Why One Fund Manager Says Bitcoin Is On The Verge Of A Larger Bearish Correction

By Brenda Ngari – December 6, 2020

Bitcoin has had a good run for the past two months, even surging to almost $20,000 earlier last week. Raoul Pal, the CEO of Real Vision Group has pinpointed several technicals that now suggest that the number one crypto is about to suffer a deeper correction in the near term.

Bitcoin Looks Poised For A Steeper Decline

After recently rallying to new all-time highs, bitcoin’s momentum has slowed down over the past few days. Notably, the bitcoin price faced harsh rejection at the $19.5K region once again. The cryptocurrency is trading at $19,170 at press time, gaining 0.27% over the previous 24 hours.

According to Raoul Pal, bitcoin is currently facing “some serious technical headways” that may have the strength to push the cryptocurrency lower. Pal is utilizing the DeMark sequential indicator to predict the price of bitcoin. A reading of 9 on this indicator suggests that a correction is underway, while a 13 reading indicates trend exhaustion.

The fund manager also analyzed bitcoin’s weekly chart, which he believes is topping. Moreover, the crypto’s monthly chart has registered a DeMark reading of 9.

Pal notes that the confluence of these technical patterns across three different timeframes suggests that bitcoin is poised to retrace significantly in the coming days. He said:

“This all puts the odds of a larger correction in play, not a certainty, but top patterns across 3 time series are something to take seriously and if you are not a long-term HODLer, you might consider some caution is merited. Let’s see…”

Bitcoin Needs To Take Out $19,400 For A New All-Time High

In technical terms, the bearish scenario for the flagship cryptocurrency in the coming days hinges on the $18,500 level. If BTC drops below this key support level, analysts expect bitcoin to fall further.

Full time-trader from Amsterdam Stock Exchange and popular crypto analyst Michael van de Poppe, popularly known as Crypto Michael, has observed that bitcoin risks plunging to the $16Ks if it loses $18,500. On the other hand, the cryptocurrency could register a new record high if it manages to obliterate the stubborn resistance at the $19.4K level.

Crypto Michael elaborated:

“And as $19,400 and $19,150 rejected, the range low was tested at the $18,500 area, tweeted yesterday. All fine, range-bound construction further. Breaking $19,400 = new ATH. Losing $18,500 = likely $16K tests.”

Meanwhile, business intelligence firm MicroStrategy has invested an additional $50 million into the flagship cryptocurrency. According to an announcement by MicroStrategy CEO Michael Saylor on Friday, the company bought 2,574 bitcoins (valued at $50 million at the time) bringing its total holdings to 40,824 bitcoins.

The firm doubling down on its bitcoin investment indicates that it is confident that the crypto-asset has plenty of gas in the tank.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Brenda Ngari and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Bitcoin’s Price is Ahead of Fundamentals by 6 – 9 Months – BTC Analyst

John P. Njui   •   BITCOIN (BTC) NEWS • CRYPTOCURRENCY   •   DECEMBER 5, 2020

Quick take:

• Timothy Peterson has pointed out that Bitcoin’s price is ahead of its fundamentals by 6 – 9 months
• However, this is not a big concern as it sometimes happens with technology in the limelight
• Bitcoin has a high chance of breaking $20k. After this level, fundamentals will not matter
• $24k is possible by the end of 2021 based on Bitcoin adoption
• $36k is also possible with $50k still being okay

Crypto and Bitcoin analyst Timothy Peterson, has pointed out that Bitcoin’s current price is ahead of its fundamentals by six to nine months. As a result, Bitcoin is currently overpriced by a factor of 50%. Mr. Peterson further explained that this should not be a big concern as seen in his statement below.

Thoughts on #bitcoin. Overvalued to fundamentals by ~50%. Price ahead of fundamentals 6-9 months. Not a big concern, this happens often especially with a technology in the limelight.

