Category: NEWS

Bitcoin (BTC) has largely been directionless since the start of the year as the bulls have been buying on dips while bears are selling the rallies. This suggests that the price is consolidating in a large range with both the bulls and the bears waiting for the next trigger to establish their supremacy. 

The short-term volatility may pick up after the United States Federal Reserve announces its policy decision on March 16 but unless the Fed springs a surprise, the likelihood of a new trending move could be low. Bitcoin could spend some more time in a bottoming formation before breaking out of it.

A positive sign in the range-bound action this year has been evidence of accumulation by both the small investors and select whales. This has coincided with a sustained drop in Bitcoin balances on exchanges. The combined Bitcoin balances on the 21 exchanges it covers have dropped to 2.32 million Bitcoin, the lowest since August 2018, according to CryptoQuant.

Could Bitcoin break above the immediate resistance level and pull the altcoins higher? Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin has bounced from the immediate support at $37,000, indicating that bulls are attempting to defend this level. The buyers will now try to push the price above the moving averages. If they succeed, it will suggest strong demand at lower levels.

The bulls will then try to extend the up-move by clearing the overhead hurdle at $42,594. If they manage to do that, it will be the first indication that the bears may be losing their grip. The BTC/USDT pair could then rise to the overhead zone between $45,400 and the resistance line of the ascending channel.

Conversely, if the price turns down from the moving averages, it will suggest that bears are unwilling to let go of their advantage. The sellers will then attempt to solidify their position by pulling the price below the support line of the channel. Such a move could signal the resumption of the downtrend.

ETH/USDT

The bulls are attempting to defend the support line of the symmetrical triangle. A strong bounce off the current level could push Ether (ETH) to the moving averages where the bears are again likely to mount a strong defense.

If the price turns down from the moving averages, it will suggest that the sentiment remains negative and traders are selling on relief rallies. That will increase the possibility of a break below the triangle. The ETH/USDT pair could then resume its downtrend and decline to $2,159.

Contrary to this assumption, if bulls propel the price above the moving averages, it will suggest that the selling pressure may be reducing. The pair could then rise to the psychological level at $3,000 and later challenge the resistance line of the triangle.

BNB/USDT

BNB is attempting to rebound off the support zone between $360 to $350. This suggests that buyers continue to accumulate on dips near the support zone.

The buyers will have to push and sustain the price above the moving averages to indicate that the bears may be losing their grip. If the price sustains above the 50-day simple moving average (SMA) ($389), the bulls will attempt to push the BNB/USDT pair to $425.

This positive view will invalidate if the price once again turns down from the moving averages and breaks below $350. Such a move will suggest that the sentiment remains negative and traders continue to sell on rallies. That could pull the price to the critical support at $320.

XRP/USDT

Ripple (XRP) price soared above the downtrend line on March 11 but the rally met with stiff resistance at $0.85. This suggests that the bears have not yet given up and they continue to sell on rallies.

The price has pulled back to the 20-day exponential moving average (EMA) ($0.75), which is likely to act as a strong support. If the price rebounds off the current level, the buyers will make one more attempt to push and sustain the XRP/USDT pair above $0.85. If they succeed, the pair could rally to $0.91 and then rise to the psychological resistance at $1.

This positive view will invalidate if the price breaks below the moving averages. Such a move will suggest that the break above the downtrend line may have been a bull trap. A break and close below $0.69 could open the doors for a possible drop to $0.62.

LUNA/USDT

Terra’s LUNA token slipped below $94 on March 11 but the bears could not pull the price to the 20-day EMA ($82). This is a positive sign as it shows that traders are buying on every minor dip.

Although the rising 20-day EMA indicates advantage to buyers, the negative divergence on the relative strength index (RSI) suggests that the bullish momentum may be weakening.

The bulls are attempting to push the price back above $94. If that happens, the buyers will make one more attempt to clear the overhead hurdle at $105 and resume the uptrend. If they do that, the LUNA/USDT pair could rally to $115.

Conversely, if the price turns down from the overhead zone, the bears will try to sink the pair below the 20-day EMA.

