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Bitcoin Bull Run More Than Hype This Time – Don’t Be Surprised By US$20,000 Price By Years End

Stronger fundamentals, growing institutional interest and mainstream adoption of cryptocurrencies bode well for the prospects of bitcoin The asset can also work as a hedge against macroeconomic risks Bitcoin Gearing Up For Bull Run? At the time of writing, bitcoin is hovering above the US$10,000 mark. The last time we saw bitcoin reach this price […]

The post Bitcoin Bull Run More Than Hype This Time – Don’t Be Surprised By US$20,000 Price By Years End appeared first on CryptoClarified.

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Bitcoin to $20,000 in 2019? Bitcoin, the world’s largest cryptocurrency, surged in value to hit US$13,000 in late June.
Bitcoin, the world’s largest cryptocurrency, surged in value to hit US$13,000 in late June.
  • Stronger fundamentals, growing institutional interest and mainstream adoption of cryptocurrencies bode well for the prospects of bitcoin
  • The asset can also work as a hedge against macroeconomic risks

Table of Contents

Bitcoin Gearing Up For Bull Run?

At the time of writing, bitcoin is hovering above the US$10,000 mark. The last time we saw bitcoin reach this price was in December 2017, after which, the cryptocurrency went on to reach its all-time high of nearly US$20,000 in a matter of days.

The cryptocurrency market remained bearish for all of 2018, but with the way bitcoin is charging upwards and setting new highs in 2019, it is safe to say that the crypto-winter is behind us already. In the past several years, we have witnessed a cyclical pattern emerging in the cryptocurrency space.

And with each cycle, we reached exponentially greater heights.This time around, analysts have come up with bolder price predictions, ranging from US$21,000 all the way up to US$100,000, all of which begs the question: is the current bull market any different from the last one?

See: Expert Predictions: Price Forecasts of Bitcoin and Ethereum

Bitcoin, the world’s largest cryptocurrency, surged in value to hit US$13,000 in late June. Illustration: Reuters

Bitcoin, the world’s largest cryptocurrency, surged in value to hit US$13,000 in late June. Illustration: ReutersAt the time of writing, bitcoin has just surpassed the US$13,000 mark. The last time we saw bitcoin reach this price was in December 2017, after which, the cryptocurrency went on to reach its all-time high of nearly US$20,000 in a matter of days.

2018: Year of the Bears

The cryptocurrency market remained bearish for all of 2018, but with the way bitcoin is charging upwards and setting new highs in 2019, it is safe to say that the crypto-winter is behind us already. In the past several years, we have witnessed a cyclical pattern emerging in the cryptocurrency space. And with each cycle, we reached exponentially greater heights.This time around, analysts have come up with bolder price predictions, ranging from US$21,000 all the way up to US$100,000, all of which begs the question: is the current bull market any different from the last one?

inRead invented by TeadsDuring the peak of the 2017 cryptocurrency bull run, several sceptics compared it to the Tulip mania of the 17th century, with most convinced that bitcoin was a bubble. However, since 2017, bitcoin and other cryptocurrencies have come a long way in terms of maturity. Bitcoin fundamentals are stronger than ever, institutional interest is at an all-time high and mainstream adoption is on the rise, strengthening the argument for why the market is not based totally on hype this time.

sceptics compared it to the Tulip mania of the 17th century, with most convinced that bitcoin was a bubble.
sceptics compared it to the Tulip mania of the 17th century, with most convinced that bitcoin was a bubble

Earlier this month, Blockchain.info reported that bitcoin’s hash-rate – the speed at which a bitcoin mining machine operates – reached a historical high of 74,548,543 terahashes per second. In simpler terms, the bitcoin blockchain is more secure than it ever has been and breaching the network would require unimaginable computing power. In addition, the average number of transactions on the blockchain has consistently risen. As reported by localbitcoins.org, the weekly average transaction volume has remained above US$50 million since September 2017.

Daily active bitcoin wallets crossed the 1 million mark in June this year, according to data published by Coin Metrics, providing another indication that more people are now using bitcoin.

Institutional Investment in Bitcoin Gaining Traction
Institutional Investment into Bitcoin Gaining Traction

Institutional Investors are Coming

Institutional involvement in the cryptocurrency space, over the past year, has been incredible. It is easy to argue that the 2017 bull-run was largely fuelled by retail investors. This time around, institutional investment in cryptocurrencies has gained traction.

