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Bitcoin (BTC) Price Analysis: Bears Wrestle for Control

Bitcoin is trending lower inside a descending channel and appears to have already found a ceiling at the mid-channel area of interest. If sellers return at this point, the Fib extension tool on the pullback shows the next potential downside targets.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. In addition, the 100 SMA recently held as resistance on the latest bounce and might continue to keep gains in check.

From here, bitcoin could slump back to the 38.2% Fib next or the 50% level closer to the swing low at $3,270. Stronger selling pressure could take it to the 61.8% level near the channel bottom at $3,150 or the 78.6% extension at the $3,000 major psychological level. The full extension is located at the $2,731 mark.

RSI appears to be heading lower to signal the presence of bearish momentum but is currently hesitating at middle ground, suggesting that there’s a chance buyers could return and push for a larger pullback to the channel top at $4,000. Stochastic is heading south also, so bitcoin might follow suit while sellers have the upper hand.

Analysts are worried that the inability of bitcoin to bust through nearby ceilings signals that the bear market is far from over. After all sellers are piling on at key levels and buyers are also quick to book profits off bounces, keeping the downtrend intact.

Traders continue to hold out for actual developments in the industry before reestablishing any large positions. Some still believe that a surge in institutional investment is due early next year and might be enough to revive volumes and price gains. Changpeng Zhao, chief executive of major global bitcoin and cryptocurrency exchange Binance, thinks Amazon could be the catalyst for the next bull run.

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Analyst: Crypto Bear Market May Get Worse, Bitcoin (BTC) Fundamentally Unsupported

Crypto Market Slows After Imbroglio

Although selling pressure eased off crypto markets over the weekend, Bitcoin (BTC) and altcoins are still in the midst of stormy seas. BTC has found itself stagnant at $3,375, seemingly caught in an inflection point between a short-term bounce and lower lows. As this market’s leading asset has slowed, so has the market capitalization of all cryptocurrencies in circulating. This pertinent figure has moved to $111 billion, just three billion down from Ethereum World News’ Friday update.

Interestingly, trading has dried up in recent days, with the 24-hour volume figure dropping to $13 billion ($6.7 billion adjusted) from the $20 billion ($10 billion adjusted) posted amid Friday’s rapid price action.

What would be a market update with BTC… right?

Over the weekend, BTC embarked on a short-term recovery, moving from $3,300 to a multi-day high at $3,650 over the course of multiple hours. However, as the buying pressure quickly dissipated, BTC began to fall back to Earth on Sunday, moving under $3,500, a cited key support level, before falling victim to the weekly Monday sell-off.

At the time of writing, BTC has found itself at $3,375, down 4.25% in the past 24 hours. Altcoins have also followed suit, with XRP, Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Tron (TRX), and Binance Coin (BNB) all posting near-identical performances to the cryptocurrency godfather.

Analyst: Bitcoin Well Beyond The Ridiculousness Of The Tulip Bubble 

Amid this seemingly endless market tumult, Stephen Innes, head of the Pacific Asia trading arm of Oanda, only doubled-down on his hate for BTC and other cryptocurrencies. Speaking with MarketWatch, the inflammatory crypto skeptic exclaimed that Bitcoin still doesn’t have a use case, obviously forgetting the network’s nature as a borderless, censorship-resistant, decentralized, and efficient medium of value that transcends traditional boundaries.

Innes added that “BTC has gone well beyond the ridiculousness of tulip bulb mania,” evidently referencing the unpopular sentiment that cryptocurrencies are the second coming of the ‘Tulipmania’ of yesteryear.

However, a multitude of industry insiders has overtly stated that cryptocurrencies aren’t in the midst of a bubble, contradicting the relevant point of contention. Ambrosus CEO Angel Versetti, for instance, recently told the Independent, a U.K.-centric news outlet, that while lines can be drawn between the Dotcom Boom at the turn of millennia and crypto in 2017/2018, commentators would be remiss to classify the latter as a bubble.

