed one-quarter of its value annually over the last six-year stretch.
The bitcoin price tends to make most of its yearly moves during a handful of frantic days of trading. | Source: Tom Lee/Fundstrat
The bitcoin price is currently hovering at nearly $4,800, up 15% for the day, and is continuing the trend of robust volume at $19.2 billion.
investing in oil and gas has and is still making a lot of people " very RICH". Investors in oil and gas are getting rich daily. All you need is a secured and certified strategy that will keep your invested capital safe by opting out with no withdrawer crunch. A considerable number of investors worldwide have seen gains of 75,063%, personally I have made over 600%. For example I started investing with $1,000 and I made $3,000, $3,500- $5,000 weekly. Last year at the start of the year, I increased my invested capital to $10,000 and I made approximately $105,000 before the end of year. I've never seen profit opportunities like this before in any market even when other traders complain of losses. Now for the doubters, not only is it possible, it's actually happening right now. All you need is a good and secured strategy, a good investment platform, Appetite and market conditions. Incase you are interested in venturing into investing or perhaps you are trading and has been losing, feel free to contact total companyat E-mail: total.company@aol.com I will
ReplyDeletebe sure to guide and assist you.