Bitcoin (BTC) has long been touted as digital gold by crypto enthusiasts. Now as the digital asset faces its first economic crisis since its birth, Bitcoin has validated the narrative and outperformed gold by a large margin in 2020. This suggests two important things, Bitcoin is here to stay and it is a better bet than gold.
Some popular traditional investors have already jumped on the Bitcoin bandwagon and analysts at Whalemap believe that institutions have been the primary buyers in the $12,000 to $15,000 range.
The over-the-counter trading desk at Galaxy Digital also reported an increase in trading volumes by the institutional investors. The company’s CEO Mike Novogratz and head of sales Tim Plakas, both showed confidence that more traditional investors and funds could enter the crypto space in 2021.
While most investors seem to be bullish on Bitcoin, on-chain data suggests that some whales believe that the rally could have topped out in the short-term, hence, they have turned into sellers.
Let’s analyze the charts of the top-five cryptocurrencies to determine whether the rally may continue for some more time or is a short-term top around the corner.
Bitcoin (BTC) has not closed below the 10-week exponential moving average ($15,613) since Oct. 8. This shows that the trend is strong and the bulls have been buying on every minor dip without waiting for a larger correction.
The upsloping moving averages and the relative strength index in the overbought territory suggest that bulls are in control. The buyers are currently attempting to sustain the price above the immediate support at $16,000.
If they succeed, the BTC/USD pair could resume its uptrend with the next target objective at $17,200.
Conversely, if the pair drops below the 10-day EMA, it will suggest profit booking by traders at higher levels. There is a minor support at $14,800 but if that also cracks, the correction could extend to $14,000.
The 10-EMA on the 4-hour chart has flattened out and the RSI is close to the midpoint, which suggests a balance between supply and demand. The bearish divergence on the RSI warns of weakening momentum.
If the bears can drag the price below the 50-simple moving average, a drop to $14,800 and then to $14,400 is possible.
Contrary to this assumption, if the price rebounds off the current levels or from the 50-SMA and rises above $16,500, the next leg of the uptrend could begin.
Ether (ETH) has turned around from $478.058 on Nov. 13, which is just below the stiff overhead resistance at $488.134 where the previous rally had topped out on Sep. 1. It is usual to expect some amount of profit booking near the resistance.
However, if the bulls do not allow the ETH/USD pair to give up much ground, it will increase the possibility of a breakout of $488.134. Above this level, the bears may again try to stall the rally at the psychological level at $500.
If the bulls can thrust the price above the $488.134 to $500 resistance zone, the rally may extend to $550. The upsloping moving averages and the RSI in the positive zone, suggest advantage to the bulls.
This positive view will be invalidated if the price breaks below the 10-day EMA. If that happens, the pair may drop to $420 and then to $400. Such a move could point to a possible range formation in the short-term.
The 4-hour chart shows that the pair has broken below the support line of the rising wedge pattern and the RSI has also formed a bearish divergence.
Moreover, the downsloping 10-EMA and the RSI in the negative zone, suggest that bears have the upper hand.
If the pair sustains below the 50-SMA, a fall to $440 and then to $424 is possible. This short-term bearish view will be negated if the price turns around and rises above $478.058.
XRP had been stuck in a range between $0.23 to $0.26 for over two months. The range resolved to the upside with a strong breakout of $0.26 on Nov. 13. However, the bears are unlikely to give up without a fight.
The tussle between the bulls and the bears could pull the price down to the breakout level of $0.26. If the bulls purchase this dip and the price rebounds off the breakout level, it will suggest that traders are buying as they anticipate higher levels in the future.
The upsloping 10-day EMA ($0.258) and the RSI in the positive territory suggest that bulls have the upper hand. The next target on the upside is $0.30.
Contrary to this assumption, if the bears pull the XRP/USD pair back below $0.26, it could catch several aggressive bulls off guard who may then have to liquidate their positions in a hurry.
The ensuing panic selling could sink the pair below the 50-day SMA ($0.248) and keep it range-bound for a few more days.
The moving averages on the 4-hour chart are sloping up and the RSI is above 59, suggesting the advantage is with the bulls.
If the pair rebounds off the current levels, it will indicate that the bulls are buying on dips to the 10-EMA, which shows that the sentiment has turned bullish.
Contrary to this assumption, if the bears sink the price below the 10-EMA, a retest of $0.26 will be on the cards. If the price breaks and sustains below this support, it will suggest that bears have made a comeback.
Monero (XMR) had been in a correction since topping out on Oct. 26. The bulls pushed the altcoin above the downtrend line on Nov. 10 and are currently attempting to propel the price above the $118.10 to $120.7773 resistance zone.
