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Here’s why Bitcoin could be heading towards $45,000

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With Bitcoin‘s price breaching the $50,000-mark over the last 24-36 hours, many believe the world’s largest cryptocurrency has fully recovered from the depreciation that saw BTC drop from over $56,000 to under $47,000. However, it’s worth noting that the dip in Bitcoin’s price also coincided with a surge in Bitcoin’s Open Interest, something that has emerged as somewhat of a trend over the last few market cycles.

With the Open Interest in Bitcoin Futures above $15 million, there is a distinct possibility that this is a bearish signal for Bitcoin’s price. In fact, with the cryptocurrency dropping below $50k at the time of writing, this just seemed all the more likely.

Bitcoin futures open interest signal drop below $45000?

Source: The Block

Based on the chart representing Aggregate Open Interest in Bitcoin Futures, the last time Open Interest hit a high, it was reflected in the price drop, including a drop of nearly 10% in a single day. If something similar happens again, then the price may drop below $45,000, based on the cryptocurrency’s press time price action.

Here, a valuation of $45,000 would be an important psychological level for Bitcoin’s price. Coupled with the fact that BTC’s price has historically dropped in March, nearly every year since 2013, it is likely that the two may have a negative impact on the cryptocurrency’s valuation, recovery from which might even take a month.

It’s also worth noting that Plan B’s S2F and its target for Bitcoin’s price do not have a clear prediction for the number of corrections or dips it will see, before hitting $100,000.

On the contrary, according to a recent tweet by Upstream Data Inc’s Steve, Bitcoin reverses the Cantillon Effect and therefore, we can expect central banks to retreat to a gold standard, then obsolescence, governments to shrink, mass elite insolvency/write-downs, the fracturing of megacorps, and renaissance of small businesses and family wealth.

Though this may be more of a long-term impact of Bitcoin, one or more of these factors may have an impact on Bitcoin’s price in the short-term. Change in the policy of central banks, for instance, or mass elite insolvencies, may lead to a hike in Bitcoin’s price after corrections have mellowed down.

Apart from the S2F model’s predictions and lists of such factors that may positively influence Bitcoin’s price, most predictions are bearish in the short-term. In conclusion, Open Interest, among other factors like transaction volume, demand on spot exchanges, and institutional demand, suggests that the price may drop below $45,000 or lower in the short-term.


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Source: https://ambcrypto.com/heres-why-bitcoin-could-be-heading-towards-45000

Blockchain

Solana (SOL) price rises as airdrops attract new users to the network

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Over the past six months blockchain projects that have issued token airdrops have re-emerged. Most notably, the airdrops by Uniswap (UNI) and MEME will be remembered as recipients were rewarded with gains ranging from $20,000 to $600,000 simply for holding the tokens.

One Ethereum (ETH) competitor that has seen numerous projects launch with airdrops in the past three weeks is Solana (SOL), an open-source project that focuses on utilizing blockchain technology to provide decentralized finance solutions.

While Solana isn’t explicitly making a concerted effort to launch these projects, the protocol’s main decentralized exchange Serum (SRM) was responsible for the recent COPE airdrop which distributed 2,000 tokens to users who participated in the joint DeFi hackathon held by Solana and Serum.

After the airdrop, COPE eventually listed on Serum for $0.50 on March 30 and the price of the token surged to a high of $5.43 on April 11, rewarding holders with a $10,860 reward.

SOL/USDT 4-hour chart. Source: TradingView

The success of the COPE airdrop prompted a series of token launches and airdrops with similar-sounding names including HOPE, ROPE and KOPE, whose launches on the Solana blockchain have coincided with a 55% rise in the price of SOL since the start of April.

Airdrops on the network may have played a small role in the recent price appreciation due to users needing SOL to receive airdropped tokens but this is not possible to ascertain based on the available data.

Interactions on the Solana blockchain, including the addition of new tokens to the Sollet wallet, require small amounts of SOL to complete the contract executions. Thus, users rushing to sign up for airdrops before they filled up would have needed to purchase SOL and fund their wallets in order to create new addresses for the airdropped tokens.

Analysts expect the airdrop trend to continue

For those worried that they missed out or that the ‘airdrop season’ is over, a recent tweet from Solana’s Twitter feed suggests that the Solana ecosystem is just getting started, meaning the likelihood of future airdrops remains high.

New users are the lifeblood of successful blockchain networks, and the use of airdrops continues to be one of the most utilized methods for drawing attention to fledgling projects and sapping liquidity from one protocol to another.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/solana-sol-price-rises-as-airdrops-attract-new-users-to-the-network

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Why Bitcoin below $60K could be a great buying opportunity

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Bitcoin seems to be losing steam as it trades back and forth between $59,000 and $60,000. In the daily chart, BTC is moving sideways (0.3%) after a week with modest gains of 4.9%.

