Price analysis 10/28: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA

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3 years ago

BTC $13,182

ETH $388

LTC $55.83

XRP $0.24

BCH $267

XMR $124.0

DASH $67

EOS $2.66

ZEC $56

ADA $0.099

NEO $15.62

BNB $30

XLM $0.077

USDT $1.0000

MIOTA $0.27

Rakesh Upadhyay

RAKESH UPADHYAY

13 HOURS AGO

Price analysis 10/28: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA

Altcoins took a serious hit as Bitcoin dropped below $13K today, meanwhile, BTC’s macrostructure remains bullish.

12766

11:35

Price analysis 10/28: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA PRICE ANALYSIS

The equity markets across Europe closed deeply in the red and the U.S. markets are also witnessing intense selling pressure as investors fear a rise in COVID-19 cases could stall the fragile economic recovery. This increasingly negative sentiment has also dragged gold and Bitcoin (BTC) prices lower, while the U.S. dollar currency index has risen.

In 2020, Bitcoin has largely acted as an uncorrelated asset, barring short periods of time when it has followed the S&P 500 or gold. Therefore, investors should take a longer-term view rather than panicking due to short-term volatility.

Daily cryptocurrency market performance. Source: Coin360

A survey by Grayscale has shown that the number of investors who are familiar with Bitcoin has risen from 53% in 2019 to 62% this year. The poll also showed that about 55% of the respondents were interested in Bitcoin investment products this year, compared to 36% in 2019.

With greater participation from both retail and institutional investors, the crypto markets may become less prone to manipulation and that could in turn attract more investments.

When an asset enters a correction, knowing the strong support levels can help traders to make a more informed decision. Therefore, let’s study the charts of the top-10 cryptocurrencies in order to spot the critical levels that may attract buyers.

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BTC/USD

Bitcoin (BTC) has turned down sharply from just under the critical overhead resistance of $13,973.50, which suggests profit-booking by short-term traders and likely initiation of short positions by the aggressive bears.

BTC/USD daily chart. Source: TradingView

If the price closes below $13,041.5, the BTC/USD pair would form a bearish engulfing candlestick pattern, which is a warning sign that the trend may be reversing. The first stop on the downside is the 20-day exponential moving average ($12,289).

A break below this support will suggest that the bullish momentum has weakened and that could intensify selling, dragging the price to the 50-day simple moving average ($11,238)

However, as the moving averages are sloping up and the relative strength index has corrected its overbought levels, the bulls are likely to buy the dips to the 20-day EMA.

A strong bounce off this support will suggest that the sentiment is bullish as traders are buying on dips.

ETH/USD

The rebound off the 20-day EMA ($385) on Oct. 26 could not sustain the higher levels on Oct. 27 as the bears sold on recovery. This has dragged Ether (ETH) below the 20-day EMA today.

ETH/USD daily chart. Source: TradingView

If the bears sustain the price below the 20-day EMA, a drop to the uptrend line is likely. A break below this support could drag the ETH/USD pair to the next support at $333 and then to $308.096.

However, if the price recovers from the current levels and rises above the $400–$420 resistance zone, it will signal an advantage to the bulls. Above $420, the pair could start its journey to $450 and then to $488.134.

XRP/USD

XRP continues to trade inside a range as the flat moving averages and the RSI just below the midpoint suggest a balance between supply and demand. If the bears can sink and sustain the price below the 50-day SMA ($0.245), the altcoin could drop to $0.2295.

XRP/USD daily chart. Source: TradingView

A break below the $0.2295–$0.2197 support zone could tilt the advantage in favor of the bears. However, if the price rebounds off the support zone, the XRP/USD pair could extend its stay inside the range for a few more days.

Contrary to this assumption, if the pair rebounds off the 50-day SMA and rises above the $0.26 resistance, it will indicate that bulls are in command. Above $0.26, the pair could start an up-move that may reach $0.30.

BCH/USD

Bitcoin Cash (BCH) bounced off the 20-day EMA ($256) on Oct. 26 and the bulls are currently trying to propel the price above the overhead resistance at $280. If they can pull it off, the altcoin could rise to $300 and then to $326.30.

