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Bitcoin Uptrend From $20K Has Been Lost According To Parabolic Indicator

Bitcoin price is still trading well above $30,000 after a nearly $5,000 retreat from highs set at the turn of the new year. But during the first decent-sized correction in the cryptocurrency since $20,000 was broken, one “parabolic” indicator could be suggesting that the daily uptrend has been lost. Here’s a closer look at the […]

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Bitcoin price is still trading well above $30,000 after a nearly $5,000 retreat from highs set at the turn of the new year. But during the first decent-sized correction in the cryptocurrency since $20,000 was broken, one “parabolic” indicator could be suggesting that the daily uptrend has been lost.

Here’s a closer look at the Parabolic SAR indicator and what it currently says about the first-ever cryptocurrency and if its unstoppable rally will continue.

Bitcoin Daily Uptrend Possibly Finished For Now, According To Parabolic SAR

When Bitcoin touched down to $3,800 on Black Thursday, retesting its » Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market bottom and confirming it as resistance turned support, it gave bullish investors all the confidence in the world that the cryptocurrency had staying power.

If that frightening day didn’t shake out holders, then nothing would. Since then, BTC has been moving off of exchanges, and the digital gold narrative has taken over the world of finance.

Related Reading | Bitcoin Closes 2020 As Best Performing Asset Of The Last Decade

In addition to retail FOMO picking back up, institutions are now buying Bitcoin with everything they’ve got – suddenly interested in the asset to protect and store their vast wealth.

All that wealth pouring in before the price per BTC rises too high, has caused the cryptocurrency in just one year rise from $3,800 to just under $30,000 in 2020. The moment the New Year turned, the cryptocurrency added another nearly $5,000 in less than five days.

But as of last night, the asset’s deepest correction began, and it possibly ended Bitcoin’s uptrend on daily timeframes, according to the Parabolic SAR indicator.

bitcoin parabolic sar

The Parabolic SAR indicator has been hit on daily timeframes | Source: BTCUSD on TradingView.com

Not So Fast: Breakdown Of Daily Parabola Leaves High Timeframe Momentum In Tact

The Parabolic SAR (stop-and-reverse) indicator lives up to its name by potentially spotting when an asset’s parabola has stopped and reversed.

In the image above, the red wick on the nasty daily BTCUSD candle touched the SAR dot below the price action, causing a new SAR to appear above. When this happens, it typically suggests the trend is about to reverse.

The tool has been described as up to 80% accurate, and it is also helpful for traders seeking to employ a trailing stop loss strategy, where stop losses are moved higher and higher in profit just below each SAR dot. When the price action comes back down and stops out the trade, the trader is profitable and can rest assured they were stopped out at a point where the trend was ending anyway.

But like all indicators, their use doesn’t only apply to daily timeframes, and on weekly and monthly timeframes, the uptrend is at very little risk at current prices.

Related Reading | Analyst: Bitcoin Parabolic Trend Is “Close To A Breakdown”

On weekly timeframes, for the parabola to be violated, Bitcoin must pass below roughly $22,000. For the monthly uptrend to conclude, price action must retrace to as low as $6,100 before having to worry about another long-term » Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear phase.

With those numbers so low, it is difficult to imagine them being reached any time soon. And with high timeframe signals the most dominant, even a short-term retrace on daily timeframes, won’t damage the integrity of the greater bull market.

It is worth noting that the Parabolic SAR indicator rises as price does, so these figures will change depending on which way the cryptocurrency trends next.

To consider the daily uptrend to be resumed, Bitcoin will need to take out $34,750 and keep to keep trucking higher from there.

Featured image from Deposit Photos, Charts from TradingView.com

Source: https://www.newsbtc.com/analysis/btc/bitcoin-uptrend-from-20k-has-been-lost-according-to-parabolic-indicator/

Blockchain

EOS, BAT, Dogecoin Price Analysis: 16 January

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EOS‘s market noted some bearish presence, with the same likely to push the crypto’s price slightly south towards $2.6. Basic Attention Token appeared to break out of a range backed by significant trading volume, while Dogecoin was in a phase of consolidation and traded sideways on the charts with no strong momentum.

EOS

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: EOS/USDT on TradingView

The RSI floated just under the neutral 50 value, unable to rise above and likely indicative of a downtrend to come. The price, more importantly, flipped the $2.73-level to support recently and attempted a surge towards the next level of resistance at $3.

This session (cyan) saw the market’s bulls drive prices as high as $2.93, but the bears stepped in and pushed the price down to test the support at $2.6. This highlighted a lack of bullish strength.

Their presence in the market is poised to be highlighted once more. It can be expected that EOS would slowly descend towards $2.6 once more. If it does not hold as support, the price could drop to $2.44 in the coming days.

In other news, Arca CIO Jeff Dorman tweeted that EOS could be undervalued due to its massive BTC holdings.

Basic Attention Token [BAT]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: BAT/USD on TradingView

The range between $0.27 and $0.2 is one that BAT has traded within since late November. On the 6-hour charts, it appeared that BAT was headed for a breakout above this range. The trading volume for the most recent session before press time was extraordinary, pointing towards market conviction.

The MACD formed a bullish crossover and rose above zero to highlight bullish momentum. However, the $0.292-mark continued to be a thorn in the side of bulls and can be expected to stall the rise of BAT’s price.

Another rejection at $0.292 could see BAT tumble sharply back within the range it was trading within.

