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Bitcoin price failure at $11K moves focus back to sub-$10K CME gap

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Bitcoin’s (BTC) price has been showing some slight strength in the previous week as BTC rallied from $10,000 to $11,200. However, the crypto market’s overall consensus has been showing weakness with double-digit selloffs for many of the smaller-cap cryptocurrencies.

This selloff appears to have taken hold as Bitcoin price confirmed $11,200 as resistance in the previous weekend.

Rejection as $11,200 leads to a downward spiral

BTC/USD 1-day chart. Source: TradingView

In the previous analysis, the $11,000-$11,200 level was identified as a substantial resistance area to break. The significance of this level is very high as the previous consolidation period used the zone as a key area of support.

If the market wants to continue its upward momentum, this zone should be reclaimed as support, making a retest of $12,000 possible.

But since that rejection, the price of Bitcoin made a new lower high, which means further downward momentum is likely in the near term. 

All markets are retracing, except the DXY

While the commodity, crypto, and equity markets have been breaking down, the U.S. Dollar Currency Index (DXY) has been showing strength.

DXY Index 1-day chart

DXY Index 1-day chart. Source: TradingView

All over the world, fears of new coronavirus lockdowns are increasing due to rising infection rates. In times of uncertainty, investors are looking for “safe” places, making the U.S. Dollar the most preferred place to park value when it comes to cash.

During the crisis of 2000 and 2008, and even the recent market crash in March, the U.S. Dollar was seen as the strongest asset.

The chart above shows a clear support/resistance flip of the 92.75 points level, after which a bullish divergence was confirmed. It seems likely that continuation toward 95 points is on the horizon unless a rejection occurs in the 93.50-94 range. The downtrend may resume continue if DXY rejects and loses the 92.75 area. 

If DXY continues to show strength, commodity and crypto-assets will continue to misbehave. The inverse should be expected if DXY shows weakness. 

Crypto total market cap embraces the $250-$275 billion zone

Total market capitalization crypto 1-week chart

Total market capitalization crypto 1-week chart. Source: TradingView

The total market capitalization of crypto is still consolidating and correcting from the previous impulse wave. This means a crucial area to hold is the 100-week and 200-week moving averages (MAs), as these indicate the continuation of the bull and bear cycles. 

However, the previous resistance and consolidation area between $250-$275 billion never had a test to confirm the breakout. 

In that regard, the green area between $250-$275 billion is a very likely area of higher time frame support to be hit. 

What’s next for Bitcoin’s price?

BTC/USDT 2-hour chart

BTC/USDT 2-hour chart. Source: TradingView

The 2-hour chart shows a clear rejection at the $11,100-$11,300 area as the negative expectations of a breakout were met.

However, what’s next after such a strong crash in the markets? The $10,200-$10,325 area is a lower time frame support zone and indicators suggest that a relief bounce could be on the tables. 

The crucial resistance zone to test and break for a bullish continuation is the $10,700-$10,750 area, which is also unlikely to expect at this time. 

If this zone fails to break or the price loses the $10,200 area, investors’ attention will shift back to the untested level around $9,500-$9,700. 

This level is still very significant as it is near the open CME gap. 

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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Visa, PayPal Join Crypto VC Blockchain Capital’s New $300M Fund

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PayPal confessed that this is its first time to become a Limited Partner in a blockchain or digital asset-focused fund.

PayPal is to partner with Visa in a venture fund meant for Blockchain Capital, whose fifth funding is estimated to be around $300 million. The announcement came in on Tuesday.

The two tech-savvy firms are green to the Cryptocurrency VC. Though each of them has previously invested, directly, in digital asset startups, working together as Limited Partners (LP) is a different ball game. The deal technically means that an external manager will be tasked with placing the equity investment in their stead. PayPal via correspondence, confessed to Coindesk that this is the company’s first deal of such nature, particularly with a VC.

In matters of venture capital, the Company is a renowned figure, actually one of the companies that have been around for quite some time. Blockchain Cap. owns over $1.5 billion, which is under management. Spencer Bogart, a general partner in the company revealed. The general partner also added that the company’s fifth funding got backed by universities and notable pension funds. However, he did not mention names.

From Bogart’s point of view, the two companies are very eager to invest in cryptocurrencies, a niche they have confidence in but need expert help to navigate. Bogart was quoted saying that steering startups to secure agreements with the big boys like Visa and PayPal was very fulfilling.

Jose Fernandez, Paypal’s crypto lead was quoted saying that if they invest in Blockchain Capital’s fund, it will give them an opportunity to learn from the pace setters in the Blockchain and digital assets niche. Blockchain is looking forward to pump $300 million in the venture, whose size can’t be compared to thé big boys like Coinbase and Kraken just yet, Bogart further added. Blockchain Capital began deploying capital over a year ago but a bigger share if its new fund is awaiting.

Purpose of the New Fund Supported by Paypal and Visa

The new funding is meant to support startups in building decentralized finance (DeFi) and non-fungible tokens (NFTs), but all the while, avoiding the digital assets, Bogart claimed. The last time Blockchain Capital’s fund was announced was in 2018 March. The fund was about $150 million.

Blockchain Capital’s fifth fund will definitely have the right outcome, considering that the big boys, PayPal and Visa are involved. Besides, the past funds were successful which is an indicator of what lays ahead. Where such companies, with a global outlook, are involved, you can be sure that proper research was done before the decision was arrived at.

