Bitcoin was on its way to a big boom, traders explain what has changed

Bitcoin was on its way to a big boom, traders explain what has changed 

Analysis

With the firm recovery in the Dow Jones Industrial Average and Bitcoin who defended the support level of 6,400 USD with strength, expected crypto traders that the Bitcoin- price in the short term to the central region would recover 7,500 USD at least. In the past 48 hours, but they have to lean to a resumption of the downward trend for start Bitcoin , as the relief rally of the dominant cryptocurrency seemingly come to an end.             

A lot of data from the unbalanced buy and sell orders on major exchanges like BitMEX and the decline in the overall open interest of Bitcoin futures indicate a lack of demand from buyers. Historically, when the Bitcoin- price approached a complete capitulation phase in December 2018, a month-long was accumulating in a low price range required in order to recover over a longer period.             

The last time Bitcoin fell into the low $ 3,000 region, it took about four months for a gradual recovery to start in the $ 7,000 to $ 8,000 range. There is concern that the price of Bitcoin has recovered a little too quickly after falling to $ 3,700, and as the biggest whales in the crypto market like Joe007 explain, such a short-term recovery in V-shape has occurred after a massive correction in the crypto market never took place in the past.       

The top trader explains why the pain on Wall Street leads to a painful Bitcoin correction  

Speaking to Cointelegraph , cryptocurrency trader and technical analyst Eric Thies said that the struggle of Wall Street and institutional investors directly the price development of the affected Bitcoin . As the stock market in the United States got a shock, dropped the open interest on the major futures exchanges including CME considerably. In futures trading, the term “open interest” refers to the total number of long and short contracts open at a particular point in time.               

According to skew the aggregate open are positions for all Bitcoin- futures contracts - including CME, BitMEX , Binance , OKEx and Huobi - since March 1, more than 4 , 2 billion to just $ 2 billion sunk .              

Based on the data, Thies stressed that the decline in the volume of the futures market will correct the price of LED Bitcoin , causing chaos in the overall cryptocurrency market:           

“With the slump last week, many initially scratched their heads. From a logical point of view , however , this makes perfect sense. Looking at the facts of the situation: Bitcoin looked optimistic before the collapse; This is the first "recession" of Bitcoin . [...] The point is that since futures have such a large weight in market volume, you guess what will happen if Wall Street is destroyed ... Bitcoin is also shredded. And last week was a very interesting point. "             

Some strategists in the United States seem to believe that the stock market has not yet bottomed out. The coronavirus pandemic continues to grow and the United States has overtaken China as the most infected country in the world. It is unlikely that the negative impact of the Bitcoin futures market on BTC's price development will soon subside and increase selling pressure on the market.      

Why Bitcoin originally was on his way to an auxiliary rally and now exposed to the risk of a further correction is  

Several renowned distributors that in the history of Bitcoin several market cycles have predicted how PentarhUdi, saw a decline of Bitcoin- price to below 6,000 USD ahead , was present as the price of BTC in February still over 10,000 dollars.           

The 200-week moving average mentioned by PentarhUdi on February 10 was $ 5,800. A cascade of liquidations of BitMEX however, and other exchanges meant that the price of Bitcoin fell to 3,600 dollars.             

After correction turned PentarhUdi determined that Bitcoin on up could recover to 8,500 USD, which is technically a simple moving represents 200-day moving average. Then said the trader that BTC remains vulnerable to a second correction to below 3,000 USD is , and added :       

“In the midst of the global financial panic , the Bitcoin price is aggressively attacking the weekly SMA200 and the lower triangle line on the previous chart. I see that this may not end as well as I thought. Since the declining potential of global markets enormously is . "      

Bitcoin recovered well from $ 5,200 to around $ 6,900, but was declined at a historically strong level of resistance. It is now negative year over year at the border, and shortly said Thies against Cointelegraph, that he now become a bearish outlook neige :          

“Another interesting point of the event is that it was on March 13th, 20 and the low was $ 3,850. In the charts, the closing price on March 13, 2019 was exactly the same number. From a pricing perspective, it's interesting that BTC has been marginally negative for YOY profits since the futures implementation started in 2017. I am watching this closely because unfortunately I am bearish at the moment. "  

Bitcoin's bottom could be lower  

Bitcoin has had less correlation with the U.S. stock market since March 25. While the Dow Jones gained more than 6% on Thursday , the price of Bitcoin remained relatively stable. Venture capital investor and partner at Chris Holder Burniske said that, purely on a technical basis , Bitcoin could retest the lows at $ 3,000.             