Fundamentals Won't Matter Once BTC Breaks $20k

In his analysis of Bitcoin, Mr. Peterson forecasted that BTC has a high chance of breaking $20k. After this level, fundamentals will not matter and the price of Bitcoin will continue rising as seen with Tesla (TSLA) and Snowflake (SNOW) stocks.

Good chance #bitcoin higher if breaks $20K. Fundamentals won’t matter, high can and often does go higher: $TSLA $SNOW

$24k, $26k Possible in 2021, Above $50k Would Be ‘Concerning’

With respect to Bitcoin’s performance next year, Mr. Peterson had this to say.

End of 2021, #bitcoin adoption rate justifies $24k, but if 50% overvalued, then $36k would be entirely possible sometime in 2021. Would not get concerned unless > $50k in 2021.

Conclusion

Summing it up, Bitcoin and Crypto analyst Timothy Peterson has pointed out that Bitcoin is currently overvalued by a factor of 50% with respect to its fundamentals. However, such an overvaluation should not be a big deal as it sometimes happens with emerging technology in the limelight such as Tesla or Snowflake Inc.

With respect to 2021, Mr. Peterson has forecasted that once $20k is breached, Bitcoin will keep rising and possibly hit $24k or even $36k. The only scenario that should be worrisome, is Bitcoin exceeding $50k in 2021.

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Original article posted on the EthereumWorldNews.com site, by John P. Njui.

Article re-posted on Markethive by Jeffrey Sloe

Is Bitcoin Poised to Break Out or Plunge Again?

(Mikhail Primakov2/Dreamstime)

By Bert Dohmen
Thursday, December 03, 2020 04:51 PM
Current | Bio | Archive

Once again, Bitcoin and other cryptocurrencies are all over the news. We have seen such periods for these digital currencies in the past, many of which ended in financial pain for the bulls. Will that be repeated now, or is something more bullish potentially ahead?

We have been correctly skeptical about this sector over the past three years. The charts show that was a good position. But the markets are dynamic, and of course, facts change.

Bullish or not, Bitcoin’s volatility is very high. It has doubled and halved in price over periods lasting just a few weeks.

Below is a weekly chart of the Bitcoin-U.S. dollar exchange rate over the past 4 years, highlighting the extreme price swings:

Cryptocurrencies in general plunged 75% to 100% from their euphoric highs in December 2017 to their lows just one year later. Bitcoin retreated from nearly $20,000 to below $3,200, depending on what market price is used. At that 2017 high, analysts in the financial media were hyping up these digital coins every day, forecasting rises to $50,000, $100,000, and even higher. Predictably, that euphoria marked the top.

Bitcoin then rallied sharply into the 2019 high, more than doubling in the span of a few months. But just when the hype hit its peak once again in June 2019, prices were slashed by 72% into the low of March 2020.

Since that point, Bitcoin has recovered its huge loss, and even rallied to slightly above the 2017 high.

Old highs are usually strong resistance. The further back in time, the stronger the resistance. The Bitcoin chart is now slightly above its 2017 high. If it reverses downward now, it would predict a sharp correction.

Once again, the wild forecasts of even $500,000 per Bitcoin are back in the media. To us, that is at least a near-term warning signal.

The Long-Term: At Dohmen Capital Research, we continuously reanalyze the various scenarios of different asset classes and market moves. Thus, we go back to the very long-term monthly chart, shown below. It is also a “log” chart, where the vertical price scale is logarithmic.

This long-term chart looks very bullish to us. $50,000 seems very possible. However, look at the huge declines, like the 81% plunge in 2018. Could you ride that out?

We also see some bullish long-term signs on a fundamental basis.

Several large institutions, including PayPal and Square, have taken out some sizeable positions. Of course, for them it is just a medium of payment, desired by many of their customers. The vast majority of asset managers, on the other hand, are skeptical.

