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Bitcoin Stuck In $7,000s: Analysts Claim BTC Could Collapse To The $5,000s

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Bitcoin Technicals Hint At Impending Pullback


At last, upward momentum for Bitcoin (BTC) has finally begun to slow. During this bout of non-action, analysts across the board have been doing their best to determine what’s next for the cryptocurrency market. And interestingly, many are coming to the conclusion that BTC, alongside its altcoin ilk, will soon fall, looking to technical factors to back their harrowing cries.

In a recent tweet, Nunya Bizniz, an astute trader and analyst, noted that Bitcoin’s three-day Relative Strength Index (RSI) reading has been a relatively good way to gauge trends, especially when to purchase or sell Bitcoin. He notes that throughout the digital currency’s history as a tradable, liquid asset, buying when the RSI is around 30 has turned out well most of the time, as such levels were only seen to precede bull runs.

Bizniz adds that historically, it has been best to sell when the RSI breached 88. The four last times this indicator breached that level, meaning the asset was well oversold, parabolic drawdowns were seen. In the most recent case, Bitcoin fell from $20,000 to $3,150, a collapse that many investors now cringe at. With the RSI reading now moving above 88, Bizniz suggests that another dramatic decline could be seen.

What’s more, Bizniz notes that Bitcoin’s chart from the market bottom in December to now is now almost essentially identical to that seen in 2015, which was something that was postulated over recent weeks. The analyst notes that while a bull run is most likely on, there may be a correction of around 40%, which would place BTC back in the $4,000s or $5,000s.

Some have been a bit less cynical in their predictions. Josh Rager of Level recently noted that if history repeats, a strong pullback of “at least 30%” from a previous accumulation and uptrend will soon be seen. This is because even during Bitcoin’s 2017 boom, common 30% drawdowns were seen, like when the asset shed thousands in a single week due to the now-infamous “China FUD”.

A 30% move from here would bring BTC to the $5,000 range.

Why Moving Higher From Here Isn’t Impossible

The thing is, market dynamics are very different now than 2013, 2015, or even 2017 or 2018. As Dan Held, the co-founder of Interchange, recently pointed out, the ecosystem’s fundamentals and infrastructure are much stronger now than in 2017 or 2018, sans mining costs.

Case in point, the industry has some of the biggest names in finance and technology delving in. Square, through its Cash App and chief executive Jack Dorsey; Fidelity Investments; E*Trade, Bakkt, and ErisX are among the developments in the space that make this rally entirely different than anything before it. Thus, some deem it logical that warnings of a large market correction can be deemed moot.

Title Image Courtesy of Chris Liverani Via Unsplash

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NYSE files a trademark application for trading NFTs

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The world’s largest stock exchange may be planning to bring business into the Metaverse.

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Traders say $4,000 Ethereum back on the cards ‘if’ this bullish chart pattern plays out

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Global tensions that could trigger a correction in markets abound, but traders say ETH’s current setup could result in a swift return to the $4,000 level.

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CryptoPunks community reacts to the ongoing copyright battle between V1 and V2

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Although the collection is no longer deemed authentic by Larva Labs, its creators alleged sold 210 ETH worth of CryptoPunks V1 when the wrapped versions first gained traction.

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Binance.US is under investigation from SEC over trading affiliates: Report

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Binance CEO Changpeng Zhao allegedly has connections to two market makers buying and selling crypto on Binance.US.

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Boost Insurance unveils product covering against crypto theft from qualified custodians

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Boost Insurance, an insurance infrastructure-as-a-service platform, alongside go-to-market partner, Breach Insurance, a company that provides insurance technology and regulated insurance products for the cryptocurrency market, today announced the launch of Crypto Shield, an insurance product for cryptocurrency available to retail wallet holders.

Crypto Shield covers the theft of cryptocurrency while in the custody of a qualified custodian.

The Crypto Shield product allows individuals to purchase protection for their crypto wallets held by select custodians. In the case that the custodian is breached or suffers a social engineering attack resulting in lost assets, individuals insured under Crypto Shield can be reimbursed for the value of their policy.

Boost + Breach

While there is some commercial insurance available to cryptocurrency institutions, Breach envisioned Crypto Shield as a solution to the protection gap that currently exists for individuals holding crypto, securing a partnership with Boost to assist in bringing the Crypto Shield product to life.

Boost’s insurance infrastructure-as-a-service packages the necessary operational, technological, compliance, and capital requirements for new insurance programs into a white-label solution, enabling insurtechs like Breach to swiftly launch new lines of business.

“Boost’s deep expertise and insurance infrastructure-as-a-service platform, and Relm’s industry-leading crypto reinsurance capabilities, have positioned Breach to bring a highly complex insurance product to the market in a beautifully delivered customer experience.”
– Eyhab Aejaz, Co-Founder & CEO at Breach

To deliver that product in a seamless experience, Boost and Breach’s platforms connect via API, allowing Boost’s policy administration system to deliver back-end management for the Crypto Shield product. Breach’s customers are then able to purchase and manage every part of their policy and claims process, all from within Breach’s proprietary crypto insurance platform.

“With Boost’s infrastructure-as-a-service platform, companies like Breach can launch and deliver innovative new insurance offerings, at a fraction of the time and cost required to build a full-stack insurance program from scratch.”
– Alex Maffeo, CEO & Founder of Boost

In addition to powering the new product, Boost and Breach partnered to source and secure the necessary reinsurance backing from industry expert Relm Insurance Ltd. (Relm), underwritten by Trisura Specialty Insurance Company. Operating out of Bermuda, Relm is a capacity provider to the crypto sector with a track record of insuring companies across the ecosystem. Relm has recently been awarded an ‘A Exceptional’ Financial Stability Rating (FSR) by Demotech.

“Relm’s partnership with Boost and Breach to reinsure the US’s first cryptocurrency insurance product for retail wallet holders is a milestone in supporting the development of crypto and blockchain technologies.”
– Joe Ziolkowski, CEO at Relm

The post Boost Insurance unveils product covering against crypto theft from qualified custodians appeared first on CryptoNinjas.

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