After a freefall that led to an almost $2000 drop, Bitcoin’s price is showing signs of stability. From a March vs. September BTC price action comparison chart, however, it’s possible that the pain is just beginning.
Why Did Bitcoin Price Crash Last Week?
Several possible reasons can be attributed to Bitcoin’s near 20 percent crash. Miner selloff is one of the strongest possibilities, as suggested by CryptoQuant. After the price drop, the on-chain/data provider shared statistics that pointed to big Bitcoin miners like Poolin, Slush, etc. offloading their BTC stash for cash on exchanges:
Miners are moving unusually large amounts of #BTC since yesterday. #Poolin, #Slush, #HaoBTC have taken the bitcoins out of the mining wallets and sent some to the exchange.https://t.co/NcLmXvZmOD pic.twitter.com/N3E3mX4QKn
— CryptoQuant (@cryptoquant_com) September 3, 2020
The Wall Street crash may have also triggered last week’s Bitcoin market selloff. Major US stock indices like the S&P 500, Nasdaq, and the Dow Jones Industrial Average nosedived significantly. Since BTC is closely correlated to stocks, the effect inadvertently trickled into crypto markets.
Traders and investors supposedly switched positions to cash from equities and BTC/crypto, following the US Dollar’s epic rally.
Comparison Chart Casts Signs of Trouble
A chart comparing the price action of Bitcoin during the Black Thursday crash in mid-March 2020 and the latest one reveals some worrying signs.
Back in March, the cryptocurrency market collapsed, as Bitcoin was reduced down to $3,600. Of course, it recovered fairly quickly alongside global stock markets. Yet, the sharp declines left many investors liquidated as no one imagined a steep decline of this magnitude.
Bitcoin is looking rather shaky and, at the time of this writing, it has dropped below the critical support of $10,000. There’s a CME gap below that’s waiting to be filled and many believe that this is where its price is headed.
Bullish Bias Also Exists
Although BTC price action does seem choppy at the time of writing, some crypto analysts think that the worst is behind us. Reputed analyst Josh Rager said that the latest crash was the biggest since March, something that was much required.
However, commenting on the possibility of Bitcoin’s dip to the $8500 level (around a 30 percent drop), Josh said it doesn’t look like that. Agreeing with the presence of strong support around the $10,000 mark, he said that BTC has fewer chances of closing down below $10k.
Yeah it would have to be a wick, I cant see price closing down there on teh weekly, intrada wick makes sense
— Josh Rager 📈 (@Josh_Rager) September 6, 2020
Facebook’s Libra Could Reportedly Arrive in January 2021 in a Scaled-Down Version
- Although Facebook failed to launch Libra in mid-2020 as initially planned, the social media giant could do so in early 2021.
- Finance Times cited three people working on the project claiming that Libra’s long-awaited launch could come in January 2021 but in a scaled-down version.
- CryptoPotato reported before that Libra already changed its original idea from being a “single global digital currency” to creating a series of various digital coins.
- The FT coverage asserted that Libra could see the light of day after receiving approval to operate as a payments service from the Swiss Financial Market Supervisory Authority (FINMA). However, the Libra Association would initially release just a single coin backed one-for-one by the dollar. The other set of currencies would be rolled out later, should the FINMA application is successful.
- Facebook rattled the financial world last year after announcing plans to launch its own cryptocurrency called Libra. After receiving scrutiny from world watchdogs, the Libra project underwent numerous changes, including executive replacements.
- Libra suffered more blows when several notable partners left. Those included PayPal, Mastercard, eBay, Vodafone, and more.
- In an attempt to salvage the project, the Association decided to make further changes by renaming Libra’s wallet provider from Calibra to Novi.
Featured Image Courtesy of AlJazeera
B2BinPay Adds LINK to the List of Available Cryptocurrencies
B2BinPay platform makes it possible for enterprises to accept, receive, store, and send Chainlink coins, enlarging the list of available cryptocurrencies.
The majority of smart-contracts trying to replace stocks, insurance services, and other traditional financial agreements need to obtain access to several sources outside the blockchain. Chainlink offers such intermediaries to connect smart-contracts with payment and even traditional banking solutions. LINK is a cryptocurrency used within the ecosystem.
