Bitcoin Must Hold $10,800 to Maintain Bullish Bias—But Will It?

Bitcoin has seen a tumultuous past few days after reaching as high as $11,500 on Monday. In the past 48 hours alone, the asset has whipsawed between $10,600 and $11,400, with bulls and bears attempting to catalyze a range breakout.

Both sides have failed thus far; as of the time of this article’s writing, BTC remains in the middle of the local range at $11,000.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

It may seem that BTC is in no man’s land, but a trader has argued that as long as $10,800 is held, a bullish bias can be held.

Bitcoin Must Hold $10,800 to Hold Bullish Bias: Analyst

According to analyst Edward “Teddy” Cleps, Bitcoin holding $10,800 on the four-hour chart will confirm the short-term bull case.

Cleps cites his custom Secret EMA Cloud, which indicates important technical levels and trends. The indicator accurately predicted the surge from $9,400 to $11,500 last week when BTC broke above the cloud, causing it to flip green.

Bitcoin holding the cloud’s upper boundary in the days ahead should confirm that the uptrend is intact.

The cloud’s upper boundary, denoted by the black line on the chart below, should continue to move towards BTC’s current price as it is an exponential moving average.

Chart of BTC's recent price action with a custom cloud indicator by Edward "Teddy" Cleps (@Teddycleps on Twitter). Chart from TradingView.com

Another level of importance that traders are watching is $10,500.

$10,500 is a level of macro importance for Bitcoin. It marked the top of a BTC rally on three separate occasions: once in October 2019, once in February 2020, and once in June 2020.

To some commentators, BTC must hold above $10,500 when the one-month candle closes in approximately 20 hours after this article’s publishing time.

And according to many analysts, it’s highly probable that it holds.

$12,000 Is Imminent

With the uptrend still intact, analysts are trying to postulate what comes next for BTC.

According to the pseudonymous trader who predicted Bitcoin would bottom 2018’s bear market at $3,200, a move to $12,000 is likely. As reported by NewsBTC previously, this trader wrote in reference to the chart below:

“$btc consolidating above a pretty key breakout level. price contracting, volume declining, seems bullish, continuation soon.”

Chart of BTC's recent price action by trader SmartContracter (Twitter handle). Chart from TradingView.com

What investors do have to watch out for, though, is the high funding rates of Bitcoin and crypto perpetual swaps.

Perpetual swaps are a type of futures contract that is popular in the cryptocurrency industry. Funding is the fee that long positions pay short positions to keep the price of the future close to the price of the underlying asset.

High funding rates often suggest that buyers of perpetual swaps are overextended, leading to short-term corrections where the funding rate normalizes.

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

Featured Image from Shutterstock
Price tags: btcusd, xbtusd, btcusdt
Charts from TradingView.com
Bitcoin Must Hold $10,800 to Maintain Bullish Bias—But Will It?

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/bitcoin-must-hold-10800-to-maintain-bullish-bias-but-will-it/

Patrick “Muddington” Kennedy Wins First WSOP Bracelet in Event #45: $840 Bounty NLHE

After eleven hours, Event #45: $840 Bounty NLHE has come to an end with Patrick “Muddington” Kennedy claiming his first WSOP gold bracelet for $245,448 which includes $104,680 in bounties. He beat Joshua “kaledak” Pollock heads-up in a field of 2,382 participants who created a prize pool of $1,906,500 in total.

Kennedy seems to be a relatively unknown player in the live scene and has collected just over $5,000 in cashes on GGPoker but crushed the final table with aggressive play at the right times. He got the field down to the final table bubble when he eliminated both Blaaz “Sc4rm4k3r” Azerjav and Jie “MTT0516” Wu with jacks. He lost the chip lead for about a minute when Pollock had him covered by almost 7,000 in chips but took it back immediately to cruise towards the win in the end.

