Moving Averages

As BTC Slides Toward Resistance, the Chance of a Rare Triple Top Formation Comes Into Play

09/05/2022 by Idelto Editor

The cryptocurrency economy has shed a lot of value during the last six months dropping 48.70% from $3.08 trillion to today’s $1.58 trillion. While crypto markets looks extremely bearish these days, a few crypto advocates have theorized the bear market will be less harsh this time around. Furthermore, there’s also the rare scenario that bitcoin’s price could reverse and see a triple top even though it’s commonly said in the finance world “there is no such thing as a triple top.”

The Chances of Bitcoin Experiencing a Triple Top Scenario Is Rare, But Could Happen

Five days ago, Bitcoin.com News reported on a theory that describes bitcoin (BTC) prices experiencing a softer bear market than the leading crypto asset’s 80%+ declines recorded in the past. The reasoning behind the theory is because of past bitcoin price peaks and the most recent peaks recorded in May and November 2021.

While BTC hit $64K in May and $69K in November, the two peaks were much smaller than previous bull run gains. From the looks of things it seems, BTC’s price experienced what’s called a double top. Now, coinciding with the theory the current market downturn will be a softer bear run, there’s also the rare possibility of a triple top scenario.

Basically, if a triple top scenario takes place, BTC’s fiat value will tap the same resistance it touched during the past downturn. For instance, after BTC tapped a high of $64K in mid-May 2021, the value dropped to a low of $31K on June 21, 2021. From there, the price once again skyrocketed and reached $69K on November 10, 2021.

If a triple-top happens to occur, then the upcoming bottom would be somewhat in the range of the $31K mark, when it starts another reversal. In order for this to happen, BTC will have to see a complete reversal from the same resistance levels and the third top could be equal to and just above or just below the $69K region.

Reversal Theories Considered ‘Hopium’ as Many Won’t Bet on Such a Risky Play

Of course, many will assume theories of a triple top are based on pure faith and “hopium.” In the trading world, triple tops are very rare and quad tops are seemingly non-existent. In 2019, allstarcharts.com analyst JC says: “We rarely see triple tops, and I can’t even tell you if I’ve ever seen a quadruple top. Betting on these outcomes seems to never pay.”

Which means betting on bitcoin (BTC) experiencing a triple top is a very risky bet in comparison to betting on a double top formation. Moreover, its a common message in the trading world to state:

There is no such thing as a triple top.

While it’s common to say the statement, saying “there is no such thing as a triple top,” the comment is not entirely accurate. They surely have occurred in financial market scenarios in the past, and traders who risked betting on them have reaped the rewards. However, when a triple top does execute and complete, the “party is officially over.” When a triple top is executed, the price will begin a bearish descent until the next price cycle regains bullish strength.

While many are likely still willing to bet on a triple top formation as far as bitcoin’s price is concerned, its even more likely they are not willing to bet on a seemingly non-existent quad top. Moreover, triple tops being as rare as they are, means a great deal of traders are not willing to bet a third peak is in the cards. The chance of a BTC triple top coming to fruition is not impossible, and no one can safely say the scenario will not come into play.

What do you think about the chances of bitcoin’s price seeing a triple top formation after hitting the next resistance level? Let us know what you think about this subject in the comments section below.

Bitcoin Is Struggling To Hold Its 200-Day MA

29/12/2021 by Idelto Editor

Despite the traditional stock market view on 200-day moving averages, a dip below it could mean a sale event for Bitcoin.

Bitcoin has been trading at sideways price action for most of December, struggling to stay above the 200-day moving average.

After a strong October and an early November of new all-time highs, Bitcoin has encountered a blocking road in December, having lost 13.60% since the beginning of the month. This reality stands in stark contrast to a widespread belief that Bitcoin’s price would hit $100,000 by the end of the year.

At the time of writing, Bitcoin is trading at around $47,500 after having closed below its 200-day moving average on Tuesday. The 200-day MA is often used to gauge an asset’s long-term trend in traditional capital markets. An asset is generally considered to be in an overall uptrend for as long as it holds above its 200-day MA.

*Bitcoin closed below its 200-day moving average yesterday. Source: TradingView.*

In March 2020, Bitcoin violently broke below its 200-day MA as the pandemic outbreak spread fear throughout the world, including capital markets. It took BTC about two months to get back above the moving average, triggering a stellar bull market that would extend past the end of the year. Bitcoin held above its 200-day MA for over a year until China banned bitcoin mining, once again spreading fear to those unaware of Bitcoin’s actual functioning mechanics and triggering a short winter for price over the summer months.

