Strong hands view a correction in an uptrend as a buying opportunity and data from CryptoQuant shows that Bitcoin (BTC) whales have been buying near $48,000. This activity can be seen in the large Coinbase outflows, most of which went to custody wallets and this suggests that the institutional investors believe the Bitcoin rally has room to run.
Even Kraken CEO Jesse Powell is ultra bullish on Bitcoin. In a recent interview with Bloomberg TV, Powell said that Bitcoin could reach $1 million over the next ten years if the digital asset overtakes gold as a store of value.
While Bitcoin price bounces between the $47,000 to $51,000 range, non-fungible tokens (NFT) have been taking off and appear to be competing with the DeFi sector in terms of transaction volumes and token appreciation. NFTs from popular artists are being snatched up in minutes, which shows a strong appetite from the users. Along with the artwork, sports-oriented collectible NFTs are also quickly gaining in popularity.
Let’s analyze the fundamentals of a few NFT projects to determine whether the rally is on the verge of topping out or if there is room for further extension.
Blockchain sports venture Chiliz (CHZ) has years of experience in dealing with fan tokens of some of the most popular soccer clubs in Europe. In late 2020 the firm announced a partnership with Binance in and since then Chiliz has listed ACM Fan Token for popular soccer club AC Milan. The listing generated $6 million in revenue in a short time and Chiliz recently announced that it had partnered with 23 sporting and esports organizations to launch more Fan Tokens.
Chiliz has also announced plans to expand its operations in the United States. The firm’s CEO Alexandre Dreyfus told Cointelegraph that an office will be set up in New York and the company plans to work with local leagues and sports franchises.
If Chiliz can onboard some of the popular sports teams from the U.S., it could give a major boost to the company. Dreyfus said that the firm is aiming to double the $30 million it had shared with its partners last year.
If Chiliz’s discussions with Formula One and e-sports teams turn out to be favorable, it may further boost growth.
CHZ has skyrocketed from an intraday low at $0.032468 on Feb. 23 to an intraday high at $0.155004 today, a 377% increase in less than a week. This sharp up-move has pushed the relative strength index (RSI) above 89, indicating the rally is overbought in the short term. This could result in a correction or consolidation in the next few days.
The first support on the downside is the 38.2% Fibonacci retracement level at $0.108195. If the price rebounds off this support, it will suggest that bulls are buying the minor pullbacks and not waiting for a deeper correction to enter.
If the bulls can then push the price above $0.155004, the CHZ/USD pair could resume its uptrend and rally to $0.230731.
Conversely, if the bears sink the price below $0.108195, the pair could drop to the 50% retracement at $0.093736 and then to the 61.8% retracement at $0.079277. Such a deep fall will suggest that the momentum has weakened.
The pair could then remain range-bound for a few days before starting the next trending move.
Since the 1920s sports fans have traded the cards of their favorite players, and ultra-rare cards have a tendency to sell for astronomical amounts. However, in this digital age, physical cards may play second fiddle to sports NFTs. Take, for example, NBA Top Shot, a marketplace built on Dapper Labs’ Flow (FLOW) blockchain, that has registered over $230 million in sales in the last few months.
The NFT craze is showing no signs of slowing down and an NFT drop by veteran digital artist Ben Mauro on VIV3, the first global marketplace on Flow blockchain, generated $2 million as the art pieces sold out in just seven minutes.
Recently OpenSea, the largest marketplace for NFTS, announced that it will integrate Flow blockchain into its platform to create a massive open economy for digital collectibles.
Flow also hosts UFC and Dr. Seuss digital collectibles and the upcoming mainnet launch could attract more developers, artists and investors to the platform.
FLOW has been in a strong uptrend since end January. The token picked up momentum and surged from an intraday low at $18.379 on Feb. 26 to an intraday high at $41.275 today, a 124% rally in a week.
The sharp up-move of the past few days has pushed the RSI deep into overbought territory, which suggests the market may be overheating in the short term. The long wick on March 3 and today’s candlestick suggests traders are booking profits on rallies.
Any pullback from the current levels could find support near $30. If the price can rebound off this level, it will suggest strength. The FLOW/USD pair could then rally to the psychological resistance at $50.
This bullish view will invalidate if the price turns down and breaks below the 20-day EMA ($22.58). Such a move will suggest that the markets have rejected the latest leg of the rally.
One of the major drawbacks of using technology is that it robs users of their privacy. Almost every activity on the internet user is being tracked by technology companies that analyze users’ behavior and sell the data for a profit. However, with the rise of blockchain technology, users are becoming more in control of their privacy again and also having more choice over what personal details they want to share.