2020 GGPoker WSOP Online Bracelets Event #45: $840 Bounty NLHE Final Table Results

Place	Player	Country	Prize	Bounties	Total
1	Patrick “Muddington” Kennedy	United Kingdom	$140,768	$104,680	$245,448
2	Joshua “kaledak” Pollock	United States	$101,212	$11,964	$113,176
3	Bernardo “GGeKKo” Dias	Brazil	$72,772	$7,530	$80,303
4	Franco “pelaguacha” Spitale	Argentina	$52,324	$10,694	$63,078
5	Chi Chung “chipuker” Ho	Taiwan	$37,621	$3,169	$40,790
6	Arie “abush” Kliper	Israel	$27,050	$18,089	$45,139
7	Ho Yin “hoyintai” Tai	Hong Kong	$19,449	$15,469	$34,918
8	Francesco “Pachamama” Favia	Italy	$13,984	$15,366	$29,350
9	Jose “robertoduran” Severino	Panama	$10,055	$3,988	$14,042

Pollock was the only one on the final who had won a bracelet before and he came close to making it three. He would also be the only one to win one in Las Vegas at the Rio All-Suite Hotel & Casino, one on WSOP.com, and one during the 2020 GGPoker WSOP Online Bracelet Events but it wasn’t to be.

Bernardo “GGeKKo” Dias, Jose “robertoduran” Severino, Franco “pelaguacha” Spitale were the more familiar players at the final table and were joined by Chi Chung “chipuker” Ho, Arie “abush” Kliper, Ho Yin “hoyintai” Tai, and Francesco “Pachamama” Favia.

Follow all the latest from the WSOP – LIVE!

The cards are in the air in the GGPoker WSOP Online. The PokerNews live reporting team is on top of all things WSOP. Don’t miss a beat!

Bubble Protection in Action

During the first three hours of the tournament, players could register late or reenter up to two times but once the dust had settled, the prize pool details were determined and 332 players would be in the money from the 900 who were still in it at that time. It would take ninety minutes before it was time for the bubble.

Andrei “[email protected]” Popugaev three-bet shoved with aces but saw them get cracked by the kings of “dodi papa” in a hand that was a rollercoaster. The king on the flop gave “dodi papa” a set, Popugaev then turned the higher set, but the river gave his opponent a flush. As Popugaev had registered before the start of the tournament, he was protected during the bubble and got his buy-in back on top of the $950 in bounties that he had earned.

Everything You Need to Know to Compete for a 2020 GGPoker Online WSOP Bracelet

From the Bubble to the Final Table

Many players tried to battle their way to the final table but failed. Players like Artur Martirosyan, Simon Higgins, Mike Leah, Simon Lofberg, Fedor Kruse, Danny Tang, Lev Gottlieb, Ana Marquez, Harry Lodge, Dario Sammartino, and Michael Clacher all busted before they could get there.

Kazuki Ikeuchi came second twice in the WSOP events, in 2018, he and his Tag Team finished behind Nikita Luther and Giuseppe Pantaleo and last year he fell short in the Millionaire Maker when John Gorsuch was victorious. Ikeuchi was aiming to finally grab that bracelet but was eliminated in 13th place this time with Alessandro Giannelli bubbling the final table in the first hand after the break.

---

---

The Final Table

Severino was first to go with Favia following in his footsteps. A few minutes later, Tai took off with Kliper kicked out next for four players to bust in a space of 30 minutes. Kennedy had over 40% of all the chips in play and he maintained that stack while the shorter stacks battled each other. Half an hour later, Ho fell to Pollock.

Dias then closed the gap with Kennedy but it was widened again when the latter took out Spitale in fourth place. Pollock doubled up through Kennedy once before a hand where Dias turned two pair and raised the bet of Pollock. He then called the shove of Kennedy once Pollock got out of the way. Kennedy had turned the straight so Dias was hoping the river would bring another ten or seven but instead he bricked. Dias finished in second place in Event #27: $3,000 No-Limit Hold’em 6-Handed for $308,166 back in 2017 and will be disappointed to not take it down this time either.

