Bitcoin is now trading over $7,000 below its peak reached to start the year – a peak that is more than double its previous all-time high. And while believers in the cryptocurrency are certain this is just another pullback before more price discovery, the similarities between the 2017 top and now are undeniably striking.
Here’s how the two potential tops compare, but why this time still could be very different from the last.
Bitcoin Bubble Returns, But Is It Already Ready To Pop?
Outside of the crypto Twitter echo chamber, financial analysts and economists are once again beginning to warn that Bitcoin is a bubble, potentially being inflated even more so this time around as part of the “everything bubble.”
And while crypto enthusiasts are quick to write the notions of naysayers off as just plain wrong, the current price action since $42,000 was tapped, closely resembles the 2017 peak.
2020 propelled Bitcoin into super-stardom, and from under $4,000 to more than $40,000 at the start of 2021. The entire parabolic move was reminiscent of the 2017 hype bubble that made the cryptocurrency a household name.
But the strength of the trend isn’t the only way the two rallies size up for comparison’s sake. In fact, the current price action, indicators, and even the patterns leading up to the recent peak, almost exactly match the top of the 2017 bull run.
Several similarities between the 2017 peak and now exist | Source: BTCUSD on TradingView.com
Could A Repeat Of 2017 Take Place, Or Is This Time Different?
In the chart above, the similarities are immediately visible: There’s a large rise up followed by a sharp peak. However, this happens so often in Bitcoin that the peaking behavior alone isn’t enough to go on.
What is more compelling, however, is the evening star pattern culminating with a tiny red doji at the top of the run, combined with a pair of technical indicators exhibiting similar readings.
After crossing down temporarily on the MACD, the final bullish impulse lasted roughly one month before the same tool crossed into the red. Bitcoin just crossed bearishly for the first time yesterday on the MACD since $20,000 was broken.
The MACD crossover was forecasted by the hidden bullish divergence on the RSI, which also matches up – then versus now. The fakeout down also coincided with price passing through the 20-day moving average both times.
The moving average on the way back down in 2017 was the last straw before things turned extremely bearish. Bitcoin is currently on the ropes against this same moving average, potentially ready to go down for the count.
Related Reading | Bitcoin Daily MACD Flips Red For First Time Since $20K Was Taken
In less than one month from the time the top pattern formed and indicators confirmed downward momentum, Bitcoin plunged from $20,000 to $6,000. Similar targets this time around would result in a crash to $20,000 at minimum.
And while such a move might shake out investors thinking it is the top, confirming $20,000 as resistance turned support would be extremely bullish for Bitcoin and likely leave that former trading range behind forevermore
Investing legend Sir John Templeton however warns that some of the costliest words an investor can murmur are “this time is different.”
Is this time different? Or is another » Read more
” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear market coming? Only time will tell.
Featured image from Deposit Photos, Charts from TradingView.com
MicroStrategy Keeps Buying The Dip – Spends Another $10 Million On Bitcoin
Everyone is acquiring bitcoin. From everyday people buying fractions of a bitcoin in the hopes of making a value later on to companies like Tesla padding their wallets with billions worth of the famous asset, bitcoin is all the rage these days.
Given that bitcoin currently hovers around $45,000 after seeing a new all-time price high of over $65,000 a few weeks ago, for some, now may be a desirable time to jump on the train.
One company that definitely got the memo was MicroStrategy as it was confirmed on May 18, 2021, that the company has bought another $10 million worth of bitcoin.
Bitcoin Whale MicroStrategy Keeps Buying
This latest purchase was confirmed by Michael Saylor, the founder, and CEO of MicroStrategy on Twitter. According to his tweet, MicroStrategy purchased an additional 229 bitcoins with each costing an average of $43,663. With this acquisition, the firm’s total bitcoin stash now comes to about 92,079 with an acquisition value of $2.251 billion. Acquired at an average price of $24,450 per bitcoin, this represents one of the biggest caches of bitcoin held by a single entity.
From the language used in the tweets, it is implied that the company intends to HODL long-term as do many private crypto holders who believe that bitcoin will be worth hundreds of thousands at some point in time. Regardless, it is clear that the corporate world is getting its fill of bitcoin and investing a significant amount of money in it.
It is safe to expect that other firms besides MicroStrategy will continue to pad their wallets with even more bitcoin and other cryptos, especially given that the market is not mooning at the moment.
