As Bitcoin price trade sideways, traders are keeping an eye out for new purchases from institutional investors in order to gauge whether BTC‘s correction is over.
MicroStrategy’s recent purchase of 314 Bitcoin at an average price of $31,808 is a mild sentiment booster but it may not be enough to arrest the decline if buyers do not step in and sustain their purchases at higher levels.
A recent timezone analysis by QCP Capital divided the Asia and U.S. trading sessions into a 12-hour bracket and found that since March 2020 Bitcoin price had risen during U.S. hours due to sustained buying from institutional investors. However, this buying momentum from the U.S. has shown signs of exhaustion for the first time since Bitcoin topped out about two weeks ago.
While keeping an eye on institutional investor inflow is a good strategy, it’s also important to monitor what is happening on the retail side. In the past few months, retail investor volume has picked up and this is supporting equity markets across the globe.
Bitcoin may be struggling to reclaim its all-time high but during this time a handful of altcoins have rallied to new highs. This shows that retail traders are currently focusing on altcoins.
Let’s study the charts of the top-5 cryptocurrencies that could trend in the next few days.
Bitcoin’s bounce off the 50-day simple moving average ($28,632) is facing resistance near the 20-day exponential moving average ($33,775). The failure to rise above the 20-day EMA is a negative sign as it shows a possible change in sentiment from buying on dips to selling in each rally.
The 20-day EMA has started to slope down and the relative strength index (RSI) has been trading below the 50 level, suggesting that the bears are trying to make a comeback. The inside day candlestick pattern on Jan. 23 and today shows indecision among the bulls and the bears.
If the uncertainty resolves to the downside, the bears will try to establish their supremacy and sink the BTC/USD pair below the 50-day SMA. If they succeed, it could result in a deeper correction to the 50% Fibonacci retracement level at $25,897.42 and then to the 61.8% retracement level at $22,106.73.
On the contrary, if the bulls thrust the price above the 20-day EMA, the pair may rise to the downtrend line, where they are again likely to face stiff resistance. If the price turns down from this level and breaks below the 20-day EMA, it will suggest the bears are selling on rallies, but if the bulls push the price above the downtrend line, it will indicate the correction may be over.
A close above the downtrend line will increase the possibility of a retest of the all-time high at $41,959.63. A break above this resistance could result in a rally to $50,000.
The downsloping moving averages and the RSI in the negative zone on the 4-hour chart shows the bears have the upper hand. The price action shows a bearish descending triangle formation that will complete on a breakdown and close below $30,450. The pattern target of this setup is $18,940.37.
Contrary to this assumption, if the bulls can propel the price above the moving averages, the pair could rise to the downtrend line. This is a critical resistance to watch out for because a break above it will invalidate the bearish setup. If that happens, it could catch the aggressive bears on the wrong side, resulting in a short squeeze that could drive the price to a new all-time high.
Ether (ETH) has climbed above the $1,300 overhead resistance, and the bulls are attempting to resume the up-move. The upsloping moving averages and the RSI above 61 suggest the bulls are in control.
If the price sustains above $1,300, the ETH/USD pair could retest the all-time high at $1,438.318. A breakout and close above this resistance may start the journey to the target objective at $1,675.
On the other hand, if the price turns down from the overhead resistance, the pair may drop to the 20-day EMA ($1,166). A rebound off this support will increase the possibility of the resumption of the uptrend.
However, if the next drop breaks below the uptrend line, it will indicate a possible change in trend. The next support on the downside is at the 50-day SMA ($882).
The bears are currently attempting to defend the $1,350 overhead resistance. If the price turns down from the current level, it could find support at the moving averages. A bounce off this level will suggest bulls are buying on every minor dip, and this will enhance the prospects of a breakout of $1,350.
Contrary to this assumption, if the bears sink the price below the moving averages, the pair could drop to the uptrend line. A break below this support will signal a change in sentiment and may result in a deeper correction.
Polkadot (DOT) is currently range-bound between the high at $19.40 and the 38.2% Fibonacci retracement level at $14.7259. A consolidation near the all-time high is a positive sign as it shows traders are not rushing to book profits.
The bears are currently defending the overhead resistance at $19.40. This could extend the stay of the DOT/USD pair inside the range for a few more days
However, the upsloping 20-day EMA ($14.11) and the RSI near the overbought territory suggest the bulls have the upper hand. If buyers can drive the price above $19.40, the next leg of the up-move could begin. The first target on the upside is $24 and then $30.
This positive view will invalidate if the pair turns down and breaks below the 20-day EMA. Such a move could open the possibility of a deeper fall to the 61.8% Fibonacci retracement level at $11.8383.
The pair has turned down from the overhead resistance, which suggests the bears are unwilling to give up without a fight. The flattening 20-EMA and the RSI near the midpoint on the 4-hour chart shows a balance between supply and demand.
If the bears sink the pair below the 50-SMA, a drop to $16 and then to $14.7259 is possible. The bulls are likely to buy this dip and try to keep the price inside the range. The next trending move could start after the price breaks above $19.40 or sinks below $14.7259.
