Robert Hernandez: January 2021

Sunday 31 January 2021

Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP

Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.

Dogecoin’s (DOGE) recent pump and dump caused several new traders who bought due to FOMO to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing.

A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan. 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions.

Crypto market data daily view. Source:Coin360

Stack Funds head of research Lennard Neo believes the Bitcoin miners are selling on rallies and that trend may continue as the Chinese New Year holiday approaches. Neo expects Bitcoin’s price to remain volatile in the near term.

Even as Bitcoin’s price consolidates, the decentralized finance tokens continue to surge, which suggests traders’ focus has shifted to the DeFi space. Let’s analyze the charts of the top-5 cryptocurrencies that could trend in the next few days.

BTC/USD

Bitcoin’s long wick on Jan. 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick pattern on Jan. 30, indicating indecision among the bulls and the bears.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to push the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).

If they succeed, the BTC/USD pair may drop to the 50-day simple moving average ($30,631) and then to $28,850.

A breakdown and close below $28,850 will complete the bearish descending triangle pattern that has a target objective at $15,741. However, it is unlikely to be a straight fall because the bulls will try to arrest the decline at the 50% Fibonacci retracement level at $25,897.42 and again at the 61.8% retracement at $22,106.73.

This negative view will invalidate if the price turns up from the current level or rebounds off the $28,850 support and sustains above the downtrend line. Such a move will suggest strong accumulation at lower levels, which could result in a rise to $40,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the breakout above the downtrend line met with strong selling pressure and the price quickly retracted back into the triangle.

The failure of the bulls to push the price back above the downtrend line has attracted selling and the bears have pulled the price below the 20-EMA. The bulls are currently attempting to defend the 50-SMA but if this support also cracks, the pair may start its journey towards $28,850.

This negative view will invalidate if the price rebounds off the current level and rises above the downtrend line. Such a move could push the price to $38,519.63.

ETH/USD

Ether (ETH) broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given up much ground in the past few days. This shows the bulls are accumulating on dips.

ETH/USDT daily chart. Source: TradingView

The ETH/USD pair had formed a Doji candlestick pattern on Jan. 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now drop to the 20-day EMA ($1,253), which is likely to act as strong support.

A bounce off the support will suggest the sentiment remains bullish and traders are buying on dips. The bulls will then try to resume the uptrend. If the bulls can drive the price above the $1,400 to $1,473.096 resistance zone, the pair could rally to $1,675 and then to $2,000.

This bullish view will invalidate if the bears sink the price below the 20-day EMA and the uptrend line. In such a case, the pair may drop to the 50-day SMA ($990).

ETH/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle pattern, which will complete on a breakout and close above $1,440. This bullish setup has a target objective of $1,768.

However, the moving averages have flattened out and the relative strength index (RSI) is just below the midpoint, which suggests a balance between supply and demand.

If the bears sink the price below the support line of the triangle, it will invalidate the pattern. The next support on the downside is the uptrend line and then $1,050.

UNI/USD

Uniswap (UNI) is in a strong uptrend that has pushed the RSI deep into the overbought territory. While the RSI can remain overbought for an extended period, traders should be cautious as corrections from overbought levels can be swift and sharp.

UNI/USDT daily chart. Source: TradingView

The first support on the downside is the 38.2% Fibonacci retracement level at $15.3963. If the price rebounds off this level, it will suggest the bulls are aggressively buying the dips and are not waiting for a deeper correction to enter.

If the bulls can push the price above $20.5612, the UNI/USD pair could rally to $28 and then to $32. Both moving averages are rising and the RSI is above 79, indicating the bulls are in control.

However, if the correction deepens below $15.3963, the next support is at the 20-day EMA ($11.85), which is near the 61.8% Fibonacci retracement level at $12.2054. A deeper fall usually delays the start of the next leg of the uptrend.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has made a flag pattern. If the bulls can push the price above the flag, the uptrend could resume and the pair may rally to $22 and then to $25.

Another possibility is that the pair continues to correct and drop to the 20-EMA. If the price rebounds off this support, it will suggest the sentiment remains positive and the bulls are buying on minor dips.

During the current leg of the uptrend, the price has repeatedly taken support at the 20-EMA. Therefore, a break below the 20-EMA will suggest the bullish sentiment may be waning and could result in a drop to $15.3963 and then to the 50-SMA.

TOM/USD

Cosmos (ATOM) has formed a cup and handle pattern that will complete on a breakout and close above $8.877. If the bulls can propel the price above the $10.20 resistance, the uptrend could begin.

ATOM/USDT daily chart. Source: TradingView

The first target on the upside is $11.151 and the next level to watch out for is $13.554. The rising moving averages and the RSI’s bounce from the midpoint suggest the bulls have the upper hand.

If the bears sink the price below the 20-day EMA ($7.65), the ATOM/USD pair may remain range-bound between $6.603 and $8.877 for a few more days.

The bullish assumption will be negated if the bears sink and sustain the price below the 50-day SMA ($6.4). Such a move may pull the price down to $5.50 and then to $4.50.

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls have pushed the price above the downtrend line of the descending triangle. This has invalidated the bearish setup but the bulls are struggling to thrust the price above the $8.877 resistance.

The flat moving averages and the RSI near the midpoint suggest the pair may remain range-bound between $8.877 and $6.726 for some more time. If the bulls can propel the price above $8.877, the pair could rise to $10.20, while a break below $6.726 will suggest the bears are trying to make a comeback.

