Bitcoin (BTC) starts a new week in all-too-familiar territory with all-time highs just out of reach.
After a positive weekend, the largest cryptocurrency has avoided a deeper price dip than that seen last week, and $50,000 has stuck as support. What next?
Cointelegraph takes a look at five factors which may shape Bitcoin price action in the coming days.
Stocks set for crunch moment
Monday will form an interesting open for U.S. equities as fears mount over the impact of Friday’s $20 billion worth of block trades.
Originating from major players Goldman Sachs and Morgan Stanley, the surprise appearance of the orders targeting mostly tech stocks has caused a headache for traders. This will now play out once the market opens on Wall St. on Monday.
“Traders everywhere know the story and will be glued to their screens,” portfolio manager Sharif Farha told Bloomberg.
Volatility in stocks implies a knock-on effect for Bitcoin, but the ultimate extent of that depends on movements which at the time of writing remain unknown.
“The markets could start trading in a friendly manner at the beginning of the week,” Andreas Lipkow, a strategist at German bank Comdirect added.
“Although there is currently some major profit-taking and unusual block trade activities, these market asymmetries can currently still be processed well.”
Other macro factors include declining oil prices, though this is nevertheless not as pressing for BTC hawks as stocks. An Opec+ meeting later this week, combined with the potential resolution of the crisis in the Suez Canal, are pushing prices down as expectations of a supply increase rise.
BTC price “still consolidating” at $56,000
For Bitcoin spot markets, at least earlier on Monday, it’s a tale of consolidation.
Saturday and Sunday brought some welcome relief for traders who had watched BTC/USD descend to lows, which at one point tapped $50,000 itself.
Deeper dives were avoided, however, and liquidity at $46,000 was left untouched in favor of a return to familiar resistance beginning at around $56,000.
At the time of writing, that was exactly where Bitcoin was, still unable to tackle what has become a broad sea of sellers all the way up to current all-time highs of $61,700.
“Bitcoin scenario is playing out so far, in which the crucial resistance fails to break in one-go. Either way, that’s not bad,” Cointelegraph Markets analyst Michaël van de Poppe summarized on Sunday.
“If $54K fails to hold support, I’m assuming we’ll see this scenario play out. Still consolidation.”
This wait-and-see attitude has characterized the mood among analysts following the all-time highs. The consequences of a supply shock in the form of draining exchange reserves and a lack of selling from strong hodlers, they argue, have yet to be felt.
April gains “depend on” consumer spending
April’s price performance will “depend” just as much on retail investors as the institutional crowd, according to on-chain analytics service Glassnode.
In its latest research published last week, Glassnode highlighted an unusual disparity between U.S. consumer spending and disposable income generated by coronavirus lockdowns.
While normally tightly bound, the onset of lockdowns saw the two measures of retail investor purchasing power diverge — there was more money, thanks to stimulus checks among other factors, but nowhere to spend it.
Now, with reopening creeping into multiple states, the balance is primed to be redressed as pent-up consumer demand becomes a major narrative.
“Many households now have an extra buffer of income to spend, due to new stimulus checks and decreased spending during lockdowns,” co-founders Yann Allemann Jan Happel tweeted.
“Will they invest this into markets or pay off debt? Bitcoin’s April performance will depend on it.”
An accompanying blog post argues that the most recent stimulus checks, worth $1,400, have yet to make their presence felt in the economy.
“The recent stimulus package was much larger than the one in January, yet global markets have felt little effects of it in the global markets so far,” Glassnode said.
“It’s difficult to measure to what extent the checks have arrived in households until today, and more importantly how willingly retail is going to spend or save the money this time considering it may be the last monetary stimulus for a while.”
Unconfirmed reports meanwhile suggest that the next round of checks may come sooner than thought.
RSI says Bitcoin will deliver more gains
Bitcoin technical indicators remain overwhelmingly bullish on longer timeframes.
The latest one to be highlighted is the relative strength index (RSI), which is now entering its “peak” phase which traditionally accompanies price highs.
Quant analyst PlanB, creator of the stock-to-flow series of Bitcoin price models, showed how RSI fluctuates relative to the point in Bitcoin’s halving cycles — four-yearly periods between reductions in the block subsidies paid to miners.
With the year after a halving normally the best in terms of price gains, RSI is indicating that 2021 will be no different to 2013 or 2017.
“Bitcoin monthly RSI is not even 95. In 2011, 2013 and 2017 bull markets we had at least 3 months above 95. Still early,” he summarized over the weekend.
