Cloud Hosting

Bitcoin is hanging in the balance as the cryptocurrency currently trades at support around the $6,800 level. It had previously been trading above $7,000 where it struggled to break above resistance at the $7,400 level.

Bitcoin dropped from $7,400 yesterday and fell back beneath $7,000 but managed to find the support at the $6,800 level. This price is an important level as it provided a strong level of resistance from the market during the late half of March 2020 and therefore is expected to provide strong support moving forward.

Bitcoin Price Analysis

BTC/USD Daily CHART SHORT TERM

Analyzing the daily chart above, we can clearly see Bitcoin resting at the support at around $6,800. It fell into support at the .382 Fibonacci Retracement level yesterday, priced at $6,765, but managed to close the day above the $6,800 level.

We can see how $6,800 had provided resistance for the market during both late-March and early April and therefore it is expected to provide strong support moving forward. However, a break beneath $6,800 could prove to be devastating for Bitcoin as it would unwind toward the $6,000 level.

Bitcoin remains bullish right now but is in strong danger of turning neutral if it drops beneath $6,800.

Support toward the downside is located at $6,800, $6,765, $6,500, $6,300, $6,100, and $6,000.

On the other hand, if the buyers climb higher, resistance lies at $7,000, $7,174, $7,400, $7,500, and $7,676.

Key Levels

Support:$6,800, $6,500, $6,100, $6,000, $5,911, $5,786, $5,636, $5,600, $5,500, $5,467 $5,200, $5,000, $4,800, $4,672, $4,577, $4,139, $4,000, $3,912, $3,500, $3,436.

Resistance: $7,000, $7,174, $7,400, $7,500, $7,676, $8,000, $8,073, $8,250, $8,461, $8,672, $8,979, $9,000, $9,100.

Summary

Article Name

Bitcoin Price Analysis: BTC Hanging In The Balance As Buyers Defend $6,800 - Where To Next?

Description

Bitcoin dropped by a small 1% today as the cryptocurrency continues to battle with the $6,800 level.The cryptocurrency rolled over yesterday to drop from the $7,400 level to reach the current support at $6,800.

Author

Yaz Sheikh

Publisher Name

Coin Gape

Publisher Logo

Share on Facebook

Share on Twitter

Share on Linkedin

Share on Telegram

View post:
Bitcoin Price Analysis: BTC Hanging In The Balance As Buyers Defend $6,800 Where To Next? - Coingape

Todays Bitcoin price drop below USD $7k has taken some by surprise, yet it is causing little concern among analysts, In fact, the mood is optimistic, as most believe that the market will recover quickly, with the flagship crypto currency soon surging much higher.

Todays market dip has not caused a notable shift in Bitcoins general upward movement since mid-March. In fact, a look at the chart from CoinMarketCap shows that drops of $200-400 have taken place several times in the past few weeks, only to rebound relatively quickly. Thus, if the pattern is to hold Bitcoin would need to hover around $6,900 for a day or two before coming back up.

There are some analysts that seem to think that prices may remain low for a few days, yet most seem to think that the price will not go much lower, if at all. For example, Pierre has tweeted:

Although those that were hoping that the price would remain above $7k may be disappointed, the mood is that there is little concern for a major drop.

Analysts of all types remain very firm in their assertions that Bitcoin stands to gain significantly due to a range of upcoming events. For example, much discussed block reward halving will re-shape the market, making existing Bitcoins more valuable. It seems as if everyone agrees that this one simple change in the protocol will have a major market impact.

Also, fear continues to grow that the U.S. Federal Reserve will continue to devalue the Dollar in its attempt to alleviate the growing economic crisis. In fact, few now believe that the Fed will stop at just 2.3 trillion. Many point to the fact that this amount is a mere drop in the bucket when compared to other government liabilities such as the national debt and unfunded entitlements.

Meltem Demirors, Chief Strategy Officer at CoinShares, has tweeted:

The simple implication is that before long the government will be forced to print an exponentially greater amount of cash in order to pay for these programs. Such a move will cause much higher inflation, and all but certainly drive more Americans into crypto investment. Bitcoin would clearly benefit most.

Thus, there is a growing sense that Bitcoin presently sits at what could be a bargain-basement price. Should the current patterns continue, now is clearly the time to invest.

Do you think this current dip is a good Bitcoin buying opportunity? Add your thoughts below!