Heads-up went back and forth for a bit before Pollock called the four-bet shove of Kennedy for almost 50 big blinds with tens. Kennedy had the higher pocket pair of jacks which held to deliver him the victory while Pollock’s cash today will take him closer to the $1,000,000 mark in WSOP winnings.

---

2020 Online WSOP Bracelet Winners on GGPoker

Date	Tournament	Entries	Prize Pool	Winner	Prize
7/26/20	Event #32: $100 The Opener	29,306	$2,571,216	Marcelo Jakovljevic Pudla	$265,880
7/26/20	Event #33: $1,111 Every 1 for Covid Relief	2,323	$2,580,853	Alek Stasiak	$343,204
7/19/20	Event #34: $525 Super Turbo Bounty No-Limit Hold’em 6-Handed	2,214	$1,107,000	Shoma “pp_syon” Ishikawa	$117,650
7/21/20	Event #35: $5,000 Pot-Limit Omaha Championship	328	$1,558,000	Juha Helppi	$290,286
7/22/20	Event #36: $1,500 FIFTY STACK NLHE	1,342	$1,912,350	Michael Clacher	$297,496
7/23/20	Event #37: $1,050 Bounty Pot Limit Omaha	971	$971,000	Hun Wei Lee	$161,886
7/25/20	Event #38: $600 Monster Stack 6-Max	2,007	$1,143,990	Aaron “fishnchip” Wijaya	$171,389
7/26/20	Event #39: $1,500 No Limit Hold’em	922	$1,313,850	Roberto Romanello	$212,613
7/26/20	Event #40: $2,500 Pot Limit Omaha	532	$1,253,500	Simon Lofberg	$224,493
7/28/20	Event #43: $10,000 Short Deck No Limit Hold’em Championship	130	$1,261,000	Lev “LevMeAlone” Gottlieb	$276,393
7/29/20	Event #44: $2,500 NLHE 6-Handed	892	$2,118,500	Kristen Bicknell	$356,412
7/30/20	Event #45: $840 Bounty NLHE	2,382	$1,095,600	Patrick “Muddington” Kennedy	$245,448

---

Sign Up for a GGPoker Account Through PokerNews

If you want to play in the WSOP 2020 Online on GGPoker, you’ll need to sign up for an account. By downloading GGPoker via PokerNews entitles you to a welcome bonus worth up to $600. Your first deposit is matched 200% up to a maximum of $600, setting you up nicely in time for the WSOP Online.

The bonus releases into your account in $10 increments each time you earn 6,000 Fish Buffet Points, which is the equivalent of $60 in rake or tournament fees.

This concludes the PokerNews coverage of this event but we’ll be back on Saturday with Event #46: $500 Deepstack No Limit Hold’em and the final tables of Event #41: $400 COLOSSUS & Event #42: $400 PLOSSUS so make sure to come back!

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/patrick-muddington-kennedy-wins-first-wsop-bracelet-in-event-45-840-bounty-nlhe/

Unexpected Factor That Suppressed Bitcoin Bulls in 2019 Is Now Gone

If you’ve been involved in the Bitcoin market over the past year, you know of PlusToken.

PlusToken was a Ponzi scheme with a focus on the Asian cryptocurrency space that was active in 2019. In offering depositors of Bitcoin, Ethereum, EOS and other cryptocurrencies high levels of interest, the operators of the scam managed to garner billions worth of assets. Per some reports, the scam held upwards of $3 billion worth of largely BTC and ETH at its peak.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

Eventually, the pyramid collapsed; in around July of 2019, the operators of the scam began restricting withdrawals, then began to run from the authorities.

Some ringleaders escaped; others were caught by authorities.

Regardless, from July to as late as early this year, the remaining operators of PlusToken dumped millions of dollars of Bitcoin on the market.

Analysis by the pseudonymous on-chain analyst “Ergo” argued that there was around 1,000 BTC — then worth around $8,000,000 — sold every day by the scammers.

