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Bitcoin Short Squeeze Imminent Based on Current Trading Trend

Bitcoin could be in for another significant price surge based on the current trading trends. The top-ranked cryptocurrency has managed to stay relatively stable even while the altcoin markets experience a post-weekend trading decline.

Massive Short Squeeze on the Horizon

One of the more defining aspects of the BTC trading narrative in 2018 has been the activities of shorts. 2018 has seen a significant increase in Bitcoin shorting where traders bet that the BTC price will fall.

Throughout August 2018, Bitcoin shorting rose to almost reaching the April 9 all-time high (ATH) signaling the fact that many traders don’t expect the top-ranked cryptocurrency to stay above $7,200. Even more profound is that in early April, BTC was trading at $7,000.

With so many Bitcoin shorts, the BTC price could surpass $7,300 with $7,500 a likely resistance level. Whether it maintains $7,500 or not would depend on the level of bull fatigue. A few short squeezes have happened in the last few months due to the high volume of short trading positions.

The likely reason for this next short squeeze is due to unprecedented levels of “short absorption” in the market. These absorptions are mostly unleveraged meaning that bulls (most likely whales) are making real BTC purchases at 1:1 U.S. dollar ratio. Thus, even though the shorts are making concerted efforts, the most probable market response in the interim is upward price movement.

Bitcoin Growing Steadily in the Last Seven Days

This imminent short squeeze comes as Bitcoin has been growing steadily over the last seven days. In that time, BTC has increased by eight percent as the top-ranked cryptocurrency sets its sight on maintaining the $7,000 price level.

While Bitcoin has remained relatively consistent, the altcoin market has been tumultuous, increasing in tandem with BTC but also experiencing constant pullbacks. Despite these pullbacks, the total market capitalization has climbed to $236.9 billion.

Do you think a massive Bitcoin price short squeeze is imminent? What is your end of September BTC price forecast? Let us know your thoughts in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Price Approaches $7,000 as Tom Lee Predicts Explosive End of Year Run

After days of holding steady between $6,400 and $6,700, Bitcoin is finally making a run for the $7,000 price level. The top-ranked cryptocurrency headlines a substantial price recovery that has the total market capitalization climb to $225 billion.

Bitcoin Breaks $6,700 Resistance Level

Bitcoin rose by more than $200 on Tuesday (August 28, 2018), reaching $6,916 as of 7 am UTC. The sudden climb occurred at 12 am UTC as BTC rose from $6,766 to above $6,900 in a matter of 35 minutes. At press time, BTC was trading at $6,935 having risen by more than three percent in the last 24 hours.

The top-ranked cryptocurrency is currently at its highest price since August 7, right before the start of a series of declines that eroded most of the gains accrued in July. Apart from BTC, the rest of cryptocurrency appears to be performing well. ETH and XRP have both soared significantly, but MIOTA is the best performing top-ten coin, rising by more than 15 percent over the last 24 hours.

Outside of the top ten, NEO is up by nine percent, VeChain by 13 percent, DASH by 21 percent. More than 80 percent of the top 100 coins have experienced positive gains in the last 24 hours in what seems like a positive start to the week for the bulls.

Bitcoin Could Set New All-Time High (ATH) in 2018

A few days ago, Tom Lee predicted that BTC could end 2018 with a new ATH. Speaking to CNBC, Lee highlighted the correlation between hedge fund investment, emerging markets, and the price of BTC. According to Lee, signs point to an aggressive price climb for the top-ranked cryptocurrency.

Lee explained the connection between all three parameters using two factors – hedge funds and wealth effect. According to the Fundstrat analyst, the switch between “risk on” and “risk off” for hedge funds as well as the fluctuating stock market prices directly impact the price of Bitcoin. Commenting further, Lee said:

Until emerging markets begin to turn, I think in some ways that correlation is going to hold and tell us that sort of the risk on mentality is those buyers aren’t buying bitcoin.

Tom Lee has since the beginning of the year, predicted that Bitcoin would end 2018 at $25,000. Commenting on the fate of the number one cryptocurrency’s price, Lee said he expects BTC to end the year “explosively higher.”

Do you think the current price rally points to a significant market recovery? What is your end of year BTC price forecast? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Selloff Could be Over, Says this Technical Indicator

The massive Bitcoin selloff that has characterized most of the market in 2018 might soon be at an end based on the data from a technical indicator. If correct, the top-ranked cryptocurrency may experience a substantial price rally in the last quarter of the year.

