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“Weak Hands” Have Been Shaken Out On The Bitcoin Crash To $10,000

Bitcoin price this past week collapsed from the 2020 high of over $12,400 to under $10,000. More than seven distinct drops to below $10,000 have been bought up already. During each plunge down, however, some of the weakest hands in the crypto market may have been shaken out, according to one uncommon metric. If that’s […]

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Bitcoin price this past week collapsed from the 2020 high of over $12,400 to under $10,000. More than seven distinct drops to below $10,000 have been bought up already.

During each plunge down, however, some of the weakest hands in the crypto market may have been shaken out, according to one uncommon metric. If that’s the case, and bulls can hold support, the last chance to buy the dip before new highs may already be upon us.

Weak Hands: Could The Latest Bitcoin Crash Be A Shakeout Before The Bull Run?

The term HODL, or hold on for dear life, was coined – no pun intended – to help crypto investors cope with the extreme price swings the asset class is known for.

Rather than risk being shaken out, or trying to trade BTC for a profit with mixed results, long-time crypto investors advocate simply holding strong for the long-term.

Since the Black Thursday market collapse, more and more investors had been doing just that, taking their BTC off of exchanges and moving them into cold storage or other means.

Related Reading | Don’t Panic: Crypto Market Collapse Was “Profit-Taking” and “Rebalancing”

Various metrics exist that pay attention to how much BTC is stored where, along with when and at what price it was purchased at. One such metric, the Spent Output Profit Ratio measures overall market profit and loss, and “represents the profit ratio of coins moved on-chain, measured through the variation between purchase price and sale price.”

Essentially, this metric tracks if any Bitcoin’s moved are doing so at a loss or gain. The SOPR indicator on glassnode, fell below Bitcoin price itself for the first time since April. This could indicate that “weak hands” were shaken out at a “small” loss, according to data scientist Rafael Schultze-Kraft.

Here’s Why Holding Strong Here Could Lead To A New Crypto Market Uptrend

While the selloff most certainly brought a return to fear across the crypto space, the price action could be a bullish retest of resistance turned support. SOPR holding at the same level as price action itself could confirm a trend change in favor of a bull market.

Related Reading | Bitcoin Crossroads Made Clear By Two Remaining Lines in The Sand 

This would suggest that the most recent crash was nothing more than a shakeout. Other analysts agree and say that the correction was healthy, and nothing more than regular profit-taking and portfolio rebalancing after such substantial returns in 2020.

If Bitcoin can hold, fundamental metrics like the SOPR and even technical analysis indicates a new, long-term uptrend taking shape.

bitcoin bullish market structure

BTCUSD Monthly Bullish Market Structure and Levels To Watch | Source: TradingView

Monthly Bitcoin price charts show that the recent shakeout is actually a bullish retest in progress. Not only is the cryptocurrency retesting horizontal resistance at $10,000 as support, but it’s also working on confirming the bear market downtrend line as support as well.

A breakdown and close below $9,250 could cause a full bearish reversal and a fall towards the bottom triangle trendline. This would also suggest that the breakout above the triangle trendline, was a false breakout and things could get dangerous.

False breakouts often lead to a breakdown in the other direction. A fall to below $4,500 could be the final nail in the crypto market’s coffin. However, with stats like the SOPR and dozens of technical indicators and chart formations so bullish, more signs point to a shakeout of weak hands, than smart sellers catching the top.

Source: https://www.newsbtc.com/2020/09/09/weak-hands-have-been-shaken-out-on-the-bitcoin-crash-to-10000/?utm_source=rss&utm_medium=rss&utm_campaign=weak-hands-have-been-shaken-out-on-the-bitcoin-crash-to-10000

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Blockchain

Cardano Price Analysis: 17 May

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At a time when other altcoins were stumbling, Cardano [ADA] witnessed significant growth. Although the price of the digital asset mirrored the correction in the Bitcoin market, the overall market still seemed to hold on to a high value.

At the time of press, ADA had lost 12% of its value since the peak and was currently being traded at $2.14 with a market capitalization of $69.31 billion.

Cardano hourly chart

Source: ADAUSD on TradingView

The above chart of Cardano shows the drops seen by the markets recently. Although the price dropped from a peak of $2.47, it has now managed to hold on to $2.13. Though the overall market looked strong, short-term indicators predicted a correction.

As the price traded right above the support at $2.10, a fall could push it under the level and close to the next immediate support at $2.02.

Reasoning

ADA market unlike many other altcoins markets was showing reduced volatility. Convergence of Bollinger bands was indicative of this trend. The signal line was moving lower, tracing the movement of the candlesticks.

As the price remained above the current support for a long time, there were chances that the price would breach support. The relative strength index was noting that selling pressure which was maintained close to 50 was now heading towards the oversold zone. The rise in selling pressure could push the price lower; however, Chaikin money flow suggested that the money that was leaving the market was now coming back in.

Crucial levels

Entry-level: $2.09
Take profit: $2.01
Stop level: $2.16
Risk to Reward: 1.04

Conclusion

The current Cardano market was suggesting that the consolidating price might be looking to correct again. The indicators were suggesting a rise in selling pressure, which could result in another fall. However, the buying pressure could result in a trend reversal as the CMF highlighted money entering the ADA market.