Reports from chain analysis companies suggest that PlusToken is largely what caused the crash to $6,400. Some argue that PlusToken was also the catalyst for the early 2019 rally to $14,000.

Chart of BTC's price action in 2019 from TradingView.com

Fortunately for bulls, reports have just revealed that all the leaders of the multi-billion-dollar scam have been apprehended.

Operators of Multi-Billion-Dollar Bitcoin Scam Apprehended

According to Dovey Wan, founding partner of Primitive Ventures, all members of the PlusToken leadership have been arrested:

“27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed… there are a series of legal enforment actions in past 12 months as it’s core team are all over the world took quite a while.”

FINALLY

27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed

Bulls now have little to no baggage and lets send it to the pic.twitter.com/SiDJVSqA5J

— Dovey 以德服人 Wan (@DoveyWan) July 30, 2020

The commentator suggested that this is pivotal for the Bitcoin bull case as the coins they still hold are now unlikely going to be sold.

It isn’t clear what PlusToken’s administrators had when they were arrested. However, $450 million worth of cryptocurrency was moved from their addresses over the past few months. As reported by NewsBTC, DTC Capital’s Spencer Noon wrote on the matter:

“This week the following #PlusToken funds have been on the move to exchanges and new addresses for mixing: – 22k BTC ($203m USD) – 789k ETH ($183m) – 26m EOS ($68m) – 20m XRP ($4m). The big question: can the crypto markets absorb this volume or are we headed lower?”

Wan, citing information she knows, suggested the figure is closer to $1 billion. Whatever the exact figure, she added that with these arrests, “bulls have little to no baggage,” meaning Bitcoin can be sent “to the moon.”

One of Many Bullish Fundamentals

With PlusToken-related funds unlikely to be moved every again, a massive source of selling pressure is now gone. But this is but one of many positive catalysts for the Bitcoin and crypto market.

Mike Novogratz, CEO of Galaxy Digital, told CNBC on Tuesday that Bitcoin has the potential to reach $20,000 this year.

He cited the money printing by the central banks of the world, which should boost the scarce assets of Bitcoin and gold.

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Unexpected Factor That Suppressed Bitcoin Bulls in 2019 Is Now Gone

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/unexpected-factor-that-suppressed-bitcoin-bulls-in-2019-is-now-gone/

Tournament Spotlight: WSOP.com $1,000 No Limit Hold’em Championship

July 31, 2020Jason Glatzer

The World Series of Poker (WSOP) is wrapping up its online schedule at WSOP.com this weekend with a big bang!

This is due to an “OG” event on the schedule in the WSOP with Event #31: $1,000 No-Limit Hold’em Championship shuffling up and dealing at 6 p.m. EDT / 3 p.m. PDT.

A total of 31 of the 85 WSOP online events were scheduled at WSOP.com for players in the United States with the remainder of the schedule set aside for the rest of the world at GGPoker.

Players can join in on the action in the final event at WSOP.com provided that they are located in the states of Nevada or New Jersey at the time of play and are of at least 21-years of age. You don’t have to be a resident of either state or event a resident in the United States to compete but you do need to be within the borders of either of the states for a chance at WSOP gold in the final WSOP event at WSOP.com this season.

You might think that the $1,000 buy-in is a bit high. And you might be right.

But this is a Championship event. So, of course, the stakes will be a little higher.

Rest assured you can qualify into this event for as low as $20. A small price to pay to win a bracelet in one of the most prestigious WSOP events of the year.

About the 2020 No Limit Hold’em Championship Event

The No Limit Hold’em Championship boasts an amazing structure but it will be a marathon for those going deep as it is a one-day event.

The tournament is a deep-stacked affair with players starting off with 20,000 in chips and blinds starting low at 20/40 before increasing slowly at every 15 minutes.

Players can re-enter up to two times during the 235-minute (nearly four hours) late registration window.