SOL/USDT

Solana (SOL) broke and closed below the strong support at $81 on March 11 and followed it up with further selling on March 13. However, the bears have not been able to break the intraday low at $75 made on Feb. 24.

The positive divergence on the RSI indicates that the selling pressure may be reducing. The bulls are attempting to push the price back above the breakdown level at $81 on March 14. If they sustain the price above $81, it will suggest that the recent breakdown may have been a bear trap. The buyers will then strive to push the SOL/USDT pair above the 20-day EMA ($87).

This positive view will invalidate if the price turns down from the current level and breaks below $75. That will suggest the bears have flipped the $81 level into resistance. The pair could then drop to $66.

ADA/USDT

Cardano (ADA) is attempting a rebound off the strong support at $0.74 but the effort lacks conviction. A minor positive is that the RSI is showing the first signs of positive divergence, indicating that the selling pressure may be reducing.

The bulls will have to push and sustain the ADA/USDT pair above the 20-day EMA ($0.85) to signal that the bears may be losing their grip. That could open the doors for a possible retest of the breakdown level at $1. This level is likely to attract strong selling.

Contrary to this assumption, if the price turns down from the current level or the 20-day EMA, it will indicate that bears are pouncing on every minor rally. That will increase the possibility of a break below $0.74. If that happens, the downtrend could extend to $0.68.

Related: Bitcoin tracks $39K ahead of Europe vote on Proof-of-Work legality

AVAX/USDT

Avalanche (AVAX) broke below the uptrend line on March 13, indicating that the bears have overpowered the bulls. The attempts by the buyers to push the price above the breakdown level on March 14 met with strong selling by the bears.

If bears sink and sustain the price below $64, the AVAX/USDT pair could slide to the strong support at $51. The downsloping 20-day EMA ($74) and the RSI in the negative territory indicate advantage to sellers.

This bearish view will invalidate in the short term if the price turns up from the current level and breaks above the moving averages. The bulls will then try to overcome the barrier at the downtrend line of the descending channel.

This is an important level to keep an eye on because the bulls have faltered at the downtrend line on four previous occasions. If bulls push and sustain the price above the channel, the pair could rally to $100.

DOT/USDT

Polkadot (DOT) once again turned down from the 50-day SMA ($18) on March 13 but the bulls are not allowing the price to sustain below the 20-day EMA ($17).

The price has been stuck in a tight range between $16 and $19 for the past few days, indicating indecision among the bulls and the bears. Such tight-range trading is usually followed by a sharp trending move.

If buyers push and sustain the price above $19, the DOT/USDT pair could rally to the next overhead resistance at $23. A break and close above this level will signal that the downtrend may be over.

Alternatively, if the price turns down and breaks below $16, the pair could retest the critical support at $14.

DOGE/USDT

Dogecoin (DOGE) made a strong attempt to start a relief rally on March 14 but the efforts of the bulls met with stiff resistance at the 20-day EMA ($0.12).

If the bulls fail to clear the overhead hurdle, the bears will fancy their chances and try to sink the pair below the psychological support at $0.10. If that happens, the selling could further pick up momentum and the DOGE/USDT pair may slide to $0.06.

Contrary to this assumption, if the price rises from the current level or rebounds off $0.10, it will suggest accumulation by the bulls. The buyers will have to push and sustain the price above the 50-day SMA ($0.13) to signal a possible change in trend.

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.

Market data is provided by HitBTC exchange.

Bitcoin (BTC) has been relatively calm during the weekend, indicating that traders are playing it safe and not waging large bets before the upcoming Federal Open Market Committee meeting on March 15 and March 16. The quantum of the rate hike could act as the next trigger for the crypto markets.

The current neutral setup of Bitcoin has kept the analysts guessing. Analytics resource Material Indicators warned that Bitcoin could plunge but they advised investors to be ready to buy the dip as they believe that the “bounce can change your life.”

A Price Waterhouse Coopers’ Sports Outlook 2022 report for North America highlighted three use cases for nonfungible tokens, which could shape the future of sports. The consultancy believes that NFTs and digital assets are among the ten major trends in the sports industry.