COMP/USD

Compound (COMP) completed a rounding bottom pattern on Jan. 29 when it broke and closed above the $272.61 resistance. This reversal setup has a target objective of $464.60.

COMP/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought territory suggest bulls are in command. After the breakout from a pattern, the price usually retraces and retests the breakout level, but if the trend is very strong, it only consolidates or enters a minor correction before resuming the up-move.

If the COMP/USD pair rebounds off $272.61, it will suggest the bulls have flipped the previous resistance into support. That could then act as a launchpad for the next leg of the uptrend.

This positive view will invalidate if the bears sink and sustain the price below $272.61. Such a move will indicate profit-booking at higher levels and a lack of buying on dips.

COMP/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows traders booked profits near $340 but the correction was short-lived as the price turned up from $304.84. If the bulls can now drive the price above $340, the pair may rally to $405.

On the other hand, if the price again turns down from $340, the pair may drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to resume the up-move, but if the bears sink the pair below the 20-day EMA, a drop to $272.61 will be on the cards.

Title: Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Sourced From: cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-eth-uni-atom-comp
Published Date: Sun, 31 Jan 2021 20:20:28 +0000

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Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP
Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP was originally published here https://dailynwssheet.tumblr.com/post/641889983910789120

Is the weakness of Bitcoin after the ‘Elon Musk pump’ hinting at a bull trap?

The price of Bitcoin (BTC) is showing overall weakness as it struggles to establish $34,000 as a support level. Overall, BTC appears to be stagnating without signs of a short-term relief rally, leading traders to be cautious.

One concerning trend is that the volume of Bitcoin has been stagnating along with its price, apart from the “Elon pump” on Jan. 29. This trend indicates that there is an overall drop in buyer demand since the $42,000 top despite BTC hovering in the low $30,000 region.

BTC/USDT 4-hour price chart (Binance). Source: TradingView.com

Bitcoin gets choppy after revisiting $38,000

On Jan. 29, the price of Bitcoin rose to as high as $38,461 on Binance after Tesla CEO and the world’s richest man, Elon Musk, ostensibly showed support for Bitcoin.

However, before this rally, on-chain analysts were already warning that the momentum of Bitcoin was slowing.

Ki Young Ju, the CEO of CryptoQuant, for example, pinpointed the high selling pressure from Bitcoin miners as a sign of a short-term bearish scenario.

Although the price of Bitcoin briefly surged 14%, it snapped back down to sub-$34,000 within 24 hours. Hence, weakening on-chain indicators were likely a warning that BTC would retrace most of its “Elon pump” gains.

Ki wrote before the rally:

“Exchange Whale Ratio hit the eight-month high, meaning $BTC might have a large red candle if the price drops. It’s supposed to be below 85% if this bull-run is legit. Otherwise, it’s likely to be a bull trap.”

Whales likely sold as the price of Bitcoin abruptly surged to the $38,000 resistance level, causing a sharp correction.

With shaky on-chain indicators and some selling pressure coming from miners, traders are also showing caution about longing BTC/USD in the near term.

A pseudonymous trader known as “Salsa Tekila” said that he is not using leverage until Bitcoin breaks out or drops back to $30,000. He said:

“We’re at that point where $BTC is far enough from the 30k for me not to be comfortable longing with any form of leverage but at the same time I wouldn’t short. Therefore being spot long until a big down / legacy open / probably Monday morning is best. NO LEVERAGE”

Meanwhile, another popular pseudonymous trader known as “Byzantine General” argues that the rally is broken. Hence, even if Bitcoin is bullish in the macro picture, more downside is possible until it sees a convincing breakout on lower time frames. He noted:

“The bull run is still on IMO, but the rally is broken. If we re-claim the yearly TWAP we can continue ze pump, but until then it looks kinda meh.”

Bitcoin price chart with TWAP level. Source: TradingView.com, Byzantine General

What to watch out for

Traders and technical analysts are closely observing Bitcoin’s reaction to the $34,500 to $35,000 range.

If Bitcoin breaks out of it with strength, momentum, and high volume, then the probability of a short-term trend reversal rises.

However, if Bitcoin struggles to retest the $34,500 resistance level and continues to stagnate in the $33,000 region, the risk of a further breakdown to the $33,000 support remains.

Crypto Fear and Green Index (78 or “extreme greed”). Source: Digital Assets Data

Additional signs that BTC price could see another pullback include the Crypto Fear and Greed index remaining at “extreme greed” levels and Google searches for “Bitcoin” dropping by 50% since multi-year highs seen earlier this month.

Title: Is the weakness of Bitcoin after the ‘Elon Musk pump’ hinting at a bull trap?
Sourced From: cointelegraph.com/news/is-the-weakness-of-bitcoin-after-the-elon-musk-pump-hinting-at-a-bull-trap
Published Date: Sun, 31 Jan 2021 11:00:00 +0000

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Is the weakness of Bitcoin after the ‘Elon Musk pump’ hinting at a bull trap?
Is the weakness of Bitcoin after the ‘Elon Musk pump’ hinting at a bull trap? was originally published here https://dailynwssheet.tumblr.com/post/641844714374610944

FTX Token (FTT) rallies 105% as interest in derivatives trading grows

FTX is a cryptocurrency derivatives exchange backed by Alameda Research, a quantitative trading firm and crypto liquidity provider.

