Connect with us

Bitcoin

Analysts Expect Bitcoin to Rally to $19,000 Next Despite Spike in Funding

Published

on



  • For the first time in weeks, Bitcoin saw a massive selloff yesterday evening that caused its price to reel to lows of $17,400
  • These lows came just over an hour after the cryptocurrency hit highs of $18,600, with this marking a fresh post-2017 high
  • Where the entire market trends in the near-term will depend largely on how Bitcoin continues trading in the time following this selloff
  • Bulls were able to push BTC back above $18,000 after these lows were set, but it has since drifted below this level
  • One trader is now noting that he believes a move towards $19,000 is likely for the cryptocurrency, despite rising funding rates

Bitcoin and the entire crypto market saw some immense volatility yesterday that came about after the benchmark crypto saw a sudden surge up to highs of $18,600.

The selling pressure that existed at this price level was so intense that it sparked a $1,200 selloff that sent the crypto to lows of $17,400.

From here it saw a “V-shaped” recovery and rapidly pushed back towards $18,000. It has been consolidating just below this level ever since.

One trader does believe that a push even higher is imminent in the near-term. He targets $19,000, noting that this could come about despite a rising funding rate and premium.

Bitcoin Faces Immense Volatility Following Latest Upsurge 

At the time of writing, Bitcoin is trading up just under 1% at its current price of $17,800. This is around where it has been trading throughout the past day.

Overnight, bulls were able to catalyze a strong push higher that sent it to highs of $18,600. The selling pressure here was intense, suggesting that this rally over-extended itself.

It then faced a sharp move lower that likely came about due to an abundance of late long positions. This move sent it down to lows of $17,400.

Analyst: BTC Likely to Continue Towards $19,000 Despite Selloff

One trader explained that the underperformance of altcoins seen as a result of Bitcoin’s recent volatility suggests that attention is about to shift back onto BTC and allow it to outperform the rest of the market.

He is targeting a move up towards $19,000, although rising funding rates do provide a reason for concern.

“Alts dumping hard here vs BTC… Thinking $19k is very realistic even though funding & premium started spiking here.”

Image Courtesy of Mac. Source: BTCUSD on TradingView.

Whether Bitcoin can gain a strong foothold above $18,000 should provide some serious insights into its short-term outlook.

Featured image from Unsplash.
Charts from TradingView.





Source link

Bitcoin

RSK-based DeFi protocol launches innovative decentralized exchange concept

Published

on

By



DeFi protocol Money on Chain, a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, announced Wednesday the launch of TEX, an automated token swap platform based on an order book with a unique twist.

Instead of being available instantaneously, orders are processed in batches according to a slightly variable interval of a few minutes. Each execution, called a tick, matches the orders submitted to the blockchain.

Each trade occurring in a given tick is performed at the same average price between all orders submitted by traders. Limit orders submitted by users indicate the maximum or minimum acceptable price. For example, a limit order to sell Bitcoin for $18,000 will not be triggered if the average price is $17,900.

As Max Carjuzaa, CEO of Money on Chain, explained to Cointelegraph, the system also uses an oracle system for more fine-tuned control. With so-called market maker orders, traders express a price with a certain percentage offset from the reference rate obtained by the oracle. This ensures that the orders will track the changes in price occurring between ticks.

The design of the system was inspired by the London Spot Fix, a pricing mechanism for gold where a committee decides on the price of gold two times per day.

Automated market makers like Uniswap are often seen as a necessity in light of the slow performance of blockchain-based systems. When asked if these concerns drove the design of TEX, Carjuzaa replied:

“No, the primary reason it was adopted is fair price discovery. The method used in the TEX is a way to avoid front-running and ensure fair price discovery, even at low volume.”

Front-running and price discovery are often considered major issues in AMM exchanges. But Carjuzaa also believes the system “needs much less liquidity to operate.” For the same liquidity, he claims AMMs will have more slippage compared to TEX. This benefit is “especially important in a new network, and enables organic liquidity growth.”



Source link

Continue Reading

Bitcoin

2 counterarguments for CNBC’s Brian Kelly who sees a $19K Bitcoin top

Published

on

By


CNBC Fast Money trader Brian Kelly sees three potential signs of a price top as Bitcoin (BTC) hits $19,000. Both fundamental and technical factors suggest a pullback could be imminent as the rally becomes overextended.

BTC/USDT 1-hour chart (Binance). Source: TradingView.com

Kelly named three reasons why a short-term Bitcoin pullback might occur. The reasons were the pump of altcoins, overpriced address growth and high funding rates. On Nov.25, he said on CNBC:

“I’m still a Bitcoin bull. In the long run, I’m going to be a bull for the next decade. But, if I take off the long-term investor hat and put on my short-term hedge fund trader hat, there are a couple of things out there that I’m starting to see are signs of a top.”

Altcoin pump is shaking things up

As Cointelegraph reported, alternative cryptocurrencies (altcoins) such as XRP and Stellar (XLM) have surged steeply in recent months. Their uptrends were reminiscent of the January 2018 altcoin mania, when BTC started to pullback and altcoins rallied.