Could the crypto markets start a directional move in the near term? Let’s study the charts of the top-5 cryptocurrencies that may participate in a rally if the bullish sentiment picks up.

BTC/USDT

Bitcoin formed a Doji candlestick pattern on March 12 and on Sunday, indicating indecision among the bulls and bears. The price is stuck between the 20-day exponential moving average ($39,810) and the horizontal support at $37,000.

The 20-day EMA is flattish and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand.

If the price rises and breaks above the 50-day simple moving average ($39,978) the bulls will attempt to push the BTC/USDT pair above $42,600. If they succeed, the pair could rally to $45,400 and later to the resistance line of the channel.

Conversely, if the price turns down and breaks below $37,000, the bears will smell an opportunity. The sellers will then try to pull and sustain the pair below the support line of the channel. Such a move could clear the path for a possible drop to $30,000.

The pair is forming a descending triangle pattern which will complete on a break and close below the strong support at $37,000. The pair could then drop to $34,322 and later start its journey toward the pattern target at $29,250.

Alternatively, if bulls push and sustain the price above the 50-SMA, the pair could rise to the downtrend line. A break and close above this level will invalidate the bearish pattern. That could attract buying and the pair may then rally toward $45,400.

DOT/USDT

Polkadot (DOT) has been in a downtrend for the past several months but the bulls are trying to form a bottom in the zone between $16 and $14. The price rose above the 20-day EMA ($17) but the bulls have not been able to overcome the barrier at the 50-day SMA ($18).

However, a positive sign is that the bulls have not given up much ground from the 50-day SMA. This suggests that the traders may be holding on to their position anticipating a break above the resistance. If that happens, the DOT/USDT pair could rally to the overhead resistance at $23 where the bears may again pose a stiff challenge.

The flattish 20-day EMA and the RSI near the midpoint suggest a range-bound action in the short term. If the price turns down from the 50-day SMA, the bears will try to pull the pair below $16. If they succeed, the pair could retest the critical support at $14.

The 4-hour chart shows that the pair is oscillating between $16 and $19. The failure of the buyers to propel the price above the overhead resistance may have attracted profit-booking from short-term traders. That pulled the price to the 50-SMA.

If the price rises above the 200-SMA, it will suggest that bulls continue to buy on dips. The buyers will then again try to drive the price above the overhead resistance at $19. If they manage to do that, the pair could rise to $20 and later make a dash toward $23.

Conversely, a break and close below the 50-SMA may increase the possibility of a drop to the strong support at $16.

SAND/USDT

The Sandbox (SAND) has been range-bound between $2.55 and $4.86 for the past several weeks. The bears pulled the price below the 200-day SMA ($3.15) on March 4 but haven’t been able to break the support at $2.55.

This indicates accumulation near the support of the range. The RSI is showing signs of a positive divergence, indicating that the bearish momentum may be weakening.

If the price rises from the current level, the bulls will try to push the SAND/USDT pair above the 200-day SMA. If that happens, the pair could rise to the 50-day SMA ($3.51). A break and close above this resistance could open the doors for a possible rally to $4.50 and then to $4.86.

This bullish view will invalidate in the short term if the price turns down and slides below $2.55. That could suggest the resumption of the downtrend.

The 50-SMA has been acting as a stiff resistance on the 4-hour chart. If bears sink the price below $2.70, the pair could drop to the solid support at $2.55. A break and close below this level could indicate advantage to bears.

To negate this view, the bulls will have to push the price above the zone between the 50-SMA and $3. If that happens, the pair could rally to $3.42 where the bears may again mount a strong defense.

Related: Cryptocurrencies against the ‘silent thief.’ Can Bitcoin protect capital from inflation?

RUNE/USDT

THORChain (RUNE) broke above the moving averages on March 1 and successfully defended the level during the retest on March 8. This suggests that the sentiment has changed from sell on rallies to buy on dips.

The bulls will now try to push the price to the 200-day SMA ($7.90) where the bears may again pose a strong challenge. If the price does not give up much ground from the 200-day SMA, the bulls will make one more attempt to clear this hurdle. If they succeed, the RUNE/USDT pair could rise to $9.

