Xdouble.io Review 5 Reasons Why This Bitcoin Doubler is Risky

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5 Reasons Why Bitcoin Price is Crashing Right Now

Bitcoin price first dipped a toe under the $9,000 mark, then went on to erase profit positions gained since the dramatic rally at the end of October. The slide took BTC to $8,780.84 as of 15:25 GMT on Friday, with plenty of leeways to drop as the weekend hovered with lower volumes. Here are five reasons why this happened.

Bitcoin Whales Calling Quits

Crypto exchanges saw outflows in the past days, with no new serious tranches of either BTC or Tether (USDT). The recent dump, based on order books, seems to be a capitulation and a selling pressure, to realize partial profits from the recent bitcoin price rally. Previously, whale watching bots noted a series of large-scale transactions of coins to exchanges, lying in wait for potential selling.

#Bitcoin order books look out of balance now to the bearish side. Don’t forget, momentum can snap back quickly. pic.twitter.com/LKeNcssl34

Order books reveal a pattern of selling pressures coming in from large-scale BTC traders. At this point, the selling momentum may see its tide turned at any moment, but for the time being, Bitcoin price seems solidly pressured at least to the $8,800 level.

On-Chain Metrics Point to Sluggish BTC Usage

Bitcoin transactions became almost languid in the past week, as price stagnated. Low activity suggests that most coins lay dormant, and there was no possibility for explosive price action. On-chain Bitcoin transactions and their value can indicate preparation for serious trading volumes. This week’s on-chain BTC metrics indicate that the benchmark crypto wasn’t in a mood to galvanize.

Core #Bitcoin on-chain metrics are at monthly lows (adjusted transaction volume, exchange inflows, active addresses).

Healthier levels are required to set the stage for the next bull market.https://t.co/Otgo2bPILp pic.twitter.com/9Q9zkWCRxP

Bitcoin is one such cryptocurrency, which has a strong correlation between price and on-chain transactions, and the current metrics are not matching the expectations for a bull market. This, as with others, can be altered at any moment. But the buildup of slow coin movements ended in Friday’s sell-off.

Bakkt Action Picking Up

The Bakkt Bitcoin futures exchange saw a piling up of activity in the past day. Trading accelerated, with numbers approaching the 1,000 BTC record mark within 24 hours. This is still small compared to the overall crypto market volumes, but the Bakkt’s price discovery process has the potential to affect ongoing BTC sentiment.

∙ Today’s volume so far: 970 BTC ($8,419,600)
∙ Last traded price: $8,680
∙ Trading day progress: 34%
∙ Current daily Bakktarget™: 2027 BTC ($17,594,962)

Bitcoin Price Stepping into Dangerous Territory

Bitcoin prices moved into somewhat dangerous territory, charting a “death cross” of moving averages. This situation further returned traders to bearish attitudes.

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Don’t know why nobody is talking about it, but #Bitcoin death-crossed on the daily, the last time it happened was around March 2020. After the death-cross we had a significant drop in price. After the golden cross in April 2020 a significant price jump. pic.twitter.com/ImUF6L5F1Z

At this point, too much-concerted effort would be needed to bring BTC out of that zone. In 2020, the effects of the “golden cross” and the “death cross” were highly visible.

Weak Hands Leaving the Market

The other factors affecting Bitcoin prices were more indirect. Mining has slowed down, causing the first fall in difficulty since the summer price rally. Chinese traders are still highly active with BTC trades, but there are also signs for looking at altcoins for higher returns.

The recent downward movement of stock indexes on the US markets may have added to some of the panic-selling. Bitcoin exchanges still see enough retail interest to have “weak hands” on the markets, selling in panic as the recent rally unraveled faster than expected. The bullish promise of Bitcoin price reaching $16,000 “soonish” may have caused an unpleasant surprise as the prices crashed so easily under $9,000.

Obvious retest after a 40% pump. Waiting for a retest of 8400. $BTC needs to cool down. Let’s remove all weak hands before the pump. #crypto #cryptotrading pic.twitter.com/M0JavAaM7N

Bitcoin price is set on a multitude of exchanges, in contrast with earlier periods when a handful of markets took the bulk of volumes. Currently, USDT still drives BTC, but through a wider distribution on a series of innovative crypto-to-crypto exchanges. Bitcoin remains highly risky and unpredictable, and the current slump is no guarantee for continued downward action.

