Tag: Bitcoin

Bitcoin: This Indicator Flashes Green For The First Time Since January 2024

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According to the candlestick arrangement in the daily chart, Bitcoin is moving inside a range. BTC is also down roughly 20% from the all-time high at spot rates. Though the series of lower lows posted in the past few trading days is bearish, one analyst is upbeat, expecting an encouraging recovery in the sessions ahead.

This Indicator Flashes Green: Time For Bitcoin To Rally?

Taking to X, the analyst notes that the 50-day Williams %R oscillator is turning from oversold territory, signaling that the bear run could end. Historically, the indicator has accurately signaled buying opportunities whenever it turns from oversold territory.

50-day Williams oscillator on BTC chart | Source: Analyst on X

The Williams %R oscillator is a crucial technical indicator chartists use to assess momentum and identify potential oversold or overbought conditions. When the indicator falls below -80, it suggests the asset being analyzed is oversold, potentially indicating a buying opportunity. Conversely, when it rises above +20, it may mean that the asset is overbought, prompting the trader to adjust their strategy accordingly.

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Since the beginning of 2023, the analyst observes that the 50-day Williams %R oscillator mapping Bitcoin prices has dipped into oversold territory on four occasions. Notably, each time the oscillator reversed from this zone, BTC prices rose in tandem.

Now, with the Williams %R oscillator returning from the oversold territory roughly ten days ago, the analyst is optimistic. It returned from the oversold territory in January 2024, preceding the bull run in Q1 2024.

If past performance is anything to go by, BTC is likely ready for a leg up. Considering the extended sideways movement and lower lows since prices peaked in mid-March 2024, this development will be a massive boost for the coin.

Does BTC Stand A Chance After Extended Consolidation?

The asset has become more dynamic since the approval of spot Bitcoin exchange-traded funds (ETFs). Broader market conditions, such as regulatory changes, macroeconomic trends, and investor sentiment increasingly influence it.

Subsequently, this dynamism can impact the accuracy of technical indicators like the Williams % R oscillator. This tool lags and doesn’t factor in events in real time. Therefore, while the oscillator has been reliable in the past, it may not necessarily accurately predict the future cycle.

Bitcoin price trending sideways on the daily chart | Source: BTCUSDT on Binance, TradingView

For this reason, the coming days and weeks will be crucial for Bitcoin. If the price breaks out of its current range upwards, it could lend credence to the bullish interpretation.

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Currently, BTC is in a narrow range. According to the daily chart, support is at $56,500, and resistance is at $66,000.

Feature image from DALLE, chart from TradingView

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Dalmas Ngetich

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May 14, 2024
Is Bitcoin Out Of The Woods? Analyst Bullish On 6-Figure Future
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Bitcoin (BTC) began the month with the deepest retrace of the cycle, falling to the $56,000 support level. The retrace raised alarms for some crypto investors and market watchers, who feared the bull run had ended.

Since then, the largest cryptocurrency by market capitalization has recovered crucial levels, and analysts have identified bullish patterns on BTC’s chart, suggesting that it might finally be out of the woods.

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Is Bitcoin Out Of Danger?

As the May 1st retrace developed, crypto analyst Rekt Capital highlighted the similarities between Bitcoin’s 2016 and 2024 post-halving performances. He suggested that the flagship cryptocurrency’s price development came “as no surprise,” as it was mirroring the “post-Halving Bitcoin Danger Zone” of 2016.

Per the analyst, the “Danger Zone” is officially over, which BTC is “celebrating with a good bounce from the Re-Accumulation Range Low support.” He stated that May could be an “unremarkable” month for the largest cryptocurrency, potentially continuing next month. However, Bitcoin is “running out of unremarkable months” before the beginning of this cycle’s “Parabolic Phase.”

Additionally, Rekt Capital considers that BTC’s sell-side momentum is starting to show signs of slowing down, “slowly developing a curl against the $60,000 support.” Per the post, Bitcoin must continue to hold this support zone for the curl to “progress and eventually lift up.”
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BTC's curl pattern developing. Source: Rekt Capital
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Similarly, analyst Bluntz identified a bullish engulfing pattern on Thursday, considering there would be “a solid engulfing on the daily close.” To the analyst, it appeared that the “next push-up into ATH has started.”

This morning, Bluntz confirmed the pattern formation and announced to his followers that this cycle’s Round 2 began, which would lead to a “fresh ATH.”

BTC’s Strength Could Lead The Price To 6-Figures

Following the bullish analysis, CryptoJelle stated that BTC “is looking good.” Per his post, the cryptocurrency “has nearly completed a full reset,” as it’s back to the 100-day Exponential Moving Average (EMA).

Additionally, the chart displays a “bullish MACD cross” below the zero line and the “first higher low in a long time,” suggesting a positive divergence.

Jelle highlights that BTC’s price is again pushing into the trendline that “has pushed prices lower over the past weeks.” Despite the higher low, he points out the necessity of reclaiming the $63,000 support zone before new highs come.

For these new highs, he set an $82,000 target for BTC’s price, suggesting that a 6-figure price for the flagship cryptocurrency is possible during this cycle.

#Bitcoin is pushing into the trendline that has pushed prices lower over the past weeks — once again.

Looks like a higher low has been put in, but we still need to break $63,000 convincingly.

Chop city until that happens.

Stick to the plan. pic.twitter.com/ClTuv8QmhO

— Jelle (@CryptoJelleNL) May 13, 2024

The analyst emphasizes Bitcoin’s performance this cycle, stating that the community has under-appreciated its strength during this bull run. He considers that the run is not over, as the “Halving” event occurred just a few weeks ago, and BTC’s price has been consolidating around the previous cycle’s all-time high for a long period.

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On Monday, Bitcoin surged to $63,000 after hovering between $60,000 and $61,000 for the past few days. Despite its recent performance showing short-term red numbers, BTC’s price still registered a 25.7% and 76.5% increase in the three-month and six-month periods, respectively.

At the time of writing, BTC is trading at $62,752, a 3% increase in the past 24 hours.
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BTCis performance in the three-day chart. Source BTCUSDT on TradingView
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Featured Image from Unsplash.com, Chart from TradingView.com
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Rubmar Garcia

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May 13, 2024
Bitcoin Price Signals Bearish Continuation, Why BTC Could Drop Below $60K
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Bitcoin price started a fresh decline from the $62,000 resistance zone. BTC is declining and remains at a risk of more losses below the $60,000 level.
- Bitcoin started a fresh decline after it failed near $62,000.
- The price is trading below $61,000 and the 100 hourly Simple moving average.
- There was a break below a bearish flag pattern with support near $60,950 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bearish momentum if there is a close below the $60,000 level.
Bitcoin Price Signals Breakdown

Bitcoin price found support near the $60,250 zone and started a recovery wave. BTC was able to recover above the 23.6% Fib retracement level of the downward move from the $63,217 swing high to the $60,250 low.