The startup chief explained that seeing that cryptocurrencies have yet to beckon in institutions, which he referred to as “financiers,” en-masse, a bonafide market bubble has yet to strike this budding asset class. Yet, as seen by the countless crypto-related forays from Wall Street participants, this bubble may be right on the horizon. In fact., Versetti explained that in due time, the aggregate value of all cryptocurrencies may eclipse the $15 to $20 trillion mark, cementing BTC and its altcoin brethren as a legitimate component of the financial world’s vast intricacies.

Still, the aforementioned Oanda trader cast aside these arguments, drawing attention to the “disastrous year” that cryptocurrencies have undergone, likely touching on the ~87% decline experienced by this decade-old market. Innes added that the “current bear market could go from bad to worse,” claiming that there isn’t a fundamental or underlying rationale behind purchasing BTC, especially when “the only support offered up is a squiggly line on an analyst’s chart.”

Innes’ most recent quip comes just two weeks after the trader lambasted cryptocurrencies on Bloomberg TV. As reported by Ethereum World News previously, the Oanda head trader claimed that it’s a “wild west show” out in crypto, before adding that mature investors are still hesitant to purchase BTC, due to its “falling knife” status.

Title Image Courtesy of W A T A R I on Unsplash

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Crypto Startups Going Bankrupt Amidst Market Crash

Blockchain, Cryptocurrency–While investors are left holding the tab from the plummeting crypto market, with this week seeing a relative low for Bitcoin since peaking at $20,000 in December 2017, crypto-based startups have also had to contend with the fallout.

On December 6, Bloomberg reported on a round-up of cryptocurrency startups that are closing doors amidst the most recent price rout for Bitcoin and the broader altcoin market, starting with ETCDEV–the group behind the launch of Ethereum Classic.

ETC, seventeenth in market capitalization with a value of over $400 million, announced last week that it would be closing shop following a shortage of funds and inability to raise more capital to keep the project afloat. Igor Artamonov, founder of ETCDEV and the forked coin of Ethereum (ETH), spoke in an interview on the state of his company in the context of the broader falling market,

“There are a few things that happened at the same time. I am sure if that happened a year ago, that wouldn’t be a problem at all, a year ago there was a lot of free money in the market. But in a bear market there’s a change.”

ETCDEV is not the only crypto based company to take a hit in the present market, with the Bloomberg report including actions by ConsenSys, a software company based out of New York, to cut its workforce by 13 percent as a direct result of falling coin prices. In November, content publishing platform Steemit Inc., which also created the currency Steem (STEEM) to facilitate in-house transactions, had to layoff 70 percent of its employees.

Bloomberg lays the majority of the blame in projects over-extending themselves on digital assets, setting up significant losses as a result of 2018’s ongoing bear cycle,

“Many of the companies are suffering because they kept a portion of their funds in digital assets, whether in tokens they sold through initial coin offerings or in Bitcoin and Ether, which served as the preferred means of exchange in the crypto world. As prices collapsed this year by more than 90 percent in some cases, and their so-called digital wallets thinned out, many developers found they couldn’t raise additional funding.”

With the decline in crypto prices and the demand for ICOs, many projects that made their fortune collecting coins in exchange for issued tokens have had to contend with the ill effects of a collapsing market. In addition, the landscape for fundraising has vastly shifted, with projects no longer being able to raise millions on a whitepaper alone or by including “blockchain” in a company title.

In some ways, the declining market may have the effect of pushing better projects to the top of the heap, with efficiency being valued over greed. Given the sudden boom cryptocurrency experienced in 2017, with coin prices rising several thousand percent for many currencies by year’s end, the gold rush for blockchain and ICOs created a scramble that is still having negative effects on the industry. The focus became on launching projects rather than promoting durability, quality and real world use–a hallmark of an inflated and destined to crash industry.

With prices and the market resetting to a valuation to that of over a year ago, cryptocurrency will find itself of having to do more with less, which includes focusing on development routes that will lead to the greatest adoption by Main Street customers while drawing the interest of Wall Street investors.