AAVE is in a strong uptrend and has been hitting new highs for the past few days, which shows traders continue to buy at every higher level. In an uptrend, the bulls buy the dips to the 20-day EMA and that was seen during the recent fall on Jan. 21.
The current leg of the uptrend has a target objective at $263.23 and then $294.229. The wick on today’s candlestick suggests bears are attempting to stall the rally near the psychological resistance at $250.
If the price turns down from the current level, the first support is at $200 and then at the 20-day EMA at $166. The upsloping moving averages and the RSI in the overbought zone indicate bulls are in command.
The first sign of weakness will be a breakdown and close below the 20-day EMA. Such a move will suggest that supply has exceeded demand from dip buyers and that could be a sign of a trend change.
The 4-hour chart shows the price is trading inside an ascending channel. If the price dips from the current levels, it could drop to the support line of the ascending channel where buyers are likely to step in.
A break below the channel could sink the price to the 20-EMA. A strong rebound off this support will suggest that bulls continue to accumulate on dips. However, a break below the moving averages will open the doors for a deeper correction.
Synthetix (SNX) witnessed a sharp correction on Jan. 21 but it quickly recovered and is currently attempting to resume the uptrend. Aggressive buying near the 50% Fibonacci retracement level at $10.744 on Jan. 22 shows demand at lower levels.
Both moving averages are sloping up and the RSI has bounced from the midpoint, indicating the path of least resistance is to the upside. If the bulls can propel the price above $17.150, the next leg of the uptrend could begin.
The next target on the upside is $20 and then $24.083. However, if the price turns down from $17.150, the SNX/USD pair may dip to the 20-day EMA ($13.68), which is likely to act as strong support.
The 4-hour chart shows the bears are attempting to defend the $17 overhead resistance. If the price turns down from the current level, the pair could drop to the moving averages and then to $14. A consolidation between $14 and $17 will be a positive sign and increase the possibility of a break above $17.15.
Contrary to this assumption, if the price breaks below $14, the correction could deepen to $11.263. Such a move will suggest the bullish momentum has weakened. A break below $11.262 may pull the price down to the 61.8% Fibonacci retracement at $9.232 and then $7.880.
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.
Tether Gets 500 BTC Ransom: Sender Threats to Leak Harmful Documents
Tether, the company issuing the most widely-used stablecoin, USDT, has revealed that it got a ransom demand for 500 BTC. The sender has threatened the company to leak documents to the public that would “harm the bitcoin ecosystem.”
Tether Gets a 500 BTC Ransom Demand
Tether, the issuer of the popular USDT stablecoin, took it to Twitter to reveal that someone had threatened to leak documents to the public in an attempt to “harm the bitcoin ecosystem.”
The company explained that “forged documents are circulating online purporting to be between Tether personnel and reps of Deltec Bank & Trust and others. The documents are bogus.”
Furthermore, Tether explained that they’ve also received a ransom demanding 500 BTC, which is currently worth around $23.6 million. They also revealed that unless the ransom is paid, the sender would “leak documents to the public in an effort to harm the bitcoin ecosystem.” Also, Tether has no intention of paying the money.
At the time of this writing, there’s no further information on what’s going to happen next.
It is unclear whether this is a basic extortion scheme like those directed at other crypto companies or people looking to undermine Tether and the crypto community as a whole. Either way, those seeking to harm Tether are getting increasingly desperate.
The company also said that the “forged communications and the associated ransom demand” were reported to law enforcement.
Interestingly enough, all of this comes about a week after Tether and Bitfinex reached a settlement with the office of the New York Attorney General, putting an end to a year-long lawsuit that many thought could really harm the ecosystem. Nevertheless, the company admitted to no wrongdoings and agreed to pay an $18.5 million fine.
However, as part of the settlement deal, the company has also agreed to no longer be able to deal with customers from New York.
Litecoin Price Analysis: 01 March
The cryptocurrency market has been moving in a wave-like fashion with continuous crests and troughs. The market has been seeing spurts of growth in the price, but it did not trigger a price swing. Litecoin [LTC], also witnessed such a push in its price recently, but at the time of writing, the coin continued to move within a tight range.
The digital asset has a market capitalization of $10.99 billion and was being traded at $163.94.
Litecoin 1-hour chart
The above chart of Litecoin has been noting the price consolidation between $155 and $181. Before the drop to this level, LTC was trading between $169 and $181 for a while. However, sudden selling pressure pushed it to this new price level.
This could mean that the LTC market may further this phase of consolidation as momentum in the Bitcoin market also noted a similar trend.
The Bitcoin market has been pushing the price of most altcoins in the market. Now that, the digital asset moves sideways after a little pump, the alts are also showing signs of consolidation.
Litecoin has shown that the volatility in its market has comparatively decreased as the Bollinger Bands converged. Meanwhile, the 50 moving average and signal line were beginning to witness a bearish crossover, which could be just a sign for the price to retrace within the above-mentioned range.