BCH/USD daily chart. Source: TradingView

The upsloping moving averages and the RSI above 62 suggests that the bulls are in control. However, the RSI has formed a negative divergence and a possible symmetrical triangle.

If the RSI breaks above the triangle, it will increase the possibility of an up-move in the BCH/USD pair. Conversely, if the RSI breaks below the triangle, it will suggest the start of a pullback.

The failure to drive the price above $280 could attract profit-booking by short-term traders. A break below the 20-day EMA ($256) will signal that the momentum has weakened.

LINK/USD

The rebound off the $11.199 support on Oct. 26 was short-lived as the bulls could not sustain the higher levels on Oct. 27. The bears have jumped on this opportunity and are currently attempting to sink Chainlink (LINK) back below $11.199.

LINK/USD daily chart. Source: TradingView

If they succeed, the LINK/USD pair could drop to the trendline. A break below the trendline could signal an advantage to the bears that may result in a fall to $8.38.

On the contrary, if the pair rebounds off the current levels, the bulls will once again try to push the price above $13.28 and extend the recovery to $18.

The indicators are not giving any clear signals as both moving averages have flattened out and the RSI has dropped close to the halfway mark, suggesting a balance between supply and demand.

BNB/USD

The bulls pushed Binance Coin (BNB) above the $32 resistance on Oct. 27 but could not sustain the higher levels. This shows that the bears are defending the zone between $32–$33.3888.

BNB/USD daily chart. Source: TradingView

The failure to sustain above $32 could have attracted profit booking from the short-term traders. If the bears sink the price below the 20-day EMA ($29.94), the BNB/USD pair may drop to the 50-day SMA ($28.24).

However, the trend remains up as both moving averages are sloping up and the RSI is in the positive territory. Therefore, the bulls may attempt to buy on dips to the moving averages. The uptrend will resume on a close above $33.3888.

On the other hand, if the bears sink the price below the 50-day SMA, it may increase the possibility of a deeper correction to $26 and then 22.

DOT/USD

The bulls pushed Polkadot (DOT) above the $4.6112 resistance on Oct. 26 but the sellers were in no mood to relent and they aggressively defended the overhead resistance at $5 on Oct. 27.

DOT/USD daily chart. Source: TradingView

The failure to sustain above $4.6112 has again dragged the price down to the neckline of the inverse head and shoulders pattern.

If the DOT/USD pair rebounds off this support, the bulls will again try to propel the price above $5 and reach the overhead resistance at $5.5899.

Contrary to this assumption, if the bears sink the price below the neckline, the pair may again drop to $3.5321. A bounce off this support could keep the pair range-bound for a few days.

LTC/USD

Litecoin (LTC) bounced off the 38.2% Fibonacci retracement level of $54.9361 on Oct. 26, which showed that the bulls were not willing to wait for lower levels to buy as they expected the uptrend to resume.

LTC/USD daily chart. Source: TradingView

Although the bulls had pushed the LTC/USD pair above $60 today, they could not sustain the higher levels. This attracted aggressive selling from short-term traders and the price again dropped to the 38.2% retracement level.

If the bears can sink the pair below $54.9361, the correction may extend to $53.2915 and then to $51.

However, if the pair again rebounds off $54.9361, a few days of range-bound action is possible. The pair is likely to pick up momentum after the price sustains above $60.

BSV/USD

The bulls purchased the dip to the breakout level of the symmetrical triangle on Oct. 26 but they could not push Bitcoin SV (BSV) above the $180–$185.14 overhead resistance zone on Oct. 27 and start a new uptrend.

BSV/USD daily chart. Source: TradingView

The failure to rise above the overhead resistance could have attracted selling by the short-term bulls and the aggressive bears. As a result, the BSV/USD pair has again dropped down to the 20-day EMA ($168).

If the pair rebounds off the 20-day EMA, the bulls will again attempt to propel the price above the overhead resistance zone.

Conversely, if the bears sink the price below the moving averages, the pair could may to the uptrend line of the triangle and then to $146.20.