Images via Shutterstock, Twitter @Melt_Dem @pierre_crypt0, BTC/USD chart by Tradingview

Continue reading here:
Why Bitcoin Analysts See This Dip As Incredible Opportunity To Buy - Bitcoinist

Crypto analyst Nicholas Merten says he believes Bitcoin is firmly on a long-term trajectory that will bring the leading cryptocurrency to $100,000.

In a new episode of DataDash, Merten takes a birds-eye look at Bitcoins boom and bust cycles over the years. By looking at the long-term logarithmic chart of the BraveNewCoin Liquid Index (BLX), which provides a reliable USD price of Bitcoin based on real-time trading data, Merten seesa likely timeline for the next bull run.

If we take a look at the previous three clear cycles that we had here in cryptocurrency markets, we can generally take into note that weve seen an expansion of about a year added to each and every cycle The first cycle was around 11 to 12 months, in this case, for Bitcoin.

Afterwards, from the bottom to the high, just like we did with the previous cycle, 24 months With the third cycle, we have a 35-month period from bottom to top, roughly give or take almost three years

Theres no guarantee that history is going to repeat itself exactly. There might be some big discrepancies this time around with the macro environment. The halving might play out differently. But if we take a look here of the logarithmic growth curves and take into mind the significant lows and the significant resistance, we actually are going to line up quite nicely here to a top of $100,000, give or take it might not be exactly even sometime in 2022.

The DataDash founder offers two key fundamental catalysts that can drive Bitcoins rise to $100,000.

We havent even seen the economic ramifications of the halving event and the continued macro environment going into a higher state of fear. These are the things that can drive Bitcoin to that valuation

I believe pretty consciously in this case that $100,000 is quite reasonable. Bitcoin at over $1 trillion market cap is going to be relatively reasonable in an environment where theres money fleeing from global bonds, from global currencies, from equities or property markets as we enter into a longer drawn out bear market through a potential depression.

Thats a very, very conservative ask, in my opinion, for a new emerging digital gold for Millennials and Gen Z. A key point here is to focus on these longer-term time frames. To be patient. This is going to be a long journey, but its going to be a fun one.

Although the future of the global economy is far from certain, Merten says he believes that in the long run, Bitcoin will benefit from the increasing intervention in the economy from the US Federal Reserve as investors look outside of equities for assets with a fixed monetary supply.

Unlike the Fed which says, We are going to do x and [then] they do y, Bitcoin has been chugging along. If you need to process a transaction, you can do it. If you want to know that your money is going to be fixed in a system or your purchasing power is fixed into a system that isnt going to change the rules every five minutes, Bitcoin does that Bitcoin is the clear winner here.

Featured Image: Shutterstock/Chat Karen Studio

View post:
Heres Why Bitcoin (BTC) Is Rocketing Toward $100K, According to Crypto Analyst Nicholas Merten - The Daily Hodl

"It's exactly why bitcoin (BTC) was created," Michael Novogratz, CEO of the cryptocurrency-focused investment firm Galaxy Digital, told CNBC last week.

It's a common refrain heard these days from bitcoin bulls:The U.S. dollar and other currencies will eventually be debased by the injections of trillions of dollars of coronavirus-related aid and monetary stimulus bygovernments and central banks. That should, theoretically,strengthenthe case for bitcoin, the oldest and largest cryptocurrency, as a hedge against inflation.

You're readingFirst Mover, CoinDesk's daily markets newsletter. Assembled by the CoinDesk Markets Team, First Mover starts your day with the most up-to-date sentiment around crypto markets, which of course never close, putting in context every wild swing in bitcoin and more. We follow the money so you dont have to. You can subscribe here.

Such predictions might eventually come true, but for now bitcoin investors are stuck in a holding pattern: The cryptocurrency pushed above $7,000 on Monday, but for the past couple weeks it has struggled to hold that level, whichit hasn'treliably traded above since early March.

"Anice recovery from the lows leaves investors hopeful," cryptocurrency analysis firmArcane Research wrote Friday in a report. "However, this is not yet reflected in the market sentiment."

Any inflationstemming fromfiscal and monetary stimulus could take a while to appear partly because of higher unemployment and a drop-off in economic demandcould relieve upward pressure on consumer prices in the near term. In the U.S. alone, roughly 10 million new unemployment claims were filed during the last two full weeks of March, and JPMorgan economists predictthat a report this week will reveal another seven million claims were filed last week. Bank of America says the lack of an effective policy response to control the spread of the virus will push 2020 global growth to a contraction of 2.7 percent, instead of an expansion of 0.3 percent.

