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Bitcoin price clings to $10,000 as BTC whales sit on the fence

Bitcoin price has been barely clinging to the vital $10,000 level – but for how long? The prolonged bull-bear battle will soon reach a climax as investors worry about the broader selloff in the crypto market. on the contrary, there can be a short-term relief rally also in the works taking Bitcoin price near the […]

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Bitcoin price has been barely clinging to the vital $10,000 level – but for how long? The prolonged bull-bear battle will soon reach a climax as investors worry about the broader selloff in the crypto market. on the contrary, there can be a short-term relief rally also in the works taking Bitcoin price near the stubborn $12,000 resistance.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 1
Cryptocurrency heat map by Coin360

As Bitcoin price briefly breaks $10,000 support to touch the $9,940 level with downward indications on the hourly charts, traders can’t decide how low it may go. Massive sell-offs in the altcoin realm is sending bearish signals to the BTC/USD pair. Despite several short bursts below the $10,000 mark, bulls have rescued it with renewed buying activity.

Markets are waiting with bated breath whether the next few days would lead to a relief rally or is there further consolidation on the cards. The low volume indicates that BTC/USD pair is waiting for confident signals for large investors and traders to come into play.

Bitcoin price chart can’t shake off consolidation

The hourly BTC/USD chart is not giving clear signals to the day traders. Currently, the pair is trading at 10,040 with a neutral rating on most technical indicators. The congestion of bulls and bears is providing solid support to the BTC/USD pair.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 2
Bitcoin price chart by TradingView

Further below, there is strong support between $9,500 to $9,600 level to prevent any aggressive decline underneath. On the hourly charts, the first resistance for bulls to cross lies at $10,175 followed by another at $10,290. On the downside, there’s support at $8,750 in case there’s aggressive selling or profit booking.

The MACD indicator has plenty of room to run downstairs on both hourly and daily charts thereby contributing to the bearish onslaught. Moving averages, simple and exponential, are intermingled on the hourly charts and can’t be taken seriously right now. However, they do signal a short-term rebound for Bitcoin price.

Bears seem to be losing breath as per the DMI indicator. The selling pressure, if any, may not last long considering there’s a strong bull case scenario building up due to prolonged inaction. RSI is in neutral territory. So, technically Bitcoin price isn’t sending any immediate trend reversal signals that day traders can exploit.

BTC whales are ready to buy the dip

As per the latest on-chain metrics, Bitcoin whales and large crypto investors are using the current price correction opportunity to accumulate Bitcoin. As price hovers around the $10,000 mark, there may be renewed buying interest from the institutional investors as well to push the pair into bullish territory.

As per Santiment, on-chain data reflects that cryptocurrency exchanges are reporting higher stablecoin inflow. It means that traditional investors are looking to cash in on the latest BTC sell-off and further correction in BTC/USD pair can start a buying spree. Historically, the inflow of stablecoins into exchanges has been linked to Bitcoin price movements.

The $10,000 level has been tested continuously for the past few days. The thin liquidity on the Labor day sparked off some wild movements on the hourly charts. This tumultuous period cemented the strong credentials of the $10,000 support. Accumulation of stablecoins in crypto exchanges by large investors goes on to show that any further correction in Bitcoin price can trigger a buying spree.

The $10,000 level is psychologically and technically a pivotal point. There’s a range of support points below the $10,000 level running all the way up to $9,000 – providing enough buying opportunities to the bulls. The movements in the US dollar and Federal Reserve policy continue to impact Bitcoin price. The massive money printing and perennial low-interest rates will only support the macro cull case scenario for BTC/USD pair.

The CME gap data indicates a double-bottom formation

The psychological $10,000 support is ripe to serve as a bounce point for the relief rally. Sellers confidently broke the $11,200 region thereby creating a strong resistance. The two prominent CME gap areas are $9,650 and $9,900. Both gap points remain partially filled.

The volatile BTC/USD pair created an additional CME gap around the $10,450 region. Historically, it is highly likely that this gap is filled soon by short-term bulls. Traders eye gaps to track price movements thereby indicating a short-term price prediction. The double bottom formation indicates that a fresh lower low is on the cards which in turn can indicate an upcoming bullish divergence.

Bitcoin price clings to $10,000 as BTC whales sit on the fence 3
Bitcoin price chart by TradingView

However, Bitcoin price has not displayed any aggressive bullish behavior to bounce from the $10,000 level. Short term bounces can help create a support region from where higher lows can emerge. But trader Alan Masters points out that consecutive lows can signal a bearish momentum taking the Bitcoin price to $9,100.

Buying on the dips has been the flavor throughout 2020

Even though Bitcoin price is down $2,000 from this year’s highs, 2020 has been all about the macro bull rally. The crypto king’s performance during the Coronavirus pandemic has earned it safe-haven laurels. The current price action is merely a pause in the macro bull rally that took Bitcoin price past $12,000.

Investors are very much aware of the volatility in the crypto market. Thus, they are ready to brace for miniature bear market phases. The trend in BTC/USD pair is very much to the upside. The next leg of the rally will feature institutional investors and Bitcoin whales besides the retail investor. Brief movements below $10,000 will only prove to be buying opportunities.

