Bitcoin’s (BTC) hesitation near the all-time high suggests that the bulls and the bears are waiting for a trigger to start the next trending move.
The bulls are searching for a positive catalyst to thrust the price above the overhead resistance. On the contrary, the bears may be standing by in anticipation of any signs of weakness that could confirm a short-term top.
The event that may act as a trigger is the Nasdaq listing for Coinbase’s COIN stock on April 14. A successful listing is likely to be cheered by the crypto bulls because that could signal increased crypto adoption by traditional investors in the future. Conversely, a tepid reception to the Coinbase listing could embolden the bears.
Onchain indicator HODL waves suggests that both the long-term investors and the short-term speculators are not booking profits as they expect higher levels in the future. An increase in the number of HODLers is generally a bullish sign but could become an overhang if fresh money dries up and the market starts to reverse direction.
If that happens, the short-term speculators are likely to panic first and dump their positions. That may hit stops of the swing traders and intensify the selling, paving way for a deeper correction.
As markets wait for a trigger, let’s analyze the charts of the top-5 cryptocurrencies that could benefit from a bullish sentiment.
Bitcoin soared above the $60,000 overhead resistance on April 10 and reached $61,301.21, just short of the all-time high at $61,825.84. However, the bulls continue to find difficulty in keeping the price above $60,000, indicating stiff resistance from the bears.
The price has yet to close above $60,000 which means the inverse head and shoulders pattern is still not complete.
The bears will try to capitalize on the small window of opportunity and pull the price down to the 20-day exponential moving average ($57,513). A strong bounce off this support will increase the possibility of a break above $61,825.84.
If that happens, the BTC/USDT pair could start the next leg of the uptrend that could push the price to $69,540 and then $79,566.
On the other hand, if the bears sink the price below the 20-day EMA, the pair could challenge the critical support at the 50-day simple moving average ($54,723). A break below this support will be the first indication of a possible change in trend.
The 4-hour chart shows the bears are active above $60,000. However, the positive sign is that the bulls have not allowed the price to sustain below the 20-EMA. This means the bulls are buying on every minor dip.
If the bulls can once again push the price above $60,000, the pair may challenge the all-time high. On the contrary, if the bears sink the price below the 20-EMA, a drop to $57,600 is possible. If this support cracks, the next stop could be $55,600.
Stellar Lumens (XLM) broke above the $0.60 resistance today and rose to a new 52-week high at $0.65. Whenever an asset hits a new 52-week high, it is a sign of strength because it shows that traders are in a hurry to buy as they expect the price to rise further.
The upsloping 20-day EMA ($0.46) and the relative strength index (RSI) in the overbought territory suggest the bulls have the upper hand. If the bulls can propel the price above $0.65, the XLM/USDT pair could start the next leg of the uptrend that could reach $0.72 and then $0.85.
However, the long wick on today’s candlestick suggests that the bears have other plans. They are trying to trap the aggressive bulls and pull the price back below $0.60. If the bulls do not allow the price to dip below $0.55, it will suggest accumulation on dips. That will keep the sentiment positive.
Contrary to this assumption, if the bears sink the price below $0.55, a drop to the 20-day EMA is possible. A break below this support will indicate that the bulls have lost their grip.
The 4-hour chart shows the pair closed above $0.60 but the bulls could not build upon this strength. The bears pounced on the opportunity and have pulled the price back below the breakout level at $0.60.
However, if the bears fail to sink the price to the 20-EMA, it will suggest the bulls are accumulating on dips. That will increase the possibility of the resumption of the up-move. Conversely, a break below the 20-day EMA may tilt the advantage in favor of the bears.
IOTA (MIOTA) is in an uptrend. The bulls pushed the price above the psychologically important level at $2 on April 10. If bulls can sustain the breakout, the up-move could reach the next target objective at $2.35 and then $2.60.
The upsloping 20-day EMA ($1.66) and the RSI near the overbought zone suggest the bulls have the upper hand.
However, if the bulls fail to sustain the price above $2, the bears may try to pull the price down to the 20-day EMA. The bulls have successfully defended this support since the start of the current leg of the rally in March.
Hence, if the price again rebounds off the 20-day EMA, it will suggest the sentiment remains positive and the bulls are buying on dips. Alternatively, a break below the 20-day EMA will suggest that the bears are making a comeback.
