cryptocurrency is set for a long-term move past the $640 mark. On the 18th of January, the BCH price moved above the $500 mark before a return to the $492 mark.

Bitcoin Cash stands at $497.57 at the time of writing. The highest price for the cryptocurrency in the past 24 hours was recorded at $509.52, while the price dropped to a low of $469.16 on the 18th of January. The BCH price suffered fluctuations between $472 and $492 before crossing the $500 mark.

15 technicals show a buy indication while nine are neutral and four are giving out a sell signal. Out of the 11 oscillators, we see two at the selling point, one at the buy position, and eight at the neutral indication. Out of the 17 moving averages, 14 favor a buy signal while one is neutral and two are at the sell indication.

Bitcoin Cash is testing the Bollinger bands midline and this is being tested on the 1D time frame. An increase can be observed in the expansion, which depicts an increase in price volatility. The cryptocurrency should see sideways movement on the short time frames for now.

Trading View analyst Master Shark’s Bitcoin Cash price predicts the breakout of a long triangle pattern. The analyst expects the price to move across the $637 mark.

The cryptocurrency moved above the triangle pattern in December 2020, with a retest of the broken trend line. The trade volume continuously increased since the Q3 of 2020. The Bitcoin Cash price prediction suggests a push towards the $637 level right after the price moves past this short accumulation zone above the broken trend line. The next targets for the cryptocurrency will lie at $666, $942, and then $1771 in the long-term. If it comes into play, this idea will result in a good payday for Bitcoin Cash hodlers.

Analyst Boss Mode Trader highlighted a breakout from the descending triangle pattern as well. The analyst expects the price to move above the $511 resistance, following a brief price correction and then a long run towards the $647 mark. The Bitcoin Cash price prediction puts the cryptocurrency in a big ascending channel, with a long-term target at the main channel’s top.

Analyst Hyper Boy has also come up with a triangle pattern on the BCH/USD charts. The analyst marked the breakout of the triangle formation in this Bitcoin Cash price prediction, and they expect a target price of $646 following the breakout in the long-term. Hyper Boy suggests traders continue hodling on the BCHUSD pair for 2021. The stop-loss for the trade setup is placed short of the $400 mark.

The Trading View analyst De GRAM believes that the BCH price will rise above the $560 level after bouncing off the bottom of an up-channel. The price currently rides the lower boundary of the ascending channel in this Bitcoin Cash price prediction.

like Binance CEO Changpeng Zhao. During a recent interview, the CEO fronted a rather optimistic prediction for Bitcoin this year. He said BTC is a much better asset to hold value than fiat currency.

In his prediction, Zhao opined that Bitcoin has the potential to spike by between five times and 10 times by the end of 2021. That’s in addition to the currently established crypto bull run that took Bitcoin’s price to a new ATH of around $42k before the crypto drew back to trade at around $35k. Zhao backed up his views with a few strong points.

For one, governments have been printing a lot of fiat money during the Covid-19 pandemic. This is claimed as an effort to implement quantitative easing in hopes of reducing the economic effects caused by the outbreak.

As a result, fiat currencies are now losing value. CZ estimated that the US Dollar alone has been inflated by between 20-30%. That makes a strong case for people who want to preserve the value of their wealth to buy Bitcoin, thereby contributing to a rise in its demand and the subsequent Bitcoin price increase. CZ seems to have a lot of confidence in Bitcoin, as revealed by his recent tweets.

A lot of Bitcoin opponents have expressed pessimism about it, saying it’s highly volatile. However, according to Binance CEO, BTC is actually way less volatile than some other popular assets like Tesla’s stocks. That means owning Bitcoin is less risky than owning Tesla shares.

The rise of DeFi has been another development that has given Bitcoin a much-needed push to go mainstream. Many DeFi projects have been launched, but CZ has some bad news about them. According to him, it’s likely that a majority of the current such projects will not survive in the long run. Either way, there is a strong indication that Bitcoin price will continue its upward trend.

