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Bitcoin price prediction: Dead cat bounce from $29k worries BTC bulls

Bitcoin price prediction oscillates from bullish to bearish BTC/USD touches $29,000 low amid bearish price action Bitcoin holds onto key trendline and the daily support at $30,000 Rangebound price movement is slowly grinding south with $32,686 as resistance TL;DR Breakdown Bitcoin price prediction is all but bearish, with the slideways movement opening up lower support […]

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  • Bitcoin price prediction oscillates from bullish to bearish
  • BTC/USD touches $29,000 low amid bearish price action
  • Bitcoin holds onto key trendline and the daily support at $30,000
  • Rangebound price movement is slowly grinding south with $32,686 as resistance
Bitcoin price prediction: Dead cat bounce from $29k worries BTC bulls 1
Cryptocurrency heat map by Coin360

TL;DR Breakdown

Bitcoin price prediction is all but bearish, with the slideways movement opening up lower support levels. The traders’ aggressive profit booking on higher levels past $34,000 is pushing BTC/USD lower again. The investors are reconsidering their long-term strategies as the weekend approaches since the current correction may extend as per technical indicators.

The sharp drop below the $30,000 level to touch $29,000 support also shows that large investors may have dumped their long BTC positions. Institutional inflows have been instrumental in bringing up BTC/USD to the current elevated levels within a year. Any bad omen from large institutional investors can turn the price over its head. Derivatives and aggressively leveraged traders may face headwinds if the bearish rally extends.

There has been buying at lower levels, especially at $29,000 fall, which has propped up the price. At the time of writing, BTC/USD pair is trading at $32,709. The bulls are trying to regain control of $33,000 resistance after the recent lows. Technical indicators, including RSI and MACD, do not support any aggressive bullish moves on the charts, though.

Bitcoin price movement in the last 24 hours – outflows threaten BTC long positions

CryptoQuant data shows that large BTC pools are experiencing excess BTC outflows. Also, outflows may not always reflect the dumping of positions. But in the current situation, large-scale profit booking cannot be ruled out. Inventory reorganization may also trigger a reduction in BTC holdings. Such figures do show that the BTC market is changing.

In the last 24 hours, Bitcoin price prediction swung wildly as the pair touched $28,800 low only to rise again to $33,000 level. Bitcoin is displaying a typical ‘dead cat bounce’ pattern where the asset is undergoing a bearish phase. Chances of a bullish trend reversal look bleak since the buying at lower levels is insignificant right now.

The price is trading well below the 20-day exponential moving average, which lies above at $34,150. The rangebound Bitcoin price prediction is trending towards the lower end of the shrinking Bollinger Bands. The bulls have been unable to push BTC/USD back above the symmetrical triangle. It does show that there is some demand at higher price levels. Today bears restarted the selling session near the 20-day EMA to break bullish resolve and weaken the buying momentum.

BTC/USD 4-hour chart – Red candles paint a bleak picture

Bitcoin price prediction: Dead cat bounce from $29k worries BTC bulls 2
Bitcoin price chart by TradingView

The 50-day simple moving average is the next support at $28,103. However, successive selling sprees by the bears will threaten any upward movement beyond the $33,780 level. If the pair is rejected once again from the 20-day EMA at $34,100, the pair won’t likely recover to fresh highs anytime soon. The sentiment will shift from buy to sell on highs.

Any sharp breakout below the 50-day simple moving average can further intensify the selling rallies, which can see the price plummet through $22,100 support. The 61.8 percent Fibonacci retracement of the current bull rally lies at $22,110. Although unlikely, this massive support will prevent any untoward bearish movement on the weekly charts of Bitcoin price prediction.

The higher resistance at $34,000, where the 20-day EMA resides, will have to be pierced confidently on the bullish side. The bulls must create suitable momentum along with sufficient volumes to get the uptrend going. In case the price breaks above the 20-day EMA, chances are that price will travel to $40,000 level without much resistance.