The 4-hour chart shows profit-booking above $2. The MIOTA/USDT pair could now drop to the 20-EMA, which is sloping up. If the price rebounds off this level, it will enhance the prospects of the resumption of the uptrend.
On the contrary, if the bears sink the price below the 20-EMA, the pair could extend its decline to the 50-SMA. Such a deep correction could delay the start of the next leg of the up-move.
Monero (XMR) broke above the $268.60 resistance on April 10, indicating the possible resumption of the uptrend. If the bulls can sustain the breakout, the altcoin could rally to the next target objective at $334 and then $384.
The rising 20-day EMA ($258) and the RSI above 75 suggest the path of least resistance is to the upside.
However, if the bulls fail to sustain the price above $288.60, the XMR/USDT pair could drop to the 20-day EMA. A strong bounce off this support will suggest the sentiment remains positive and the bulls are buying on dips. The bulls will then make one more attempt to resume the uptrend.
On the other hand, if the bears sink the price below the 20-day EMA, it will suggest a possible change in sentiment. That could result in a drop to the 50-day SMA ($232).
The 4-hour chart shows the bears attempted to stall the rally near the psychological resistance at $300 but the bulls did not give up much ground. They purchased the dip to the 20-EMA and pushed the price above $300.
The rising moving averages and the RSI near the overbought zone suggest the bulls are in control.
This positive view will invalidate if the price turns down and breaks below the moving averages. Such a move will indicate the demand has dried up and traders are booking profits. That could pull the price down to $250.
Tezos (XTZ) is in a strong uptrend. It broke above the stiff overhead resistance at $5.64 on April 5 and completed a successful retest of the breakout level on April 7 and 8. The altcoin resumed its uptrend and made a new all-time high at $7.21 on April 10.
The 20-day EMA ($5.42) is sloping up and the RSI is near the overbought territory, indicating advantage to the bulls. In a strong uptrend, corrections usually last between one to three days as traders buy every minor dip aggressively.
The long tail on today’s candlestick suggests traders are buying at lower levels. If they can drive the price above $7.21, the XTZ/USDT pair could rally to the next target objective at $8.14.
The major support on the downside is the 20-day EMA. If the price rebounds off this support, it will suggest the sentiment remains bullish. The buyers will then again try to push the price above $7.21. Conversely, a break below the 20-day EMA will suggest the bullish momentum has weakened.
The 4-hour chart shows the bulls are trying to arrest the pullback at the 20-EMA. If they can push the price above $6.85, a retest of $7.21 is possible. A breakout of this resistance will start the next leg of the up-move.
Contrary to this assumption, if the pair breaks and sustains below the 20-EMA, it may drop to the 50-SMA. The bulls are likely to defend this support aggressively because the price has not dipped below the 50-SMA since March 29.
However, if the bulls fail to arrest the decline at the 50-SMA, the slide could extend to $5.40 and then to $4.60.
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.
Unlike Dogecoin, Catecoin Gives a New Meaning to Meme Coins with Real Use case
In the present-day connected world, memes have become an integral part of our pop culture. While one can’t put a monetary value on the entertainment they provide, its creators can definitely be encouraged and rewarded for their contribution towards a lively internet.
Catecoin, the first decentralized meme-based token is trying to do just by incentivizing content creators as well as consumers. The project is the first of its kind to implement DeFi features in the content space. Fueled by the CATE token, the project offers a platform for user-generated content, quite similar to 9GAG but on a blockchain, along with content farming and staking features.
How does it work?
Using the Catecoin ecosystem is as simple as using any social network platform. Content creators can submit their creations to the Catecoin Meme Platform and once published they will start earning CATE rewards as the community likes or comments on that content. Even platform users who interact with the posts will receive rewards for their comments and likes.
Meanwhile, the posts are evaluated based on the received reactions. Any post with 500 or more likes from the community will become eligible for a transformation into an NFT and get listed on the NFT market. Catecoin refers to this entire process as Content Farming and has set aside 35% of CATE supply for this alone.
CATE is the utility token of the Binance Smart Chain-based Catecoin project. Apart from value exchange, these tokens also control the accessibility of the platform. Users should hold a minimum of 10,000 CATE to interact with any posts on the platform. Similarly, content creators will have to maintain a balance of 100,000 CATE to be able to submit their works to the platform.
