Bitcoin price extended losses and traded below the $3,720 and $3,700 supports against the US Dollar.The price traded as low as $3,671 and it is currently consolidating above the $3,700 level.There is a crucial bearish trend line formed with resistance at $3,775 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could correct higher, but it is likely to struggle near the $3,740 and $3,760 resistance levels.Bitcoin price is trading with a bearish bias below $3,800 against the US Dollar. BTC remains at a risk of more losses as long as it is trading below $3,760 and $3,800.Bitcoin Price AnalysisThis week, there was a downside extension below the $3,800 support in bitcoin price against the US Dollar. The BTC/USD pair declined below the key $3,760 and $3,720 support levels to move into a bearish zone. There was even a close below the $3,760 level and the 100 hourly simple moving average. Finally, the price spiked below the $3,700 level and traded to a new monthly low at $3,671. Later, it started consolidating losses and traded in a range above the $3,700 level.The price climbed above the 23.6% Fib retracement level of the recent drop from the $3,805 high to $3,671 low. However, there are many hurdles on the upside near the $3,760 and $3,775 levels. At the outset, there is a contracting triangle in place with resistance at $3,715 on the hourly chart of the BTC/USD pair. If there is an upside break, the pair could correct towards the $3,740 level. It represents the 50% Fib retracement level of the recent drop from the $3,805 high to $3,671 low.The main resistance is near the $3,760 level, which acted as a strong support earlier. Moreover, there is a crucial bearish trend line formed with resistance at $3,775 on the same chart. The 100 hourly SMA is also near the trend line and $3,775. Therefore, there are many hurdles for buyers near the $3,760 and $3,775 levels. Above $3,775, the price could climb above $3,800 and $3,820 in the near term.Looking at the chart, bitcoin price is struggling below the $3,760 pivot level. If sellers remain in action, there are chances of more losses below the $3,700 and $3,670 support levels. The next key support is at $3,620 and $3,600, where are there are high possibilities of buyers to emerge.Technical indicatorsHourly MACD – The MACD is slowly gaining strength in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering and it could test the 50 level.Major Support Level – $3,670 followed by $3,620.Major Resistance Level – $3,740, $3,760 and 3,775.
Archives for March 4, 2019
The total crypto market cap is holding the key $120.0B support, but it remains at a risk of more losses.EOS price fell more than 5% and it broke the $3.50 and $3.40 support levels.Binance Coin (BNB) outperformed and rallied more than 8% above $12.20.Bitcoin cash price tested the $125 support and it could decline further in the near term.Tron (TRX) price tested the key $0.0220 support level and it is currently consolidating.The crypto market is under a lot of selling pressure, with bearish moves in bitcoin (BTC) and Ethereum (ETH). Binance coin (BNB) is holding the ground, while BCH, ripple, EOS, TRX and ADA extending losses.Bitcoin Cash Price AnalysisBitcoin cash price extended losses below the $130 support level against the US Dollar. The BCH/USD pair broke the $128 and $126 support levels and it recently tested the $125 support. The price is currently consolidating in a range and it seems like there could be a downside spike towards the $124 or $122 support level.On the upside, an initial resistance is near the $128 level. The main resistance is near the $130 level, above which the price could move into a positive zone in the near term.EOS, Tron (TRX) and BNB Price AnalysisEOS price reversed most its gains and declined below the $3.60 support level. Sellers gained pace below the $3.50 and $3.40 support levels recently. It tested the $3.25 support level and it seems like sellers are aiming for the $3.15 support level. On the upside, there are many hurdles near $3.35, $3.40 and $3.50.Tron price settled below the key $0.0240 support level and moved into a bearish zone. TRX price is currently trading above the $0.0220 support and consolidating losses. In the short-term, there could be a minor correction towards the $0.0235 and $0.0240 resistance levels.Binance coin (BNB) outpaced all major cryptocurrencies and held the crypto market. BNB price rallied above the $12.00 and $12.20 resistance levels. It is currently up more than 8% and it could continue to rise towards the $12.50 resistance level.Looking at the total cryptocurrency market cap hourly chart, there was a downside extension below the $122.0B support and a declining channel. The market cap declined towards the $120.0B support and later rebounded. A new declining channel in place, with resistance near the $121.5B level. In the short-term, there could be an upward move, but the previous supports near $122.0B and $123.0B are likely to act as resistances for buyers. Therefore, there is a risk of more losses in bitcoin, ETH, tron, litecoin, EOS, ripple, cardano, XLM, ICX, BCH, XMR and other altcoins in the coming sessions.