The exchange launched in April 2019 and offered the usual spot trading, inverse swaps and futures contracts that can be found at other major platforms. By early 2020, the exchange launched its daily and weekly binary BTC options markets.

FTT/USDT daily chart. Source: TradingView

FTT is the exchange’s native token and it’s issued on the Ethereum blockchain. FTT stakers are granted a trading fee discount based on a tiered system and other benefits include bonus votes in their polls and increased airdrop rewards.

The first airdrop took place in August 2020 when 500 million Serum (SRM) tokens were distributed to FTT holders. To differentiate itself from competitors, the users’ collateral is shared in one universal stablecoin wallet.

This means traders can reduce their margin requirements drastically. Numerous leveraged tokens mimicking leveraged ETF stocks have also been listed, including 3x Long Bitcoin and 3x Short Litecoin.

Leveraged tokens are derived from the exchange’s perpetual swap contracts and operate as tradeable ERC-20 tokens that can be withdrawn and traded. These innovative products have made the FTX a popular exchange among investors, as reflected by its rising futures contracts open interest.

Global markets aggregate open interest. Source: coinalyze.net

As shown above, the figure grew by 340% over the past six months, surpassing the $2 billion mark to vastly outperform more established exchanges.

In November 2020, the exchange ventured into tokenized equity trading, albeit not available for its U.S. citizens. Its partner CM-Equity custody the tokens redeemable for the underlying stocks. Interestingly, it’s allowed its users to buy less than one share, which is particularly useful for high-priced stocks like Amazon ($AMZN) and Google ($GOOG).

In December, FTX continued to innovate by launching pre-IPO futures contracts for AirBNB and Coinbase. These contracts allow traders to speculate on what price those companies will list on a stock exchange. The exchange also offers trading for thematic products, including a basket of cannabis-related listed stocks.

By creating multiple markets with enough liquidity provided by its market-making structure, the exchange was able to gather attention from a new client base. More recently, a Wall Street Bets index was launched, including GameStop ($GME), Dogecoin (DOGE), and iShares Silver Trust ($SLV).

Backed by these popular offerings, FTX Token (FTT) price has doubled since the beginning of 2021.

FTX Token (FTT) token price at Binance. Source: TradingView

To further incentivize holding the token, FTX repurchases and burns 33% of all fees generated from the exchange and 10% of its insurance fund net additions. This process will continue until half of the initial 350 million supply are destroyed.

While this may appear like a deflationary schedule, there are 31.25 million tokens allocated to the team, representing at least 17.8% of the targeted 175 million circulating supply. Regardless, considering the current $11.70 token price, its market capitalization after the burn process is completed surpasses $2 billion.

This number represents a 45% discount to Binance Coin’s (BNB) projected 2031 market capitalization, according to data from Messari. This is also roughly in line with the exchanges’ aggregate open interest $4.26 billion to $2.0 billion difference .

Interestingly, Binance has an undisclosed investment in FTX, and this may be creating fewer incentives for direct competition.

Currently, it seems that the market is pricing both tokens at the same valuation. Binance appears to be expanding its ecosystem via its Binance Smart Chain decentralized exchange, their blockchain projects incubator and a successful token launchpad platform.

FTX, on the other hand, is focused on being the market-leader of derivatives products innovation.

Currently all of these projects are producing value for token holders and with the burn schedule and rising popularity among derivatives exchanges it’s possible that FTT will continue to see further price appreciation.

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.

Title: FTX Token (FTT) rallies 105% as interest in derivatives trading grows
Sourced From: cointelegraph.com/news/ftx-token-ftt-rallies-105-as-interest-in-derivatives-trading-grows
Published Date: Sat, 30 Jan 2021 21:45:01 +0000

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FTX Token (FTT) rallies 105% as interest in derivatives trading grows
FTX Token (FTT) rallies 105% as interest in derivatives trading grows was originally published here https://dailynwssheet.tumblr.com/post/641825811135184896

Saturday 30 January 2021

XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’

XRP price underwent a strong 86% breakout in the early trading hours on Jan. 30 as the fourth-ranked cryptocurrency by market cap became the new coin of focus in the r/Wallstreetbets cryptocurrency-focused off-shoot r/Satoshistreetbets.

Data from Cointelegraph Markets and TradingView shows that XRP rose from $0.28 to a peak at $0.51 before profit selling pulled the price back to $0.41.

XRP/USDT 15 minute chart. Source: TradingView

It appears that the antics of the past week which saw r/Wallstreetbets pump GameStop, AMC and Dogecoin (DOGE), have carried over into the weekend as Stellar (XLM) also saw its price pump in tandem with XRP.

After rallying more than 800%, DOGE price is now down 71% from its recent all-time high of $0.078 on Jan. 29. Data from TheTIE also shows that the rally in XRP price coincided with a drastic jump in tweet volume.

XRP price vs. Tweet volume. Source: TheTIE

Stellar (XLM) has also received some attention from r/Satoshistreetbets, resulting in a price spike of 64% on Jan. 27 which saw the price of XLM reach as high as $0.38 before correcting to its current value of $0.318.

XRP’s legal woes may place a damper on the rally

In the past few months, XRP price has been hard hit due to a lawsuit filed against Ripple by the U.S. Securities Exchange Commission (SEC). The SEC alleges that the company is conducting an ongoing illegal securities offering as Ripple still periodically sells XRP tokens out of the treasury.

