Relative Strength Index suggests gains for Bitcoin in Q1 2021

Bitcoin’s monthly RSI has surpassed 80, an event that historically precedes further rises: ‚Next year will be bullish,‘ an analyst predicts

 

Bitcoin’s (BTC) monthly Relative Strength Index (RSI) shows that the leading cryptocurrency is poised for another rise.

 

Is 2021 the perfect time for a Bitcoin rally?

The RSI is a momentum indicator that measures whether an asset is in an overbought or oversold condition. When the RSI exceeds 75, it signals that the asset is overbought; when it falls below 30, it means that the asset is oversold.

 

A pseudonymous trader known as „Crypto Chief“ pointed out that Bitcoin’s monthly RSI is set to close above the 80 level. Historically, this event precedes a strong BTC rally. Even if the monthly indicator is above 80, thus in overbought conditions, BTC’s RSI tends to stay in this territory for extended periods during a bullish cycle.

 

Bitcoin’s Monthly RSI

Bitcoin’s monthly RSI. Source: Crypto Chief

Therefore, traders often refer to an overbought RSI on extended interval charts, such as the monthly chart, to predict a sustained rally in the short to medium term. The trader commented:

 

„The monthly candle is about to close above 80. When this happens, the bullish trend continues with an average return of 1010.87%. Each cycle is shorter than the previous one.“

However, the trader pointed out that a single indicator cannot accurately predict the Bitcoin price cycle. Crypto Chief explained that the combination of different factors could act as a guide for the future:

 

„You cannot base a prediction on a single indicator. What we do is combine different methods so that we have a guideline for the future, to look at what is most likely. But in the end, we adapt to what the price is doing in the present.“

„Next year will be bullish“

Traders have different perspectives on Bitcoin’s direction in 2021, but most remain extremely bullish. Michaël van de Poppe, an analyst at Cointelegraph Markets, predicts that Bitcoin will reach levels between $65,000 and $85,000 by the end of 2021:

 

„I have to revise my view on the potential level of $BTC at the end of 2021. Due to this recent increase, I expect it to be between $65,000 and $85,000. Next year will be bullish.“

Meanwhile, the options market has a 22% probability that Bitcoin will reach $120,000 by the end of next year, a target that could be a potential guideline for BTC’s direction in 2021.

 

However, in the short term some traders are cautious about opening leveraged positions. According to a pseudonymous trader known as ‚TheBoot‘, the ideal scenario is to wait for Bitcoin to consolidate at $25,000 or open a position after the next price rise. The trader explained:

 

„In my opinion, there is no rush to open leveraged positions on $BTC here. It would be better to wait and open a long around $25,000 or even $24,500. Alternatively, wait for the next rise and a subsequent fall.“

As Cointelegraph previously reported, whales have been buying Bitcoin more aggressively since Christmas, which could support the medium-term bullish hypothesis for BTC in 2021.

Desenvolvedor de Bitcoin que perdeu o financiamento de Bitmain ganha a primeira subvenção de desenvolvimento da Coinbase

O Coinbase Crypto Community Fund foi concedido a João Barbosa e a outro desenvolvedor pseudônimo.

Bolsas de desenvolvimento Bitcoin Core de sempre

A Digital Currency Exchange Coinbase concedeu suas primeiras bolsas de desenvolvimento Bitcoin Core de sempre, e um nome familiar está entre os beneficiários.

João Barbosa e 0xB10C, o pseudônimo de um desenvolvedor pseudônimo, foram selecionados vencedores no início desta semana. Embora os valores do financiamento não tenham sido revelados, a Coinbase disse que ambos os desenvolvedores „serão financiados para trabalhar no Bitcoin Profit por todo o ano de 2021″ em valores pagáveis via BTC ou USD.

Como a Coinbase afirma:

Ambos os candidatos demonstraram um histórico consistente de contribuição ao Bitcoin Core, e forneceram ao conselho consultivo do Fundo […] um esboço claro e acionável dos projetos nos quais pretendem trabalhar“.