ADA/USD

The long tail on the Oct. 26 candlestick shows that the bulls purchased the dip to the 50-day SMA ($0.098). However, the buyers could not build upon this strength and sustain Cardano (ADA) above the 20-day EMA ($0.103) on Oct. 27.

ADA/USD daily chart. Source: TradingView

This shows that demand dries up at higher levels. The bears pounced on this sign of weakness and resumed their selling today and have managed to sink the ADA/USD pair below the 50-day SMA.

If the price sustains below this level, the next support is at $0.090 and if this support also gives way, the decline could extend to the critical support at $0.0755701.

With the latest fall, the 20-day EMA has started to turn down and the RSI has dipped into the negative zone, indicating an advantage to the bears.

This bearish view will be invalidated if the pair turns around from the current levels or the immediate support and rises above $0.104044.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

#Bitcoin Price

#Ethereum Price

#Bitcoin Cash

#Cardano

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William Suberg

WILLIAM SUBERG

50 MINUTES AGO

‘Price follows hash rate’ — Bitcoin fundamentals drop may delay $14K

Echoes of June appear among miners, but the future could likewise produce a price rebound if history repeats itself.

1001

2:55

‘Price follows hash rate’ — Bitcoin fundamentals drop may delay $14K MARKETS NEWS

Bitcoin (BTC) could see further downward price pressure this week as network difficulty is set to drop the most in five months.

Data from data resource BTC.com estimates that difficulty will drop by 8.3% at the next automatic readjustment in four days’ time.

Difficulty set to repeat June readjustment

The mining difficulty is an essential measure of the competition among miners in finding block subsidies, and by extension, the overall health of the mining sector.

Automatic readjustments meanwhile fulfill an even more important function, allowing Bitcoin to sustain itself regardless of price action or other circumstances.

In June, difficulty dipped 9.3% following a previous 6.3% decrease, the latter marking the culmination of miner upheaval after Bitcoin’s block subsidy halving event in May.

The halving cut the block subsidy by 50%, producing a drastically different profit dynamic for miners operating on tight margins or with older equipment. The two consecutive downward adjustments opened up opportunities for less efficient miners once again, and difficulty corrected upward by almost 15% thereafter.

The latest fall, meanwhile, has been attributed to the end of the so-called “hydro season” for Chinese miners. This occurs each October, when rainfall in China’s Sichuan province eases and cheaper hydroelectricity dries up, pushing up costs.

Claiming Bitcoin’s final price hurdle

The knock-on effect, coming at a time when Bitcoin tried and failed to crack $14,000 resistance for the first time in almost 18 months, may be a longer withdrawal from that essential level.

As Cointelegraph reported, hardly any technical resistance levels lie between $14,000 and Bitcoin’s all-time highs of $20,000 from 2017.

On Tuesday, developer Matt Odell summarized the process on Twitter:

“Rainy season ended in china -> increased energy prices for hydro -> hash rate falling as miners transition to cheaper power -> blocks mined less frequently until difficulty adjustment.”

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Odell was discussing another result of reduced miner activity — larger Bitcoin transaction fees, which have spiked almost 200%.

After June, price action slowly fell in line with both difficulty and Bitcoin network hash rate. Thereafter, as both metrics picked up, price staged a comeback of its own, bolstering a popular theory that price follows fundamentals and, in particular, hash rate.

Bitcoin 7-day average hash rate 60-day chart. Source: Blockchain

Zooming out, Lina Seiche, managing director of Bitcoin media outlet BTC Times, drew attention to the hash rate’s overall strength.

“The #Bitcoin hash rate is up 18% since the third halving, 9,300% since the second halving, and 554,000,000% since the first halving,” she tweeted this week.

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Marcel Pechman

MARCEL PECHMAN

10 HOURS AGO

Bitcoin bulls set to defend $13K as $450M in BTC futures expire Friday

$450 million in Bitcoin futures are set to expire on Friday and data shows bullish pro traders are prepared to defend $13K.

13945

5:25

Bitcoin bulls set to defend $13K as $450M in BTC futures expire Friday MARKET ANALYSIS

A total of 62K Bitcoin (BTC) options are set to expire this Friday, and this is equivalent to $830 million in open interest. These massive numbers fail to reflect the fact that 58% of these options are now deemed worthless.