While each like or comment will result in both content creators and consumers receiving 0.1 CATE each, the community can also earn additional returns by just holding the tokens. The platform shares one percent of each transaction made on the network with CATE holders, and at the same time burns the same amount to regulate supply.
Once a meme gets converted to NFT and lists on the NFT market, anyone can purchase it and start receiving any rewards the asset may generate in the future.
Get some CATE, it is simple
In just a few simple steps, one can become part of the Catecoin community early on. CATE is listed on PancakeSwap and users can acquire the tokens against BNB payment. Buying CATE will require users to download and set up Trust Wallet and MetaMask accounts and hold some BNB in their wallets. They can then visit PancakeSwap, make payment in BNB to the Catecoin token 0x118f073796821da3e9901061b05c0b36377b877e and receive the tokens in their connected wallet.
— CateCoin (@cateclub) May 13, 2021
What Makes CATE Different?
The flood of meme coins into the crypto market started long ago, and Dogecoin is the prime example. Many of these coins have a virtually unlimited supply and no real use cases. On the other hand, CATE has a definite supply of 100 trillion and a deflationary mechanism that reduces the supply by 0.5%-1% per transaction while providing a real-world use case – encouraging meme creators to monetize their content. The model adopted by Catecoin makes it the most sustainable meme project out there.
Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn’t Sold Any Bitcoin
Elon Musk has been dragged under the bus by countless bitcoin proponents as the price of the flagship currency continues to take a downward movement. Bitcoin dropped 20%, sending prices to $45,000 as of yesterday.
As of publication, Bitcoin imitates analysts’ predictions that the asset could continue to dip for the most part of this week, and with Bitcoin now trading at $45,065 at press time, their analysis remains valid.
The Bitcoin selloff continues
Asides from the “bearish” tweets from Musk, which to many is simply just the Billionaire’s expression of his dissatisfaction with Bitcoin, Bitcoin could sustain more losses if Tesla sold its remaining Bitcoin holdings.
Following Tesla’s announcement, onlookers spotted a Bitcoin transfer of 19,259, worth over $872 million at press time. Analyst William Clemente observed that the transfer time coincided with Musk’s tweet, hinting that Tesla may have indeed called it a day for Bitcoin.
Musk reveals Tesla’s $1.5 billion holdings still intact, prices soar
However, Musk has recently cleared the air on whether the Bitcoin holdings are still under Tesla’s belt. In what could be considered the most recent positive tweet from Musk on Bitcoin, he wrote “To clarify speculation, Tesla has not sold any Bitcoin.”
Some excited Bitcoiners are holding on to the news as a sign that Tesla has not lost all interest in Bitcoin, despite Musk’s tweets that Dogecoin is a superior asset to Bitcoin. On the other hand, skeptical Bitcoiners are convinced that in a matter of time, Tesla will pull through with its Bitcoin sale.
Recall that Elon Musk teased that this could be the case, given that Bitcoin proponents have continued to critique Tesla’s decision. Shortly after hinting that Tesla might give up its $1.5 billion Bitcoin holdings.
However, Bitcoin has since surged by 7% since Musk’s clarification on Tesla’s Bitcoin holdings.
Bitcoin doesn’t need Elon Musk
Meanwhile, analysts’ who heavily bought the dip have insisted that Bitcoiners pay no mind to the bear market.
In unison, key players agree that “Bitcoin doesn’t need Musk. Rather, Musk needs Bitcoin.” It is unclear where the market is headed going forward, but the sentiments from top Bitcoin proponents similarly claim that the bear trend is only temporary, as Bitcoin is still yet to bottom.
Elon Musk tweets BTC price bottom? 5 things to watch in Bitcoin this week
Bitcoin (BTC) is nearing $40,000 this week as “Dogefather” Elon Musk deals out pure pain to hodlers — what’s next?
After a traumatic weekend for many crypto investors, Monday is setting the stage for the next chapter in the wild 2021 bull market.
Cointlegraph takes a look at five factors which could shape what Bitcoin and altcoins do next.
Musk tweet hits key Bitcoin technical level
It’s all about one man yet again this week: Elon Musk. In characteristic fashion, the Tesla and SpaceX CEO caused uproar on Twitter when he came out bearish on Bitcoin.
BTC/USD sold off immediately on news that Tesla was halting BTC payments for its products, but for Musk, this was not enough.
Further tweets over the weekend, including criticism of Bitcoin’s decentralization and how he “believes in crypto,” added fuel to the fire.
