Category: Cryptocurrency News

Everyone is looking for an edge when trading crypto. In a new video, a Bitcoin indicator designed for finding precise market turning points is used to turn $5 into $34,000. The results are a shocking 88% success rate and more than 679,000% ROI. Let’s take a closer look. About The Bitcoin Indicator Used: Fisher Transform The Fisher TransformFisher Transform was created by John Elhers and first mentioned in the November 2002 Issue of Technical Analysis of Stocks and Commodities Magazine. The tool attempts to make sense of unpredictable price movements by using statistics. The indicator takes price data and transforms it into a Gaussian normal distribution. All this means is that the tool tries to make the price data look like a more organized pattern that can be easier to understand. Related Reading: Bitcoin Price Double Fractal Points To “Extended” Parabolic Rally In addition to using the tool’s turning points for buy and sell signals, passing through the zero line is also a sign that a trend is strengthening. While the tool is highly effective, combining its signals with Japanese candlesticks, chart patterns, and Elliott Wave Principle can improve results. The monthly Fisher Transform | BTCUSD on TradingView.com Turning $5 Of Bitcoin Into $34,000 In the video, the monthly Fisher Transform is used to generate buy and sell signals when the trigger line crosses above the fisher line from below or above, respectively. The tool makes several bad trades. It notably loses some money it has earned on the way up at the second Bitcoin top in 2021. Despite a couple slip ups, the Fisher Transform turns $5 into $34,000 in the end. Over $30,000 is added during the best trade. Related Reading: Why Bitcoin May Have Completed The “Perfect” Pullback This translates to roughly a 679,000% ROI over the lifetime of BTCUSD price history. The shocking return is a reminder for investors and traders to find a technical system that works and then let it do its thing. Objective, non-discretionary trading systems may be boring but take emotions and bias out of the equation. Tony is the author of the CoinChartist (VIP) newsletter. Follow @TonyTheBullBTC & @coinchartist_io on Twitter. Or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com

Mike McGlone, a senior commodity strategist at Bloomberg, has highlighted Bitcoin’s (BTC) historical patterns of boom and bust, which are closely tied to liquidity. According to McGlone, Bitcoin’s current price level of around $27,000 may be at risk of reversion, considering that it was only $7,000 at the end of 2019 before the massive liquidity pump in 2020. Related Reading: Solana (SOL) Records Surge In New Active Addresses, But Onchain Activity Takes A Dive Bitcoin Faces Unprecedented Risk? McGlone’s analysis also indicates that Bitcoin’s downward trajectory, as demonstrated by its 52-week moving average, contrasts with the upward trend it experienced at the onset of the pandemic. This suggests that the cryptocurrency is susceptible to booms when liquidity is abundant but vulnerable to busts when liquidity is removed. As such, McGlone recommends respecting the down-sloping 52-week mean in assessing Bitcoin’s direction bias. Despite the recent bank run, the Federal Reserve (Fed) has tightened twice, which may indicate the central bank’s tenacity, McGlone points out that slumping copper and cryptocurrencies, including Bitcoin, are paying heed to the warning, which contrasts notably with the resilient stock market. Furthermore, in a recent interview, McGlone warned that Bitcoin could potentially experience a significant decline and return to its 2019 rally starting point of around $7,000. McGlone cites the drying up of liquidity and rising interest rates as key factors that could lead to a mean reversion for Bitcoin. While acknowledging the potential for Bitcoin to rebound, McGlone notes that the cryptocurrency has yet to exhibit strong divergence from other assets and suggests that investors should wait for a significant drop in the S&P 500 and copper before considering a long position in Bitcoin. Looking at the facts of Bitcoin, McGlone notes that before the massive liquidity pump in 2020, the cryptocurrency’s average price in 2019 was around $7,000. It subsequently surged to $60,000 before settling at its current level of $27,000. While Bitcoin is still trading at four times its 2019 average price, McGlone cautions that the risk of mean reversion remains and suggests that investors should exercise caution in the current market environment. BTC’s ABC Pattern Could Signal Consolidation And Potential For Upside Crypto analyst Michael Van de Poppe has assessed Bitcoin’s recent price action and suggests that the ABC pattern could technically be complete for BTC. The C wave went lower than the initial A wave, and they are approximately the same length from a price drop perspective. The lowest wick was only $500 off the base case, and the price seems to have entered consolidation just as expected, albeit higher. Van de Poppe notes that C waves having approximately the same length as the A wave is uncommon, and sometimes the C wave can go much deeper than the A wave. However, at this point, it is worth considering that the bottom of the C wave may be in. If another drop is lower, it should happen in the first half of this week.  If the price breaks above $27,700 or even flips the descending trendline, that could be early signs that consolidation is ending, and Bitcoin’s price is ready for continuation upwards. The ultimate level to flip for higher conviction is $29,000, and RSI is above 50. Related Reading: How Does Current Bitcoin Rally Compare With Historical Ones? On the other hand, if there is a daily candle close below $16,700, another leg down becomes more likely, and Van de Poppe’s target for that would still be $24,000 – $25,3000. Van de Poppe emphasizes that both scenarios are bullish over the medium timeframe (months) as long as Bitcoin’s price does not drop and stays under $22,000 in a sustained manner. Featured image from iStock, chart from TradingView.com