However, the bears were active near the $61,800 resistance zone. They defended the 50% Fib retracement level of the downward move from the $63,217 swing high to the $60,250 low. There was a fresh bearish reaction below the $61,200 support zone.

There was a break below a bearish flag pattern with support near $60,950 on the hourly chart of the BTC/USD pair. Bitcoin is now trading below $61,000 and the 100 hourly Simple moving average.

Immediate resistance is near the $61,200 level. The first major resistance could be $62,000 or the 100 hourly Simple moving average. The next key resistance could be $62,500. A clear move above the $62,500 resistance might send the price higher.

Source: BTCUSD on TradingView.com

The main resistance now sits at $63,500. If there is a close above the $63,500 resistance zone, the price could continue to move up. In the stated case, the price could rise toward $65,000.

More Downsides In BTC?

If Bitcoin fails to climb above the $61,200 resistance zone, it could continue to move down. Immediate support on the downside is near the $60,500 level.

The first major support is $60,000. If there is a close below $60,000, the price could start to drop toward $58,500. Any more losses might send the price toward the $56,650 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

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

Major Support Levels – $60,500, followed by $60,000.

Major Resistance Levels – $61,200, $62,200, and $62,500.
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Aayush Jindal

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May 12, 2024
US Mega Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC Drops To $60,000
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JP Morgan and Wells Fargo, two of the largest banks in the United States, have announced their investments into Spot Bitcoin ETFs, unveiling their exposure to BTC, the world’s largest cryptocurrency. This significant development comes amidst the persistent downturn in the crypto market, resulting in BTC’s price dipping slightly above $60,000.

US Financial Banks Expose Spot Bitcoin ETF Holdings

American financial services companies, Wells Fargo and JP Morgan, have revealed their exposure to BTC by disclosing their adoption of Spot Bitcoin ETFs in a recent filing. This decision to invest in BTC ETFs marks a notable change from the banks’ previous cautious approach to cryptocurrencies.

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Wells Fargo revealed in its new filing to the United States Securities and Exchange Commission (SEC) that it currently holds 2,245 shares of Grayscale Bitcoin Trust (GBTC), valued at $121,207, which it has since converted into an ETF. Additionally, the American bank holds 37 shares of the ProShares Bitcoin Strategy ETF (BITO), valued at $1,195.

On the other hand, JP Morgan, which holds about $2.9 trillion in Assets Under Management (AUM), has revealed its total Spot BTC ETF holdings in an SEC filing. The bank reported that it had purchased about $760,000 worth of shares of BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity’s Wise Origin Bitcoin Fund (FBTC), Grayscale Bitcoin Trust (GBTC), Bitwise Bitcoin ETF, and ProShares Bitcoin Strategy ETF (BITO).

Moreover, JP Morgan also owns about 25,021 shares valued at $47,000 in cryptocurrency ATM provider, Bitcoin Depot. The investment company also unveiled its exposure to Spot BTC ETFs just hours after Wells Fargo’s announcement.

Despite the regulatory uncertainty and the market’s continuous volatility, institutional interest in cryptocurrencies, particularly BTC, has been growing rapidly. Bloomberg senior analyst, Eric Balchunas also forecasted that more financial services companies would likely follow JP Morgan and Wells Fargo’s footsteps to unveil holdings in Spot Bitcoin ETFs as market makers or Authorized Participants (APs).

BTC Price sUFFERS More Declines

Despite the increasing interest from traditional financial institutions seeking exposure to BTC, the price of the cryptocurrency has shown a surprising lack of bullish momentum. Since its halving event on April 20, BTC has been trading sideways, witnessing continuous declines that have pushed its price down to around $57,000 previously.

The cryptocurrency, which recorded an all-time high above $73,000 in March, has seen a 14.20% drop over the past month. Additionally, Bitcoin gave up a large portion of its gains before the halving and is currently trading at $60,494, according to CoinMarketCap.

Blockchain analytics platform, Santiment, revealed that the ongoing lack of interest in BTC and the broader market sentiments could be a strong sign that the cryptocurrency is getting close to its bottom.
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BTC price falls below $61,000 | Source: BTCUSD on Tradingview.com
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Featured image from PlasBit, chart from Tradingview.com
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Scott Matherson

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May 11, 2024
FTX Creditors Say Payout Deal Is ‘an Insult’—and Plan to Revolt

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Some creditors of the bankrupt crypto exchange FTX are preparing to reject a plan that would see them recover 118 percent of the money they lost. The proposal is far less generous than it might seem, they claim.

Starting in January, the FTX creditors began to form a voting block, now made up of 1,600 claimants. The new plan is due to be put to a vote in June; the leaders of the block—Sunil Kavuri and Arush Sehgal—will urge members to vote against its approval. “The recovery percentages are drawn from a fake baseline. It’s a false narrative,” says Sehgal. “It’s an insult to creditors.”

FTX fell to pieces in November 2022 after running dry of funds with which to process customer withdrawals. Billions of dollars’ worth of customer funds was missing. A year later, FTX founder Sam Bankman-Fried was convicted of multiple counts of fraud and conspiracy in connection with the collapse of the exchange. In April, he was sentenced to 25 years in federal prison.

Filed on Tuesday, the FTX bankruptcy plan charts a path to a full recovery, plus interest, for practically all creditors—made possible, according to FTX, by the liquidation of billions of dollars’ worth of investments made by the exchange’s venture capital arm, FTX Ventures, and its sister company, Alameda Research.

Under the proposed plan, government bodies in the United States—including the Internal Revenue Service and the Commodities and Futures Trading Commission—have agreed to suspend high-value claims against FTX until creditors had been repaid (although the IRS will receive a $200 million upfront payment as part of the settlement).

“We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100 percent of bankruptcy claim amounts plus interest for nongovernmental creditors,” said John Ray III, the veteran bankruptcy professional in charge of the estate, in a statement. “I want to thank all the customers and creditors of FTX for their patience throughout this process.”

Although the plan affords creditors a greater recovery than FTX had previously indicated would be possible and assigns their claims priority over others, the creditors leading the voting block object to the plan on a variety of different grounds.

They take issue with the way claims have been valued under the plan. Many customers held crypto assets like bitcoin on the FTX platform, but through a process common to bankruptcy proceedings known as dollarization, their claims have instead been assigned a dollar value based on the price of those assets on the date of the bankruptcy petition. The issue is the subject of a lawsuit filed by the creditors within the bankruptcy proceeding.

When FTX fell, the crypto market nosedived, but has since rebounded. The value of bitcoin, for example, has risen from roughly $16,000 in November 2022 to more than $60,000 per coin. The market recovery is part of the reason FTX is in a position to repay customers in full, but it also means that customer claims could be less than a third as valuable under the plan—even accounting for the 18 percent interest—as they would be if mapped to the present value of crypto assets.