As we approach the expiry date, call (buy) options above the current level begin to depreciate very fast. It is not worth paying $20 for the opportunity to buy BTC at $14.5K on Friday morning. Therefore, rolling options to the next month is not that helpful.

October BTC options pricing. Source: Deribit

With less than 48 hours to October's expiry, call (buy) options above $14.5K and above face slim odds. The same can be said for the $11.5K put (sell) options which are currently trading below $10 apiece.

Deribit leads with a 70% market share of the options that are still worthy. Currently, there are $134 million worth of call (buy) options from $11.5K to $13.5K, stacked against $45.5 million in put (sell) options from $12.5K to $14.5K. Thus, bulls favor bears by a ratio of 3:1.

Chicago Mercantile Exchange (CME) holds a 26% market share among the October BTC options that still count. The call (buy) options near the current market level totals $72 million, whereas the put (sell) is less than $1 million. This movement is not unlike past expiries as CME option traders are usually extremely bullish.

Therefore, there's currently a $160 million imbalance favoring bulls on BTC option markets. This is a relevant number considering the expiry happens at a set time. OKEx and Deribit options and futures are set to expire at 8:00 AM (UTC) on October 30, and the CME a few hours later at 4:00 PM (UTC).

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Futures open interest typically falls near expiry

Many traders believe that Bitcoin futures $5.4 billion open interest is also set to expire on Friday. Most of those contracts are either perpetual (inverse swap) or set for a later date.

This time around, CME leads with $360 million open interest for October, but there's a catch. This notional will drastically reduce ahead of expiry as traders move their positions for upcoming months. As proof of this movement, the CME’s outstanding October open interest was cut by $130 million yesterday.

No matter how big an investor’s win or loss is, rolling over the position for the next expiry is viable. Unlike options markets, futures contracts don't devalue nearing their last trading day.

Futures margin is adjusted daily, meaning, the contract buyer (long) gets paid by the seller (short) when Bitcoin trades up, and the opposite happens if BTC price closes down. Both sides can benefit from rolling over their positions, as long as there's enough margin to maintain it.

For professional traders, futures premium is the most useful indicator to gauge how bullish or bearish those investors are. At the time of writing, OKEx leads the remaining exchanges with $69 million set to expire on Friday, followed by Huobi's $23 million.

This indicator is known as basis, and it usually ranges between a 5% to 15% annualized rate. Whenever the premium is positive, the market is characterized as being in contango. Meanwhile, levels below 5% indicate modest bearishness.

A negative future contracts premium is highly unusual and is usually related to liquidity issues.

Bitcoin 1-month futures annualized premium. Source: Skew

As the above chart shows, investors were very bullish in August, as the 1-month futures contract traded with a 25% or higher premium. That was caused by a 30% Bitcoin hike from $9.1K to $11.9K.

The basis indicator currently stands near 14%, on the verge of a very bullish zone. One must factor in that any leveraged bullish position opened in the past six months is currently gaining.

Bitcoin futures aggregate open interest. Source: Skew

Meanwhile, BTC futures open interest more than doubled to $5.4 billion from $2.6 billion back in April. Therefore, it is safe to conclude that investors are well prepared to defend the current $13K support level.

Both derivatives contracts are supporting the market’s current strength. Aside from the $160 million options expiry imbalance, futures contract buyers are holding a comfortable position.

Furthermore, as Bitcoin spiked from $11.3K just twelve days ago, short-sellers have been suffering and watching their balances decrease every day.

As for Friday's expiry, some added volatility is to be expected as usual, but as far as the futures premium can tell, it’s unlikely that the bears will have a chance to re-establish control of the markets.

#Bitcoin Price

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Joseph Young

JOSEPH YOUNG

18 HOURS AGO

3 reasons why Bitcoin price suddenly dropping below $13,000 isn't bearish

The price of Bitcoin dipped below $13,000 on Wednesday, but despite the 7% drop in 11 hours, the market sentiment remains positive for three key reasons.

