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Bitcoin price charts hint $11K will likely cause trouble for BTC bulls

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While Bitcoin (BTC) has been showing weakness in recent weeks as BTC price dropped from $12,000 to $10,000, some light at the end of the tunnel is showing up.

The price of Bitcoin showed support at the psychological barrier of $10,000 and bounced numerous times as it’s already close to $11,000. Most importantly, can Bitcoin break through this crucial area and continue its bullish momentum?

Bitcoin holds $10,000 to avoid any further correction on the markets

The price of Bitcoin couldn’t hold above $11,100 at the beginning of September and dropped south, causing the crypto markets to tumble down with it.

BTC/USD 1-day chart. Source: TradingView

Given the fast-paced breakout above $10,000 in July, a large gap was created without substantial support zones. As no support zones were established, the price of Bitcoin fell to the $10,000 area within one day.

This $10,000 area is a crucial support area, as it was previously a resistance area, particularly around the time of the Bitcoin halving that occurred in May. But now, flipping this key level for support increases the chances of further upward continuation.

Is the CME gap getting front-run by the markets?

As the price dropped from $12,000 earlier this month, most traders and investors had their eyes on the potential closure of the CME gap.

BTC/USD CME 1-day chart. Source: TradingView

BTC/USD CME 1-day chart. Source: TradingView

However, the CME gap didn’t close as buyers stepped in above the CME gap. The price of Bitcoin reversed at $10,000 and not at $9,600.

In that regard, the likelihood of not closing this CME gap increases by the day. Not all CME gaps will get filled as it’s just another factor to consider for traders, just like support/resistance flips or the Fibonacci extension tool.

What’s more likely is a substantial range-bound period for Bitcoin, which may last for months. A similar period was seen in the previous market cycle in 2016.

A potential scenario for Bitcoin

BTC/USDT 1-hour chart. Source: TradingView

BTC/USDT 1-hour chart. Source: TradingView

As the chart shows, a current uptrend is clearly visible since the crash with continuation likely.

The upper resistance level is $10,900. If this is broken, the next crucial hurdle is found at $11,100-11,300. This resistance zone is the essential level on higher timeframes as well, which, if broken, may result in a massive rally.

BTC/USDT 1-day chart. Source: TradingView

BTC/USDT 1-day chart. Source: TradingView

The price of Bitcoin may then see a quick rise to the next major resistance zone at $12,100.

However, a breakthrough in one-go is less likely as this would only be the first test of the previous support zone ($11,100).

Therefore, a potential continuation of the sideways range-bound structure shouldn’t come as a surprise and would be similar to what happened right after the 2020 halving.

To recap, clearly-defined support zones are found at $9,200-9,500 and around $10,000; the resistance zones are at $11,100-11,300 and $11,900-12,200.

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





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Algorand (ALGO) price strengthens as institutional investors back the project

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Consolidation periods tend to follow strong rallies but they also present a good opportunity to survey the field and evaluate projects that have strong fundamentals.

One project that continues to gain traction in terms of price recovery and network adoption is Algorand (ALGO), a pure proof-of-stake (POS) blockchain network that has secured new partnerships and real-world use case applications, as well as support from multi-million-dollar funds in recent weeks.

Big funds invest in Algorand-based projects

Raising funds is one of the biggest challenges many projects face and in the last month the Algorand network announced that Arrington Capital, a digital asset manager, had pledged $100 million in funding meant to help accelerate additional development across all facets of the smart contract platform.

This development came on the heels of the June 2 announcement that Borderless Capital, a venture capital firm, had created a $25 million fund aimed at supporting Miami-based blockchain startups developing digital payment solutions on the Algorand network.

Related: Exodus Wallet raises almost $60M in crypto in regulated offering

New partnerships lure investors

A scroll through the Algorand Foundation Twitter feed shows a growing list of cryptocurrency projects across a variety of sectors that have joined up as part of the Algorand community to take advantage of the low fee, POS environment.

The nonfungible token (NFT) sector is showing some interest in the network following a partnership with Curate that will allow for the minting of NFTs as well as the release of a bridge by Curvegrid that will allow businesses to build NFT and blockchain technology into their business and consumer mobile applications.

Other recent examples of adoption include a partnership with the Bermuda-based MAPay healthcare payment solution, which will host its payment solution on Algorand blockchain in an effort to improve efficiency and reduce healthcare costs, as well as a partnership with Xfinite and Eros Now to create a blockchain-based content engagement platform for the 224 million registered users of Eros Now.

These new partnerships come after a busy year for the network which also included the integration of USD Coin (USDC) and Tether (USDT), the two largest stablecoins in the cryptocurrency ecosystem. 

The growing list of network partnerships and investments from players in traditional finance suggests that ALGO is well-positioned to see future growth as the blockchain sector sees continued adoption and the crypto market recovers from it recent sharp correction.

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