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Joel Khalili

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May 8, 2024
Ethereum Wild Fluctuations: Here’s What ETH Implied Volatility Tells Us

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The cryptocurrency market has recently exhibited distinct divergences in the behavior of its two leading assets, Bitcoin and Ethereum. While Bitcoin appears to be stepping into a phase of relative stability, Ethereum’s journey paints a contrasting picture of sustained uncertainty, particularly in its options market.

This divergence is highlighted by the sustained high levels of implied volatility associated with Ethereum options, signaling a cautious outlook among investors regarding its future price movements.

Ethereum Persisting Volatility: A Comparative Analysis

Implied volatility (IV) serves as a crucial indicator in the options market, providing insights into the expected price fluctuations of an asset over a specific period. It reflects the market’s temperature, gauging the intensity of potential price movements traders anticipate.

Recent analyses suggest that while Bitcoin’s implied volatility has settled down significantly post-halving, Ethereum’s has not followed suit. As Bitcoin’s IV dipped to a multi-month low, indicating a calming market, Ethereum’s IV remains stubbornly high.

Contrary to the calming waves in the Bitcoin market, Ethereum wrestles with heightened volatility. According to data from Bitfinex Alpha Report, Bitcoin’s volatility index sharply declined from 72% at the time of its latest halving event to about 55%.

Bitcoin (BTC) implied volatility. | Source: Bitfinex Alpha Report

On the other hand, Ethereum saw a more modest reduction in its volatility index, dropping from 76% to 65% in the same period. This persistent volatility in Ethereum’s market is primarily fueled by uncertainties surrounding significant upcoming regulatory decisions and broader market implications.

Ethereum (ETH) implied volatility. | Source: Bitfinex Alpha Report

The Ethereum market is particularly jittery in anticipation of the US Securities and Exchange Commission’s (SEC) impending decision on two spot Ethereum ETFs, slated for late May 2024.

This upcoming regulatory milestone is considered a critical event that could either catalyze a major market move or exacerbate the current volatility.

The Bitfinex Alpha report underscores that regulatory uncertainty is a primary driver behind Ethereum’s less significant drop in its Volatility Risk Premium (VRP) compared to Bitcoin’s.

ETH And BTC Show Signs of Recovery Amid Volatility

Ethereum and Bitcoin have shown signs of recovery over the past week in terms of trading performance. Bitcoin has seen a 4.1% increase, while Ethereum reported a more modest gain of 2.4%.

ETH price is moving sideways on the 4-hour chart. Source: ETH/USDT on TradingView.com

However, the last 24 hours have been less favorable for Ethereum, with a slight dip of 0.7%, underscoring the ongoing volatility and investor caution.

Moreover, Ethereum’s network dynamics also reflect a subdued activity with a marked decrease in ETH burn rate attributed to reduced transaction fees.

This technical aspect further complements a cautious Ethereum market narrative, poised on the brink of potentially significant shifts depending on external regulatory actions.

Despite all these, analysts like Ashcrypto suggest that the current volatility could set the stage for a strong rebound in the year’s third quarter. Drawing on historical patterns, Ethereum’s speculative forecast is potentially reaching the $4,000 mark, provided market conditions align favorably.

Featured image from Unsplash, Chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Samuel Edyme

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May 7, 2024
Bitcoin Price Signals Uptrend Continuation But Patience Is The Key
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Bitcoin price extended its increase above the $64,000 resistance. BTC is now holding gains above $62,800 and might aim for more upsides.
- Bitcoin traded to a new weekly high at $65,500 before there was a downside correction.
- The price is trading above $63,500 and the 100 hourly Simple moving average.
- There is a key bullish trend line forming with support at $63,350 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could aim for more upsides if it clears the $64,500 and $65,500 resistance levels.
Bitcoin Price Aims Higher

Bitcoin price remained well-bid above the $62,500 support zone and extended its increase. BTC was able to clear the $64,500 resistance. It even cleared $65,000 and tested $65,500.

A high was formed at $65,550 and the price is now correcting gains. There was a minor decline below the $64,000 level. The price tested the 23.6% Fib retracement level of the upward move from the $56,380 swing low to the $65,550 high.

However, the bulls are active near the $63,000 zone. There is also a key bullish trend line forming with support at $63,350 on the hourly chart of the BTC/USD pair.

Bitcoin is now trading above $63,000 and the 100 hourly Simple moving average. Immediate resistance is near the $64,500 level. The first major resistance could be $65,000. The next key resistance could be $65,500.

Source: BTCUSD on TradingView.com

A clear move above the $65,500 resistance might send the price higher. The next resistance now sits at $67,200. If there is a clear move above the $67,200 resistance zone, the price could continue to move up. In the stated case, the price could rise toward $68,800.

Another Drop In BTC?

If Bitcoin fails to rise above the $65,500 resistance zone, it could start another decline. Immediate support on the downside is near the $63,350 level and the trend line.

The first major support is $62,800. If there is a close below $62,800, the price could start to drop toward the 50% Fib retracement level of the upward move from the $56,380 swing low to the $65,550 high at $60,800. Any more losses might send the price toward the $60,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now near the 50 level.

Major Support Levels – $63,350, followed by $62,800.

Major Resistance Levels – $64,500, $65,000, and $65,500.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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Aayush Jindal

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May 6, 2024
Bitcoin Relative Strength Jumps To 40%: 10x Research Reveals Next Steps From Here
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Crypto research platform 10x Research recently noted that the Bitcoin Relative Strength has jumped to 40%. In line with this, they provided insights into what major moves the flagship crypto might make soon enough.

What Next For Bitcoin?

In their newsletter titled “Fake Dip?” 10x Research drew the crypto community’s attention to the fact that Bitcoin has historically experienced potential rallies whenever its relative strength index (RSI) drops to 40%. As such, there is the possibility that BTC could again rally following its recent decline.

The research platform warned that a “line in the sand” at the $62,000 mark could keep the flagship crypto from rallying. However, Bitcoin has already broken above that level, which could mean there is still a bullish sentiment around the crypto token.

Meanwhile, the research hinted that BTC would need a catalyst to enjoy a sustained rally. They highlighted four bullish events that helped Bitcoin enjoy a parabolic run soon after breaking a vital support level. These events included Treasury Secretary Janet Yellen’s bid for uncapped deposit insurance, BlackRock’s application for a Spot Bitcoin ETF, Franklin Templeton also filing for a Spot Bitcoin ETF, and when US Core PCE dropped below 3.0%.

This echoes the sentiment of Andrey Stoychev, Head of Prime Brokerage at Nexo, who previously mentioned that Bitcoin would need a catalyst to make a significant move to the upside. He predicts that Bitcoin will only continue to trade around the $67,000 range without this catalyst.