If you are planning to re-enter if you bust you should already have the funds in your WSOP.com account. This is because unlike some re-entry events where you can take a break before re-entering, you will instead have just 30 seconds to re-enter after losing all your chips.

As has been the case throughout the WSOP at WSOP.com, PokerNews will be covering the No Limit Hold’em Championship from when the first cards are virtually in the air until a winner is crowned. So you can follow all the action with us!

Previous WSOP Online No Limit Hold’em Championship Winners

Hosting at least a portion of the WSOP schedule online is nothing new for poker players at the WSOP and a $1,000 buy-in online bracelet event has been part of the schedule since 2015.

Back then, the idea of an online bracelet was more of a novelty as there was just one event on the schedule simply called the $1,000 WSOP.com Online No-Limit Hold’em instead of its current name.

Anthony “casedismissed” Spinella made WSOP history by becoming the first online bracelet winner after navigating through a field of 905 entrants to win the $197,743 top prize.

As a side note, Spinella made history again in 2018 when he won the first-ever WSOP gold ring Circuit event to be held online at WSOP.com.

The tournament’s popularity grew with the following year in 2016 attracting 1,247 entrants. Clayton “nevarlucky” Maguire claimed his first and only bracelet in this event along with a healthy $210,279 top prize.

In 2017, the tournament was changed to its current name in the WSOP Online No Limit Hold’em Championship and once again grew with 1,312 entrants battling it out. Nipun “Javatinii” Java won his second bracelet of the year in this event which came with a lavish $237,688 top prize.

The event grew in a bigger way in 2018 with 1,635 entrants joining the action. Ryan “toosick” Tosoc found WSOP gold for the first time and walked home with a $238,779 top prize.

Last year was the biggest of them all to date with 1,750 entrants joining the action. This is nearly double the 905 entrants featured the first year an online bracelet event was held in 2015.

Nicholas “Illari” Baris was the last player standing to win his first WSOP bracelet and the hefty $303,739 top prize.

Year		Winner	Country	Entrants	Prize Pool	First Place
2015	Event #64: $1,000 WSOP.com Online No-Limit Hold’em	Anthony “casedismissed” Spinella	United States	905	$859,750	$197,743
2016	Event #66: $1,000 WSOP.com Online No-Limit Hold’em	Clayton “nevarlucky” Maguire	United States	1,247	$1,184,650	$210,279
2017	Event #71: $1,000 WSOP.com ONLINE No-Limit Hold’em Championship	Nipun “Javatinii” Java	India	1,312	$1,246,400	$237,688
2018	Event #61: $1,000 WSOP.com ONLINE No-Limit Hold’em Championship	Ryan “toosick” Tosoc	United States	1,635	$1,553,250	$238,779
2019	Event #68: $1,000 WSOP.com ONLINE No-Limit Hold’em Championship	Nicholas “Illari” Baris	United States	1,750	$1,662,500	$303,739

Nicholas “Illari” Baris Wins $303,739 in Massive WSOP.com ONLINE Championship

Play in the 2020 edition of the $1,000 No-Limit Hold’em Online Championship begins on Friday, July 31 at 6 p.m. EDT / 3 p.m. PDT and does so under the watchful eye of the PokerNews Live Reporting team. Tune into our pages on July 31 and follow all the action as it happens from the biggest event on the 2020 WSOP.com calendar.

The first step in getting set up to play on WSOP.com is to download the client. You can do so for both mobile (Android and iOS) and desktop (Windows 7 or higher and Mac OS X 10.6.8).

To get the correct version of the client, use the links below:

The next tournament on the schedule – Event #31: $1,000 No-Limit Hold’em Championship – will take place at 6 p.m. EDT / 3 p.m. PDT on Friday, July 31. The PokerNews Live Reporting Team will once again be reporting all the action, so be sure to tune in then to see who captures the next 2020 WSOP bracelet!