If they succeed, the XMR/USD pair could move up to $128 and if this level is also scaled, the rally may extend to $139.2885. The 10-day EMA ($115) has flattened out and the RSI is just below the midpoint, which suggests that the selling pressure has reduced.
This bullish view will be invalidated if the price turns down from the current levels or the overhead resistance zone and plummets back below $110. Such a move could drag the price down to $104.
The 4-hour chart shows the formation of an ascending triangle pattern that will complete on a breakout and close above $118.10. This bullish setup has a target objective of $132.90.
On the other hand, if the bears sink the price below the support line of the triangle, it will invalidate the bullish setup and could drag the price down to $110.
Both moving averages are flat and the RSI is just above the midpoint, which suggests a balance between supply and demand. The break above or below the triangle could start the next short-term trending move.
Uniswap (UNI) bottomed out at $1.7563 on Nov. 5 and since then embarked on a strong uptrend. The up-move in the past few days has resulted in a rally of over 136%.
The 10-day EMA ($3.27) has turned up and the RSI has risen from close to the oversold zone to the overbought territory. This suggests that the bulls are back in the game. They will now try to push the price to the psychological level of $5.
This level may act as a resistance as the bears will try to stall the up-move in the $5 to $5.55 zone. However, if the bulls do not give up much ground from this zone, then the uptrend could continue.
The first sign of weakness will be a break below the 10-day EMA. Such a move will suggest profit booking by the short-term traders and shorting by the aggressive bears.
The 4-hour chart shows that both moving averages are sloping up and the RSI is in the overbought zone. This suggests that the bulls are in control. The immediate resistance is at $4.50 where the bears may try to stall the rally.
If the bulls defend the 10-EMA on the downside, it will suggest that the momentum still favors the bulls. This positive view could be invalidated if the price turns down and sustains below the $3.50 support.
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.
Binance Coin reaches 37% of Ethereum’s market cap: 3 reasons why BNB is soaring
Binance Coin (BNB), the native cryptocurrency of Binance Smart Chain, has been rallying after seeing an uptick in transaction volume.
Binance Coin, the native cryptocurrency of Binance Smart Chain, has been surging with a massive uptick in transaction volume.
Binance Coin (BNB), the native cryptocurrency of Binance Smart Chain and top digital asset exchange Binance, is starting to close in on Ethereum (ETH) in market capitalization.
As of April 12, BNB is valued at $87 billion at the price of just under $600. The valuation of Ethereum is hovering at around $246 billion, which is 2.8 fold larger than that of Binance Coin.
— Joe Grech (@JoeBGrech) April 12, 2021
The technical momentum of BNB has been so strong that it briefly surpassed the volume of the BTC/USDT pair on Binance.
This trend is significant because USDT is the biggest stablecoin in the global market and the BTC/USDT pair is one of the most liquid trading pairs in crypto.
Why is Binance Coin surging so hard?
Binance Coin has been rising due to the three key reasons: an overall uptick in the popularity of Binance Smart Chain, strong technical momentum, and the gap between BSC and Ethereum projects.
Binance Smart Chain transaction volume. Source: BSCScan.io
In recent weeks, the transaction volume on Binance Smart Chain has tripled the volume of the Ethereum blockchain.
Particularly in Southeast Asia, the usage of Binance Smart Chain has been rising, according to Coin98, the biggest venture capital firm in Vietnam that is building a DeFi ecosystem targeted at Asia.
Considering that the price of BNB was much lower than Ethereum until late March, this discrepancy between BNB and ETH likely made BNB a compelling trade.
There is also a big gap in valuations between the Ethereum DeFi ecosystem and Binance Smart Chain, which has been fueling a large portion of the demand for BSC projects.
This has caused the value of BNB to rapidly rise over the past two weeks while ETH has been relatively stable at just over $2,000.
A journalist who covers crypto in China known as “Wu Blockchain” explained:
“BNB broke through an astonishing $600, but Ethereum’s Fees fell to its lowest point in a month. Although the transaction volume of BSC is 3x that of Ethereum, the two are not in a competitive relationship. The top 10 addresses of BNB hold more than 88%, and Eth is 20%. The future of Ethereum depends on the upgrade of EIP-1559 and 2.0. The only two things Binance needs to worry about are the government suppression and hackers.”
Traders foresee BNB to undergo a more explosive rally in the foreseeable future if it breaks out against Bitcoin.
Kaleo, a pseudonymous cryptocurrency trader, said:
“$BNB breaking above this level on the $BTC pair could lead to the type of explosive momentum needed to actually close in on $1,000.”BSC/BTC 1-day price chart (Binance). Source: TradingView.com, KaleoWill the capital rotate back into Ethereum?
