Bitcoin
Bitcoin Will Not Go Down Below $28,000, Asserts On-Chain Analyst
A strong downside correction in the Bitcoin market seen earlier this week is threatening to become a full-fledged bear trend as BTC/USD struggles to move past certain technical resistances.
Many traders agree that the pair could continue its move lower, forming a potential Head and Shoulder pattern, a bearish reversal structure. As Bitcoinist covered here, the pattern’s technical downside target is below $20,000, a move that would take Bitcoin down by more than 50 percent from its record high near $42,000 established on January 8.
Bitcoin struggles to move past $35,000. Source: BTCUSD on TradingView.com
Other potential bearish indicators come from the macroeconomic landscape. The brighter US growth prospects challenged assumptions about a longer US dollar bear market. After finishing 2020 down by 6.76 percent, the greenback recovered by 1.2 percent in the first week of 2021, forcing analysts to rethink their long-term bearish bias.
That stopped the Bitcoin bull run midway also as traders decided to secure their profits at local tops. Now, a deeper price correction is witnessing limited over-the-counter deals, minimal stablecoin inflow into exchanges, and an increase in miners-led sell-off—all pointing to a bearish continuation in the Bitcoin market.
Bitcoin Outflow from Coinbase Pro wallets declines, pointing to fewer OTC deals. Source: CryptoQuant
However, one analyst believes that is not the case.
Ki-Young Ju, the chief executive officer at CryptoQuant — a blockchain analytics firm in South Korea, asserted that the BTC/USD exchange rate would not fall below $28,000.
“There are many institutional investors who bought BTC at the 30-32k level,” Mr. Ju said. “The Coinbase outflow on Jan 2nd was a three-year high. Speculative guess, but if these guys are behind this bull-run, they’ll protect the 30k level. Even if we have a dip, it won’t go down below 28k.”
Technicals Back Bitcoin Bulls
More seasoned analysts support a potential Bitcoin price pullback as the cryptocurrency traded 16 percent higher from its local low near $30,000.
One independent chartist said the BTC/USD exchange rate would not slip below $32,000 based on technical support that lingers around the level. The pseudonymous entity presented the pair inside a Symmetric Triangle pattern, confirmed by at least two reactive tops on a downward sloping trendline and two reactive lows on an upward sloping trendline.
Bitcoin trade setup, as presented by Rekt Capital. Source: BTCUSD on TradingView.com
“Bitcoin isn’t going any lower than $32,000 as long as the uptrend line continues to hold,” the analyst stated, putting the cryptocurrency’s potential upside target near the downtrend line—that is above its previous record high near $42,000.
Bitcoin (BTC) hit fresh local lows on Feb. 26 despite what appear to be ongoing largescal institutional buy-ins.
New lows despite bullish signs
Data from Cointelegraph Markets and TradingView showed BTC/USD $44,150 during Friday trading — last seen two weeks ago — after a rebound to $50,000 fizzled overnight.
Bitcoin had seen good news in the form of asset manager Stone Ridge planning to become the first Bitcoin mutual fund, along with major corporate purchases from MicroStrategy and Square. These, however, failed to stem the bearish mood, with 24-hour losses standing at near 10% at the time of writing.
“Everyone wants 42k, so we probably just go up now or drop to 38k on a savage wick. Crowd rarely gets what it wants,” popular trader Scott Melker summarized on Twitter.
Cointelegraph Markets analyst Michaël van de Poppe had prevously forecast ultimate support lying at around $38,000 should Bitcoin not find buying volume at higher levels.
“Bitcoin doesn’t look too great for a bull continuation coming period,” he said on Thursday.
“Still, retest at $54,000-55,000 could happen, but I’m cautious when we get there. If we lose $47,000, then I’m looking at $42,000-44,000 and $37,000-38,500 next. That should be the low.”
Institutions are still buying: data
Data from the professional trading arm of U.S. exchange Coinbase meanwhile showed another major tranch of BTC leaving its books for a private or custody wallet — something which traditionally suggests institutional buying.
The latest spike of 12,100 BTC is the second this week, such large volumes themselves being a rarity, a fresh chart from on-chain monitoring resource CryptoQuant confirms.
The so-called “Coinbase premium,” the difference in price between Coinbase and Binance, flipped to negative for several brief moments as Bitcoin dropped to nearly $44,200.
As Cointelegraph reported citing CryptoQuant, whales appear to favor buying at current price levels, with the result that a dip much below $44,000 would be “unlikely,” according to CEO Ki Young Ju.