10x Research didn’t sound optimistic about BTC enjoying a sustained rally, as their trend model indicates that the flagship crypto is in a downtrend. Despite that, they are not ruling out the possibility of BTC experiencing a bullish reversal. The research firm also revealed that they would look to buy the dip if Bitcoin drops significantly or rallies from here.

BTC Still Destined To Hit New Highs

Crypto analyst Mikybull Crypto recently suggested that Bitcoin will still hit new highs. He stated that Bitcoin’s current price action is meant to create “more fear across the market and then bottom for upward continuation.” Crypto analyst Ali Martinez also recently suggested that the bull run was far from over, bearing in mind that Bitcoin consolidated around this period in the last two bull runs.

He claimed that BTC might be over 500 days away from hitting its market top for this cycle. As to how BTC could rise, Martinez mentioned that it could hit a new all-time high (ATH) of $92,190 if it breaches the resistance level of $69,150. It is also worth noting that crypto analyst PlanB stated that Bitcoin hitting $100,000 this year is “inevitable.”

At the time of writing, BTC is trading at around at around $63,500, up over 7% in the last 24 hours, according to data from CoinMarketCap.
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BTC price recovers above $63,000 | Source: BTCUSD on Tradingview.com
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Featured image from BBC, chart from Tradingview.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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Scott Matherson

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May 4, 2024
Bitcoin Price Surges Towards $61,000, Eyeing Potential Breakout To $67-$68k Range

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Bitcoin (BTC), the largest cryptocurrency in the market, has experienced a notable resurgence in its bullish momentum, with the Bitcoin price reclaiming the crucial $61,000 threshold.

This recovery follows a week-long downtrend that led to a 20% drop to $56,000 on Wednesday. As the bullish momentum returns, the possibility of further testing upper resistance levels and reclaiming previously lost price levels grows stronger.

Bitcoin Bulls Eye $68,000

According to market expert Justin Bennett, a recovery of the $61,000 resistance level would open up potential areas such as $67,000 to $68,000. However, at the present moment, this level continues to pose a significant resistance.

Analyzing the recent correction in the Bitcoin price, analyst Crypto Con suggests that the market correction was necessary for the long-term price trajectory.

The full retest of the 20-week Exponential Moving Average (EMA) support at $56,700 and the return to indicator support zones, such as the Directional Movement Index, indicate a healthy price consolidation.

In addition to the technical indicators, on-chain and market data analytics firm CryptoQuant’s founder and CEO, Ki Young Ju, highlights the current bullish sentiment.

BTC whales buying spree in the past 24 hours. Source: Ki Young Ji on X

According to their data, whales accumulated a significant amount of Bitcoin, totaling 47,000 BTC, within the past 24 hours. This increased accumulation by large investors further bolsters the positive outlook for Bitcoin’s price.

Bitcoin Price Poised For Bullish Surge

Crypto analyst Titan of Crypto has provided further bullish predictions for the Bitcoin price, suggesting that recent corrections have resulted in the grabbing of leverage longs liquidity. In addition, the Stochastic Relative Strength Index (RSI)on the 5-day chart is on the verge of crossing into bullish territory.

This occurrence has historically been followed by an upward price movement in Bitcoin, leading to higher highs. Such a pattern has the potential to fuel renewed investor confidence and attract further buying pressure.

Another positive signal highlighted by Titan of Crypto is the recent buy signal generated by the Supertrend indicator, as seen in the chart below. This technical tool helps identify trends in an asset’s price movement.

BTC’s supertrend buy signal. Source: Titan of Crypto on X

The buy signal, which occurred just three months ago, implies that Bitcoin may still have significant room for growth before reaching its cycle top. According to the analyst, historical data suggests that the average duration from the buy signal to the cycle top is approximately 19 months, indicating the potential for a sustained upward trend.

The daily chart shows BTC’s price recovery over the past 24 hours. Source: BTCUSD on TradingView.com

Currently trading at $61,600, Bitcoin has seen a significant increase of 4.7% in the last 24 hours alone. It remains to be seen if BTC will successfully break above resistance levels, while also challenging the ability of previously retested support levels to withstand potential future downtrends.

Featured image from Shutterstock, chart from TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Ronaldo Marquez

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May 3, 2024
Crypto Twitter Skeptical As MicroStrategy Proposes Bitcoin-Based Identity Solution

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MicroStrategy has proposed a new Bitcoin-based strategy for combatting online spam – though Bitcoiners are skeptical as to whether it’s a good idea.

During the annual MicroStrategy World conference on Wednesday, the company’s executive chairman Michael Saylor unveiled “MicroStrategy Orange” – an open-source decentralized identity solution built on Bitcoin.

What is MicroStrategy Orange?

MicroStrategy described their technology as an “enterprise-grade platform for implementing Decentralized Digital Identifiers (DIDs)” across any organization.

One of the platform’s core services will be ”Orange for Outlook,” which provides an orange check for emails verifying that they’re from an authentic person or entity, rather than spam. It would be a bit like Twitter’s yellow check, but for email – and also fast, virtually free, permanent, and non-threatening to user privacy.

“Our vision is to provide an internet native, decentralized digital identity backed by Bitcoin,” said Saylor. “It is fault tolerant, it is censorship resistant, it does use the most advanced cryptography.”

Unlike prior attempts at a decentralized identity that had severe practical constraints, MicroStrategy’s platform will allow enterprises to deploy DIDs to tens of thousands of team members within a matter of hours.

Those digital identities would be anchored into the Bitcoin blockchain using public-private key cryptography.

Specifically, users could sign the headers of their emails using private keys generated through MicroStrategy Orange, from which public keys are paired to a DID permanently inscribed to the Bitcoin blockchain. From there, private key signed emails can be verified for their legitimacy on-chain by referencing DID’s back to the user’s corresponding public key.

According to Saylor, these identifiers are highly efficient in terms of on-chain storage, including the ability to store tens of thousands of DIDs within a single Bitcoin transaction. It requires no use of a Bitcoin sidechain, though it could be compatible with Bitcoin layer 2 networks.

Criticisms Of Saylor’s Offering

MicroStrategy works by using a modified approach to Ordinals inscriptions to store DID data on Bitcoin, leveraging the ability to store arbitrary data in the witness of a Bitcoin transaction. This has since allowed NFTs and tokens to begin trading on Bitcoin, which sometimes drive network fees to extremely high levels.

“DIDs go nowhere, ever,” said Tony Giorgio, co-founder of Mutiny Wallet, on Twitter. “Saylor is using Bitcoin as his own personal and corporate data store.”

Daniel Buchner, a decentralized identity expert at Block, also said that Saylor’s solution “needlessly bloats Bitcoin,” saying that while the idea is good, it “doesn’t need to be done the way he’s chosen to.”

Ordinals fans were big fans of the announcement, believing it provided legitimacy to their protocol that, until now, has largely been used for minting speculative NFTs and meme tokens.