However, Kelvin Koh, the managing partner at Spartan Group, one of the largest DeFi-focused funds in Asia, said that for now, he expects the capital to rotate back into Ethereum as BSC projects near the valuation of ETH equivalents.
He emphasized that there is a huge valuation gap between BSC and ETH projects. This gap could be making BSC projects compelling to the market. He said:
“BSC is having its own DeFi summer….so much alpha to be discovered in BSC ($XVS, $CAKE). If you are wondering why Ethereum DeFi coins are lacklustre, its because of the huge valuation gap that still exists between the BSC coins and ETH equivalents. Until this gap closes, money isn’t rotating back to ETH DeFi coins.”
Our Man in Shanghai: Scandal as $45M of stolen government funds lost using 100X leverage
A blockchain security company’s future is in doubt after its CMO allegedly lost $45M betting on Bitcoin; Chinese netizens turn the other cheek to Peter Thiel’s warnings, and more
The Chief Marketing Officer a blockchain security company has been charged with embezzlement; Peter Thiel calls Bitcoin a ‘weapon’ of China (but no one cares), and CZ’s net worth rises to $1.9 billion.
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Blockchain security company Beosin has been the focus of a major scandal after its Chief Marketing Officer Gao Ziyang was taken into custody and charged with embezzlement of state-owned assets. He is alleged to have been using government funds to unsuccessfully short BTC, resulting in a massive liquidation of over 300 million renminbi, or $45 million dollars.
Beosin, also known as Lianan Tech, had a working relationship with Chinese authorities and was helping them investigate fraudulent fundraising schemes. After the seizure of funds back in 2020, Beosin was tasked with storing and selling the assets, to be later returned to the state treasury. Instead of selling the assets, CMO Gao Ziyang allegedly opened a short position in late August, hoping to increase the size of the positions for personal gain. At the time, BTC was trading around $12,000.
Authorities say that records obtained from OKEx show the position began using 10x leverage, before increasing to 100x, and eventually ended up in liquidation. They began to ask about the whereabouts of the funds, before finally realizing that the assets were no longer in the wallet. Online, people have marveled at the age of Gao Ziyang, who was described as in his twenties. The future of Beosin, which was once regarded as a credible blockchain security company in China, is now in serious doubt.
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On Thursday, Binance founder Zhao Changpeng, better known as CZ, appeared as #1664 on Forbes’s annual billionaire list. His net worth is now listed at $1.9 billion, an increase of $700 million from the last list in 2020.
Nanjing Ribensi bought by US company
US Company Future FinTech announced earlier this week that they had agreed to a deal to acquire China-based mining company Nanjing Ribensi Electronic Technology Co. Nanjing Ribensi operates a mining farm that can handle up to 30,000 Bitcoin mining machines. The deal was worth approximately $9.1 million dollars and stipulates that the mining company must generate no less than approximately $2.3 million dollars in 2021.
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CoinMarketCap removes South Korea crypto exchanges from Bitcoin price tracker
The crypto analytics provider also removed South Korean exchanges from the price calculations of cryptocurrencies in 2018 “due to the extreme divergence in prices.”
“If the prices on South Korean exchanges stabilize, then we will add the data back in, but that hasn’t happened yet,” said a CoinMarketCap spokesperson.
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Crypto price trackin website CoinMarketCap has removed many South Korean exchanges from its calculations for the price of Bitcoin as the coin dipped under $58,000 again.
As of today, CoinMarketCap’s Bitcoin price tracker shows no data from major South Korean crypto exchanges including Upbit, Bithumb, Coinone, and Korbit. The website uses data from many exchanges to estimate the average price for cryptocurrencies. At the time of publication, the price of Bitcoin (BTC) is $57,721, having fallen more than 2% this morning.
Speaking to Cointelegraph, CoinMarketCap content manager Molly Jane Zuckerman said the removal was due to the premium observed on crypto exchanges based in South Korea. The crypto analytics provider estimates the BTC price to be roughly 6% higher than that on other exchanges.
“If the prices on South Korean exchanges stabilize, then we will add the data back in, but that hasn’t happened yet,” said Zuckerman.
The last time the price tracking website took similar action was in 2018, when CoinMarketCap announced it had “excluded some South Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity.”
During roughly the same time three years ago, the price of XRP was falling significantly after reaching an all-time high of $2.96 on Jan. 2. However, the token is looking bullish today, having briefly surpassed $1.00 for the first time since 2018 after it rose more than 20% in the last 24 hours. The price has since fallen to $0.9694 at the time of publication.
CoinMarketCap said only its Bitcoin price index was affected today, given the large volume of the crypto asset on South Korean exchanges. Last month, the volume of transactions in the South Korean digital currency market — driven in part by the price of BTC reaching an all-time — briefly exceeded the daily average transaction amount of the country’s stock market.
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