Bored Apes look a lot like baseball cards. But regulators — particularly at the Securities and Exchange Commission — are making a strained case to the contrary.

Bitcoin volatility has dropped as new liquidity is not flowing into the market, but on-chain data presents multiple reasons why BTC investors continue to hold.

Despite the prevailing selling pressure in the cryptocurrency market, Litecoin has emerged as a standout performer. While the past 24 hours have not witnessed significant movement in the LTC price, the weekly chart reveals an appreciation of nearly 4%. A significant breakthrough occurred as Litecoin surpassed the crucial $90 price level, signaling a positive shift in its price. Technical analysis suggests that the bulls hold sway over the price action, with demand and accumulation indicators displaying positive signals on the daily chart. Related Reading: Role Reversal: Ethereum Defies Expectations With Lower Volatility Than Bitcoin Most altcoins, including Litecoin, have exhibited similar price patterns influenced by the fluctuations of Bitcoin. Therefore, sustaining the LTC price above the $90 mark will depend on the overall strength of the broader market. Should Bitcoin reclaim the $27,000 zone, it could pave the way for Litecoin to overcome its significant overhead resistance in subsequent trading sessions. While buyers of LTC currently maintain a favorable position, it is important to note that a slight push from the bears could potentially drive the price below $90, prompting bearish activity. However, the increased market capitalization of Litecoin in the recent session suggests that buyers are currently in control. Litecoin Price Analysis: One-Day Chart At the time of writing, Litecoin (LTC) was valued at $91.02. The altcoin’s successful move above the $90 threshold has strengthened the bulls, who are now pushing prices even higher. However, a formidable barrier stands at $92.8. Surmounting this resistance level could potentially propel LTC toward the $97 mark. Conversely, declining the current price level would push the altcoin below $90. Should this occur, support might be found at around $86. The recent session’s trading volume of LTC was positive (green), indicating a growing demand for the coin. Technical Analysis Buyers have displayed consistent confidence in Litecoin (LTC) as the asset’s price has improved. This positive sentiment is reflected in the Relative Strength Index (RSI), positioned above the half-line and just below the 60 mark. This indicates more buyers than sellers, reinforcing the optimistic outlook. Moreover, LTC’s price remains above the 20-Simple Moving Average (SMA) line, indicating that buyers are driving the market’s momentum. Additionally, LTC has managed to stay above the 50-SMA (yellow) and the 200-SMA (green) lines, pointing towards increased demand for the asset. Litecoin (LTC) demonstrated buy signals alongside other technical indicators, suggesting favorable market conditions. The Moving Average Convergence Divergence (MACD) revealed the formation of green signal bars, indicating positive momentum and a bullish trend. Related Reading: Bitcoin Volatility Shrinks To Historical Levels, Violent Move Incoming? Furthermore, the Bollinger Bands, a volatility indicator, displayed wide bands, indicating increased price volatility and fluctuation. This implies that LTC is unlikely to trade within a narrow price range, as there is potential for significant price swings. Featured Image From UnSplash, Charts From TradingView.com

The v19 hard fork didn’t go as planned for the privacy coin, but a fix has been released; v18 had experienced a few kinks, too.