Stock-to-flow meanwhile demands a $100,000 or $288,000 average BTC/USD price this halving cycle, depending on the exact model used.
Fear & Greed stays calm
In terms of investor sentiment, the weekend’s price rise had a welcome muted effect on the chances of an instant sell-off.
That’s according to a classic measure of the market, the Crypto Fear & Greed Index.
A scale between 0 and 100, Fear & Greed charts how the market is feeling about Bitcoin price action, and infers whether recent activity means that it is due for a bounce off lows or a sell-off from highs.
The trip to previous all-time highs of $58,300 in February sparked warning signs from the Index, which circled all-time highs alongside BTC/USD. The comedown saw its score slashed from 94/100 to 38/100 by March 1, only to return to the mid-70s days later.
At the time of writing, the Index measures 72/100, classified as “greed” among investors, but still with much room for leeway before entering sell-off territory, denoted as “extreme greed.”
Coinbase Pro Lists Tether as USDT Supply Approaches 50 Billion
In an announcement on April 23, Coinbase Pro stated that it had enabled trading for the Tether stablecoin. The move is huge news as previously the leading exchange would only support its own native stablecoin, USDC.
The announcement added that support for USDT will generally be available in Coinbase’s supported jurisdictions, with the exception of New York State. The only version of USDT available will be the Ethereum ERC-20 standard.
Trading will begin on or after 6 PM Pacific Time Monday, April 26, if liquidity conditions are met, it added. The following pairs will be available: BTC/USDT, ETH/USDT, USDT/EUR, USDT/GBP, USDT/USD, and USDT/USDC.
Tether is not available on the regular Coinbase exchange yet and is limited to the Pro version which is more suited to professional and institutional traders.
Starting today, inbound transfers for USDT are now available in the regions where trading is supported. Traders cannot place orders and no orders will be filled. Trading will begin on or after 6PM PT on Monday April 26 , if liquidity conditions are met. https://t.co/F5o73g8o4v
— Coinbase Pro (@CoinbasePro) April 22, 2021
Tether Supply Surges
The move comes as Tether’s circulating supply approaches a milestone all-time high of 50 billion. According to the Tether Transparency report, there are currently 49.58 billion USDT in circulation.
Of that total, almost half of it, or 24.4 billion is based on Ethereum while the majority of the remainder, almost 26 billion is circulating on the Tron network.
Since the beginning of 2021, the total supply of Tether has increased by 137% outlining the surge in demand for stablecoins in DeFi related activities.
Comparatively, there is currently 13.4 billion USDC in circulation according to the company that owns it, Circle. It has had an even greater increase this year with 244% since January 1.
The third-largest stablecoin is Binance USD which currently has a circulation of 7 billion according to Coingecko. The surge in supply for BUSD this year has been even greater at over 600%, largely driven by Binance Smart Chain and DeFi yield farms on PancakeSwap.
Crypto Market Correction Deepens
Cryptocurrency markets are currently correcting hard with a decline in total market capitalization of 20% from its all-time high of $2.3 trillion on April 16. Over the past 24 hours, $280 billion has left the space as Bitcoin and its brethren continue to pull back.
According to Coingecko, BTC prices have slumped 9.4% on the day dropping below $50K for the first time since March 7. It has now formed a lower low since the previous correction which could be a sign of a major trend reversal.
ORBS Is Now Accessible on Binance Smart Chain Via AnySwap
[PRESS RELEASE – Please Read Disclaimer]
The ORBS token is now accessible via the Binance Smart Chain. Hodlers can swap tokens to and from the Ethereum network. Exploring this additional blockchain allows Orbs to leverage BSC’s potential for speed, low costs, and DeFi purposes.
This integration of ORBS onto Binance Smart Chain is made possible through the cross-chain bridge developed by Multichain.XYZ – a platform co-developed by Anyswap and Andre Cronje. By integrating this functionality, holders can now move ORBS to and from the Ethereum and BSC networks at their own leisure.
Given the potential for BSC in the DeFi space, support on this blockchain can unlock new use cases for Orbs. As BSC is home to near-daily launches of new projects, products, and services, it is one of the more exciting blockchains in the industry today. It has a competitive edge over Ethereum – which remains the main ecosystem for DeFi – by providing faster transactions at a much lower cost.