The MACD crossover is relatively weak right now to support any massive bull rallies. The RSI stands at 43, meaning there is a fair amount of room down south for the price. The Bitcoin price prediction now relies on the next signal from either bulls or the bears, although bears have the upper hand.

Bitcoin price prediction conclusion – Will BTC/USD cross $34,000?

The 20-day SMA is now sloping southwards, meaning the price is under headwinds. Bears will likely intensify the selling over the weekend. The price is going to find significant support at $30,000 and then at $29,000 initially. However, thin liquidity on the weekend will ensure that the price can undergo wild movements on either side.

Volatility is relatively low compared to recent bull rally periods. The sell-off will intensify once the price crosses $28,000 support, which will invite fresh short positions. Right now, the price is trying to enter a consolidating range. Bitcoin price prediction remains volatile over the weekend.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Blockchain

Polkadot Gears Up for Parachains Launch: Unveils ‘Common Good’ Parachains

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Polkadot, the interoperable blockchain protocol spearheaded by Ethereum co-founder Gavin Wood, has announced its forthcoming parachain launch.

Parachains – application-specific blockchains that connect to the main network and benefit from its security and computing capacity – are viewed as the building block of Polkadot’s ecosystem. Initially, the plan was for 100 parachain slots, with an auction process determining who gets to ‘lease’ parachains for defined time periods.

However, according to a blog post published by the team on February 25, some slots will be made available for ‘governance-allocated parachains,’ also known as common good parachains. These common good parachains have been conceived to address the so-called “free rider” problem, wherein parachains can forgo contributing to elements (such as bridges) that may benefit the ecosystem as a whole.

Solving the Free-rider Problem

The free-rider problem is best understood with reference to an analogy. Supposing a levy is imposed on car manufacturers to offset pollution: in turn, vehicles’ cost is increased, and all drivers are forced to pay extra.

Although everyone will subsequently benefit from a less toxic atmosphere, only those who actually buy a car will have contributed: the others (cyclists, for example) are considered free riders.

Polkadot’s governance process will essentially earmark parachain slots for consideration outwith the auction process, with a Council and Technical Committee representing passive stakeholders and supplying technical guidance. Both groups will then decide whether to accept or reject the direct registration of certain parachains.

According to the blog post, both system-level chains and public-utility chains may emerge as blockchain categories that qualify as common good chains.

Any parachain, in other words, that the Polkadot team deem beneficial for the overall ecosystem – bridges, identity projects, and smart contract platforms and governance would all theoretically be under consideration.

Chains that help remove transactions from the Relay Chain and enable more efficient parachain processing seem the likeliest to be considered ‘common good.’

As noted in Polkadot’s blogpost:

“By allocating a subset of parachain slots to common good chains, the entire network can realize the benefit of valuable parachains that would otherwise be underfunded due to the free-rider problem.

Polkadot’s governance system is on the bleeding edge of social coordination and it will be exciting to see how it helps the network evolve to meet the needs of its constituent parachains and stakeholders.”

Polkadot Gears Up for Parachain Launch

The Polkadot team recently published a roadmap noting that all upcoming parachains will be tested on regular parachain testnets, like Rococo and on Kusama Network. The latter being Polkadot’s canary network.

Kusama is a proving ground for parachains, allowing developers to build and deploy them and experiment with Polkadot’s governance, staking, nomination, and validation functionality.

Once parachains are live, community members will have their say on which additional features and network upgrades should be incorporated over time.

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Source: https://cryptopotato.com/polkadot-gears-up-for-parachains-launch-unveils-common-good-parachains/

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Blockchain

Cardano Price Analysis: 28 February

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While a majority of the assets are still trying to recover from the recent price drop, Cardano managed to record a new all-time high over the past week. Clocking in a value of $1.48 yesterday, Cardano is currently one of the top three assets in the world and while the asset has registered a 10% drop over the past few hours, it has maintained its 3rd position with a market cap of $38 billion.

