Bitcoin Slides by $3k as Bulls See Massive Liquidations

Bitcoin Slides by $3k as Bulls See Massive Liquidations

The cryptocurrency industry is taking no breaks in its erratic moves. The past few weeks are testimony to this fact. Over the past few hours, Bitcoin (BTC)—and many altcoins—have recorded yet another erratic session, leading to significant liquidation across the board.

Reports show that about $400 million worth of both long and short positions have been liquidated on major exchanges. This happened as the benchmark cryptocurrency fell by about $3,000, before sharply recovering most of its losses. However, the cryptocurrency has slightly fallen again over the past few hours.

Out of the long and short positions liquidated, longs accounted for 86.5%, or $343 million. As one would expect, most of the liquidation came from the Bitcoin market. The exchange that recorded the most liquidation volumes is Binance, followed by Huobi, and then Bybit.

Many speculators have asserted that the recent drop was a bull trap, as the liquidation mostly favored bears. Over the past 24 hours, about $1 billion worth of liquidation has been recorded, 85% of which were long positions. In total, more than 108,770 traders were liquidated in just a day.

Nonetheless, the long-term prospects for BTC remain in favor of bulls. However, given the massive number of liquidations, it is obvious that the market is currently over-leveraged.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 15

BTC has suffered yet another sharp correction, after failing to reclaim the $40k round figure after several attempts. The cryptocurrency witnessed a heavy supply at $39,800, which triggered the drop.

However, it would appear that the $34,474 support has stepped up to the event, as it has prevented a steeper decline for the primary cryptocurrency in the meantime. Moving on, we expect to see Bitcoin receive some tailwinds over the weekend, with the mid-$38k as a target.

Meanwhile, our key resistance levels are at $36,500, $37,827, and $38,500. While our key support levels are at $34,474, $33,000 and $32,000.

Total Market Capitalization: $985 billion

Bitcoin Market Capitalization: $672 billion

Bitcoin Dominance: 68%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Bitcoin pulls back inside of a flag to key level

Bitcoin pulls back inside of a flag to key level

Bitcoin has rallied more than 32% since it bounced from the $32,000 level on Monday all trading inside of a very structured move.

We have pulled back to the previous broken level inside of a bullish flag printing massive hidden bullish divergence on the way.

Should this flag breakout we could see BTC rally to retest all time highs which confluence with short term bullish targets of the last wave down (pullback)

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Bitcoin Scarcity: eToro Warns Users Over Impending Disruptions In Cryptocurrency Trading

Bitcoin Scarcity: eToro Warns Users Over Impending Disruptions In Cryptocurrency Trading

eToro, on the largest trading platform, recently notified its users that there could be disruptions in their cryptocurrency trading services due to extreme demand. The exchange went on to explain that it was experiencing “unprecedented conditions on crypto markets,” as Bitcoin (BTC) prices and the cryptocurrency market cap are close to their highest levels in history.

eToro, launched its crypto trading platform in the US in March 2020, effectively missing the bull rally of 2017, when most bitcoins were at higher levels than currently.

The exchange also noted that spreads on crypto-assets could become wider-than-normal as liquidity plummets. Industry observers highlighted that this could be as a result of the “halving effect.”

The exchange may try to limit it’s users’ exposure to crypto-assets by fixing a maximum exposure amount per asset per client.

Meanwhile, eToro Marketing Manager, Brad Michelson, noted that just over the past eleven days, eToro has opened 380,000 new accounts, and its crypto trading volume is operating 25x higher than last year.

Just a few days ago, the exchange placed a minimum deposit requirement on new users to accommodate its existing customer base of about 17 million.

Former Senior Market Analyst at eToro and founder of Quantum Economics, Mati Greenspan, noted that it is very likely that the issue being witnessed on the exchange will be replicated on other platforms as Bitcoin is projected to hit a six-figure price tag this year.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 14

Bitcoin is well on its way to full recovery from its recent crash. After several hours of consolidating between the $37,827 previous resistance and the $37,000 support, the cryptocurrency staged a decent rally to the upper-$39,000 area. However, the benchmark cryptocurrency has entered into yet another consolidation below the $39,800 resistance.

That said, we expect to see a full recovery in the coming hours and days. On the flip side, a fall from its current level will get repelled by the $37,827 support where our ascending channel also is.

Meanwhile, our key resistance levels are at $40,000, $41,200, and $42,000. While our key support levels are at $37,827, $36,500 and $35,000.

