Loading data …
Loading data …
BTC price could drop to $14,000 before another upside momentum blasts prices past the $20,000 mark
Earlier this week, Bitcoin was on the verge of hitting $20,000. However, instead of testing the all-time high level, BTC nosedived to lows of $16,220.
An attempt to post an immediate rebound hit a wall around $18,900 and will fade further if the rejection continues. At the time of writing, today’s action has seen BTC/USD touch lows of $16,603 although bulls are testing resistance near $17,000.
The likely drivers of the correction include a sell-off by whales when BTC/USD broke above $19,000 and then the massive liquidations witnessed in the futures market over the past three days.
Although optimistic of BTC/USD at $20K this year, CryptoQuant CEO Ki Young Ju notes that the rally to the historical peak will come after several minor corrections.
The analyst’s short term outlook for Bitcoin price borrows from the ‘All Exchanges Inflow Mean’ indicator. According to him, the metric indicates selling pressure remains high to mean further corrections or sideways trading.
“More $BTC corrections might come. All Exchanges Inflow Mean (144-block MA) remains still high. In my opinion, we’ll face some corrections/sideways this week and it will break $20k by December this year. I’ll stack some sats a few days after”, Ki noted.
Another analyst charting the potential correction to $14K is the pseudonymous trader CryptoKea.
According to the trader, Bitcoin’s rally to $19,400 and subsequent rejection is because the price had reached “the top of the bullish channel [which] has done an excellent job in acting as short-term resistance, just as it did at this stage in prior bull markets”.
As can be seen in the chart below, Bitcoin will be in the bullish territory if it crosses the $18,500 level. A drop to the $12,000 area will put it into a bearish zone.
Bitcoin bullish/bearish zone chart. Source: CryptoKea on Twitter
Lookintobitcoin.com creator Philip Swift says the Golden Ratio Multiplier indicator also points to the correction. As per the indicator, a rejection at the 350 DMAx2 curve puts BTC’s main support levels on the downside at $16,000 and $13,000.
Bitcoin price chart with the Golden Ratio Multiplier indicator. Source: Philip Swift
Entrepreneur and crypto trader Bob Loukas says that trading is “never a way street”.
“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. Then 2 months later a sharp rally, new ATH’s, and double boom 34% decline”.
The sell-off being witnessed in the Bitcoin market is taking place on the back of Coinbase suffering yet another systems outage while OKEx has registered record withdrawals on the resumption of the service.
Bitcoin price is now trading at roughly 15% less than it was just days ago, falling short of setting a new all-time high by just a few hundred dollars.
A new record was so close bulls could taste the victory, but the achievement was blocked by massive whales who reloaded centralized crypto exchanges with a flood of BTC to be dumped, stopping the rally in its tracks. Here’s what this could mean for the crypto market over the next few weeks.
Bitcoin was moments away from making history, setting a new all-time high in price and breaking the 2017 crypto bubble record. New BTC addresses are at record highs, as is hash rate, and even the cryptocurrency’s market cap. But so far, price couldn’t yet follow.
A new all-time high in Bitcoin price could create a storm of FOMO, which whales potentially sought to stop just before the record was broken.
According to on-chain analytics, whales began moving BTC en masse to centralized crypto exchanges like Coinbase in the days and hours leading up to the near-recording breaking finish to the recent rally.
This drop started as soon as whales began to deposit BTC to exchanges. More than 93 thousand Bitcoin’s were deposited into centralized exchanges. pic.twitter.com/ntq1yIlDeV
— intotheblock (@intotheblock) November 27, 2020
Sell walls on Coinbase were reported, and whale watching on various crypto quant platforms were giving signs of their activity just before the selloff began.
Whales moved and sold as much as 93 BTC since the peak at $19,500, or roughly $1.5 billion in profit taken even at an average sell price of $17,000 per <a class="wpg-linkify wpg-tooltip" title="
” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin.
Whales got in the way of the crypto asset setting a new all-time high price record | Source: BTCUSD on TradingView.com
Where the rally stopped is notable for narrative-sake. Double-tops are notorious for causing unbreakable resistance, and the current price action is a candidate for such a top formation.
It could be enough to cause a bearish wave of doubt in the cryptocurrency, just as some negative news begins trickling into the market, in terms of self-custody regulation in the US.