This confirms Bitcoin's historical cycles , which show that within three weeks , Bitcoin has never recovered from a near 60% correction in a V-shaped pattern. Thus Bitcoin medium to long term, can maintain an upward trend at the macro level, is a renewed depth test and several months of stable accumulation phase is crucial.       

Borrowing from the logic of other seasoned traders , Burniske said that Bitcoin's slump due to the 200-week moving average, which usually served as a historic support level for BTC, makes the dominant cryptocurrency vulnerable to yet another major retreat:       

“Many people ask where BTC floors are. In short, I wouldn't be surprised to see another test of our 2018 lows near $ 3,000. Historically, I am relying on the 200-week moving average (yellow line below) as our bear market low point, but we have failed last Thursday at ~ 5500 USD. "  

The unprecedented weakness of the altcoin market can be seen as another sign of the lack of appetite for high-risk assets and cryptocurrencies in general, as trader DonAlt said : “BTC appears to be going up, down or sideways. Alts look, as they could down, go down or down. "          

When bitcoin is on its way to an actual relief rally , altcoins tend to top bitcoin , as seen in December 2019, when bitcoin started to recover from $ 6,400 to over $ 7,500. Bitcoin is now essentially in the same price range. It has recovered from $ 6,400 and has risen to $ 6,950, but large altcoins such as Ether ( ETH ) and Bitcoin Cash ( BCH ) have barely moved against Bitcoin and the US dollar .                         

Strategists predict that the US equity market will continue to be shaken by the economic consequences of the coronavirus pandemic. New reports show that the US virus outbreak may be just beginning - and like China in the early days, there is a high likelihood that the US may take more than two months to recover. 

Kevin Johnson , CEO of Starbucks, said that US recovery from corona virus could be delayed by a week or two compared to China, based on the different containment efforts.    

Given the record-high unemployment claims and the rapidly growing outbreak of corona viruses, both the U.S. stock market and Bitcoin are still very susceptible to a further decline in the foreseeable future, primarily due to the declining open interest and volume of the futures market.  

# Bitcoin News    # Bitcoin Price    # BitMEX 

India Crypto Renaissance: Industry sees rebirth as RBI Crypto Ban Lifts

analysis

Among industry participants and investors, India is becoming a market to watch out for after a Reserve Bank of India banning crypto ban in April 2018. Prominent investors looking for a piece of India's emerging crypto space include Tim Draper, a billionaire who received thousands of Bitcoin from the 2014 Silk Road auction.  

Draper said recently , that he was "more Bitcoin- have met and Crypto-ups" from India, and that he "hoped to finance a number of them." Recently he also showed his enthusiasm for the step of the Supreme Court of India, the ban on the Reserve Bank of India for financial institutions, the crypto-based services offer, pick up , and tweeted : "A renaissance of India. Now is crypto legal. "             

Local companies take action

In addition to Draper, other investors who have shown interest in the Indian crypto market include the crypto exchange CoinDCX . On March 12, announced CoinDCX a financing in the amount of 1 , 3 million of which will be used to increase the crypto awareness and acceptance in India. The exchange is looking for a long-term project with the name cite TryCrypto in the effort to introduce 50 million consumers in India cryptocurrencies .              

CoinDCX was founded in 2018 and already has a recently completed Series A financing round led by Polychain Capital, HDR Group ( BitMex operator) and Bain Capital Ventures to name a few.          

The Mumbai-based stock exchange secured $ 3 million in funding, to which its CEO Sumit Gupta said: "This successful round of investments will make a major contribution to funding our vision to grow India to a $ 5 trillion Accelerate economy. "  

Also Binance , one of the biggest crypto exchanges in the world, is the potential of the Indian market crypto convinced . Last November, Binance bought WazirX , an Indian crypto exchange. The move was welcomed by Indian crypto experts like Kashif Raza as one who "will give the Indian startup scene a moral boost".              

