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These Three Factors Suggest Bitcoin is Already in a Strong Downtrend

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It has been a rough week for Bitcoin. The benchmark crypto rallied to highs of $9,800 just a few short days ago before once again being met with massive selling pressure that caused it to slide lower.

The mixed price action it has seen in recent times is strikingly similar to that seen in the traditional markets, suggesting that it may remain highly correlated to stocks and other mainstream assets.

At the moment, BTC does appear to be in a precarious position.

It is currently attempting to hold above the lower boundary of its long-established trading range, although the support at this level appears to be growing increasingly weak.

It now appears that there are three factors that all distinctly suggest that Bitcoin has entered a downtrend and that further downside could be imminent.

This comes as analysts are noting that its reaction to a potentially imminent visit of $8,600 could determine its fate in the days, weeks, and even months ahead.

Bitcoin Slides to $9,000 as Selling Pressure Continues Mounting 

At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,070.

BTC has been trading around this price level for the past couple of days, but its inability to push into the mid or upper-$9,000 region does seem to point to underlying weakness amongst its buyers.

Just a couple of days ago, sellers forced it as low as $8,900. There was, at the time, heavy buying pressure at this price level.

As NewsBTC reported over the weekend, from a mid-term standpoint, Bitcoin’s trend in the coming weeks may depend on its reaction to $8,600.

One analyst spoke about the importance of this level, explaining that an ardent defense of this level could be enough to push BTC up to $10,500. In contrast, a decline beneath it could invalidate its multi-month uptrend and force it significantly lower.

“Bitcoin: All depending on holding $8,600-8,800. If we do, we’ve got a hidden bullish divergence (I don’t do much with them regularly). And another HL. The next test of $10,500 = very likely breakout. Losing $8,600 -> invalidation,” he said.

Image Courtesy of Crypto Michael. Chart via TradingView

Three Factors Show that BTC Has Entered a Downtrend

It does appear that Bitcoin may already be in a downtrend, despite it still trading within its long-held trading range.

Data platform Coinalyze spoke about this possibility in a recent tweet, explaining that there are three factors supporting this notion.

They note that a falling price coupled with growing open interest and a falling Cumulative Volume Delta (CVD) signals that further losses may be imminent.

“Bitcoin 4h: Theoretically this is a strong downtrend. Price fall + OI grow + CVD fall = strong downtrend,” they noted.

Bitcoin

Image Courtesy of Coinalyze.
Featured image from Shutterstock. Charts from TradingView.

Source: https://www.newsbtc.com/2020/06/29/bitcoin-is-already-in-strong-downtrend/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-is-already-in-strong-downtrend

Blockchain

Bitcoin Price Analysis: BTC Plunges $300 in 2 Hours, Here’s Why

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Bitcoin bears appear to have come out of hibernation today. According to the latest data from Glassnode, Bitcoin hourly addresses hit a 2-year high today and hourly active addresses set at a new yearly high.

While these figures might sound promising, they have coincided with a steep $300 crash in Bitcoin’s price over a 2.5 hour period. So far, the leading crypto’s market cap has fallen by over $4 billion over the past several hours.

Bitcoin Price Levels to Watch in the Short-term

btc_jul2_4h-min-min
BTC/USD 4-hour chart, Bitstamp

On the above 4-hour BTC/USD chart, we can see that the price action just broke to the bearish side, out of a rising wedge pattern.

The sudden surge in selling pressure drove Bitcoin through the weekly open support (white line) at $9,113 and all the way down on to the 500-EMA (marked red) support beneath, at around $8,944.

Prior to the breakout, the bulls almost succeeded in retesting the 50-EMA (blue line) for a second time, but the sentiment shifted quickly after the strong $9,260 resistance held for the 5th time (as can be seen on the 30-minute chart below). We anticipated this bearish decline in yesterday’s Bitcoin analysis.

Right now, the price levels which will most likely create resistance against any short-term uptrend will be the aforementioned weekly open at $9,113, and somewhere around the $9,200 area if bitcoin price throws back to the previous support level of the rising wedge pattern (yellow line).

Looking at the lower levels, we could see some support at the psychological $9,000 level and back at the 500-EMA level. However, we could see a possible second wave of selling take place once bears recharge from the recent crash. If this happens, the $8,800 level looks like a possible short-term target for bitcoin sellers, which coincides with a previous support and the 0.5 Fibonacci extension level.

btc_jul2_30m-min
BTC/USD 30-min chart, Bitstamp

The Technicals

Looking at the 30-minute BTC/USD chart, we can see that BTC price broke into the oversold region on the RSI. For intraday traders this is usually a strong buying signal, and already it has helped rebound prices back over the $9,000 mark. This doesn’t mean that bitcoin is out of the woods yet though.

The moving averages on the 4-hour MACD have now bearishly diverged beneath the zero line with selling volume rising on the histogram. This confirms that the short-term trend is now favorably bearish.