Total Market Capitalization: $1.06 trillion

Bitcoin Market Capitalization: $731 billion

Bitcoin Dominance: 69%

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Bitcoin Needs More Institutional Investment: Goldman Sachs Exec

Bitcoin Needs More Institutional Investment: Goldman Sachs Exec

Despite the bolstering institutional investor base Bitcoin (BTC) has gathered, Wall Street expert, Jeff Curie, noted that the market is still in significant need of institutional investment presence to prop up its stability. The Head of Commodities Research at Goldman Sachs made his opinion known in a recent interview with CNBC.

Before now, many companies and institutional investors were wary of BTC, citing its instability as the deal-breaker. Fast-forward to 2020, and corporations are jumping at the idea of Bitcoin investment and have poured significant sums into the cryptocurrency.

One of the pertinent reasons Bitcoin witnessed a spike in institutional investment in 2020 is because of the widespread dovish monetary policies adopted by governments and central banks to combat the coronavirus-induced economic crisis. Big shot investors believe that continuous money printing to fund stimulus packages and other financial bailouts could trigger a significant loss of value for the underlying currency, thereby affecting their wealth.

Meanwhile, the inflow of institutional investment was significantly behind the recent $42k rally.

While the influx of corporate interest in Bitcoin is at an all-time high, Curie still believes that more institutional fund needs to find its way to BTC, adding that “the key to creating some type of stability in the market is to see an increase in the participation of institutional investors and right now they’re small.”

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 13

Bitcoin remains on its steady recovery journey, as it crossed the $36k resistance just a few hours ago. However, it now has to scale the crucial $36,500 resistance to confirm a full bullish recovery and restore it.

A fall from this current level will likely get repelled by the $35k support, where our mini ascending trendline is.

Meanwhile, our key resistance levels are at $36,500, $37,827, and $39,800. While our key support levels are at $34,474, $32,000 and $30,000.

Total Market Capitalization: $978 billion

Bitcoin Market Capitalization: $672 billion

Bitcoin Dominance: 68.7%

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JPMorgan Warns That a BTC ETF Approval Could Negatively Affect Bitcoin’s Price

JPMorgan Warns That a BTC ETF Approval Could Negatively Affect Bitcoin’s Price

Strategists at JPMorgan Chase & Co have alerted that the approval of a Bitcoin exchange-traded fund (ETF) in the US could have dire consequences on Bitcoin’s (BTC) short-term price action.

The proposed reason for the price drop is that an approved ETF could become a major competition for institutional investment for the world’s largest traded cryptocurrency fund, Grayscale’s Bitcoin Trust (GBTC).

The strategists, led by Nikolaos Panigirtzoglou, asserted that the ETF would eat at Grayscale Trust’s effective monopoly, trigger outflow of funds, and cause a drop in the net asset value. This decline will inadvertently strengthen BTC bears in the short-term.

The strategists noted that “a cascade of GBTC outflows and a collapse of its premium would likely have negative near-term implications for Bitcoin given the flow and signaling importance of GBTC.”

VanEck Associates recently filed for a Bitcoin ETF with the SEC after getting turned down from their previous effort. That said, the possibility of a BTC ETF gaining approval this time around seems very likely considering that the leadership at the SEC has been changed to a more cryptocurrency-accommodative Chairman.

Meanwhile, Grayscale recently tweeted that its assets under management have dropped by 13.7% from its record high of over $28 billion as a result of the recent bear market.

According to its latest tweet, the assets under management figure for Grayscale has declined by 13.7% from its record high of over $28 billion late last week.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 12

Bitcoin is now effectively in recovery from its recent crash to the $30k support. At press time, BTC is trading above the $35k, as it aims to climb back above its trendline. Meanwhile, the cryptocurrency is trading well within a wedge, indicating that a spike—in either direction—is just around the corner.

However, it’s most likely that the spike occurs to the upside in the coming hours or days. On the other hand, a drop to the downside should get effectively repelled by the $30k support.

Meanwhile, our key resistance levels are at $36,000, $37,827, and $39,800. While our key support levels are at $34,474, $32,000 and $30,000.

Total Market Capitalization: $940 billion

Bitcoin Market Capitalization: $640 billion

Bitcoin Dominance: 68%

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Four Possible Factors Behind Bitcoin’s Recent $11,200 Crash

Four Possible Factors Behind Bitcoin’s Recent $11,200 Crash

Today has been a very volatile day for Bitcoin (BTC), albeit in favor of bears. The benchmark cryptocurrency tumbled by more than $11k, or 26%, to record a daily low at $30,250.

BTC’s bearish nightmare began after it hit $42k for the first time. However, some analysts have highlighted four possible factors behind the recent crash. They include:

1- Bitcoin Has Been On A Parabolic Run Without Corrections

The recent bull run had been on for a long while, and a sharp correction was inevitable. Since Bitcoin cleared the $20k barrier, it has seen just one significant price correction.

