Tag: rally

  • Crypto prices surge via strongest rally in 9 months, but why?

    Crypto prices surge via strongest rally in 9 months, but why?

    Key Takeaways

    • Bitcoin is back in the 20s, Ethereum has crossed $1,500 and altcoins are powering north in what is the biggest crypto rally in 9 month
    • Optimism that Federal Reserve will pivot off high interest policy sooner than expected, following cooler inflation data
    • Next big day for crypto markets is February 1st, when the Fed will decide on the latest interest rate policy
    • Solana is up 130% since the start of the year, leading the altcoins
    • Even memes are rising, with Dogecoin and Shiba Inu again making moves
    • Some analysts fear the market is premature in pricing in an earlier-than-expected Fed pivot

     

    Crypto markets are dishing out a heavy dose of nostalgia to start the year, off to their strongest rally in 9 months.

    Bitcoin is trading close to $21,000, Ethereum is at $1,500 and altcoins are powering aggressively upward, too.

    I took a snapshot of the market on this day last week, when markets had bounced to start the new year. One week later, the direction is the same – but the rally has been taken up a notch. The below chart presents crypto price returns to start the year, a sea of upward moves:

    What is causing prices to rise?

    Over the past year, inflation has perhaps replaced pandemic as the dirtiest word in our vocabularies. But it is for good reason, with the globe gripped by an inflation crisis the likes of which we haven’t seen since the 1970s.

    But in the last few weeks, just a little bit of optimism that inflation has peaked has seeped into the market. This has led to investors betting that the Federal Reserve will peel away from interest rate rises sooner than previously expected. And the markets are doing something that most people forgot they could – they’ve gone up. 

    The market in general has risen. The S&P 500 is up close to 5%. Crypto prices can throw up a 5% candle in a matter of minutes, but the stock market is obviously less volatile, and 5% amounts to a strong move – there were only four occasions throughout what was a very volatile 2022 when the market rose by this much in a week.

    Interest rates hold the key for the crypto markets. Altcoins trade like levered bets on Bitcoin, and Bitcoin has been trading like a levered bet on the S&P 500 over the last year or so. Ever since interest rates began to be hiked in April 2022, the Bitcoin price has been freefalling.

    While there have been wobbles drawn from the crypto market itself (the LUNA death spiral, Celsius crash and staggering FTX debacle spring to mind), the key variable is undoubtedly tight monetary policy suppressing the value of all risk assets. Bitcoin will not be allowed to rise until the Fed pivots, and this past week has seen investors move towards a stance that expects that pivot earlier than previously.

    Will it continue?

    The next key date is February 1st, when the Federal Reserve will meet to decide the latest interest rate policy. These FOMC meetings, alongside the monthly CPI report, have been the key drivers in markets over the last year.

    I wrote five days ago about how we would get volatility to end the week as we ran into the CPI report. That report came in as anticipated, but reflected another month of falling inflation, which as described earlier propelled markets upward.

    Nonetheless, the surge in prices is somewhat surprising when considering the words that have thus far come out of Fed chairman Jerome Powell’s mouth. He has been adamant that a pivot is not coming and has even taken swipes at the market’s perceived premature assumption that monetary policy will be loosened again.

    Indeed, there had been plenty of false starts in the market over the last year, with investors repeatedly betting that the Fed was bluffing over the extent and speed that interest rate hikes would be implemented. This is part of the reason that the subsequent move downward has been so fierce.

    In truth, the below chart paints the picture better than a thousand words:

    Altcoins making greater moves

    As we have seen repeatedly throughout crypto history, the higher-beta altcoins are printing gains significantly higher than Bitcoin. Of course, this comes from a lower base – the downside of higher beta is that when times are tough, the pain is that much more severe, and altcoins have certainly experienced that throughout this crypto winter.

    The gains have been led by Solana, the Layer 1 that has had a tumultuous year even by crypto standards. I wrote a deep dive on it two weeks ago, but the coin had plummeted from at one point holding the third spot behind Ethereum and Bitcoin to barely hanging on inside the top 20.

    A combination of repeated outages, top projects leaving for rival blockchains and a close connection with the disgraced Sam Bankman-Fried all contributed to Solana shaving 97% from its all-time high of $260, trading towards the end of 2022 at $7.70.