Total Market Cap: $261 billion

Bitcoin Market Cap: $167 billion

Bitcoin Dominance Index: 63.8%

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-price-analysis-btc-plunges-300-in-2-hours-heres-why/

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Bitcoin Data Not Protected by 4th Amendment, US Court Rules

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A Fifth Circuit panel of three judges ruled against Richard Gratkowski’s appeal that Fourth Amendment rights should protect Bitcoin data. The panel ruled that the FBI agents who subpoenaed cryptocurrency exchange Coinbase to track Gratkowski’s payments to a child pornography website acted according to the law.

4th Amendment Doesn’t Hinder US Law Enforcement to Track Bitcoin Transactions

On Tuesday, a US court compared Coinbase to a traditional bank, citing the US Supreme Court’s decision in the United States v. Miller case from 1939, in which it ruled that bank records weren’t subject to Fourth Amendment protections.

US Circuit Judge Catharina Haynes concluded:

“Coinbase is a financial institution, a virtual currency exchange, that provides Bitcoin users with a method for transferring bitcoin. The main difference between Coinbase and traditional banks, which were at issue in Miller, is that Coinbase deals with virtual currency while traditional banks deal with physical currency.”

For those unfamiliar, the US Court of Appeals for the Fifth Circuit is a federal court with appellate jurisdiction over the district courts in three states – Louisiana, Mississippi, and Texas.

Previously, the FBI subpoenaed Coinbase to get records of Gratkowski’s payments to a child pornography site. The crypto exchange offered the US government a limited amount of data, the judges said.

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The criminal complaint filed against Gratkowski in January 2018 in the Western District of Texas shows that he used Bitcoin to pay for child pornography between June 2016 and May 2017. After analyzing the blockchain transactions to track addresses that had moved Bitcoin to one of several accounts related to the site, FBI agents subpoenaed Coinbase for data on its clients.

The federal agents conducted a search warrant on Gratkowski’s house based on the information provided by Coinbase. They found a storage device containing child pornography content. As a result, Gratkowski was sentenced last year to 70 months in prison and ten years of probation.

Court Rejects Gratkowski’s Appeal

Gratkowski appealed the decision, saying that his Bitcoin data should get the same protections that the Supreme Court previously ruled for cellphone location data in its 2018 Carpenter v. United States decision.

However, the three judges unanimously disagreed. They argued that Bitcoin data is not personal and isn’t a “pervasive or insistent part of daily life.” It doesn’t provide agents with “an intimate window into a person’s life,” unlike cellphone location data.

The panel said that Bitcoin users have the alternative to not use banks at all whenever conducting transactions.
This is not the first instance when public information on blockchain helps law enforcement agencies track consumers of child pornography. Earlier this week, CryptoPotato reported that the Spanish Civil Guard arrested several people who had allegedly taken part in the distribution of child pornography.

The international investigation revolved around tracking crypto payments of users who entered child pornography websites.

Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited – first 200 sign-ups & exclusive to CryptoPotato).

Click here to start trading on BitMEX and receive 10% discount on fees for 6 months.


Source: https://cryptopotato.com/bitcoin-data-not-protected-by-4th-amendment-us-court-rules/

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Amazon CEO Bezos Now Has More Money Than Bitcoin’s Market Cap

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Jeff Bezos, CEO of online shopping giant Amazon, recently tapped record wealth levels, holding more personal wealth than all the speculative capital currently invested in crypto’s largest asset — Bitcoin (BTC). 

“Amazon stock shares surged 4.4% to a record $2,878.70 Wednesday, boosting the founder’s world-leading fortune to $171.6 billion,” Bloomberg said in a July 1 article. “That tops his previous high of $167.7 billion, set on Sept. 4, 2018, according to the Bloomberg Billionaires Index.”

Bezos’ deep pockets compared to Bitcoin

At press time, Bitcoin holds a market cap of approximately $166.4 billion, according to Coin360 data, showing the value of all BTC in circulation at the asset’s current price level. 

Bezos’ total net worth outpaces that number, revealing Bitcoin’s relatively small size in comparison to other markets, and even people. For further comparison, gold’s total market cap sat around $8 trillion in May 2020, based on Cointelegraph reporting

Bezos buying all available BTC

Even at his current net worth, Amazon’s billionaire CEO likely could not buy all Bitcoin in circulation. 

Bezos could purchase the available BTC held on exchange order books, Genesis Genesis Mining’s head of mining operations, Philip Salter, speculated to Cointelegraph for a previous story. The activity, however, would likely drive up the asset’s price and remove liquidity from the market. Additionally, some people may not be willing to sell their BTC, while some others have lost their Bitcoin over the years, unable to access it. 

Derivatives trader and YouTuber Tone Vays also weighed in with similar thoughts on the matter for a separate article. “He would drive up the price of Bitcoin to the point where he could no longer afford it,” Vays said of Bezos back in April.

Source: https://cointelegraph.com/news/amazon-ceo-bezos-now-has-more-money-than-bitcoins-market-cap

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