Alternatively, if the price turns down from the current level, the 20-day EMA is the important level to watch out for. A strong rebound off this level will suggest that the bullish sentiment remains intact while a break below it could result in a decline to $4.

The 20-EMA on the 4-hour chart is sloping up and the RSI is in the positive zone, indicating that the bulls have the upper hand. The pair could now rise to the overhead resistance at $7 where the bears will try to stall the up-move.

Alternatively, if the price turns down from the current level, the pair could drop to the 20-EMA. If the price rebounds off this level, the bulls will attempt to resume the uptrend. The bears will have to pull and sustain the price below the 20-EMA to indicate a change in the short-term trend.

ZEC/USDT

Zcash (ZEC) broke and closed above the $135 resistance on March 8, which completed a double bottom pattern. This was followed by a break above the 200-day SMA ($145) on March 10, signaling that bulls are back in the game.

The bears are currently attempting to pull the price back below the 200-day SMA and challenge the breakout level at $135. This is an important level for the bulls to defend because a break below it could suggest that the recent breakout may have been a bear trap. The ZEC/USDT pair could then drop to the 50-day SMA ($114).

If the price rebounds off the current level or $135, it will suggest that the sentiment remains positive and traders are buying on dips. The bulls will then try to drive the pair above $160 and resume the up-move. The target objective of the breakout from the double bottom pattern is $189.

The bears pulled the price below the 20-EMA on the 4-hour chart but they have not been able to sustain the lower levels. This suggests that bulls continue to buy on every minor dip. The bulls will now try to push the price above $160 and resume the uptrend. The rising 20-EMA and the RSI in the positive territory indicate that the path of least resistance is to the upside.

Contrary to this assumption, if the price turns down from the overhead resistance and slips below $143, the selling could pick up momentum. The pair could then drop to the critical support at $135.

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.

XRP price risks dropping by more than 25% in the coming weeks due to a multi-month bearish setup and fears surrounding excessive XRP supply.

XRP descending triangle

XRP has been consolidating inside a descending triangle pattern since topping out at its second-highest level to date — near $1.98 — in April 2021.

In doing so, the XRP/USD pair has left behind a sequence of lower highs on its upper trendline while finding a solid support level around $0.55, as shown in the chart below.

In the week ending March 13, XRP’s price again tested the triangle’s upper trendline as resistance, raising alarms that the coin could undergo another pullback move to the pattern’s support trendline near $0.55, amounting to a drop between 25% and 30%.

The downside outlook also takes cues from other bearish catalysts that has emerged around the triangle resistance. 

For instance, XRP formed a bearish hammer on March 12, a single candlestick pattern with a small body and a long upside wick, suggesting lower buying pressure near the coin’s week-to-date top of around $0.85.

Additionally, the price turned lower after testing a confluence of resistances defined by its 20-week exponential moving average (20-week EMA; the green wave) and its 50-week EMA (the red wave), as shown in the attached image below.

Excessive supply FUD

More downside cues for XRP come after Ripple Labs locked 800 million XRP in escrow as a part of its programmed schedule for withdrawals.

The blockchain payment company moved around 100 million XRP worth nearly $40 million to exchange wallets on March 3. Meanwhile, it kept the other 700 million XRP (worth around $550 million) in an escrow account, raising anticipations that at least 200 million XRP would be flooded into the market to generate funds for Ripple’s operational expenses, as well as to distribute XRP among Ripple’s global clientele.

Meanwhile, it kept the other 700 million XRP (worth around $550 million) in an escrow account, raising anticipations that at least 200 million XRP would enter the market to generate funds for Ripple’s operational expenses, as well as to distribute XRP among Ripple’s global clientele.

I understood there are some 800 million $XRP that are locked up and ready to be sold…someone should check the increase in circulating supply to verify this

— Shyan (@tayshyan) March 12, 2022

The selloff fears originated from the XRP price’s earlier response to unexpected supply hikes. For instance, XRP/USD fell by more than 50% to near $0.60 four months after its net supply in circulation increased from 40.46 billion to over 47 billion in just two days.