Cardano 6-hour chart

Source: ADA/USD on Trading View

The 6-hour chart of Cardano continued to indicate a rising price but the asset was moving within the trendlines of an ascending channel. With a couple of higher highs witnessed, the asset has dipped over the past 24-hours, and the correction may go even further in the charts. A bearish breakout should allow the asset to recover its position at a previously held range before addressing the higher range again in the future.

At press time, the 50-day Moving Average has continued to act as underlying support but a possible move below $1.12 is likely.

According to the VPVR range, the support range at $0.90-$0.95 could be tested since the trading volume at the price point has been significant over the past few weeks.

Market Indicators

Source: ADA/USD on Trading View

Market Indicators appeared a little on the neutral side at press time but considering the pattern was bearish, the indicators may head in the same direction.

Relative Strength Index or RSI is currently holding a position above 50 but the indicator suggested an increasing selling pressure in the chart. Stochastic RSI is exhibiting a bearish pullback at press time, with the signal line hovering the bullish line.

MACD appeared bullish at press time, but a potential trend reversal is in the charts, with the MACD line converging towards the bearish line.

Important levels to watch out for

Resistance: $1.48
Support: $1.30, $0.92-$0.90
Entry Position for Short: $1.325
Stop-Loss: $1.48
Take Profit: $0.90-$0.92
Risk/Reward Ratio: 2.43x

Conclusion 

Cardano’s price action has been within the ascending channel formation and a bearish breakout in the coming week should not be discounted.


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Source: https://ambcrypto.com/cardano-price-analysis-28-february

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Blockchain

Bitcoin Cash, Uniswap, Zcash Price Analysis: 28 February

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Bitcoin Cash looked uncertain to flip its press time resistance as the indicators gave mixed signals regarding its future trajectory. Uniswap could move southbound from its descending triangle pattern as momentum rose on the selling side. Zcash showed some indecision in its market as the price continued to trade within a range, with a breakout unlikely over the coming sessions.

Bitcoin Cash [BCH]

Source: BCH/USD, TradingView

With weekly losses of over 33%, Bitcoin Cash slipped to the 12th position on the crypto-rankings with a market cap of $8.6 billion. On the 4-hour timeframe, the price slipped below $464 support but the bulls eyed a comeback on the charts. The RSI avoided the oversold territory but pointed lower from the 35-mark at the time of writing. The MACD was bullish-neutral as the fast-moving line floated just above the Signal line.

It was doubtful whether the aforementioned resistance mark could be flipped over the next few sessions as trading volumes and buying activity remained muted.

Uniswap [UNI]

Source: UNI/USD, TradingView

A descending triangle formed on Uniswap’s 4-hour chart after the price formed lower highs post record levels. Prices usually tend to break downwards from this pattern on low trading volumes. The Awesome Oscillator showed that momentum rested with the selling side as the red bars rose below the half-line. A fall below the lower trendline could see UNI move towards the $15 mark.

The Stochastic RSI disagreed with the AO and suggested that UNI could be up for some gains after a bullish crossover in the oversold zone. However, a move above the upper trendline was unlikely considering the state of the broader market.

Zcash [ZEC]

Source: ZEC/USD, TradingView

Zcash continued to move within a fixed channel on the 4-hour chart as equilibrium was maintained between the buyers and sellers. The Bollinger Bands also reflected the consolidation as volatility remained low in the market. The MACD line was superimposed on the signal line, reflecting the indecision in the market.

However, a sharp move in either direction could see the market tilt strongly in the favor of the side that enforces the breakout. A bullish scenario could see ZEC move towards the next resistance mark at $138.4. Conversely, a fall could see the price move towards $98.1 support.


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Source: https://ambcrypto.com/bitcoin-cash-uniswap-zcash-price-analysis-28-february

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