    But in typical crypto standards, a flip of sentiment led by the outright inexplicable meme coin BONK has helped to boost the coin, which is now trading at $23.40, having more than doubled in the last two weeks.

    Meme coins have been enjoying the gains across the board. This would normally be the part where I’d try input some analysis about why, but we know by now that there is no real pattern to the meme coin madness, so instead I will simply list the returns. Shiba Inu is up 29%, while the Daddy of them all, Dogecoin, has added 20% and is now trading at a market cap of $11.2 billion.

    What happens next?

    For now, investors are enjoying the gains, having simply tried to survive throughout 2022. But in looking at the market, while prices have soared, volatility remains low and volumes are still way off what they were during the pandemic.

    The market has been uncharacteristically serene since the FTX implosion, and this is the first real move of any significance. While optimism is obvious, investors remain somewhat cautious and prices are still extremely suppressed from this time last year.

    A 75% fall followed by a 20% rally still amounts to a 70% fall. So while the green candles are pretty this morning for traders – and long overdue – the scale of the damage to crypto here is still severe. Institutional adoption has likely been dented harshly by the myriad scandals, there is still the potential for more dominoes to fall in the FTX web of contagion, and macro/inflation remains highly uncertain.

    The last two weeks amount to some much-needed positive news not only for crypto, but for the economy as a whole. Investors are celebrating that with surging charts, but these are still uncertain times with many twists and turns ahead.

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  • Polkadot (DOT/USD) prediction as price embarks on a relief rally from the $4.2 bottom.

    Polkadot (DOT/USD) prediction as price embarks on a relief rally from the $4.2 bottom.

    • Polkadot had the second-highest development activity in 2022

    • DOT price has heavily disappointed since the 2021 ATH but has recovered lately

    • DOT faces resistance at $5 and may correct downwards

    Polkadot (DOT/USD) buyers are struggling to break above $5. A technical outlook shows the cryptocurrency has been rejected at the building resistance for the second day. However, Polkadot fans should be at least excited by a relief rally that has seen the price recover from the $4.2 bottom.

    If time is a true judge, then the Polkadot price has disappointed heavily. The cryptocurrency touched a high of nearly $56 in November 2021 and has since come crumbling. With a single-digit price now, DOT is a shell of its former self. 

    Although 2022 may have ended on a low note for DOT buyers, enthusiasts should be happy with the blockchain’s activity. Santiment data indicates that the blockchain had the highest development activity in the year after Cardano. Polkadot was followed by Cosmos blockchain, Ethereum, and Internet Computer in the top 5. That shows that the decline in the price of the native token wasn’t in any way signalling a falling popularity of the protocol. Rather, it was due to a sustained bearish market that has hit every cryptocurrency. 

    If you are considering buying DOT, you may have to wait until the throat clears. For short-term investors, a break above $5 is the needed confirmation.

    DOT price facing resistance at $5 and 50-day MA

    DOT/USD Chart by TradingView

    Based on the price action, DOT’s long-term momentum is still bearish. The short-term is bullish, with the RSI now in the bullish zone. However, DOT is facing resistance at the 50-day MA. The moving average coincides with the $5 resistance level.

    What happens next for DOT?

    A potential correction is looming for the DOT price at the current level if bulls do not recover above $5. If a breakout occurs, DOT could set the next target above $7, with minor corrections at $5.6 and $6.

    Where to buy DOT

    Plus500

    Plus500 is a leading provider of Contracts for Difference (CFDs), delivering Leveraged trading on +2,000 financial instruments, including Forex, Commodities, Indices, Shares, Options and Cryptocurrencies. CySEC license number (#250/14)

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.

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  • Bitcoin remains close to $17k after FOMC minutes release: Will BTC rally soon?

    Bitcoin remains close to $17k after FOMC minutes release: Will BTC rally soon?

    • Bitcoin price steadied above $16,800 as US Federal Reserve officials agreed to slow its pace of interest rate hikes.

    • The latest FOMC minutes indicate that US policymakers are focused on controlling the pace of price hikes.

    • Bitcoin could surge past the $17k resistance level soon.

    BTC eyes the $17k resistance level

    The United States Federal Reserve recently released minutes from the Federal Open Market Committee for December. Fed members agreed that a restrictive policy stance would need to be maintained for now until the incoming data provided confidence that core inflation was on a sustained downward path back down to 2%.