Will China be forced to develop its own cryptocurrency in response to Libra?

Fidelity is set to launch cryptocurrency trading for institutional investors, seeing huge demand in that niche. Earlier this month, CME Group recorded open interest – the number of active contracts held by investors – in 5,311 contracts, totalling 26,555 bitcoin, significantly higher than the 2017 price peak.

Furthermore, JP Morgan, one of the biggest investment banks in the world, launched its own token, JPM coin, to settle payments between institutional clients. The biggest social network in the world, Facebook, is set to launch its own cryptocurrency, Libra, next year. Regardless of the use cases of these institutional cryptocurrencies, they are a step in the right direction, giving more legitimacy to the industry.

A technician monitors cryptocurrency mining rigs at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada, in July 2018. Photo: Bloomberg
A technician monitors cryptocurrency mining rigs at a Bitfarms facility in Saint-Hyacinthe, Quebec, Canada, in July 2018. Photo: Bloomberg

Is Bitcoin Digital Gold?

To most, the thought of bitcoin as a safe haven may sound completely absurd given its volatility. However, a recent study from Grayscale Research analyses the correlation between bitcoin and macroeconomic developments, illustrating the use of bitcoin as a hedge against political unrest and macroeconomic uncertainty.

Even though bitcoin does not really feature in the conventional list of safe havens, more people are relying on the cryptocurrency as a hedge against movements in the “traditional” financial market. Correlation does not necessarily mean causation but the key takeaway here is that bitcoin and other cryptocurrencies are becoming more popular among investors for diversifying their portfolios.

To stimulate their economies, central banks around the world are turning dovish: cutting interest rates and printing more money. While this has made investors rejoice in the short term, bitcoin holders are confident that in the long term, bitcoin will outperform fiat currencies, the supply of which is growing at a rapid pace.

Read: Why the stock market rally will not last long

The Cryptocurrency Market Has Matured Weathered, with some gray hairs the digital currency is still kicking
The Cryptocurrency Market Has Matured

The cryptocurrency market is definitely more mature than it was during the last bull run and there is more intelligent money in the market than there was the last time. Fear of missing out will still definitely be a huge catalyst in driving up prices but we cannot ignore the other developments that have added legitimacy and increased the ways in which cryptocurrencies could be used, paving the way for mainstream adoption.

How prices will move remains of interest. Past performance is not an indication of future results, but if the observed pattern were to continue, we could be looking a year-end price well above the US$20,000 mark.

Bitcoin Volatility Lowest Levels Since May

  • Bitcoin’s price volatility, as represented by Bollinger bandwidth, has hit the lowest level since May 3, and is closing on a level seen ahead of violent price swings in the past.
  • While technical charts are increasingly favoring a downside move, bitcoin’s non-price metrics continue to call a bullish move, which, so far, has remained elusive.
  • BTC risks falling to $9,855 (Sept. 11 low) in the next couple of days and could extend the decline toward $9,320 (Aug. 29 low).
  • The bearish case would weaken above Sept. 13’s high of $10,458. The outlook, as per the daily chart would turn bullish above $10,956 (Aug. 20 high).
Bitcoin Price Forecast 2019

Bitcoin’s volatility has hit its lowest level in over four months – a price squeeze that may force a significant move either way.

BTC’s bull run stalled at highs above $13,800 on June 26 and prices have created lower highs and higher lows ever since.

Notably, the trading range has narrowed sharply over the last two weeks, with bitcoin consolidating between $9,850 and 10,950, as per Bitstamp data.

As a result, the Bollinger bands – volatility indicators placed 2 standard deviations above and below the price’s 20-day moving average – have narrowed sharply.

More importantly, Bollinger bandwidth, an indicator used to gauge market volatility, has dropped to 0.11 – the lowest reading since May. 3, as seen in the chart below.

Bollinger Bandwidth

The volatility level has dropped steadily from 0.62 to lows near 0.10 in the 2.5-months.

In the past, BTC has witnessed big moves following drops to or below 0.10 (marked by arrows).

For instance, the bandwidth dropped to 0.06 a week before BTC broke into a bull market with a high-volume move to $5,000 on April 2. It also fell to 0.10 on May 2 – a day before BTC jumped above $5,600, marking an upside break of a three-week-long consolidation. And, in the days leading up to last November’s sell-off below $6,000, volatility dropped to 0.05.