Bitcoin miners in China are buying used equipment and making deals with mining farms and hydroelectric plants, betting abundant water this summer will make their businesses profitable again.
That’s because during this season a significant amount of excess electricity is expected to be generated by hundreds of hydropower stations, especially in China’s mountainous southwestern provinces of Sichuan and Yunnan. This level of excess power results in competitive electricity costs for bitcoin miners, making it perhaps one of the rare opportunities to earn profits in the current bear market that has already impacted the mining sector.
Hashage, a company based in the city of Chengdu in Sichuan that operates six mining farms with a supply of about 200,000 slots for machines, for example, said the electricity cost in Sichuan during the summer – which may vary from hydropower plants – is usually around 0.25 yuan, or $0.037, per kilowatt hour (kWh) for hosting equipment for miners.
Xun Zheng, the company’s CEO, told CoinDesk that over the past month the firm has been talking to individual miners and larger mining farms with a total demand of more than 1 million slots for deploying mining chips. According to Zheng, individual miners on average are looking to host 1,000 to 3,000 units of mining equipment each, while larger farms are eyeing at a larger scale of over tens of thousands of machines.
He added although the exact electricity costs with local hydropower stations won’t be finalized until the end of March, miners have already started looking for resources and negotiating deals with mining farms before the season comes so that they have enough time to ship equipment to the mountains and set them up.
“The interest is definitely there,” Zheng said, adding most of the miners that have shown enthusiasm are from China’s Inner Mongolia and Xinjiang provinces, where they operate mining farms using fossil power plants. The electricity costs there are usually around 0.35 yuan, or $0.052, per 1 kWh.
Even just the difference of 0.01 Chinese yuan ($0.0015) is significant for bitcoin miners, especially in the current bear market when one bitcoin is worth about $3,700 as of press time.
Take for example, Bitmain’s AntMiner S9, which consumes about 30 kWh per day, only one kilowatt-hour more than the average U.S. home in 2017.
That means for each machine, an additional $0.045 can be saved per day from the seemingly negligible difference. For a miner that has 10,000 machines, that’s a difference of $450 per day, and $13,500 a month.
Second-hand in demand
Adding to this level of interest is also the relatively cheap cost of buying second-hand bitcoin ASICs, especially used AntMiner S9s, Zheng said.
According to him, a used S9, depending on the level of damage, could be bought for about $150, with a computing capacity of a bit over 10 trillion hashes per second (TH/s).
Indeed, some wholesalers in China are currently selling second-hand S9s on the e-commerce marketplace Alibaba for $100 to $200 each. While manufacturer Bitmain’s official website lists the price of brand new S9 to be around $450, other wholesalers are advertising alternative channels for users to buy new S9 equipment for around $300.
Tyler Xiong, chief marketing officer of mining pool and wallet service Bixin, echoed that point, saying the last round of miners shutting down operations at the end of 2018 resulted in the increased availability of second-hand equipment.
“S9 is now like the AK-47 [assault rifle] in ASICs,” Xiong said. “It now has the best performance over cost ratio in the market.” Bixin is also planning to increase its own mining capacity in Sichuan during the summer but declined to disclose its planned scale ahead.
Summing up all the estimated supplies provided by major mining farms in the area, Zheng projects there will be a total of about 1.5 million slots available.