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Bitcoin (BTC) Price Analysis: Some Bullish Hints

Bitcoin is still trending lower inside a descending channel on the 1-hour chart but is currently testing the resistance to attempt another break. However this lines up with an area of interest or former support that might now hold as a ceiling.

This level happens to line up with the 50% Fibonacci retracement level around $3,600 so there may be some selling pressure at this level. A break above it could also hit a roadblock at the 61.8% Fibonacci retracement level or the $3,700 area. This also happens to coincide with the 200 SMA dynamic inflection point.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Then again, the gap between the two moving averages is narrowing to reflect slower selling pressure and hint at a potential bullish crossover. Also, bitcoin has climbed above the 100 SMA dynamic inflection point to signal that bullish momentum is picking up.

RSI has reached the overbought zone and started to turn lower, indicating a pickup in selling momentum. Stochastic is also heading south to indicate that bears have the upper hand and could push price to the swing low at the $3,225 area or to the channel bottom closer to $3,000.

On the flip side, a strong recovery among buyers could spur a move to the swing high around $4,050 and a break above this could confirm that a reversal from the downtrend is underway.

Bitcoin has had a lot to deal with in the past weeks as it attempts to shake off the FUD that is currently weighing on prices. Although the recent run has been positive, bulls have been quick to book profits off bounces for fear of another leg lower in prices.

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Bitcoin Price Prediction Gone Wrong: $1M Options Call To Be Purged

$50,000 Per Bitcoin (BTC) Forecast Goes Wrong Amid Bear Market

One year ago, amid the peak of 2017’s monumental cryptocurrency bubble, in which everyone and their dog were incessantly discussing Bitcoin, BlockTower Capital, a juggernaut in the crypto investment realm, made a ludicrous bet on the future value of BTC.

This, for those who aren’t in the loop, was the decision to create a $1 million options contract on LedgerX, a CFTC-regulated cryptocurrency platform, that would reportedly fork out $29 million to BlockTower if BTC hit $50,000 by 2018’s end. In other words, if BTC somehow manages to hold above $50,000 on December 28th, BlockTower will see a thirty-fold profit fly its way.

However, according to a recent report from Bloomberg, and as made clear by crypto’s tumult, BlockTower’s ante might not end well, especially as the vehicle’s expiry date rapidly approaches. In fact, for the $1 million options call to be saved from impending doom, BTC will need to rally by upwards of 1,400% in just three weeks, a near-impossibility for any asset, even in an industry as nascent, yet promising as cryptocurrencies and blockchain technologies.

Still, Ari Paul, a managing partner at the America-based BlockTower, told CNBC in December 2017, just days after the creation of the bet, that he purchased the contract while liquidating his firm’s BTC stash. The former University of Chicago endowment manager then explained that the surprising call allowed BlockTower to secure profits, mitigate risk in a market drawdown, and have a potential to score big if BTC surpasses 50k, clearly accentuating the fact that if the options didn’t strike, he wouldn’t be (financially nor emotionally) devastated.

He echoed this sentiment in a tweetstorm made in late-September, in which he stated that “there’s no shame in losing trades,” before accentuating that risk management was a key factor in the creation of the $50,000/BTC by EOY 2018 options call.

BlockTower Still Bullish On Crypto

Although BlockTower’s ambitious wager on the short-term fluctuation of Bitcoin’s value is likely to go awry in a few week’s time, the firm, or at least some of its representatives, are still undoubtedly bullish on crypto.

Speaking with CNBC’s Fast Money segment, Michael Bucella, a partner at the crypto-focused investment firm, did his best to break down the current state of the Bitcoin market, and what’s in its short to mid-term scopes.

Noting that crypto’s bear cycle isn’t as perilous as it seems, Bucella, a former executive at Goldman Sachs‘ Canada branch, drew attention to his theory regarding the interplay between “strong hands” and “weak hands,” the two overarching types of cryptocurrency investors. The BlockTower partner noted that while it would be accurate to assume that weak hands, also known as speculators, are liquidating their holdings to diehards (strong hands), the latter group isn’t rushing to on-ramp free capital.