The Brave web browser has grown in popularity in 2020 as its daily active user base has risen from $3.8 million to 8.6 million last year. Along with this, the number of verified content creators who receive rewards in the form of Basic Attention Token (BAT) for their work has also surged over one million. As the user base increases, it provides more power to the community as advertisers can no longer ignore them.
The search engine is an important part of any web browser and Brave’s acquisition of Tailcat, an open-source search engine, will help the project reduce its reliance on the current search engines that primarily depend on the results from Big Tech companies. Brave CEO and co-founder Brendan Eich told Cointelegraph that the company is likely to launch Brave Search by summer 2021. If successful, the new search engine could open a plethora of opportunities for BAT.
In its “Roadmap 2.0” Brave outlined a plan to integrate a DEX aggregator and NFT support in its new Ethereum-native wallet. To tackle the high fees on the Ethereum network, Brave is exploring layer-one and layer-two scaling solutions. The recent steps taken by the company hugely increase the use case for BAT.
BAT picked up momentum in the past few days and rallied from an intraday low at $0.3945 on Feb. 23 to an intraday high at $0.8412 on March 3, a 113% rally within a short time. However, the token is currently facing profit-booking from traders.
The BAT/USD pair has strong support at the 38.2% Fibonacci retracement level ($0.6706) and below it at the 50% retracement level ($0.6179). If the pair rises from either support, it will suggest that traders continue to buy the dips. The upsloping moving averages and the RSI above 62 suggest th bulls have the upper hand.
Contrary to this assumption, if the bears sink the price below $0.6179, the pair could drop to the 20-day EMA ($0.56). A bounce off this support could keep the pair range-bound for a few days. If the 20-day EMA support cracks, then a possible fall to the 50-day SMA ($0.43) is on the cards.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Bitcoin At $100,000: Estimating The Chance Of Six Figure BTC In 2021
Bitcoin price (BTC) reached a new all-time high this week, soaring to almost $65,000 on Wednesday the 14th of April. With Bitcoin’s price now in “blue sky territory” and its market cap sitting comfortably around the $1.17 trillion level, the big question is – just how high will the current bull market push the BTC price this year?
Rounding Up The Most Famous Bitcoin Price Predictions
Here are some of the most famous individuals and institutions in crypto that have gone on record with bullish Bitcoin price calls:
In March, analysts at major US investment bank, JPMorgan, were reported to be eyeing a Bitcoin price of $130,000 – although no timeframe was provided for their prediction. JPM’s CEO, Jamie Dimon, was vocal in his criticism of Bitcoin in the past. However, the firm’s increasing involvement in crypto projects reflects the growing integration of cryptocurrency within the traditional financial sector.
Related Reading | The Bearish Bitcoin Chart Bulls Definitely Don’t Want To See
MicroStrategy’s CEO, Michael Saylor, is renowned for converting his firm’s cash reserves to Bitcoin and encouraging other corporate leaders to follow suit. At last count, MicroStrategy held over 90,000 BTC, worth approximately $5.5 billion at the time of writing. Unsurprisingly, Saylor is extremely bullish on the BTC price, saying in a March interview that he “can see Bitcoin going to a million… [or] five million.”
Pantera Capital, launched in mid-2013 as the original American crypto investment fund, has projected a Bitcoin price of $115,000 before September of 2021. Pantera’s call is based on the Stock to Flow (S2F) model of Bitcoin’s price, which has thus far shown a high degree of predictive power. Given the time-specificity of Pantera’s call as well as their transparency regarding its rational basis, we would consider this the most considered prediction.
Daily Bitcoin chart showing the bull run since late 2020 until present | Source: BTCUSD on TradingView.com
A Rally-Supportive Economic Environment
Predictions alone, no matter who makes them, aren’t enough to elevate Bitcoin to a six-digit price level. What’s needed are enthusiastic buyers and hodlers, whether they be individual investors or large institutions.
As to the latter, we’ve already alluded to MicroStrategy’s crypto corporate coffers. Perhaps following Saylor’s advice as presented to thousands of corporate representative, Time Magazine recently announced their own acquisition of Bitcoin.
Furthermore, with financial titans like BlackRock and MasterCard recently announcing their involvement in Bitcoin, there can be no doubt of the institutional appetite for » Read more
” href=”https://www.newsbtc.com/dictionary/satoshi/” data-wpel-link=”internal”>Satoshi’s invention.
The stock-to-flow model projects much higher prices for BTC | Source: Digitalik.net
Perhaps the most compelling reason driving investors, big and small alike, into Bitcoin is the expectation – and indeed the observation – of high inflation. With central banks around the world printing billions if not trillions of fresh fiat units as a response to COVID 19, the scene has been set for declining fiat value and rising costs for goods and services.
Related Reading | Coinbase COIN Debuts To A Bloody Bitcoin, But Bullish Structure Remains
With high inflation everywhere except government statistics – steel prices up 3x on the year, for example – it’s no wonder that demand for hard, deflationary money has never been higher.