What do you think about Friday’s BTC slump? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter: @gaborgurbacs, @glassnode, @BakktBot, @BitcoinCatz, @CryptoKong4

5 Reasons Why Bitcoin Is Crashing Right Now

1. Market Manipulation

BTC market manipulation has been a highly contentious area that always arises when questioning Bitcoin’s price activity. Whether traders choose to accept it or not, evidence supplied by a University of Texas finance professor recently, along with investigations by the United States Justice Department the Commodity Futures Trading Commission, are beginning to prove that this ‘conspiracy theory’ actually exists in the market.

If you looked at Bitcoin’s chart this morning you would have seen that BTC was actually heading towards a bullish breakout from an ascending triangle pattern. Admittedly technical analysis is not a definitive tool for establishing price movements, but it does seem strange that BTC was able to climb out from the Bithumb hacked unscathed yesterday, show rising support through last night and then suddenly breakout bearish for no obvious reason.

Information presented in ‘Uncovering The Real Cartel In Bitcoin’ outlines the shady relationship between Tether and Bitfinex using evidence from the ‘Paradise Papers’, showing that USDT has been used to artificially inflate not just BTC markets, but other alt-coin trading pairs as well. Professor John Griffiths of the aforementioned University of Texas also wrote an extensive 66 page thesis recently highlighting this same suspicion. Though Tether has recently passed an independent audit which confirms that Tether has sufficient US dollar supplies to back each issued USDT token, some belief that this could have been achieved in a number of ways; including borrowing money to temporarily ‘window dress’ their bank accounts to artificially back their issued token supply at the time of the audit.

2. Market Supply Outweighs Current Demand

In a twitter post earlier today, Ronnie Moas touched on this issue in the current crypto market, that after the over-inflated Q4 surge last year crypto investors are beginning to lose faith that those figures will not be reached again.

“Supply hanging over the market like a dark cloud. Will be a challenge to blow that out”

Charlie Lee also commented on this lack of faith in a CNBC Fast Money interview yesterday, saying that the prices of Bitcoin , Litecoin and other alt-coins are ‘disjointed’ from the new developments that each project is rolling out this year. This is true, especially when you look at Tron and Vechain at the moment. Both projects have, or are about to, launch their mainnets and have both made significant partnerships with industry leaders, yet neither have experienced any notable rise in value. Instead, the market remains fixated on selling off and are afraid to HODL or invest against the falling market.

3. Market Maturity

Another reason to explain why Bitcoin is falling right now is market maturity. Despite Bitcoin being created back in 2009, the crypto market itself didn’t really start to gain traction until 2020/2020 when Ethereum , Dash and other early coin projects were starting to emerge from the wake of Bitcoin’s innovation. When crypto investing exploded late last year, the market was still in its infancy and largely speculative. Even now many projects are only just starting to release minimal viable products (MVPs), testnets, platforms etc off the back of their ICOs.

The premature surge of money in Q4 last year was never going to last for long and now we’re experiencing a harsh correction back to where the market should really be at this time in its development.

4. Mainstream Media FUD

Another crippling factor that always holds Bitcoin’s price back is bad press and the torrent of misguided information that is passed down to the general public.

As the traditional financial system comes under threat, mainstream media has played its role in misrepresenting the industry to potential new investors in this space, by downplaying its technological utility and over emphasizing bearish market movements. According to German Philosopher Arthur Schopenhauer though, all truths travel through 3 stages of acceptance,

(1) Ridicule
(2) Violently Opposed
(3) Accepted As Self Evident

The crypto market here is no different. Right now the mainstream does not recognise the potential in this industry and is choosing to ignore it’s inevitable advance. Eventually however, it will become as widely accepted as mobile phones and the internet which also had to pass through those same 3 stages.

5. National Regulatory Intervention

Regulatory opposition was always going to fight against the crypto market because it is an unregulated and decentralized financial system born into a centralized, heavily regulated world. In some ways regulatory intervention has proved beneficial in this space, like the self-regulated Japanese exchange association which aims at improving user security across exchanges, to better the nation’s crypto ecosystem.

In the US however, government institutions such as the Securities and Exchange Commission (SEC) and the New York State Department of Financial Services (NYDFS) have both smothered digital asset trading in regulations; imposing licensing and registration requirements on any crypto exchange or broker company wishing to operate in the US. This has led to a lot companies moving overseas and has restricted many US citizens from participating freely in the market.