Ripple recently filed a Freedom of Information Act request with the SEC seeking documents pertaining to Ethereum co-founders.

The company is demanding to know why Ether (ETH) isn’t considered a security and said that the government body “clearly picked two winners and ignored a growing and robust industry that is much larger than Bitcoin and Ether.”

Title: XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’
Sourced From: cointelegraph.com/news/xrp-price-gains-86-after-wall-street-bets-crypto-wing-says-pump-it
Published Date: Sat, 30 Jan 2021 19:44:48 +0000

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XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’
XRP price gains 86% after Wall Street Bets’ crypto wing says ‘pump it’ was originally published here https://dailynwssheet.tumblr.com/post/641803168273104896

GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30

Title: GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30
Sourced From: cointelegraph.com/magazine/2021/01/30/gamestop-wont-stop-robinhood-cheats-musk-tweets-hodlers012430
Published Date: Sat, 30 Jan 2021 20:27:04 +0000

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GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30
GameStop mayhem, Robinhood scandal, Musk tweets, DOGE explodes: Hodler’s Digest, Jan. 24–30 was originally published here https://dailynwssheet.tumblr.com/post/641780511256215552

BTC billionaire Tim Draper to Elon Musk: I’d buy the Tesla Cybertruck with Bitcoin

Tim Draper, the billionaire Bitcoin (BTC) investor who also invested early in Tesla, reacted to the company’s CEO and world’s richest man, Elon Musk, adding #Bitcoin to his Twitter bio to join the likes of Twitter CEO Jack Dorsey and Reddit co-founder Alexis Ohanian.

Draper, who holds around 30,000 BTC according to reports, told Musk that he would like to pay for the Tesla cybertruck with BTC while promoting his Bitcoin payment processor portfolio company OpenNode. He said:

“Hi Elon Musk, I would like to buy a Tesla cybertruck. Although I personally would rather keep my own #bitcoin, you can accept #bitcoin through our Draper VC company OpenNode.”

Why now?

On Jan. 29, Bitcoin proceeded to rally by 14% in merely 30 minutes shortly after Elon Musk’s Bitcoin support began circulating on social media.

Many speculated that Musk could have been the high-net-worth investor behind the massive Bitcoin accumulation on Coinbase in the past week.

In the past several days, the premium on Coinbase skyrocketed to around $200, compared to Binance. This usually indicates significant buying activity from U.S. investors.

However, Musk did not follow up on the bio change, and overnight, the rally reversed. Bitcoin rose from $33,000 to over $38,000, and dropped back down to $33,000.

Draper likely tweeted at Musk due the interest in Bitcoin from Musk and the positive market sentiment around BTC.

In a recent interview with CNBC, Draper said that he is actually buying more Bitcoin. Draper also said that he does not intend to sell BTC in the future, expressing his strong belief in Bitcoin as a “currency of the future.” He said:

“I’m actually just buying more [Bitcoin]… I have no interest in ever selling my #Bitcoin for dollars. Why would I take the currency of the future and sell it for the currency of the past?”

On-chain data shows that Draper isn’t the only one focused on long term gains. In fact, “HODLing” activity, which indicates the intent of Bitcoin investors to hold BTC for a long time, is at record highs.

Bitcoin 1-year HODL wave. Source: Lookintobitcoin

Will Bitcoin ever be used as a currency?

Bitcoin is increasingly becoming considered as a store of value and an alternative to gold as a safe-haven asset. In recent months, though, the correlation and inverse correlation between Bitcoin, gold and stocks have been decreasing.

Bitcoin correlation vs. S&P500,VIX, DXY, Gold. Source: Digital Assets Data

In addition to the massive price gains, the fear of inflation and the large injection of liquidity by central banks have stirred massive interest among institutional and high-net-worth investors.

But while accepting BTC is becoming increasingly common, the question remains whether Bitcoin would ever be used as a currency and a medium of exchange like the dollar today.

Ironically, when the price of Bitcoin is in a clear uptrend, investors are less likely to sell or spend their BTC. Draper himself is suggesting that he will probably pay the $40,000 for the Cybertruck with dollars rather than the “currency of the future.”

However, if Bitcoin price stabilizes in the future at a high enough price level and sees lower volatility, then BTC could become more compelling for everyday payments.

Meanwhile, as the network gains more users and must scale, the Bitcoin blockchain network may ultimately become inefficient to use for everyday payments on the first layer.

At that point, second-layer scaling solutions, like Lightning Network and sidechains like Liquid, for example, may become the blockchain “apps” for processing small payments instantly. Such interoperable platforms will likely have their own tradeoffs with varying degrees of trustlessness, privacy and decentralization.

Title: BTC billionaire Tim Draper to Elon Musk: I’d buy the Tesla Cybertruck with Bitcoin
Sourced From: cointelegraph.com/news/btc-billionaire-tim-draper-to-elon-musk-i-d-buy-the-tesla-cybertruck-with-bitcoin
Published Date: Sat, 30 Jan 2021 13:00:00 +0000

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BTC billionaire Tim Draper to Elon Musk: I’d buy the Tesla Cybertruck with Bitcoin
BTC billionaire Tim Draper to Elon Musk: I’d buy the Tesla Cybertruck with Bitcoin was originally published here https://dailynwssheet.tumblr.com/post/641754096632823808

Friday 29 January 2021

World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?