“Makes sense. Don’t hate on Ordinals. Lots of applications for Bitcoin as a data layer,” tweeted Fred Krueger in response to the announcement.

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Andrew Throuvalas

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May 2, 2024
Bitcoin Slump Pushes New Whales Underwater: A Rare Opportunity To Buy?

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As Bitcoin slumps, on-chain data by Ki Young Ju, the founder of the blockchain analytics platform CryptoQuant, paints a stark picture: all new whales, including holders of spot exchange-traded funds (ETFs), are now underwater.

New Whales And Spot ETF Investors Are In Red

Taking to X, Ju said that more losses would be incoming, predicting that HODLers will find “max pain” at around $51,000. The dip is less than $10,000 from spot rates, suggesting that although there are cracks, the correction might not be deep.

This overview is welcomed, considering the recent sell-off. Even so, predicting price bottoms in a fast-moving market influenced by multiple forces is tough.

New BTC whales are underwater | Source: Ki Young Ju on X

As price action stands, Ju says believers may take the opportunity to double down on the coin. The founder adds that the current price discount presents an opportunity for savvy investors to outperform traditional finance whales, including institutions with BTC exposure via spot ETFs in the United States.

Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView

Bitcoin is under immense liquidation pressure at the time of this writing. Though bulls soaked up the sell-off earlier today, the coin remains within a bearish breakout. Prices are trading below the support zone of between $60,000 and $61,000 and below April 2024.

Inflow To Spot Bitcoin ETFs Decline As Sentiment Deteriorate

This formation suggests that though bulls are optimistic, the path of least resistance remains southwards for now. BTC dropped after posting impressive returns from October 2023 to March 2024, when prices peaked. Some analysts think the current cool-off is inevitable following sharp gains in the last six months.

The fact that whales are underwater was unexpected, considering the state of affairs in the last week of April. Then, the inflow from new whales nearly doubled the cumulative holdings of older whales. Analysts said this influx of fresh capital pointed to growing institutional interest.

However, looking at the current price action, new whales are now in the red territory, and their excitement seems to wane.

According to Lookonchain data, inflow into the eight-spot Bitcoin ETFs, including BlackRock, has stalled. On May 1, all issuers, including Grayscale via GBTC, decreased by 1,950 BTC. Of note is that BlackRock’s IBIT has not seen inflows for five straight days.

Spot Bitcoin ETF tracker | Source: Lookonchain via X

Still, confidence abounds. Inflows into spot Bitcoin ETFs are highly influenced by sentiment, which rests on how prices perform. If BTC shakes off the current weakness and tears higher in the expected post-Halving rally, spot ETF issuers will begin receiving new inflows.

Feature image from DALLE, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Dalmas Ngetich

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May 2, 2024
Crypto Investor Sentiment Turns Neutral as BTC Price Plummets Below $57K

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The Bitcoin Fear and Greed Index shows crypto investor sentiment has turned neutral following BTC’s slump below $57,000.

According to data from Alternative.me, the fear and greed index sits at 54 for the first time in three months, signaling that crypto investors are neither fearful nor greedy amid the current market conditions.

Investors Harbor Neutral Sentiment

The last time investors harbored a neutral sentiment was on January 28, 2024, when the price of BTC hovered around $42,000. At the time, BTC was rallying, and the crypto market buzzed with excitement over the launch of the numerous spot Bitcoin exchange-traded funds, which U.S. authorities had greenlit over two weeks prior.

However, the current conditions of this market sentiment are different. Bitcoin has tumbled from an all-time high of $73,700 recorded in mid-March. After experiencing heightened volatility in the past weeks, the cryptocurrency took a turn for the worse yesterday, which continued today.

The fear and greed index determines the market sentiment by analyzing several factors, including bitcoin’s dominance, social media, market momentum, trends, and volatility. On a scale of 0 to 100, 0 indicates extreme fear, 50 signals neutrality, and 100 means extreme greed.

In the past weeks, investor sentiment has hovered around greed, occasionally spiking to extreme greed. Alternative.me revealed the sentiment was at 67 yesterday and 72 last week, indicating that investors have been greedy. Market participants were even more greedy last month, as seen in the index spiking to 79, a number that signifies extreme greed.

It remains to be seen which direction the crypto market will take in the short term: towards fear or greed. While another correction is possible, analysts expect prices to rise long-term, as they have always seen after the Bitcoin halvings.

Will BTC Plunge Further?

Meanwhile, bitcoin’s latest fall saw it drop below crucial support levels, with the crypto market losing more than $200 billion. Within roughly 36 hours, BTC has plummeted over 11% from $64,100 to $56,700, dragging altcoins and the rest of the crypto market. At the time of writing, BTC was still in the red but had recovered slightly and was trading at $57,200.

Analysts think BTC could plunge further before resuming its rally because there have been deeper corrections in previous bull market cycles.

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Mandy Williams

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May 1, 2024
Binance Founder Changpeng Zhao Sentenced to 4 Months in Prison

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Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange, has been sentenced to four months in prison.

Judge Richard Jones, who presided over the sentencing hearing in the Western District of Washington on Tuesday, handed down a lighter sentence than the three years petitioned by the prosecution.

In November, Zhao—better known as CZ—pleaded guilty to willfully violating anti-money-laundering rules that enabled hundreds of millions of dollars in transactions involving US-sanctioned entities, including Iran and Cuba, to pass through the Binance platform. The plea deal required Zhao to step down as Binance chief executive and accept a $150 million fine, and for the company to pay a $4.3 billion penalty.

“Zhao’s willful violation of US law was no accident or oversight,” the US Department of Justice wrote in a court filing ahead of the sentencing. “He made a business decision that violating US law was the best way to attract users, build his company, and line his pockets.”

In the filing, prosecutors requested that Zhao receive a 36-month prison sentence, pointing to the need to “deter others who are tempted to build fortunes and business empires by breaking US law.” Zhao’s legal counsel asked for probation, on the grounds that no defendant in a comparable case “has ever been sentenced to incarceration.”

In coming to an appropriate sentence for Zhao, the judge was required to “look past the guidelines” and factor in context beyond the facts of the underlying crime, says Daniel Richman, a professor of law at Columbia University and former federal prosecutor. That includes the character of the defendant, the likelihood of recidivism, past infractions, and other factors.

In a letter to the judge in advance of the hearing, Zhao apologized for his conduct and accepted responsibility for the failure to establish an effective compliance program at Binance. “Words cannot explain how deeply I regret my choices that result in me being before the Court,” he wrote. “Please accept my assurance that this will be my only encounter with the criminal justice system.”

Zhao’s willingness to “plead guilty and take responsibility” will have counted in his favor, says Richman, but evidence of his flagrant disregard for the law will have weighed heavily on the judge. “When you have somebody who flouted the law in such a sustained way, one could expect that respect for the law will loom large in the sentence the judge imposes,” says Richman.