The asset saw widespread adoption by investment funds, traditional finance participants, family offices, and tech funds, and set new all-time highs in December, a figure that was over 100% higher than its previous value.

Now, there’s a new evangelist on the block, and it’s the former Canadian prime minister Stephen Harper. In an interview with Jay Martin, president of investment service Cambridge House, at the Vancouver Resource Investment Conference on Sunday, Harper said that Bitcoin was fit to be counted along with other hard assets like gold.

"We've seen the US dollar trend down in recent months…unless the US becomes a catastrophe, it's hard to see what the alternative is to the USD as the world's major reserve currency. Other than gold, #bitcoin, a whole basket of things… pic.twitter.com/E5atb4qRDf

— Neil Jacobs (@NeilJacobs) January 18, 2021

However, this didn’t mean that the US dollar was losing its prominence anytime soon. “Other than gold, [and] Bitcoin…I think you’ll see the number of things that people use as reserves will expand, but the U.S. dollar will still be the bulk of it,” Harper stated, when asked about the current state of the global financial market and which assets could make it to “reserve” status.

“It’s hard to see what the alternative is to the U.S. dollar as the world’s major reserve currency,”  he noted.

Harper has likely seen all of Bitcoin, at least information wise. He was the Canadian prime minister from 2006 to 2015, witnessing the asset’s inception, growth, first bubble, and eventual recovery in his term.

His comments for Bitcoin as a reserve asset came in favor of the Chinese yuan or the European unified currency Euro, stating that the former was subject to high levels of administrative restrictions while the latter faced long-term uncertainty.

Meanwhile, Harper added that central bank digital currencies (CBDCs) were an experiment that was “inevitable” but faced a difficult challenge in terms of governance, enforcement, and long-term viability.

“If you have a digital currency and the purpose of the central bank is to control inflation and create a stable currency and priceability, then digital currency is just kind of an evolution of the marketplace.”

Harper, however, added that if CBDCs were released as part of a series of “wild experiments to the role of central banking” it would worry him “a lot.”

— IMF (@IMFNews) January 17, 2021

Just last week, Miami mayor Francis Suarez announced that he was considering buying Bitcoin for the city’s treasure, becoming one of the first US politicians to speak positively about cryptocurrencies and the formal use of Bitcoin in a hard asset setting.

He said such a purchase could make the city of Miami one of the most crypto-forward and technologically advanced cities, adding that the hypothetical reserves could have already been “200 percent higher” had he taken the decision to invest earlier last year.

Suarez further stated that he was even looking into allowing citizens to pay taxes and fees to the city in Bitcoin, a move that would make it “the easiest place in the United States to do business if you’re doing it in cryptocurrencies.”

Miami Mayor Francis Suarez publicly said he is considering purchasing Bitcoin for the city’s treasury.

The official has spearheaded progressive technology regulation for the East coast city.

Believe it or not, a majority of 2017’s rally that took Bitcoin from $500 to $20,000 in 18 months’ time was catalyzed by retails investors — people like you or me.

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Today sees the Bitcoin bulls mounting a fightback following the weekend slide.

The price of Bitcoin is hovering under $37,000 after the correction from $40,000 in the past 72 hours.

A large narrative over the past few months is the introduction of institutional capital to the Bitcoin space.

believed to be a pseudonym. Bitcoin is computer software with no intermediaries controlling it being a decentralized peer-to-peer network driven by the users. It can be used to make and receive payments in the world of the Internet.

Buying a Bitcoin is completely different from buying traditional stocks and shares of a company and trading in fiat currencies. Unlike physical currencies, governments and statutory bodies do not control Bitcoins; neither are they the issuers. Hence, all factors that influence conventional money and financial instruments like inflation rates and monetary policies do not affect the price of a Bitcoin.

Here are some aspects that determine the cost of one Bitcoin.