This crypto was launched in 2017, and its initial price was only $0.19 per » Read more
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin. The year 2020 witnessed the real boom – the LINK price has skyrocketed by 550%, while its Return On Investment index is 6 776%. The crypto entered the top-10 ranking according to the market capitalization, and the 24 hours trading volumes are among the top-10 highest indexes. What else should investors know about this promising asset?
- According to the experts, LINK is among the most progressive assets, while its price growth overruns the indexes of Bitcoin and top altcoins.
- The partnership with Google and Swift showed the digital asset is about to grow rapidly.
- The » Read more
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin has an “army of supporters” who influence the growth. According to The Block, the Chainlink network hosts about 1500 new LINK holders daily.
B2BinPay shows customers that the platform keeps up with the times, wishing to make services innovative and corresponding to the demands of all customers.
The Chainlink network attracted $32 million of investments, while its present-day market capitalization is $4.21 billion. The project is intended to revolutionize the Web3 world, bringing innovations to our life. Tens of projects have already joined this initiative; hence, LINK » Read more
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin is about to continue its way to new peaks.
B2BinPay and Chainlink have much in common. Both are interested in innovations and making the world better.
Customers are now able to receive and send LINK coins from their enterprises’ wallets. Furthermore, enterprises may easily exchange LINKs to other digital assets with the most beneficial fees.
B2BinPay customers obtain a convenient, safe, and secure way to connect the crypto world. The platform is innovation-friendly and user-friendly; hence, clients may select one of eight available languages to make the interface the most understandable. Digitalization is something that has already come, and B2BinPay becomes a firm bridge to enter that brave new world!
Yearn Finance (YFI) Climbs 16% Despite Crypto Bloodbath Elsewhere
Yearn Finance’s YFI rose by up to 16 percent in just two days of trading, even though its peers across the cryptocurrency market bled.
The decentralized finance token formed an intraday high at $25,858 in the early trading session in London. At its weekly low, the YFI/USD exchange rate was as low as $17,605, according to data fetched from the Binance crypto exchange.
The pair showed signs of recovering after Yearn Finance announced its merger with Pickle Finance, marking a one-of-its-kind partnership between two decentralized finance projects. Pickle Finance is a yield-farming project that strives to maintain stablecoins’ pegs.
Two days after the merger, Yearn Finance announced a similar partnership with Cream, a decentralized lending protocol running atop the Ethereum blockchain. A day later — on Friday — rumors began circulating that the Yearn Finance founder Andre Cronje is also looking to merge (or acquire?) decentralized exchange SushiSwap.
The DEX’s native token SUSHI jumped 17 percent on the news.
Andre Cronje is staking over $800k worth of $SUSHI
— LilMoonLambo 🚀 (@LilMoonLambo) November 27, 2020
A couple of skeptics criticized Mr. Cronje for unilaterally signing new partnerships without calling for a governance vote among YFI holders. Nevertheless, most of the Yearn Finance community ignored the criticism as they silently showed their support to anything that grows the YFI ecosystem.
Some of the cheerful ones called Yearn Finance, the first emerging “conglomerate of DeFi.” That also explained why YFI made a comeback recovery in a week that saw even top cryptocurrency tokens waver. The token served as a hyped hedge — at best.
“Acquiring” full projects (for 0 YFI) instead of building to drive new functionality,” commented Tom Shaughnessy, the co-founder of Delphi Digital, an investment research firm. “While LT value cap for acquired tokens may currently be TBD, acquiring their devs/projects/liquidity is great for YFI long term.”
YFI Trade Setup
Technically, YFI appeared in a short-term corrective trend, especially after rallying 338 percent from its early-November nadir at $7,015. In the wake of its latest mergers, the DeFi token expects to resume its upside move in the sessions ahead, providing it maintains support above certain price floors.
Yearn Finance posts gains in choppy trading sessions. Source: YFIUSD on TradingView.com
The first is the area between $14,729-$18,761 that has a historical significance as both resistance and support. If YFI/USD breaks below the said range, then it risks dismantling its entire upside move by targeting price targets below $12,000.
But thanks to its fundamental outlook, as confirmed by Mr. Shaughnessy, the YFI may still have enough fuel to locate support above the $14,729-$18,761 range. Should it happen, YFI will be eyeing a retest of $30,000.