Dogecoin [DOGE]

EOS, BAT, Dogecoin Price Analysis: 16 January

Source: DOGE/USDT on TradingView

After its explosive move from $0.0045 to $0.01, DOGE spent the past few weeks in a phase of consolidation. Using the swing high and low of this phase for DOGE, and Gann’s rule of eight, some potential levels of support and resistance (yellow) can be plotted on the charts.

It can be seen that DOGE has respected these levels. The Awesome Oscillator showed a lack of definitive momentum in either direction for DOGE.

Source: https://ambcrypto.com/eos-bat-dogecoin-price-analysis-16-january

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Blockchain

Demand for Ethereum hits rooftop, price could quadruple within 90 days

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Upcoming ETH Futures And Increased Interest From Institutional Investors Will See Ethereum Hit $10K - Pundit Predicts

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Bitcoin bulls are calling $50,000 for the next rally. Ethereum bulls are also just as optimistic, as fundamental indicators are looking as promising as technical indicators. These key signals imply that a bullish rally, despite price stagnation is imminent and includes the sky-high demand for Ethereum’s ETH, which analysts claim will unseat supply in the coming weeks. To get the point across, analysts noted how Bitcoin’s price quadrupled within a three months period (November 2020 to January 2021) when demand toppled supply.

In the last 48 hours, Ethereum has sustained losses of 8.5%. The drop in prices was triggered by whale activities, reflected in the exit of ETH worth $2.4 billion from the Bitfinex exchange.

DeFi still remains one of Ethereum’s most promising ventures. At press time, locked in value has hit $23.22 billion. But Ethereum’s DeFi industry is still in its early stages, hence market maturation is still at its beginning state. “The DeFi market is still severely undervalued,” says analyst Joseph Young. Making up a large fraction of the entire digital currency market, he touches on DeFi’s astounding market cap.

“The total market cap of all DeFi tokens (even including Chainlink) is $25.7 billion. XRP and LTC and ADA will result in $31 billion.” 

Decentralized futures, still in the early stages but just as bullish is already processing millions of dollars in daily transactions. Young noted this in a preceding tweet as quoted below ;

“Decentralized futures exchanges on Ethereum are also seeing fast growth. Perpetual Protocol, for instance, is processing $50 million PER DAY.”

Meanwhile, on the technical charts, Ethereum seems to be replenishing its 7 days losses with reverse daily gains of 12% at the time of this report. However, the second most valued digital asset may need more to break above the $1,350 resistance level. Within the last few days, it has become evident that the strong price rejection around said resistance is still ongoing. 

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Demand for Ethereum hits rooftop, price could quadruple within 90 days
ETHUSD Chart By TradingView

Ethereum bulls have been knocked back down on several occasions. And the bearish momentum had successfully managed to suppress ETH to a low of $994. At press time price of $1,209, ETH bulls will need to build enough momentum to retest $1,350 resistance or risk testing $880 support levels.

A bullish price reversal is still being anticipated by analysts who opine that LINK, DOT, and ETH will pioneer the altcoin season.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/demand-for-ethereum-hits-rooftop-price-could-quadruple-within-90-days/

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Blockchain

Polkadot surpasses XRP to grab the 4th slot

TL; DR Breakdown Polkadot (DOT) is now the 4th largest crypto by market cap XRP could suffer a catastrophic blow if ruled a security The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been […]

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TL; DR Breakdown

  • Polkadot (DOT) is now the 4th largest crypto by market cap
  • XRP could suffer a catastrophic blow if ruled a security

The crypto market is shifting again, and this time, the charts are re-arranging as Polkadot moves up by one position. The top 10 largest cryptos (by market cap) have always been a good point of reference when it comes to market movements. Now, it seems like XRP is getting stripped of its position, a spot now occupied by Polkadot (DOT).

The last few days have been a huge challenge for XRP as it battles the negative effects resulting from the current lawsuit facing its creator company, Ripple. A quick glance at the running market placements reveals that XRP price has been losing ground while other cryptos like Polkadot have been scoring gains each day.

Polkadot (DOT) has been thriving

In the past 7 days, Polkadot has surged by over 64%, putting the price at around $15 – according to information on CoinMarketCap. Over the same period, XRP has dropped by 10% to put the price at around $0.28. As a result, Polkadot has been gaining traction both in popularity and relative acceptance as an interoperability protocol designed to facilitate multi-chain operations. The network uses DOT as its native crypto token which users can use to vote on issues concerning the network’s governance.  

Polkadot surpasses XRP to grab the 4th slot 1
Polkadot

Currently, DOT has posted an impressive Market Cap totaling $13.4 billion as opposed to XRP’s $12.7 billion, effectively making it the 4th largest crypto by market cap. That’s after Tether (3rd place at $24.29 billion), Ethereum (second place at $135.3 billion), and Bitcoin (first place at $681.6 billion).

XRP facing an existential threat

For some years, Ripple has been lobbying to get XRP ratified as a cryptocurrency as opposed to the views of some who see it as a security. These efforts seem to have somehow back-fired as the US SEC moved to file a suit against Ripple and its top management back in December 2020. According to SEC, Ripple has been illegally transacting with XRP, which SEC sees as a security. The accused include Ripple’s CEO Brad Garlinghouse, co-founder and Executive Chairman Chris Larsen, and Ripple Labs itself.

The suit has led to investors like Grayscale ditching XRP. Some crypto exchanges suspending XRP from their trading platforms, while others have moved to delist it altogether. The latest to take action is Kraken.

These developments are in no way in favor of XRP, and they could cause a lasting effect on its market standings. If XRP is ruled a security, it will cease to exist as a crypto and ultimately end its streak as one of the most popular digital tokens backed by the might of a global company.

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