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Here’s Why the Weekend is Critical for Determining Bitcoin’s “Natural Direction”

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  • Bitcoin’s price action seen throughout the past several days has done little to clarify its mid-term trend
  • The crypto remains caught firmly within a consolidation phase as its buyers and sellers reach an impasse
  • BTC’s present price action may currently be driven by external factors – including how the traditional markets are trending
  • One popular trader is now noting that how the crypto trends during the weekend should provide significant insights into its natural direction

Bitcoin has once again entered a firm consolidation phase within the lower-$9,000 region. This comes close on the heels of the recent price decline that caused it to shed over $1,000 from its highs.

It does appear that analysts are widely anticipating the weakness caused by this recent price decline to lead its price lower, but buyers have been ardently defending the $9,000 level.

This recent decline came about in close tandem to that seen by the stock market, which appears to be having a heavy influence over BTC’s present price action.

One highly respected trader is now noting that how Bitcoin trends during the weekend should offer insights into its “natural direction.”

He does add that there are a multitude of factors that suggest the next big movement seen by the crypto will favor sellers.

Bitcoin Consolidates as Analysts Closely Watch Weekend Price Action

At the time of writing, Bitcoin is trading down marginally at its current price of $9,450. This is around the price point at which it has been trading at for the past couple of days.

A few days ago, buyers garnered some upwards momentum that pushed the crypto to highs of $10,050. The push to this level was short-lived, however, and the selling pressure found here rapidly fueled an intense decline.

Bitcoin began spiraling lower until it found strong support around $9,000. After rebounding here, it has been consolidating around its current price level.

Bitcoin

Chart via TradingView

Because this recent dip came about in tandem with that seen by the stock market, analysts are noting that how it trends during the weekend should provide valuable insight into its “natural” trend.

Avi Felman – head of trading at Blocktower – spoke about this in a recent post, saying:

“When Bitcoin trades tick for tick with the SPX the weekends become a nice little window into the natural direction of BTC, as the correlation traders just sit on their hands waiting for the next move.”

What Could This Mean for BTC’s Imminent Price Action?

Felman further goes on to explain that the benchmark cryptocurrency’s “natural direction” doesn’t appear to favor bulls.

“If you’re sitting there thinking we’re headed for 11k but that we’re also about to experience a second wave I’d rethink that. If BTC can’t break 10k during a raging equity bull party not sure I see 11k BTC with Hertz below $1,” he explained.

Because Bitcoin’s massive resistance around $10,000 did prove to be insurmountable even in the face of an intense stock market rebound seen earlier this week, it does appear that its buyers are plagued by underlying weakness.

Featured image from Shutterstock. Chart via TradingView.

Source: https://bitcoinist.com/heres-why-the-weekend-is-critical-for-determining-bitcoins-natural-direction/?utm_source=rss&utm_medium=rss&utm_campaign=heres-why-the-weekend-is-critical-for-determining-bitcoins-natural-direction

Blockchain

Mode Adds Bitcoin to Reserves, Joining Microstrategy and Square

A UK-based fintech firm has just announced a large purchase of bitcoin using its cash reserves. Mode Global Holdings, an already bitcoin-friendly financial company, has become the first UK publicly traded firm to allocate part of its reserves to the cryptocurrency. The announcement follows those of Microstrategy and Square. As many cryptocurrency industry observers suspected, […]

The post Mode Adds Bitcoin to Reserves, Joining Microstrategy and Square appeared first on BeInCrypto.

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A UK-based fintech firm has just announced a large purchase of bitcoin using its cash reserves. Mode Global Holdings, an already bitcoin-friendly financial company, has become the first UK publicly traded firm to allocate part of its reserves to the cryptocurrency.

The announcement follows those of Microstrategy and Square. As many cryptocurrency industry observers suspected, Microstrategy’s August revelation appears to now be inspiring others.

Currency Debasement Prompts Mode to Invest 10% of Cash Reserves

First, there was Michael Saylor’s Microstrategy. Then, came Jack Dorsey’s Square. The two companies adding BTC to their balance sheets reveal an emerging appetite for bitcoin as protection against inflation and economic crises.

Mode is the latest publicly-listed company to realize bitcoin’s importance. The UK fintech firm announced the decision via press release on Wed 21 Oct.

Mode has reportedly allocated 10% of its cash reserves on its balance sheet to bitcoin. Motivating the decision is the uncertain global macro-economic outlook in the wake of the coronavirus pandemic.

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The firm says that the bitcoin allocation is an effort to protect the assets of investors from currency debasement. It mentions record low UK interest rates of 0.1% in its justification.

The company recently completed an IPO in which it raised £7.5 million. The press release states that the decision to invest in bitcoin is an effort to “maximize the value of returns” from its IPO.

Despite its recent investment foray into bitcoin, Mode is no stranger to the digital asset. It describes itself as “the bitcoin banking app.” It also sells BTC, as well as the ability to generate interest from holdings.

Another Public Company Finds Refuge in BTC

As mentioned, Mode is by no means the first publicly-listed company to take on exposure in bitcoin. Illustrating this shift is Microstrategy CEO, Michael Saylor. In 2013, Saylor publicly dismissed bitcoin on Twitter:

After eventually doing some research into the cryptocurrency this year, Saylor completely changed his mind.

