Tag: biscoin news

Make or Break Time For Bitcoin How Likely is Another Final Capitulation?

December 9, 2019 David

Make or Break Time For Bitcoin, How Likely is Another Final Capitulation?

Following a little momentum last week Bitcoin spent most of the weekend consolidating. It has been pretty flat for the past fortnight and analysts are now considering the unpopular premise of a final capitulation approaching which would mirror movements from this time last year.

Bitcoin Bulls and Bears Poised

Crypto markets were lifted on Friday which resulted in BTC topping out over $7,600 briefly on Saturday. A Sunday dip to $7,400 was quickly recovered and the best part of the past two days has been spent at $7,500.

BTC price 1 hour chart – Tradingview.com

Since the big dump on November 25, Bitcoin has remained at this level with very little momentum to take it higher. There have been two green weekly closes but nowhere near enough to cancel out last month’s massive red candles.

Sentiment is generally mixed at the moment with a number of analysts eyeing the possibility of another final capitulation as charts are beginning to mirror patterns this time last year when BTC dumped into the $3k zone.

Trader and analyst Jacob Canfield polled some of his followers to gauge sentiment of the two opposing groups of Bitcoin bulls and bears.

Unsurprisingly things were very close from the 1,500 or so respondents at the time of writing with just over half of them bullish. Another sentiment measure is the BTC fear and greed index and that is still registering a fearful 28 at the moment.

Any move south from here is likely to retest the $6,500 level first. A final capitulation however could see prices plunge to $5k which is where the 200 week moving average lies and the first level of resistance on the upside of the rally in April.
 

When Halving Pump?

Eventually though, halving FOMO will start to kick in as mathematical scarcity notion takes a grip. There is usually a little momentum in the lead up to the event but we still have around six months to go. A final shake out could be the last good buying opportunity before a bull market after the halving in 2020.

Replying to a chart comparison, trader and analyst Josh Rager noted that this still feels like the accumulation phase that occurred last year.

It is also highly likely that this consolidation could continue until after the New Year as traders take a break over the festive period.

Either way, if history rhymes there will be a big upside push for the halving as there has been for the past two. Economic principles like stock to flow models are hard to ignore, especially when the banks of the world are trying their hardest to devalue traditional currencies.

Whatever happens in the short term for Bitcoin should not deter investors but it may irk the day traders who are largely responsible for all of this volatility in the first place!

 

Martin Young

David – http://markethive.com/david-ogden

Bitcoin price latest update – Cryptocurrency as stable as dollar

October 14, 2018 David

Bitcoin price latest update – Cryptocurrency as stable as dollar

The crypto market is notorious for its volatility and large swings in price.

In 2017 alone, Bitcoin’s value rocketed to more than double its value, reaching a high $19,783 in December, before then crashing to less than $6,000 by June this year.

But now, new research published in the journal Chaos: An Interdisciplinary Journal of Nonlinear Science, suggests investment in the digital asset may be more reliable than previously thought.

In a report titled “Bitcoin market route to maturity? Evidence from return fluctuations, temporal correlations, and multiscaling effects,” researchers explain Bitcoin is following some of the same trends of the market as physical currencies.

After analysing graphs of Bitcoin’s price, the authors said: “Initially, the graphs we got were a bit crooked, which did not augur anything promising.

“But when we took a closer look at the data, suddenly it turned out that this crookedness originated from the first two years of the analysed period, that is, from the time when the market was just starting to shape itself.

“Later on, the rates of return fluctuated according to the inverse cubic law.”

Cubic law refers to a method of judging a market’s maturity.

Analysts plot price changes in one-minute sequences and compare how they match up.

The authors of the new research looked at Bitcoin’s price between 2012 and April 2018 to determine that despite early irregularities, the market has become more mature is recent years.

They added Bitcoin’s maturity was “particularly evident in the last six months of the examined period”.

In another sign likely to please investors, the researchers said Bitcoin acted with the functions of fluctuations in rates of return as “regular, mature markets, such as the stock, dollar, oil or bond markets”.

However, not everyone agrees with the suggestion Bitcoin is a worthy investment.

Treasury Committee Chair Nicky Morgan has labelled the burgeoning world of cryptocurrency investment as a “wild west” industry.

She said: “Bitcoin and other crypto-assets exist in the Wild West industry of crypto-assets.

“This unregulated industry leaves investors facing numerous risks.

“Given the high price volatility, the hacking vulnerability of exchanges, and the potential role in money laundering, the Treasury Committee strongly believes that regulation should be introduced.”

David – http://markethive.com/david-ogden