2- Profit Taking

Considering that last year’s rally was likely because of institutional investors and not retail investors/traders, we can see why this idea is very prevalent. Several high net-worth individuals, large hedge funds, and publicly-listed firms trooped into Bitcoin in 2020 like never before, as the cryptocurrency became more appealing. Nonetheless, profit generation was likely the primary intention behind these investments, which explains the rapid liquidation.

3- Whales Are Trying To Shake Weaker Hands Off

As always, whales have a role to play in the recent crash, as they try to strong-arm small and new buyers to sell so they can mop up the excess BTCs at a cheaper amount.

4- HSBC Blocking Transactions From Cryptocurrency Exchanges

The recent announcement that HSBC has blocked transactions to or from cryptocurrency exchanges most likely extended additional support to bears today. Meanwhile, several UK banks have put stops in place to prevent their customers from purchasing crypto assets using their debit or credit cards.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 11

Bitcoin has finally initiated a much-needed correction. Although we predicted a sharp correction in a previous analysis, we did not expect such a scale. Nonetheless, the $30k resistance has performed remarkably well in preventing any further declines, as bears run wild.

That said, we expect a steady recovery from this level over the coming days, as dip-buyers begin to flood the market.

Meanwhile, our key resistance levels are at $34,474, $36,000, and $37,827. While our key support levels are at $30,000, $29,500 and $28,500.

Total Market Capitalization: $923 billion

Bitcoin Market Capitalization: $632 billion

Bitcoin Dominance: 68%

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Bitcoin to Witness Liquidity Crisis Following Recent Widespread Adoption

Bitcoin to Witness Liquidity Crisis Following Recent Widespread Adoption

According to CryptoQuant, the number of Bitcoins (BTC) left on cryptocurrency exchanges has been depleting continuously for about a year. The on-chain analytics firm noted that BTC held in exchange wallets reached an all-time high around three million during the liquidity crisis in March 2020, which saw Bitcoin fall below $4,000.

As the cryptocurrency began to recover, investors started taking their funds off exchanges. This switch has caused the number of BTC on trading venues to plummet below 2.4 million.

Meanwhile, the CTO of Glassnode has drawn a correlation between Bitcoin’s price and the growing number of whale accounts (accounts holding at least 1000 BTC).

He noted that BTC whales have been steadily increasing their holdings during that period and have grown to more than 2,000 addresses. The price of BTC has performed similarly, rallying over $40k.

That said, both metrics highlight a growing concern in the cryptocurrency community; a liquidity crisis.

Apart from the influx of whales, other factors including the estimated three million lost coins, the recent Bitcoin mining reward halving, and the highlight of 2020–the inflow of institutional investment and adoption.

These factors, put together, highlight the growing liquidity crisis plaguing the Bitcoin space.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 10

Bitcoin has finally undergone a notable correction, just as predicted in our previous analysis. This correction should clear the way for the benchmark cryptocurrency to aim for the highly-coveted $50k resistance.

The cryptocurrency saw a flash crash over the past few hours to the $34,475 support before rebounding sharply back above $38k.

Our bullish continuation expectation is further boosted by the hourly MACD indicator, which shows that BTC is now well in oversold conditions.

Meanwhile, our key resistance levels are at $39,000, $41,200, and $42,000. While our key support levels are at $37,827, $36,000 and $34,475.

Total Market Capitalization: $1.04 Trillion

Bitcoin Market Capitalization: $707 billion

Bitcoin Dominance: 67.9%

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Bitcoin Price Analysis — January 8

Bitcoin Price Analysis — January 8

Bitcoin (BTC) is set to close its first weekly candle for the new year on a very bullish note, as the benchmark cryptocurrency records a fresh all-time high on Friday.

BTC hit the $42k price tag for the first time in history before retreating lower over the ensuing hours. This rally came about shortly after the European equities market reported a positive trading session, reinforcing traders’ risk-on sentiment.

In other news, riskier assets got a dramatic boost following the landslide Democratic win in the recent Georgia Senate runoff. Investors will take this as a sign for further fiscal stimulus measures to aid Americans through the Covid-19 pandemic.

Meanwhile, investors were further elated over a lessened political uncertainty after President Donald Trump announced that he will transfer power “orderly” to president-elect Joe Biden. Biden will be inaugurated as the 46th US president on January 20.

Many analysts expect the Biden administration to give rise to bigger stimulus measures that could trigger inflation alongside economic growth in the US. Considering that Bitcoin is an anti-inflation asset, it is expected to rally even further as the US dollar is projected to lose its purchasing power over time.

