The total crypto market cap is up more than $15.0B in the past three days.Bitcoin price rallied more than 5% and traded above the $5,800 resistance level.Litecoin (LTC) price is up around 6% and it broke the key $75 and $78 resistances.Bitcoin cash price rallied 10% and broke the main $295 and $300 resistances.Tron (TRX) price finally broke the $0.0242 and $0.0245 resistance levels.Cardano (ADA) price is back above $0.0700 and it may climb further towards the $0.0750 level.The crypto market cap rallied, with strong gains in bitcoin (BTC), litecoin (LTC), bitcoin cash and EOS. Cardano (ADA), Ethereum (ETH), ripple, TRX, XLM and BNB are gaining traction.Bitcoin Cash Price AnalysisBitcoin cash price started a strong upward move and broke the $280, $290 and $295 resistance level against the US Dollar. BCH/USD broke the main $300 resistance level and it is currently trading with a strong bullish bias.If the bulls remain in action, there are chances of more gains above the $310 and $315 resistance levels. If there is a downside correction, the price is likely to find bids near the $300 and $295 supports.Cardano (ADA), Litecoin (LTC) and Tron (TRX) Price AnalysisLitecoin price also gained momentum and broke the key $75 and $78 resistance levels. LTC is up more than 6% and it recently climbed above the $80 level. If there are more gains, the next stop for the bulls could be near the $85 level in the near term.Tron price finally managed to gain strength above the $0.0242 resistance and tested the $0.0245 level. TRX price is trading with a positive tone and it seems like there could be an upside extension above the $0.0250 level in the near term.Cardano price is slowly gaining traction and recently broke the $0.0690 and $0.0700 resistance levels. ADA price is likely to climb further higher if there is a clear break above the $0.0710 level in the near term. On the downside, the previous resistance at $0.0700 may act as a support.Looking at the total cryptocurrency market cap 4-hours chart, there was a steady rise above the $170.0B resistance and recently there was a break above the key $175.0B and $180.0B resistance levels. The market cap added more than 15.0B in the past three days and it tested the $186.0B level. On the upside, the next key resistances are near the $188.0B and $190.0B levels. If there is a downside correction, the main supports are at $180.0B and $178.0B. Overall, dips remain supported and there could be more gains in bitcoin, Ethereum, EOS, litecoin, ripple, ADA, BCH, TRX, ICX, XLM and other altcoins in the near term.
Archives for May 3, 2019
By CCN: The Nasdaq has shown a growing affinity for bitcoin. That relationship has just gone to the next level with knowledge that CNBC Africa’s Crypto Trader will begin broadcasting from the Nasdaq studio. Ran NeuNer, the host of the show, tweeted that the next season will launch from Times Square on May 9. The Nasdaq studio is in the middle of all the action and could be visible to the tons of people passing by on their way to and from work, not to mention tourists. It thrusts crypto into the heart of Manhattan at a pivotal time for the industry and is sure to turn some heads.
Ran and his show will now have a front-row seat to this evolution as it plays out on global media. With the bitcoin price now poised above $5,700, crypto is about to get its time in the sun.
The timing of the move is surely no accident. Bitcoin bulls are back and institutional investors are now beginning to dip their toes into the crypto waters. Fidelity published a survey revealing that institutional investors’ crypto allocations are poised to rise over the next half-decade, which could open the floodgates to mainstream adoption.
I have been working on moving CNBC Cryptotrader to NEW YORK CITY for over a year..
This Thursday we launch our new season from the CNBC STUDIO at the NASDAQ MARKET SITE in NEW YORK CITY!!! pic.twitter.com/zCdMvxwkhj
— Ran NeuNer (@cryptomanran) May 3, 2019
Fidelity spoke to hundreds of hedge funds, pension funds, family offices, and more. They found that more than 20% of institutional investors already have “some exposure to digital assets,” allocations that were made since 2016. Nearly half of them “view digital assets as having a place in their investment portfolios.”
Bitcoin Is Becoming Famous
The timing of CNBC’s Crypto Trader arriving in New York also coincides with the recent bitcoin commercial released by Grayscale Investments. The campaign, which is entitled “Drop Gold,” is set on the streets of Manhattan. The ad mocks gold as an onerous investment, instead touting bitcoin as the future for features like security, borderless, and its utility.
