Bitcoin Price Analysis: Market Conditions Suggest a Bigger Move is Brewing

bitcoin price brewing tea

Bitcoin price has had a blistering start to the week up 10.6%, hitting highs on Tuesday of $4,000, stirring some distant memories of the 2017 bull runs. We take a pause mid-week to consider what might be next now we have already hit the target discussed on Monday.


1-Day Chart

Bitcoin price is up 1.5% ahead of the US session kicking off. With previous psychological resistance looming overhead at $4,000, BTC will have work to do to breakdown some of the sell-walls across most exchanges.

In good news for the bulls, the MAC-D on the daily chart has crossed zero for the first time since August 2018 and there are no signs of bearish divergences in this move yet.

The CMF is starting to show some sign that there the bullish pressure is starting to ease off, which is what would be expected as we reach towards $4,000.

1-Hour Chart

Taking a deep dive into the hourly chart, the bull’s push this morning is evident in the RSI, which broke out of its downward trend, having found support at 50, which is a bullish sign.

Additionally, the MAC-D has crossed bullish which is positive, but it remains to be seen if the US can keep the momentum up when traders hit their desks this morning.

Market Sentiment

Using Bitfinex looking at market sentiment, Bitcoin is displaying all of the same leveraged conditions as were witnessed before the fall from $6,000.

Although this time, the Long positions being down some 30% from 36,000 BTC, is encouraging bearing in mind that the closure of such positions is effective selling, while the price is rising, which is very bullish.

Total gross leverage in this market has plummeted, with short positions also down 23%.  All of these things would imply that the market may be winding up to make an explosive move, but at this point is unclear in which direction.

Something to definitely keep a close watch over for the remainder of the week.

Trade Bitcoin, Litecoin and other cryptocurrencies on online Bitcoin forex broker platform evolve.markets.  

To get receive updates for the writer you can follow on Twitter (@filbfilb) and TradingView.

The views and opinions of the writer should not be misconstrued as financial advice.  For disclosure, the writer holds Bitcoin at the time of writing.


Images courtesy of Tradingview.com, Shutterstock

The post Bitcoin Price Analysis: Market Conditions Suggest a Bigger Move is Brewing appeared first on Bitcoinist.com.

Source: Blockchain

Venezuela Imposes Capital Controls on Bitcoin Remittance Amid Record Volume

venezuela

Venezuela continues to reach new heights in terms of weekly Bitcoin trading volume. Meanwhile, the country’s government has issued new regulations that impose fees on Bitcoin remittance.


2,545 BTC: New Weekly Bitcoin Trading Record

According to data from Coin Dance, Venezuelans traded 2,454 BTC via Localbitcoins (the P2P trading platform) for the week ending February 9, 2018. This figure surpasses the 2,004 BTC recorded in the previous week.

Last week’s volume amounts to the highest ever recorded in the country. In terms of VES, the country’s beleaguered fiat currency, 24 billion VES worth of Bitcoin changed hands during the period, an increase of 41 percent from the week ending February 2, 2019.

With the continued political, social, economic turmoil in the Latin American state, citizens continue to rely on Bitcoin and other cryptocurrencies for survival. The current stand-off in the political scene is sure to exacerbate further the already dire issues surrounding forex shortage and hyperinflation.

15 Percent Fee on Bitcoin Remittance

With Bitcoin trading volume soaring, state officials are getting into the action, introducing exorbitant fees on cryptocurrency remittance payments in the country.

According to the notice published on the Official Gazette 41581 on February 7, 2019, the National Superintendence of Cryptoactives and Related Activities of Venezuela (SUNACRIP) now oversees cryptocurrency-based remittance in the country.

SUNACRIP now has the power to set limits on cryptocurrency payments. An excerpt of the decree published by local crypto news media Criptonoticias, reads as follows:

The ruling defines commissions that range from 0.25 euros ($0.28) as the minimum rate per transaction, to 15% of the funds transferred in cryptocurrencies [sic]. In addition, it limits the sending of remittances to a monthly amount equivalent to 10 Petros (PTR), a cryptocurrency [sic] created by the Venezuelan Government.

The notice also establishes an upper limit for the cryptocurrency payments pegged at $3,000.

The reaction from many commentators on the matter has been unanimously negative. Imposing fees on cryptocurrency remittance is counterproductive to the essence of international payments via cryptocurrency which is the removal of exorbitant fees charged by mainstream services.

According to the World Bank, the global average remittance fees range between 5.2 percent and 9.4 percent. The SUNACRIP fee structure effectively renders crypto remittance more expensive than fiat.

This new directive comes on the heels of an earlier law that seeks to punish what the state considers unauthorized cryptocurrency use.

What’s your take on the remittance fees being imposed on Bitcoin and other cryptocurrency transactions by the Venezuelan state? Let us know your thoughts in the comments below.