“While the Ethereum ecosystem is leading the pack in terms of DeFi activity and public interest, in the last couple of months we are seeing more and more DeFi alternatives growing on BSC. Says Orbs co-founder Tal Kol. “We knew we had to be part of the opportunities and innovations happening in the BSC ecosystem” he continued.
As more and more DeFi alternatives launch on BSC, it makes sense for the ORBS token to be interoperable. As Orbs is a prolific decentralized finance project with unique advantages and multiple upcoming projects under development, both ecosystems will benefit from this compatibility. With the help of cross-chain bridges – such as multichain-xyz – the DeFi ecosystem can continue to grow and evolve into more encompassing solutions.
Moreover, Orbs and the Binance exchange strengthened their partnership in January to promote ongoing innovation in the world of decentralized finance. They were the first core sponsors of the DeFi.org accelerator bootstrapping new projects and DeFi protocols.
Other projects being worked on by Orbs include Liquidity NEXUS – to bridge the gap between CeFi and DeFi – and the Orbs DeFi Portal – an aggregation service for information regarding Orbs and decentralized finance. There is also the Orbs DeFi Grant Program which aims to foster ongoing growth among contributors developing the network and ecosystem.
Orbs is a public blockchain infrastructure designed for mass usage applications – offering developers a proper mix of performance, cost, security and ease of use. The Orbs protocol is decentralized and executed by a public network of permissionless validators using Proof-of-Stake (PoS) consensus.
Orbs Now Bridged to Binance Smart Chain (BSC) with Anyswap
Blockchain company Orbs said it is now available to trade on Binance Smart Chain (BSC). The move is yet another milestone in Orbs’ efforts to build bridges between complementary blockchains that will eventually bridge ORBS to multiple ecosystems.
With the release of this feature, ORBS holders will be able to leverage their tokens to participate in DeFi applications on the Binance network. At the same time, they tap into Binance’s ever-growing ecosystem that allows for cheap transactions and high scalability.
The BSC integration is also another step in growing token liquidity across multiple chains, while also preparing for the ability of other assets to live on the Orbs network.
ORBS, which has some $272 million in liquidity and around $1 million in 24-hour volume, was formerly only hosted on the Ethereum blockchain, which is currently suffering under increasingly high gas fees.
To kick-start this integration, Orbs is utilizing the cross-chain bridge infrastructure developed by multichain.xyz, which makes applications compatible with new and legacy systems. Effective today, ORBS tokens can be swapped from the Ethereum mainnet to the BSC mainnet and back.
Once the swap is complete, the ORBS token will be visible in the Binance Wallet connected to the service. From there, users can trade, swap, and interact with the associated token as they would with any supported asset in the Binance Chain.
The rapid rise of the Ethereum-based DeFi ecosystem has fueled the migration of many relevant applications to alternative blockchains. The trend has accelerated after the expensive gas fee on the Ethereum network has limited functionality and made many defi protocols barely usable.
Is BSC the Ethereum killer?
As the Defi ecosystem continues its boom, Ethereum seems to be losing its market to Binance Smart Chain (BSC). Binance’s native blockchain has become the go-to alternative for many traders, onboarding millions of users at an eye-watering pace.
As a result of BSC’s rising popularity, BNB token price has skyrocketed to become the world’s third biggest cryptocurrency, trailing only behind Bitcoin and Ether. Trading volume on Binance’s network has also outpaced that of Ethereum, a clear shift of the market to the new chain.
For Orbs, the main motivating factor for integrating Binance Chain is to give users new ways to use ORBS on various DeFi applications within the nascent ecosystem.
Orbs’ vision is to convert real-life businesses to blockchain at scale by turning the trust-enabling technology into mass-usage applications for many sectors.
The Israeli blockchain garnered attention earlier this year after partnering with Binance to fund a recently launched accelerator for decentralized finance innovation.
Named ‘DeFi.org,’ the incubator reviews submitted applications, even anonymous ones, and the one that fulfills requirements and receives approval gets the accelerator’s assistance.
Successful applicants receive many benefits and incentives including mentorship, funding from scratch and exposure to the DeFi community.
Upon receiving approval, they also get a “special consideration” if they apply to take part in Binance’s seed fund for Bridging DeFi and CeFi. In line with the sponsorship, Orbs also provides startups with a grant under the company’s Grant Program.
Meanwhile, Orbs has recently introduced a new liquidity-as-a-service application that makes access to defi easier for professional investors. Dubbed ‘Liquidity Nexus,’ the application provides a massive source of new liquidity for interested defi projects.
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