Nonetheless, some speculators have warned that Bitcoin is now in overbought territory across several timeframe charts, meaning that there’s a potential neutralization coming soon.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 8

Bitcoin had another erratic trading session today after it fell from the $39k price point earlier in the day to the $36,700 support over a few hours. However, bulls were quick to step into action, sending BTC rallying once again to $42k.

Bitcoin has now journeyed into oversold territory on our MACD indicator, as we anticipate a sharp correction soon. A correction from this level will likely be immediately supported by the $36,000 area.

Meanwhile, our key resistance levels are at $42000, $42,300, and $42,800. While our key support levels are at $39,800, $37,820 and $36,000.

Total Market Capitalization: $1.07 Trillion

Bitcoin Market Capitalization: $742 billion

Bitcoin Dominance: 69.3%

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Bitcoin to Hit $50,000 Soon: Bloomberg Analyst

Bitcoin to Hit $50,000 Soon: Bloomberg Analyst

Mike McGlone, the Senior Commodity strategist at Bloomberg, asserted that Bitcoin (BTC) is a better investment than gold in January 2021. McGlone is one of the few mainstream analysts who are believers in Bitcoin. The analyst was bullish on BTC even during its bear market in 2018.

In November 2020, McGlone correctly predicted that BTC would scale the $20,000 level for the first time since 2017. He also added that the $20k break would be a stepping stone for the benchmark cryptocurrency to realize a $1 trillion market cap.

While his long-term prediction is that Bitcoin will hit $100,000 by 2025, his near-term forecast is that the cryptocurrency will hit $50k, considering its price performance over recent months.

McGlone asserted that the possibility of Bitcoin hitting $50k in the near-term far outweighs the probability of the cryptocurrency falling to $20,000.

That said, he highlighted that “Bitcoin may be better than gold.” Bitcoin outperformed the yellow metal, considered to be the de facto safe-haven asset, in 2020. While Bitcoin rose by more than 300%, gold rose by a meager 25%.

Meanwhile, Bitcoin recorded a new all-time high of $40,400 earlier today, in an unbelievable 11% rally. That said, the cryptocurrency is now 20% away from McGlone’s prediction.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 7

Bitcoin continues on its unrelenting bull run as it breaks yet another crucial price barrier. The cryptocurrency cleared the $40k resistance and touched the $40,400 high. This price increase got followed by a sharp drop to the $36,100 level, or -10%. However, the cryptocurrency has since recovered from this fall and now trades around $38,600 (press time).

It is worth mentioning that BTC is well within overbought conditions on our hourly MACD indicator, and a significant correction could be brewing.

Meanwhile, our key resistance levels are at $39,800, $40,396, and $40,500. While our key support levels are at $37,800, $36,100 and $34,400.

Total Market Capitalization: $1.06 Trillion

Bitcoin Market Capitalization: $732 billion

Bitcoin Dominance: 69%

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Analyst Asserts That Bitcoin Is Still in the Early Phase of Its Parabolic Run

Analyst Asserts That Bitcoin Is Still in the Early Phase of Its Parabolic Run

Bitcoin (BTC) continues to create massive boosts for the entire cryptocurrency industry over the past few weeks and is showing no signs of a slowdown. At press time, the benchmark cryptocurrency is trading above the $35k level after a 7% rally earlier today. This is a massive rally considering that it’s a rebound from a fall to the $30k support just yesterday.

BTC clocked a new all-time high at $35,897 before retreating to the lower-$34k area. However, the cryptocurrency appears to be in the process of retesting that ATH. Speculators foresee a $40k price tag for BTC in the near-term.

Meanwhile, one analyst has asserted—via a tweet—that Bitcoin’s rally is yet to enter “overheated conditions,” noting that historical patterns indicate that the current parabolic run is still at its early phases. He notes that “this rally is warm but not yet overheated. This is how much ‘speculative premium’ we have right now compared to similar phases of the prior 2 bull markets.”

That said, this historical precedence, combined with the fact that institutional investments are still flooding into Bitcoin, paints a bright picture for the potential boom awaiting the cryptocurrency.

BTCUSD – Hourly Chart

Key BTC Levels to Watch — January 6

Despite a 6% drop from its recent ATH at $35,897 to the mid-$33k area, Bitcoin continues to wax stronger as it prepares to retake the recent ATH. Our hourly MACD indicates that the cryptocurrency might go into a modest consolidation or another correction to ease the tension a bit.

Meanwhile, our key resistance levels are at $35,897, $36,000, and $36,300. While our key support levels are at $34,000, $33,300 and $32,500.

Total Market Capitalization: $977 billion

Bitcoin Market Capitalization: $661 billion

Bitcoin Dominance: 67.6%

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