Disclaimer: The information provided is not trading advice but an informative analysis of the price movement. Cryptopolitan.com holds no liability towards any investments based on the information provided on this page.

Source: https://www.cryptopolitan.com/bitcoin-price-clings-to-10000-btc-whales-buy/

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Bitcoin Proponents Against Elon Musk Following Heated Dogecoin vs Bitcoin Tweets

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Last week, Elon Musk and Tesla shocked the entire crypto industry following an announcement that the electric car company will no longer accept bitcoin payments for “environmental reasons.”

A Hard Pill For Bitcoin Maximalists

Giving its reasons, Tesla argued that Bitcoin mining operation requires massive energy consumption, which is generated from fossil fuel, especially coal, and as such, causes environmental pollution.

The announcement caused a market dip which saw over $4 billion of both short and long positions liquidated as the entire capitalization lost almost $400 billion in a day.

For Bitcoin maximalists and proponents, Tesla’s decision was a hard pill to swallow, and that was evident in their responses to the electric car company and its CEO.

While the likes of Max Keiser lambasted Musk for his company’s move, noting that it was due to political pressure, others like popular YouTuber Chris Dunn were seen canceling their Tesla Cybertruck orders.


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Adding more fuel to the fire, Musk also responded to a long Twitter thread by Peter McCormack, implying that Bitcoin is not actually decentralized.

Musk Working With Dogecoin Devs

Elon Musk, who named himself the “Dogefather” on SNL, created a Twitter poll, asking his nearly 55 million followers if they want Tesla to integrate DOGE as a payment option.

The poll, which had almost 4 million votes, was favorable for Dogecoin, as more than 75% of the community voted “Yes.”

Following Tesla’s announcement, the billionaire tweeted that he is working closely with Dogecoin developers to improve transaction efficiency, saying that it is “potentially promising.”

Tesla dropping bitcoin as a payment instrument over energy concerns, with the possibility of integrating dogecoin payments, comes as a surprise to bitcoiners since the two cryptocurrencies use a Proof-of-Work (PoW) consensus algorithm and, as such, face the same underlying energy problem.

Elon Musk: Dogecoin Wins Bitcoin

Despite using a PoW algorithm, Elon Musk continues to favor Dogecoin over Bitcoin. Responding to a tweet that covered some of the reasons why Musk easily chose DOGE over BTC, the billionaire CEO agreed that Dogecoin wins Bitcoin in many ways.

Comparing DOGE to BTC, Musk noted that “DOGE speeds up block time 10X, increases block size 10X & drops fee 100X. Then it wins hands down.”

Max Keiser: Who’s The Bigger Idiot?

As Elon Musk continues his lovey-dovey affair with Dogecoin, Bitcoin proponents continue to criticize the Dogefather.

Following Musk’s comments on Dogecoin today, popular Bitcoin advocate Max Keiser took to his Twitter page to ridicule the Tesla boss while recalling when gold bug Peter Schiff described Bitcoin as “intrinsically worthless” after he lost access to his BTC wallet.

“Who’s the bigger idiot?” Keiser asked.

Aside from Keiser, other Bitcoin proponents such as Michael Saylor replied to Tesla’s CEO:

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/bitcoin-proponents-against-elon-musk-following-heated-dogecoin-vs-bitcoin-tweets/

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ETH Developers Calculated How To Defuse The Difficulty Bomb

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ETH developers calculated how to defuse the difficulty bomb because if they leave it untreated, they will slow down the network as we can see more in our Ethereum news today.

Ethereum’s encoded difficulty bomb is set to explode this summer and James Hancock as well as Tim beiko said that the ETH developers calculated the time needed to delay the bomb and this could the last time the developers need to take that action. Ethereum developers agreed on Friday how to delay the difficulty bomb ad if that is left untreated, the entire network could be slowed down. The difficulty bomb is an old piece of code that makes mining on ETH slower and less profitable over time by increasing the lag between the production of blocks.

Ethereum 2.0 switches the network from proof of work as a way of validating transactions with powerful mining computers to Proo of Stake which rewards the ones that pledge the coins to the network. It takes an average of 13 seconds to mine a block on ETH right now and without delaying the bomb, it could take more than 20 seconds to validate the block by the end of the year. Ethereum developers agreed on how many blocks were quite necessary to delay the bomb until December. The calculation for the delay was proposed by the ETH core developers James Hancock as he said:

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“The bomb’s always there, and we defuse it by turning the blocktime back just for the bomb.”

block time
The block time chart on Etherscan. Annotated by James Hancock for Decrypt.

He later said that the proposal will delay the bomb by 9,700,000 blocks. Tim Beiko, the ETH core developer also said that the developers dismissed a proposal to delay the bomb next spring but that won’t be necessary. The developers expected that by December, the network will update to allow the ETH 1.0 the network that relies on PoW to communicate with ETH 2.0 as the new network relies on PoS and this is known as the Merge:

“If the Merge is ready by December, we won’t need to do anything about the bomb because we will move away from mining entirely.”

If the merge plans remain unimplemented, the Shanghai fork is expected to go live and will delay the bomb once again. The Bomb has been delayed three times so far.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.dcforecasts.com/ethereum-news/eth-developers-calculated-how-to-defuse-the-difficulty-bomb/

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