The first is the supply and demand for Bitcoins in the market. The more active the miners are, the greater will be the supply. The cost of producing Bitcoins is critical too. If it exceeds the price at which the coin is available on exchanges, miners will prefer to buy Bitcoins rather than producing it with inadequate rewards. The transaction fees for verifying Bitcoin transactions on the Blockchain should be high enough to lure the miners. Thus, all routes that lead to an increased supply of Bitcoins have a bearing on the price of 1 Bitcoin.

Sometimes, the price of 1 Bitcoin varies from place to place. This trend is similar to fiat currencies. Bitcoins are traded on various exchanges worldwide, and each has its average prices based on the trades going on at that time. Hence, 1 Bitcoin might have different values.

Before going into the factors that impact the price of a Bitcoin, it is essential to understand who controls the Bitcoin network. The answer is that no one controls Bitcoin, and it is in the hands of all users around the world. While there is a constant effort to improve the software by developers, a change cannot be implemented or forced on the Bitcoin protocol. To provide continuity and stay matched with each other, all users use the same software, follow the same rules, and maintain a complete consensus. This is strongly maintained by all users.

Now, who controls the Bitcoin price? Again, it is largely a matter of supply and demand and market manipulation. Bitcoin ownership is never evenly distributed, and some people have large volumes of Bitcoins in their digital wallets. Liquidity is, therefore, in the hands of a few, making it easy to control the price and the market.

On the reverse side and much like a stock market passing through a bearish phase, large traders sell Bitcoins in high volumes, and even one trader can affect the market. A case in point is BearWhale, a trader who sold off a large part of his Bitcoin holders at below market value to set off a temporary crash.

As in conventional, economies, supply, and demand are the key benchmarks determining the Bitcoin price. If the Bitcoin price has a high token supply without matching demand from traders, prices will drop. The converse is true, too, where the price of this cryptocurrency will increase.

Public sentiment is a factor given that Bitcoin is not tangible and exists only in the virtual world. Boundless faith is required to trade in digital currency, and any adverse publicity can seriously affect the price of Bitcoin. Prices of crypto have many times been swayed by hype and emotions.

Further, issues with the Blockchain platform and difficulty in mining proof-of-work tokens could impact Bitcoins’ supply, thereby pushing up prices.

Bitcoin occupies a limited space in the global financial market and therefore witnesses large price movements up or down with little money involved. A parallel can be drawn with gold, which also goes through highly volatile price fluctuations.

Further, the supply of Bitcoins is not unlimited and is kept pegged at 21 million. Only 3 million can yet be mined. The strict rules in mining Bitcoins mean that demand would have to cope with the shrinking supply of Bitcoins, thereby pushing prices up.

News that is detrimental to Bitcoins and government regulations is often instrumental in the high volatility of Bitcoin prices. It is always advisable to understand the many nuances of Bitcoins before dealing with it. You can also make a profit from Bitcoin trading by choosing the best platform among them all. One such platform is Bitcoin Champion – One of the best Bitcoin Robots. It is a platform that can help you to achieve maximum profit from Bitcoin trading.

the crypto market down with it. But what happened?

The cryptocurrency market has lost over $170 billion in total market value in the last 24 hours as the Bitcoin price fell below $33,000. The overall value of the crypto market is currently around $940 billion, down from $1.1 trillion yesterday.

At the time of writing, Bitcoin has already bounced significantly back to around $35,344, down still around than $6000 from its recent high of $41,500. The total market cap of Bitcoin is now around $660 billion.

The recent cryptocurrency market crash really began on Sunday in the US trading session when Bitcoin dropped from $39,000 to $35,000 within minutes. The world’s largest cryptocurrency recovered quickly to $37,500 but the Asian session added selling pressure on BTC. Blockchain tracking and analytics company Whale Alert reported a massive move earlier today when an unknown user transferred 3,875 BTC worth nearly $138 million to an unidentified wallet.

According to crypto analyst and investor Joesph Young, while many narratives are circling at what precisely caused Bitcoin to drop the answer is simple—greed.