He explained that it’s a common practice for mining farms to sign agreements with power stations to purchase 80 percent of the plants’ capacity in advance. That means that whether or not a mining farm has enough miners to consume all the pledged amount, it has to pay for what it has agreed on, one way or another.
Because of that, Zheng said besides hosting machines for miners, his firm also plans to deploy around 20,000 ASICs to mine on its own behalf, with second-hand machines bought on the market.
He further estimated that the entire bitcoin network hash rate could even go up to 70 quintillion hashes per second (EH/s) in the summer, which is well above the network’s historical high of 61 EH/s, recorded in the summer of 2018.
In fact, over the last two months, bitcoin’s hash rate has already shown steady growth, from an average around 35 EH/s in early January to now around 42 EH/s, according to data from blockchain.info.
“We used to think the overall supply would be larger than the demand. But the total quantity of ASICs on the market, plus new machines produced by major manufacturers, can certainly fill in the total supply. The question now is how many miners will take this bet,” Zheng said.
What makes this year different from previous years, though, is a shift in market dynamics.
Yun Zhao, a co-founder of Hashage who has left the firm’s management to start a miner organization in Sichuan called Mining Sea, explained that the market used to be on the side of mining equipment makers as well as mining farms.
“In the bullish market, it was hard to buy mining equipment, it was hard to find available slots in mining farms, because the electricity cost wasn’t too big of an issue,” Zhao told CoinDesk.
That’s also the reason he started the organization in Sichuan in the first place this year, aiming to improve liquidity between mining farms’ supplies and demand from miners.
“In the bearish market, we’ve got to huddle together and find better ways to utilize our resources,” Zhao said.
Xiong of Bixin shared the same view. “In this round, the market’s dominance will shift to miners and whatever farms that can get the cheapest electricity cost. They are the ones that can really rock,” he said, adding:
“Mining equipment makers probably won’t have much sense of participation in this round [in terms of selling new machines] since people may prefer used ones. So, the market is no longer on their side now.”
Excess power supply
Further adding to the current level of interest is also an openness from local governments to let privately owned hydropower stations participate in a more market-driven electricity trade so that excess energy can be sold to private companies in energy-intensive industries.
Stepping back, privately owned hydropower plants in China can be divided into two categories: those that are integrated with the country’s State Grid and those that are not.
For those that are eligible for the integration, the State Grid would typically buy a certain agreed amount of electricity from them so their sources of income could be steady. But for those that are not, they need to compete for steady customers that consume generated energy.
The Sichuan provincial government issued a notice in August 2018 as a practical guide to “deepen the electricity reformation” in the region.
Although the notice did not mention any specific industry, it emphasized “enlarging the scope of customers that can participate in electricity trades” while “reducing administrative interference in the market.”
The end goal would be to better utilize the excess electricity generated in the area, which would otherwise be wasted. The notice also mentioned the government would continue the experiment of establishing industrial parks near plants that have significant excess power.
According to another notice issued by the Garze prefecture government, hydropower plants in the area generated 41.5 billion kWh of electricity just in 2017 with a total excess of 16.3 billion kWh that went to waste.
It’s still a bet
But even with this alluring opportunity, the risk still remains.
Both Zhao and Zheng said the main risk lies in the possibility of bitcoin’s price dropping below a threshold of $3,000, even with cheap electricity costs. According to the revenue index for mining machines provided by f2pool, the fourth largest mining pool by hash power, mining with an S9 at an average electricity cost of $0.05 per 1 kWh can still generate a marginal daily profit of $0.60 per machine.
“But if the price falls below that threshold of $3,000 during the summer, lots of miners may have to pull the plug again,” Zhao added.
Although it’s a common practice for miners to short bitcoin futures contracts to hedge potential losses, Zhao said a potential risk in that situation is there may not be enough counterparties to take the long positions.
He added another long-time issue in the industry is a lack of self-governance to protect miners from bad actors, which is an area where the Mining Sea organization aims to improve on by updating their members about any bad conduct from mining farms if found.