It was a hint that Tesla may already be planning to sell its holdings, however, that caused the most misery. Bitcoin fell to near $42,000, retesting this previous all-time high level before steadying as Musk stressed that no sale had occurred.
“To clarify speculation, Tesla has not sold any Bitcoin,” he wrote on Monday.
With Musk versus the cryptocurrency community beginning to look like a full on war, Bitcoin is thus unsurprisingly volatile as all eyes remain on the Twitter battlefield.
At the time of writing, Bitcoin was trading at around $44,800, still down 8.7% over the past 24 hours.
As analyst Alex Krueger noted, however, the clarifitication tweet may be unwittingly acting as a local bottom signal, as Musk posted it just as BTC/USD hit a key 61.8 Fibonacci retracement level.
“Elon Musk must be an outstanding technical analyst,” he commented.
“His ‘Tesla has not sold any Bitcoin’ tweet was posted exactly at Bitcoin’s key technical level, the 61.8 fib ($42,845).”
BTC dominance falls below 40%
Musk’s activities have had a detrimental impact on Bitcoin and altcoins alike.
In terms of bearishness, however, nothing shows how much the average Bitcoin holder is suffering like market dominance.
On Monday, Bitcoin’s overall market cap share dipped below 40% for the first time since June 2018.
Already on the way out, dominance was dealt a significant blow thanks to the recent Bitcoin price pressure, while alts such as Ether (ETH) benefitted.
“The Bitcoin dominance is still falling,” popular Twitter trader The Moon summarized over the weekend.
“The alt season is not over yet. But my gut feeling is that the end is near!”
Bitcoin fundamentals provide calm
For all the nerveracking price action, meanwhile, nothing provides a bullish counterpoint to the current Bitcoin narrative than its network fundamentals.
Even after its $42,000 dip, Bitcoin is more attractive than ever for miners, and its network security is therefore also more solid than ever before.
As Cointelegraph reported, both hash rate and difficulty have staged a miraculous recovery in recent weeks, reclaiming all-time highs after a miner washout caused its own brief price crash.
The weekend proved to be no different, with weekly average hash rate topping 180 exahashes per second (EH/s) for the first time.
Difficulty is still on track to increase by over 10% at the next automated readjustment in 11 days’ time. The previous readjustment on May 14, at 21.5%, was the largest positive shift since June 2014.
“Bitcoin’s mining difficulty hitting an all-time high just after tesla’s announcement is a chef’s kiss,” Alex Thorn, head of firmwide research at crypto merchant bank Galaxy Digital, said last week.
Dollar bounces at support
Taking a break for crypto-specific triggers, the wider macro picture may yet provide some inspiration for price trajectory.
After plunging late last week, the strength of the U.S. dollar is returning. The U.S. dollar currency index (DXY) is bouncing off familiar support — surges in its strength tends to provide teething problems for BTC/USD.
At the same time, stocks are bullish in China but performing averagely in Europe and the U.S. Coronavirus, with localized peaks in some jurisdictions but fewer cases in others, joins the melting pot.
Among traders, however, it is inflation that is a key issue. A broad global rebound from the time of lockdowns and other restrictions creates problems for those attempting to engineer it — specifically, the U.S. Federal Reserve and other central banks.
“The global economic recovery is well under way; that’s what’s fueling the inflation fears,” Olivier d’Assier, Qontigo head of APAC applied research, told Bloomberg.
After stock markets’ rip roaring year, he added, appetite for profit taking will be understandably increasing.
Bitcoin still beats its last bull market
Is it 2013 or 2017 in terms of the Bitcoin bull market?
Among the industry’s best-known names, there is no hint of bearishness — all that remains to do is analyze the nature of the current retracement and compare it to years past.
This week, stock-to-flow creator PlanB notes that for all the Musk drama, Bitcoin is still performing better than during its 2017 run to $20,000. This despite the $42,000 dip officially being Bitcoin’s biggest this bull cycle and since the cross-asset crash of March 2020.
“It’s not a straight line to the next ATH, but a lot of volatility (multiple -30% dips). HODL.”
Calling for calm and zooming out is a key feature among seasoned Bitcoiners. As Cointelegraph reported last week, stock-to-flow remains unviolated by Musk or any other episode of downward volatility.
An accompanying survey meanwhile revealed that a majority of 35,000 respondents believe that BTC/USD will still hit $100,000 this year.
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