Author: Cointelegraph By Yashu Gola

Wall Street jinx? Traders weight 'sell the news' potential after Bitcoin ETF launch

Wall Street jinx? Traders weight 'sell the news' potential after Bitcoin ETF launch

Wall Street opened its doors for the first Bitcoin (BTC) exchange-traded fund (ETF) on Oct. 19, with the listing of ProShares Bitcoin Strategy (BITO) on the New York Stock Exchange. The fund attracted more than $1 billion in trading volume on its first day, while BTC price rallied to a new record high of $67,000.But the spot gains did not stay for too long with BTC paring some gains going into the weekend.Bitcoin price corrected by almost 11% from its all-time high to reach levels below $60,000 on Saturday, raising fears about selloffs that typically come after the launch of major crypto derivatives products on Wall Street.Analysts call for wider BTC correctionNunya Bizniz, an independent market analyst on Twitter, recalled two of such major events: the listing of the first Bitcoin futures on the Chicago Mercantile Exchange (CME) and the debut of the crypto trading service Coinbase’s stock (COIN) on the Nasdaq stock exchange. Notable Wall Street listings coincided with spot Bitcoin price tops. Source: TradingViewNotably, CME launched its Bitcoin Futures product on Dec. 18, 2017, the date on which Bitcoin rallied towards its then-record high of around $20,000. But the launch also marked the beginning of one of Bitcoin’s longest bear cycles, which bottomed around $3,200 twelve months later.Similarly, the much-celebrated COIN’s debut on Wall Street on April 4, 2021, coincided with Bitcoin rallying to a new all-time high around $65,000 just ten days later. Nonetheless, the upside move met a bout of strong selloffs, causing BTC to correct to as low as $28,800.Nooo, God. No God, please no! No! No! Nooooooo! pic.twitter.com/ITKFBJqK6h— Nunya Bizniz (@Pladizow) October 22, 2021As a result, the recent ProShares Bitcoin ETF left Bizniz and many other analysts worried about the so-called “buy the rumor, sell the news” correction. For instance, analyst Lark Davis noted that he “wouldn’t be surprised” if the Bitcoin price crashes following the ProShares ETF launch just like it did after the CME Bitcoin Futures launch.#bitcoin CME futures – Announced October 31st 2017.- BTC rallies 224%- Launch on December 18th, the day BTC hit the 2017 market highWould not be shocked to see the ETF launch play out exactly like this. Epic buy the rumor, sell the news event pic.twitter.com/sKrmhdLxQv— Lark Davis (@TheCryptoLark) October 8, 2021

Also, Dan Morehead, CEO and co-chief investment officer at Pantera Capital, wrote in a newsletter earlier this month that “he might want to take some chips off the table” ahead of the Bitcoin ETF launch.Impressive debut for Bitcoin ETFDespite historic bearishness associated with high-profile Wall Street crypto listings, some analysts believe the Bitcoin ETF’s impressive debut would mean result in limited downside moves in the spot BTC market.Todd Rosenbluth, head of ETF and mutual fund research at CFRA, told the Financial Times that ProShare’s $1-billion debut is “a sign of the pent-up demand” among traditional finance companies looking to score a slice of the rising crypto industry.JPMorgan Chase added that retail traders accounted for only 12-15% of net inflows into BITO on the first two days of trading. Related: Bitcoin decides fate of $60K as weekly close keeps BTC traders on their toesThat pointed to a significant interest in Bitcoin ETFs among institutions, with cash-marginated Bitcoin Futures open interest rising by up to 79% month-to-date and CME basis going from negative in July to above 16% earlier this week.Bitcoin futures open interest across all exchanges. Source: ByBt.comNoelle Acheson, head of market insights at crypto trading firm Genesis, noted that Bitcoin’s perpetual futures rolling basis, a metric to gauge the demand for leverage, ticked up but was still only 13.08% compared to mid-April’s 34.6%. High leverage remains a common factor across recent spot BTC market corrections. In other words, the neutral funding rates at the moment suggest that the chance of a big pullback is relatively low.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