The double-top narrative caused by whales taking profit during an extremely profitable year could provide the sentiment necessary for the final shakeout before the cryptocurrency goes full parabolic and races to its next peak.
All that starts with a break of the previous all-time high. Will whales continue to block the new record, or will the crypto asset’s unstoppable bullish momentum leave whales underwater?
Featured image from Deposit Photos, Charts from TradingView.com
Bitcoin (BTC) Price Prediction – November 27
Today, the Bitcoin price loses traction after opening at $17,155; losses likely to continue in the near term.
Resistance Levels: $19,000, $19,200, $19,400
Support Levels: $15,400, $15,200, $15,000
Looking at the daily chart, one can easily conclude that BTC/USD is heading back to the red zone as the coin is posting minor losses of 0.56% on the day after commencing the trading at $17,155. More so, the coin has an intraday high of $17,181; although the world’s largest crypto touches the support level of $16,989 before going back to where it is currently trading at $17,058.
The Bitcoin price is seen plunging below $17,000 one more time, marking $16,989 as the current daily low at the moment. Does this mean that Bitcoin (BTC) is finally leaving the significant $17,000 level and searching for a new low? However, looking at the declining daily volume candle, together with the steady but stable recent Bitcoin price action, it can be assumed that the market may soon experience a stronger bearish movement.
At the time of writing, BTC/USD is struggling to maintain the $17,100 level and if the coin follows the downward trend as the RSI (14) moves below the 55-level, the next supports may likely come at $15,400, $15,200, and $15,000. From the upside, by maintaining the current level of $17,085, any bullish movement may likely cross above the 9-day and 21-day moving averages to send the price to the resistance levels of $19,000, $19,200, and $19,400 respectively.
On the 4-Hour chart, BTC price hovers below the 21-day moving average around $17,084 which may take time to persistently trade above $17,100. However, if the bulls regroup and gather enough strength, the upward movement may be able to reach the $18,200 and $18,400 resistance levels.
On the downside, the immediate support is around the $16,500 level while the main support is at the $16,000 level. Therefore, crossing below the lower boundary of the channel may cause the coin to hit the supports at $15,800 and below. Technically, BTC/USD may be moving sideways as the RSI (14) moves above the 40-level.
Privacy is a basic human right. It’s there in Article 12 of the Universal Declaration of Human Rights: “Freedom from Interference with Privacy, Family, Home and Correspondence.” Attaining that right in an era of dragnet surveillance, mass data breaches, state-sponsored hacks and big tech overreach, however, is a Herculean task. As the digital privacy fight heats up, crypto protocols are emerging as a new battleground where the right to anonymity will be won and lost.
In 1973, the internet looked like this:
Yes, all of it. Today, your home router connects more devices than the entirety of Arpanet did in the early 70s. Long gone are the days when the connections that comprise the world wide web could be sketched on the back of a napkin. As the internet has proliferated and the number of connected devices has grown into the millions, and then billions, so has the amount of data produced. 90% of all the world’s data was generated in the last two years, with 33 zettabytes created in 2018 alone (one zettabyte equals one trillion gigabytes). By 2025, we’ll be creating 175 zettabytes annually, and will have another 15 billion devices online, largely thanks to IoT.
Data, we are often told, is like oil, serving as the lubricant that greases the web economy. If that analogy is true, we are a long way from reaching peak data. Peak oil, by comparison, is calculated to have occurred as early as 2006 and broadly agreed to occur no later than 2030. We are running out of oil, but demand and supply of data shows no sign of abating. Its ubiquity may account for why we have become so laissez-faire about protecting it. Should our credit card details be stolen, we simply cancel it and order another one; our password exfiltrated, we shrug and create a stronger one. This casual attitude to the loss of a resource that is, to all intents and purposes, invisible, accounts for why the world has sleepwalked into the data dystopia in which it now finds itself.
But as Edward Snowden memorably put it:
Arguing that you don’t care about the right to privacy because you have nothing to hide is no different than saying you don’t care about free speech because you have nothing to say. When you say, ‘I have nothing to hide,’ you’re saying, ‘I don’t care about this right.’