He explained that crypto’s recent liquidity dry spell, along with market volatility, can be chalked up to the hesitance from strong hands to bulk-buy Bitcoin. Although this statement may seem bearish in and of itself, Bucella added that crypto’s near-year-long “distress cycle” is presumably coming to its culmination, echoing analysts’ cries that the bottom is almost in.

Bucella, while reluctant to forecast where the looming Bitcoin bottom will hit, added that when BTC finds a floor, whether it be at $2,000, $3,000 or otherwise, opportunities to scoop up the asset at low prices will be rather scant.

And in the end, the BlockTower partner explained that the “smartest money” continues to foray into this industry, whether it be the endowments of MIT, Harvard, Stanford, or the countless institutional players that have overtly expressed interest into purchasing cryptocurrencies. Keeping this thought process in mind, Bucella noted that even purchasing BTC at current prices could be a bargain bin deal, especially from a multi-year perspective.

Title Image Courtesy of Alex on Unsplash

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BTCC Co-Founder Lee Hints At $333,000 Bitcoin (BTC) Prediction For 2021

Bobby Lee Issues Tweetstorm, Hints At Crazy Bitcoin (BTC) Prediction

Through a series of tweets, starting a so-called “tweetstorm,” Bobby Lee, the co-founder of BTCC and the brother of Litecoin creator Charlie Lee, hinted at an extremely bullish prediction for Bitcoin (BTC). This tweetstorm, which began on Friday, saw Lee, a long-time cryptocurrency proponent, pose optimistic hypothetical scenarios to his social media following.

Drawing lines between Bitcoin’s decade-long history of tumult, dismal bear markets, and jaw-dropping parabolic rallies, the crypto-centric entrepreneur claimed that if “history repeats [itself] perfectly,” BTC will first find its true long-term bottom by January 2019 and at $2,500, a further 30% drop from current prices ($3,600), somewhat echoing comments made by his peer industry insiders.

In Lee’s speculative scenario, once BTC bottoms at $2,500, the popular digital asset will enter a lull, which may keep crypto markets in a seduced state until late 2020. By late 2020, just months after the next Bitcoin Block Halving, the anti-traditionalist expects for crypto’s next monumental bull run to start to fester, and eventually embark on an unprecedented rally that will bring BTC above $250,000 a piece, over 100 times the price that it bottomed.  The prominent cryptocurrency player wrote:

[The next rally] would peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023. Something like that?

In subsequent tweets, the BTCC co-founder further outlined the rationale behind this ambitious call, primarily referencing his expectation that the market capitalization of Bitcoin will surpass that of gold in due time, as a result of BTC’s classification as the second coming of the aforementioned precious metal, but in a digital semblance.

Lee explained that if BTC goes for $333,000 a piece, the market capitalization of the asset will reach $7 trillion, the assumed value of all gold on Earth. He wrote on the matter:

One more coincidence: If the next #bitcoin rally (in 2021?) does indeed reach $333,000, that’ll bring Bitcoin’s price to roughly that of #Gold, at $7 trillion each!

Although it would be hard to claim that this was an explicit prediction, considering Lee’s former comments lauding BTC and cryptocurrencies, it would be fair to assume that $333,000/BTC is a logical eventuality in his mind. Still, interestingly, Lee’s most recent forecast comes just months after he claimed that the next halving would only (relatively) send BTC above $60,000.

Not The Craziest Crypto Prediction…

While Lee’s prediction(ish) is undoubtedly somewhat ludicrous, especially considering that cryptocurrencies still have a ways to go, the Bitcoin Foundation board member isn’t the only industry savant to make such extravagant claims.

As reported by Ethereum World News previously, John McAfee, the eccentric multi-millionaire that founded McAfee Software and a long-time zealous anti-governmental figure, told CoinTelegraph that the bear market hasn’t been irksome, as the fundamentals of the Bitcoin Network are alluding to the fact that BTC’s true value is still “escalating tremendously.”