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/tournament-spotlight-wsop-com-1000-no-limit-holdem-championship/

Bitcoin Could Hit $12K on Ethereum-Tailing Behaviour: Analyst

• Bitcoin is eyeing a breakout towards $12,000, according to crypto-chart analyst Josh Rager.
• The analogy appears out of Ethereum’s latest upside move from a consolidation range.
• Mr. Rager sees Bitcoin repeating the same bullish action as it trades inside a similar sideways pattern.

Bitcoin is at the cusp of hitting $12,000 in the coming sessions, according to an inter-coin fractal shared by Josh Rager.

The market analyst noted that Bitcoin is almost mirroring the recent price moves of Ethereum, the second-largest cryptocurrency by market cap. Earlier yesterday, the ETH/USD exchange rate broke out of its consolidation range.

Ethereum breaks upward of its sideways consolidation pattern. Source: TradingView.com

The pair rose by more than 6 percent from the point of the breakout.

Mr. Rager spotted BTCUSD in a similar Triangle-like range. He said in a Friday tweet that the cryptocurrency could break above the pattern–just like Ethereum did– and attempt a close above $12,000.

BTCUSD price in the Ethereum-like consolidation channel. Source: TradingView.com

A Bull Triangle

The reason for Mr. Rager’s bullish Bitcoin prediction also resorted to the shape of its current consolidation pattern. It technically resembles a symmetrical triangle, confirmed by its two converging trendlines. It is a continuation pattern that typically sends the price in the direction of its previous bias.

In the current case, BTCUSD was rising before it formed the Symmetrical Triangle pattern. As a result, the cryptocurrency should ideally continue trending upwards upon breaking it. Meanwhile, the length of the breakout should be as much as the maximum height of the Triangle.

BTCUSD symmetrical triangle's upside target is near $12,000. Source: TradingView.com

That is $780, which puts Bitcoin’s next upside target close to or above $12,000.

Pullback Theories

As Mr. Rager and others eye a BTCUSD upside continuation, specific bearish setups are also waiting to pull the rugs under bulls.

For starters, the cryptocurrency continues to feel the selling pressure while trading under a long-term descending trendline. As shown in the chart below, BTCUSD’s latest rally has paused right near the same price ceiling that has been holding it from logging a full-fledged breakout since December 2017.

BTCUSD bulls remain capped under the red trendline. Source: TradingView.com

On a macro front, the latest signals show that Bitcoin may continue its upward moves in the coming sessions ahead.

The Federal Reserve’s decision to keep its interest rate near zero, as well as to continue its bond-purchasing program until December 31 may send investors looking for safety in Bitcoin, a perceived anti-inflation asset.

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/bitcoin-could-hit-12k-on-ethereum-tailing-behaviour-analyst/

Here’s Why 100 SMA Could Trigger Fresh Surge

Bitcoin is currently consolidating in a range above the $10,700 support against the US Dollar. BTC is likely to start a fresh surge as long as it is above the 100 hourly SMA.

• Bitcoin is trading in a contracting range above the key $10,700 support zone.
• The price seems to be facing a couple of key hurdles near the $11,200 and $11,250 levels.
• There is a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must stay above the 100 hourly SMA and $10,700 to start a fresh surge.

Bitcoin Price is Consolidating Gains

After a strong rally, bitcoin price started consolidating gains below the $11,250 resistance against the US Dollar. BTC corrected lower a couple of times, but it remained well bid above the $10,700 support.

It seems like the bulls are protecting the uptrend above $10,700 and the 100 hourly simple moving average. The recent swing low was formed near $10,828 before the price recovered higher. It surpassed the $11,000 resistance, plus the 50% Fib retracement level of the recent decline from the $11,348 high to $10,828 low.

However, the price seems to be struggling to settle above $11,200 and $11,250 resistance levels. There is also a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair.

Bitcoin price holding $10,700. Source: TradingView.com

The triangle resistance is close to the 76.4% Fib retracement level of the recent decline from the $11,348 high to $10,828 low. A successful close above the $10,250 resistance may perhaps spark a strong surge.