Images courtesy of coin.dance and Twitter (@SunacripVe), Shutterstock

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Source: Blockchain

Japanese Yen Set to Surpass US Dollar in Bitcoin Trading

japanese yen bitcoin

The U.S. Dollar (USD) and the Japanese Yen (JPY) are the two most dominant national currencies used in Bitcoin/fiat trading. But while the USD has always dominated the market, it appears BTC/JPY may now be on the verge of overtaking the dollar.


Most Bitcoin/Fiat Trades Denominated in USD or JPY

The USD is in many ways the de facto global currency for business and trade. It is the most popular currency in the forex market, and as such, it is no surprise to find that BTC/USD 00 is one of the most commonly used trading pairs.

According to the cryptocurrency market indexing platform Coinhills, BTC/USD accounted for more than 48 percent of all Bitcoin/fiat trades over the last 24 hours. JPY comes as a close second with more than 47.23 percent of all such transactions within the same time frame.

Japan Needs to Have Stricter Exchange Regulations According to Monex

Together, both account for 95.87 percent making them by far the most popular fiat currencies used in BTC trading. The popularity of the BTC/USD pair isn’t exactly surprising given that Tether (USDT), the most popular stablecoin in the market is pegged to the USD.

Based on Coinhills’ data, JPY is becoming a firm favorite for Bitcoin traders. Back in November, Bitcoinst reported on a study by Cryptocompare that showed a 50 percent dominance for USD in the BTC/fiat market. At the time, JPY accounted for only 21 percent. Though it is important to note that Coinhills’ data covers only 24 hours. The research by CryptoCompare was for the whole of November 2018.

Meanwhile, Bitcoinist reported last week that Asian markets tend to have a bigger impact on BTC price than the US and Europe, according to cryptocurrency research firm Mosaic. If the trend holds, Japan, in particular, could give the USD a run for its money when it comes to fiat trading pairs. The land of the rising sun is known for its crypto-friendly laws and embracing BTC commerce with major retailers accepting bitcoin both at brick and mortar stores and online.

BTC/KRW Surprisingly at Two Percent

Leading the rest of the minor currencies is the Korean Won (KRW), which accounts for two percent. Data from the CryptoCompare study put the BTC/KRW trading pair at 16 percent of the Bitcoin/fiat market.

The figures from Coinhills might indicate a cooling off of trading activity in the Korean market. Between October and November 2018, BTC trading to KRW dominated the fiat spot trading for the top-ranked cryptocurrency. Sometimes, the BTC/KRW pair accounted for about half of all daily Bitcoin fiat spot trading.

Other lesser traded fiats include the Euro (EUR), the Polish Złoty (PLN) and the Russian Ruble (RUB). These account for 1.35 percent, 0.15 percent, and 0.11 percent, respectively. Outside of the Americas, Europe, and Asia, the most popular BTC/fiat pairs are the South African Rand (ZAR – 0.03 percent) and the Australian Dollar (AUD – 0.03 percent).

Do you think the Japanese Yen can upstage the U.S. Dollar as the dominant BTC/fiat trading pair? Share below! 


Images courtesy of Shutterstock and CryptoCompare

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Source: Blockchain

Ethereum Price Analysis: Ether Burns to a Crisp

ethereum price eth price fire

Ethereum has turned into an unattended dumpster fire. Let’s take a look at the Ethereum price analysis and see what it will take to turn the price around.


Ethereum Price: Market Overview

2018 has been a rough year for Ethereum price 00 and at the moment it doesn’t look like the situation will improve. Of the top 5 cryptocurrencies, ETH price disintegration has been nothing short of harrowing and with the ICO market being declared dead by a growing number of analysts.

Meanwhile, the SEC in constant pursuit of what it deems to be unregistered securities sales and illegal marketing has put a ton of pressure keeping it from rebounding from its current lows.

ETH-USD Shorts

Additional pressure is also coming from a record high number of shorts (400,000) betting against an Ether recovery and this seems to be pinning ETH price below $95. A break above $95 – $100 could cause some shorts to cover and the price could extend to $115 to $125.

However, it seems a strong Bitcoin led recovery is the only catalyst that would set this sort of action into motion.

ETH-USD Longs

Here is the ETH/USD longs chart.

4 HR Chart

ETH had been trading in a tightening range of $83 to $103 but a decline in volume and pattern of lower highs hinted that ETH price would break down over the short-term.

ETH under $85 is a problem and below $83 – $80 could be catastrophic. The pattern of lower highs remains and ETH’s oversold bounces on the Stoch and RSI are diminishing in the amount of lost ground reclaimed.

Longs have 300,000 contracts open and a drop below $80 could accelerate ETH losses and the considerable support gap below $80 could lead to ETH price dropping to $60, if not to $41.

1HR Chart

Ethereum price dropped supports at $89, $87.60, $85.90. Now $83 – $80 appears to be the last support before a steep fall. Ambitious traders should either wait patiently for a bullish pattern to present itself or attempt to catch and oversold bounce if ETH drops below $83.

But setting a tight stop loss would be wise in order to protect against the possibility of a steep decline below $80.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]

Where do you think Ethereum price will go over the short-term? Share your thoughts in the comments below!


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase and Bitfinex.

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Source: Blockchain