He explained that if “you track the usage curve [of Bitcoin],” $1 million per BTC by 2020 (his original prediction) is conservative, adding that eventually, BTC will be valued by its usage, not by speculative factors and investors.

Title Image Courtesy of Brian Garcia Via Unsplash

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Bloomberg Opinion Bitcoin Price Prediction: More FUD for 2019

Bitcoin (BTC), Cryptocurrency–While the crypto markets see a slight reversal in pricing to round out the final week of December, with Bitcoin creeping closer to $3700 after hitting a relative low earlier in the week, predictions on the outlook of the industry for 2019 continue to sour investors.

Last week, as reported by EWN, billionaire crypto investor Mike Novogratz lamented the state of the cryptocurrency markets throughout 2018, claiming in a conference call that,

“It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

However, Novogratz qualified his statement with some positive spin, reminding investors that coin prices may be down but adoption and general acceptance for crypto and blockchain has been on the rise throughout the year. Despite his crypto investment firm Galaxy Digital Holdings posting over $130 million in losses through 2018’s bear cycle, Novogratz remains confident in cryptocurrency extending into 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

While Novogratz, a long time Bitcoin bull and supporter for cryptocurrency, remains hopeful for a market recovery into next year, traditional financial outlets have fond more reason to be cynical. In a year end, opinion-based review for 2019 predictions, Bloomberg opinion column has struck a chord in crypto investors by publishing more of the FUD that has become part and parcel among mainstream publications.

Rounding out the top of the list for “egregious predictions of 2018,” the opinion piece by Barry Ritholtz lambasts Bitcoin and the litany of assumptions that were made at the start of the year in the midst of a bull run,

“The spectrum of predictions ran from the sublime to the criminally negligent to the utterly insane. It got so bad that a website was set up to track all of the Bitcoin prophesies.”

The article continues on to call out Fundstrat’s Tom Lee and the aforementioned Mike Novogratz for their predictions throughout the year,

“Fundstrat’s Tom Lee’s 2018 forecast for $25,000 Bitcoin was reduced last month to $15,000 by year-end. (The cryptocurrency recently traded at about $3,650.) As foolish as that sounds, it was modest compared to the rest of the asylum. Michael Novogratz forecast that ‘$40,000 was possible by the end of 2018.’”

While Bitcoin continues to trade close to a relative low for the year, with the digital asset slipping from near $20,000 in December 2017 to $3600 as of writing, the schadenfreude for BTC and cryptocurrency in general is mounting. From a combination of FOMO and “I told you so,” traditional finance analysts are lining up to cast stones at the number one cryptocurrency by market cap, despite failing to predict a similarly bullish run for the coin just a year ago.

Investors, still reeling from the losses of 2018’s ongoing bear cycle, have little to be excited for as we enter the final month of the year. However, they have managed to weather the storm of Bitcoin hate and claims of BTC “being dead,” which has led to the creation of websites tracking the obituaries for the coin. Time will tell if the current crop of predictions for the demise of Bitcoin will be added to the heap.

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Crypto Trader Still Long-Term Bullish After Bitcoin (BTC) “Bloodbath”

Crypto Market Conditions Are “Phenomenal” For Traders

Diversified trader Merlin Rothfeld, an investment strategist at Online Trading Academy, recently sat down with Cheddar, an up and coming fintech media outlet, to discuss the current crypto market. The outlet, who has developed a penchant for covering the Bitcoin (BTC) ecosystem, asked the trader, as it did with its other crypto guests, about his opinions on the market.

Interestingly, Rothfeld went against the crowd, claiming that the conditions in the crypto seas are “phenomenal,” alluding to the fact that BTC’s most recent tumult became perfect for scalping, a popular technique used by day traders.