If history is a guide, then BTC could soon witness a big move on either side. Technical analysis theory also states than an extended period of low volatility is often followed by a big move.

While the record high hash rate (miner confidence) is calling a bullish move, the technical charts are beginning to favor the bears.

As of writing, BTC is changing hands at $10,170 on Bitstamp, representing little change on a 24-hour basis.

Daily chart

Bitcoin jumped 2.6 percent on Sept. 12, confirming an upside break of a falling wedge pattern. The bullish breakout, however, failed to draw bids and the cryptocurrency has ended up creating another lower high at $10,458 (Sept. 13 high).

With the failed breakout, the bearish view put forward by Sept. 6’s big red engulfing candle has gained credence.

BTC risks falling back to the Sept. 11 low of $9,855 in the short-term. A violation there would open the doors for $9,320 (Aug. 29 low).

A few observers are calling for a deeper drop to levels below $8,000. That possibility cannot be ruled out as the cryptocurrency is looking heavy on the longer duration charts.

Monthly and weekly charts

The back-to-back inside bar candlestick patterns on the monthly chart (above left) indicate buyer exhaustion following a stellar rally from $4,000 to $13,880.

A bearish “inside bar” reversal would be confirmed if prices close (UTC) below $9,049 – the low of the first inside bar created in July – on Sept. 30.

Further, a negative reading on the weekly moving average convergence divergence (MACD) indicates scope for a deeper pullback.

The bearish case would weaken if prices rise above $10,956 (Aug. 20 high), invalidating the lower highs setup on the daily chart.

That said, a weekly close (Sunday, UTC) above $12,000 is needed for bull revival, as discussed last month.

Article by

Sagar Chaudhary

Sagar Chaudhary  

South China Morning Post

&

Omkar Godbole

Omkar Godbole

Coindesk

Blockchain

Bitcoin dominance is an irrelevant metric unless…

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The volatile cryptocurrency market has given way to multiple metrics for the market observers to analyze and predict what’s coming next. One such metric has been Bitcoin dominance, but as per Su Zhu, it should not be relevant to you unless you are a billionaire.

How so?

The CEO of Three Arrows Capital opined this after noticing the trend of the newcomers avoiding Bitcoin and Ethereum and opting for risky crypto tokens. When the largest digital asset was stuck in a wider correction period, altcoins like Dogecoin [DOGE] grabbed much attention. This was possible due to the hype created by Tesla CEO or, self-proclaimed “doge-father,” Elon Musk and the Doge community.

However, understanding the newcomers’ enthusiasm Zhu opined that if he were to bet on projects now, he would choose Solana and Avalanche.

Despite the popularity of altcoins, the exec remained bullish on Bitcoin and Ethereum as he expected, the former to flip gold’s market cap, and the latter to eventually hit a value above $25,000. Bold predictions, but nothing we haven’t heard before.

However, newcomers were more bothered about the dominance metric but as data suggested, Bitcoin dominance has recently been falling. The dominance was hit earlier but recovered to form a peak at 49.25% on 30th July. But given the correction phase that followed, the dominance of BTC fell and was last noted to be at 40% on 10th September.

It is interesting to note that despite plenty of adoption related news such as that of El Salvador, coming in over the past few weeks, it looks like the dominance has remained unaffected by it.

Source: CoinMarketCap

Twitter user and crypto enthusiast, @HsakaTrades also noted that Bitcoin dominance was not a relevant metric for anyone who has a “sub mid 9fig portfolio]. Agreeing with Hasaka, Zhu added,

“To clarify, if you’re holding for 5+ yrs, you shouldn’t be thinking about btc dominance in the first place. And obv btc and eth have a strong place in that portfolio.

If you’re allocating actively atm, and think debating btc v eth v alts is a good framework, you’re ngmi.”

While this advice could stand true for experiences, long-term trader interested in making money, but not the ones looking out to invest in tech. This was especially highlighted in the comments wherein the crypto users were upset about the CEO’s Solana [SOL] recommendation that recently witnessed an outage.

Nevertheless, the trading advice and strategies differd from trader to trader and Zhu’s opinion to not focus on the BTC dominance, prebably stemmed from a hodlers perspective. While interesting projects were now erupting in the crypto space, it looks like Bitcoin’s dominance, not only in terms of price, but as a crypto project could be challenge.