Young tweeted:

"There will be many Bitcoin narratives—miners sold, dxy rose, whales sold, treasury is up, stocks are down, institutions sold. $2.7 billion was liquidated today. The simple answer is the market was overleveraged, got greedy, continue to buy first dips below $39k.”

  Peter McCormack the host of podcast “What Bitcoin Did” also reminded his listeners on Twitter that the road to a $1 million BTC price is a long one filled with ups and downs. McCormack wrote in response to online flack he had received from trader’s who had overleveraged their position:

“Peterrrrr!!!!

#bitcoin has crashed and I’m poor!

Only because you ignored me and used leverage, blowing up an account, you dickhead.

These crashes happen, meh, the road to a $1m #bitcoin isn’t straight up. We shake a few hares out on the way.

Be a tortoise.”

Bitcoin Price Analysis

Source: BTC/USD TradingView

For now, after the 20% drop from its high, BTC found support near the 33000 level and found a decent rebound, currently trading at 35500. With the Fibonacci retracement, we can see that is now going to be some further resistance near the 37100 level and we need to pay attention to the Bitcoin price action if it gets there.

In the 4-hr chart, the price dropped drastically after the MACD dead cross, and it is important to pay attention to the next candle. We expect more optimistic price moves if this 4-hr candle manages to close in the green.

steadied Tuesday after flirting with a bear market in a plunge that left investors grasping for clues about what lies ahead for the world’s largest cryptocurrency.The digital coin rose as much as 8% to about $36,600, but the move higher pales compared to the gyrations that took Bitcoin to an all-time high of nearly $42,000 on Jan. 8 before a precipitous slump over Sunday and Monday.

The latest bout of roller-coaster volatility recalls past boom and bust cycles including the 2017 bubble, and has investors debating whether this is a healthy correction or the end of the latest bull run for cryptocurrencies.

“We think a pull back is healthy,” said David Grider, lead digital strategist with Fundstrat Global Advisors LLC, who added he doesn’t think the recent price action indicates that Bitcoin has already topped out.

Investors who bought the digital coin a year ago are still sitting on gains exceeding 300%. Pinpointing who is mainly responsible for the rally is one of the many crypto mysteries — Bitcoin funds, momentum chasers, billionaires, day traders, companies and even institutional investors have all been cited.

Just as hard is working out what caused the recent two-day drop of as much as 26%. For some, a bounce in the dollar may be among the reasons. The greenback has snapped a prolonged losing streak after rising U.S. government bond yields bolstered its allure.

“The dollar is showing strength,” said Vijay Ayyar, head of business development with crypto exchange Luno in Singapore.

Ayyar is monitoring what happens if the U.S. Dollar Index climbs to 92 from the current level of about 90. “If the dollar powers through that level then we may have seen a Bitcoin top at $40,000,” he said.

At the same time, the world remains awash with monetary and fiscal stimulus, and some of that wall of money could yet gravitate to crypto assets.

Bitcoin believers continue to tout the digital currency as a viable hedge for inflation risk and the potential debasement of fiat currencies. Some forecasts for its long-term price range from $146,000 to $400,000.

“As long as the world is flooded with money and safe assets offer poor compensation, Bitcoin will be relevant,” Howard Wang, co-founder of Convoy Investments LLC, wrote in a Jan. 10 note. “Volatility and asset bubbles will be a fact of life.”

Read here about Ethereum price.

And here about markets data.

on Tuesday – although US Treasury bond yields continued to rise.

Bitcoin, the digital currency, began to recover on Tuesday with strong fluctuations. After the price plunge to USD 30,250 on Monday, follow-up purchases began, which lifted the value of the cryptocurrency back above the USD 35,000 mark by Tuesday morning. Bitcoin was most recently listed on the Luxembourg trading platform Bitstamp at 36,300 US dollars, 20 percent above the weekly low reached on Monday afternoon.

On Monday, Bitcoin had temporarily dropped to $ 30,250, losing around $ 10,000 in value from its record high on Saturday. However, the price slide of around 25 percent was followed by purchases, so that the round mark of 30,000 US dollars was initially defended. Now Bitcoin is again focusing on the $ 40,000 mark – although the yields on US government bonds, which were cited on Monday as the reason for the Bitcoin sell-off, continue to rise and rise for the fourth day in a row.