O trabalho de desenvolvimento de Barbosa foi anteriormente financiado pela empresa de mineração criptográfica Bitmain antes que suas doações fossem abruptamente cortadas junto com o colega desenvolvedor Jonas Schnelli.

Está centrado em melhorar a experiência do usuário Bitcoin Core

O trabalho de desenvolvimento de Barbosa está centrado em melhorar a experiência do usuário Bitcoin Core em dispositivos móveis Android e iOS. Ele planeja usar o dinheiro da subvenção para desenvolver uma GUI Bitcoin Core com base na estrutura Qt Quick.

A Coinbase anunciou pela primeira vez seu Crypto Community Fund em outubro como uma forma de patrocinar o desenvolvimento do codebase para o Bitcoin Core. Dependendo do sucesso das primeiras doações, a Coinbase planeja expandir o programa para outros tipos de projetos criptográficos no futuro.

O Bitcoin foi lançado no início de 2009 sem uma angariação de fundos ou subsídios para desenvolvedores. Os primeiros desenvolvedores ajudaram a preparar o caminho para o surgimento de novos ecossistemas monetários. Agora, há mais de 8.100 moedas criptográficas para adoção em várias indústrias, casos de uso e localizações geográficas.

A year for the coronavirus: how has the COVID-19 pandemic affected the cryptographic market during this time?

Who would have thought that the world situation would change so much in the past twelve months? Recall that last November, „zero patient“ with COVID-19 appeared: according to the Chinese news publication South China Morning Post, on 17 November 2019 doctors found the first coronavirus patient. A few weeks later, entire cities in China were beginning to be quarantined, and a little later similar measures were taken almost all over the world due to the rapid increase in the number of infected people. How did all this affect the cryptov currencies? We are telling you.

Global quarantine had a serious impact on the economy and contributed to a sharp increase in unemployment rates in dozens of countries. But despite everything, the ongoing crisis has also had a positive impact on the world. European conservatism, which has long relied on the traditional financial system, has been questioned as the pandemic has forced Europeans to switch to non-cash payments and crypt currencies.

Journalists from the Cointelegraph news publication gathered the thoughts of the industry’s most famous personalities about the complex relationship between COVID-19 and cryptov currencies. Thanks to them, it will be possible to draw a picture of what is going on and to sum up some sort of interim results.

How did the coronavirus affect Bitcoin?

Here is a quote from Ashish Birl, General Manager of RippleNet.

COVID-19 has exacerbated the inequality between those who do not have normal banking services and has identified gaps in our financial infrastructure. Despite the pandemic, people still need to send money to relatives and friends abroad. As a result, remittances continued to grow in some of the largest corridors. For example, in the US-Mexico corridor, remittances have increased significantly since the beginning of the pandemic: in March 2020, Mexico received $4.02 billion from abroad, a 36 percent increase compared to March 2019.

Indeed, as the burden of cashless settlement systems increased dramatically due to the lockdown, people began to realize how high fees they were charged for normal cross-border transfers. In this situation, many of them turned to working with cryptov currencies. However, in the case of Bitcoin, a transfer of the equivalent of a billion dollars may cost the price of a cup of coffee at an expensive coffee shop.

Then Da Honfei, founder of the Neo project and CEO of Onchain, spoke.

In my opinion, COVID-19 did not have a negative impact on the cryptovoltaic market – in any case, it caused increased demand for innovation and implementation of the blockchain. By identifying the weaknesses of our current paradigm in finance, the Coronavirus also highlighted the urgent need for decentralisation.

In other words, the analyst believes that governments and bankers have failed to cope with the crisis situation, which they, among others, have begun to address by issuing new money. And since not all people approve of such actions, but they cannot influence what is happening – yet the authorities have the exclusive right to issue money – citizens in many countries have really thought about decentralisation. And cryptocurrencies are just such a means, because code and algorithms, not officials, govern the main block projects.

Another interesting point of view from billionaire Tim Draper, a well-known venture capitalist and longtime supporter of Bitcoin.

Many people stuck in their homes have finally taken the time to create their own crypto trader wallet. However, the real impact of the Coronavirus is that the isolation has been devastating for many families. When the government printed 13 trillion dollars to support the economy, these people chose Bitcoin over the weakening national currency.