*Bitcoin rose from $8,000 to $60,000 in less than one year before correcting below its 200-day MA at around $40,000 in May 2021. Source: TradingView.*

Despite the traditional stock market view that an asset below its 200-day MA could be in a bear market, for Bitcoin, it could represent a sale event. Given the peer-to-peer (P2P) currency’s strong, unique fundamentals and its history of crushing all other assets over the past 10 years, a dip below a technical indicator can serve as a discount indication, especially given Bitcoin’s volatility, which makes it plunge and soar more rapidly than traditional assets.

Markets Update: Crypto Bulls Lose Footing After Stablecoin Controversy

26/04/2019 by Idelto Editor

Cryptocurrencies dropped in value yesterday after the New York Attorney General’s court filings against Bitfinex and Tether were published. Currently, the entire market capitalization is roughly $170 billion and most cryptocurrencies have lost 2-10% of their value since the announcement.

Also read: Researchers Find Hundreds of Ethereum Wallets at Risk Due to Weak Key Pairs

NYAG Announcement Creates Crypto Market Uncertainties

On April 25, the New York Attorney General’s (NYAG) office published a court order that alleged the cryptocurrency exchange Bitfinex lost $850 million and used Tether to cover the loss. NYAG Letitia James said her department found discrepancies and the parent company of both Bitfinex and Tether “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds.” Bitfinex has responded to the allegations stating: “The New York Attorney General’s court filings were written in bad faith and are riddled with false assertions, including as to a purported $850 million “loss” at Crypto Capital.” Armchair sleuths also noticed that 550 BTC ($1.6M) that were connected to the 2016 Bitfinex hack began moving immediately after the NYAG filing.

Cryptos See Slight Recovery After the Losses

With all the controversy surrounding Bitfinex and Tether, the crypto market saw immediate losses and bitcoin core (BTC) plunged to $5,005 per coin on Thursday. The entire ecosystem shuddered for a few hours but many coins have regained some momentum. Currently, bitcoin core (BTC) is trading for $5,285 but is down 3.6% in the last 24 hours.

This is followed by ethereum (ETH) which is down 5.5% today and trading for $155 per ETH. The third highest market valuation belongs to ripple (XRP) and the digital asset has lost 2.9% over the last day and trades for $0.29. Lastly, the fifth biggest market litecoin (LTC) is down 2% this Friday and is trading for $72 per coin. At the time of publication, there’s roughly $57 billion in global trade volume between all the coins in the cryptoconomy. On Thursday evening, tether (USDT) dropped below its $1 peg and has been in a slump ever since the announcement.

Bitcoin Cash (BCH) Market Action

The fourth highest market capitalization belongs to bitcoin cash (BCH) which is down 5.6% this Friday. BCH is swapping for $265 per coin and has a market valuation of around $4.7 billion. Bitcoin cash is the sixth most traded cryptocurrency by volume on April 26 above XRP and below EOS. Statistics also show that BCH has around $1.36 billion in global trade volume. The top five trading platforms swapping the most BCH are Coinebene, P2pb2b, Fcoin, Lbank, Bitmart, and Bitforex. The top currency pair with BCH is tether (USDT) which captures 48.2% of trades. Tether’s pair dominance with BCH is followed by BTC (34%), USD (9%), KRW (4.2%), and the EUR (1.1%). Data also shows that ETH, JPY, and the two stablecoins PAX and TUSD follow behind.

BCH/USD Technical Indicators

Looking at the BCH/USD daily and 4-hour charts show that resistance has been built amid the Bitfinex and Tether headlines. Technical indicator gauges displayed show that oscillators are screaming oversold conditions while most moving averages indicate either uncertainty or strong positions to sell. Currently, the two Simple Moving Averages (SMA) look to cross hairs as the 100 SMA is heading southbound. This indicates the path toward the least resistance is still the upside but may change shortly. The MACd, a momentum oscillator that subtracts the longer-term moving average from the shorter-term moving average, shows prices could dip lower in the short term.

Bollinger Bands were tighter last week but have begun to widen since the selloff. The Ichimoku Cloud (9, 26, 52, 26) baseline is impartial at the moment but most moving averages indicate a bearish divergence. Looking at order books shows some deep resistance above the $280 zone and more pit stops around $300. A lot of foundational support has built up over the last few weeks so if bears grab the reins they will see resistance between now and the $230 zone.

The Verdict: Uncertainty Shows its Face Again

After the Bitfinex and Tether headlines, it’s safe to say uncertainty is in the air once again and the prior bullish exuberance within the community has started to fade. It’s also interesting to note that cryptocurrency prices have diverged quite a bit across popular exchanges and trade volumes also kicked into high gear. USDT is still a dominant pair, capturing more than 60% of the whole cryptoconomy and 71% of BTC pairs according to Coinlib.io and Crypto Compare statistics. Bitcoin cash (BCH) has held pretty steady since the announcement but failed to hold above the 50-week moving average. Still, there are many other technicals that could come into play within the digital asset space in the short term. It’s safe to say the weekend and next week will determine if crypto markets were truly affected by the NYAG’s court filings and whether or not the controversy could affect prices again.