Nic Carter, a partner at Castle Island Ventures and co-founder of the blockchain analytics startup CoinMetrics, wrote last week for CoinDesk that the devaluation of money "does not happen immediately, but over time."

The 2008 financial crisis prompted the Federal Reserve to doubletotal assetsin a matter of weeks, and then doubled the size of the balance sheet again to more than $4 trillion over the next few years. But it took the money supply, as measured by M2, more than 12 years to double, at least partly because of low demand for loans in the years after the crisis.

The bitcoin market's tepid reaction thus far to the Federal Reserve's announcement of essentiallyunbounded quantitative easingmight disappoint some bitcoiners who are looking for a faster pump.

Sylvain Saurel, author of the blogIn Bitcoin We Trust, wrote last week that a separate move by U.S. regulators to reduce bankreserve requirements could lead to new money creation "ad infinitum."

"This unprecedented currency devaluation in such a short period of time has been decided by the Federal Reserve in a totally arbitrary manner," Saurel wrote. His conclusion,essentially, was that people should buy bitcoin.

Jay Hao, CEO of the Malta-based cryptocurrency exchange OKEx, wrote last weekin a blog postthat "more proactive measures" would be needed beyond "QE infinity." Those could include anew "super-sovereign currency" to address trade and economic imbalances created by the U.S. dollar's dominant role in global finance.

"At present, bitcoinpossesses the characteristics of a super-sovereign currency," Hao wrote.

The investment narrative that bitcoin is a "harder" currency than U.S. dollars and is getting additional traction from next month's "halving" on the bitcoin blockchain the once-every-four-years occurrence by which the pace ofissuance of new units of the cryptocurrency gets cut in half.

Traders are expected to get a chance this week to observe how prices oftwo bitcoin-offshootcryptocurrencies, Bitcoin SV (BSV) and Bitcoin Cash (BCH),perform as they go through their own quadrennial halvings.

Someanalysts said last month that bitcoin was trading in syncwith U.S. stocks. That was seen as a sign thatsome investors were selling the cryptocurrency as part of anindiscriminate flight to safety into dollars.

Olga Feldmeier, CEO of the digital-asset exchange Smart Valor and a self-described "outright bitcoin maximalist," says bitcoin's price plunge earlier this year undercuts hopes that the cryptocurrency would serve as a safe-haven assetin times of market turmoil. She instead recommended "tokenized gold" digital tokens like the Pax Gold (PAXG) that offer a crypto-friendly way of investing in the yellow metal, long seen as a reliable inflation hedge.

Kraken, a San Francisco-based cryptocurrency exchange, noted in an April 4blog postthat the volume of PAXG trading on its platform surged to $13 million in March, a six-fold increase from February levels.

"Kraken clients appear to see PAXG as a safe haven of late since it is backed by gold, which typically acts as a safe haven amidst economic uncertainty," according to the post.

But there are some indications that bitcoin might be trading more like gold in recent weeks. VanEck, a money-management firm that offers a bitcoin trust to qualified institutional buyers, saysbitcoin's price correlation with gold jumped to 0.47during the last couple weeks of March, from an average 0.03 over the past eight years. (A correlation of 1 implies perfect synchronicity.)

The next couple months could prove pivotalfor bitcoin as the U.S. suffers theworst stretch of thepandemic's health crisisand moves into the economic-recovery phase. Nancy Pelosi, speaker of the U.S. House of Representatives, told CNBC last week the recently passed $2 trillion aid packagewould not be enough. Treasury Secretary Steven Mnuchin said he wouldask Congress for more moneyif a $350 billion pool for small businesses runs out.

"More bazookas needed," executives for the Wall Street dealer Jefferies wrote Friday in an open letter to clients and colleagues.

Is bitcoin the real digital gold? With more financial "bazookas" getting hoisted into position, cryptocurrency markets will serve as theproving ground.

"Many Bitcoin advocates think it will prove to be a better long-term store of value than gold," according to the Kraken blog post. "Only time will tell."

Tweet of the day

Editor's caveat: No idea if this $20 "Bitcoin Logo V2 Neck Gaiter Face Mask" is real. If so the free publicity heredoes NOT representan endorsement. It seems like a high price for a mostly polyester bandana. But itcertainly isa sign of the times.