For instance, he said there were cases where mining farms secretly switched the network address of mining equipment they hosted for customers to that of their own at 2 a.m. in the morning just for two hours to mine for themselves.
Zheng said there were also mining farms that lured miners with the promise of cheap electricity rates but then jacked up the price after they set up machines.
“Those miners had no choices but to suck it up,” he added, referring to recent local reports that similar situations happened in China’s Qinghai province.
“This industry is always about making a bet after all. There are always risks from multiple aspects, especially from the markets side in this bearish time.”
Mining farm image courtesy of Hashage
Ripple price is following a declining path and it broke the $0.3100 support against the US dollar.The price remains at a risk of a sharp decline below $0.3000 and $0.2980 in the near term.There is a major bearish trend line formed with resistance near the $0.3040 level on the hourly chart of the XRP/USD pair (data source from Kraken).The pair remains in a downtrend and sellers remain in action below $0.3040 and $0.3080.Ripple price declined below key supports against the US Dollar and bitcoin. XRP/USD could decline sharply below $0.3000 and $0.2980 to test the $0.2850 support level.Ripple Price AnalysisIn the past few days, there was a steady decline in ripple price from the $0.3200 swing high against the US Dollar. The XRP/USD pair traded below the $0.3150 and $0.3100 support levels to enter a bearish zone. There was even a close below the $0.3080 support and the 100 hourly simple moving average. Recently, the price even broke the $0.3050 and $0.3040 support levels. Finally, it spiked below the $0.3000 support and a new monthly low was formed at $0.2972.Later, the price corrected higher and traded above the $0.3000 level. It surpassed the 23.6% Fib retracement level of the recent drop from the $0.3129 high to $0.2972 low. However, the previous support near the $0.3050 level acted as a strong resistance. Besides, the 50% Fib retracement level of the recent drop from the $0.3129 high to $0.2972 low acted as a resistance. More importantly, there is a major bearish trend line formed with resistance near the $0.3040 level on the hourly chart of the XRP/USD pair.The pair declined again and it is currently trading below the $0.3020 level. It seems like there is a risk of a sharp decline below the $0.3000 and $0.2970 levels. The next key support is near $0.2850, where buyers might appear. On the upside, the price may continue to face sellers near $0.3040 and $0.3050. To start a recovery, the price must break $0.3050 and then $0.3080 in the near term.Looking at the chart, ripple price is following a bearish structure from well above $0.3200. If sellers gain pace below the $0.3000 support, there could be a nasty drop towards $0.2850. The overall price action is suggesting more losses in bitcoin, Ethereum, XRP and other cryptocurrencies in the coming sessions.Technical IndicatorsHourly MACD – The MACD for XRP/USD is about to move into the bearish zone, suggesting more losses ahead.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently near the 40 level, with a minor bullish angle.Major Support Levels – $0.3000, $0.2975 and $0.2850.Major Resistance Levels – $0.3040, $0.3050 and $0.3080.
