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3 Reasons Why Bitcoin Price May Slip Below $10K This Week

A potential catalyst for Bitcoin’s supersonic price rally in 2020 has been the combination of ultra-flexible monetary policies of central banks and massive spending by governments. The prospects of cheaper money have inspired many to seek hedge in what is now the world’s leading cryptocurrency by market capitalization. As a result, BTC/USD jumped from $3,858 to just shy of $10,500 within only five months of trading. Nevertheless, the very same catalysts that pushed the pair exponentially […]

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A potential catalyst for Bitcoin’s supersonic price rally in 2020 has been the combination of ultra-flexible monetary policies of central banks and massive spending by governments.

The prospects of cheaper money have inspired many to seek hedge in what is now the world’s leading cryptocurrency by market capitalization. As a result, BTC/USD jumped from $3,858 to just shy of $10,500 within only five months of trading.

Nevertheless, the very same catalysts that pushed the pair exponentially higher are now giving away the signs of withdrawals. Especially this week, investors have started entertaining the idea of a US economic recovery without additional monetary supports.

The outcome is a corrective BTC/USD trend, now trading about 18 percent lower from its year-to-date high.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy

Bitcoin eyes a breakout above $10,500 to retain its short-term bullish bias. Source: TradingView.com

The prospects of a stronger-than-expected recovery in manufacturing and jobs have left Bitcoin in a short-term bearish bias. There are three reasons now that threatens to take the cryptocurrency’s breakdown below $10,000 this week.

#1 A Bullish Dollar

Not many believed that the US dollar would rebound as it crashed to its two-year low levels. But the greenback marked a comeback despite the Federal Reserve’s stress on keeping the interest rates lower and inflation higher above its ideal targets for a more extended period.

us dollar index, dxy, federal reserve

US Dollar Index (DXY) closed last week higher by 0.21 percent. Source: TradingView.com

The appeal for the US dollar resurfaced as risk-on assets went on a price correction spree from their overbought areas. The US equity market, for instance, logged its most significant one-day decline on Thursday since June.

As a result, the tech-savvy Nasdaq plunged 1.18 percent last week, while the S&P 500 and the Dow Jones fell 2.31 percent and 1.82 percent, respectively. Analysts noted that investors decided to sell-off their profitable positions in the US stocks after the Department of Labor revealed an 8.4 percent dip in the unemployment rate.

And the US dollar rebounded, thus reducing bids for safe-havens like gold and Bitcoin. A stronger sentiment for the greenback is one of the reasons why Bitcoin could eye a close at or below $10,000 this week.

#2 US Stimulus

Investors may end up increasing their exposure in the US dollar also as hopes of a successful US stimulus deal fades after last week’s strong economic figures.

A Financial Times report published on Sunday reveals Republicans’ likelihood of squashing the Democrats’ demand for a $915tn aid. Instead, the Trump administration is likely to go ahead with a much-reduced package of $500 billion – or less.

“In the Cares Act [the March stimulus bill] we got to a deal because there was a crisis mentality on both sides when the market was crashing and the economy was shutting down. The crisis mentality is just not there right now on the Republican side,” acknowledged Ben Koltun, senior research analyst at Beacon Policy Advisors in Washington, in his statement to FT.

As the US Congress returns to discuss the matter by the end of this month, investors would most likely keep the US dollar afloat above its local support levels. That–again–puts cold water on Bitcoin’s bullish expectations.

#3 That CME Bitcoin Futures Gap

Bitcoin traders are, meanwhile, expecting the price to move towards a missing candle that appeared on the CME BTC/USD Futures charts in mid-July.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy

Bitcoin Futures gap at $9,925-9,665. Source: TradingView.com

The so-called “gap” sits at $9,665. Earlier observations show that Bitcoin fills these spaces 9 out of 10 times. So that leaves the cryptocurrency with at least a 90 percent chance of closing above $10,000.

BTC/USD was trading for $10,209 at the time of this writing, down 0.46 percent into the Monday session.

Source: https://bitcoinist.com/3-reasons-why-bitcoin-price-may-slip-below-10k-this-week/?utm_source=rss&utm_medium=rss&utm_campaign=3-reasons-why-bitcoin-price-may-slip-below-10k-this-week

Blockchain

Spanish Banking Giant BBVA to Launch Bitcoin Trading and Custodial Services in Switzerland

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After conducting tests for several months, the Swiss branch of the large Spanish bank – Banco Bilbao Vizcaya Argentaria (BBCA) – has announced plans to release two services related to the cryptocurrency industry.

  • According to the official statement, private banking customers based only in Switzerland will have the option to trade bitcoin and other digital assets starting from Monday – June 21st.
  • BBVA’s second service will enable its clients to store their digital assets on a regulated platform, and both initiatives will launch simultaneously.
  • Nevertheless, the entity has no plans to offer advice or actively manage any funds related to cryptocurrency investments.
  • Alfonso Gomez, CEO of BBVA Switzerland, explained that these services come after an extended trial period and enhanced customer demand.
  • “This gradual roll-out has allowed BBVA Switzerland to test the service’s operations, strengthen security, and, above all, detect that there is a significant desire among investors for crypto-assets or digital assets as a way of diversifying their portfolios, despite their volatility and high risk.” – he added.