    This latest cryptocurrency news saw Bitcoin, the world’s leading cryptocurrency by market cap, maintain its price above the $16,800 level over the last 24 hours. It has lost less than 1% of its value, and the price of Bitcoin now stands at $16,834. 

    The broader crypto market is also recovering from its recent slump. At press time, the total cryptocurrency market cap stands at $819 billion, up by less than 1% in the last 24 hours.

    Key levels to watch

    The BTC/USD 4-hour chart is bullish as Bitcoin has held its ground above the 50-day Exponential Moving Average (EMA) at $16,714 over the last few days. 

    The MACD line is above the neutral zone, indicating that the leading cryptocurrency has preserved its downward trend from the standpoint of realised price. The 14-day RSI of 61 also shows that more bulls controlling the market could see BTC enter the overbought region. 

    If the bullish momentum increases, BTC could surge past the first major resistance level at $17,145 over the next few hours. However, Bitcoin could struggle to surpass the second major resistance level at $17,485 in the short term, unless it gains support from the broader crypto market. 

    Where to buy Bitcoin now

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy BTC with eToro today

    Bitstamp

    Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

    Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.


    Buy BTC with Bitstamp today

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  • Bitcoin price recoils as hopes for a Santa rally fade

    Bitcoin price recoils as hopes for a Santa rally fade

    • Bitcoin price has moved sideways in the past few weeks.

    • The Federal Reserve sounded more hawkish than expects.

    • It has formed a rising wedge pattern.

    Bitcoin price continued recoiling on Monday as investors remained concerned about monetary policy and the crypto industry. The BTC coin was trading at $16,750, where it has been in the past few days. This price is a few points below last week’s high of $16,867.

    No Santa rally?

    The BTC/USD price has continued consolidating in the past few weeks. After staging a comeback last week, the pair suffered a pullback as investors reflected on the latest Federal Reserve interest rate decision.

    In its decision last week, the Fed decided to hike interest rates by 0.50% in its final decision of the year. It had previously increased rates by 75 basis points in the previous four monetary policy meeting. Also, the bank decided to continue with it quantitative tightening policy, as we wrote here.

    The most important change was that the Fed would continue hiking rates in the coming months. That statement helped the market to change its view about monetary policy. Before the meeting, analysts were expecting that the central bank to sound a bit dovish since inflation has started cooling.

    After the decision, American and global stocks collapsed while bond yields rose to their highest level in a few week. The US dollar index, which was recently falling, has made a strong recovery in the past few days.

    The other main reason why Bitcoin price has been recoiling is the rising outflows from most exchanges. Binance, the biggest exchange in the world, has seen its outflows rise to more than $7.5 billion in the past 7 days. In the same period, Bitfinex has seen over $335 million in outflows while Crypto.com lost over $76 million.

    Therefore, all these actions mean that the Santa rally has not happened. A Santa Rally is a situation where stocks rally before the market opens.

    Bitcoin price forecast

    BTC/USD chart by TradingView

    So, is it safe to buy Bitcoin? The BTC price has been in a tight range in the past few days. In this period, it has remained below the important resistance level at $16,867. It is also consolidating at the 25-day and 50-day moving averages. 

    At the same time, the Reltive Strength Index (RSI) has formed a bullish divergence pattern, which is a bullish sign. It has also formed a rising wedge, which is usually a bearish sign. Therefore, there is a likelihood that the coin will have a bearish breakout. If this happens, it could drop to $15,000.

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  • This analyst relies on on-chain metrics to support a Bitcoin price (BTC/USD) rally

    This analyst relies on on-chain metrics to support a Bitcoin price (BTC/USD) rally

    • Bitcoin rose to $17,000 on Monday.

    • InvestAnswers thinks BTC is about to become bullish based on realised value.

    • The token faces resistance at $19,000 and 50-day MA.

    Bitcoin price (BTC/USD) was up marginally on Monday as most cryptocurrencies made slight recoveries. BTC was back to $17,000 even as data by crypto derivatives exchange Deribit showed that sentiment had shifted in favour of the cryptocurrency. But as this happens, a popular crypto analyst is projecting a rally.