The strength of the dollar and the recovery in bond yields in the USA is justified with the expected trillion dollar Corona aid program in the USA. Joe Biden, who will be sworn in as the new US president on January 20, had promised to spend “trillions” to get the corona pandemic and its economic consequences under control in the US. The yield on a 10-year US government bond is again more than 1 percent and is currently 1.14 percent. But even this trend did not slow down the record rally of the alternative currency Bitcoin.

The US investment bank J.P. Morgan had only announced a price target of around 150,000 US dollars for Bitcoin in the first week of January and thus further fueled the hype about the cyber currency. But the upper price limit for Bitcoin is limited – one of the limiting factors is the extremely high energy consumption of Bitcoin mining. The Bitcoin boom has been accompanied by significant price fluctuations, but according to market observers, despite the recent setback, unbroken.

It is also noteworthy that Bitcoin has recorded the largest price fluctuations in recent times, especially over the weekends. During the first weekend after Christmas and on the first two weekends of 2021, Bitcoin still had double-digit growth – only to fall by more than 10 percent, again in the night from Sunday to Monday. At the same time, the trading volume on the weekends is also significantly larger than on weekdays, as analyzes by the CryptoCompare service show. Anyone who wants to speculate on Bitcoin will have to do so 7 days a week in future – the activities of professional traders on the weekends are too strong.

Bitcoin’s recent soaring is still unparalleled. In March of last year, Bitcoin temporarily fell below the $ 4,000 mark – and has increased more than tenfold since that Corona low.

Since mid-December alone, i.e. in just over three weeks, the price has almost doubled despite the recent setback. Over the year, the plus amounts to more than 300 percent. Hardly any other form of investment currently has such drastic price increases to offer. However, critics warn against exaggerations and a bubble, since such extreme price increases are rarely sustainable. Bitcoin is the oldest and by far the best-known digital currency. Experts had recently estimated the market capitalization to be around $ 560 billion.

For the latest soaring, the market repeatedly states that the digital currency has recently moved more into the focus of major financial investors and is in greater demand. However, experts also warn of the extreme price fluctuations that can be observed time and again with Bitcoin. The value of the cryptocurrency more than quadrupled in the past year 2020.

Bitcoin is also being boosted by the fact that more and more professional investors are interested in cryptocurrencies. The interest of professional investors is often considered to be long-term, which could stabilize the very volatile Bitcoin price. Interest in digital currencies is also being increased by the corona pandemic and the associated sharp rise in national debt. For this reason, some investors fear rising inflation in the medium to long term, which they want to hedge against with alternative investments.

The corona pandemic and the numerous rescue programs of the global central banks are causing a flood of money and thus also strengthening interest in the alternative currency Bitcoin: Due to the extremely loose monetary policy of many central banks and the immense state aid, some investors are likely to be critical of traditional currencies see confirmed. Whether the new types of digital currencies offer sustainable protection against high inflation rates is doubtful due to their high exchange rate fluctuations.

At least Bitcoin has built in a kind of inflation protection: The amount of Bitcoin that can be “mined” by providing computing power in the blockchain is limited to 21 million units from the outset. The digital currency has a fixed upper limit of 21 million units in its code and a mathematically predetermined monetary policy through “halving”: In this point there is a significant difference to currencies such as euros or dollars, which can theoretically be printed in infinite quantities.

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just move up in a straight line. They move in waves, creating peaks and troughs along the way.

Before the recent correction, Bitcoin simply continued to make peaks over with barely any throughs. As the market turned euphoric, it was only a matter of time before a significant price correction would deliver a bit of a reality check. 

This is not to say that the Bitcoin bull run is necessarily over. It is just to say that a correction was needed before the market can make a push higher again. The type of bullish momentum displayed by Bitcoin recently is pretty much impossible to sustain over a longer period.

