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Why Bitcoin Will Rise to $100K After Reaching Previous Highs: Strategist – Business Insider

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Once again, bitcoin is on the come up. It hit all-time-highs on Wednesday, crossing above $66,900.
The move came a day after the ProShares Bitcoin Strategy exchange-traded fund started trading as the first ETF linked to the cryptocurrency. Bitcoin had plummeted 53% from its prior high, all the way down below $30,000 per coin in July.
According to Dave Keller, the chief market strategist for Stockcharts.com who specializes in technical analysis, the recent upward momentum is bound to continue.
Keller told Insider on October 13 that he thought bitcoin would return to its high around $64,000. And if it did, he said, it could be ready to surge a lot higher. He reiterated that sentiment in an emailed statement to Insider on Wednesday.
“The reality for Bitcoin is that every investor that currently owns Bitcoin, even those that bought at the April 2021 high, is now showing a paper profit,” he said. “With no real overhead resistance to speak of, there is plenty of upside potential here.”
More specifically, Keller thinks bitcoin can go to $100,000 for a few reasons. One is because of how much bitcoin has risen in the past after sell-offs.
“One of the classic technical approaches is to take the height of a basing pattern, and to use the height of the pattern to project further upside targets,” Keller said. “For Bitcoin, we have the April 2021 high around 64K and the July 2021 low right at 30K so a total range of 34K (64K-30K). Given an eventual break above 64K that would project an upside target around 98K (64K+34K).”
But investor psychology is what would push bitcoin a bit further, to about $100,000, he said. 
“It’s widely followed in the technical community how prices tend to gravitate around big round numbers, and you find that a lot of times when stocks his $10 a share, or $100 a share, or $1,000 a share,” Keller said. 
He continued: “Especially with bitcoin, that’s a way you psychologically understand the progress it’s making. You don’t talk about the percent return in bitcoin as much, you talk about it hitting a certain level.”
Another reason he expects bitcoin to continue rising is there is buying momentum behind it, measured by the relative strength index (at the bottom of the chart). The RSI measures how overbought or oversold an asset is.
If the RSI is near or above 70% as the price goes higher, it is a positive sign for further upside. This was the case in January, February, and March. However if the RSI is declining and well below 70% as the price rises, this shows weakness ahead. This was the case in April.
Right now the RSI sits above 70%.
Several others names in the space — like Charles Edwards of Hash Robbins and crypto influencer Adrian Zduńczyk — in recent months have also predicted that bitcoin would rise to $100,000 or more. Others, meanwhile, like JPMorgan CEO Jamie Dimon, have to continued to call it “worthless.”
Based purely on technical analysis — or analysis of price movements absent fundamentals — Keller said on October 13 that he believed bitcoin offered a better opportunity for investors than ethereum.
That was because ethereum, which he pointed out used to follow bitcoin’s price movements more closely, hadn’t eclipsed its recent highs around $3,950 yet, even thought it is up almost 30% over the last few weeks. Bitcoin, meanwhile, had eclipsed its own recent highs.
Even more concerning for Ethereum, Keller said, was that its RSI reading also wasn’t as strong as bitcoin’s, showing weaker momentum. 
But ethereum has since done this, climbing above $4,100 on Wednesday. Keller said that this improves his outlook for the cryptocurrency, though bitcoin still looks like a slightly better choice between the two.
“Bitcoin still seems to be the better play although both represent upside potential from here. Bitcoin has shown a stronger acceleration off September lows and shows stronger price momentum than Ethereum,” he said in an email. “However, the path of least resistance for both Bitcoin and Ethereum remains higher given the recent strength.”
He added: “Ethereum is now testing its most recent swing high from early September around $4000 and would need to remain above this key resistance level to maintain a bullish thesis.”

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Cryptoverse: Bitcoin miners get stuck in a bear pit – Reuters