Bitcoin (BTC) has been correcting since the peak high at $42,000. However, this correction might have ended as a significant momentum shift occurred in recent days.

The GameStop debacle raised many questions about big parties’ trustworthiness and exchanges, after which more and more people started to claim that decentralization is the future.

Among these people is Elon Musk who is worth nearly $183 billion, according to Forbes making him the world’s richest person. The Tesla CEO included #Bitcoin in his Twitter profile and also wrote “in retrospect, it was inevitable.” A very cryptic message to his 44 million followers, which some may interpret as Musk investing in Bitcoin.

In retrospect, it was inevitable

— Elon Musk (@elonmusk) January 29, 2021

However, this tweet and profile change from Elon Musk prompted a new rally on Jan. 29 with price surging from $32,500 to $38,000 in a matter of minutes. The primary questions now are: does this mean the bull market is continuing and will BTC see new all-time highs?

Bitcoin holds key $30,000 level

XBT/USD 2-hour chart. Source: TradingView

The 2-hour chart shows a clear bullish breakout after holding the significant support zone at $30,000.

The critical breaker for bullish continuation was to find support at $30,000, which happened in recent days. Since then, the next step for bullish continuation would be a breakout above the $34,000 resistance zone.

As the chart shows, and largely thanks to Elon Musk’s tweet, the breakout was confirmed, and Bitcoin started to accelerate heavily. The next level to break is $37,600-38,000 as that’s the next area of significant liquidity.

Currently, Bitcoin’s price is trying to crack that level of resistance at $38,000. If this area flips for support, a further bullish continuation toward the all-time highs will likely occur, and $50,000 comes into play.

Total market cap makes a new all-time high

Total cryptocurrency market cap 1-week candle chart. Source: TradingView

The total cryptocurrency market capitalization has reached new all-time highs in the past 24 hours, accelerating to the $1.13 billion level.

However, the total market capitalization and the price of Bitcoin are still far away from the 21-Week MA. That 21-Week MA often sees a support test before continuing upward.

Therefore, the levels to watch for the total market cap are still the same as before. If the market can’t continue going up from here, $730 billion will be the focus as that would grant a perfect support/resistance flip from the previous all-time high.

BTC/USD 1-week chart. Source: TradingView

The weekly chart shows an apparent bullish cycle and a big gap between the 21-Week MA and the current price. These two often come back to each other to get the markets back to the “mean” of the price movement.

Thus, such a correction would bring the price of Bitcoin to the $25,000 region in the coming weeks. In the end, as long as Bitcoin remains above the 21-Week MA, the continuation of this bull market is very likely.

Critical levels to watch for Bitcoin

XBT/USD 3-hour chart. Source: TradingView

Currently, the price of Bitcoin is trying to break through the resistance at $38,000. If that breaks, a continuation toward a new all-time highs seems inevitable, as $40,500 is the only level to watch after $38,000.

In that perspective, even price targets of $45,000 and $50,000 are on the table. However, if Bitcoin’s price can’t break through the $38,000 area, a renewed retest of the $34,000 zone should be expected.

If that doesn’t hold for support, a sharp fall toward the lows may occur along with more range-bound price action. Nevertheless, this would not be unhealthy for the market from a wider perspective.

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.

Title: World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
Sourced From: cointelegraph.com/news/world-s-richest-man-elon-musk-boosts-bitcoin-price-by-20-is-40k-back-in-play
Published Date: Fri, 29 Jan 2021 14:43:51 +0000

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World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play?
World’s richest man Elon Musk boosts Bitcoin price by 20% — Is $40K back in play? was originally published here https://dailynwssheet.tumblr.com/post/641667257166069760

Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’

Bitcoin (BTC) surged by over $5,000 in minutes on Jan. 29 after the world’s richest man added its symbol to his Twitter page.

BTC/USD 1-hour candle chart. Source: Tradingview

BTC price hits $38K highs

Data from Cointelegraph Markets and Tradingview showed BTC/USD spiking to $38,000 as users began to notice that Elon Musk was now publicly advertising Bitcoin.

The move comes amid major anticipation from investors that BTC will be the next asset to receive a boost, either from a figure like Musk or from lay consumers affiliated with the now notorious Reddit group r/Wallstreetbets.

As Cointelegraph reported, Musk had previously singlehandedly pumped the price of several cryptoassets notably meme-based Dogecoin (DOGE), with just one or a handful of tweets.

DOGE, along with stocks GameSpot and AMC, meanwhile all surged thanks to Reddit this month, with the ensuing regulatory retaliation causing uproar and increasing cryptocurrency’s reputation as an independent investment.

“This should be your wake up call to get your #Bitcoin off exchanges,” popular Twitter account Documenting Bitcoin summarized as $GME trading was shut down.

Musk leaves Twitter still speculating

For Musk, who at one time had “former Dogecoin CEO” in his bio, no explanation of the move towards Bitcoin had been made public at the time of writing, with only a characteristically cryptic tweet coming afterward.

“In retrospect, it was inevitable,” he wrote.

Musk has a chequered history when it comes to Bitcoin, with previous tweets making it impossible to tell if he owned or even liked the largest cryptocurrency.

Twitter volume for “BTC” and “DOGE.” Source: TheTIE

On Friday, however, BTC/USD had yet to match $GME or others, reversing at $37,000 to trade slightly lower and still within an established corridor. As proponents noticed his update, messages of support came rolling in fast.