The Relative Strength Index has climbed to equilibrium due to the boost in price. This meant that the buyers and sellers were equal in the market, and hinted towards yet another spell of sideways movement for LTC. Meanwhile, the awesome oscillator noted the lack of momentum in the market.
The current trend prominent in the LTC market was of consolidation between $155 and $169. There has been bearishness evolving in the market, but the price swing may not be visible in the short-term.
Sign Up For Our Newsletter
LetsExchange Launches Crypto Trading Service With Smart Exchange Rates
For each trade, LetsExchange instantly selects the best rate across the world’s leading crypto exchanges and lets the trader secure this rate at the beginning of the transaction.
Cryptocurrency trading can be a very lucrative activity. Because of the price volatility of many coins, the possibilities to make gains through short-term trading are big. Two factors influence the outcome of a trade. First, the trader must buy crypto at the best possible rate. And second, the trader must be able to buy or sell the crypto assets without delays.
The LetsExchange platform has been designed to maximize traders’ gains by facilitating the two factors mentioned above. With the use of this service, traders can get the most profitable exchange rate available on the market at a given moment. What’s more, the platform ensures that the said rate remains unchanged until the trade is completed.
This newly launched service also eliminates delays in the processing of transactions by waiving registration, KYC screening, and other authentication and authorization procedures. The platform’s founders elaborate on these features that allow traders to maximize their gains:
- The registration process and KYC authentication are time-consuming. Traders usually cannot afford to waste much time in such procedures as the cryptocurrency market is volatile, and exchange rates may change significantly within a few minutes. With LetsExchange, traders can benefit from these fluctuations by buying and selling cryptocurrencies as soon as they decide, without hassle and delays.
- LetsExchange works with the world’s top crypto exchanges including Binance, Okex, KuCoin, Gate, Huobi, and more. By using its SmartRate technology, the platform always offers the most profitable rate across all the exchanges. In this way, traders won’t waste time in comparing rates and researching the market status at a given moment.
- This platform offers the possibility to secure the most profitable exchange rate by selecting the Fixed Rates option. This feature will maintain the said rate unchanged until the completion of the trade. But if a trader prefers to forecast the rate fluctuations in a bid to maximize their gain, the floating rates option allows doing it. Each trader has the freedom to choose the most convenient strategy.
- Thanks to the use of fully automated exchange algorithms, the only delay in the processing time of a transaction depends on the network speed of the selected cryptocurrency. During Beta testing of the platform, the average transaction time was 25 seconds.
The LetsExhange platform at https://letsexchange.io is now ready to help traders maximize their gains by guaranteeing the best rates and eliminating unnecessary delays.
LetsExchange is a one-stop multicurrency exchange service free of registration, limits, and complications. It supports 210+ coins, about 45,000 currency pairs and automatically selects the best rate across all major crypto exchanges for each trade. Built by a team of crypto visionaries with 10+ years of experience in the blockchain space and fintech, LetsExchange saves your time at each step of a crypto swap and amplifies your trading revenue.
Gemini collaborates with The Giving Block and others, adds donations option
NextGen Blockchain Platforms Self-Organize to Win Government Contracts
Crypto Lending Explained 2021
BitMEX adding six new perpetual contacts: ADA, DOT, EOS, YFI, UNI, and XLM
What Coinbase Going Public Could Do For Crypto
Traditional Banks get serious about enabling crypto-related services
Crypto Investment Fund to Sell $750M in Bitcoin for Cardano and Polkadot
Trailing Take Profit Explained
Traders remain bullish even as DeFi’s TVL falls to $54.4 billion
MicroStrategy Completes Another $1 Billion Bitcoin Buy
All of the Federal Reserve’s wire and ACH systems are down
This was avoidable – The lost Bitcoin fortunes
Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin
Sam Bankman-Fried: The crypto whale who wants to give billions away
Craig Wright Sues Bitcoin Developers Over Stolen BTC Worth $5 Billion
Tatum helps donation-based betting app Fandona complete its blockchain MVP
Economist warns of dystopia if ‘Bitcoin Aristocrats’ become reality
ZelaaPayAE deploys Pundi X’s merchant crypto payment solutions for UAE
Tezos, IOTA, Dash Price Analysis: 25 February
Coinbase public listing filing details 2020 revenue, major a16z stake
Blockchain7 days ago
Ankr adds Eth2 futures (fETH) to its staking system
Blockchain4 days ago
Gemini collaborates with The Giving Block and others, adds donations option
Blockchain1 week ago
Ripple now registered as a Wyoming business
Blockchain7 days ago
Peter Schiff Now Discusses Bitcoin More Often Than His Beloved Gold
Blockchain1 week ago
Former BoE, BoC Governor Mark Carney joins Stripe board of directors
Blockchain1 week ago
Are Bitcoin’s long-term hodlers entering the seller’s market?
Blockchain1 week ago
Elon Musk Explains to Peter Schiff What Money Is
Blockchain1 week ago
Litecoin, Cosmos, Tezos Price Analysis: 21 February