Market Pundit On Why Bitcoin Price Is Poised For Second Highest Monthly Close Ever

By Erie Maxwell – October 24, 2020

Bitcoin is currently trading at $13,126 after a massive 7.5% breakout above $12,000 on October 21. The digital asset has established a robust daily uptrend and a new 2020-high at $13,220. Several analysts have stated that the rank 1 cryptocurrency can most likely reach its all-time high again in the near future.

Peter Brandt, a well-known trader believes Bitcoin is poised for the second-highest monthly close ever if the momentum continues like this. Brandt also mentions the renewed interest in Bitcoin and the cryptocurrency market from institutional players like Grayscale or Stone Ridge.

Bullish Points In Favor of Bitcoin

One metric sometimes overlooked is the number of BTC addresses holding at least 0.01 coins. Although this number usually goes up, there have been periods of time where it went down, like in 2018 or sideways. According to Glassnode, it just reached a new all-time high.

Similarly, investors holding between 1-10 BTC are also coming back. On September 14, this number was around 671,350 and dropped to a low of 653,000 on September 28. However, it seems to be recovering, currently at 664,870.

(Click image for larger view)

The weekly chart is absolutely bullish after Bitcoin established clear higher lows and higher highs during the past 6 months. The next critical resistance level is located at $13,764, the high of June 24.

(Click image for larger view)

The RSI is close to being overextended, however, the last time this happened on May 6, 2019, it did not stop the price from rising higher. Additionally, the MACD turned bullish again and it’s gaining a lot of momentum.

Crypto Michael, a full-time trader believes Bitcoin could top out at around $14,000 before the first pullback.

A breakout above the resistance level at $13,764 would confirm a monthly uptrend after Bitcoin established a higher low at $4,000 compared to $3,215. The RSI on the monthly chart is not yet overextended and the MACD is robust.

Bulls would need to see Bitcoin not only cracking $13,764 but closing above it this month or the next to avoid a pullback. Do you think Bitcoin will reach $20,000 by the end of the year?

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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 Erie Maxwell and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

The CME Bitcoin (BTC) Futures Market is Now the Second Largest

John P. Njui   •   BITCOIN (BTC) NEWS   •   OCTOBER 24, 2020

Summary:

• Institutional demand for Bitcoin is rising as CME BTC Futures are now ranked second
• The open interest of the CME Bitcoin futures eclipses that of Binance, Bitmex and even Bybit
• This is a sign of continual institutional interest in Bitcoin
• Outside of futures platforms, 785,999 BTC is currently held by publicly traded companies

The demand for Bitcoin (BTC) has continued to spread outside regular retail traders. According to data from Arcane Research, the CME Bitcoin futures market is now the second-largest with an open interest of nearly $800 Million. This means that the CME BTC futures market is trading more Bitcoin futures contracts than popular exchanges such as Binance, Bitmex, Huobi and Bybit. Only OKEx has a higher Bitcoin open interest than the CME Group.

Below is the observation by the team at Arcane Research and an accompanying chart illustrating the open interest on each major crypto exchange.

Institutional Bitcoin FOMO is Here

With the CME Bitcoin futures now ranking second, institutional investors are also buying and holding Bitcoin. Such purchases of Bitcoin are directly being added to the treasury of the corresponding companies in a move which Weiss Ratings has defined as ‘Institutional FOMO at its finest’.

Institutional FOMO at its finest. We’re already seeing the “#Bitcoin effect” where companies announcing they are adding to their Treasury tends to boost their price. Let that sink in: Buying Bitcoin is seen as a positive catalyst for a company’s stock. We’ve come a long way.

The team at Weiss was commenting on a tweet by the CEO of Gemini, Tyler Winklevoss, which predicted that more companies and even countries, will buy Bitcoin and add the digital asset to their treasuries. Below are both tweets by Weiss Ratings and Mr. Winklevoss.

785,999 Bitcoin Held in Company Treasuries

In terms of the exact number of Bitcoins being held by publicly trading companies in the United States, BitcoinTreasuries.org is tracking each purchase with the aggregated amount currently at 785,999 Bitcoin. This is an impressive amount that is roughly 4% of Bitcoin’s current circulating supply. The current list of companies buying and holding Bitcoin can be found below and courtesy of BitcoinTreasuries.org. The list includes known companies such as Microstrategy, Square and Grayscale.

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

Article re-posted on Markethive by Jeffrey Sloe

Bitcoin price rise to $500k is inevitable, Winklevoss twins say

They said that real adoption of the asset class "hasn't even started."

Image courtesy of CoinTelegraph

            OCT 23, 2020

Gemini crypto exchange founders Tyler and Cameron Winklevoss said that Bitcoin (BTC) will eventually hit $500,000 per coin during a recent interview with podcast host Peter McCormack.