  • The services and a bitcoin management system will also be available in the bank’s mobile application. Users will be able to use to review their investments and track their performance.
  • The bank will provide a personalized digital wallet, which will enable customers to convert BTC and other digital assets to euros or other fiat currencies, and vice versa. The process will be automatic, “without delays and without the illiquidity that affects other digital wallets or independent brokers.”
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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/spanish-banking-giant-bbva-to-launch-bitcoin-trading-and-custodial-services-in-switzerland/

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Blockchain

Polkadot, EOS, IOTA Price Analysis: 18 June

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The cumulative market cap of the cryptocurrency sector was $1.57 trillion at press time, having fallen by 2.39 percent since yesterday. The market’s alts were falling too, with the likes of Polkadot, EOS, and IOTA seeing red on the charts. While Polkadot continues to maintain its position in the top 10, EOS was ranked 27th while IOTA was ranked 40th.

Polkadot [DOT]

Source: DOT/BUSD – Trading View

DOT fell from a recent high of $26 to $22.34, its price at press time. Its 24-hour trading volume was down by 31.28 percent at $1 billion. Its price dropped by 6.3 percent in just 24 hours.

The coin has not dipped below the $20-resistance mark since the beginning of this month. However, after climbing to a high of $28.5 on 3 June, the alt’s price went sideways and did not cross the lower high of $26. There may be a further dip in the price, as evidenced by the findings of the Parabolic SAR.

The Stochastic RSI at the lower end, below 20, suggested that the prices may rise, however, following a reversal. Finally, the Chaikin Money Flow was below zero and pointed to high capital outflows and the likelihood of a further drop in price.

EOS

Source: EOS/BUSD – Trading View

Even though EOS had made a decent recovery toward the end of May, it slumped again from a high of $7.7. Its price continued to drop today, dipping by 3.8 percent.

Consolidating between the $4.4 support and $5.4 resistance since 8 June, the coin was changing hands at $5, at the time of writing.

The parallel Bollinger Bands showed no signs of volatility and dominant bearish momentum was displayed by the Awesome Oscillator. The Relative Strength Index indicator was moving upwards, indicating growing buying pressure.

IOTA

Source: IOTA/BUSD – Trading View

After a significant drop from $ 1.2 a few days ago, IOTA was still trading in the red after dropping by 3.6 percent in the last 24 hours. At $31 million, its 24-hour trading volume had dropped by 28.29 percent.

Over the last ten days, its price did not breach the $ 1.2-resistance mark. However, a new support level was established after 13 June. With the indicator below the 20-mark, the Average Directional Index pictured a weak trend which may strengthen in the future, going by its movement.

The MACD and Signal lines were meeting and neither a bearish nor bullish trend was established. The Parabolic SAR’s markers were found above the candlesticks and pointed to an upcoming dip.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/polkadot-eos-iota-price-analysis-18-june

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Blockchain

This Bitcoin HODLer Metric Has Just Flipped Green For The First Time In 8 Months – Here’s What This Means

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This Bitcoin HODLer Metric Has Just Flipped Green For The First Time In 8 Months - Here's What This Means

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The long wait is over, or so it appears as Bitcoin holders prepare to set foot into a green zone after seven months of red hot drought.

The earliest signs of a bullish rebound for Bitcoin were sighted on Glassnode’s on-chain metrics this week. Bitcoin users joyfully watched as the index flipped an unprofitable red-run that had gripped hodlers of the apex crypto-currency since mid-November.

Popular crypto expert, Will Clemente noted this latest bitcoin development as a sequel to last month’s net holders position outlook which showed a large sales of Bitcoin coming from the camp of inpatient short-term holders.

Image

What Does This Imply?

The biggest take from this new index is that patient bitcoin holders may now finally see positive returns on their long-term investments.

It also may show that the market has fully corrected holding positions as was seen last month, where Bitcoin’s dip below the $35,000 resistance frightened many new entrants, including young whales (who held large amounts of bitcoin for less than three months), leading to a massive liquidation drive that transferred coins from young holders to old and experienced holders.

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BTCUSD Chart By TradingView

Who are the catalysts?

It is unclear what exactly may have spruced the ground for a much-needed leap up, but one cannot underestimate the impact of Bitcoin’s recent acceptance by the government of El-Salvador. Having emerged as the first of its kind to tear through the government’s veil of financial legitimacy, the scale of its operation and use may now become more expanded than ever before. This is most likely to spur more citizens and governments of other countries to innovate their financial system around the digital currency with growing national acceptance. 

Others may attribute part of its recent success to Elon Musk’s turncoat claims about Tesla returning to Bitcoin, after ditching the currency in a precarious moment.

But one thing inevitably clear, in the world of crypto influencers is the role of Michael Saylor to keep the masts of bitcoin sailing amidst the troubled waters of last month. From a conference to address energy concerns to an additional injection of $1 billion into bitcoin, the CEO of MicroStrategy has done a lot to build resistance for the apex currency.

Going Forward

As Will Clemente spots the early symptoms of progress, it is expected that many investors who remained skeptical about buying and waiting through the dip, would want to cast in their lots before the entry price soars to the point of eroding leverage.

This means more activity for Bitcoin, more health value upshot, and more reward for those who took Robert Kiyosaki’s advice to ‘buy the dip.’

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/this-bitcoin-hodler-metric-has-just-flipped-green-for-the-first-time-in-8-months-heres-what-this-means/

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