Five Reasons Why Bitcoin Price is Crashing Right Now

Bitcoin price first dipped a toe under the $9,000 mark, then went on to erase profit positions gained since the dramatic rally at the end of October. The slide took BTC to $8,780.84 as of 15:25 GMT on Friday, with plenty of leeways to drop as the weekend hovered with lower volumes. Here are five reasons why this happened.

Bitcoin Whales Calling Quits

Crypto exchanges saw outflows in the past days, with no new serious tranches of either BTC or Tether (USDT). The recent dump, based on order books, seems to be a capitulation and a selling pressure, to realize partial profits from the recent bitcoin price rally. Previously, whale watching bots noted a series of large-scale transactions of coins to exchanges, lying in wait for potential selling.

#Bitcoin order books look out of balance now to the bearish side. Don’t forget, momentum can snap back quickly. pic.twitter.com/LKeNcssl34

Order books reveal a pattern of selling pressures coming in from large-scale BTC traders. At this point, the selling momentum may see its tide turned at any moment, but for the time being, Bitcoin price seems solidly pressured at least to the $8,800 level.

On-Chain Metrics Point to Sluggish BTC Usage

Bitcoin transactions became almost languid in the past week, as price stagnated. Low activity suggests that most coins lay dormant, and there was no possibility for explosive price action. On-chain Bitcoin transactions and their value can indicate preparation for serious trading volumes. This week’s on-chain BTC metrics indicate that the benchmark crypto wasn’t in a mood to galvanize.

Core #Bitcoin on-chain metrics are at monthly lows (adjusted transaction volume, exchange inflows, active addresses).

Healthier levels are required to set the stage for the next bull market.https://t.co/Otgo2bPILp pic.twitter.com/9Q9zkWCRxP

Bitcoin is one such cryptocurrency, which has a strong correlation between price and on-chain transactions, and the current metrics are not matching the expectations for a bull market. This, as with others, can be altered at any moment. But the buildup of slow coin movements ended in Friday’s sell-off.

Bakkt Action Picking Up

The Bakkt Bitcoin futures exchange saw a piling up of activity in the past day. Trading accelerated, with numbers approaching the 1,000 BTC record mark within 24 hours. This is still small compared to the overall crypto market volumes, but the Bakkt’s price discovery process has the potential to affect ongoing BTC sentiment.

∙ Today’s volume so far: 970 BTC ($8,419,600)
∙ Last traded price: $8,680
∙ Trading day progress: 34%
∙ Current daily Bakktarget™: 2027 BTC ($17,594,962)

Bitcoin Price Stepping into Dangerous Territory

Bitcoin prices moved into somewhat dangerous territory, charting a “death cross” of moving averages. This situation further returned traders to bearish attitudes.

Don’t know why nobody is talking about it, but #Bitcoin death-crossed on the daily, the last time it happened was around March 2020. After the death-cross we had a significant drop in price. After the golden cross in April 2020 a significant price jump. pic.twitter.com/ImUF6L5F1Z

At this point, too much-concerted effort would be needed to bring BTC out of that zone. In 2020, the effects of the “golden cross” and the “death cross” were highly visible.

Weak Hands Leaving the Market

The other factors affecting Bitcoin prices were more indirect. Mining has slowed down, causing the first fall in difficulty since the summer price rally. Chinese traders are still highly active with BTC trades, but there are also signs for looking at altcoins for higher returns.

The recent downward movement of stock indexes on the US markets may have added to some of the panic-selling. Bitcoin exchanges still see enough retail interest to have “weak hands” on the markets, selling in panic as the recent rally unraveled faster than expected. The bullish promise of Bitcoin price reaching $16,000 “soonish” may have caused an unpleasant surprise as the prices crashed so easily under $9,000.

Obvious retest after a 40% pump. Waiting for a retest of 8400. $BTC needs to cool down. Let’s remove all weak hands before the pump. #crypto #cryptotrading pic.twitter.com/M0JavAaM7N

Bitcoin price is set on a multitude of exchanges, in contrast with earlier periods when a handful of markets took the bulk of volumes. Currently, USDT still drives BTC, but through a wider distribution on a series of innovative crypto-to-crypto exchanges. Bitcoin remains highly risky and unpredictable, and the current slump is no guarantee for continued downward action.

What do you think about Friday’s BTC slump? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter: @gaborgurbacs, @glassnode, @BakktBot, @BitcoinCatz, @CryptoKong4

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