Connect with us

Bitcoin

Bitcoin Could Plunge to Sub-$10,000 Before Rocketing Higher; Here’s Why

Published

on



  • Bitcoin is flashing some signs of short-term strength as it rebounds from its daily lows
  • This rebound, although strong, has not been enough to send it past any crucial support levels as of yet
  • It also led BTC to see a strong rejection at just below $11,600, which is a sign of weakness behind this movement
  • This rally came about as macro assets responded bullishly to the Fed Chairman’s speech regarding the Fed adopting a 2% average inflation target

Bitcoin and the entire cryptocurrency market responded positively to the Fed Chairman’s speech earlier today regarding how the central bank wants to respond to inflation of the US Dollar.

During the speech, he also noted that the central bank is setting its sights on a 2% annual inflation target.

This speech drove macro asset prices higher, with Bitcoin, gold, and other so-called “hard assets” all gaining.

This momentum has not been enough, however, to send the benchmark cryptocurrency above a few key levels that have been suppressing its strength.

As such, it is a strong possibility that BTC will see further near-term weakness before it is able to push any higher.

Bitcoin Faces Rejection Following Fleeting Pump to $11,600

Earlier this morning, Bitcoin’s price was able to pump as high as $11,600 following the speech, with this rally marking a break above both a descending trendline and a key horizontal resistance level.

Bulls were not able to sustain this momentum, however, and the crypto subsequently declined down to lows of $11,350.

This is around where it is currently trading, with bulls and bears both vying for control over its near-term trend.

Until it can firmly break above $11,500 and shatter the descending trendline that has been guiding it lower over the past few days and weeks, there’s a strong possibility that further downside is imminent.

Here’s How Low BTC May Plunge If Bulls are Unable to Take the Reigns

While speaking about the cryptocurrency’s near-term outlook, one analyst explained that he believes Bitcoin could decline as low as $10,000 before it can find any strong support.

To justify this bearish outlook, he points towards a strong descending trendline that has been formed in the time following BTC’s rejection at $12,400. This can be seen in the below chart:

Image Courtesy of Teddy. Chart via TradingView.

Because $10,000 is a historically and psychologically important support level, a dip to the liquidity that exists here may help send it surging higher.

Featured image from Unsplash.
Charts from TradingView.





Source link

Bitcoin

Athena confirms plans to bring 1500 Bitcoin ATMs to El Salvador

Published

on

By



U.S. company Athena intends to supply El Salvador’s new crypto-based economy with 1500 Bitcoin ATMs, a company representative has confirmed.

The rollout will start small, trialing a few dozen machines to establish a business model. The Chicago headquartered firm plans to invest more than $1 million to install cryptocurrency ATMs, targeting regions where residents receive remittances from abroad.

Along with installing the new machines it will also hire staff and open an office to carry out operations in El Salvador.

Athena currently operates just two ATMs of this type in El Salvador, one at El Zonte beach as part of an experiment called “Bitcoin Beach” aimed at making the town one of the world’s first crypto economies, and the other in El Tunco, according to CNN.

Athena’s director for Latin America, Matias Goldenhörn, told Reuters that Salvadorian President Nayib Bukele had “presented us with a tough challenge of 1,500 ATMs, we will go for that, but in phases. We are a private company and we want to ensure that our development in the country is sustainable.”

On June 17, Athena posted about its plans to expand in the country in the wake of lawmakers passing a bill to make Bitcoin legal tender. The company tagged President Bukele asking if a thousand machines would be enough. He responded he had set his target on a larger figure.

Goldenhörn stated that the business model is likely to be different from that in the U.S., which currently has a total of 19,325 BTC ATMs according to Coinatmradar.

“Initially we are going to bring dozens of machines, (we’ll) test what the business model is like in El Salvador, which will probably be different than in the United States,”

Related: Athena Bitcoin installs the first Bitcoin ATM that operates with dollars in Argentina

El Salvador’s Bitcoin adoption plan has already experienced pushback from the World Bank, which refused to assist the country in its transition, citing “the environmental and transparency shortcomings” associated with the digital asset.

On June 22, Cointelegraph reported that an opposing political party filed a lawsuit alleging the new Bitcoin law could be unconstitutional and harmful to the country.





