bitcoin market
Forget The Coronavirus—Is This the important Reason Bitcoin Suddenly Collapsed?
Bitcoin crashed in the week, collapsing by almost 15% over the last seven-days and dragging down the broader cryptocurrency market. The bitcoin price, which has had a fantastic start to the year, had been hovering around $10,000 per bitcoin before moving sharply lower—diving even as global markets went into free fall thanks to the spreading coronavirus. However, many thought bitcoin had begun acting as a so-called shelter asset, rising as equity and riskier assets fell, and a ruling by the U.S. Securities and Exchange Commission (SEC) against a long-hoped-for bitcoin exchange-traded fund (ETF) might somewhat explain the sudden sell-off. The bitcoin price had been bouncing around the $10,000 mark for a previous couple of weeks before moving ... [+] sharply lower--leaving many bitcoin and crypto analysts scratching their heads over the explanation for the sell-off. SOPA Images/LightRocket via Getty Images On Wednesday, the SEC rejected an ETF application from New York-based asset management firm Wilshire Phoenix and options exchange NYSE Arca that wanted to combine bitcoin and short-term Treasuries. "The Commission concludes that NYSE Arca has not established that the relevant bitcoin market possesses a resistance to manipulation that's unique beyond that of traditional security or commodity markets such it's inherently immune to manipulation," the SEC said during a statement. Bitcoin dropped some 6% on Wednesday, taking the bitcoin price below the psychological $9,000 per bitcoin mark and exacerbating a slump within the price. Bitcoin has now found a short-lived floor of around $8,500 after its slide lower this past week. The SEC has rejected many applications for a bitcoin ETF over recent years, meaning this latest ruling didn't come as a surprise. "I didn’t see any viable reason why this can be accepted when others were denied," Bloomberg analyst James Seyffart said. However, comments accompanying the ruling have suggested the SEC won't greenlight a bitcoin ETF for the foreseeable future. SEC commissioner Hester Peirce, referred to as "crypto mom" within the bitcoin community thanks to her support of cryptocurrency products, said the rejection leads her "to conclude that this Commission is unwilling to approve the listing of any product that might provide access to the marketplace for bitcoin which no filing will meet the ever-shifting standards that this Commission insists on applying to bitcoin-related products—and only to bitcoin-related products." Wilshire had said it might work to counteract bitcoin's volatility by investing fettered if the bitcoin price fluctuated too heavily—and reversing that position because the price stabilized. The bitcoin price has struggled in the week after climbing over a previous couple of months, though many are ... [+] still feeling positive for bitcoin's short term prospects. Coinbase "We made every effort to urge the SEC’s attention on this important issue, including undertaking extensive analysis that was made available to the SEC staff, submitting key data, and offering to supply additional information to facilitate the listing of a way needed regulated bitcoin-related ETP within the us ," Wilshire Phoenix said following the ruling, adding it's "very disappointing." Earlier this year, bitcoin seemed to be boosted by geopolitical fears surrounding the escalating tensions between the U.S. And Iran then apparently gaining on fears the coronavirus could knock global trade—leading some to suggest the cryptocurrency had begun performing as a secure haven asset almost like gold or the Japanese yen. Following bitcoin's crash in the week , cryptocurrency market watchers appear to possess returned to assessing bitcoin supported its own metrics. "Bitcoin’s value isn’t derived from an equivalent indicator as fiat, like interest rates and GDP," said the chief executive of crypto social trading platform HedgeTrade, Dave Waslen. "Bitcoin is only driven by demand which is why it often remains steady when other markets are teetering." Looking ahead into 2020, bitcoin traders and investors have tons to feel bullish about. The bitcoin mining sector is gearing up for the looming May bitcoin halving event, which can see the number of bitcoins rewarded to miners cut by half—something many hopes is going to be a positive for the bitcoin price. Elsewhere, bitcoin is predicted to be upgraded during a so-called soft fork later this year, a development that's been called "one of the foremost innovative additions" that bitcoin's had. The soft fork, which may be a change to a cryptocurrency's protocol that does not require all nodes to be updated and is backward-compatible, is predicted to enhance bitcoin's privacy and scalability. Alongside technical developments, a consumer app for bitcoin and cryptocurrency purchases from bitcoin futures market Bakkt will launch within the half of 2020. U.S. Coffee chain Starbucks is going to be its first launch partner, with the corporate one among the first backers of the crypto project, alongside software giant Microsoft and Boston Consulting Group.
?Bitcoin Price Falls $1,400 In One Week — is that the market Back?
This week the equity markets experienced their worst week in 12 years and as this meltdown happened the crypto market also took successfully. Bitcoin (BTC) and therefore the cryptocurrency market saw a big selloff in the week and this outcome is comparatively reasonable as long as people sell their assets out of fear of potential economic instability. Other safe-haven assets like gold and silver also saw a huge selloff on Friday. Are the crypto markets getting to find support within the coming weeks, or will we see a continued downtrend in momentum? Crypto market daily performance. Source: Coin360 Selloff ensues after Bitcoin lost key support at $9,400 the worth of Bitcoin found resistance at the $10,400 level, after which a test of the $9,400 support was heavily needed. The $9,400 level was unable to supply sustainable support and because the price fell through it this caused a big selloff throughout the crypto market. BTC USDT daily chart. Source: TradingView The sell-off led to subsequent support area at $8,200-8,400 and lots of horizontal levels are lining over here , providing potential temporary support and space for a relief rally. However, for the short term, many believe that the upwards momentum is out of the markets because the price of Bitcoin is making a lower low (a key indicator for downwards momentum) on the daily timeframe. Does this mean that the whole crypto market will reverse course and enter a bearish trend? Not in the least . the worth of Bitcoin remains 27% higher as on the first of January, which makes Bitcoin one among the best-performing assets of the year. Weekly chart brings focus to the 21-Week MA BTC USD 1-week chart. Source: TradingView The weekly chart is currently resting on an exciting MA (Moving Average), namely the 21-week MA. The previous bull cycle held this level as support towards the bull peak in December 2017, which makes this a stimulating indicator for bulls to carry on to. If the worth could find support at this level, it could mean a continuation of bullish momentum within the coming period. BTC USD 1-week chart. Source: TradingView The weekly chart also clearly shows the huge selloff of the past week. However, it’s currently resting on potential support. Holding the green zone around $8,400 would line up with the 21-WMA and possibly grant a relief rally. For sustained upwards momentum, a breakthrough of the past high at $10,400 must take place but such a move could take a while . The market must find support before these levels are often targeted. If Bitcoin price can’t find support at $8,400, the subsequent level to focus on is at $7,500-$7,700. Total market capitalization searches for support Total market capitalization cryptocurrency chart. Source: TradingView the entire market capitalization for cryptocurrencies was unable to interrupt above $300 billion and also couldn’t find support at $250 billion so further downwards momentum was expected. Currently, an exciting level is approaching because the 21-WMA is additional exposure to this chart. Through the entire bull cycle of 2016-2017, the 21-WMA granted support on the entire market capitalization as an entire . Providing support during this area would give bulls arguments for upwards momentum. apart from the 21-WMA, an important horizontal level is often seen here. During 2018 and 2019, the market capitalization found support at the $225 billion level several times. Showing support here would grant potential upward continuation, because the total market capitalization had been making higher lows since rock bottom in December 2018. Are altcoins on the brink of bottoming out? Total altcoin cryptocurrency market capitalization chart. Source: TradingView The altcoin market capitalization shows an identical outlook because of the remainder of the market. There was a huge rejection at the horizontal level at $115 billion, through which the altcoins are checking out support also. the subsequent significant level is found around $73-$75 billion, which is analogous to the $225 billion of total market capitalization. Since rock bottom in December 2018, altcoins are consistently made higher lows, warranting a replacement upwards trend to occur. Finding support around the $73 billion levels would warrant another higher low and potential continuation upwards. The bullish scenario for Bitcoin If the scenario turned bullish, a relief rally towards $9,200-9,400 would be the primary step. to try to do this, Bitcoin price must find support at $8,250-$8,400 to sustain some upwards momentum to retest previous support levels for resistance. BTC USD 12-hour bullish scenario chart. Source: TradingView subsequent important question investors will ask will be: Can Bitcoin price break through the resistance and continue its upward momentum? If the solution is not any , a possible retest of the $8,200-$8,400 area is next to occur. However, breaking the resistance around $9,200-$9,400 and making it support would open the door for a move to subsequent levels near the $10,400 highs of a fortnight ago. and eventually , finding support around this area would confirm the 21-WMA to be supported again, which may be a massive indicator for bull/bear momentum. The bearish scenario for Bitcoin BTC USD 4-hour chart. Source: TradingView There’s no clear guideline for a bearish scenario at now , but the chart is showing several perspectives. What traders should search for are potential bearish retests. If the worth of Bitcoin rallies upwards with none volume and rejects at $8,950 or maybe $9,175, a bearish retest is confirmed, and therefore the price should trend further down. If such a bearish retest occurs, the worth will likely retest the support around $8,200-$8,400 another time. However, the more support gets tested, the weaker it becomes. Heavy retests of this support would typically induce further continuation downwards to $7,500-$7,700 because of the next primary support after this zone. The views and opinions expressed here are solely those of the author and don't necessarily reflect the views of the Cointelegraph. Every investment and trading move involves risk. you ought to conduct your own research when making a choice.