High Regulatory Risks

Owning Bitcoin has been a speculator’s game up to this point. The government could impose regulations at any time, without warning, or shut them down. The U.S. Treasury Department is, after all, the only agency permitted to produce and distribute currency.

We have warned our members for years about the potential abuses in the cryptocurrency markets.

There have been numerous scams where investors lost everything. One founder of such a digital currency died, and he was the only one having the password to access the system. Some investors may have lost everything.

In October, the CFTC brought charges against BitMEX, said to be one of the largest cryptocurrency exchanges in the world. Supposedly, its transactions have been in excess of $1 trillion over the past few years, making over $1 billion for itself.

The inherent regulatory risks are likely one of the many reasons large asset managers have avoided exposure to the crypto sector. Now, however, we hear that very smart and successful hedge fund managers like Paul Tudor Jones, Stanely Druckenmiller, and even the managing director of Guggenheim, Scott Minerd, are putting sizable investments into this sector.

So, we ask, what do they know?

Central Bank Digital Currencies (CBDCs)

The following is conjecture on our part.

We see an increasing number of statements from central bank officials about using “central bank digital currencies,” or CBDCs for short. One said it would enable the central banks to inject stimulus directly into people’s bank accounts, a much more efficient way than sending out millions of checks as the government did this year.

We think CBDCs are inevitable, perhaps within the next two years.

Central banks don’t like competition. Therefore, they must find a way to extinguish other digital currencies. They could just declare them illegal. But that would unleash an uncomfortable backlash.

What to do? They could offer an exchange, a buyout of existing cryptocurrencies, or just Bitcoin far above market value. Everyone would be happy. Eliminating all the other digital currencies, many of which are not trustworthy, could also be justified to the public as an effort to protect investors.

Our point is that when something doesn’t make sense, such as very smart investment professionals who pay a lot for insider information entering a brand-new and high-risk sector, there has to be a reason.

Conclusion

We have written for the past several years that we don’t consider anything an investment if it can lose 30-50% of its value overnight.

However, the world is dynamic and evolves. When the facts change, it pays to change with them. We are not recommending the purchase of cryptocurrencies but there may be a time when we would accept it as a speculation. The fact that very knowledgeable and successful investors are now committing to Bitcoin is an interesting change.

At Dohmen Capital Research, the cryptocurrency markets are just one of the areas we cover in our analysis. In our award-winning Wellington Letter, we offer our more detailed contrarian insights on stocks, precious metals, the economy, and global financial markets.

Sign up for the Wellington Letter at 20% off today as part of our Extended Cyber Monday specials, along with our services for active stock and ETF traders. Click here to take advantage of these deals soon before they expire!

Bert Dohmen is a professional trader, investor, and analyst. As the founder of Dohmen Capital Research group and Dohmen Strategies, LLC, he has been giving his analysis and forecasts to traders and investors for over 43 years.

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The original article written by Bert Dohmen and posted on Newsmax.com/Finance.

Article reposted on Markethive by Jeffrey Sloe

You Could Soon Pay for Spotify’s Audio Streaming Subscription with Bitcoin

By Nick James – December 4, 2020

Bitcoin is still gaining more popularity, and the crypto industry at large is winning hearts and minds. Spotify is the latest conquest of the crypto empire. Apparently, the audio streaming service is currently mulling over a plan to start accepting Bitcoin payments from subscribers.

Spotify’s plan would introduce a whole 320 million strong customer base to cryptocurrencies, something that would mean a lot for the industry. At the moment, reports have it that the company’s Payments and Innovation team is looking for an Associate Director to lead the development of a new framework for crypto payments. The company threw lots of hints to that effect.

New Opportunities And Innovation

According to Spotify, the new team member will be tasked with looking for new payment opportunities and provide innovative solutions in that sense. Basically, it’s safe to say that the most recent innovation in the payment industry is all about cryptos and blockchain technology.