Zhao is the second crypto figurehead to face criminal sentencing in the US in as many months. On March 28, Sam Bankman-Fried, or SBF, founder of bankrupt crypto exchange FTX, was sentenced to 25 years in prison. Before their respective falls from grace, the pair vied for control of the exchange market and reportedly sparred frequently. But the similarities between the cases end there.

“It’s an easy comparison, but an imperfect one,” says Daniel Silva, an attorney at law firm Buchalter and former US prosecutor. “CZ pleaded guilty to not following the law as required of a financial institution executive. SBF was different: He was improperly using customer funds, gained through fraudulent statements and material omissions of fact.”

In their own presentence filing, Zhao’s counsel made a thinly-veiled reference to the distinction. “Mr. Zhao has been convicted only of an AML [anti-money-laundering] compliance failure,” they wrote. “He has not defrauded any investors, there has been no misappropriation of customer funds.” Their client, they appeared to be saying, is no SBF.

Zhao will not be required to forfeit the wealth he has accrued as founder of Binance as part of his sentence. Although he departed Binance in November, Zhao is reported to retain an estimated 86 percent stake in the exchange and continues to be worth tens of billions of dollars.

The DOJ, which until last year had secured few landmark crypto convictions, will nonetheless celebrate the conviction. “Whether people criticize the sentence as too light, it sends a healthy message,” says Silva. The aim is to “deter the next crypto or financial institution CEO from thumbing their nose at anti-money-laundering regulations.”

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Joel Khalili

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April 30, 2024
The Bitcoin Bear Market May Have Already Started, Signal Shows

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Is the Bitcoin bear market already starting to rear its head? One new piece of market data suggests this could be the case.

As of Monday, Bitcoin is entering what could be its fifth negative weekly close in a row. Historically, Bitcoin has never closed five consecutive weeks in the red outside of a bear market environment.

A Slow But Steady Pullback

Twitter user MisterCh0c took notice of the pattern on Monday, and was quick to receive backlash from more bullish followers.

Some noted that the severity of the drawdown, which has persisted throughout April, is mild compared to previous bull markets. Closing at a weekly high of roughly $71,400 on March 31, the coin closed this Sunday at roughly $63,000 – about a 12% drop.

Lead Glassnode analyst James Check backed that observation on Friday, noting that Bitcoin has only declined by 20% at most from its high of $73,000 this cycle. By comparison, the 2017 bull market experienced multiple drawdowns of 20% to 30%.in size.

Furthermore, brett_eth noted that 4 consecutive red weekly candle events have occurred in bull markets before. In fact, two of those instances occurred right after previous Bitcoin halvings, as is what transpired earlier this month.

What About The ETFs?

Even if substantial pullbacks are normal for a bull market, many are still surprised that Bitcoin sell pressure has spread to the newly launched Bitcoin spot ETFs.

The funds have soaked up over $12 billion of net inflows since January, yet those flows have stagnated over the past month, with outflows from the Grayscale Bitcoin Trust (GBTC) often surpassing inflows to all other Bitcoin ETFs combined.

Macro investment analyst Jim Bianco believes the evidence points to “degen retail” being the dominant buyer of Bitcoin ETFs so far. That’s a bearish sign, he argues, since it means such investors will “bail at the first signs of trouble” – particularly when price moves below their cost basis of $58,000.

As a counterpoint, Bloomberg ETF analyst Eric Balchunas noted that most investors haven’t reported their ETF holdings in 13F filings yet. It can also take time for advisors to get involved: BITO, the Bitcoin futures ETF, has investment holdings 40% owned by advisors after 30 months on the market.

“II would advise against dying on this hill as you are basically going against BlackRock, Fidelity, Invesco etc and all their wholesaling firepower, relationships and advisors’ love of their ETFs,” Balchunas added in a tweet on Monday. “The track record speaks for self.”

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Andrew Throuvalas

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April 29, 2024
Bitcoin Could Fall to $50K in ‘Correction Mode,’ Says Analyst

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Bitcoin has fallen back to more than 15% down from its mid-March peak, dropping to a ten-day low of under $62,000 on Monday morning.

On April 28, an analyst feed ‘Stockmoney Lizards’ noted that the halving was over, but bitcoin continues to print red candles.

They said that we are not at the end of the bull market but added a gloomy prediction that what we see is a correction that could send prices back to the $50Ks before continuing:

“Call it triple top, call it Wyckoff distribution. Bitcoin is in correction mode,”

#Bitcoin

Halving is done and yet, Bitcoin continues printing red candles. Is this it for this cycle?

A lot of folks are insecure, especially in light of the geopolitical and macroeconomic situation

Let’s take a look at some charts and indicators.

A 🧵 pic.twitter.com/bQ2nDITrAq

— Stockmoney Lizards (@StockmoneyL) April 27, 2024

More Pain Before Gain

In essence, a correction is necessary after half a year of solid gains. War, recession fears, inflation, and reduced ETF buying are all adding to market sentiment.

The analysts noted several layers of support at $60K, $56K, and $52K, each one becoming more likely if the one above it is broken.

The short-term outlook for May, which is historically a neutral month, is a potential uptrend within the correction range. “Even a breakout seems possible if market conditions remain stable,” they said before adding that “‘Bad news, of course, would push us towards the $50Ks.”

This week the Federal Reserve will make its interest rate decision and rates are likely to remain where they are given the higher than expected inflation outlook. This could accelerate the market correction and drop BTC below its immediate support level of $60K.

Trader ‘CrypNuevo’ advised caution for the coming week, saying that they’re not going into it with any open positions. “Weakening economy with rising inflation? The worst outcome for the FED,” they added.

On The Positive Side

While the overall short-term sentiment is gloomy, things are not all that bad according to Glassnode analyst “Checkmatey.”

He observed that bitcoin retail holders, “who are apparently degenerates who will sell on the first sign of a correction,” appear to be stacking sats once again.

“Shrimp” accounts with less than 1 BTC are accumulating 12,200 coins per month, according to Glassnode data.

The #Bitcoin retail holders, who are apparently degenerates who will sell on the first sign of a correction…

…appear to be stacking sats once again.

Shrimp (<1 $BTC) are accumulating 12.2k $BTC per month as it stands. https://t.co/kOzSPu5Yx1 pic.twitter.com/j4OU6iMiKD

— _Checkmate 🟠🔑⚡☢️🛢️ (@_Checkmatey_) April 28, 2024

Corrections are healthy parts of market cycles and will always produce opportunities to buy the dip. How deep and how long this current correction will last remains to be seen, however.

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Martin Young

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April 29, 2024
Top cryptocurrencies to watch this week: BTC, ETH, PEPE

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The top cryptocurrencies to keep an eye on this week include Bitcoin (BTC), Ethereum (ETH), and Pepe (PEPE).