It seems this type of sentiment is beginning to gain traction within the market. Before the price correction happened, venture capital investor Chris Burniske warned that the market seemed to be in a state of euphoria, and that a pullback was necessary.

He continued with the following analogy:

He states that after the breakout wave occurs, the water in the ocean needs to dissipate as it must gather its resource to let another wave roll through - that is what is known as the pullback in markets.

Burniske also pointed out that in previous bull-cycles, the pullbacks represented 20-40% declines - which look relatively small today.

We only need to take a look at the weekly chart to look at how parabolic the recent bull trend was:

In fact, if you take a look at the weekly RSI on the weekly chart above, you might notice that the RSI was the most overbought it has been since late-2013 - surpassing the levels seen in the late-2017 market surge. This shows how overextended the bullish momentum was within the market.

There are some other concerns that current BTC investors should be keeping in mind.

Firstly, it seems that mainstream media has noticed that Bitcoin is not “dead,” and headlines are dominating the feeds talking about the extraordinary growth. This is likely to attract amateur retail investors into BTC again. Those that buy and sell without much thought behind their actions. We can already see this in the Google Search Trends for “Bitcoin”:

After months of zero interest, there has suddenly been an uptick in Bitcoin searches as retail investors look to catch up with what has been occurring. Furthermore, it seems that Bitcoin price volatility is starting to rise again.

When markets become highly volatile, it is likely to discourage institutional investors from entering any new positions until the volatility dies down. Financial institutional investors mainly drove this latest BTC price boom, so we will likely see a huge pullback if that dries up.

Lastly, data from The Block (sourced from Skew) shows that the open interest for Bitcoin Futures passed the $10 billion threshold and continues to rocket:

The aggregated open interest shows the number of open positions on all of the futures exchanges for Bitcoin. The majority of this open interest is sitting on the CME exchange for professional investors, with Binance Futures and OKEx following closely.

As a result of this overwhelming open interest, BTC Futures contracts’ funding rates have gone through the roof. It was estimated that traders were paying over $5 billion in annualized interest fees to keep their long positions open.

The funding rate is the cost that the long traders have to pay the short traders to balance the market. The cost of the funding rate has increased by over 15 times from 0.01% to 0.15%. This is because the majority of the market is overwhelmingly long.

The problem with the majority of the market being long is it gives rise to the probability of a long squeeze occurring. This is a scenario in which long traders (traders with “buy” positions open) have to close their positions when the market starts to fall slightly - usually taking a loss in the process. 

To close their positions, these traders need to “sell,” causing a cascade of selling on the futures market, which floods onto the spot market. This leads to a domino effect of Long positions closing by selling the market, usually leading to a large drop in Bitcoin price. 

According to Bitcoin market analyst Willy Woo, issues at the Coinbase cryptocurrency exchange played an important role in the recent sell-off. The fact that the Bitcoin price was lower on Coinbase compared to other exchanges due to technical difficulties impacted cryptocurrency derivatives exchanges that use Coinbase as one of their sources for pricing Bitcoin.

In conclusion, I am not trying to bring fear into the market—quite the contrary. I believe Bitcoin will eventually hit $100K per coin in the very near future. This article is just intended to highlight the level of euphoria within the market right now. There is a great deal of greed within the market and many indicators were pointing to the fact that it was extremely overextended. 

After a market turns parabolic, there is only one possible outcome - a large pullback. We need to manage our funds wisely to cover ourselves for when this pullback eventually does occur.

all-time high of $29,629 which is only a few hundred dollars away from $30,000.

Last year, Bitcoin price almost quadrupled after it had sold for less than $6000 as of last March. However, since then, especially during December, the value of the coin has appreciated massively as it kept breaking its own record.

To put this in perspective, the coin price surged by over 300% within 2020 alone.

One of the reasons attributed to this massive rise in price of the digital asset is the role institutional investors played in a broader and wider acceptance of BTC as a viable means of investment and also a valid store of wealth.