Bitcoin Cash Hard Fork Was A “Systemic Issue”

Still, the multi-markets participant added that 2018’s crypto collapse actually stems from a “systemic issue,” drawing attention to the infrastructure that makes this nascent industry tick. Rothfeld explained:

The technology behind what makes cryptocurrencies popular is threatened right now. That’s the problem that I think is going to bring down a vast majority of cryptocurrencies.

Elaborating on his somewhat vague statement, the Online Trading Academy representative brought up November’s contentious Bitcoin Cash hard fork, which championed by the ABC and SV squads, explaining that such an event undermines decentralization, trust, security, and the immutability of transactions.

Rothfeld then noted that the U.S. Securities and Exchange Commission (SEC) likely took notice of the fork, as claimed by many on Twitter’s crypto ecosystem, adding that more downside could be in store as agencies see fundamental risks and stave away from the space.

This, interestingly, echoes comments made by Barry Silbert of the Digital Currency Group, who called the hard fork an industry “disservice.”

Bitcoin Crash Might Have “Shellshocked” Retail, But There’s Still Potential For Growth

Asked about consumers and crypto themselves, Rothfeld explained that as it stands, there are likely very few retail investors rushing to purchase BTC, which, interestingly, he classified as a “good thing.” The trader noted that when BTC is boiled down, it remains an extremely risky asset at its core, despite its unofficial classification as the world’s second coming of gold, yet in a digital form.

So, following up on his aforementioned comment, Rothfeld noted that there may be some silver linings to the “shellshocked” retail subset right now, presumably due to the unpredictability of cryptocurrencies. Yet, doing his best to keep an optimistic tone, the seeming Bitcoin proponent stated:

There could be some great buying opportunities coming up here. There are a few crypto assets that have great potential for the future, but right now, we’re in the midst of an absolute bloodbath and to be honest, we’ve seen in this in Bitcoin’s history before.

Many Cryptocurrencies Are “Garbage, Junk”

Although Rothfeld painted a positive picture for BTC, the trader went on to add that not all is well for a majority of cryptocurrencies. Expecting a “shakeout,” Rothfeld noted that many cryptocurrencies are “garbage, junk,” noting that like the Dotcom Bubble, there will be startups that are ousted due to their inability to innovate.

Yet, some say it’s unfair to equate cryptocurrencies to the Dotcom Bubble, in spite of the similarities as two ground-breaking industries with global potential. CEO of Ambrosus, Angel Versetti, for instance, told the Independent U.K. that when it comes down to the nitty-gritty, cryptocurrencies aren’t even in a bubble yet, claiming that once crypto assets reach a $15 to $20 trillion market cap, that’s when this decade-old market can pop.

Title Image Courtesy of M. B. M. on Unsplash

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Bitcoin (BTC) At $3,400: Crypto Analyst Looks To “Cockroach” News

Crypto Rebounds (Slightly), Bitcoin (BTC) Still Under $3,500 

To say that crypto’s past 24 hours have been chaotic would, frankly, be putting it rather lightly. While Bitcoin (BTC) recently underwent a slight recovery to move above $3,400, the past day has seen the aggregate value of all cryptocurrencies range between $100 billion and $115 billion. The $100 billion figure, seen for a few fleeting minutes on Friday, has been lauded as a “make or break” level for this nascent industry at large.

This tumult, which is undoubtedly a worrying sight for crypto’s bulls, was backed by a jaw-dropping $20 billion ($10 billion adjusted) in 24-hour volumes, which comes directly after a relatively measly $14 billion Thursday. Interestingly, Friday’s action was backed by the highest daily volume in December so far. 

Now, as always, let’s talk about BTC, the asset that dictates crypto’s day-to-day.

After yesterday’s Ethereum World News market update, BTC continued to falter, somehow reaching $3,300, a new year-to-date low. But, after this foreboding candle, the asset found a semblance of support, finding itself trading around $3,300 for a matter of hours. And eventually, in classic cryptocurrency fashion, bitcoin shot up, just as fast it came down, moving to $3,500 in a few minutes.