Bitcoin whales taking profits

Bitcoin has seen a decrease in whale activity since March 14. However, a surge in whale transactions could potentially boost BTC prices.

Notably, crypto analyst Lookonchain recently highlighted a significant movement of 1,200 Bitcoin, worth an eye-watering $77.67 million, by a whale into the Kraken exchange.

A whale deposited 1,200 $BTC($77.67M) into #Kraken 43 minutes ago.

The whale accumulated 24,755 $BTC($1.68B) at an average price of $68,051 from Mar 1 to Apr 15.

Address:
bc1qcpflj68s3ahy4xajez4d8v3vk28pvf7qte2jmlftvxzfke2u6mqsge3gvh pic.twitter.com/fQP33Se1t8

— Lookonchain (@lookonchain) April 26, 2024

According to the analyst, the same whale had accumulated 24,755 BTC valued at $1.68 billion between March 1 and April 15, with an average purchase price of $68,051 per Bitcoin.

Furthermore, data from CryptoQuant shows that exchange inflows from Bitcoin whales have reached their highest level in five months, indicating a possible profit-taking trend among major holders, which analysts feel could lead to a significant price correction in the coming week.

Large-scale transactions can exert substantial influence on the crypto market, with Bitcoin whales holding greater sway given the coin’s outsized influence on the broader crypto market, where it has more than 50% dominance.

On the market front, Bitcoin’s price recovery attempts have slowed down, with the asset gaining 1% in the last 24 hours to trade at $63,520 after days of being in the red.

Ethereum stays green

Altcoins are also facing downward pressure, contributing to a $150 billion decline in the total crypto market cap over the weekend.

Ethereum, after trading close to its support trendline within a symmetric triangle pattern, seems to be sparking bullish sentiment in the market.

While the ETH token’s price action has corrected by 32% from its yearly high of $4,094, it maintains a positive year-to-date outlook of more than 75%. Additionally, it was pretty much the only high-cap cryptocurrency to stay in the green over the weekend.

ETH 7-day price chart | Source: CoinGecko

As of now, the coin has continued its good run and is 5.5% higher than it was 24 hours ago. ETH is currently at the highest point it has been in the last 7 days, with analysts on X, including Satoshi Flipper, hinting at an incoming bull run given the coin’s underlying indicators.

$ETH/usdt DAILY

You only see bullish charts this perfect in a bull market. Now study what happened to price the last time RSI was in the mid 30’s 🤌🚀

connecting the dots now? pic.twitter.com/IFxzPKaSIV

— Satoshi Flipper (@SatoshiFlipper) April 27, 2024

PEPE closes off week in style

Another token that could be worth a closer look in the new week is Pepe. The third-largest meme coin by market cap has had a relatively strong performance since its launch in 2023 and is currently priced at $0.000007459. This is a 7.1% uptick in 24 hours and a nearly 28% increase this week, making it among the top gainers in the last 7 days. However, the current price is still a 4.8% decrease over the previous month.

PEPE 24-hr price chart | Source: CoinGecko

With a $3.1 billion market cap and $648 million 24-hour trading volume, Pepe’s market strength positions it among the top cryptocurrencies to watch. Despite experiencing retracements, the meme coin has shown resilience and could continue its upward trend in the coming weeks, supported by its strong trading volume and market interest.

In summary, Bitcoin, Ethereum, and Pepe are key cryptocurrencies to monitor this week as they navigate through market fluctuations and potential price movements driven by whale activity and market sentiment.

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Julius Mutunkei

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April 28, 2024
Crypto market cap hovers $2.45t as Bitcoin, Solana, Ethereum, Dogecoin face downward pressure

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Digital assets continue to struggle as the crypto market cap dips 1.28%. It currently hovers at around $2.45 trillion — a 94.5% change one year ago.

In what could be a knock-on effect from the traditional market, which saw the Japanese yen tumble to a 34-year low against the U.S. dollar, leading cryptocurrencies such as Bitcoin (BTC), Solana (SOL), and Dogecoin (DOGE) all saw their prices drop in the last 24 hours.

Bitcoin

Per data from CoinMarketCap, Bitcoin is currently priced at $63,284, which is a 2.32% drop from 24 hours ago.

In that period, the number one crypto recorded a trading volume of $22.89 billion, which was the second-highest amount in the last 24 hours.

BTC 24-hr price chart | Source: CoinMarketCap

While Bitcoin’s price is still more than 118% higher than it was at the same point a year ago, it is in the red over several other time frames.

For instance, the current price signifies a 10% dip over 30 days, a 6.7% drop across a fortnight, and a more modest 1.3% loss in the last seven days.

Solana

On its part, Solana — fifth on the list of the biggest cryptocurrencies by market cap — saw its price go down by more than 4% in 24 hours.

Currently, the coin is changing hands at $137.21 and has a 24-hour trading volume just north of $2.4 billion.

SOL 24-hr price chart | Source: CoinMarketCap

SOL has not fared any better over different time frames either.

The current price represents a 25.6% drop from where it was 30 days ago, per data from CoinGecko.

It also marks a nearly 8% dip across 14 days, as well as a 2.6% loss over 7 days.

Ethereum

Ethereum seems to have bucked the general negative trend, albeit rather modestly. At the time of writing, it was trading at about $3,137, which is a 0.23% uptick over the last day.

The slight bump was accompanied by a 24-hour trading volume of $10.26 billion, making ETH the third most traded cryptocurrency after Tether and Bitcoin.

ETH 24-hr price chart | Source: CoinMarketCap

Ethereum’s gains over seven days are more significant, with the current price being a 4% improvement on where it was a week ago.

However, the bearish sentiment that seems to have washed over the crypto market in the last month has not spared ETH either. It has lost more than 12% of its value in that time.

Dogecoin

Dogecoin — the largest meme token — also shed some of its value in the last 24 hours.

The dog-themed coin shed nearly 3% of its price in that time. Trading at about $0.1451, Dogecoin’s value is also more than 30% lower than its level from a month ago.

DOGE 24-hr price chart | Source: CoinMarketCap

Its performance is reflected among other meme coins, including Pepe (PEPE), Dogwifhat (WIF), and Shiba Inu (SHIB), which are all currently in the red, with losses ranging between 2.82% and 7.87%.

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Julius Mutunkei

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April 27, 2024
Bitcoin Sell Calls Going Through The Roof: But Is It Really Time To Sell?

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The story has not been any much different for Bitcoin, with its price still stuck in a consolidation range in the past week. The sluggishness of the premier cryptocurrency – and the general market – has continued despite the completion of the halving event over a week ago.

The halving event, which saw mining rewards take a significant cut, was expected to usher in another round of bullishness for the Bitcoin price. On the contrary, investors appear to be getting frustrated with the slow activity of the market, with many calling for the dump of BTC.