“The question in our mind is not so much does it get to $500,000, but how quickly,” Tyler told McCormack during the Oct. 23 podcast episode. His thesis takes the market cap of gold and theoretical central bank allocation into consideration. "I would sort of contend that $500,000 Bitcoin is actually pretty conservative and the game hasn't even really started," Cameron noted.

MicroStrategy and others buying significant amounts of Bitcoin for their treasury reserves seems to indicate that the market is beginning to shift. “What if every Fortune 100 or 500 company does that, what if central banks start doing that?” Cameron queried. “It hasn’t even started,” he added, analogizing that Bitcoin is in the bottom of the first in a nine-inning baseball game.

“Wall Street is not here yet. Institutions aren’t in Bitcoin right now. It’s been a retail phenomenon for the last decade. So Wall Street talks about it, they’re aware of Bitcoin, but they’re not really in it from our perspective, but it’s starting to happen.”

The basis for the interview was a report from Tyler and Cameron published in August 2020, titled: The Case for $500K Bitcoin. The brothers began constructing the report in January 2020, Cameron said in the interview with McCormack.

"We started to think about what the government has been doing with the U.S. dollar for the past decade or so and traditional sort of stores of value and hedges," Cameron explained. The twins halted work on the report in March when COVID gained a global foothold. They resumed the paper several months later after evaluating the economic changes brought on by the virus.

Tyler said he and his brother began buying BTC in 2012. Part of the rationale for the report stemmed from evaluating the asset's performance amid the surrounding economy over the past decade.

While a growing number of bullish predictions for Bitcoin surfaced throughout 2020, some have remained skeptical such as gold bug Peter Schiff.

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Original article posted on the CoinTelegraph.com site, by Benjamin Pirus.

Article re-posted on Markethive by Jeffrey Sloe

US AML watchdog wants info on all international crypto transactions over $250

The proposed change would cut down FinCEN's longstanding $3,000 threshold.

Image courtesy of CoinTelegraph

            OCT 23, 2020

The Financial Crimes Enforcement Network (FinCEN) and Federal Reserve are looking to get more information on smaller transactions than ever before.

According to a notice of proposed rulemaking published on Friday, the agencies want to lower the $3,000 threshold established in 1995 to $250 for international transactions, meaning that financial institutions would need to exchange client information alongside all transactions greater than $250 that begin or end outside of the United States. Which is to say, the Travel Rule, as it is known, would apply to quite small amounts of money changing hands.

The proposed change specifically calls out "convertible virtual currencies," saying that they would also fall into the category of money for the purposes of this rule.

The information that financial institutions need to exchange under the travel rule is:

"(a) name and address of the originator or transmittor; (b) the amount of the payment or transmittal order; (c) the execution date of the payment or transmittal order; (d) any payment instructions received from the originator or transmittor with the payment or transmittal order; and (e) the identity of the beneficiary’s bank or recipient’s financial institution."

Which is to say, quite a lot of personal information that a crypto exchange would then need to store alongside a user's account, posing a major data security threat. Moreover, implicit in this change is a mandate that financial institutions know the geographic origin of every transaction over the $250 threshold.

The Financial Action Task Force is working to apply a similar rule all around the globe, which has proven highly controversial within the crypto world. The mandate to collect and exchange customer information seems diametrically opposed to the "peer-to-peer electronic cash system" that the whitepaper for Bitcoin presented.

For now, the update to the Travel Rule remains just a proposal. FinCEN and the Fed are inviting public comment from all concerned over the next 30 days.

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Original article posted on the CoinTelegraph.com site, by Kollen Post.

Article re-posted on Markethive by Jeffrey Sloe

Here’s The Next Likely Price Target For Bitcoin After Surpassing $13k, According to Several Popular Analysts

By Erie Maxwell – October 22, 2020

One of the most significant bullish signs for Bitcoin in the long-term is the renewed interest in the digital asset by institutional investors around the world. Bitcoin Treasuries in publicly traded companies have been acquiring massive sums of coins throughout 2020.

Grayscale Bitcoin Trust is by far the largest after scoring more than 440,000 BTC, worth more than $5 billion at current prices. More recently, Square, a company founded by the CEO of Twitter, acquired $50 million worth of BTC.

Even more recently, Stone Ridge, a multi-billionaire asset management company purchased $115 million worth of the digital asset, around 10,000 BTC. There is a clear interest in Bitcoin by big players.

PlanB, known for creating the Bitcoin Stock-to-Flow model, explains that all the institutional buying is a huge bullish sign but we need patience until the next mega breakout.