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Sept 27 (Reuters) – Spare a thought for the beleaguered bitcoin miner.
In late 2021, miners were the toast of the town with a surefire path to profit: hook powerful computers up to cheap power, crack fiendishly complex maths puzzles and then sell newly minted coins on the booming market.
A year's a long time in crypto.
Global revenue from bitcoin mining has dropped to $17.2 million a day amid a crypto winter and global energy crisis, down about 72% from last November when miners were racking up $62 million a day, according to data from Blockchain.com.
"Bitcoin miners have continued to watch margins compress – the price of bitcoin has fallen, mining difficulty has risen and energy prices have soared," said Joe Burnett, head analyst at Blockware Solutions.
That's put serious pressure on some players who bought expensive mining machines, or rigs, banking on rising bitcoin prices to recoup their investment.
Bitcoin is trading at around $19,000 and has failed to break above $25,000 since August, let alone regain November's all-time high of $69,000.
At the same time, the process of solving puzzles to mine tokens has become more difficult as more miners have come online. This means they must devour more computing power, further upping operating costs, especially for those without long-term power pricing agreements.
Bitcoin miners' profit for one terahash per second of computing power has fluctuated between $0.119 and $0.070 a day since July, down from $0.45 in November last year and around its lowest levels for two years.
The grim state of affairs could be here to stay, too: Luxor's Hashrate Index, which measures mining revenue potential, has fallen almost 70% so far this year.
2140: THE LAST BITCOIN
It's been painful for miners.
Shares of Marathon Digital (MARA.O), Riot Blockchain (RIOT.O) and Valkyrie Bitcoin Miners ETF (WGMI.O) have sunk more than 60% this year, for example, while crypto-mining data center operator Compute North filed for bankruptcy last week.
Yet mining is ultimately a long-term proposition – the last bitcoin is expected be mined in 2140, more than a century away – and some spy opportunity in the gloom.
"The best time to get in is when market's low, the same mining rigs that went for $10,000 earlier this year you can get that for 50% to 75% off right now," said William Szamosszegi, CEO of Sazmining Inc which is planning to open a renewable-energy powered bitcoin mining operation.
Indeed, many miners are cutting back on buying rigs, forcing makers to cut prices.
For instance, the popular S19J Pro rig sold for $10,100 in January on average, but now sells for $3,200, analysts at Luxor said, also noting prices for bulk orders of some mining machines had fallen by 10% in just the past week.
Chris Kline, co-founder of crypto investment platform Bitcoin IRA, said miners would have to be "hyper-focused" on energy efficiency, both to bring costs down and to avoid any repercussions from climate change-related regulations.
"From managing their balance sheet, processing units and energy costs, miners will look to stay afloat regardless of current market conditions," he added.
Our Standards: The Thomson Reuters Trust Principles.
Crypto companies were undeterred by initial failure to obtain licences to operate in Britain and were submitting new applications, the Financial Conduct Authority said on Thursday.
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Crypto market volatile; Terra Classic Lunc leads the laggards, Bitcoin above $19k | Mint – Mint

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  • The American currency scaled past the 111 level against a basket of currencies — making cryptocurrencies against the greenback vulnerable as well. Currently, there is a steep plunge in trading volumes of cryptocurrencies.

Cryptocurrencies are trading volatile tracking feeble global equities after recession fears in major economies like the US and Europe sparked. The US Fed’s aggressive approach to tame inflation at the cost of economic growth further dampened the mood. Fed has hiked the rate by another 75 basis points. Wall Street and European stocks slipped sharply last week, while energy prices settled lower and bond yields climbed to multiyear highs. The American currency scaled past the 111 level against a basket of currencies — making cryptocurrencies against the greenback vulnerable as well. Currently, there is a steep plunge in trading volumes of cryptocurrencies.
On CoinMarketCap, at the time of writing, the global crypto market is at $939.57 billion up by 0.28% over the last day. However, total crypto market volume dropped nearly 37% over the last 24 hours and is at $49.82 billion.
Meanwhile, the total volume in DeFi is currently at $3.11 billion — 6.25% of the total crypto market 24-hour volume. The volume of all stablecoins is now $45.65 billion which is 91.63% of the total crypto market 24-hour volume.
Ethereum is the top trending cryptocurrency today followed by PancakeSwap and XRP.
The crypto leader Bitcoin is trading at a little over 19,000 mark at $19,090 up by 0.5%. Its market cap is nearly $366 billion. The digital coin’s dominance is currently up by 0.12% over the day at 38.95%.
Meanwhile, the second largest cryptocurrency Ethereum is performing near $1,331 and is up by 0.75%. Its market cap is around $163.3 billion.
Recently, Ethereum launched the most-awaited Merge which led to a transition of proof-of-stake consensus, officially deprecating proof-of-work and reducing energy consumption by ~99.95%.
Data from Coinglass showed that Ethereum has liquidated more than $759 million since September 15.
However, both Bitcoin and Ethereum have dipped by nearly 5% and 9% respectively in the last seven trading sessions.
Among top-performing cryptocurrencies in the last 24 hours are — Reserve Rights climbing by 9.5% followed by Chainlink up 5.5%. Algorand, Chiliz, and eCash surged by 4-5.5%.
On the other hand, Terra Classic Lunc took lead in the laggards list by plunging more than 7%, followed by XDC Network shedding nearly 5%, Stellar and DogeCoin tumbling more than 3% each. Axie Infinity, Helium, Nexo, Celsius, and Synthetix dived between 2-3%.
Terra tokens are under pressure as currently, Terraform Labs CEO Do Kwon is facing multiple jurisdictions. An arrest warrant has been issued by the Seoul Southern District Prosecutors Office against Kwon who is the forefather of TerraUSD algorithmic stablecoin and sister token Luna that wiped out reportedly $60 billion in the cryptocurrency market. Kwon’s whereabouts are unknown, although, the co-founder of Terra tokens denied rumours of being on the ‘run’ from government agencies.
Last week, US Fed in its latest policy statement said, “the Committee is highly attentive to inflation risks.”
FOMC further said, in support of these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt, and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that was issued in May.
FOMC is committed to returning inflation to its 2% objective.
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Bitcoin news – live: Price crash continues as crypto ‘stable’ coin UST uncouples from dollar – Yahoo News

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