Bitcoin Sell Calls At Increased Rate: Blockchain Firm

According to a recent report by on-chain analytics firm Santiment, investors are increasingly calling for the sale of Bitcoin across social media following its latest drop toward $63,000. The relevant metric here is the “social volume” indicator, which tracks the number of unique posts and messages on different social platforms that mention a specific topic.

Santiment aggregated data of “buy or bullish”, “sell or bearish,” or related mentions for the premier cryptocurrency over the past week. The on-chain analytics then highlighted a shift in the trend, with the bearish calls looking to drown out the bullish noise on social media.

According to Santiment, Bitcoin’s recent fall to $63,000 resulted in the lowest level of buy and bullish calls since April 21st (just before BTC recovered back above $67,000). As shown in the chart above, the social volume for terms related to “sell” shot up after the price decline.

Typically, the increased bearish mentions of Bitcoin suggest a rising level of FUD (fear, uncertainty, and doubt) amongst investors. However, when traders seemingly become frustrated and impatient, there is usually a higher probability of a market rebound.

Almost 90% Of Circulating BTC In Profit – Impact On Price

According to recent on-chain data, about 90% of Bitcoin in supply is in profit. On the surface, this basically implies that the most current holders of the premier cryptocurrency bought at a lower price compared to the current price.

However, this level of profitability can also be an overbought signal, especially after bullish periods like the one that occurred between October 2023 and March 2024. Ultimately, this suggests investors could see Bitcoin shed more of its price gains over the next coming weeks.

As of this writing, Bitcoin is valued at $63,077, reflecting a 2% price decline in the past 24 hours.

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Opeyemi Sule

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April 27, 2024
BitcoinOS Posts “Game-Changing” Whitepaper To Get Rollups On Bitcoin

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Blockchain developers have come one step closer to launching rollups on Bitcoin, enabling “unlimited smart contract functionality” and scaling once foreign to the OG crypto network.

On Friday, BitcoinOS published the whitepaper for “BitSNARK and Grail”, a system for bridging Bitcoin to layer 2 rollups and blockchains in a trust-minimized way.

Rollups On Bitcoin: Is It Possible?

The new rollup system is an outgrowth of BitVM – the Bitcoin-based computing paradigm discovered by Robin Linus last year.

Among BitVM’s most notable applications was its ability to verify “Succinct Non-Interactive Arguments of Knowledge” (SNARKs) on Bitcoin. By extension, this opened the possibility for Bitcoin Rollup Bridges, and scaling technologies similar to Optimism or Arbitrum on Ethereum.

BitSNARK builds on BitVM using a software library optimized for this specific purpose, enabling bridges that are cheap, efficient, and secure enough for practical use.

“This is a solution to Bitcoin’s trilemma of scale, computational expressivity, and decentralization,” wrote Edan Yago, one of the paper’s authors, to Twitter on Thursday. “No softfork, upgrades, or new op-codes are required.”

The New Bitcoin Bridge Model

Until now, existing Bitcoin layer 2 systems have been plagued by significant tradeoffs compared to scaling systems built on more expressive blockchains like Ethereum. For example, Bitcoin’s lightning network can grow impractical for use by individuals due to the cost and complexity of channel management.

Furthermore, Bitcoin sidechains like Liquid and Rootstock require a federation of third parties to manage the “bridge” between L1 and L2, representing a single point of failure for both chains.

That’s where Grail comes in: the new system uses BitSNARK to generate SNARK proofs for Bitcoin and rollup transactions and allows secure asset transfers between L1 and L2 rollups.

“While many systems rely on a majority vote in a threshold signature scheme for security, BitSNARK promises to provide stronger security by allowing a single honest agent to prevent abuse by any or all of the other agents,” the whitepaper stated.

The authors said the Grail bridge requires at least two operators to function, but that theoretically any number could be supported. Creators can also form systems for old bridge operators to leave the group, or new operators to join it.

Yago said that the BitcoinOS team is currently aiming to design a bridge with over 100 operators.

“The trust assumption works unless all parties collude,” he added. “That’s what makes it so strong.”

The whitepaper arrives shortly after the launch of Runes – a Bitcoin token protocol that’s driven up activity and fees substantially on Bitcoin’s base layer over the past week.

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Andrew Throuvalas

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April 25, 2024
Bitcoin Forms Death Cross & TD-9 Sell Signal: Brace For Impact?
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An analyst has explained how Bitcoin is forming both a death cross and TD sell signal, which may lead to potential dips in these targets.

Bitcoin Looking In Trouble As 12-Hour Chart Forms Two Bearish Signals

In a new post on X, analyst Ali discussed two signals that have recently formed in Bitcoin’s 12-hour chart. The first of these is a “death cross,” which occurs when an asset’s short-term simple moving average (SMA) dips below its long-term SMA.

Regarding the death cross, the 50-day and 100-day SMAs make up for the short-term and long-term trend lines. Historically, such formations have been considered bearish signals, with the price potentially suffering once the pattern is confirmed.

The other signal that has appeared for the cryptocurrency involves the Tom Demark (TD) Sequential. This indicator is popularly used for finding locations of probable tops and bottoms in any asset’s price.

The TD Sequential has two phases: the “setup” and “countdown.” The first phase, the setup, is said to be complete once the asset has gone through nine candles of the same polarity. After these nine candles, the price may have reached a likely reversal point.

Naturally, if the candles in the setup’s formation were red, then the signal would be a buy one, while if the prevailing trend were bullish, the reversal would be towards the downside.

Once the setup is complete, the countdown phase begins. This phase works much like the setup, except that candles are counted up to thirteen instead of nine. After the countdown’s completion, the commodity may be assumed to have reached another potential top/bottom.

Now, here is the chart shared by Ali that highlights how signals about both of these technical analysis patterns have been witnessed in the 12-hour price of Bitcoin recently:
```
The two signals that the 12-hour BTC price has formed in recent days | Source: @ali_charts on X
```
As is visible in the graph, the 12-hour price of Bitcoin first saw a death cross form with the 50-day SMA moving under the 100-day SMA. Then, it observed the completion of a TD Sequential setup, with the indicator suggesting a reversal to the downward direction.

Since this double bearish pattern has appeared, BTC has been heading down, suggesting that these signals may already be in effect. “If BTC falls below $63,300, brace for possible dives to $61,000 or even $59,000,” says the analyst.

From the current price of the cryptocurrency, a potential drawdown to the first of these targets would mean a decline of 4.6%, while one to the latter level would suggest a drop of nearly 8%.

BTC Price

So far, Bitcoin has managed to prevent falls under the $63,300 target listed by the analyst, as it currently floats around $64,000.
```
Looks like the price of the coin has lost its earlier recovery during the past 24 hours | Source: BTCUSD on TradingView
```
Featured image from Shutterstock, charts from TradingView.com

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
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Keshav Verma

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April 25, 2024