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Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.



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Bitcoin Registers Sharp Dip in Price, BTC Is Below $30K

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The global Bitcoin market suffers a stark decline with a fall to below $30000 after the news that the PBOC ban on crypto went viral.

The cryptocurrency market suffered a major dip as the prices of Bitcoin fell with an approximate price of $30000. The fall in the BTC prices has been registered shortly after the news of China banning crypto made headlines. Earlier, China had issued fresh instructions to the People’s Bank of China to impose a complete restriction on BTC transactions in the country.

China has been persistent with its efforts to completely neutralize the growing crypto operations in the nation and also is practicing strict restrictions to ban Bitcoin and other cryptocurrency variants.

Bitcoin Registers a Serious Dip in Global Finance Market

The BTC prices have fallen yet again in a recent fall where the approximate amount that has fallen is credited at US$ 30000. The fall has been documented as a severe one and has affected the global finance forums. The prices of Bitcoin were on rising as several Latin American nations including El Salvador and Panama embraced the crypto transactions with legal tender, however, the recent crackdown of China’s Crypto move has yet again made the BTC prices suffer a massive blow.

The prices of Bitcoin had a steady rise in February 2021 with an average rate of US$ 64000 till mid-April. The prices have received frequent fluctuations after the first news of China imposing restrictions on crypto transactions in Sichuan went viral. In addition to the recent PBOC guidelines, the vrypto market underwent a significant fall amounting to approximately 35% of the total BTC rate.

Newest BTC Fall Affects the Hash Rate of Cryptocurrency

The Bitcoin prices managed to stay afloat with Latin American nations openly supporting the crypto transactions. The hash rate during March and April remained consistently rising and boosted the overall pricing of cryptocurrency variants.

With People’s Bank of China putting a lid on crypto for reasons such as growing environmental concerns had catapulted the hash rate of the BTC and the fall registered today decimated the hash rate by 5.5%.

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Juhi Mirza is an archaeological major who is obsessive about blockchain/Crypto technology and deems it to be the foundational philosophy of the future. Her dogged ability to research and crystallise technical facts/multiple perspectives into rivetting stories makes her an accessible finance writer. She tends to her archaeological pursuits and loves unearthing the past over the weekends.



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Chinese Bitcoin Mining Company Delivers First Machines to Kazakhstan

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BIT Mining was served with a notice on June 19 which stated that the Chinese power regulator was planning to suspend power supply to its Sichuan firm.

The popular Chinese Bitcoin miner BIT has begun its exodus from China to find a crypto-friendly mining environment. The company has moved operations to Kazakhstan and has already delivered 320 to their new working site after the suspension of Bitcoin mining activities in Sichuan, China. Before the end of June, the publicly-listed firm plans to take another 2,600 mining machinery to their new home, the company announced on Monday.

The Cryptocurrency mining powerhouse revealed that their remaining mining machinery will be translocated overseas. Already, the translocated machinery’s hash rate capacity stands at 18.2 PH/s. Besides Kazakhstan, BIT is keen on taking their operations to Texas. Already, $25 million has been invested in an upcoming facility in Texas.

Sudden Move of Bitcoin Mining Activities to Kazakhstan

Undoubtedly, China is not a fan of cryptocurrencies, particularly Bitcoin and any Bitcoin mining-related activities, and this is largely to blame for this momentous decision. Additionally, BIT Mining was served with a notice on June 19 which stated that the China’s power regulator was planning to suspend power supply to its Sichuan firm.

The Sichuan’s operations contributed about 3% of the company’s revenue. With the harsh regulations on Bitcoin mining in China, most companies have suspended their operations in the Asian powerhouse and are relocating their facilities, to countries whose laws are Bitcoin-friendly.

Miners Exodus

In the past, let’s just say since Bitcoin became popular and Bitcoin mining started trending, China hosted 50% of the world’s Bitcoin miners. However, the country has all over intensified crackdown on Bitcoin operations and Beijing wants all miners out of its jurisdiction ASAP.

The move (banning cryptocurrency operations) is allegedly meant to make way for China’s Central Bank Digital Coin (CBDC), the digital yuan. Most market watchers think that the Chinese authorities ignorantly believe that the yuan won’t thrive as long as Bitcoin is still around. However, that’s not the case according to some pundits, who believe that the two, yuan and Bitcoin, can coexist.

Earlier in the year, March, China’s crackdown on “the digital gold” set off what is now popularly called “the great mining exodus” in cryptocurrency circles. The exodus is currently underway and could be a game-changer for countries whose laws are friendly for Bitcoin mining.

Why Most Miners Have Their Eyes on Texas

Last winter, Texas experienced a day-long massive blackout but still, Bitcoin miners are trooping in. Why is that so? Texas is popular for low energy charges, plus the rate at which the use of renewable energy is growing is amazing, hence, a good place for Bitcoin mining. Texas sourced 20% of its energy from wind, a clean source of energy, in 2019.

The American state has relaxed energy regulations and allows power consumers to opt for their favorite power producers. Bitcoin mining is energy-intensive and is known to have adverse effects on the climate. Additionally, the use of electricity, non-renewable energy, is one thing that repels China’s, however, some people think otherwise.

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Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.



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