At the same time, some analysts predict that the bitcoin price will reach $100,000 by the end of this year and some even predict $300,000 or 400,000 in a few years, and should this happen, it will be interesting to see at which price point firms like MicroStrategy will sell, if at all.
Marvel Icon Behind Batman, Green Lantern To Launch Exclusive Comic NFT Collection
The art world and the world of blockchain are currently seeing a huge intersection thanks to the rise of non-fungible tokens or NFTs as they are commonly called. Top artists from around the world have been selling their work as NFTs with millions of dollars being raised and NFT platforms seeing more attention from the artist themselves.
One of the latest of these is from Neal Adams, a legendary comic book artist behind iconic characters like the modern Batman and the Green lantern. It was announced on May 18, 2021, that the comic book artist will be partnering with Vorto Gaming to release an exclusive comic book and NFT collection.
Batman Immortalized as an NFT?
Some details about the new partnership have been announced such as Adams creating bespoke comic books around Hash Rush, which is the first title published by Vorto Gaming and will be released on its network. Part of this comic will involve new and existing Hash Rush characters and a new storyline from Adams.
Given that Adams has shaped storylines for a number of comics for DC Comics and Marvel, there is a lot of anticipation. He will receive help for this new project from Swedish-based ComicFirst Entertainment and their artist Mikael Bergkvist, who is also his mentee.
Adams himself has touched on the importance of gaming and why he is excited about this upcoming project.
“Gaming is without doubt the most innovative entertainment industry of the past decade and is shaping so many different aspects of our culture. We’re moving into a period in history where we are spending as much time exploring digital, imaginary worlds as we are living in this one. Comic books were always a transportation tool – taking us to another place, to experience another story, even just for a moment. Hash Rush is no different and I’m looking forward to sharing this story with the world.’ he said.
At this point, it seems that there is no limit to the type of content that can be created as an NFT. Artists from all sectors are beginning to explore their options with regards to both making money and providing valuable experiences for their fans. Hopefully, Adams’ participation in this project will lead to more prominent comic book artists embracing NFTs as well.
PARSIQ And Autonio Partnership Brings Smart Triggers To NIOX Trading Suite
PARSIQ has partnered with the Autonio Foundation to integrate its monitoring technology into Antonio’s NIOX trading suite.
As per the announcement, through this partnership, PARSIQ is planning to deploy its Smart Triggers technology into Autonio’s NIOX suites. The partnership will help Autonio monitor blockchain data for important events by integrating a few lines of code. Generally, this new integration will help save on the time and infrastructure required to create custom listeners.
Ali Raheman, Autonio Foundation CEO and Founder.
“PARSIQ enables us to secure our governance and our DAO along with granting our users access to info about asset movements, which is a higher up priority for us, while we begin incorporating notifications and triggers into our trading solutions and tracking. Use for AI is longer term. PARSIQ has provided us with a toolset to make improvements in 3 major areas, trading, governance, and analytics data for AI.”
Tom Tirman, CEO of PARSIQ.
“Automated trading tools are a natural use case for PARSIQ’s Smart Triggers, and we are glad to be seeing teams like Autonio speed up their development efforts by choosing our solution. There is no reason why crypto app developers should constantly be reinventing the wheel. By letting us take care of the intricacies, they save on time, money, and headaches.”
Autonio Foundation is a decentralized autonomous organization built around developing accessible, easy-to-use training tools and services. By democratizing access to intelligent trading tools, the platform allows crypto traders to conduct deeper trading analysis, pool funds for their original strategy, and deploy complex algorithms.
Autonio’s trading suites are based on Artificial intelligence technology. The suites require a stream of reliable blockchain data, which can create trading alert systems or complex trading strategies 0based on specific triggers.
By integrating PARSIQ’s Smart Triggers, Autonio will easily monitor blockchain data for relevant events. The partnership will also allow Autonio to access the PARSIQ toolset. The toolset allows traders to conduct strategies based on on-chain triggers such as transactions coming to large wallets. Additionally, Autonio will also use PARSIQ monitoring technology to gauge NIOX AI-based effectiveness, strategies, and efficacy.
Antonio will also be able to use PARSIQ tools for analytic purposes. The tool will allow the company to monitor withdraws and deposits transactions to the NIOX DAO, allowing them to understand their users. The analysis will be key in developing key metrics that will enable tracking growth.
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