Featured image from Deposit Photos, Charts from TradingView.com
Coinbase’s $86bn Valuation Has Been Grossly Exaggerated by Misleading Media
Coinbase shares closed at $327 on their Nasdaq debut, giving the crypto exchange an initial market cap of $86bn on a fully diluted basis.
Fully diluted refers to the total number of common shares outstanding and available to trade on the open market after all possible sources of conversion. But some feel this measure gives an inaccurate valuation as it includes options and restricted stock, therefore overstating the number of shares used in the valuation.
In the buildup to the IPO, some analysts expected Coinbase to achieve a $100bn valuation. While its closing valuation wasn’t a million miles away, it was still less than expected.
Coinbase Listing is a Watershed Moment For The Cryptocurrency Industry
Coinbase is the first major crypto company to test the U.S. public market. Its IPO was hailed as a turning point in cryptocurrency going mainstream. Analyst Dan Ives wrote:
“Coinbase is a foundational piece of the crypto ecosystem and is a barometer for the growing mainstream adoption of bitcoin and crypto for the coming years in our opinion.”
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>COIN opened at $381 on the Nasdaq Global Select Market. Early on, buyers pushed the price as high as $429, but bears soon took over to dip the price as the day wore on. It ended the session at $327.
Source: COINUSD on TradingView.com
The firm had released some impressive figures before its public debut. It showed a spike in revenue and a doubling of its monthly active users from the previous quarter.
But market research firm New Constructs had already sounded the alarm on a severe overvaluation at $100bn. They believe a valuation this high takes no account of a future squeeze on its transaction margins.
the company has little-to-no-chance of meeting the future profit expectations that are baked into its ridiculously high expected valuation of $100 billion.”
The Actual Valuation Should be $65mn
While Coinbase’s fully diluted valuation came in at $86bn, pretty much in the middle of pre-debut expectations of between $60bn – $100bn, CIO at Arca Jeff Dorman said this figure is grossly overstated.
Dorman slammed the media for “misinformation” and “horrible reporting,” saying they were using the wrong share count. Based on 198mn class A and B shares, Coinbase’s closing valuation should be $64.7mn.
“That math is wrong — There are 198mm class A and class B shares o/s, not 261mm. If we use fully diluted share count, then every stock on the planet has infinite shares due to no restrictions on how much stock a company can issue.“
On the matter of ever reaching a $100bn valuation, researcher Larry Cermak expects this to happen as long as the bull market continues.
“Direct listings almost always trade down in the next few days because of the high float that’s being dumped. As long as the bull market continues, it will eventually recover and go $100B+ IMO. Low volume today is somewhat surprising though.”
At this point, it’s unclear whether an overstated Coinbase market cap is a help or hindrance to crypto. While an overstated valuation is likely to drum up interest, the spin side sees additional pressure on Coinbase to live up to the hype.
ETH bonanza as three North American Ethereum ETFs approved in one day
While gaining exposure might still be difficult south of the US-Canada border, Canadian investors will shortly have a host of options to choose from to gain exposure to Ethereum (ETH) via an ETF as regulators have approved three different Ethereum ETFs in a single day.
Purpose Investments, Evolve ETFs, and CI Global Asset Management were all approved by Canadian regulators to launch Ethereum-backed ETFs today. The ETFs will be the first ETH ETFs in North America, and among the first in the world.
Some observers noted that all three being approved at once may have been part an effort not to give Purpose an “unfair advantage”. Purpose appeared to gain an edge after the launch of the wildly popular Purpose Investments ETF, the first North American Bitcoin ETF which quickly swelled to $1.3 billion in AUM while competitors waited for approval. Rival Evolve Fund Group’s Bitcoin ETF only managed to attract $100 million in AUM, despite launching only two days later than Purpose and offering 25% less management fees.
In a Tweet, a reporter for Bloomberg said that the CL Galaxy and the Purpose ETF funds will begin trading on 4/20 — a date he thought would please Elon Musk, given it’s marajuana culture connection. Likewise, Evolve’s ETH ETF — which they first filed for in March — will begin trading on the same day.
Updating yet again… @CIGlobalAsset & @GalaxyDigital just got approval for their #Ethereum ETF alongside @PurposeInvest‘s. I THINK both will begin trading on … wait for it … 4/20 — Amazing @elonmusk https://t.co/SNFY4jNpUa pic.twitter.com/4ZUSCJEVQ5
— James Seyffart (@JSeyff) April 16, 2021
The Canadian stock market has already demonstrated a significant appetite for exposure to crypto assets. Previous exchange-traded Ethereum products led to market halts on the first day of listing, and Purpose’s Bitcoin ETF cracked $100 million in its first day of trading.
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