In 2020, the economy suffered due to the outbreak of the pandemic that grounded almost all human activities. To cushion the economic effect of the virus, some governments like that of the United States decided to pump a stimulus package into the economy which is the same thing as printing more money. This led to fear among economic analysts who believed this would lead to massive devaluation.

So, in response to this, institutional investors like Grayscale, Microstrategy, Square etc began to buy BTC as a store of wealth and as an investment tool.

PayPal entrance into the crypto market also played a role. The entrance of the financial institution opened the crypto industry to over 300 million active users who can now trade in crypto assets like Bitcoin too.

Presently, Bitcoin market capitalisation is above $500 billion, placing it above huge financial institutions like Visa and MasterCard.

At the current rate, the coin could also be able to usurp other huge institutions like Alibaba, Tencent, Berkshire Hathaway etc on the ranking.

more than $2 billion. At press time, bitcoin is testing the support at $33,900 while also being in a state of limbo.

The 4-hour chart shows the recent drop came after bitcoin broke the support at $38,633. Since this breach, the sellers have managed to push bitcoin past the short-length EMA [orange] and the mid-length EMA [purple]. While the selling pressure has reduced, the price is using the long-length EMA [blue] as support. A bounce from this level is likely, however, not guaranteed.

Considering the overhead resistance, it is not completely unlikely for buyers to push through the short and mid-length EMAs. However, a rejection here would push the price down.

The RSI indicator seems to indicate the bounce just before the oversold zone confirming the buying pressure at the current support level. Moreover, the bullish divergence between the price and RSI shows that buyers might not just be able to hold this level, but even push the price higher.

The OBV doesn’t show a large volume drop off during the recent crash, indicating that a recovery is likely to be swift.

The MACD indicator showed a dip of the fast-moving line [blue] below the zero-level. The same was observed with the Stochastic indicator which has multiple failed reversals in the oversold zone, where it still stands.

Although it looks bearish, the surge in bitcoin’s price in the last few days is not just FOMO but backed by real investors pumping cash. Hence, even with the parabolic ascent in price, this recent crash is just a correction with prices expected to rise higher without any doubt.

Litecoin, Synthetix, Ethereum Classic Price Analysis: 11 January

Why Bitcoin’s 20% drop bodes well for the coin

Akash is a full-time cryptocurrency writer and an analyst at AMBCrypto. He is an engineering graduate with an avid interest in finance and economics. Attracted to the chaos of trading, Akash has invested in BTC, ETH and XRP for educational purposes.

hitting $500 billion very soon. By surging nearer $1000 per day, BTC price is expected to hit $31K by the end of 2020.

One of the analysts and the partner at The Spartan Group, Spartan Black has predicted about the major cryptos and the defi space for 2021. According to Mr Spartan Bitcoin will hit $100K in 2021 and Ethereum Price will surpass its current all-time high within next 6 months.

Moreover, he says that the DeFi’s total value locked (TVL) will also exceed $100M in 2021 with at least 10 tokens will have more than $10 billion market capitalization. 

Ethereum, the world’s second largest cryptocurrency according to market capitalization has yet once again crossed $700 following the Bitcoin bull run. The price currently is around the yearly highs at $732 with a growth of 13.12 percent in the last 24 hours. 

Despite Ethereum’s spike of nearly 13 percent for the first time since 2018, the miners’ balance and the supply on exchanges remain low as recorded by an on-chain analytic platform Santiment.

Therefore showcasing a strong projection of an Ethereum bull run which will form a new ATH very soon. Collectively, bitcoin and ethereum price volatility is quite stable for the past two years, climbing steadily eliminating huge spikes.

According to the CSO of Blockstream, Samsom Mow, the bitcoin price volatility will be still less in the coming years as the institutional and hedge funds continue to buy Bitcoin at every dip.

entire narrative around traditional finance and its wobbled offerings. According to CoinMarketCap, there are at least 8,257 digital currencies and tokens all with different fundamentals and price values.