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Source: https://ambcrypto.com/bitcoin-dominance-irrelevant-for-anyone-not-10figs

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Millions of Dollars Raised Through Solana’s DeFi Projects

Millions of Dollars Raised Through Solana's DeFi Projects

PAI, an algorithmic stablecoin, backs Parrot Protocol. Grape Protocol was the primary source of the downtime. Solana has been up

The post has appeared first on thenewscrypto.com

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  • PAI, an algorithmic stablecoin, backs Parrot Protocol.
  • Grape Protocol was the primary source of the downtime.

Solana has been up nearly 3200% since August. Investors’ interest in Ethereum rival systems featuring DeFi, NFT, and smart contract services has risen dramatically.

The software applications that simulate legal contracts are smart contracts. Once housed on a blockchain network, the software application will run automatically without human intervention.

This month, Solana’s DeFi initiatives raised millions of dollars. This is another proof of Solana’s potential to compete with Ethereum. Currently, Ethereum has the most DeFi and NFT projects.

Bots raced to invest in a token sale for Grape Protocol over flooded the blockchain, causing Solana to collapse for 17 hours on Tuesday. Let us take a look at the few IDO that helped raise millions.

Grape Protocol

Grape Protocol, the primary source of the downtime, managed to raise just $600,000 on Raydium’s “Acceleraytor.”

Tokenized communities may use Grape Network to connect to platforms like Discord, Telegram, and soon twitter to collaborate over Solana and reward members with crypto.

Parrot Protocol

Parrot Protocol is based on Solana. Investors in the Initial DEX offering included Sino Global Capital, Alameda Research, and QTUM VC. Moreover, to put it simply, Parrot is a non-custodial lending platform and decentralized exchange.

PAI, an algorithmic stablecoin, backs Parrot. Furthermore, Parrot offered a governance token called PRT in its IDO. Thus, allowing investors to vote on the protocol’s operation and farm yields on Solana without affecting other Layer 1 blockchains.

Solana’s failure impacted Parrot’s IDO, but it was resolved by Sept. 16. Moreover, the team said it would start working on PRT staking, NFTs, and adjustable interest rates in “Letter from the Parrot.”

Several Solana initiatives will be launched in the next day’s/weeks. Examples include Solanium, Boca Chica, and Solstarter. On Solanium, whitelisted users may buy MatrixETF.

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Source: https://thenewscrypto.com/millions-of-dollars-raised-through-solanas-defi-projects/

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Cosmos (ATOM) Lead Market-Wide Rally

Cosmos (ATOM) Lead Market-Wide Rally

Cosmos’ creators call it an “internet of blockchains.” ATOM also launched a bridge to Ethereum at the end of August.

The post has appeared first on thenewscrypto.com

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  • Cosmos’ creators call it an “internet of blockchains.”
  • ATOM also launched a bridge to Ethereum at the end of August.

Cosmos (ATOM) blew up 10.74 percent overnight to establish a new price of $39.58, according to CoinMarketCap. It surpassed $40 yesterday, reaching $40.76. Despite today’s minor decline, Cosmos’ price was still ten dollars more than seven days ago, and twenty dollars higher than this time last month.

Its creators call it an “internet of blockchains.” It’s an interoperability network that allows various blockchains to connect, exchange data, and interact with one another.

In short, Cosmos claims to address some of the “hardest problems” in the blockchain sector. It seeks to provide an alternative to “slow, costly, unscalable, and ecologically harmful” proof-of-work protocols like Bitcoin by connecting blockchains. On August 18, Cosmos rose 25% from $15 to $20 after the introduction of Emeris, a cross-chain DeFi interface.

It also launched a bridge to Ethereum at the end of August. The inter-blockchain communication protocol (IBC) allowed trade across the Cosmos and Ethereum networks for the first time, along with the integration of Sifchain.

Cosmos Might Soon Over Take FTX Token

Cosmos is “Blockchain 3.0” — thus, as previously said, ease of usage is a significant objective. To this aim, the Cosmos SDK emphasizes modularity. This enables a network to be created quickly using existing code. Long term, it is anticipated that sophisticated applications would be simple to build.

Cosmos now has the twenty-first largest market value, but at this pace, it would only take $0.8 billion to flip FTX Token and make a bold entry into the top twenty.

Some in the crypto sector, much worried about the amount of fragmentation in blockchain networks. There are hundreds, yet few can converse. Cosmos wants to change this by making it feasible.

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Source: https://thenewscrypto.com/cosmos-atom-lead-market-wide-rally/

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