    InvestAnswers, a popular crypto analyst, says that on-chain signals suggest BTC is overdue for a rally. The pseudonymous analyst examines Bitcoin’s realised price or RP metrics in making the argument. Normally, RP posts the value of all BTC at the price the tokens were bought and then divides it by the number in circulation. InvestAnswers says that BTC never stays below the RP for long. 

    The analyst says BTC has been under RP for 170 days. In 2020, BTC stayed below the RP for 8 days, while in 2018, it was 115 days. In 2015, it stayed a little longer at 240 days and only 110 days in 2011. According to the analyst, the RP of BTC lies at $21,000. Using the analogy, he says that the Bitcoin price is about to soar.

    Besides the RP, InvestAnswers says that the rising weakness in the US dollar index suggests a likely rally. The index is inversely correlated to the risk-on assets, meaning that if it goes lower, cryptocurrencies go the other way.

    BTC price analysis and outlook amid slight recoveries

    BTC/USD Chart by TradingView

    BTC trades above the 20-day moving average. Bulls have been winning the war at $16,000, although the bears are still relentless. The RSI remains below the midpoint, and the bullish momentum looks somewhat weak but improving.

    Bulls will have the next test at the 50-day MA and the $19,000 resistance.

    Should you buy BTC?

    BTC is still largely bearish. However, all indications are buyers looking for the next opportune moment. In the meantime, BTC’s eyes $19,000 and a recovery past the level could usher in more upsides.

    Where to buy BTC

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy BTC with eToro today

    Bitstamp

    Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

    Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.


    Buy BTC with Bitstamp today

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  • SHIB could rally another 20% based on these factors

    SHIB could rally another 20% based on these factors

    Shiba Inu price took the market by surprise as a 20% rally unfolded early in the week. Key levels have been identified to gauge a potential entry before the uptrend continues.  

    Shiba Inu price could rally higher

    Shiba Inu price rallied in applaudable fashion as the notorious meme coin pulled off a stunning 20% rally. At the current time, the bears have entered the market, forging an 8% decline. Still, there are reasons to believe the uptrend move is still ongoing. 

    Shiiba Inu price currently auctions at $0.00001089. During the recent upswing, the bulls have breached both the 8-day exponential and 21-day simple moving averages. Now, the two trend indicators converge under the SHIB price, which signals bullish strength.

    tm/shib/10/27/22

    SHIB/USDT 12-Hour Chart

    A Fibonacci retracement tool surrounding the strongest part of the recent rally suggests the current profit-taking consolidation is just a 50% retracement. If market conditions persist, a bullish cross of the indicators could prompt an additional 20% rally. Key bullish targets would be $0.00001250 and potentially $0.00001300.

    Invalidation of the bullish thesis could occur if the bears manage to tag the $0.00001040 liquidity zone. A sweep of the low could trigger a mudslide rally toward $0.00000970. The price of Shiba Inu would decline by 11% if the invalidation scenario occurred. 

    In the following video, our analysts deep dive into the price action of Shiba Inu, analyzing key levels of interest in the market. -FXStreet Team

     

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  • Crypto Price Today Live: Bitcoin nears $21K; Shiba Inu & Dogecoin rally up to 15%

    Crypto Price Today Live: Bitcoin nears $21K; Shiba Inu & Dogecoin rally up to 15%

    New Delhi: Crypto market continued to gain on Thursday despite muted earnings from the tech sector. Bitcoin marched towards $21,000 levels, whereas the total market cap of crypto space topped the $1 trillion mark again.
    Most major altcoins were in the green, with a stellar buying interest in the popular meme coins. All eyes were set on the US Fed’s monetary policy meeting, scheduled next week.

    Barring the polygon and the US dollar-pegged Tether, all other top crypto tokens were trading higher. Dogecoin zoomed 15
    %, Shiba Inu was up by over 6% and Ethereum jumped 4%

    The global cryptocurrency market cap hit the $1 trillion mark, after rising up to 3% in the last 24 hours. However, the total trading volume jumped as much as 13% to $102.4 billion.


    Expert take
    Extending the Buoyancy, the global market cap touched $1 trillion after almost a month. The top two cryptos – Bitcoin and Ethereum- also saw some renewed interest, said Prashant Kumar, CEO and Founder, weTrade.
    “Positive momentum around the appointment of UK prime minister Rishi Sunak, global markets along with a hope of a reduced interest rate hike in the US Federal Reserve market next week all played a role,” he added.