BITCOIN WATCH

Bitcoin is again looking to establish a strong foothold above $7,000, having tested dip demand with a pullback to $6,600 over the weekend. The cryptocurrency printed a high above $7,100 early Monday and is currently changing hands around $7,090.

The bulls have repeatedly failed to keep gains above the $7,000 mark over the last three weeks, forcing investors to question the sustainability of recovery rally from the March 19 low of $3,867.

Even so, the bias remains bullish, as a pennant breakout confirmed April 2 is still intact. As a result, the cryptocurrency remains on the hunt for a test of the descending 50-day average, currently at $7,522.

If the upside break of $7,000 resistance again proves to be short-lived, the immediate bullish outlook would be neutralized. The bias would turn bearish if prices fall below support at the weekend low of $6,610.

That would open the doors to the higher low of $5,856 created March 30.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

More here:
Trillions in Coronavirus Stimulus Brings Out the Bitcoin Bulls - CoinDesk

On this episode we join Anita Posch as she discusses bitcoin's (BTC) potential and realities with a self-described "digipreneur" and teacher in Harare, Zimbabwe.

Listen/subscribe to the CoinDesk Podcast feed for unique perspectives and fresh daily insight withApple Podcasts,Spotify,Pocketcasts,Google Podcasts,Castbox,Stitcher,RadioPublica,IHeartRadioorRSS.

With the use of bitcoin outlawed and the state of human rights and free speech rather poor in Zimbabwe, Anita agreed not to mention her guest's name. In this episode they discuss:

Selected excerpts from this week's episode:

"If I have a bitcoin, I can send money to my relatives, who are in Malawi or in Namibia or in Ghana. Currently I can't with our own currency. I can't send money out freely and quickly. But if we can sit down as a community and say, 'Okay, we need to buy a new borehole and we can do that just by using our phone,' that's an amazing thing. You know, if we look at it from a place of development, if you look at it from a place of helping the community and taking care of each other, if it allows us to take care of each other without having to create so many barriers and so much red tape to get stuff done with money, I feel like when you change that narrative, you speak to something very deep within an African." -Teacher and Digipreneur, Zimbabwe

"Cryptocurrency feels almost like luxury. It's sad because I don't think that's what it's supposed to be, but it was also bearing in mind cryptocurrency was designed in a functioning environment. It was designed by people who maybe haven't spent 12 hours in a fuel queue?" -Teacher and Digipreneur, Zimbabwe

"We need to start having more conversations about the future with the people who are actually affected by the future. Hold workshops under a tree in Binga and have someone who is there who can translate into the local language and have a conversation." -Teacher and Digipreneur, Zimbabwe

Listen/subscribe to the CoinDesk Podcast feed for unique perspectives and fresh daily insight withApple Podcasts,Spotify,Pocketcasts,Google Podcasts,Castbox,Stitcher,RadioPublica,IHeartRadioorRSS.

This podcast special and my trip to Africa would not have been possible without my sponsors and supporters. I want to thank my sponsors first: Thank you:LocalBitcoins.coma person-to-person bitcoin trading site, Peter McCormack and thewhatbitcoindidpodcast,Coinfinityand theCard Wallet,SHIFT Cryptosecurity, manufacturer of the hardware walletBitBox02and many thanks to several unknown private donors, who sent me Satoshis over the Lightning Network.

This special is edited by CoinDesks Podcasts EditorAdam B. Levineand published first on theCoinDesk Podcast Network. Thank you very much for supporting the Bitcoin in Africa series with your work.

Thanks also goes out tostakwork.com. Stakwork is a great project that brings bitcoin into the world through earning. One can do microjobs on Stakwork, earning Satoshis and cash them out without even having an understanding about the lightning network or bitcoin. I think we need more projects like that to spread the usage of bitcoin around the world.

Thank you also toGoTenna, for donating several GoTenna devices to set up a mesh network in Zimbabwe and toTeam Satoshi, the decentralized sports team for supporting my work. This special is also brought to you by theLet's Talk Bitcoin Network.

Edited by CoinDesks Podcasts Editor: Adam B. Levine

Idea, content and production: Anita Posch Music: "Start with yes" by Delicate beats

Listen/subscribe to the CoinDesk Podcast feed for unique perspectives and fresh daily insight withApple Podcasts,Spotify,Pocketcasts,Google Podcasts,Castbox,Stitcher,RadioPublica,IHeartRadioorRSS.

Read this article:
If Bitcoin Works in Zimbabwe, It Works Everywhere - CoinDesk