— Brian Kelly (@BKBrianKelly) May 1, 2019
Anecdotal evidence also suggests that institutional investments into bitcoin are on the rise. Bakkt, the regulated bitcoin futures exchange owned by NYSE-parent company ICE, will be launching soon. The exchange is headquartered in Atlanta and is expected to be a magnet for institutional capital.
Meanwhile, the Nasdaq is no stranger to crypto. They recently launched a new XRP Liquid Index. Also, a trader on Twitter suggested that the Nasdaq is already supporting bitcoin trading via TD Ameritrade.
BREAKING: BTC is now being traded on the Nasdaq! I bought one BTC through my TDAmeritrade account! According to the chart it started trading April 10, 2019!! Other digital assets are soon to follow!! 🚀🚀🚀 pic.twitter.com/1VgE1Whoa4
— Cryptopolis (@cryptopolis_x) April 22, 2019
In the heart of Manhattan, Ran NeuNer and Crypto Trader will seemingly be sharing a studio with other CNBC shows. This means that traders and big investors who are there to discuss the stock market could also double as guests for Ran’s show. It creates an opportunity for both markets to collaborate and share information and guests, which is something that will help catapult bitcoin into the limelight.
The crypto market, and more specifically Bitcoin, is at an important inflection point in its existence. Having become a household nearly overnight thanks to the late-2017 media blitz that fueled the cryptocurrency’s meteoric ascent to its all-time high price of $20,000, and the resulting bubble pop that led to the longest bear market on record, Bitcoin needs to once again prove itself in the eyes of investors that its here to stay.As Bitcoin nears closer to the powerful support turned resistance at $6,000, a clean break of the former springboard and close above resistance could show investors and traders that it’s off to the races for a new bull market. Two separate charts from other financial markets appear to look eerily similar to the path Bitcoin took throughout the bear market until this important turning point, and could hint at what might happen next in Bitcoin price charts.Turkish New Lira Chart Provides The Bullish Take on Bitcoin PriceIn a recent tweet by prominent crypto trader CryptoWolf, the analyst shared a chart with shockingly similar peaks and troughs matching Bitcoin’s 2018-2019 bear markets, and could serve as a bullish prediction for Bitcoin’s path from here.At that time this was pure hopium. pic.twitter.com/ywU2ggBIn5— CryptoWolf (@IamCryptoWolf) May 3, 2019The forex market chart shows the price action of the USD/TRY trading pair. As can be clearly seen, the chart showing the United States dollar paired against the Turkish New Lira very closely resembles each swing high and low of the Bitcoin bear market.There’s even a V-shaped low following a blow-off top, that developed into what eventually became a failed Adam and Eve bottom. Later, an inverse head-and-shoulders much like the late June, early July bottom in Bitcoin, played out, but failed to reinvigorate bulls enough to end the bearish decline.After that, support broke, painting a new low that quickly rebounded, revisiting previous highs within a matter of a couple months once candles closed back above the support turned resistance.Related Reading | Bitcoin Trader: Big Money is Net Long, Re-Accumulation Expected at $10K Bitcoin is currently at that same support turned resistance that once broken, resulting in a trip back to the peak of the blow-off top. Should the same occur in Bitcoin, the price of the crypto asset could hit $20,000 by July if the chart plays out the same. But similar to the analyst saying that “at the time this was pure hopium,” any bulls thinking $20K is around the corner is relying solely on that “hopium.”Silver Shows the Bearish Version for BTCOf course, there are similarities to be found in many charts, as markets tend to cycle similarly. In the price chart for silver, which “posted 1000%+ parabolic gains,” then crashed, shows a similar trajectory as Bitcoin.#Bitcoin vs $Silver$Silver posted 1000%+ parabolic gains/crashed$BTC too posted parabolic gains/drop$Silver found support at 200 Month MA$BTC found support at 200 Week MA$Silver found resistance at 50 Month MA$BTC struggling against 50 Week MA(Comparison for Fun only) pic.twitter.com/aV5Xo9wlAn— Trading Room (@tradingroomapp) April 30, 2019Following the break of the parabolic advance, which chartists like Peter Brandt claim can cause the price of an asset to decline over 80% on average, silver found support at the 200-month moving average. Bitcoin on the other hand, found support on the 200-week moving average.Silver then rallied from the support, eventually running head first into the 50-month moving average. Bitcoin is currently flirting with the 50-week moving average.Related Reading | Tech Stocks, Gold, Oil, and S&P 500: Bitcoin ROI Beats Them AllSilver was unable to break through resistance caused by the 50-month MA, causing the asset to fall once again, this time breaking the 200-month moving average that had previously played support.If Bitcoin were to fall from here, the 200-week moving average currently rests at roughly $3,450 and a break below it would likely lead to panic and new lows for the leading cryptocurrency by market cap.As noted, Bitcoin is at an important point in its lifecycle and what happens next could impact its longevity as a financial technology.Featured image from Shutterstock
The crypto markets have continued to extend their upwards momentum as Bitcoin surged to fresh year-to-date highs, leading most major altcoins to rip upwards. This positive price action marks a significant rise from BTC’s recent lows, which were set after news broke regarding the widely publicized Tether-Bitfinex imbroglio.One prominent technical analyst has now set $6,400 as the price at which Bitcoin must break above in order for the bull run to officially commence, and the crypto’s growing technical strength may be just enough to push its price above this level.Bitcoin (BTC) Sets Fresh Year-To-Date High At the time of writing, Bitcoin is trading up nearly 6% at its current price of $5,815, up from its 24-hour lows of roughly $5,500 that were set late yesterday.Today’s surge has put Bitcoin’s price at a fresh year-to-date high, with the previous high being set in the $5,600 region just prior to the drop that came about as a result of fear surrounding the New York Attorney General’s accusation that Tether and Bitfinex have defrauded investors.Although many investors at the time believed that this revelation would put Bitcoin’s position within the $5,000 region in jeopardy, the markets shrugged the news off and have advanced higher ever since.Peter Brandt, an extremely popular analyst who covers a wide variety of assets and markets, noted in a recent tweet that Bitcoin is currently forming some technical formations that are quite similar to those formed in previous years prior to other bull markets, which may mean that further gains are right around the corner.“The last time Factor’s benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800,” he explained in a recent tweet.The last time Factor’s benchmark weekly MA was in the current profile of turning from down to up was in Nov 2015 just as $BTC began its move from $340 to $19,800. pic.twitter.com/uFJSkV9NwM— Peter Brandt (@PeterLBrandt) May 2, 2019BTC Close to Breaking Above Price Level that Would Mark the Start of the Bull Market In addition to contributing to growing technical strength, the recent Bitcoin surge has also brought the cryptocurrency very close to a price level at which the next bull run will officially commence, according to one analyst.Alex Krüger, a popular economist who focuses primarily on cryptocurrencies, discussed this price level in a recent tweet, noting that a break above $6,400 would mark the beginning of a fresh bull market.“$BTC now at $5750, the 2018 low prior to the November crash. The 2018 bear trend ended once above $4200. Above $6400, 2018’s most traded price, it’s a bull market,” he explained.$BTC now at $5750, the 2018 low prior to the November crash.– The 2018 bear trend ended once above $4200.– Above $6400, 2018’s most traded price, it’s a bull market. pic.twitter.com/rIQI8RIPgs— Alex Krüger (@krugermacro) May 3, 2019It remains unclear as to whether or not the crypto market’s current upwards momentum will be enough to break past the $6,000 region, where some resistance likely exists, and to surge past $6,400.Regardless of this, it is becoming clearer that the bear market has truly come to an end, and it is only a matter of time before the markets reach a point at which their next parabolic ascent begins.Featured image from Shutterstock.
By CCN: A man from the English channel island of Jersey just wanted to buy bitcoin. In actuality, the unfortunate victim gave away an eye-popping $1.6 million in life savings to crypto scammers. The Jersey Evening Post reports the thieves promised the victim 1,500% returns on his investments.
According to the Post, a spokesperson for the Jersey Financial Services Commission said:
“The victim was engaged for over an 18-month period and they were able to build trust prior to getting the victim to send the greater amounts.”
Detectives and other employees at the U.K. National Crime Agency say it is highly unlikely the islander’s money will ever be recovered from their investigation.