17723

0:00

3 reasons why Bitcoin price suddenly dropping below $13,000 isn't bearish MARKET UPDATE

The price of Bitcoin (BTC) fell below $13,000 on Oct. 28 shortly after hitting $13,850 at the day’s peak. Despite the 7% drop in 11 hours, however, the market sentiment remains positive for three key reasons.

First, Bitcoin is still at where it was on Oct. 27, merely 24 hours ago. Second, BTC rose to $13,850, right below a multiyear resistance area at $13,873. Third, a marketwide drop was expected due to declining stablecoin inflows into exchanges.

Bitcoin drops to where it was yesterday

In the last two days, the price of Bitcoin rallied 8.5% from $13,783 to $13,850 on Coinbase. The move came after a month-long uptrend during which BTC rose from around $10,200 to $13,850.

Now, on high time frame charts — like the daily chart, for example — BTC price is hovering above a key short-term moving average.

The recent pattern of Bitcoin following up each uptrend with a consolidation phase makes the ongoing rally sustainable.

The daily Bitcoin price chart with funding rates. Source: TradingView.com

The strength of the spot market over the derivatives market also indicates that the uptrend is strong and healthy. A pseudonymous trader known as “Byzantine General” said:

“A higher spot price & higher spot volume (relatively speaking) is considered bullish because it means that the rally is based on actual buying instead of degenerates gambling on derivatives.”

The $13,873 level is a multiyear resistance area

Bitcoin peaked at around $13,900 in July 2019 across major exchanges. As Cointelegraph reported, many traders pinpointed the $13,875 level as the pivotal resistance area in the short term, partially for this reason.

If BTC had continuously risen beyond $13,875 without any pullback, it would have caused the rally to become massively overheated. In the medium term, that would have raised the probability of deep pullback, or as some on-chain analysts call it, a “hell candle.”

BTC decline coincided with lack of stablecoin inflows

Prior to the short-term correction of Bitcoin, CryptoQuant CEO Ki-Young Ju warned that stablecoin inflows into exchanges were declining.

The inflow of stablecoins is an accurate metric to gauge buyer demand because stablecoins, like Tether (USDT), account for a large portion of the cryptocurrency market’s volume.

Stablecoin inflows into exchanges sharply drop. Source: CryptoQuant

According to CoinMarketCap, the daily volume of Tether exceeds $59 billion across major exchanges. Purely in terms of daily volume, Tether is the most traded cryptocurrency in the global market. A few hours before the BTC drop occurred, Ju tweeted:

“Fewer people are depositing #stablecoins to exchanges. BTC Buying power is weakening in the short-term(72h).”

The drop in stablecoin inflows might have triggered a sharp Bitcoin pullback because buyers and sellers were intensely battling over the past week. Some miners and whales were selling, while new inflows continuously offset the selling pressure.

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William Suberg

WILLIAM SUBERG

21 HOURS AGO

Bitcoin price drops to $13.3K after matching peak of 2019 bull run

Briefly challenging $14,000 produced major volatility for BTC/USD, which subsequently retreated by over $500 in hours.

16323

1:55

Bitcoin price drops to $13.3K after matching peak of 2019 bull run MARKET UPDATE

Bitcoin (BTC) retreated to $13,300 on Oct. 28 after a retest of its 2019 resistance levels was met with rejection.

Cryptocurrency market overview from Coin360

Data from Cointelegraph Markets, Coin360 and TradingView show volatility rising during Wednesday after BTC/USD hit $13,850.

After failing to reach $14,000, uncertain conditions prevailed, culminating in a brief dip to $13,300 at press time.

A subsequent rebound saw $13,400 become a focal point, with sudden upward and downward movements continuing to characterize the market.

BTC/USD 1-day chart. Source: TradingView

Wednesday saw an unusually large transaction to exchange Coinbase from an unknown wallet, a possible sign of an incoming sale involving 1,072 BTC ($14.6 million). This followed multiple large transactions for identical amounts, as well as larger ones tracked by monitoring resource Whale Alert.

As Cointelegraph reported, a $1 billion transaction on Tuesday appeared to be tied to Coinbase.