PayPal logs its largest Bitcoin volume since May BTC price crash

PayPal logs its largest Bitcoin volume since May BTC price crash

Bitcoin (BTC) trading volumes on global payment service provider PayPal reached $145.60 million on Wednesday, just as the benchmark crypto rallied toward its record high near $67,000.The latest spike in volumes came out to be the highest since the May 19 Bitcoin price crash from around $43,500 to as low as $30,000. On the day, some $304 million worth of BTCs changed hands, almost double the volumes logged on Wednesday.Bitcoin PayPal volumes. Source: ByBt.comNonetheless, in both instances, it was unclear if the volumes were due to the increase in purchasing during the Bitcoin price rally or because of selloffs near the newly-achieved highs. Whatever may be the reason, the PayPal readings reflected a rise in retail activity this Wednesday, further attested by a spike in internet queries for the keyword “Bitcoin.”Bitcoin interest on internet peaked on Wednesday. Source: Google TrendsRetail boom?Notably, PayPal allows users to start investing in Bitcoin by putting as little as $1. As a result, the payment service firm has emerged as a viable platform for retail investors, a move seen by the industry as a cue for wider crypto adoption.Interestingly, since PayPal’s push into the crypto sector, the sum count of unique addresses holding at least one dollar worth of BTC has surged from 26.83 million on Nov. 20, 2020, to 33.89 million at press time. Meanwhile, on Wednesday, the count was 34.12 million, an all-time high.BTC addresses with balance greater than $1. Source: CoinMetrics, Messari Alexander Vasiliev, co-founder/CCO of crypto payment service Mercuryo, saw PayPal’s foray into the crypto industry as a sign of retail boom. He expected Bitcoin to end the fourth and final quarter of 2021 in profits as everyday traders look for safety nets against a persistently rising inflation.Related: Bitcoin extends correction as Ethereum sees ‘picture perfect rejection’ at all-time highs”The increased buying pressure from PayPal users and its corresponding impact on the price of Bitcoin may stir a notable up-shoot this fourth quarter and as the year runs to an end,” Vasiliev told Cointelegraph, adding:”The company has millions of customers and a massive buy-up of BTC can effectively push Bitcoin to new highs […] With the ATH at $67k, we may see a worse case price hit of $80,000 by year-end and a best-case scenario of $100,000.”PayPal has around 392 million active users worldwide, but its crypto services are available only in the U.S. and the U.K. Meanwhile, the company is also eyeing an entry into the decentralized finance (DeFi) sector, signaling expansion outside the Bitcoin sector.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Solana gains over 26% in two days — $250 SOL price target next?

Solana gains over 26% in two days — $250 SOL price target next?

Solana (SOL) rallied higher on Oct. 21 as traders shifted focus from Bitcoin (BTC) to the most promising altcoins.Notably, the price of SOL increased by more than 11% to over $196 a token, the highest level since Sept.11. Combined with the gains recorded in the previous 36 hours, SOL was up by as much as 26%. SOL/USD daily price chart. Source: TradingViewCapital rotation in play?A new Bitcoin all-time high price on Wednesday triggered price rallies across the altcoin market as well.For instance, Ethereum’s native token Ether (ETH) posted better intraday profits Wednesday, closing 7.32% higher around $4,170. Today, the second-largest cryptocurrency rallied further to $4,374, just $10 shy of its record high at $4,384 on Coinbase.Conversely, Bitcoin corrected by more than 3.5% to below $65,000. As a result, the ETH/BTC exchange surged by more than 5% to reach an intraday high of 0.06289 BTC.Similarly, SOL’s performance against the U.S. dollar in the last two days came out better than Bitcoin. That prompted SOL/BTC to climb by more than 8% Thursday to hit 0.0026772 BTC, showing that traders rotated capital out of the Bitcoin market to enter the Solana market.SOL/BTC daily price chart. Source: TradingViewBullish pennant triggeredSolana’s latest price rally also appeared as a bullish breakout out of its multi-month consolidation channel.SOL started consolidating sideways inside a Triangle-like trading range after rallying by more than 200% in the August-September period. As a result, the formation of more than two higher lows and lower highs, coupled with a declining trade volume, raised the prospect of the channel being a Pennant.Related: Solana chart ‘bull flag’ eyes $250 despite SOL price down 40% since last weekSince Pennant is typically a trend continuation indicator, their formation on the Solana chart after a massive price rally raised its prospects of sending SOL prices higher. Thus, the breakout from Wednesday now eyes an extended run-up, with its target sitting at length equal to the size of the previous uptrend.SOL/USD daily price chart featuring Bullish Pennant. Source: TradingViewIn other words, the price target for Solana could be as high as $250 before the end of the month. However, a retest of the Pennant’s upper trendline as support would risk invalidating the bullish setup.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Ethereum nears its own all-time high as ETH price retakes $4K

