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Bitcoin’s Market Structure Indicates a Massive Move Higher is on the Horizon

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  • Bitcoin and the entire crypto market are once again consolidating following the latest push higher, with bulls being unable to firmly push BTC over any key levels
  • The cryptocurrency is incurring mounting technical strength, however, which comes as it stabilizes around $11,500
  • Where the market trends next will likely depend on the cryptocurrency’s continued reaction to its $11,600 resistance
  • If broken above, this level may ignite a massive BTC rally that sends it past $12,000
  • One analyst believes that this is a strong possibility, and is now looking for its market cap to reach $600 billion in the near-term

It has been a boring past couple of days for Bitcoin and the rest of the crypto market, as the benchmark digital asset has been ranging around $11,500 as bulls try to build enough strength to break $11,600.

This has been a historically important level, and the resistance here has proven to be somewhat significant.

While sharing his thoughts on where he expects Bitcoin to trend next, one analyst set his sights on the cryptocurrency’s market cap.

He believes that a move up to $600 billion could take place in the near-term.

Bitcoin Stabilizes Around $11,500 as Bulls Target Move Past $11,600 

At the time of writing, Bitcoin is trading down marginally at its current price of $11,460. This is around where it has been trading throughout the past few days.

The cryptocurrency’s ongoing consolidation phase comes as it rapidly approaches its $11,600 resistance, which has long been a level being closely watched by analysts.

It has yet to break above this level for an extended period of time throughout the course of this recent move higher and has primarily been consolidating around its current price.

If bulls cannot step up and push BTC any further, this consolidation phase could revert into the downtrend that it was previously facing.

Analyst: BTC’s Market Cap is Poised to Reach $600 Billion

Despite the recent turbulence seen by Bitcoin’s price action, coupled with its slowing upwards momentum, one analyst believes that a $600 billion market cap is in the cards in the near-term.

He said this while pointing to the below chart, noting that the crypto’s market structure – in terms of market capitalization – has been shaping up nicely.

“Bitcoin: Very healthy construction going on here. A higher-high made after a higher low was created. Just another range-bound period before breakout above $400 billion. The next target zones are $500 and $600 after that. But very healthy upwards trend,” he said.

Image Courtesy of Crypto Michaël. Chart via TradingView.

Unless Bitcoin reverses its strong upwards momentum, it does appear that further upside could be right around the corner.

Featured image from Unsplash.
Charts from TradingView.





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PayPal Forays into Crypto Market as Bitcoin Price Explodes Past $12,400

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  • Bitcoin is now trading at the highest price seen in well over a year, with bulls aiming for $13,000 as its strong uptrend gains momentum
  • Today, news regarding PayPal’s foray into the crypto market provided the benchmark cryptocurrency with a serious boost
  • Its price surged all the way up to highs of nearly $12,500 before meeting some resistance, but it does appear to be poised for further gains
  • This recent uptrend has come about in the absence of any immense bullishness in the stock market, with BTC incurring independent momentum
  • Where it trends next will likely depend on how long it can stay above $12,000

After struggling to gain momentum throughout the past few weeks, Bitcoin has now entered a firm bull trend as its price rockets up towards fresh yearly highs.

The cryptocurrency is currently trading at the highest price seen since earlier this year, with bulls appearing to be in firm control of its short-term trend.

This trend is now leading BTC up towards $13,000 – a level that has not been breached since the June of 2019 rally that sent the crypto towards $14,000.

This time is different than before, as the benchmark cryptocurrency is being driven by immense underlying strength.

PayPal’s decision to provide its users with access to buying, selling, and storing cryptocurrency is one catalyst behind today’s move.

Bitcoin Rockets Towards $13,000 as Buying Pressure Mounts

At the time of writing, Bitcoin is trading up just under 4% at its current price of $12,380. This marks a massive surge from its recent lows of $10,200 set just a few weeks ago.

The cryptocurrency is facing some resistance at $12,500, it seems, as sellers are aggressively offloading their holdings each time its price reaches this level.

This rally will likely persist in the near-term if bulls continue holding BTC above $12,000.

PayPal Sparks a New Sense of FOMO Amongst Investors

The latest leg higher came about following reports of PayPal entering the crypto market, allowing users to buy, sell, and store Bitcoin and other digital assets like Ethereum.

As Reuters reported earlier today:

“PayPal joins the cryptocurrency market, allowing customers to buy, sell and hold virtual coins including bitcoin using the company’s online wallets.”

This is the latest major name in FinTech to involve itself with the nascent market, as Square recently made headlines with its decision to purchase $50 million worth of Bitcoin to be held on its balance sheets as a reserve asset.

Featured image from Unsplash.
Pricing data for BTCUSD from TradingView.





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Study finds CME drives Bitcoin price, but it excludes stablecoin volumes

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On Oct. 14, Wilshire Phoenix investment firm released its Efficient Price Discovery report, which detailed how CME Bitcoin (BTC) futures impact Bitcoin price discovery.

The firm concluded that “CME Bitcoin futures contribute more to price discovery than its related spot markets.” And the researchers also suggested that:

“CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation.”

Wilshire’s analysis correctly states that price discovery in traditional markets is a contested topic. The report also adds that studies on price formation often find that the futures markets lead most of the time, but this doesn’t mean their conclusions about CME Bitcoin futures are absolute.

According to the report, CME Group, the leading derivatives venue, trades $5.15 trillion per day across its multiple markets. According to Nasdaq data, this number compares to the $430 billion in daily volume seen in the U.S. stock market.

This data shows that the trend of derivatives volumes surpassing spot exchanges by tenfold is the norm rather than an exception.