For analysts, however, a clear distinction was emerging between short-term price action and its longer-term implications. For some, Bitcoin had already proven its maturity as an asset, and further gains were all but guaranteed in the coming months.

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As Cointelegraph noted, Real Vision CEO Raoul Pal publicly stated that Bitcoin would challenge its $20,000 all-time highs within three months.

Cointelegraph Markets analyst Michaël van de Poppe meanwhile highlighted the significance of overcoming $14,000 and flipping it to support. By contrast, $13,000 should now form a major support zone.

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BTC $13,182

ETH $388

LTC $55.83

XRP $0.24

BCH $267

XMR $124.0

DASH $67

EOS $2.66

ZEC $56

ADA $0.099

NEO $15.62

BNB $30

XLM $0.077

USDT $1.0000

MIOTA $0.27

Rakesh Upadhyay

RAKESH UPADHYAY

13 HOURS AGO

Price analysis 10/28: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA

Altcoins took a serious hit as Bitcoin dropped below $13K today, meanwhile, BTC’s macrostructure remains bullish.

12766

11:35

Price analysis 10/28: BTC, ETH, XRP, BCH, LINK, BNB, DOT, LTC, BSV, ADA PRICE ANALYSIS

Daily cryptocurrency market performance. Source: Coin360

With greater participation from both retail and institutional investors, the crypto markets may become less prone to manipulation and that could in turn attract more investments.

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BTC/USD

BTC/USD daily chart. Source: TradingView

A break below this support will suggest that the bullish momentum has weakened and that could intensify selling, dragging the price to the 50-day simple moving average ($11,238)

However, as the moving averages are sloping up and the relative strength index has corrected its overbought levels, the bulls are likely to buy the dips to the 20-day EMA.

A strong bounce off this support will suggest that the sentiment is bullish as traders are buying on dips.

ETH/USD

The rebound off the 20-day EMA ($385) on Oct. 26 could not sustain the higher levels on Oct. 27 as the bears sold on recovery. This has dragged Ether (ETH) below the 20-day EMA today.

ETH/USD daily chart. Source: TradingView

If the bears sustain the price below the 20-day EMA, a drop to the uptrend line is likely. A break below this support could drag the ETH/USD pair to the next support at $333 and then to $308.096.

XRP/USD

XRP/USD daily chart. Source: TradingView

BCH/USD

BCH/USD daily chart. Source: TradingView

The upsloping moving averages and the RSI above 62 suggests that the bulls are in control. However, the RSI has formed a negative divergence and a possible symmetrical triangle.

If the RSI breaks above the triangle, it will increase the possibility of an up-move in the BCH/USD pair. Conversely, if the RSI breaks below the triangle, it will suggest the start of a pullback.

The failure to drive the price above $280 could attract profit-booking by short-term traders. A break below the 20-day EMA ($256) will signal that the momentum has weakened.

LINK/USD

LINK/USD daily chart. Source: TradingView

If they succeed, the LINK/USD pair could drop to the trendline. A break below the trendline could signal an advantage to the bears that may result in a fall to $8.38.

On the contrary, if the pair rebounds off the current levels, the bulls will once again try to push the price above $13.28 and extend the recovery to $18.

The indicators are not giving any clear signals as both moving averages have flattened out and the RSI has dropped close to the halfway mark, suggesting a balance between supply and demand.

BNB/USD

The bulls pushed Binance Coin (BNB) above the $32 resistance on Oct. 27 but could not sustain the higher levels. This shows that the bears are defending the zone between $32–$33.3888.

BNB/USD daily chart. Source: TradingView

On the other hand, if the bears sink the price below the 50-day SMA, it may increase the possibility of a deeper correction to $26 and then 22.

DOT/USD

The bulls pushed Polkadot (DOT) above the $4.6112 resistance on Oct. 26 but the sellers were in no mood to relent and they aggressively defended the overhead resistance at $5 on Oct. 27.

DOT/USD daily chart. Source: TradingView

The failure to sustain above $4.6112 has again dragged the price down to the neckline of the inverse head and shoulders pattern.

If the DOT/USD pair rebounds off this support, the bulls will again try to propel the price above $5 and reach the overhead resistance at $5.5899.