With the support of Binance Coin ( BNB ) and Binance USD ( BUSD ) has WazirX and cash equivalents of $ 50 million for local Blockchain- projects provided . CEO Nischal Shetty said : "With this fund, we want to encourage more and more founders and teams and enable them to enter and build. This initiative also shows the incredible potential that the Indian blockchain ecosystem offers. "                        

What makes India's crypto space ready for investment?

It is obvious that the recent interest of investors and companies in the Indian market crypto to the judgment of the Supreme Court of India on 4 March due is . The ban previously imposed by the Reserve Bank of India on all crypto-related banking services has been declared unconstitutional, much to postpone the country's crypto community. In addition to the court ruling, industry observers and experts believe that India has more to offer than an apparently positive regulatory environment.      

Sharat Chandra, a consultant for emerging technologies, believes that India is a good market for a crypto Renaissance is because almost 190 million people living in the country without a bank account.  

Chandra told Cointelegraph : "Crypto startups can get unbanked into the fold of a bank and promote the cause of financial inclusion ." He added: "India remains at the forefront of overseas transfers, and crypto can not only reduce processing time, but also drastically reduce transfer costs." Gupta Chandra agrees and has Cointelegraph it out :        

“India has 1.3 billion inhabitants, of which only 5 million are in crypto, which corresponds to 0.4%. Even with 0 , 4 % of the crypto people of Indian crypto market has a good volume of daily crypto trade. CoinDCX has a daily volume of 10 to 15 million US dollars, which shows that there is enormous growth potential. "   

Dileep Seinberg , CEO and founder of Exioms - a Delhi-based provider of blockchain solutions - also commented on the issue and told Cointelegraph :           

“India has three key elements that make it a good and large market. First, the young generation of users who can use and trust the Internet and mobile apps for financial transactions. Secondly, the spread of 4G and faster internet services across India and thirdly, access to smartphones at very low cost. "  

Not out of the forest yet

Despite the optimism shared by the Indian crypto community, regulatory uncertainty remains. According Sharat Chandra "the war that was cryptocurrency ban RBI spurious reasons and the RBI may very well appeal the decision of the Supreme Court of India."     

The Reserve Bank of India is already planning to petition against the recent Supreme Court ruling on the controversial crypto ban. A report by the Economic Times shows that RBI fears that a country's crypto renaissance threatens the country's banking system. Moreover, can decision of the Indian Parliament continue exclusionary legislative apparatus for companies related to cryptosystems and a pending law block Chain introduce .          

In addition, the current corona virus pandemic has hit the entire crypto market and the global economy. Chandra 's view, however, that people are optimistic, even if the recovery in prices for digital assets may take longer than expected. Gupta said: “Less than 1% of the world's population is in crypto assets. This means the crypto market that largely uncorrelated with major global assets of the world such as stocks, bonds, etc. is . “ He added:    

“We saw a downward trend in crypto market prices after the Covid pandemic , but people still believe in crypto and trade and invest in the crypto market. The Hashrate of Bitcoin is still at 105 Ehash / s, which shows that people continue to Bitcoin believe . And since Bitcoin drives the entire crypto market in terms of prices, it proves that people have confidence in the crypto market. "                   

Full steam ahead?

Despite a continuing cloud over the future of crypto currencies in India are industry observers as Seinberg and Gupta optimistic that a bright future in front of the door stands. Seinberg believes:        

"Over the next two to three years, India will have its own cryptocurrency have on site. The RBI focuses on innovation and NPCI has the Vajra block Chain Platform for wider adoption started . "           

Seinberg also believes that "Tim Draper's recent visit to India and commitment to new investments will inspire and inspire Indian institutional investors." On the other hand, Gupta said winning the lawsuit was only the first step, adding, "Now the next big step is to integrate smart and sensible crypto rules in India." With new reports on Indian government plans to regulate cryptocurrencies , Gupta believes:       

“This is the step in the right direction as the introduction of correct regulations will help open and strengthen many crypto companies in India. In addition, individuals are open to investing in cryptocurrencies . "