“Got em,” Robert Breedlove, author of “Thank God for Bitcoin,” responded.

Abra CEO Bill Barhydt added:

“Elon has discovered interplanetary money. Buckle up.”Title: Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’
Sourced From: cointelegraph.com/news/bitcoin-price-soars-5k-in-minutes-after-elon-musk-gives-btc-the-dogecoin-treatment
Published Date: Fri, 29 Jan 2021 09:30:07 +0000

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Bitcoin soars by $5K in minutes — BTC hits $38K after Elon Musk’s ‘Dogecoin treatment’
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Thursday 28 January 2021

Altcoins soar after 10% Bitcoin price breakout flips $33K back to support

Bitcoin (BTC) price appears to have flipped the $32,000 level back to support as the wider cryptocurrency market saw renewed optimism on Jan. 28.

Data from Cointelegraph Markets and TradingView shows that BTC has steadily climbed higher in price from $31,000 to its current value of $33,400, an increase of 9.5%.

Daily cryptocurrency market performance. Source: Coin360

The most notable gainer of the day was Dogecoin (DOGE) which surged more than 200%.

The popular meme coin became the latest beneficiary of the 3 million member Reddit community behind the incredible GameStop (GME), BlackBerry (BBY) and AMC Theatres (AMC) pump that happened over the last few days. In the early morning hours of Jan. 28, a Twitter account named WSB Chairman tweeted:

A lot of you are talking about Dogecoin. What’s that? A meme crypto?

— WSB Chairman (@WSBChairman) January 28, 2021

Shortly afterwards, members in the Wall Street Bets telegram began discussing the possibility of pushing DOGE to $1.

According to data from TheTIE, the tweet volume for Dogecoin “surpassed Bitcoin over the last 24 hours,” making this the first time on record that “an altcoin has been tweeted about more than Bitcoin over a 24 hour period.”

Dogecoin price vs. tweet volume. Source: TheTIE

In a private conversation with Cointelegraph, Joshua Frank, founder of TheTIE, commented on just how “wild” the activity related to Dogecoin has been over the past 24-hours.

Frank said:

“Dogecoin tweet volume is up 1,665% today, its trading volume is up 1,546%, and its price is up 209%”

Wall Street continues to embrace cryptocurrencies

Coinbase officially unveiled its plan to go public later this year. According to Coinbase Blog, the company will do a direct listing of its Class A common stock, making existing shares available to the public.

North Carolina wealth manager Kingfisher Capital also made headlines after filing documents revealed that the firm had purchased 10,667 shares of the Grayscale Bitcoin Trust over the past few months.

Several brokerage firms in the United States, including the popular mobile-based Robinhood, are receiving blowback for halting trading on stocks like GameStop (GME) and AMC Holdings Inc. (AMC), which has been the primary story of the week after a retail investor-inspired short squeeze by members of the Reddit group r/wallstretbets pushed the prices of each stock up by hundreds of percent.

The traditional markets also saw a bounce following a minor sell-off yesterday. The S&P 500, NASDAQ and Dow all saw positive inflows and finished the day up 0.98%, 0.68% and 0.99% respectively.

BTC/USD daily chart. Source: Coin360

Bitcoins show of strength at the $32,000 coincided with a strong rally from many altcoins and currently the majority of the top 100 coins are reflecting 3% to 15% gains.

Cosmos (ATOM) rallied by 15.41%, Stellar (XLM) gained 13.91% and Compound (COMP) added 14.21%. Ether (ETH) price also increased by 5.96% and currently trades at $1,355.

The overall cryptocurrency market cap now stands at $984.6 billion and Bitcoin’s dominance rate is 63.2%.

Title: Altcoins soar after 10% Bitcoin price breakout flips $33K back to support
Sourced From: cointelegraph.com/news/altcoins-soar-after-10-bitcoin-price-breakout-flips-33k-back-to-support
Published Date: Thu, 28 Jan 2021 23:03:46 +0000

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Altcoins soar after 10% Bitcoin price breakout flips $33K back to support
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Ethereum Price Analysis: ETH Reclaims $1300, Facing Huge Resistance

ETH/USD – Ethereum Bounces From .236 Fib Support

Key Support Levels: $1300, $1200, $1080.
Key Resistance Levels: $1392, $1425, $1475.

Ethereum had set a new ATH price at $1473 on Monday. It could not close a daily candle above the $1392 resistance and ended up rolling over the past few days.

It continued to drop until support was found yesterday at $1200 (.236 Fib), which allowed the coin to rebound. It pushed higher today and is now testing resistance at $1350 (1.272 Fib Extension).

ETH/USD Daily Chart. Source: TradingView.

ETH-USD Short Term Price Prediction

Looking ahead, the first level of strong resistance lies at $1392 (1.618 Fib Extension & 2021 High-day Closing price). This is followed by $1425 (previous ATH0, $1472 (new ATH), and $1500.

Beyond $1500, resistance is found at $1530 (1.414 Fib Extension – blue), $1582 (1.618 Fib Extension – orange), and $1645 (1.618 Fib Extension – blue).

On the other side, the first level of support lies at $1300. This is followed by $1200 (.236 Fib), the lower boundary of the price channel ($1150), $1080 (.382 Fib), and $1000.

The daily RSI recently rebounded from the midline, indicating the bulls are still in charge of the momentum, which is increasing.