ETH price moved into a bearish zone and settled below the $128 and $127 supports against the US Dollar.The price traded towards the $122 level and it is currently consolidating losses.There is a crucial bearish trend line in place with resistance at $130 on the hourly chart of ETH/USD (data feed via Kraken).The pair could correct higher, but it is likely to find a strong selling interest near $127 and $128.Ethereum price started a major decline against the US Dollar and bitcoin. ETH/USD is following a downtrend and it could continue to move down towards the $120 and $118 levels.Ethereum Price AnalysisRecently, we saw a downside extension below the $130 support in ETH price against the US Dollar. The ETH/USD pair gained bearish momentum and broke the $126 and $125 support levels. It even traded below the $124 level and settled well below the 100 hourly simple moving average. A new monthly low was formed near $122 and the price is currently consolidating losses. It recovered above the $124 level and the 23.6% Fib retracement level of the recent drop from the $135 swing high to $122 swing low.However, the previous support at $127 is acting as a solid resistance. Above $127, the $128 and $129 levels are waiting to prevent gains. There is also a crucial bearish trend line in place with resistance at $130 on the hourly chart of ETH/USD. Below the trend line, the 50% Fib retracement level of the recent drop from the $135 swing high to $122 swing low is near $129. Finally, the 100 hourly simple moving average is positioned near the $131 level.Therefore, there are many resistances on the upside, starting with $127 and ending near $131. If the price corrects higher, it is likely to find a strong selling interest near $127 and $128. Once the current consolidation/correction pattern is complete, the price may resume its decline below $124. The next key support is positioned near the $120 level. If sellers remain in action, the price could even test the $118 level in the near term.Looking at the chart, ETH price is trading heavily in the bearish zone below the $131 resistance. There could be short-term corrective moves, but upsides remain capped below $130 and $131. On the downside, buyers are likely to take a stand near the $120 and $118 levels in the coming sessions.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is about to move back in the bearish zone.Hourly RSI – The RSI for ETH/USD is slowly recovering, but it is still well below the 50 and 45 levels.Major Support Level – $120Major Resistance Level – $130
Coinbase will push out several employees from Neutrino following online criticism over the crypto exchange’s acquisition of the blockchain analytics firm.
Coinbase’s CEO Brian Armstrong announced in a blog post on Monday that Coinbase and Neutrino have decided they will let go Neutrino’s employees who had ever worked for an IT startup called Hacking Team, whether or not they still have any current affiliation with the startup.
It’s currently unknown how many of Neutrino’s employees had worked for Hacking Team, except the Neutrino’s management including CEO Giancarlo Russo, CTO Alberto Ornaghi, and CRO Marco Valleri.
The announcement came after online criticism of Coinbase’s decision to buy Neutrino, which was reveled on Feb. 19.
Since then an online controversy has been raging on Twitter due to the fact that Neutrino’s top management had led projects for Hacking Team, a startup who aided governments known for human rights abuses.
Armstrong said in the post on Monday: “We had a gap in our diligence process. While we looked hard at the technology and security of the Neutrino product, we did not properly evaluate everything from the perspective of our mission and values as a crypto company.”
As a solution, he concluded:
“Those who previously worked at Hacking Team (despite the fact that they have no current affiliation with Hacking Team), will transition out of Coinbase. This was not an easy decision, but their prior work does present a conflict with our mission.”
Amstrong image via CoinDesk archive.
Tether announced today that it’s issuing USDT on the TRON blockchain. As Tether writes in its own blog post on the subject:
The TRC20-based USDT enables interoperability with TRON-based protocols and Decentralised Applications (dApps) whilst allowing users to transact and exchange fiat pegged currencies across the TRON Network.
TRON is only the third blockchain on which Tether has issued its stablecoin. Late last year, various actions by Tether Limited got people thinking that maybe the company was exiting the market altogether. For one thing, their actual redemption fees are huge post-Bitfinex exclusivity. For another, they were seen quietly arbitraging and retiring USDT from circulation.
Today we take the next step in our journey towards stablecoin mass adoption though the introduction of USDT on the @Tronfoundation blockchain.
Read more about how Tron has become the latest blockchain to deploy Tether here: https://t.co/UrVlDXmps6
— Tether (@Tether_to) March 4, 2019
Tether On The Rebound?
But the news of a TRON expansion dovetails with a rebounding market capitalization, which in the past 30 days spiked above 2.1 billion at one point. The market capitalization of Tether signifies both the trust in its stability and the current state of the market. Many traders stash funds in stablecoins when markets are uncertain, as they have been recently.
The news also happens at a time when Tether is posting a “positive peg,” wherein Tether at press time was trading for 1 cent over its $1 target. That means demand is outpacing supply on several exchanges. The exchanges doing the most volume on USDT today were BitMax, CoinBene, and EXX. Interestingly, the most active market today was Paxos Standard and USDT, with 10% of the total volume.
Are people exiting PAX and entering USDT? PAX has lost $5 million over the 7 day period, that much is for sure.
This may be looking at the issue too closely.
TRON Sales Up On News
For its part, TRON gained 3% against BTC in the 24-hour period. The base token of the highly popular blockchain has been in the 2-cent range for quite some time. Its all-time high was over 25 cents not long after its launch in 2017. While it has consistently been a top-10 crypto asset by market capitalization, TRON owes this fact to its large supply. The token has suffered as badly as any other throughout the crypto winter. Litecoin stands apart as a coin that seems to have gained during these times.
The decision to list Tether on TRON raises the question: why not EOS and NEO? As long as we’re making Tether available on blockchains besides the #1 and #2, there are plenty of communities that could use the stablecoin for a multitude of purposes. Further, Block.one founding partner Brock Pierce also co-founded Tether. Perhaps the decision speaks to EOS’s ejection of Pierce?
Stablecoins have introduced a new dynamic into crypto markets that requires a wait-and-see approach. Nearly 100 projects around the stablecoin idea have been started, but less than a dozen seem to have any hope of “success.” It’s a low-margin game for the stablecoin issuers. Introducing fiat liquidity into crypto markets instantly breaks down borders. In theory, a Bitcoin user in Iran can hold USD all day using the Omni version of USDT. The same goes for Ethereum, with some degree of lessened privacy.
The news tells us one thing: Tether is alive and well. Its position as the dominant stablecoin isn’t changing in the near-term, but the next big crypto bull run might shake things up as traders decide between the various options including TrueUSD, Paxos, USDC (notably the preference of Coinbase), and Tether.
Click here for TRON’s real-time price chart.
At the moment, the cryptocurrency market is primarily concerned about when Bitcoin might bottom, and not when Bitcoin price will return to its previous all-time high of $20,000. Market sentiment is currently so low, any positive movement in Bitcoin price is normally rejected by bears hoping to buy the number one crypto later at lower prices.
Ripple Work Environment Now List-Worthy
If anyone was still living under the illusion that working in blockchain or cryptocurrency meant sacrificing the quality of your work life, you might have finally been convinced otherwise. “Great Place to Work” named payment system Ripple as the 17th best place to work in Silicon Valley among small to medium-sized business. Shout out to Roblox at number 16. Now, I’m aware that Ripple is a controversial project and XRP is not technically a cryptocurrency in many people’s eyes, but this is an impressive achievement given how competitive the Bay area is. In a bid to lure the best talent and cater to highly-qualified millennials, firms in Silicon Valley will offer everything from a bus to pick you up from your house, to free lunches and all manner of games and fun activities to pursue. Ripple certainly has an eloquent CEO at the helm.
Clear Sense of Mission Defines XRP Project
So what is it precisely that employees enjoy about working at Ripple that warrants a place on this list? It appears that much like other digital currency projects, the mission of developing and fostering adoption is driving the company forward. In the words of a satisfied worker:
“I’ve never before been at a company where everyone has a clear sense of mission, and what the shared goal is. That is obvious from day one. I also love my co-workers, and they make me happy to come to work every day (along with the work itself).”
Ok, I assumed the adoption part. That quote couldn’t have been more generic if it wore a polo shirt. Dig a little deeper into the ranking, and it does start to look like the survey is a bit redundant. According to the report, 91 percent of employees are happy to work at Ripple. The company has 255 employees in the US, and 95 percent of them are proud to say they work at the company. 96 percent of them are happy with their time off.
With all these happy, satisfied people how is Ripple only ranked number 17? Well, to crack the top 10 Ripple would have needed a 95 percent happiness rating on more than 400 people.
The number one best place to work for a small or medium company in the Bay area, Asana, has a 99% happiness rating among roughly 240 employees. My point here is I’m skeptical of reviews where everyone self-reports that they are happy. The differences are too negligible to make rankings any more than deeply subjective or borderline random.
Ripple Attention is Fine, but Salute the Real Heroes
Ultimately, Ripple getting acclaim is probably good for cryptocurrency. There is still a widespread misconception about what it is. Because most people believe XRP and Bitcoin are blockchain bedfellows, then seeing it as a credible place to work has to be a good thing for the industry.