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Source: https://ambcrypto.com/cardano-price-analysis-17-may

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Blockchain

Legacy Records, The First Record Label Paying Music Artists In Crypto

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From painters to digital artists to musicians, crypto continues to find integration across artistic mediums. Music continues to be a field that is ripe for revitalization, from a business standpoint. Accordingly, a number of different musicians have been releasing songs and albums as NFTs. Now, we have what’s being reported as the first official record label looking to get involved. The label looks to have artists join the ranks of other musicians getting involved in crypto.

Two-Pronged Approach

In a press release issued to start this week, Legacy Records CEO Keishia McLeod said it came down to “either get involved or get left behind”. McLeod cited unique income stream opportunities for artists and closed by saying that “this is the future, not a trend”. McLeod has stated previously her intent to drive the label to be at the forefront of leveraging emerging technology in music.

There are two major buckets contributing to Legacy’s approach. The first is the most notable, as the label will become the first to offer artists an opportunity to receive their advance and royalty payments in the form of crypto. The second is to engage artists with NFTs, allowing fans to participate in auctions for unique content. The label’s specific plans around NFTs, and number of artists seeking to get paid in crypto, have not yet been disclosed.

Related Reading | The “Hottest” NFT: Max Denison Pender Creates And Destroys A Self-Portrait In A Volcano 

As the crypto market grows, both artists and businesses are getting involved | Source: CRYPTOCAP-TOTAL on TradingView.com

Legacy Music’s Broader Business Growth 

Las Vegas-based Legacy Records, not to be confused with Sony’s Legacy Recordings, will look to take advantage of the potential press buzz from the announcement. However, in tandem with the release, the label also announced a to-be-name music distributor who has also agreed to pay Legacy Records artists in bitcoin. The label also merged with New Jersey entertainment lawyer Navarro Gray’s ‘The Gray Firm’, to provide legal guidance around digital execution.

McLeod has noted previously that the label has desired being a mainstay in revolutionizing the way music artists do business. In a January interview with the LA Tribune, McLeod cited Netflix’s impact on the film industry, adding that “we haven’t seen that yet in this industry, but it’s coming. We’re going to be a large part of making that happen”.

Related Reading | Reviewing Topps MLB’s First Swing At NFT Tech

Music Artists Emerging Into Crypto

Legacy’s roster has the potential to join a growing list of music artists that continue to engage with crypto and NFTs. Last month, we wrote about long-time hip-hop artist Eminem partnering with Nifty Gateway to release original instrumental beats. Saturday Night Live promptly had a sketch explaining the digital collectibles parodying Eminem’s “Without Me”.

Other musicians engaging with NFTs include DJ Premier, 3LAU, The Weeknd, Linkin Park’s Mike Shinoda, and more.

Each week, our team recaps the week’s NFT action with ‘NFTs In A Nutshell‘ – covering everything NFT, from sport, music, and more.

Featured image from Pixabay, Charts from TradingView.com

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Source: https://bitcoinist.com/the-first-record-label-paying-music-artists-in-crypto/?utm_source=rss&utm_medium=rss&utm_campaign=the-first-record-label-paying-music-artists-in-crypto

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Blockchain

XRP, Dogecoin, Chainlink Price Analysis: 17 May

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Dogecoin required to counter bearish conditions before a jump above $0.569 resistance. Lastly, Chainlink needed to push above $45.5 to trigger a bullish comeback after a descending triangle breakdown.

XRP

Source: XRP/USD, TradingView

Gains made over the last three days were impressive especially considering a bearish broader market, but sellers returned at $1.52-resistance. At press time, the cryptocurrency traded within the channel $1.52-$1.31 and reflected a degree of equilibrium between the buyers and sellers. For those hoping to make profits from a volatile XRP market, ADX’s movement dimmed expectations. Since mid-April, ADX has been on a steady decline and a period of consolidation seemed likely.

RSI hovered in the neutral territory around 50. A symmetrical triangle awaited a breakout to the upside and the Fibonacci tool presented a few target levels above the 200% extension level north of $3 (not shown).

Dogecoin [DOGE]

Source: DOGE/USD, TradingView

On the daily timeframe, Dogecoin showed some sideways movement as bulls prepared for the next upswing. The channel between $0.523 and $0.373 was bolstered by the 20-SMA (blue) and formed a reliable buy zone should another dip occur.

As mentioned earlier, breaking above $0.569 resistance could trigger another rally in the DOGE market. Steering clear of $0.73-resistance would heighten the chances of DOGE touching $1. However, bearish conditions still presided and had to be countered first before any talks of an upswing. Awesome Oscillator noted bearish pressure after a series of red bars. MACD line remained below the Signal line but a bullish crossover could signal the onset of an uptrend.

Chainlink [LINK]

Source: LINK/USD, TradingView

Chainlink broke south from a descending triangle and a single candlewick dropped as low as $35.1- representing losses of 14% from the bottom trendline. Now below its 50-SMA (yellow) on the daily timeframe, bearish sentiment could lead to another sell-off towards $31 for LINK. On the other hand, some buying volume was noted on the 4-hour timeframe. A pickup in volumes and buying pressure could lead to a resurgence above $45.5 and this would likely push LINK beyond $50. A broader market recovery could act as a catalyst for such a price swing.

Meanwhile, RSI’s lower highs confirmed weakness after LINK formed a peak at $52.9. Even though Chaikin Money Flow dipped over the past couple of days, the index was still well above the half-line as capital inflows outmatched outflows.


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Source: https://ambcrypto.com/xrp-dogecoin-chainlink-price-analysis-17-may

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