Indeed, the demand for Bitcoin and its popularity has increased dramatically this year. Accordingly, people have indeed begun to explore alternative investments that are not so dependent on government action. Let us remind you that the correlation – that is, the connection between BTC and classical assets is usually insignificant. Bitcoin and other cryptocurrencies have shown growth more than once while the same gold has fallen.

As a result, experts agree that manipulation of the dollar supply on the international currency market has seriously reduced its purchasing power in just a few months. Moreover, they have undermined the status of the world’s reserve currency – as its own price rises, Bitcoin does indeed look like a more attractive asset for investment.

This means that the conclusions are clear: despite the terrible consequences of the coronavirus pandemic and mass lockdowns, the cryptov currencies have only benefited from this situation. People did not fully appreciate the efforts of officials and decided to withdraw from them. That is why many of the citizens‘ savings have gone into the crypt currency, among others.

This is also proved by the graph of the total capitalisation of the cryptovolta market. In 2020, the indicator almost tripled – from 191 to the current 568 billion dollars. We hope this does not end there.

Here is a graph for clarity.

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Bitcoin (BTC) drops after new record high

Bitcoin is facing resistance at $ 19,400.

Technical indicators have turned bearish.

BTC benefits from supports at $ 16,040, $ 14,850 and $ 13,660.

On December 1, the price of Bitcoin (BTC) reached a new all-time high before falling sharply.

Bitcoin has regained the majority of its losses, but another near-term decline is expected before a potential resumption of its upward movement.

Bitcoin’s parabolic descent and its resistance test

BTC has been following an ascending support line since the start of the upward movement that started on September 4th.

After breaking below this line on November 26, BTC found support near $ 16,050 (fibonacci retracement level 0.382 of the full rise) before starting the current upward movement.

Although BTC hit a new all-time high, this rise only validated this parabolic line as resistance, before suffering a further rejection.

In addition, technical indicators in the daily timescale are bearish. Both the RSI and the MACD have generated bearish divergences and are in decline. The Stochastic Oscillator has also formed a bullish cross.

If the price declines, the closest support areas are at $ 16,040, $ 14,850 and $ 13,660 (fibonacci retracement levels 0.382, 0.5 and 0.618).

BTC’s shorter-term move shows price deviated (red circle below) above resistance at $ 19,400, before falling back below resistance. The price is now looking to move above this resistance again.

Although the short term technical indicators are bullish, there are potential bearish divergences hidden.

If it goes back to the resistance zone, then the reaction of BTC will be crucial in determining the direction of the next move

In the case of a rejection, which seems to be the most plausible scenario, the BTC could decline to Fibonacci retracement levels 0.5 to 0.618, or between $ 17,620 and $ 18,050.

While the long-term tally is not entirely clear, movement over the past two days indicates a corrective structure in ABC (shown in orange below). BTC is reportedly currently in wave B.

Wave B is another ABC sub-wave structure (in black), with BTC being in sub-wave C. Wave C is expected to rise to $ 19,750, this which corresponds to the 0.9 fibonacci retracement level (required for a plateau) and the resistance line of a possible ascending and parallel channel.

Then the BTC is expected to fall again.

Ethereum and Bitcoin lick the wounds

Ethereum and Bitcoin lick the wounds, Tether goes „brrr“

Bitcoin and Ethereum are battling with psychologically significant brands and records are falling at Tether. The market update.

After the Bitcoin price had set a new all-time high on some crypto stock exchanges, there was profit-taking, which pushed BTC temporarily below $18,200. However, it took less than 2 hours for the crypto reserve by Bitcoin System currency to regain the $19,000 mark – by noon today. At the time of going to press, the Bitcoin exchange rate was 18,933, just under one percent below the previous day’s level.

The crypto currency with the second largest market capitalisation also had to give up its feathers on 1 December. After the long-awaited start of the proof-of-work based Beacon Chain had not only heralded Phase 0 of Ethereum 2.0, but also a small ETH rally, the Ether course also sold off. The 600-US dollar mark, which had been taken by storm, was broken downwards. At the time of going to press, the ether exchange rate recovered slightly, but was unable to overcome the 600 US dollar hurdle on a sustained basis.