What do you think about the crypto market downfall amid the Bitfinex and Tether controversy? Let us know what you think about this subject in the comments section below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

Images via Shutterstock, Trading View, Bitcoin.com Markets, and Coinlib.io.

Want to create your own secure cold storage paper wallet? Check our tools section.

The post Markets Update: Crypto Bulls Lose Footing After Stablecoin Controversy appeared first on Bitcoin News.

Markets Update: BCH Maintains Strong Lead as Crypto Prices Record Slight Pullback

04/04/2019 by Idelto Editor

Markets Update: BCH Maintains Strong Lead, but Crypto Prices See a Slight Pullback

Cryptocurrency markets saw some significant gains over the last two days, but prices on Thursday have started to pull back from this year’s all-time highs. When the spikes first initiated, bitcoin cash (BCH) led the pack out of the top 10 cryptocurrencies and still maintains a lead with over 75 percent worth of gains for the week.

Also read: Bitcoin Cash Markets and Network Gather Strong Momentum in Q1

Crypto Prices Fall Back After Touching 2019’s All-Time Highs

Digital assets prices lifted in value significantly this week, making cryptocurrency enthusiasts extremely happy again after more than a year of depressing market sentiment. Now things have changed, and the overall cryptocurrency market cap is about $172 billion today, roughly $8 billion less than April 3rd’s highs. Bitcoin core (BTC) is averaging around $5,036 per coin at press time and is up 0.34 percent since yesterday. BTC also has a weekly advantage as the currency is up roughly 23 percent over the last seven days. It’s also worth noting that the bitcoin dominance metric, the size of BTC’s market cap in comparison to the rest of the cryptoconomy, has dropped to 50 percent.

The second highest valued market cap belongs to ethereum (ETH) which is down 3.9 percent today and trading for $162 per ETH. Ripple (XRP) markets have also dropped significantly by 5 percent during the last 24 hours. XRP is trading for $0.34 a token and its market is still up by 10 percent for the week. Lastly, the fifth market position now belongs to litecoin (LTC) after being nudged out by bitcoin cash (BCH) on Wednesday. LTC is trading for $87 per coin and is still up today by 1.9 percent and 42 percent over the last seven days.

Bitcoin Cash (BCH) Market Action

Bitcoin cash (BCH) markets hold the fourth position today within the top 10 coins in the cryptoconomy. BCH spot prices are still up 6.8 percent today and roughly 77 percent for the entire week. At press time BCH is trading for $302 per coin and has a market capitalization of around $5.35 billion. Market statistics show that BCH is the sixth most traded coin by trade volume below EOS and above XRP. The top five exchanges swapping the most BCH on April 4 are Lbank, Binance, Huobi, Bitfinex, and Coinbase. USDT is still the dominating pair traded with BCH today, capturing 47 percent of trades. Tether pairs are followed by BTC (25%), USD (16%), KRW (4.8%), EUR (2.3%), and JPY (1.9%). Just a month ago BCH global trade volume was a mere $500-800 million per day and now trade volume is roughly $3.9 billion over the last 24 hours.

BCH/USD Technical Indicators

Looking at the 4-hour BCH/USD chart on Bitstamp and Kraken shows BCH bulls are in the midst of being beaten back after a big jump on Wednesday. Currently, most oscillators are neutral except for the Relative Strength Index (~89), which is still showing overbought conditions. Stochastic is a bit high at ~78, but still impartial, while the MACd momentum oscillator shows that markets are overbought and a deeper pullback may be on the cards. The two Simple Moving Averages (100 SMA and 200 SMA) and most moving averages like the EMA show markets are still in the buy territory.

The 4-hour chart shows the 100 SMA is still above the long-term 200 SMA trendline indicating the path toward the least resistance is still the upside. Ichimoku Cloud (9, 26, 52, 26) baseline is impartial at the moment as most indicators currently display a mixture of support and resistance at the time of publication. Order books show some heavy sell walls between the $350 range and even bigger near the $400 region. On the backside, if bears gain some control we will likely see some pitstops between $250 and $215.

The Next Bull Run: This Time Around Scaling Will Matter

Overall cryptocurrency enthusiasts are still exuberant about the rising prices even after some small corrections. On Wednesday, BCH supporters were pleased to see BCH rocket ahead of most coins in the economy, believing it was due a trend reversal. Some crypto enthusiasts think that BTC’s failure to scale will cost the network considerably during the next bull run.