Source link

Continue Reading

Bitcoin

PlanB feeling ‘uneasy’ as 41% of his followers tip $100K BTC won’t happen this year

Published

on

By



PlanB, the brainchild behind the Bitcoin stock-to-flow model, has revealed he is feeling “uneasy” about his renowned price predictions due to the recent downtrend in markets.

The stock-to-flow (S2F) model, which has predicted BTC prices with some degree of accuracy over the past two years, has been called into question by some of his followers in a recent Twitter poll.

The anonymous analyst surveyed his followers on June 21 asking them what price they thought BTC would reach by the end of the year. He used the results to compare them to a similar survey in March when market sentiment was overwhelmingly bullish.

Of the 124,595 respondents to the latest poll, 41% thought that BTC prices would remain below $100K by the end of the year, which would invalidate the S2F model. That’s two and a half times the 16% in the previous poll who thought the lazer eyes crowd would be disappointed this year.

PlanB who originally published the price predictor in March 2019, pinned a message admitting that even he feels a little “uneasy” when BTC prices deviate from the model. However, the analyst noted that the model had managed to hold previously in March 2019, again in March 2020 when the pandemic caused a global market meltdown, and once more in September 2020.

Preston Pysh, the founder of The Investors Podcast Network, commented that it was difficult for a model to account for a blizzard of bad news that has accelerated the market downturn.

“You mean your model doesn’t account for 40%+ of mining rigs getting banned & forced to turn-off & relocate to various parts of the world…and with no forward notice to companies/entitles for the extraordinary expense to their heavily denominated BTC treasuries/retained earnings.”

The model is a calculation of a ratio based on the existing supply of Bitcoin against how much is entering circulation. The scarcer the asset becomes due to the four-year halving cycles the higher the price. PlanB’s model predicts an average price of $288K over the next three years.

Related: $288K BTC price ‘still in play’ says PlanB as Bloomberg champions Bitcoin halving

At the time of writing, Bitcoin had gained 2.9% over the past 24 hours to trade at $34,450 according to CoinGecko. The asset is currently 45% down from its all-time high of $64,800 on April 14.





Source link

Continue Reading

Bitcoin

Bitcoin in uptrend but BTC may never beat gold’s $10T market cap — ex-NYSE head

Published

on

By



Bitcoin (BTC) is on a “lower left to upper right trend” and its volatility should not scare investors, the former head of the New York Stock Exchange says.

In an interview with CNBC on June 23, Thomas Farley revealed long-term convictions about Bitcoin and dismissed concerns over BTC price losses.

Bitcoin: Going up, but not “up only”

Coming a day after CNBC pundit Jim Cramer admitted that he sold his Bitcoin stash, suggesting that BTC/USD was going as low as $10,000, Farley provided some much-needed mainstream bullishness.

“With respect to the recent price moves, I’m kind of sanguine about them — Bitcoin’s a very volatile asset class, in part because it’s a new asset class,” he told the network.

“I have no doubt it’ll go up, it’ll go down over the long term — I still think it’s a lower left to upper right trend and I think we’re going to see that play out over five years.”

With mining upheaval coming from China still on everyone’s lips, popular mainstream criticism of Bitcoin’s energy usage was also swiftly cast aside as a temporary issue.

“I think this kerfuffle is an interesting conversation, but by and large I think it’ll be resolved because I think the blockchain at its core adds to its efficiency and in fact will add to energy efficiency over time,” he continued.

Less convinced on gold. vs. Bitcoin

When it comes to Bitcoin as “digital gold,” however, Farley was more conservative in his predictions.

Now firmly beneath a trillion-dollar market cap, Bitcoin must transform in order to take on store-of-value safe-havens.

Related: Joining the ranks: Bitcoin’s correlation with gold and stocks is growing

“I think the upper bound for now is gold, which is about a $10 trillion market cap,” he added.

“In order for Bitcoin to one day exceed gold, it’ll have to be more of an accepted form of currency — I’m not sure, frankly, if it ever gets there.”

Proponents argue that Bitcoin, by its very nature, faces just a matter of time before eclipsing gold thanks to the latter’s ultimately infinite supply and inability to beat Bitcoin in all aspects of “money.”

The precious metal saw a major sell-off last week after comments on policy from the United States Federal Reserve.

To beat gold, Bitcoin would need to trade at more than $533,000 with the current supply.