On Thursday, Ki described the last Coinbase Pro spike, which occurred at $48,000, as “the strongest bullish signal” he had yet seen in Bitcoin.
A relief bounce in the Bitcoin market Thursday did little in offsetting its prevailing correction bias as its price slipped inside a critical support area.
The BTC/USD exchange rate touched an intraday low of $45,000 during the early Asian trading session Friday, down by up to 22.90 percent from its record high established earlier this week. Traders held on to $45,000 and the levels around it as support, given the range’s historically-verified capability of capping downside corrections.
Bitcoin Support Confluence
Nonetheless, the latest downside move appeared much stronger, raising possibilities that bitcoin would extend its decline further lower.
“[I’m] keeping an eye on the $44ks — tested once, but a break below there likely sends price back down to $40k,” alarmed Josh Rager, the co-founder of BlockRoots.com. “And if price makes way to $40k — you know it’s going to wick in the mid to upper $30ks. [It] could bounce here — but going to take it level by level/day by day.”
Bitcoin is down over 22 percent from its record high. Source: BTCUSD on TradingView.com
Mr. Rager’s downside target at $40,000 converged well with the blue wave in the chart above.
It represents the 50-period simple moving average (50-SMA) on Bitcoin’s daily chart. The wave has underpinned the cryptocurrency’s uptrend throughout 2020. Many instances showed the price breaking below the 50-SMA but only to reclaim the wave later to confirm the market’s bullish bias.
Analyst Willy Woo’s floor model—which has zero evidence of turning false—also alerts about hard price support near $39,000. Mr. Rager agreed that Bitcoin could fall to $40,000 in the coming sessions while forming a wick towards $38,000-39,000. The cryptocurrency may resume its uptrend at a later stage.
Psychological Price Floors
Bitcoin rallied by almost 100 percent in 2021 to hit an all-time high above $58,000. Its gains appeared on growing institutional adoption, led by Tesla’s $1.5 billion investment into the cryptocurrency and its intentions to use the decentralized token as a form of payment for its services and products.
This week, mobile payment app Square announced that it had also upped its Bitcoin reserves by investing another $170 million into the cryptocurrency. The Jack Dorsey-headed firm had added $50 million worth of bitcoins to its balance sheet late last year.
Nasdaq-listed business intelligence firm MicroStrategy also took a similar but heightened call to increase its bitcoin exposure. It put $1.06 billion to purchase another stash of the digital assets, pushing its total reserves from around 71,000 BTC to above $90,500 BTC.
Square has 5% of their balance sheet in bitcoin.
Tesla has 8% of their balance sheet in bitcoin.
Microstrategy has 95%+ of their balance sheet in bitcoin.
Who is next?
— Pomp 🌪 (@APompliano) February 24, 2021
All the firms revealed the average rates at which they purchased Bitcoin. For Tesla, it was between $35,000-$40,000. MicroStrategy’s latest investment into the Bitcoin market arrived when it was trading above $52,000. Meanwhile, Square stated that it purchased the cryptocurrency at a mean price of a little over $51,000.
That also increased Bitcoin’s ability to reclaim levels above $50,000 in the coming sessions, given the corporates’ high-profile exposure in the cryptocurrency above the said levels.
TWTR Stock Spikes 3.9% as Twitter Reveals Plans to Double Revenue by 2023
Bitcoin needs clear regulations to be less volatile, Bridgewater analyst says
$97B retail firm uses IBM blockchain to track food supply
-
Market7 months agoAMD Stock Up 0.43%, AMD Could Be Next $100B Chip Company
-
Cryptocurrency11 months ago
Telegram ICO Investors Included Russian Oligarch and Ex-Minister
-
Bitcoin11 months ago
Bitcoin Cash Jumps 7.7% as Halving Arrives, BTC Rally Next?
-
Blockchain7 months ago
Number of Bitcoin Cash Whales Drop Following 39% Price Surge
-
Cryptocurrency7 months ago
Telegram Token Sales Canceled By Liquid Exchange
-
Cryptocurrency3 months ago
Steve Wozniak’s New Crypto WOZX Price Skyrockets Ahead of Second Listing
-
Bitcoin4 months ago
‘Extreme greed’ and FOMO taking hold as BTC nudges $16K
-
Regulation3 months ago
Binance traders find ‘intelligent’ ways to circumvent US block
Bitcoin 
Ethereum 
Tether 
Binance Coin 
Cardano 
Polkadot 
XRP 
Litecoin 
Chainlink 
Bitcoin Cash