Bitcoin and Yearn.finance have remarkable disparities in their respective fundamentals. The former was built as a faster, secure, and cheaper alternative to existing mobile payments, while the latter is a governance token of the Yearn.finance DeFi ecosystem.

The YFI token and its network was developed by Andre Cronje. Working with the motive of “Defi made simple” one can think of Yearn.finance as a guardian that guides you to find the best yields in Ethereum DeFi.

While Bitcoin is unarguably the most embraced digital currency around today, Yearn.finance is also gradually finding its way in the space.

Since the YFI token was launched, it has dramatically risen in value (price) to surpass that of Bitcoin at a time. While the historical price data for the two coins can show the differences in prices over time, an exposition of the current performance for both coins reveals that the once bogus price of YFI is no longer intimidating to that of bitcoin following its preceding all-time high debuts.

At the time of writing, YFI was trading at $33,711.78 while Bitcoin was trading at $39,622.16, according to Coingecko. Despite the high price, YFI has a market capitalization of $1.011 billion, while Bitcoin boasts a $735 billion market cap at the time of writing.

The launch of every crypto project comes with numerous ambitions, particularly in the long-term projection to have such values attached to the tokens in a bid to reward early adopters. While almost all altcoins out there are running a frantic race to achieve this, only YFI has been able to attain as much valuation at its individual token price to come close to that of Bitcoin. However, if Bitcoin continues its ongoing month-long bullish momentum, neither YFI nor other altcoins will be able to rank close to its value.

but the magnitude of the corrections has yet to be seen. For the day, the king of cryptocurrencies topped at $37,860 while the 24-hour low for the cryptocurrency was around $30,300 – a change of around 20 percent in a single day. At the time of writing, the king stands at $35,713. 

Thirteen out of the twenty-eight technical indicators are giving out a signal of buy, nine are neutral and six are sell. Most of the oscillators – 8 – are neutral with 2 indications of buy and one indication of sell. Out of the seventeen moving averages, eleven buy indications with 1 neutral and 5 sells. 

Analyst Trading Shot has identified a consolidation ahead in their Bitcoin price prediction. The cryptocurrency is operating in an ascending channel formation and is currently testing the channel’s lower boundary. The analyst states that the correction is nothing to worry about as Bitcoin has had such minor corrections since March of last year. Over the past year, every time the cryptocurrency touched the 1-day MA20 and two Fibonacci Retracements levels of 0.5, the price of Bitcoin had suffered a major drop.

In each of these instances, the price of Bitcoin has touched MA-20. This is exactly what happened recently, but as past trends show, Bitcoin will recover quickly. Bitcoin fell because the RSI and LMACD are both experiencing bearish momentum. Per the analyst, the cryptocurrency will not break out of the ascending channel formation towards the downside as there is a consolidation zone lying ahead. The consolidation zone is also based on the price action and trends of Bitcoin. The consolidation zone lies between the Fibonacci levels of 3.5 and 4.5, i.e., between $32000 and $50000.

Analyst Onat Kib, in their Bitcoin price prediction, is very optimistic for the future of Bitcoin. As per the analyst, the time is near when Bitcoin will be adopted as a mainstream currency. This thought-process of the masses has contributed to the current trajectory of cryptocurrency. The analyst has identified the price action of Bitcoin to be on a parabola.

Per the analyst, the corrections are growing shorter and less deep. The cycle also does not appear to be as immature as one experienced in the 2017 bull run.  Bitcoin also has two ascending trend lines, and if the cryptocurrency holds the $32000 support level on the upper ascending trend line, it can be expected to have stabilized. Bitcoin can resume its upwards journey on the parabolic curve and reach around $4,4000.  

Analyst E BOAT has identified the onset of an inverse head and shoulder pattern in their Bitcoin price prediction. Bitcoin has successfully completed more than 70 percent of the formation and is currently on the right shoulder, hence, the downward descent of Bitcoin’s price. If Bitcoin stabilizes at $32k then the analyst is expecting a sharp upward hike to around $42000.