Based on that, the Director will help develop opportunities and innovations in the use of blockchains, CBDCs, cryptos, stablecoins, among other digital assets. With that requirement, it’s clear that Spotify is going all-in with cryptos.

Experience In Blockchain And Digital Assets

Also, the expected Associate Director needs to have good experience in blockchain technology as well as digital assets (like cryptos).

With this, the company wants the new team member to help it roll out a crypto payment solution on a global scale. Notably, Bitcoin is currently the most popular crypto that has reached all corners of the world. There are now BTC ATMs on almost every continent. That’s why Bitcoin would be most suited for this role.

Engagement With The Libra Association

Spotify is also joining up with Facebook’s Diem, a developer team that’s now planning to create a payment system to host various stablecoins.

It’s fair to opine that besides accepting Bitcoin payments, Spotify could be teaming up with the Libra Association to give its subscribers more payment options. Either way, it’s a good deal for BTC.

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Nick James and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Trader Reveals 8 Cryptocurrencies With Massive Potential For Growth In 2021

By Bernice Nyambura – December 4, 2020

Influential Altcoin trader and Crypto analyst Aaron Arnold has revealed 8 crypto assets with massive potential for growth in 2021 that investors should consider keeping tabs on.

Bitcoin (BTC)

Arnold, who runs Altcoin Daily YouTube Channel with his brother Arnold Austin told over a quarter million followers (283000 subscribers) that of the 8 coins that will do extremely well, Bitcoin is his top pick.

Arnold made the remarks during an interview with PayPal’s CEO Daniel Schulman, who said that Bitcoin is only in its early stages of merchant adoption. Schulman added that PayPal made it easier to trade and hold cryptocurrencies and there’ll be more coming in early 2021. PayPal will enable 28 million merchants on its platform to use crypto as a funding source for any of their transactions.

“I think you’ll see more and more utility happen with cryptocurrencies.”

Polkadot (DOT)

Arnold picked Polkadot as the second-best performing asset of 2021. The project launched in mid-late August and immediately received an explosively positive reception by the crypto community.

Polkadot is a next-generation Proof-of-Stake blockchain network that facilitates full interoperability of any data type including tokens between different open-source and private blockchain networks.

It is now one of the top competitors of Ethereum alongside Cardano and Binance Chain termed as potential ETH killers.

Polkadot’s native token DOT has attracted an investment of $3 billion from investors looking to earn a passive income from staking. Arnold also noted that Polkadot has attracted investments in DeFi and non-fungible tokens (NFTS).

Ethereum (ETH)

Ethereum has officially begun the migration to proof of stake with the successful launch of Beacon Chain. According to Arnold, his third pick is only set to grow as it promises to introduce a new era of network scalability and staking rewards.

YFI (yearn.finance)

YFI is one of the top DeFi projects that was born out of the DeFi boom of 2020. The protocol implemented Yearn Improvement Proposal 54 (YIP-54) which Arnolds foresees as a possible catalyst for the DeFi project.

Cardano (ADA)

Cardano takes the fifth position. Arnold stated that upcoming major upgrades on Cardano, including Yella, will push up ADA’s value, utility, and Price.

XRP, SNX, LINK

The remaining three picks are XRP, Synthetix, and Chainlink. Arnold said that XRP will have a key role to play in the rising interest that Central Banks have shown in developing CBDCs.  Ripple CEO Brad Garlinghouse wants central banks to consider using the XRP Ledger to issue their stablecoins.

SNX and LINK will also benefit from the rising trend where crypto platforms are rallying to tokenize assets such as oil. Synthetic assets mirroring their real world counterparts can use Chainlink as an oracle for real time data feeds and market reactions.

”sOIL is a synthetic asset that mirrors the price movements of oil using a Chainlink decentralized oracle network… It is available Synthetix Exchange and can be traded for any Synth with infinite liquidity and zero slippage.”

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DISCLAIMER

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

The original article written by Bernice Nyambura and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe