I said in my blog of 18 September that if Bitcoin breaks the $9100 level, we should expect it to fall to $8000. The $8000 level was also broken falling at one point to $7820. Currently, the price is hovering between $7974 - $8171. There are some indications that there is a bit of a fightback by the bulls. They don't seem to be getting far with their endeavour. Nevertheless, the question remains, is $6500 possible? Simple answer, yes.
To see why we must look at just two things. First, let us look at the weekly Bitcoin price. Second, Bitcoin's volume profile. For those who have no idea what volume profile is, here is a short explanation. Volume profile is an advanced charting study that displays trading activity over a specified period at specified price levels. The study plots a histogram on the chart meant to reveal dominant or significant price levels based on volume. Unfortunately, discussing volume profile in full is beyond the scope of this blog piece.
Combining both the volume profile and Bitcoin weekly prices is seen in the chart above. There is a clear indication that there is volume activity at around the $6500 levels. The next level of support for Bitcoin is $7500. If breached, $6500 is certainly possible. Public commentary on Bitcoin has become ridiculous in many cases. I will ignore giving examples as they are too numerous to mention. I may remind everyone of the following - "You can't trade the market you want only the one in front of you". We must stick to this simple principle and make our decisions from that. And as to where the market wants to go, your guess is as good as mine.
Bitcoin Volume Profile and Weekly Price courtesy of GoCharting
It is official, Cryptosphere is now released. As described on the front cover, Cryptosphere is a collection of online resources that anyone can use. The idea being towards gaining knowledge of the crypto space. This book includes links to books, YouTube Channels, Twitter pages, Decentralized Exchanges, Market Insights and more. While this is nothing new, Cryptosphere is unique in that it is an effort to gather resources in one place. This helps anyone in getting the knowledge they require instead of having to spend time searching for it.
The crypto space is far from mature as there is still massive growth and development to come. For those interested in this space, it is incumbent on you to understand as much as you can. It is hoped that this book will help you on that journey. My aim is to be a contributor to this space not necessarily an influencer. The more we all contribute, the better it is for everyone.
At the moment, Cryptosphere is only available as an Amazon Kindle eBook. It will also be released on iTunes, Barnes & Noble, Scribd, and a few other platforms. I will keep everyone posted as this happens; Cryptosphere also has a web site where you can pick up a free chapter. This will help you have some idea of what the book is about. In addition, the website has a contact page where you can give feedback and make comments. These will be most welcome. I look forward to hearing from you all.
You can also buy the book on Amazon:
The cryptocurrency market is probably one of the most confusing and frustrating markets ever in existence. This has been further exacerbated by the presence of social media. Social media is not necessarily a bad thing. We now have sentimental analysis in full swing due to social media. One example is Twitter. This platform can inform an investor/speculator information as to what to expect from a particular asset. This very same media platform is also full of rumours and of course false information. This is why I would rather study the charts and ignore the chatter. Social chatter on Bitcoin is particularly infuriating. Case in point, Bitcoin is dead articles.
Getting back to Bitcoin, we all have observed that it has been in a consolidation pattern. Price volatility has not been too bad. I am sure those using Bollinger bands can bear witness to that. Looking at the BTC charts, we realise that price has tested support several times over the last few months. That support is at $9352 level. Remember the more times price tests a key level, the more likely it will be broken. As seen on the chart, if Bitcoin tests this key level, it will be the fourth time and may well breakthrough. If this level is broken, and price falls to $9083, expect the price to fall to the $8000 level.
You must remember that you are not alone in observing price movements, others are seeing the same patterns. Traders in long positions may well feel that the BTC price may well drop below support. The more insecure they feel, the more they are likely to sell their positions. We must not fail to mention those on the sidelines, in other words, those not in the market but observing. For them, an opportunity to sell into the market may have presented itself. They are likely to sell short. This will put even more selling pressure on the price of Bitcoin.
Having said that, nothing is stopping the price hitting $12000. We cannot underestimate that possibility. As I have often joked in the past, all it takes is Vitalik Buterin changing the colour of his underwear and the price goes up. I have admitted that things have since changed from such days. The crypto market is still fickle and could change suddenly with no warning. And as to where the price is heading, your guess is as good as mine.
The crypto market has taken a strange turn - the altcoins are falling in value while Bitcoin seems to hold its own. There is a decoupling of some sort between BTC and the rest of the cryptocurrencies. How has this happened? What is going on?
First, the trends for the other nine altcoins in the top ten is bearish. Secondly, perhaps the most interesting is the 50-day moving average crossing below the 200-day moving average. This is known as the “Death Cross”. As defined by Investopedia, a death cross is a technical chart pattern indicating the potential for a major selloff.
That major selloff is when an asset’s short term moving average crosses below its long-term moving average. It must be said that not all altcoins in the top ten have the death cross. Binance Coin and Bitcoin SV are examples of this. The selloff has been baffling as just a few months ago, Litecoin was leading the charge in the markets. Could there be a loss of belief in the market for altcoins?
Bitcoin’s price is moving sideways, in other words, consolidation. We all remember what the pundits were saying just a few weeks ago. I wonder why people listen to these guys. Truth be told, no one is sure what Bitcoin will do. Bitcoin has recently increased its dominance in the crypto space. As of this writing, Bitcoin has a 70.02% dominance. Some are already predicting Bitcoin might have a 71.4% dominance.
Like many of you, I do not expect the altcoins to continue their bearishness forever. Price contraction will ultimately bring about price expansion. These altcoins are bound to recover. To what extent is not known. One thing we can all agree on is quite a few altcoins are not useful. I think we can safely predict that most of these will disappear or just abandoned. In some instances, there is zero liquidity for trades to take place. I suspect we might be left with between 50 and 70 altcoins. Could this be the beginning of the death of most altcoins? I don’t know nor am I sure but then again, your guess is as good as mine.
As always, here are just some of the stories you may have missed over the last couple of weeks.
Here are some of the stories you will get to read in the magazine:
Winklevoss Twins Say They’re ‘In Talks’ About Joining Libra Association
The Tipping Point for Mass Blockchain Adoption
Pieter Wuille Unveils 'Miniscript,' A New Smart Language for Bitcoin
Telegram's 300 million users could soon be trading Bitcoin and Cryptos
Blockchain and Artificial Intelligence united for a 4.0 tech revolution
Hong Kong Businesses Begin Adopting Bitcoin as a Form of Protest
XRP Community is Threatening a "Takeover" if Ripple Execs Keep Dumping
Crypto Lobby Fights to Contain Backlash From Facebook's Libra
Numerai's Prediction Marketplace Erasure Arrives on Ethereum
Stablecoins Vunerable to Regulatory Uncertainty: European Central Bank
A more enjoyable option would be for you to read the magazine on your iPad using the Flipboard app. If you do not have the Flipboard app, download in the app store, install, and enter the "Blockchainology". This magazine is curated by Olusegun Oyekanmi
Swap your cryptos here:
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