Furthermore, many BCH supporters think bitcoin cash is undervalued at the moment compared to coins that have difficulty scaling when crypto interest rises. On Wednesday, Bitcoin.com CEO Roger Ver said he thinks people will see more demand for BCH going forward. This is because the cryptocurrency just works and its ability to transact in a censorship-resistant manner for less than a penny per transaction outpaces the competition.

“People love to use cash as a store of value — Since bitcoin cash works like cash, it also works as a store of value,” Ver noted during the market spike yesterday. “I think we’ll continue to see bitcoin cash outperform bitcoin core.”

What do you think about the massive spike BCH markets witnessed over the last two days? Let us know what you think in the comments section below.

Images via Shutterstock, Trading View, Bitstamp, Bitcoin.com Markets, and Coinlib.io.

Want to create your own secure cold storage paper wallet? Check our tools section.

The post Markets Update: BCH Maintains Strong Lead as Crypto Prices Record Slight Pullback appeared first on Bitcoin News.

Trading Cryptocurrencies Like a Boss Takes Time and Research

02/04/2018 by Idelto Editor

Over the years there have been many news.Bitcoin.com tutorials about the very basics of trading, market indicators, and the multitude of websites that collect vast amounts of data. Some of these resources give traders a step towards making their first trades. Now after a few losses and some lucky gains these individuals are interested in how to read the market.

Also Read: PBOC to Strengthen Cryptocurrency Regulations in 2018

Confidence is Silent

Learning to trade can be difficult but there are so many experts in the field and online resources that can teach anyone to trade cryptocurrencies. The first thing to realize is that bitcoin markets or any cryptocurrency markets are very different than your average stock or FX trading arenas. In fact, many people will tell you that traditional technical analysis (TA) will never be accurate when it comes to digital currency markets. However, there are those that use TA regularly to day trade, make a living, and predict the short-term price swings we all know and love.

The first thing a trader should get to know is the most common financial chart used in the cryptocurrency industry which is the candlestick chart. The size of each candlestick represents a certain time interval, and individuals who study TA look for patterns in the market. This is when you will hear about certain chart patterns like the ‘Head n Shoulders, the Cup n Handle, Triple Top & Triple Bottom,” and many more funky phrases. However, these pattern help traders predict cryptocurrency price movements in the short and long term. They say after memorizing enough patterns individuals can see them subconsciously while day trading.

Cryptocurrency traders then take things to the next level by using a wide variety of tools that are also known to help forecast price movements in markets. One of the biggest indicators in the market many traders utilize is moving average data. For instance, a Simple Moving Average (SMA) is used by calculating the average of a digital assets closing value over a set interval. An Exponential Moving Average (EMA) and Displaced Moving Average (DMA) are more complex than the SMA. An EMA responds in a swifter manner to price fluctuations while the DMA is moved in set periods of time so a trader can predict market trends.

Another helpful tool used in trading digital assets is the Relative Strength Index (RSI). The oscillator basically determines the price momentum whether it climbs or falls. The measurement of speed is recorded between 0-100 and it’s one of the most popular trading indicators in many markets. The squiggly line typically meanders about sideways, or up or down, and if the line dips below 30 the market is oversold. When the RSI starts climbing past 70 then the analyst will say the price is overbought.

Moving averages and the RSI is just the tip of the iceberg when it comes to cryptocurrency trading tools. Traders use other tools such as Bollinger Bands, Moving Average Convergence/Divergence (MACd), Stochastic, the Detrended oscillator, Fibonacci retracement and so much more. All of these tools and more are combined with plotting chart patterns used by traders flipping cryptocurrencies on the side or for a living. They are also incorporating other methods like Elliott Wave Theory and the tenets of the Dow theory so they can forecast the infamous bitcoin ups and downs in value.

Now good traders can study all of this stuff and figure out how to use these types of indicators. However, smart traders are also listening to the streets of crypto, so to speak, as many cryptocurrency enthusiasts have realized that news and community emotions can move the price of bitcoin. For instance, if there is a large exchange hack or some government ruling in the short term you can probably guess bitcoin’s price will go down a touch. If there is positive news like CME and Cboe opening futures markets some people bet the price would go up. Most traders are listening very closely to all that happens in bitcoin because they have a lot of skin in the game.

Lastly even an individual who is very knowledgeable about technical analysis, and they also follow the street very closely, might make some very wrong predictions. Cryptocurrencies like bitcoin can often trick traders, and all that street knowledge and TA goes out the window. Traders with extremely crafted TA skills can lose their shirt in a matter of minutes in bitcoin-land. So, make sure you know for certain that’s a legitimate head n shoulder or bull flag.

Do you trade cryptocurrencies? Let us know your techniques in the comments below.

Images via Shutterstock, Stock charts, Pixabay, Wiki Commons, and Paramount Pictures.

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