Contrary to this assumption, if the bears sink the price below the neckline, the pair may again drop to $3.5321. A bounce off this support could keep the pair range-bound for a few days.

LTC/USD

LTC/USD daily chart. Source: TradingView

If the bears can sink the pair below $54.9361, the correction may extend to $53.2915 and then to $51.

However, if the pair again rebounds off $54.9361, a few days of range-bound action is possible. The pair is likely to pick up momentum after the price sustains above $60.

BSV/USD

BSV/USD daily chart. Source: TradingView

If the pair rebounds off the 20-day EMA, the bulls will again attempt to propel the price above the overhead resistance zone.

Conversely, if the bears sink the price below the moving averages, the pair could may to the uptrend line of the triangle and then to $146.20.

ADA/USD

ADA/USD daily chart. Source: TradingView

This shows that demand dries up at higher levels. The bears pounced on this sign of weakness and resumed their selling today and have managed to sink the ADA/USD pair below the 50-day SMA.

If the price sustains below this level, the next support is at $0.090 and if this support also gives way, the decline could extend to the critical support at $0.0755701.

With the latest fall, the 20-day EMA has started to turn down and the RSI has dipped into the negative zone, indicating an advantage to the bears.

This bearish view will be invalidated if the pair turns around from the current levels or the immediate support and rises above $0.104044.

Market data is provided by HitBTC exchange.

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William Suberg

WILLIAM SUBERG

50 MINUTES AGO

‘Price follows hash rate’ — Bitcoin fundamentals drop may delay $14K

Echoes of June appear among miners, but the future could likewise produce a price rebound if history repeats itself.

1001

2:55

‘Price follows hash rate’ — Bitcoin fundamentals drop may delay $14K MARKETS NEWS

Bitcoin (BTC) could see further downward price pressure this week as network difficulty is set to drop the most in five months.

Data from data resource BTC.com estimates that difficulty will drop by 8.3% at the next automatic readjustment in four days’ time.

Difficulty set to repeat June readjustment

The mining difficulty is an essential measure of the competition among miners in finding block subsidies, and by extension, the overall health of the mining sector.

Automatic readjustments meanwhile fulfill an even more important function, allowing Bitcoin to sustain itself regardless of price action or other circumstances.

In June, difficulty dipped 9.3% following a previous 6.3% decrease, the latter marking the culmination of miner upheaval after Bitcoin’s block subsidy halving event in May.

Claiming Bitcoin’s final price hurdle

The knock-on effect, coming at a time when Bitcoin tried and failed to crack $14,000 resistance for the first time in almost 18 months, may be a longer withdrawal from that essential level.

As Cointelegraph reported, hardly any technical resistance levels lie between $14,000 and Bitcoin’s all-time highs of $20,000 from 2017.

On Tuesday, developer Matt Odell summarized the process on Twitter:

“Rainy season ended in china -> increased energy prices for hydro -> hash rate falling as miners transition to cheaper power -> blocks mined less frequently until difficulty adjustment.”

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Odell was discussing another result of reduced miner activity — larger Bitcoin transaction fees, which have spiked almost 200%.

Bitcoin 7-day average hash rate 60-day chart. Source: Blockchain

Zooming out, Lina Seiche, managing director of Bitcoin media outlet BTC Times, drew attention to the hash rate’s overall strength.

“The #Bitcoin hash rate is up 18% since the third halving, 9,300% since the second halving, and 554,000,000% since the first halving,” she tweeted this week.

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Marcel Pechman

MARCEL PECHMAN

10 HOURS AGO

Bitcoin bulls set to defend $13K as $450M in BTC futures expire Friday

$450 million in Bitcoin futures are set to expire on Friday and data shows bullish pro traders are prepared to defend $13K.

13945

5:25

Bitcoin bulls set to defend $13K as $450M in BTC futures expire Friday MARKET ANALYSIS

October BTC options pricing. Source: Deribit

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Futures open interest typically falls near expiry

Many traders believe that Bitcoin futures $5.4 billion open interest is also set to expire on Friday. Most of those contracts are either perpetual (inverse swap) or set for a later date.