While the digital asset, often deemed the world’s next “store of value,” stumbled after the move, colloquially dubbed call a “Bart” after the Simpsons character, BTC has now found itself above $3,400, a seeming short-term support level. At the time of writing, BTC is valued at $3,450 a pop, posting a gain of 1.5% in the past 24 hours.

This move in Bitcoin catalyzed a number of intriguing action in altcoin markets. Stablecoins, for instance, quickly saw an influx of buying pressure, as traders sought solace amid a seemingly endless market downtrend. As noted by CoinDesk’s market analysis team, four Tether (USDT) competitors, TrueUSD, USD Coin, and the Paxos Standard, all entered the crypto Top 30, finding themselves around a ~$190 market capitalization.

Interestingly, altcoins underwent a stronger recovery than BTC. Ethereum (ETH), after falling under $100 to $84, has now recovered to $96, posting a 9.5% daily gain. EOS, Tron (TRX), NEM (XEM), and Monero (XMR) posted similar results, causing the Bitcoin market dominance figure to fall to 54%.

Crypto Analyst Attributes Sell-off To Cockroach-like News Cycle 

Although BTC bounced by 5% off its lows, an analyst still painted a bearish picture for cryptocurrency markets. Issuing a note to MarketWatch’s Aaron Hankin, Naeem Aslam, chief market analyst at Think Markets U.K., explained that BTC, with current momentum and technical indicators in mind, is “crippled” as could fall below $2,000 to $1,500 in due time.

Citing reasons for this bearish prediction, Aslam drew attention to the “bad news” cycle seen in the crypto industry, adding that such negative developments are “coming just like cockroaches out of a hole.” One such development may be the SEC’s recent verdict regarding the foremost Bitcoin ETF application.

As reported by Ethereum World News previously, the SEC delayed its decision on the VanEck-backed application for the umpteenth time, and in the midst of a crypto bear market no less. In an SEC-stamped document published Thursday afternoon, the governmental agency claimed that it would be exercising its right to delay a verdict on the application until February 27, 2019.

Although the release of this document didn’t directly produce any red candles, such a decision likely instilled some semblance of fear in naive investors. Speaking with Bloomberg on the impact of negative industry developments, Timothy Tam, CEO of CoinFi, stated:

“Sentiment in the [crypto] market is really bad, any negative news has an exponential effect.”

Regardless, the Think Markets representative still noted that Bitcoin and cryptocurrencies, in general, have ground-breaking potential, echoing calls he made on CoinTelegraph TV. He stated:

This is a crypto market which has the ability to blow your mind and the downside is limited and the price at its current level represents an opportunity of a lifetime.

Title Image Courtesy of Hektor Ehring Jeppesen via Flickr and Bitcongress

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Bitcoin (BTC) Price Analysis: Bears Push for Wedge Break

Bitcoin broke below its falling wedge consolidation pattern to signal that bearish momentum is picking up. However, price seems to be stalling at the $3,300 level so a pullback to the broken areas of interest may be in order.

Applying the Fib retracement tool on the latest swing high and low shows that the 50% level lines up with the broken wedge support which might be enough to keep gains in check on a correction. The 61.8% Fib is back inside the wedge but might still serve as resistance since it’s close to the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. In addition, the gap between the moving averages is widening to reflect increased selling momentum.

RSI is already indicating oversold conditions, though, and turning higher could show that buyers might be ready to take over. Stochastic is heading south but is also in the oversold region to signal that sellers are feeling exhausted.

Bitcoin seems to have gotten another blow from the SEC announcement to once again delay their ruling on the bitcoin ETF. Although there were already hints earlier from SEC Chairperson Clayton that they’re not likely to approve the proposed rule change anytime soon, the actual decision still seemed to inspire a wave of selling.

However, it’s also important to note that this decision comes after a meeting with representatives from VanEck and SolidX on how ETFs on gold and other commodities may be comparable to the one they’re proposing on bitcoin. In fact, the companies pointed out that bitcoin ETFs may be less prone to market manipulation, so the decision to delay instead of completely reject might prove to be a positive development.

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