Recent appearances on various industry podcasts, along with passionate tweets like that below, have quickly elevated the CEO to legendary status in Bitcoin circles:

Whereas Bitcoin previously appeared to represent a tool for criminals, it’s now emerging as a hedge against macro uncertainty. Like Mode, both Microstrategy and Square cited their own concerns about fiat currency debasement in the wake of unprecedented coronavirus stimulus packages around the world.

The nature of these businesses lends themselves to such investments. Both Square and Mode are well-accustomed to the cryptocurrency industry, having both offered BTC exposure for some time.

In the case of Microstrategy, the board of directors is just five-strong with Michael Saylor controlling around 72% of the voting power. It, therefore, would have been much more likely for Microstrategy to invest in BTC compared to other publicly-listed companies.

Some industry observers believe that this is just the beginning of a steepening institutional adoption curve.

Source: https://beincrypto.com/mode-adds-bitcoin-to-reserves-joining-microstrategy-and-square/

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Blockchain

Has Bitcoin met its match with this altcoin?

The feud between Bitcoin and Ethereum is a long-standing one. ‘Feud’ isn’t exactly the right word for it. Perhaps, the communities have fought over which is the superior coin for quite some time. Howe

The post Has Bitcoin met its match with this altcoin? appeared first on AMBCrypto.

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The feud between Bitcoin and Ethereum is a long-standing one. ‘Feud’ isn’t exactly the right word for it. Perhaps, the communities have fought over which is the superior coin for quite some time. However, comparing BTC and ETH is like comparing apples to oranges, while both may be fruits, both are different and alike in their own way.

Here are a few examples:

  1. Bitcoin is more ‘money’ than Ethereum. Bitcoin’s major focus was to be an alternative payment system to the US dollar. Hence, payment/value transfer is the main focus of Bitcoin, while with Ethereum, there are a plethora of use cases that range from smart contracts, building dapps, the world computer, etc.
  2. Bitcoin is an asset that has higher s2f  which is its main attraction/selling point to the global audience. Bitcoin can hold value [aka store of value] and is digital gold, hence, this narrative is quite alluring to the investors. As for ETH, people may find it hard to grasp Ethereum as a blockchain.

While fundamental differences are many and can be elaborate, here are comparisons of an on-chain metric that tries to show the differences between the two.

  1. Bitcoin addresses worth $1 hit a new high of 24 million, and so is the same with ETH addresses holding $1 ETH at 21.4 million.

Source: Coinmetrics

While ETH isn’t far away it still needs to catch up with BTC.

2. BTC addresses that hold less than $10 is at a whopping 16.45 million whereas, for ETH, this number is at 6.51 million. The gap is huge but is not out of the purview of Ethereum.

Source: Coinmetrics

Conclusion

This is both good and bad, depending on how one views it.

On the bright side, Bitcoin has had the 1st mover advantage, however, ETH has almost caught up with bitcoin even though it was launched in 2015, 2016. Considering ETH’s much-awaited and much-delayed ETH 2.0, these numbers could easily be overpassed, should ETH successfully move to ETH 2.0.

To conclude, comparing these coins is counter-cyclical. Bitcoin’s goal is much different than what Ethereum intends to do, so comparing them would be a wasted effort. While the two, as mentioned, are different from each other, trying to build a gateway between the two would benefit both the ecosystem better.

Source: https://eng.ambcrypto.com/bitcoin-and-ethereum-is-one-better-than-the-other

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Blockchain

Yearn Finance Adds GUSD Vaults and Updated Keep3r Network Details

Yearn Finance, one of the leading Defi protocols has recently made an addition on Gemini Dollar (GUSD) vaults to its platform.

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Yearn Finance, one of the leading DeFi protocols, has recently made an addition on Gemini Dollar (GUSD) vaults to its platform. The firm has not yet revealed any strategies or potential earnings from this new addition to the platform. It is recently reported that the other four stablecoin pools on the platform have seen some yearly growth.

This new addition by Yearn Finance is appreciated by Cameron Winklevoss, founder of Gemini exchange. He seems to be quite delighted by this move and believed that the future belongs to the DeFi sector.

Yearn Finance Founder’s Github Updated With More Details

It is also reported that Github of the founder of Yearn Finance recently got updated with the additional details on the Keep3r network. It is believed that this is going to act as a smart contract job platform for all the projects that require some extra operations. Here the job is used for smart contracts that require an entity to perform actions. It is also mentioned that the network will be powered by KPR tokens and these tokens are issued as rewards against job completion. 

Daniel Lehnberg Explored How Protocol Should be Considered 

There has been a lot of discussion regarding this protocol by the Yearn Finance and Daniel Lehnberg has also explored how this protocol needs to be considered.  In the end, it is specified that it is actually not even a company and is not having any shareholders. It indicates that this protocol is not in a good position at present. It is reported that Yearn Finance has again slumped by 14% this week and is currently around the $13,000 mark. This position is still seen as a loss because it is 63% less the all-time weekly high of YFI which was around $37,000 back in September.

READ  BCH Proponent Releases Stamp Chat, Prototype Of Layer-2 On Bitcoin Cash

#Cameron Winklevoss #Daniel Lehnberg #GitHub #GUSD vaults #Keep3r network #KPR tokens #yearn.finance

Source: https://www.cryptoknowmics.com/news/yearn-finance-adds-gusd-vaults-and-updated-keep3r-network-details

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