No matter how big an investor’s win or loss is, rolling over the position for the next expiry is viable. Unlike options markets, futures contracts don't devalue nearing their last trading day.

A negative future contracts premium is highly unusual and is usually related to liquidity issues.

Bitcoin 1-month futures annualized premium. Source: Skew

As the above chart shows, investors were very bullish in August, as the 1-month futures contract traded with a 25% or higher premium. That was caused by a 30% Bitcoin hike from $9.1K to $11.9K.

The basis indicator currently stands near 14%, on the verge of a very bullish zone. One must factor in that any leveraged bullish position opened in the past six months is currently gaining.

Bitcoin futures aggregate open interest. Source: Skew

Both derivatives contracts are supporting the market’s current strength. Aside from the $160 million options expiry imbalance, futures contract buyers are holding a comfortable position.

Furthermore, as Bitcoin spiked from $11.3K just twelve days ago, short-sellers have been suffering and watching their balances decrease every day.

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Joseph Young

JOSEPH YOUNG

18 HOURS AGO

3 reasons why Bitcoin price suddenly dropping below $13,000 isn't bearish

The price of Bitcoin dipped below $13,000 on Wednesday, but despite the 7% drop in 11 hours, the market sentiment remains positive for three key reasons.

17723

0:00

3 reasons why Bitcoin price suddenly dropping below $13,000 isn't bearish MARKET UPDATE

Bitcoin drops to where it was yesterday

In the last two days, the price of Bitcoin rallied 8.5% from $13,783 to $13,850 on Coinbase. The move came after a month-long uptrend during which BTC rose from around $10,200 to $13,850.

Now, on high time frame charts — like the daily chart, for example — BTC price is hovering above a key short-term moving average.

The recent pattern of Bitcoin following up each uptrend with a consolidation phase makes the ongoing rally sustainable.

The daily Bitcoin price chart with funding rates. Source: TradingView.com

The strength of the spot market over the derivatives market also indicates that the uptrend is strong and healthy. A pseudonymous trader known as “Byzantine General” said:

“A higher spot price & higher spot volume (relatively speaking) is considered bullish because it means that the rally is based on actual buying instead of degenerates gambling on derivatives.”

The $13,873 level is a multiyear resistance area

BTC decline coincided with lack of stablecoin inflows

Prior to the short-term correction of Bitcoin, CryptoQuant CEO Ki-Young Ju warned that stablecoin inflows into exchanges were declining.

The inflow of stablecoins is an accurate metric to gauge buyer demand because stablecoins, like Tether (USDT), account for a large portion of the cryptocurrency market’s volume.

Stablecoin inflows into exchanges sharply drop. Source: CryptoQuant

“Fewer people are depositing #stablecoins to exchanges. BTC Buying power is weakening in the short-term(72h).”

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William Suberg

WILLIAM SUBERG

21 HOURS AGO

Bitcoin price drops to $13.3K after matching peak of 2019 bull run

Briefly challenging $14,000 produced major volatility for BTC/USD, which subsequently retreated by over $500 in hours.

16323

1:55

Bitcoin price drops to $13.3K after matching peak of 2019 bull run MARKET UPDATE

Bitcoin (BTC) retreated to $13,300 on Oct. 28 after a retest of its 2019 resistance levels was met with rejection.

Cryptocurrency market overview from Coin360

Data from Cointelegraph Markets, Coin360 and TradingView show volatility rising during Wednesday after BTC/USD hit $13,850.

After failing to reach $14,000, uncertain conditions prevailed, culminating in a brief dip to $13,300 at press time.

A subsequent rebound saw $13,400 become a focal point, with sudden upward and downward movements continuing to characterize the market.

BTC/USD 1-day chart. Source: TradingView

As Cointelegraph reported, a $1 billion transaction on Tuesday appeared to be tied to Coinbase.

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As Cointelegraph noted, Real Vision CEO Raoul Pal publicly stated that Bitcoin would challenge its $20,000 all-time highs within three months.

Cointelegraph Markets analyst Michaël van de Poppe meanwhile highlighted the significance of overcoming $14,000 and flipping it to support. By contrast, $13,000 should now form a major support zone.

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