DeFi at record level despite sales

Meanwhile, the decentralised financial services sector (DeFi) has also recovered from its nosedive in the last week of November. According to the DeFi portal DeFi Pulse, crypto-currencies with a value of 14.5 billion US dollars are stored in the DeFi ecosystem. As of the editorial deadline, TVL (Total Value Locked) is well on its way to catching up on the all-time high of 14.73 billion US dollars which was only set on 1 December.

While the top 5 have consistently suffered losses in the single-digit percentage range, the daily winners include DDEX (+70 percent), Kyber (+40 percent) and SushiSwap (+10 percent).

Tether prints USDT in record time

Bitcoin, Ethereum and the DeFi sector remain volatile, while the Stablecoin Tether sector is showing increasingly rapid growth. Since the end of September, demand for USDT appears to have risen sharply; so much so that its issuers have increased the timing for „embossing“ new coins. The market capitalisation of USDT is now almost 20 billion US dollars – in January it was less than five billion.

While the growing demand for „price-stable“ USDT tokens can be seen as an indication of increased capital inflow into the crypto sector, the rapid pace at which new tether units are being flushed into the market is also raising concerns. For example, parts of the crypto community have doubts that the tether reserve is large enough to cover all USDT tokens. Tether CTO Paolo Ardoino’s tweet on the recent growth spurt of the stable coin has also provided answers that are otherwise only available to politically legitimate money printers (aka central banks):

pic.twitter.com/OFfM0R14KN
– Crypto 8008 (@crypto8008) November 26, 2020

The mistrust of Tether is mainly based on the fact that the company has to this day carried out a comprehensive audit of its finances.

The indecrottable Nouriel Robini atomizes (again) the Bitcoin “disaster”: “Zero, it will collapse to zero”

It was too good to last – Catastrophic Nouriel Roubini, nicknamed „Dr. Doom“, won’t have been kind to our poor Bitcoin (BTC) for very long. Between the insults at retail crypto investors and the hellish promise of BTC going back to zero, the Bitcoin pessimist is in great shape .

Summary: „Bitcoin is nothing at all“

We had a tiny ray of hope for Nouriel Roubini in early November, when our beloved Armageddon predictor made what almost sounded like a compliment to Bitcoin . Indeed, he then went so far as to say that the king of cryptos would be “ perhaps a partial store of value“ .

But real life doesn’t always end as well as Christmas tales, like the Grinch . So, at the end of last week, instead of the traditional warm Thanksgiving messages, Nouriel Roubini started to openly criticize the cryptosphere.

Dr. Doom, visibly monomaniac of Bitcoin, has published no less than 12 tweets in a row to express his fierce hatred, including this one:

“Bitcoin is not an asset because it has NO intrinsic value. Assets provide either income, capital gains, or actual utility or use of some sort. Stocks, bonds, real estate and other assets provide both income (dividends, interest, rents) and capital gains (…). „

In terms of interest generation , we see that Nouriel Roubini was really not at all interested in the very interesting rates of return that decentralized finance (DeFi) now offers .

Private crypto-investors, „manipulated idiots“

Obviously, it was the small drop in the price of Bitcoin (after all, a very normal correction after such a rise) at the end of last week that woke up the hellish flames of Nouriel Roubini.

“Today (November 26), as BTC moved closer to its all-time high (ATH), the price slumped 13%, following the same bunch of idiots of retail investors who, after having FOMO, were deceived by the manipulations of the whales (the big investors). (…) So, on the occasion of Thanksgiving, do not be a joke / turkey who is duped by manipulative whales (…). Stay away from this cesspool of thousands of worthless shitcoins! “

When we told you that Dr. Doom was in great shape … But let’s not be kidding! The poor man must already eat his hat since at the time of this writing, the price of Bitcoin is once again approaching $ 20,000 on November 30 (at $ 19,494 per BTC to be more precise, on time to publish this article).