Webizens today find themselves embroiled in a mighty tussle for control of their data. On the one hand, there are the politicians, in nations as “enlightened” as America and Australia, pondering a crackdown on encryption, and mandating the inclusion of backdoors to facilitate government access to private communications. And on the other end, there are the Web 3 companies like Tide (slogan: “Privacy is more than a human right, it’s your asset”) seeking to return data control to its rightful owners. In the case of companies like Tide, that typically consists of creating containers that enable individuals and businesses to control their data via private keys, sharing and reselling it only to those they trust.
Somewhere in between these opposing forces, tugging at the rope that constitutes data flow, lies Bitcoin. Satoshi Nakamoto’s creation is a privacy purveyor’s nightmare and wet dream rolled into one. Bitcoin’s pseudonymous design enables anyone to transact with anyone else in the world without disclosing their identity or intentions. And yet, thanks to advances in blockchain surveillance and ever-encroaching scrutiny from the three-letter agencies, cryptocurrency users have never been more exposed. As a string of darknet vendors have discovered to their peril, associating pseudonymous bitcoin addresses with real world identities is relatively trivial, unless you’re an opsec expert.
Draconian tactics deployed by agencies such as the IRS, which proposes subpoenaing tech companies to identify taxpayers who have downloaded cryptocurrency apps, shows the extremes that government will take to track and trace bitcoiners.
Despite the panopticon capabilities that cryptocurrency hands to governments, giving them real-time oversight of every single network transaction, they hate and fear this uncontrollable money. Last week, U.S. Treasury Secretary Steven Mnuchin vowed to “make sure that bitcoin doesn’t become the equivalent of Swiss-numbered bank accounts,” while senators sought to rein in Facebook’s Libra, expressing alarm at the potential for a mainstream crypto payment system that doesn’t enforce end-to-end KYC. Facebook’s dismal record in respect to data protection was also attacked.
For the subset of web users educated and concerned enough to safeguard their online privacy, there’s a lot that can be done to prevent their data from falling into the wrong hands. Cryptocurrency users would do well to learn the capabilities and limitations of blockchain surveillance and strategize accordingly, to buy and sell coins on privacy-oriented P2P platforms and reduce their dependence on data-thirsty social media platforms and web browsers in favor of pro-privacy alternatives. There’s no such thing as anonymity in an age of facial recognition, social credit, and deep packet inspection. Nevertheless, through taking practical precautions, bitcoiners can make themselves a hard target in the escalating war on personal privacy.
Do you think it’s possible to maintain a reasonable degree of privacy on the web today? Let us know in the comments section below.
Images courtesy of Shutterstock.
Canadian investment firm Cypherpunk Holdings recently increased its stake in the leading crypto by market cap to become the 9th largest holder of the asset
Cypherpunk Holdings invests in blockchain technologies and cryptocurrencies with a strong focus on those that are privacy-oriented. It has previously invested in many other privacy-oriented ventures, such as Samourai Wallet and the open-source, non-custodial Wasabi Wallet.
The company also holds equity in Sweden-based green cloud infrastructure platform Hydro66 and blockchain & smart transaction platform Chia Network. Overall, it has a market cap of $5.86 million CAD.
Cypherpunk is headed by Antanas Guoga, a prominent investor and pro poker player. Guoga hails from Lithuania, where he is a popular figure, having served as a member of the European Parliament. He is now an elected member of the Seimas branch.
Yesterday, the investment company announced it had acquired 72.979 BTC over the last five months. To fund the bitcoin acquisition, Cypherpunk reportedly liquidated other assets it held, including Ethereum and Monero. It also obtained other funds as partial proceeds from a private placement of $505,000 CAD [$388,000] that closed three months ago.
Cypherpunk Holdings is now the ninth largest public BTC holder, with a total of 276.479 BTC in its reserves. Based on the current prices, the assets are worth around $4.6 million. The Canadian holding company is listed on the Canadian Securities Exchange as CSE: HODL, and is available to traders in North America and Europe
More and more public companies are joining the crypto space. There are over 14 publicly-traded companies with a stake in Bitcoin at the moment. These companies collectively have a stash of 66,896.59 BTC, translating to over $1 billion.
The majority of these companies consider cryptocurrencies, specifically Bitcoin, as an ideal store of value. MicroStrategy is one of the companies leading the way, holding a total of 38,250 BTC in its reserves. Galaxy Digital and Square come in second and third place with 16,402 BTC and 4,709 BTC, respectively.