    Tech View by Giottus Crypto Platform
    Ethereum (ETH) has turned bullish on the lower time frames. Much of this move can be attributed to the broader market sentiment turning positive after Bitcoin broke through a year-long resistance. ETH has taken this opportunity to rise more than 30% from its recent bottom.
    ETH still needs more confirmations on the higher time frame charts to establish an uptrend. While it has been trading well above its 50-day moving average of $1,380, it will need to clear resistance at $1,700 (its .618 fibonacci retracement between August and now) to continue moving up. Slightly above this at $1,800, it will be able to register a higher high and signal a clear market structure change. Those looking to open long positions may want to therefore adopt a wait and watch approach.

    Chart-ETH (8)ETMarkets.com

    For those with a bullish bias looking to enter, support at $1,500 and $1,440 can offer good opportunities to engage in some buys on dips, the experts suggested. With its daily RSI hitting 70, a minor correction can be reasonably expected in the coming days, or at the very least – some sideways consolidation, they added.

    Global Updates
    Google reported its softest advertising growth in nine years, with company management taking note of softer crypto ad spending as contributing to the weak numbers.

    The decentralized autonomous organization (DAO) behind crypto exchange SushiSwap has approved a legal structuring by an overwhelming majority.

    The flagship crypto fund for venture-capital firm Andreessen Horowitz’s, which is also known as a16z, has cratered by more than 40 per cent in the first half of this year, the Wall Street Journal reported, citing people familiar with the matter.

    The UK National Police Chiefs’ Council (NPCC) has stationed crypto tactical advisers in police departments nationwide to help investigate and seize digital assets tied to crime.

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  • Dogecoin and Shiba Inu Price Prediction: 50% Bull Rally on The Horizon

    Dogecoin and Shiba Inu Price Prediction: 50% Bull Rally on The Horizon

    The Shiba Inu (SHIB) price has broken out from a descending wedge pattern and is moving towards the top of its range high.

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  • Bitcoin could rally past the $22k resistance level as it breaks $20,500

    Bitcoin could rally past the $22k resistance level as it breaks $20,500

    Bitcoin is looking to trade above the $21k level for the first time this month after adding more than 7% to its value in the last 24 hours.

    The cryptocurrency market has continued its excellent start to the week. Bitcoin, the world’s leading cryptocurrency by market cap, has been performing excellently over the last 24 hours.

    Bitcoin has added more than 7% to its value so far today. This rally has seen Bitcoin move past the $20k psychology level for the first in two weeks.

    At press time, Bitcoin is trading above $20,600 per coin. As the market continues to recover, Bitcoin could rally past the $21k level for the first time this month.

    The rally comes as the broader cryptocurrency market continues its excellent start to the week. The total crypto market cap currently stands at $997 billion, up by more than 7% in the last 24 hours.

    If the market continues its upward movement, the total market cap could cross the $1 trillion mark before the end of the day. Ether is trading above $1,500 for the first time this month, up by 12% in the last 24 hours. 

    Key levels to watch

    The BTC/USD 4-hour chart is bullish, as Bitcoin has been performing well over the last 24 hours. The technical indicators show that Bitcoin is performing on par with the broader market. 

    BTC/USD Chart By TradingView

    The MACD line is deep within the positive zone, indicating that the bulls are now in control of the market. The 14-day RSI of 77 also shows that Bitcoin could soon enter the overbought region if the rally continues.

    At press time, Bitcoin is trading at $20,604 per coin. If the bullish trend continues, Bitcoin could surge past the first major resistance level at $21,312 before the end of the day.

    In the event of an extended bullish run, Bitcoin could trade above $22,600 for the first time in more than a month. 

    Where to buy Bitcoin now

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy BTC with eToro today

    Bitstamp

    Bitstamp is a leading cryptocurrency exchange which offers trading in fiat currencies or popular cryptocurrencies.

    Bitstamp is a fully regulated company which offers users an intuitive interface, a high degree of security for your digital assets, excellent customer support and multiple withdrawal methods.


    Buy BTC with Bitstamp today

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