BTCUSD Chart By TradingView (Click for larger view)

Other Bullish Signs in Favor of Bitcoin

From a technical standpoint, Bitcoin is currently striving to stay above $13,000, a critical support level, and to climb above $13,500. We could see the digital asset trade between these two levels for the next few weeks before a clear breakout.

However, it seems that bulls have the upper hand as most indicators and on-chain metrics are in favor of Bitcoin. For instance, on the daily chart, bulls have managed to turn the 50-SMA, 100-SMA, and 200-SMA into support levels while the MACD continues on its bullish path.

(Click for larger view)

One of the best on-chain metrics to determine potential resistance or support levels is the In/Out of the Money Around Price chart provided by IntoTheBlock. Here we can observe how BTC was bought at a specific price range. The IOMAP chart clearly shows a strong resistance area between $12,378 and $12,725.

However, it seems that above this area, there is practically no resistance well until $13,300 which would indicate that a breakout past $13,500 can easily drive Bitcoin towards $15,000.

Mohit Sorout, the founder of Bitazu Capital, recently posted a tweet including a Bitcoin chart stating that a clear breakout would most likely lead BTC to $20,000 within 3 months. It seems that one of the most notable bullish signs was the breakout above a long-term trendline formed at the end of 2017.

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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 Erie Maxwell and posted on ZyCrypto.com.

Article reposted on Markethive by Jeffrey Sloe

Here’s what traders expect after Bitcoin price rallied to $13,217

Bitcoin price just secured a new 2020 high and traders expect the price to rise higher for 3 key reasons.

Image courtesy of CoinTelegraph

            OCT 21, 2020

On Oct. 21 Bitcoin (BTC) price overtook the $13K mark to reach $13,217 after traders took out key resistance levels at $11,900, $12,000, and $12,500 in the last 48-hours. While there are various technical reasons behind the abrupt upsurge, there are three key factors buoying the rally.

The three catalysts are a favorable technical structure, PayPal enabling cryptocurrency purchases, and Bitcoin's rising dominance rate.

PayPal's crypto announcement adds to BTC's momentum

Earlier today, PayPal officially announced that it is allowing users to buy and sell cryptocurrencies, including Bitcoin.

Throughout the past year, speculations on PayPal’s potential cryptocurrency integration continuously intensified after various reports claimed the company was working on it.

In an official statement, Dan Schulman, the president and CEO of PayPal, confirmed the cryptocurrency integration. He wrote:

“We are eager to work with central banks and regulators around the world to offer our support, and to meaningfully contribute to shaping the role that digital currencies will play in the future of global finance and commerce."

Following PayPal’s statement, the price of Bitcoin immediately rose from around $12,300 to as high as $12,900.

Sui Chung, the CEO of CF Benchmarks, a subsidiary of Kraken exchange, told Cointelegraph that bullish sentiment is likely returning to the crypto market. According to Chung:

“Bitcoin passing $13,000 today, a 16-month high, demonstrates that this trend is only picking up pace. That PayPal, a household name, has received a conditional BitLicense is likely propelling bullish sentiment. Today is significant as a signpost for further price appreciation in the future… the point by which mainstream media and ‘mom and pop’ retail investors may soon start to show interest in the asset, as they did in late 2017.”

Bitcoin dominance is rising

In the past week, Bitcoin has outperformed alternative cryptocurrencies, decentralized finance (DeFi) tokens, and Ethereum.

The dominance of Bitcoin. Source: Josh Olszewicz (Click images for larger view)

Josh Olszewicz, a cryptocurrency technical analyst, said the dominance of BTC is above a key moving average. Technically, this suggests that Bitcoin could continue to outperform altcoins in the near term. Olszewicz said:

“BTC dominance back above the 200-day moving average for the first time since May, king corn is back.”

BTC shows a bullish high time frame structure

Throughout October, traders have pinpointed the favorable technical structure of Bitcoin on the higher time frames.

Bitcoin's weekly chart, in particular, has shown a breakout and surpassed the previous local top achieved in August.

BTC/USD weekly chart. Source: TradingView.com (Click images for larger view)

Two months ago, BTC topped out at $12,468 on Binance and proceeded to fall below $10,000. As mentioned earlier, today's high volume surge took the price to a new 2020 high at $13,217, which is well above the previous local top.

In the short-term, traders anticipate that the market will cool down after such a strong rally. Flood, a pseudonymous crypto futures trader, said:

“I think we are quite overextended on $BTC for now. I'd imagine seeing a bit of a retrace where we try to find support in the 12.2-12k range. Not saying we can't run further, but hedged a bit here.”

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Original article posted on the CoinTelegraph.com site, by Joseph Young.

Article re-posted on Markethive by Jeffrey Sloe