Technical Indicator Shows Imminent Bitcoin Trend Reversal

According to Bloomberg, Bitcoin traders might soon experience an end to the selloff of the cryptocurrency. This is based on a technical signal – the GTI VERA Convergence Divergence Indicator. Data from this indicator points towards a trend reversal for Bitcoin that would excite many BTC bulls who have been disconsolate for most of 2018.

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Historically speaking, the GTI VERA Convergence Divergence Indicator has performed well in the past especially with trend reversals. The last time the indicator pointed towards a trend reversal, Bitcoin recovered from a significant dip to increase by almost 40 percent the following month.

The GTI VERA Convergence Divergence Indicator works by detecting trend reversals, as well as trend exhaustion. The indicator does this by using the moving average convergence divergence (MACD) via its proprietary volatility explosion relatively adjusted (VERA) theory.

Similar Predictions by Other Indicators

Apart from the GTI VERA Convergence Divergence Indicator, other market indicators have also come to the same conclusions. In late June and early July 2018, two separate indicators also pointed to a trend reversal for the top-ranked cryptocurrency based on a predicted end to the massive selloffs.

First was the Williams Percentage R (WLPR) indicator which determines whether an asset (in this case, BTC) is overbought or oversold. At the time, the WLPR revealed an immediate reversal of the BTC price downtrend. The second was the Divergence Analysis (DVAN) Buying and Selling Pressure indicator which also pointed to BTC being oversold.

July turned out to be a decent month for BTC based on price performance as the top-ranked cryptocurrency rose from below $6,000 to eclipse the $8,400 – its highest price level in two months at the time. Since then the Bitcoin price experienced decline as August began, taking its price below $6,000 once more. As at press time, Bitcoin is trading at $6,400 despite the negative news from the SEC on Wednesday, rejecting three ETF filings.

Do you think the Bitcoin selloff is over, based on the data from the GTI VERA Convergence Divergence Indicator? Keep the conversation going in the comment section below.

Image courtesy of Bloomberg and Coinmarketcap.

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Bitcoin Price Gains $400 in 20 Minutes Following BitMex Shutdown

Bitcoin gained some sudden momentum in the early hours of Wednesday (UTC), following the planned maintenance shutdown of BitMex – a BTC trading platform. The top-ranked cryptocurrency almost broke $7,000 before a pullback took the price back down to $6,600.

Bitcoin Climbs as BitMex Shuts Down for Maintenance

Moments after BTC derivatives trading service, BitMex went offline for scheduled maintenance, the price of Bitcoin skyrocketed. Within a 20-minute period, BTC climbed by more than $400, to almost cross the $7,000 price mark. After the rise, BTC was at a new high since July 24.

However, the price gain was short-lived as a pullback brought Bitcoin down to $6,600 as at press time. Despite the pullback, Bitcoin is still up by more than three percent in the last 24 hours. Total market capitalization now stands at $217 million with altcoins also experiencing significant price surges over the previous 24 hours as well.

All top ten coins are currently in the green. Stellar and Litecoin lead the way in 24-hour gains with 4.51 percent and 3.31 percent respectively.

Price Manipulation or Short Squeeze

The fact that the price surge happened during a shutdown of one of the most prominent BTC trading platform does raise questions over price manipulation. In a tweet posted on Tuesday afternoon, Alistair Milne predicted a short squeeze to coincide with the BitMex shutdown.

According to Business Insider, some anonymous sources claim that the scheduled maintenance instigated some frenetic trading activity.

Commenting on the development, Bitwise CEO, Hunter Horsely said:

It is a silly short-term trade. Buy when maintenance starts. Sell when ends.

Reports indicate that the BitMex shutdown created arbitrage opportunities in the market which directly led to the sharp price spike. According to CoinRoutes CEO, Dave Weisberger:

Bitfinex led it up to 6800+, but when GDAX caught up, their clients were paying over $100 too much when the other exchanges all fell back to 6700. There was a real arbitrage for a while when this all happened.

The pertinent question now is whether this price run is also a short squeeze especially with the upcoming SEC decision on the Proshares Bitcoin ETF filing. The SEC is yet to approve any BTC ETF application over concerns regarding liquidity, manipulation, and the lack of robust custodial solutions. The Proshares ETF decision is the first in a series of similar decisions before the SEC within the next few weeks.

Do you think the price movement signifies manipulation? What impact would Thursday’s Proshares ETF have on this current mini-rally? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Bounces Back Above $7,000 as Crypto ATMs reach 3,500

Bitcoin has managed to rise above $7,000 after dropping below that price level on Monday (August 6, 2018). The top-ranked cryptocurrency leads a day of positive price movements for the greater majority of the crypto market. Experts point to the emergence of positive market sentiments as a precursor to an imminent bull run.

Bitcoin Back in the Green

At the time of writing this article, BTC is currently trading above the $7,100 mark cementing its place above $7,000. Traders will be hoping that the top-ranked crypto surpasses and maintain the $7,200 support level. BTC has so far gained more than two percent within the last 24-hour trading period.

Despite the current price growth, its weekly performance is still in the negative, following substantial declines in the first six days of August. BTC has declined more than eight percent since the start of the month. However, the crypto’s 30-day performance stands at 9 percent.

Commenting on the current market situation, Fundstrat analyst and BTC bull, Tom Lee, said that Bitcoin’s increased dominance over the cryptocurrency market is a sign of an imminent price rally. Lee also referred to his company’s legacy Bitcoin Misery Index (BMI), saying that BTC was currently at 37 which is close to the 27 level that signifies optimal price performance. According to Lee, the raft of recent positive developments in the space will soon begin to have an impact on the market.

Altcoins Post Positive Price Movements

Apart from BTC, the rest of the cryptocurrency market has enjoyed a moderately favorable day. Ethereum, Bitcoin Cash, and Stellar have all enjoyed positive price movements. In fact, only three out of the top ten coins has declined over the last 24 hours. MIOTA leads the losers pack, dipping by more than seven percent while XRP has shed almost three percent of its market price.

MIOTA’s performance is indicative of its apparent recent decoupling from the rest of the cryptocurrency market. During the bearish trend of the previous few days, MIOTA showed some significant albeit, short-lived growth.

In another development, the number of BTC ATMs in the world reached a milestone figure of 3,500 on Monday. According to Coinatmradar, there were only 1,000 of such ATMs worldwide as of February 2017. A large percentage of the BTC ATMs are located in the United States and Canada with Europe and Asia the other popular host regions.

Do you think this is the start of another Bitcoin price recovery? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap and Coinatmradar.

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Bitcoin Price is Set for Another Breakout, Says ‘Wall Street’s Crypto King’

For the third day in a row, Bitcoin continues to trade below the $8,000 mark that it has gained in July 2018. A flurry of events beginning with the Winklevoss ETF rejection by the SEC has seen the price of the top-ranked cryptocurrency take a considerable tumble. However, a couple of experts believe that another price breakout is imminent.

Bitcoin Needs Higher Highs and Higher Lows

Speaking to CNBC, Bart Smith, the head of digital assets at Susquehanna said that Bitcoin needs higher highs and higher lows. According to Smith, $6,800 is probably the bottom for BTC, and that value needs to go higher to give the crypto a bigger upward bounce. Speaking on the state of the market, Smith also said:

A lot of traders see the $6,800 level is something it needs to break through. We have lower highs and lower lows, and we need to break out of that. You look forward to a new bitcoin ETF coming out, and there is a lot of enthusiasm. The price goes all the way up to $8,400. The ETF gets rejected, and it goes down again. We need to see higher highs and higher lows, so the continuation to breakthrough and hold at $7,500 and bounce higher.

Smith, popularly referred to as the ‘Crypto King of Wall Street,’ also commented on the next step in the evolution of the Bitcoin market. The Susquehanna chief said that big name brands need to enter the market to provide an incentive for more institutional players to put up equity in BTC futures.

Significant Events in Q4 2018 Might Spark Bitcoin Price Rally

For Brian Kelly of BKCM LLC, Q4 2018 might be an exciting time for the top-ranked cryptocurrency. According to Kelly, the emergence of robust custodial tools for cryptocurrency are probably four to six months away. Speaking also to CNBC, Kelly said:

We are in an environment where there’s lots of regulation, and this is the best opportunity to get something new through. The iron is hot; it’s time to strike. You have to remember, Bitcoin can move five percent on any given day so. While it may seem crazy to the legacy market, in the Bitcoin world, this is just a normal correction.

At press time, Bitcoin was trading at $7,600 after a quick drop a few hours ago to $7,500.

What do you think about the comments of Bart Smith and Brian Kelly? Keep the conversation going in the comment section below.

Image courtesy of Business Insider and Coinmarketcap.com

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Bitcoin Showing Positive Signs for Another Massive Price Surge

Today is the last day of July that has seen Bitcoin break and maintain the $8,000 price level except for a few minor dips that were quickly reversed. Numerous experts believe that positive signs are pointing to another massive price surge for the top-ranked cryptocurrency as a new month begins.

Bounce Back from ETF Rejection

On July 27, the United States Securities and Exchange Commission (SEC) rejected the BTC ETF application filed by the Winklevoss twins. The rejection came at a time when BTC was enjoying a significant run. Many traders might have feared the worst. After all, such negative news usually buffets cryptocurrency prices.]

As expected, the price plunged below the $8,000, finally bottoming out at $7,300. This price dip occurred within a three-hour period as traders rushed to dump the asset in fear of a likely price crash. During the July rally, some experts identified the possibility of an SEC-approved ETF as one of the drivers of the price increase.

However, twelve hours later, the price of Bitcoin was back up to $8,250. Before the dip, BTC was trading at $8,300. July 28 saw an enormous surge in trading volume which caused the price to rise by more than five percent in less than one hour.

Fundstrat analyst, Tom Lee identified the stability of the market as a positive sign in the evolution of Bitcoin and indeed the cryptocurrency space in general. Commenting on the development, Lee said:

It’s a sign of a positive change in crypto that bitcoin has essentially shrugged off the Winklevoss ETF rejection. If this took place in April-June (more bearish period), the crypto market would have seen a sizable sell-off. In short, affirming why technical are improving.

Multiple Currency Declines Forcing People to Adopt Bitcoin

The trade war between the United States and Japan, economic turmoil in numerous countries, as well as monetary policies in countries like Japan, are having positive effects on Bitcoin. With the uncertainty concerning the fate of many fiat currencies, affluent individuals are flocking to BTC as a way of protecting their wealth.

Do you think another price surge is imminent after this current period of consolidation? What is your end of August price prediction for the top-ranked cryptocurrency? Keep the conversation going in the comment section below. At the moment, Bitcoin is holding steady above $8,000 with a lot of sideways movement.

Image courtesy of Coinmarketcap.com

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Bitcoin Can Reach $50,000 in 2018 Based on Three Factors, Says Investment Manager

Just like Bitmex CEO, Arthur Hayes, Anthony Pampliano is sticking to his $50,000 Bitcoin price forecast for 2018. Pompliano, a partner at Morgan Creek Digital Assets, believes that the top-ranked cryptocurrency has an exciting last half of the year in store for all stakeholders. Presently, BTC is trading slightly below the $8,000 after a slight pullback caused by the SEC rejection of the Winklevoss BTC ETF application.

Human Psychology and Bitcoin Price

In a Skype conversation with Cheddar, Pompliano said:

I’ve got a high degree of confidence that at some point in the future it’s going to hit $50,000. And I’ve got some degree of confidence that it will be by the end of this year.

According to Pompliano, three crucial factors will drive the price of BTC to the $50,000 milestone. These factors are – human psychology, Bitcoin ETF speculation, and an influx of big-money investors.

Pompliano explained that from a psychological perspective, BTC traders prefer round figures. Thus, within any thousand-dollar price range, there was always the tendency to push the value above the next milestone. During BTC’s recent push above $8,000, it broke through three consecutive resistance levels without becoming overbought.

Since the end of June 2018, the market has become awash with positive sentiments which have coincided with fortuitous circumstances such as the trade standoff between China and the United States. At the center of the rumors and speculations in anticipation of an SEC-approved Bitcoin ETF.

On Thursday (July 25, 2018), the SEC rejected the Winklevoss BTC ETF filing. In his analysis before the SEC’s decision, Pompliano revealed that an SEC-approved Bitcoin ETF in 2018 was unlikely. However, speculation about a future approval was enough to sustain the positive sentiment on that count.

Institutional Investors

Finally, Pompliano mentioned the influx of institutional money into the market. As a partner at Morgan Creek Digital Assets, he has a front row seat to the activities of big-money investors in the space. According to Pompliano, cryptocurrencies aren’t alluring only to retail investors but to hedge funds as well, who are looking for the opportunity to make huge profits in a short amount of time.

Many experts agree on the fact that institutional investors will cause a significant price surge in the market. However, big-money players haven’t fully committed to the market due to some nagging problems concerning custody and regulations.

Do you agree with Anthony Pompliano’s analysis? What is your end of year Bitcoin price forecast? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Price Rally was Due to Chinese Currency Devaluation, Says Expert

Clem Chambers is confident that an influx of Chinese money into the market caused the recent Bitcoin price rally. The ADVFN CEO believes that the present economic tussle between the United States and China will cause the top-ranked cryptocurrency to become the safest bet for wealthy investors to hedge any fallout from the trade war.

An influx of Chinese Money Caused Bitcoin Price Surge

According to Chambers the explanations offered thus far by analysts and experts to explain the current BTC price trend aren’t accurate. The ADVFN chief doesn’t agree with the notions that short squeeze, sudden fear of missing out (FOMO) syndrome or any of the other reasons flying around the news are the real triggers for the price push.

Instead, Chambers identifies the situation in China as the real catalyst for the BTC price surge. Writing for Forbes, Chambers said:

However, what caused the sudden unexplained spike is now clear to me. It is [the] Chinese devaluation, the insider reaction to imminent, planned, significant and perhaps rolling Chinese currency devaluation that set off this rally. It was a group of insiders buying bitcoin for Chinese yuan before the devaluation that took place two days later struck. This devaluation process has been going on for weeks, but it accelerated last week.

Frantic dumping of Chinese fiat currency in the wake of reports of an impending currency devaluation flooded the Bitcoin market with a ton of buy orders. Predictably, the market responded to the increased demand by skyrocketing. Many of these wealthy Chinese probably didn’t care if they were paying a premium for Bitcoin as long as they could hedge their wealth against the coming currency devaluation.

U.S. – China Trade War Will Establish Bitcoin as the New Gold

With the current standoff between the United States and China and the latter’s decision to devalue its currency, Chambers expects BTC to become the de facto haven for wealthy individuals. The ADVFN CEO believes Bitcoin is more convenient for people in comparison with gold.

Chambers believes that if the status quo vis-à-vis the trade disputes continues, BTC would be well on its way to knock gold off its perch saying:

If the trade wars go into meltdown, then bitcoin will ‘moon’ because huge amounts of Chinese currency will be swapped for BTC as the yuan-denominated super-rich move to be hedged from the wealth privations of devaluation. Bitcoin, not gold, is and will be the asset they will run to first.

Based on Chambers’ analysis, it seems the current price rally will last for a little while unless a catastrophic market event like a high-profile hack occurs.

Do you agree with Chambers’ reason for the BTC price surge? Let us know your thoughts in the comment section below.

Image courtesy of Coinmarketcap.

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Bitcoin Set for Largest Bull Run in History, Says Mati Greenspan

Mati Greenspan, a senior analyst at eToro, thinks that Bitcoin seems to be on the cusp of a massive price rally. The top-ranked cryptocurrency has begun the week strongly despite a three percent decline over the weekend.

Monday Begins with $300 Bitcoin Recovery

Today (July 23, 2018) Bitcoin has moved up by $300, eroding the three percent loss suffered over the weekend. Trading volumes during the weekend period are notoriously low, so it was no surprise seeing the top-ranked coin slipping to $7,399 on Sunday. At present, BTC is back above $7,600, and bulls are hopeful of an $8,000 push today as the market progresses.

The price jumped experienced today comes hard on the heels on positive news from the G20 as well as clear signals from BlackRock. The G20 yesterday gave cryptos the greenlight only calling for careful observation against fears of its use in illegal financial activities.

This positive news seems to have put a stop to the sharp selling seen on the market especially on Sunday (July 22, 2018). Despite the surge, the asset doesn’t seem to have gone overboard which is a sign that the rally might be sustainable over a significant period.

Market Analyst Predicts the Start of a Bitcoin Bull Rally

Based on these positive signals, Mati Greenspan, a senior analyst at eToro thinks that the good times are here again for Bitcoin. In a tweet posted today, Mati said that the BTC might be on the cusp of its largest bull run in history. If this happens to be the case, then the top-ranked cryptocurrency might set another all-time high (ATH).

The previous BTC ATH of $19,500 was achieved in mid-December 2017. Since the start of 2018, the BTC price has tumbled by more than 60 percent. During that bear run, Bitcoin has thrice slipped below $6,000, and the top-ranked crypto has endured a barren 2018.

Institutional Investors Will Eventually Enter the Market in Droves

One of the highlights of many a discussion in the crypto space has revolved around the entry of big money players into the sector. Many analysts believe that the entry of institutional investors will likely cause a spark in the market resulting in a sustained bull run.

Commenting on the situation with mainstream investors, Romal Almazo, the crypto lead at Capco said:

Any signs of the big players entering the market will cause huge waves. Though my personal belief is that we are still a few years away from reaching this tipping point, we are in what I would refer to as an exploratory phase when it comes to institutions and crypto.

Almazo also said that the lack of regulatory clarity and the absence of custodial tools are part of the reasons why big-money players still shy away from the market.

Do you agree with Mati Greenspan that BTC is on the cusp of a bull run? What is your end of July price prediction for the top-ranked cryptocurrency? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap and Twitter (@MatiGreenspan).

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