Ethereum nears its own all-time high as ETH price retakes $4K

Ethereum’s native token Ether (ETH) is likely to hit its own record high in the short term as ETH has broken above $4,000, a crucial resistance level.Ethereum breaks $4,000, nearing new all-time highETH price rallied on Oct. 20 by over 5% to approach $4,100 on the Coinbase exchange for the first time since May 2021. The cryptocurrency’s run-up above $4,000 appeared primarily in the wake of Bitcoin (BTC) breaking above $65,000 to enter price discovery.According to data provided by Crypto Watch, the 30-day correlation between Bitcoin and Ether came out to be 0.81. That shows an 81% linear positive correlation between the two assets.ETH/USD versus BTC/USD daily price action. Source: TradingViewAs a result, Bitcoin’s ability to enter price discovery opens up similar prospects for Ether, which still trades a few hundred dollars below its current all-time high of $4,385.Related: This Ethereum price chart pattern suggests ETH can reach $6.5K in Q4″If BTC broke to new all-time highs, I don’t see why ETH wouldn’t,” commented Rekt Capital, an independent market analyst, adding:”Turn ~$4,000 into support, and ETH will levitate towards $4,400 for a break to new All-Time Highs.”ETH price ascending triangle setupETH’s latest pump boosted its year-to-date profits by almost 450%, compared to Bitcoin’s 130% returns in the same period. That also raised the possibility of Ether posting better gains than Bitcoin in the coming sessions, thereby achieving levels much higher than Rekt Capital’s $4,400-target.On Wednesday, ETH price broke above the Triangle’s upper trendline. Nevertheless, the move upside accompanied lower trading volume, which could see ETH retest the trendline as support in the near term.ETH/USD daily price chart featuring ascending triangle setup. Source: TradingView.comAs Cointelegraph reported earlier, ETH had been painting an Ascending Triangle structure with a $6,500 upside target.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin price eyes $65K breakout as BTC exchanges reserves fall to 2018-lows

Bitcoin’s (BTC) ongoing price rally above $64,000 has coincided with a substantial drop in its reserves across all exchanges.According to data provided by CryptoQuant — a South Korea-based blockchain analytics service — the amount of Bitcoin held in exchanges’ wallets dropped to as low as 2.379 million BTC earlier this week, the lowest in more than three years. Currently, the reserves are around 2.38 million BTC.Bitcoin’s all exchange reserve. Source: CryptoQuantCryptoQuant noted that the declining Bitcoin reserves showed the availability of fewer BTC tokens “for selling, altcoins purchasing, and margin trading.” Additionally, that also reflected traders’ intention to ‘HODL’ the cryptocurrency.Demand for Bitcoin grows among whales and fishesOn the other hand, the cryptocurrency’s demand appears to have been increasing across retail and institutional traders, with the number of wallets holding more than $100 and $10 million worth of BTC reaching their record high of 16.67 million and 10,510, respectively.Bitcoin addresses with balance greater than $100 and $10 million. Source: Messari, CoinMetricsOn-chain analyst Willy Woo published a report in August 2021 that discussed Bitcoin’s “supply shock” against its rising demand, concluding that the cryptocurrency’s per token worth should be at least $55,000. The “conservative” target remained lower than pseudonymous analyst PlanB’s $135,000 price projection by the end of 2021, based on its stock-to-flow model.$63K✅ https://t.co/tj6SSwSzKR— PlanB (@100trillionUSD) October 19, 2021Meanwhile, PlanB’s Bitcoin price prediction for November 2021 sits around $98,000, above $70,000, the most preferred strike target for the options expiring on the 26th of the same month, as shown in the chart below.BTC Options OI by strike price (expiry Nov 26, 2021). Source: ByBt.comBTC price macro fundamentalsBitcoin’s bullish on-chain fundamentals are likely to see further strength from Wall Street adoption. On Tuesday, ProShares became the first ETP firm to launch a Bitcoin Futures-based exchange-traded fund (ETF) on the New York Stock Exchange. In a milestone for Bitcoin investing opportunities, the listing opened a new road for institutional investors to gain exposure to BTC.For instance, Fundstrat Global Advisors Co-Founder Tom Lee said he anticipated the Bitcoin ETFs to attract at least $50 billion in the coming twelve months, reasserting his team’s year-end $100,000 price target for BTC.Technically, Bitcoin appeared to be heading towards its record high near $65,000, now acting as a resistance level.BTC/USD daily price chart featuring Fibonacci retracement levels. Source: TradingViewOn the flip side, Bitcoin’s relative strength index (RSI), a momentum indicator that analyzes an asset’s overbought/oversold signals, reported the cryptocurrency price as excessively high on the daily candle chart suggesting that a pullback is on the table. Related: Bitcoin sees its highest ever daily close as BTC/Euro pair hits all-time highsShould a correction happen, Bitcoin’s next support target could be near $57,500, which serves as the 78.6% Fib level of the Fibonacci retracement graph, drawn between the $65,000-swing high and the $30,000-swing low. The level also coincides with Bitcoin’s 20-day exponential moving average (the green wave in the chart above). The said level has earlier acted as strong support during Bitcoin’s uptrend. The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin

Cardano price paints 'death cross' with ADA at two-month lows vs. Bitcoin

Cardano (ADA) has formed a deadly “death cross” on its daily chart against Bitcoin (BTC) — a market signal that’s generally seen as a warning of more downside in the near term.The ominously-titled indicator kicks in when an asset’s short-term moving average closes below its long-term moving average. In doing so, it calls for technically-minded traders to increase their bearish positions in the market. ADA/BTC in troubleOn Tuesday, ADA’s 50-day exponential moving average (50-day EMA; the velvet wave) dropped below its 100-day exponential moving average (100-day EMA; the blue wave). That marked the sixth 50–100 EMA bearish crossover ever on the ADA/BTC daily chart, raising fears of further declines ahead.ADA/BTC daily price chart featuring Oct 2021 death cross. Source: TradingViewThat is partly due to ADA’s earlier price reactions to death crosses. For instance, in September 2020, the Cardano token’s price dropped almost 38.50% against Bitcoin after painting a 50–100 EMA bearish crossover.Similarly, a death cross pattern on May 12, 2019, subsequently saw a 62.50% price decline.ADA/BTC daily price chart featuring May 2019 death cross. Source: TradingViewNonetheless, the likelihood of an immediate selloff remains relatively low. That is mainly because ADA’s daily relative strength index (RSI), which alerted the token’s status against Bitcoin as oversold, is below 30. Traders typically treat an excessively sold RSI as their cue to enter the market.For instance, in May 2019, the death cross’s formation coincided with the RSI treading below 30. Later, the price bounced by over 30% to retest the 50-day and 100-day EMA waves as resistance, underscoring traders’ intention to buy oversold cryptos.Applying the same fractal to the current price action, one can expect the ADA/BTC rates to bounce back, especially as it drops to its two-month-low at 0.00003372 BTC runs down to retest a five-month-old support area defined by 0.00003192–0.00003075 BTC (the red bar in the first chart above).That inverse Cup and HandleA weakening ADA/BTC rate merely reflects Cardano’s clumsy performance against the U.S. dollar in recent sessions versus Bitcoin, which has surged massively against the greenback in the same timeframe.For instance, Bitcoin’s month-to-date gains against the dollar sit around 43%. In comparison, Cardano’s price has slid by over 6% during the same period. But further weakness could be expected, according to an inverse Cup and Handle pattern taking shape on its dollar-quoted charts. ADA/USDT daily price chart featuring inverse cup and handle pattern. Source: TradingViewIn detail, inverse Cup and Handle patterns appear when the price forms a large crescent shape followed by a modest upward retracement. Analysts consider them as bearish reversal indicators, for they tend to send the price down by as much as the maximum distance between the Cup’s top and its right-hand’s bottom level if the price breaks below the pattern’s support.Related: Buy the rumor… buy the news? BTC price passes $63K as US Bitcoin ETF launchesADA’s recent price action fits the inverse Cup and Handle description, with the price now looking to break below the structure’s resistance line near $1.97. As a result, the downside target price is the $0.772–$0.820 area if Cardano confirms a bearish breakout.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

All-time highs next? Bitcoin holds $62K as the Dollar index tumbles to 3-week lows

All-time highs next? Bitcoin holds $62K as the Dollar index tumbles to 3-week lows

The U.S. dollar index (DXY) could continue its slide in Q4, according to a classic technical setup known as Rising Wedge. The greenback’s bearish prospects may boost Bitcoin’s (BTC) price to new all-time highs as BTC holds above $62,000.DXY poised for another 1.75% dropRising Wedges are bearish reversal patterns that begin wide at the bottom but contract as the price increases. As a result, the trading range narrows, which makes the rally unconvincing. That typically prompts the price to break below the Wedge’s support line and later fall by as much as the maximum distance between the pattern’s trendlines.DXY has been forming a similar price structure since August 2021. Moreover, the index’s decline this week had it break below the Wedge’s support line, therefore triggering a bearish setup towards 92.416, down about 1.75% below the level of breakout (~93.98).DXY daily price chart featuring rising wedge setup. Source: TradingViewA week ago, DXY had reached a one-year high of 94.563, reaping benefits from stagflation fears and the Federal Reserve’s decision to unwind its $120 billion a month asset purchase program in November 2021, followed by interest rate increases next year.But the index dropped to its three-week low on Tuesday, underscoring that money markets have priced in the Fed’s tapering decision. Instead, their focus has shifted towards policy normalization elsewhere, including the United Kingdom, where analysts have forecasted rate hikes worth 35 basis points by the end of this year.Bitcoin rallies on ETF FOMOBitcoin price found support from the weaker dollar this week, as well as optimism about the debut of the first exchange-traded fund (ETF) tied to BTC Futures on the New York Stock Exchange.BTC/USD rallied by over 40% month-to-date to hit a five-month high of $62,987 Tuesday. A minor correction ensued, but Bitcoin held $62,000 as its interims support against a weakening dollar sentiment. BTC/USD daily price chart featuring ascending channel pattern. Source: TradingViewTechnically, Bitcoin reached the bullish exhaustion level of its prevailing ascending channel range. With its relative strength index (RSI) also overbought with a reading above 70 on the daily timeframe, the cryptocurrency could undergo an interim price correction with a short-term support target near $60,000.But long-term, multiple analysts anticipate the Bitcoin price to hit $100,000. Tom Lee, the co-founder of Fundstrat Global Advisors, said in a note Monday that ETFs based on Bitcoin Futures would together attract more than $50 billion in inflows in the first year, adding that BTC could conceivably rise to $168,000 in response.Related: BTC price is up 50% since China ‘selflessly’ banned Bitcoin miningJurrien Timmer, director of global macro at Fidelity Investments, noted that Bitcoin would become a six-figure asset by 2023, citing Metcalfe’s law, which measures a network’s value based on its growth rate.”Other technology innovations, and even, like, a stock like Apple — not that I’m a security analyst — has gone through that same process, where its sales go up 38-fold over 10, 20 years, and its market value goes up by 900-fold,” Timmer told Yahoo Finance, adding:”So it’s an exponential increase. And based on those metrics, by 2023, my models show $100,000.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

This Ethereum price chart pattern suggests ETH can reach $6.5K in Q4

This Ethereum price chart pattern suggests ETH can reach $6.5K in Q4

Ethereum’s native token Ether (ETH) has rallied by more than 415% this year to over $3,800, and two major bullish patterns developing on its charts highlight the scope for another upside move, ultimately toward the $6,200-$6,500 price range.ETH price eyes $4K resistance breakoutThe first decisive break above the psychological $4,000-mark, which serves as a resistance trendline to five-month-olds ascending triangle and a cup and handle pattern, could trigger a textbook price rally in the coming sessions. In detail, the $6,250-level appears as the profit target for the Ascending Triangle pattern, calculated by measuring the widest distance between its horizontal and rising trendlines and adding the output to the potential breakout level around $4,000. ETH/USD daily price chart featuring Ascending Triangle (black) and Cup & Handle (blue) pattern. Source: TradingView Thus, the price boom reflects moves equivalent by roughly 64%.At the same time, the Cup and Handle pattern, which has a slightly lesser success rate than Ascending Triangle, shows a potential run-up toward $6,550 in the coming sessions, up by 56% from current levels. Its profit target emerges by measuring the distance between the Cup’s right peak and its bottom and adding the outcome to the potential breakout level around $4,000—the same as Ascending Triangle.One of the primary catalysts that support the two bullish indicators is trading volume, which has been falling across the formation of the said patterns. That suggests a weak consolidation sentiment among traders. Meanwhile, the relative strength index (RSI) below the overbought threshold of 70 also shows adequate room for a bull run.The Bitcoin correlation effectThe optimistic outlook for ETH appears in the wake of a market-wide upside boom led by Bitcoin’s (BTC) 29% month-to-date price rally. According to CryptoWatch, the 30-day correlation coefficient between Bitcoin and Ethereum sits near 0.89, meaning that the success rate of the two assets moving in sync is 89%.Ecoinometrics, a crypto-focused newsletter service, noted the positive correlation as it highlighted the Ether price’s reaction to Bitcoin “halvings,” a pre-programmed event that slashes the BTC’s issuance rate by half every four years, against its 21 million supply cap.The portal studied Bitcoin and Ether’s price reactions to the previous two halvings and applied the dataset to predict their tops after the third halving, which took place on May 11, 2020. As a result, it anticipated BTC to rise 29.5x times to hit $253,800 by late November 2021. Bitcoin vs. Ethereum — Post BTC halving growth trajectory. Source: EcoinometricsSimilarly, Ecoinometrics highlighted $22,300 as Ether’s price target in the same period, based on its 120x price rally following the second Bitcoin halving.ETH supply crunch continuesMore bullish cues for Ethereum appeared in the form of its ongoing supply squeeze.Related: Ethereum price hits $3,800, boosting bulls’ control in Friday’s ETH options expiryNotably, the total number of Ether deposited into the Ethereum 2.0 smart contract reached an all-time high of around 7.98 million ETH on Monday. These tokens remain locked/untransferable for one year or more.Ethereum total value in ETH 2.0 deposit contract. Source: GlassnodeMeanwhile, the total amount of Ether held across all exchanges continued to stay around its record low levels, with CryptoQuant reporting 18.187 million ETH in reserves on Monday compared to 23.323 million ETH an year ago.Ethereum reserves across all exchanges. Source: CryptoQuantMoreover, crypto data tracker Santiment reported a rise in new Ether addresses last week while the number of non-zero Ether wallets reached a record high of 64.5 million.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Shiba Inu eyes 'much wow' 90% breakout as SHIB price paints a textbook bull pattern

Shiba Inu eyes 'much wow' 90% breakout as SHIB price paints a textbook bull pattern

The Shiba Inu (SHIB) market is in a very strong bull market in 2021, and one major continuation pattern on its longer timeframe charts highlights the scope for an additional 90% upside move ahead.In detail, SHIB rose over 1,250% year-to-date (YTD) to establish the yearly high at $0.00003528 (data from Binance) on Oct. 8. Later, the cryptocurrency cracked under the profit-taking sentiment, leading to a 41.50% price correction to $0.00002060.But bulls started accumulating SHIB near the said low level. A rebound ensued and the price rallied over 55% to $0.00003200, where it met another round of selloffs. Overall, the SHIB price kept forming lower highs and higher lows in the next sessions, forming a Triangle structure that appeared like a Bull Pennant.Analysts treat Pennants as bullish continuation patterns, i.e., their formation, coupled with declining trade volumes, tends to send prices in the direction of their previous trend — by as much as the height of the previous price rally, also known as Flagpole. So it appears, SHIB has been forming the same structure.SHIB/USDT 12-hour price chart featuring Bull Pennant setup. Source: TradingViewThe SHIB Flagpole’s height comes to be around $0.00002450. Therefore, considering the cryptocurrency would pursue a breakout to the upside from the Bull Pennant’s apex (the level at which its upper and lower trendlines converge), its next target would be at around $0.00005200, roughly 90% higher.Yet, Pennants are notorious for being the worst reliable technical indicators, at least according to a study conducted by Samurai Trading Academy’s Cody Hind in 2020, based on his assessment of 10 years of market data and over 200,000 trading structures. He found that Bull Pennants successfully reached their price targets in 54.87% of cases.Macro fundamentalsThe SHIB price almost doubled in October in parts due to Tesla CEO Elon Musk’s cryptic endorsement of the Shiba Inu project and amid reports of whale buying activity and the rise of its decentralized exchange ShibaSwap.Soecifically, Musk posted the picture of his Shiba Inu puppy on Oct. 4. The billionaire entrepreneur’s tweet coincided with the SHIB price rallying by more than 330% in the next four days, reminiscent of how he influenced the prices of Dogecoin (DOGE) earlier this year.  Floki Frunkpuppy pic.twitter.com/xAr8T0Jfdf— Elon Musk (@elonmusk) October 4, 2021The jump also took cues from reports of whale buying activity in the Shiba Inu market. For the uninitiated, Yahoo Finance highlighted in his Oct. 5 report that an unknown entity purchased 6.2 trillion SHIB for circa $44 million in late September.Related: Shiba Inu rebounds 40% despite major selling by SHIB whalesMeanwhile, Shiba Inu’s namesake decentralized exchange ShibaSwap detected a surge in the amount held by its liquidity pools. As of Monday, the total value locked inside the ShibaSwap contracts was $411.42 million versus $253.41 million at the beginning of this month, as per data provided by DeFi Llama.ShibaSwap TVL as of Oct 18, 2021. Source: Defi LlamaAt its prime, in July 2021, ShibaSwap was managing $1.76 billion worth of funds via its liquidity pool.Ishan Arora, a hedge fund manager associated with Tykhe Block Ventures, told Yahoo Finance that Shiba Inu emerged as a product of an ongoing craze for meme cryptocurrencies, adding that most people buy these tokens by merely following some influencers’ advice.Arora warned investors about the risks of putting money into such one-hit wonders, but mentioned Dogecoin for its ability to return incredible profits earlier this year.”Early Doge investors last year did quite well, so it is not as black and white as most want it to be.”Meanwhile, crypto data tracking service Santiment detected an increase in Shiba Inu whale transactions over $100,000 in the past 24 hours, noting that their occurrence is typically bullish for SHIB.Shiba Inu whale transactions exceeding $100K. Source: Santiment”When these transactions come in bunches, price rises generally follow,” the platform wrote in a tweet published Monday.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Next Bitcoin price crash will be 'shallower' than 80%, says Pantera Capital CEO