The next major resistance is near the $11,350 and $11,400 levels, above which the bulls are likely to aim an upside break above the $11,500 resistance level in the coming sessions.

100 SMA Holds The Key For BTC

On the downside, the triangle support is near the $10,850 level and the 100 hourly SMA. If there is a downside break below the $10,850 support, there is a risk of more losses.

The main support is near the $10,700 level, below which the bears are likely to take control in the short-term. In the mentioned case, the price may probably start an extended downside correction towards the $10,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level, with a bearish angle.

Major Support Levels – $10,850, followed by $10,700.

Major Resistance Levels – $11,250, $11,400 and $11,500.

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/heres-why-100-sma-could-trigger-fresh-surge/

Why Bitcoin Ditching Stock Market Correlation For Gold Is Bullish for BTC

Bitcoin price this week exploded from its tightening consolidation range and within a day, broke through resistance at $10,000 and touched $11,400. The breakout followed gold setting a new record, rather than staying lock and step with stocks as the crypto asset has as of late.

Comparison charts show that the leading cryptocurrency by market cap may have ditched its correlation with the S&P 500 in favor of the soaring precious metal. If this is the case, this will benefit the entire crypto space – here’s why.

Bitcoin Swaps Correlation With S&P 500 For Gold

Gold set a new all-time high this week, just ahead of the United States government revealing details of their latest efforts to stimulate the economy.

The dollar dumping, as a result, sent safe haven assets like precious metals soaring as more money supply poured into the already flooded market.

The latest round of stimulus adds another $1 trillion to the Fed’s balance sheet, prompting investors to flock toward assets that could act as a hedge against the expected inflation. Bitcoin has been recently called the “fastest horse in the race against inflation” by billionaire hedge fund manager Paul Tudor Jones.

Related Reading | Gold Rally Peaks: 5 Reasons Bitcoin Will Likely Outperform The Precious Metal

In this latest shakeup in the dollar, not only did gold benefit but so did Bitcoin. In fact, Bitcoin more closely followed gold’s reaction to the continued printing of money supply than it did to the stock market.

The leading cryptocurrency by market cap has been uncannily correlated to the S&P500 since Black Thursday. But as the dollar collapsed this week, the correlation appears to have ended.

BTCUSD / SPX / XAUUSD Correlation Comparison Chart | Source: TradingView

How The Crypto Market Will Benefit From Comparison With Precious Metals

The stock market correlation caused Bitcoin and the rest of the crypto market to crash mid-March, just as the assets had been breaking out of bear market resistance. The FUD related to the pandemic proved to be too much for any asset, for that matter.

Stocks, crypto, and even precious metals collapsed. All markets rebounded sharply, but none of them have performed as well as gold. And as of this past week, Bitcoin.

The crypto asset’s correlation with the stock market has held Bitcoin back for several weeks. It has also acted as an ominous dark cloud hanging over the industry, where a second-leg down scenario in stocks could have led to a lower low in crypto.

Related Reading | How The US-China Capital War a Billionaire Warns Of Could Benefit Bitcoin

Gold shining so brightly, and the cryptocurrency sharing so many similarities with the precious metal may have finally helped investors see through the storm and realize the asset’s potential.

No longer being at risk of getting dragged down by stocks in another massive drop scenario, is yet another way the greater crypto market will benefit from the return to anti-correlation with stocks.

XAGUSD / Altcoin Market Cap Correlation Comparison Chart | Source: TradingView

It’s not just BTC suddenly correlating more closely with gold, altcoins and silver are showing a shockingly similar chart pattern. Could altcoins be proving to be the silver counterpart to Bitcoin as digital gold?

The more these crypto assets join the safe haven conversation alongside precious metals, the narrative for the next bull market could be right under our noses.

Credit: Source link

source https://cryptonews.wealthsharingsystems.com/2020/07/why-bitcoin-ditching-stock-market-correlation-for-gold-is-bullish-for-btc/