ETH/BTC – Bulls Bounce From 2020 Highs

Key Support Levels: 0.0416 BTC, 0.0405 BTC, 0.0396 BTC.
Key Resistance Levels: 0.0428 BTC, 0.0435 BTC, 0.045 BTC.

Against Bitcoin, Ethereum has been trapped within a steep ascending price channel since the start of January 2021. The coin hit the 2021 high at 0.045 BTC on Monday and started to head lower from there.

It found support at 0.0405 BTC over the past few days and recently bounced from the lower boundary of the price channel today to hit the current 0.0421 BTC level.

ETH/BTC Daily Chart. Source: TradingView.

ETH-BTC Short Term Price Prediction

Looking ahead, the first level of resistance lies at 0.0428 BTC (1.272 Fib Extension). This is followed by 0.0435 BTC (1.414 Fib Exnteison) and 0.045 BTC (1.618 Fib Extension). Added resistance is found at 0.046 BTC and 0.0483 BTC.

On the other side, the first level of support lies at 0.0416 BTC (2019 High). This is followed by the rising price channel, 0.0405 BTC (2020 High), and 0.0396 BTC (Feb 2019 High). Added support lies at 0.039 BTC (.382 Fib) and 0.0376 BTC.

The RSI is slowly fading from overbought conditions, indicating the previous bullish momentum is fading slightly. However, the bulls are still in charge, and this should help keep it above the price channel.

Title: Ethereum Price Analysis: ETH Reclaims $1300, Facing Huge Resistance
Sourced From: cryptopotato.com/ethereum-price-analysis-eth-reclaims-1300-facing-huge-resistance/
Published Date: Thu, 28 Jan 2021 13:25:03 +0000

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Ethereum Price Analysis: ETH Reclaims $1300, Facing Huge Resistance
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ALPHA surges 152% in one week: What’s behind its meteoric rally?

ALPHA surges 152% in one week: What’s behind its meteoric rally?
ALPHA surges 152% in one week: What’s behind its meteoric rally?

ALPHA, the governance token of Alpha Finance Lab, has surged 152% in the past week. It is now the 85th most valuable cryptocurrency in the global market, breaking into the top 100 in a short period.

Behind its meteoric rally are three key factors, namely the rapidly rising total value locked (TVL) of Alpha Homora, the overall positive market sentiment around decentralized finance and the imminence of Alpha Homora V2.

ALPHA/USDT 15-min price (Binance). Source: TradingView.com

What is ALPHA, Alpha Homora and AlphaX?

Alpha Homora is essentially a protocol that enables users to yield farm using leverage.

The term “yield farming” means the process of providing liquidity to DeFi protocols to earn sustainable yield or APY. By using leverage, Alpha Homora allows users to provide liquidity to pools more efficiently.

Alpha Homora V2 adds various improvements to the first release. It adds more pool support on top of Uniswap, such as Curve, Balancer and SushiSwap. This allows users to benefit from a more diverse selection of pools to yield farm.

The second version also lets users hold up to nine-times leveraged positions, borrow multiple assets, and lend or borrow other assets apart from Ether (ETH), as Band Protocol’s Sawit Trisirisatayawong explained.

Ultimately, Alpha Homora should be useful for the average DeFi user with limited capital who wants to maximize their yield.

AlphaX, the decentralized futures exchange, also aims to be beginner-friendly by removing the manual futures funding rate and baking it into the price. The two key products in the Alpha Finance Lab ecosystem are both designed to serve casual users in DeFi.

At a market capitalization of $296 million, ALPHA is arguably a blue-chip DeFi asset. But the price of ALPHA has significant momentum and is continuously rallying.

The optimism around ALPHA stems from the rapid increase in Alpha Homora’s TVL and the active developer community of the project.

Alpha Homora’s $618 million alone could justify a high valuation for ALPHA, by calculating the potential fees the protocol could charge in the future and predicting its cash flow.

The existence of other key products like AlphaX that make Alpha a more extensive DeFi ecosystem has likely made ALPHA more appealing as a long-term DeFi bet.

The pace of growth is optimistic

Alpha Homora is the fastest DeFi protocol to reach a $600 million TVL in the history of the DeFi space.

Alpha Homora growth. Source: Alpha

The top DeFi protocols and lending platforms, like Aave and Curve, took around six months to reach the same TVL.

But while Alpha admittedly launched as the DeFi space was seeing explosive growth, it is still impressive that it was able to outpace the largest projects in the space.

Over the longer term, there are several potential catalysts for the price of ALPHA.

Most notably, the official document of Alpha Finance Lab shows that ALPHA tokenholders might soon be able to receive a portion of protocol fees through either staking or providing liquidity. The document reads:

“Utility token for all Alpha products (e.g. provide liquidity or stake to receive % protocol fees) (not yet implemented).”

More utility for ALPHA should act as a strong catalyst in the longer term and make the token itself more attractive.

Title: ALPHA surges 152% in one week: What’s behind its meteoric rally?
Sourced From: cointelegraph.com/news/alpha-surges-152-in-one-week-what-s-behind-its-meteoric-rally
Published Date: Thu, 28 Jan 2021 13:41:39 +0000

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ALPHA surges 152% in one week: What’s behind its meteoric rally?
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Bitcoin price dips below $30K but here’s why pro traders are still bullish

In the last 24-hours Bitcoin (BTC) price dropped 10% today to test the $30,000 support. This drop below what traders have described as a ‘key’ support occurred just two days ahead of this month’s futures and options expiry.

