Down Again: Bitcoin Is Closing on Key Long-Term Price Support

Bitcoin (BTC) is on the defensive after a drop to six-week lows and could soon test crucial long-term support below $3,300. The cryptocurrency fell to $3,322 – the lowest level since Dec. 17 earlier today – bolstering the bearish view put forward by Monday’s high-volume range breakdown. Trading volumes jumped to 18-day highs near $7 billion yesterday, according to CoinMarketCap data. The high-volume sell-off has likely opened the doors to re-test of December lows near $3,100. Even so, the sellers need to observe caution, as the 200-week simple moving average (SMA)…

Bitcoin Price Looks South After Drop to Six-Week Lows

Bitcoin ended a two-week period of consolidation with a drop to six-week lows earlier today. The leading cryptocurrency by market value fell below $3,470 at 04:45 UTC, confirming a downside break of a triangle pattern. That range breakdown was followed by a quick slide to $3,357 – the lowest level since Dec. 17 – according to Bitstamp data. A prolonged period of consolidation usually yields a big move in the direction of the breakout. For instance, BTC ended a multi-week-long trading range with a move below $6,000 on Nov. 14…

Stranger Things: The Upside of Down Bitcoin Prices

Edward Woodford is the co-founder and CEO of Seed CX, which, offers a licensed exchange for institutional trading and settlement of spot digital asset products and plans to offer a market for CFTC-regulated digital asset derivatives. The following is an exclusive contribution to CoinDesk’s 2018 Year in Review. While 2018’s falling bitcoin prices led many observers to write off digital assets altogether, the correction should actually help force the market as a whole to mature. That maturation is exactly what the space needs to attract more institutional investors, whose arrival en…

Bitcoin Awaits Triangle Breakout as Price Squeeze Continues

Bitcoin’s (BTC) price is largely unchanged on the day and maybe building for a strong exit from the weeks-long period of consolidation. The leading cryptocurrency hit highs above $4,100 on Jan. 8 before moving lower to around $3,500, where it’s become trapped in a tightening trading range. The bears have persistently failed to keep prices below $3,500, weakening the bearish case put forward by the 9 percent drop seen on Jan. 10. That strong support level has seen the formation of a descending triangle pattern over the last 2.5 weeks,…

Bitcoin Price Defends $3.5K After Cboe Pulls ETF Proposal

With bitcoin (BTC) showing resilience to negative news flow, a strong bullish move is looking increasingly likely. On Wednesday, the Chicago Board Options Exchange’s (CBOE) BZX equity exchange withdrew its request for a rule change by the U.S. Securities and Exchange Commission (SEC) that would have allowed it to list a bitcoin exchange-traded fund (ETF) backed by VanEck and SolidX. The market narrative with respect to the ETF is that its approval could trigger the next bull run in the leading cryptocurrency by market value. Moreover, in the past, markets…

Gold Price May Offer Clues About Next Big Bitcoin Move

Bitcoin (BTC) traders could get cues from an apparent negative correlation that has developed between bitcoin and gold prices. Gold picked up a strong bid at $1,196 on Nov. 13 and jumped to $1,300 on Jan. 4, possibly due to a sell-off in the weakening U.S. dollar. The greenback was down against most currencies in last two months of 2018 on growing speculation that the Federal Reserve (Fed) could decrease or pause interest rate hikes in 2019. Bitcoin, however, did not benefit from that broad-based sell-off in the dollar. The…

Bitcoin Sees Longest Stretch of Price Consolidation Since October

Bitcoin (BTC) is witnessing the longest stretch of range-bound price activity in three months. The leading cryptocurrency by market capitalization has been largely restricted to trading between $3,700 and $3,500 since Jan. 11 – the longest stretch at such a narrow range since the end of October. Back then, the market had gone quiet, with prices staying within the $6,500–$6,350 range in the 12 days leading up to Oct. 28. On the following day, BTC dropped to $6,208. After another period of sideways movement, bitcoin fell well below the crucial…

Bitcoin’s Price Counters the VIX, Confirming It’s Still a Risk Asset

Evidence is emerging that bitcoin has yet to truly earn its reputation as an “uncorreleated asset.” Case and point, bitcoin’s latest sell-off from $6,000 to nearly $3,000 was accompanied by a surge in the CBOE Volatility Index (VIX). The VIX measures the 30-day forward-looking volatility of the S&P 500 to gauge the market’s fear and risk tolerance, which is why it is commonly referred to as the “fear gauge” for the broader U.S. stock market.  In theory, the VIX should be low when the S&P 500 is in a steady uptrend and…

This Former Bitcoin Price Support Is Now Capping Gains

Bitcoin’s (BTC) weekly gains were wiped out at the weekend by a key moving average that previously offered support. The leading cryptocurrency by market capitalization jumped to highs above $6,750 on Saturday, having weakened the immediate bearish case with a repeated defense of the psychological support of $3,500 last week. BTC, however, failed to secure a UTC close above the 21-month MA. More importantly, rejection at that MA hurdle proved costly – BTC fell 3.8 percent to $3,470 yesterday. So, it could be argued that the MA line, which served…

Bitcoin Price Consolidation May Have Weakened Bear Case

Bitcoin’s eight-day stretch of consolidation looks to have weakened the prospects of a drop back to December lows near $3,100. The leading cryptocurrency by market value has been restricted to a narrow range of $3,500 to $3,700 since Jan. 11. That range play is somewhat surprising, as BTC had set the stage for a quick slide toward December lows near $3,100 with a 9 percent drop on Jan. 10 – the biggest single-day decline since Nov. 24. Notably, prices fell to $3,500 that day, erasing the hard-fought gains of the preceding…