Next Bitcoin price crash will be 'shallower' than 80%, says Pantera Capital CEO

Bitcoin (BTC) market’s tendency to crash by over 80% after logging strong bull runs might come to an end.That is according to a new report published by California-based hedge fund Pantera Capital. In detail, the report notes that the recent periods of BTC price drops have been less severe than in the past.For instance, in 2013-15 and 2017-18, Bitcoin crashed by as much as 83% after topping out near $1,111 and $20,089, respectively. Similarly, the cryptocurrency’s bull run in 2019-20 and 2020-2021 led to massive price corrections. Nevertheless, the scales of their retracements afterward were -61% and -54%, respectively.Bitcoin bull and bear markets across the history. Source: Pantera CapitalDan Morehead, the chief executive at Pantera Capital, highlighted the consistent drop in selling sentiment after the 2013-15 and 2017-18 bearish cycles, noting that future bear markets would be “shallower.” He explained:”I long advocated that as the market becomes broader, more valuable, and more institutional the amplitude of prices swings will moderate.”The statements appeared as Bitcoin renewed its bullish strength to retest its current record high near $65,000. BTC/USD rallied above $60,000 for the first time since early May as the U.S. Securities and Exchange Commission approved the first Bitcoin exchange-traded fund (ETF) after years of rejecting similar investment products. The approval of ProShare’s Bitcoin Strategy ETF raised expectations that it would make it easier for institutional investors to gain exposure in the BTC market. That also helped Bitcoin wipe almost all the losses incurred during the April-July bear cycle as the BTC price doubled to reclaim levels above $60,000.Bitcoin price cycles throughout the history. Source: Pantera CapitalBTC undervalued?It’s becoming increasingly common to hear $100,000 valuations as Bitcoin grows to become a mainstream financial asset following its first ETF approval.Related: $200K BTC price ‘programmed’ as Bitcoin heads toward 2nd RSI peakMorehead cited the popular stock-to-flow model—which studies the impact of Bitcoin’s “halving” events on prices—to rule out a similar bullish outlook for the cryptocurrency. He noted that the first halving reduced the new Bitcoin issuance rate by 15% of the total outstanding supply (around 10.5 million BTC), leading to a 9,212% BTC price rally.Reduction in Bitcoin supply after each halving. Source: Pantera CapitalSimilarly, the second halving decreased the supply of new Bitcoin by one-third of the total outstanding Bitcoins (~15.75 million BTC). It led to a 2,910% bull run, almost a third of the previous one, thus showing a bit less impact on the Bitcoin price.Post-Bitcoin halving rallies. Source: Pantera CapitalThe last halving on record was on May 11, 2020, which further reduced the amount of new BTC against the circulating supply with Bitcoin rallying by over 720% since. “The flipside of is we probably won’t see any more of the 100x-in-a-year rallies either,” said Morehead, adding:The cycles shown logarithmically make today’s level look cheap to me.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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