Despite the record-high $4 billion options expiry being just two days away, both bull and bear sides traded similar sizes today.

Unlike futures contracts, options are divided into two segments. Call (buy) options allow the buyer to acquire BTC at a fixed price on the expiry date. On the other hand, the seller of the instrument will be obliged to make the BTC sale. Generally speaking, they are used on either neutral arbitrage trades or bullish strategies.

The put (sell) options are commonly used as hedge, protection from negative price swings.

To understand how these competing forces are balanced, one should compare the calls and put options size at each expiry price (strike). Options markets are all-or-none, meaning they either have value or become worthless if trading above the call strike price, or the opposite for put option holders.

Aggregate options trade volume in the past 24 hours. Source: Bybt.com

The trading volume over the past 24-hours has favored the more bullish call options by 51%. Nevertheless, this number is polluted by the ultra bullish strikes priced at $37,000 and higher. Considering there’s less than 36 hours before the expiry, these contracts are trading below $50 each.

Excluding these over-optimistic strikes, today’s trading added another $95 million worth of call options open interest below $35,000. On the other hand, the more bearish put options at $27,000 and higher amount to $90 million worth of open interest.

The result of today’s activity has been neutral for Friday’s options expiry. Nevertheless, one should check the overall open interest imbalance separate from today’s movement.

BTC Jan. 29 aggregate options open interest by strike. Source: bybt.com

By excluding the put options below $27,000 and the call options above $35,000, it is easier to estimate the potential impact of Friday’s expiry. Incentives to pump or dump the price by more than 16% become less likely, as the potential gains will seldom surpass the cost.

This data leaves $582 million worth of call options up to $35,000 for the aggregate options expiry on Jan. 29. Meanwhile, the more bearish put options down to $27,000 amount to $422 million. Therefore, there’s a $160 million imbalance favoring the more bullish call options.

Considering the volumes traded over the past 24 hours and the put options open interest, there’s not much gain for bears in pressuring BTC below $29,000, at least from the options market standpoint.

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.

Title: Bitcoin price dips below $30K but here’s why pro traders are still bullish
Sourced From: cointelegraph.com/news/bitcoin-price-dips-below-30k-but-here-s-why-pro-traders-are-still-bullish
Published Date: Thu, 28 Jan 2021 01:00:44 +0000

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Bitcoin price dips below $30K but here’s why pro traders are still bullish
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Wednesday 27 January 2021

The adventures of the inventive Alex Mashinky

Title: The adventures of the inventive Alex Mashinky
Sourced From: cointelegraph.com/magazine/2021/01/27/the-adventures-of-the-inventive-alex-mashinky
Published Date: Wed, 27 Jan 2021 18:43:17 +0000

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The adventures of the inventive Alex Mashinky
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Mercuryo expands its fiat-to-crypto gateway to the US with Zero Hash

Mercuryo, a European-based cryptocurrency payments provider, today announced a new partnership with Zero Hash, a U.S. digital asset settlement service, in order to provide access to its crypto-asset payment services for businesses and individuals in the United States.

Since its launch, Mercuryo has been serving over 600,000 users and 180 crypto projects and prominent enterprises, becoming a leading digital asset payment gateway provider in Europe.

Mercuryo features two flagship solutions: a digital asset wallet and a widget service. While the wallet provides access to seamless crypto-to-fiat and fiat-to-crypto transactions, businesses can integrate the widget directly into their apps or websites. With just a few clicks customers can purchase digital assets in their local currencies via Visa and Mastercard cards. The widget also supports Apple Pay and Google Pay services, so clients can buy crypto this way too.

“We are excited about entering the US market. We are observing an interest from this region – 41% of payments on our platform are made in US dollars. Our vision is to build a financial infrastructure that provides customers worldwide with easy and fast access to cryptocurrencies.”
Petr Kozyakov, Mercuryo’s CBDO and co-founder.

Mercuryo’s partner firm is a registered Money Service Business under the oversight of FinCEN and a licensed Money Transmitter in over 40 US states, allowing the company to offer regulated payments solutions for all its customers across the country.

“We are pleased that Mercuryo is leveraging the Zero Hash compliance and technology infrastructure to service US customers. We empower innovators such as Mercuryo who are building Finance 2.0 by providing a turnkey and totally customizable solution for transactions in a regulated ecosystem.”
Edward Woodford, Zero Hash’s CEO

To kickstart the expansion, Mercuryo closed a €2.5m seed funding led by the international venture capital fund Target Global.

The company’s ecosystem has achieved significant growth last year. Its turnover went up 50 times, reaching $75.5M in Q4 2020. The number of employees has also doubled.

CryptoNinjas.net » Mercuryo expands its fiat-to-crypto gateway to the US with Zero Hash

Title: Mercuryo expands its fiat-to-crypto gateway to the US with Zero Hash
Sourced From: www.cryptoninjas.net/2021/01/26/mercuryo-expands-its-fiat-to-crypto-gateway-to-the-us-with-zerohash/
Published Date: Wed, 27 Jan 2021 10:44:01 +0000

Mercuryo expands its fiat-to-crypto gateway to the US with Zero Hash
Mercuryo expands its fiat-to-crypto gateway to the US with Zero Hash was originally published here https://dailynwssheet.tumblr.com/post/641482307877928960