Bitcoin BTC BTCUSD
BTC moving sideways in the daily chart. Source: BTCUSD Tradingview

Trader Josh Rager has set support for BTC at $59,000. Holding this level could give it enough momentum to retest the $60,600 area. The trader expects “new highs” by Wednesday.

On-chain data seems to support this prediction, as shown by CryptoQuant shared by “Byzantine General”. BTC reserves for the spot market continue their downtrend and indicate a “consistent demand”. This trader said:

Except for those 2 inflow outliers most significant flows have been outflows. This massive consolidation range that we’re in sure looks a lot like re-accumulation.

Further evidence suggests that Bitcoin’s current price action is driven by institutions unlike the previous bull-run in 2017. Besides from Google search volume for “Bitcoin” is at a relatively low, Coinbase trading volume has skyrocketed since Q3 and Q4, 2020.

However, on this metric, the percentage of retail investors has trended downwards, as the following graph demonstrates. The trader said:

Last bull run we were talking about institutions coming, but now they’re actually here, and they’re buying.

Bitcoin BTC
Source: IntoTheBlock

Bitcoin 4 years cycles could change

On April 14, crypto exchange Coinbase will go public on the U.S. stock market. Under the ticker » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>COIN, the trading platform will be one of the first major crypto companies on the traditional market.

This moment converges with VISA testing stablecoins, PayPal expanding its crypto services, Tesla integrating Bitcoin as a payment method. The above could play an important role during this week as the 14th approaches. The trader said:

That doesn’t mean there won’t be any corrections anymore. Of course not, I mean we’ve seen three massive (liquidations) corrections this year alone. But, this bull run could be different. Maybe the 4 year cycle structure that we’re used to from bitcoin could break.

Two additional key metrics are the percentages of BTC trading above 1 Trillion USD market cap and the amount of BTC on exchanges. The former is estimated at 11% as BTC’s price trades above $53,000 which points to a “validation” of the current price, as stated by analyst William Clemente.

Bitcoin BTC
Source: Glassnode

On the latter, there is a correlation between the miners and long-term holders keeping their BTC and the increased supply outflow from the trading platform. Clemente added:

In combination with exchange withdrawals, supply is becoming increasingly illiquid. This means the new wave of institutional demand (just beginning) must compete for the mere 2.3M coins left on exchanges.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.newsbtc.com/news/why-bitcoin-below-60k-could-be-a-great-buying-opportunity/

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Reddit reminisces defunct ‘Bitcoin faucet’ website that gave away 19,700 BTC for free

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Reddit’s r/Cryptocurrency community revived an interesting piece of Bitcoin (BTC) history on Sunday, with a new thread reminiscing about the time that American software developer Gavin Andresen gave away 19,700 BTC. 

A thread started by “uGroundbreakingLack78” took the Reddit community all the way back to June 2010 when Andresen first launched the so-called Bitcoin faucet website. Using the domain “freebitcoins.appspot.com,” Andresen allowed users to earn 5 BTC per day just by solving a captcha, which is a program intended to distinguish human from machine input.

User “uGroundbreakingLack78” explained:

“To fuel the first faucet, Andresen loaded it with 1,100 BTC of his own. After these were given away, the faucet was reloaded, with early bitcoin miners and whales also donating coins.”

The faucet’s creator announced his “really dumb” idea of giving away free BTC on the now infamous Bitcointalk forum in a post that appeared June 11, 2010. His motivation: “[…] I want the Bitcoin project to succeed, and I think it is more likely to be a success if people can get a handful of coins to try it out.”

Andresen played a major role in development during Bitcoin’s formative days. He was the main software developer for BTC’s reference implementation, having joined the core development team in 2012 after Satoshi Nakamoto, Bitcoin’s pseudonymous founder, announced they would be leaving the project.

Although the Bitcoin faucet website is no longer functioning, a screengrab of the domain’s homepage revealed a very basic setup where users can earn BTC and set up their digital wallet. The Bitcoin faucet reportedly gave away 19,700 BTC to users just for solving a captcha. Those BTC are worth almost $1.2 billion at today’s prices.

The Bitcoin faucet website, as it appeared sometime in 2010. Image via Reddit

With Bitcoin in the midst of yet another bull market, many investors would love to get their hands on just 5 BTC. However, that’s easier said than done at current values. Given the apparent shortage of BTC on major exchanges, the flagship digital currency could be poised to go higher in the short term. On-chain data reveals that Bitcoin’s moonshot could still be months away, which means investors remain overwhelmingly bullish.

The Bitcoin price peaked just below $62,000 in mid-March before the rally paused and altcoins played catch-up. At current values, Bitcoin’s market capitalization exceeds $1 trillion. Major institutions and corporations have invested in the digital asset as a hedge against currency debasement, among other motivations.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/reddit-reminisces-defunct-bitcoin-faucet-website-that-gave-away-19-700-btc-for-free

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