The only concern is that top talent might leave decentralized projects to work at places like Ripple; the search for a consistent paycheck or corporate benefits might prove too alluring. Let just hope enough gifted people don’t leave other essential projects neglected. It has been a big few weeks for XRP after finally getting listed on Coinbase Pro, and credit to them for making a decent work environment for their employees. I’d certainly rather work for Ripple than for JPM Coin.
Click here for XRP’s real-time price chart.
Bitcoin’s price once again dipped after it was unable to hold $3,800 as a level of support. This drop led many cryptocurrencies to plunge nearly 5% and has further confirmed that BTC does not have enough buying pressure to allow it to decisively push above $4,000.Now, Bitcoin has established a fresh support level at $3,700, which one analyst claims is an important price to hold above in order for further gains in the near-future to be possible.Bitcoin Drops to $3,700 Before Finding SupportAt the time of writing, Bitcoin is trading down over 2% at its current price of $3,760. Earlier today, BTC plunged to the low-$3,700 region before finding support and swiftly climbing back to its current price levels.Luke Martin, a popular cryptocurrency analyst on Twitter, spoke about Bitcoin’s recent price action in a tweet, noting that $3,700 is now an important support level to hold above in order for further gains to be in the cards.“While this third dump in the last 7 days into 3700 is slightly worrying, I still prefer to be long from down here until we start seeing closes below 3700. 4hr closes would give a hint the level is going to give. Daily close below would confirm it,” he explained.$BTC weekly thread updated.While this third dump in the last 7 days into 3700 is slightly worrying, I still prefer to be long from down here until we start seeing closes below 3700.4hr closes would give a hint the level is going to give. Daily close below would confirm it. pic.twitter.com/0kvntspKmk— Luke Martin (@VentureCoinist) March 4, 2019He later noted that Bitcoin has still been able to hold above the aforementioned support level, despite the relatively large amount of selling pressure on this “bloody Monday.”“$BTC still respecting support half way through Bloody Monday.”$BTC still respecting support half way through Bloody Monday pic.twitter.com/dmsRYUpCIS— Luke Martin (@VentureCoinist) March 4, 2019Because this latest drop was significantly smaller than recent plunges that have led BTC to shed as much as $400 off of its price, it is possible that this drop will be quickly reversed by bulls looking to send Bitcoin back above $3,800.Analyst: Traders Should Look Towards RSI For Insight into Where BTC is Heading NextAlthough price action certainly gives traders and analysts significant insight into the strength and trends of a specific asset, one popular trader is now claiming that an analysis of Bitcoin’s RSI can give more insight into where BTC is heading next.Wendy O, a popular cryptocurrency trader on Twitter, recently spoke about the importance of RSI, noting that she expects Bitcoin to continue trading sideways for the foreseeable future based on BTC’s monthly RSI.“1M $BTC Monthly RSI is still in a downtrend – this is important because RSI measures change of price movements. Instead of analyzing the candles this tells me until we break the channel we can expect to see further sideways movement on a larger scale.”1M $BTC
Monthly RSI is still in a downtrend – this is important because RSI measures change of price movements . Instead of analyzing the candles this tells me until we break the channel we can expect to see further sideways movement on a larger scale pic.twitter.com/bGemwftY62— Wendy O (@CryptoWendyO) March 3, 2019She further added that Bitcoin’s weekly RSI is currently surging, which has historically been followed by a price drop.“Stoch RSI is running mighty high on the weekly. Last time this happened we had a nasty fall incoming.”1W #BTC
Stoch RSI is running mighty high on the weekly. Last time this happened we had a nasty fall incoming pic.twitter.com/KwGyPrtcA5— Wendy O (@CryptoWendyO) March 3, 2019As the market’s price action continues to unfold in the week ahead, traders and analysts alike will likely gain greater insight into which direction Bitcoin is heading in the near future.Featured image from Shutterstock.