Nonetheless, Ripple’s withdrawal of 800 million XRP has not yet been reflected in its net circulating supply.

Profit-taking risks mount

Another catalyst that hints XRP’s price could fall 25-30% to reach its descending triangle target is a Santiment indicator that tracks social media trends and their impact on market trends.

XRP’s price rose by over 15% week-to-date on March 12, notes Santiment, alongside a large spike in social media searches for the hashtag #XRPNetwork, suggesting that it could follow up with a potential selloff ahead. Excerpts:

“Historically, our social trends indicate that profit-taking is justified whenever the crowd makes the #XRPNetwork a top topic.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

We ask the buidlers in the blockchain and cryptocurrency sector for their thoughts on the industry… and throw in a few random zingers to keep them on their toes!

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This week, our 6 Questions go to Joe DiPasquale, CEO of BitBull Capital — a company that manages a bundle of crypto hedge funds and has access to closed and exclusive funds.

Joe DiPasquale is CEO of BitBull Capital, which has managed crypto hedge funds since 2017. Joe founded BitBull because he believes in active management in crypto investments. He has been an investor for 10 different crypto hedge funds, in addition to having run his own active strategies since 2013.

Previously, Joe worked in investment management, investment banking, technology and strategy consulting at Deutsche Bank, Bain and McKinsey. He received his BA from Harvard University and MBA from Stanford University. BitBull also runs BitBull Research, which regularly publishes its “Crypto Investing Newsletter,” available with a free subscription on BitBull’s website, as well as its “Opportunistic Deals Memo,” available only to investors.

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1 — What’s a problem you think blockchain has a chance to solve but hasn’t been attempted yet?

Most problems that will be solved by blockchain aren’t yet solved. Ben Horowitz of Andreessen Horowitz has said that it’s similar to the App Store that came out on iPhones in 2008 — we couldn’t conceive of apps like Uber or Pokemon Go or others, but the technology was created. With blockchain, we are seeing its use in cryptocurrencies, DeFi, NFTs and the Metaverse, and even traditional finance, but most developments are still to come.

 

2 — What kind of consolidation do you expect to see in the crypto industry in 2022?

I don’t believe 2022 will be a year of consolidation; rather, it will be a year of continued improvement of protocols, from Eth2 to various others such as Solana, Polkadot, Avalanche and more. While consolidation is inevitable, we are still in the early stages of development and expansion. This is a time for the creation and diversity of technologies.

3 — Which countries are doing the most to support blockchain, and which ones will be left behind?

It will certainly be interesting to hear Biden’s planned executive order around crypto, but El Salvador has done the most to support blockchain and crypto. It was the first country to officially classify Bitcoin as a legal currency. There are other countries, like Japan and Switzerland, where blockchain development has been promoted and encouraged. And although it’s a territory, not a country, Puerto Rico is quickly becoming a hotbed of blockchain and crypto activity.

 

4 — When you tell people you’re in the blockchain industry, how do they react?

It depends on how you phrase it. When I tell people about our positive returns through many down periods in crypto, such as the beginning of 2022, or about getting 15%–20% APY on stablecoins vs. 0.1% with a bank account, they are interested. When you simply tell people that you run a “crypto hedge fund,” they tend to not understand how it’s different from buying and holding Bitcoin.

5 — Who makes sense to you, and who makes no sense whatsoever?

One of the most important things in investing is to be able to take in information from a variety of sources, including — and especially — those you disagree with. If people aren’t making sense to me, I try to listen twice as hard. On the other hand, one thing I love about investing and running hedge funds is that we’re very quantitatively measured, and our results are out there for all to see monthly.

 

6 — Name the things you own that you’ll never part with.

I spend most of my time working, so my desk setup is specific to me and has been built over time to be comfortable and efficient, including my second monitor and ability to sit or stand. There are also certain things I’ve gotten over the years, such as an artistic Bitcoin representation from a meeting in Japan, which I also keep on my wall and love.