$1.6 Million Bitcoin Scam Victim Was an ‘Experienced Investor in Cryptocurrencies’
Jersey Fraud Prevention Forum issued a report about the bitcoin scam. They urged islanders to stay vigilant. The forum has also been warning that islanders have been targeted by email scammers who say they’ve taken control of the user’s webcam. The scammers demand payment or threaten to publish embarrassing videos of the victims.
One thing that stood out about the Jersey Evening Post’s report was its claim that the victim was “an experienced investor in cryptocurrencies.” For all that “experience,” he was swindled out of $1.6 million in an online scam.
This seems to stretch credulity. An experienced investor would likely recognize the obvious signs of a scam. On the other hand, experienced con artists can be very persuasive and convincing. Just look at Bernie Madoff, whose Ponzi scheme swindled billions of dollars from wealthy celebrities.
The Jersey Financial Services Commission alleges the bitcoin investment scammers won the Jersey man’s trust gradually over time. They convinced him to invest greater and greater amounts. They say the con artists used the names of reputable U.K. companies to bolster their reputation.
Crypto Scams Continue to Abound
Earlier this week, police saved two men from a scam involving crypto at a mall in Singapore. These scammers allegedly claim to be Chinese government agents. They tell victims they are under investigation for an international crime. Then they order them to transfer bitcoin to the scammers’ wallets.
Many scammers take cash and tell victims they’ll use it to invest in bitcoin. Others target their victims’ cryptocurrency directly. That’s because there’s a lot of money in cryptocurrency. Scammers go where the money is. The crypto industry is also a new space, mostly devoid of the brand capital that mainstream firms have built over decades.
That’s trust that has been well rewarded in so many cases. Misplaced trust, however – out of laziness, ignorance, or carelessness – leaves investors exposed to loss.
A cursory review of cryptocurrency groups and pages on social media and online forums readily evidences the number of scams posted online every day in the bitcoin and crypto spheres. These posts tend to resemble the scams that probably dominate your email spam folder. But whether the payment medium is Western Union or bitcoin, there’s an underlying red flag – the scammers want you to send them money.
Even a child knows from old nursery tales that if you wander into the woods and see a giant house made entirely out of candy, you should pause to consider that it might be too good to be true.
After an April that renewed the hope of many for Bitcoin’s future, the number one digital asset has started May strong too. The entire market capitalisation of Bitcoin alone today surpassed the psychological milestone of $100 billion for the first time since last November.The increased buying has been cause for celebration amongst much of the Bitcoin community, and calls that the bottom of the bear market is well and truly in are growing louder. However, one divisive YouTuber and former Wall Street trader still holds the position that lower prices could be on the horizon.The Bitcoin Bear: An Increasingly Endangered SpeciesYouTube technical analyst and former Wall Street trader Tone Vays has just released a new segment of his not-quite-daily Trading Bitcoin YouTube show. The analyst is well-known in the Bitcoin community for his refusal to get wrapped up in news events and developments in the crypto space when discussing price. He has been consistently calling for a lower bottom than the December price of around $3,200, commonly held to be the bottom of the last/current bear market.Vays goes strictly by the charts and in his latest episode, broadcast from a Mexican airport, he discusses the recent Bitcoin price surge to above $5,800. From analysis of monthly, weekly, daily, 12-hour, and 4-hour charts, the analyst reiterated the conclusion made in his previous video that the bottom is only about 40 percent likely to be in. He did, however, admit that the likelihood of the price not dropping below $3,200 seems to increase daily too.Today, he stated:“I have not seen anything yet that tells me that the low is in… I will wait for the perfect trade.”From closer analysis of the charts, Vays speculates that the price is likely to go up from here but not by much. He states that Bitcoin price is likely to bounce off resistance in the $6,000 to $6,200 range. It will then likely head back down to around $4,000 or perhaps lower. Vays does remind viewers that reevaluations must be constantly made in order to trade successfully and that a crucial time to pay attention will be as the price gets close to $6,000.You’re Not Alone, Tone!Vays’s mid-term pessimism continues to stand at odds with most of the Bitcoin community. Tweets expressing immense bullishness have returned to CryptoTwitter in recent weeks.I will give you some buzzwords now, which should make you bullish. Inhale the hopium, exhale slowly.– Bitcoin
– Halving 2020
– Digital Gold
– Store of value
– Bakkt (lol)
– 1 BTC = $1M by EOY— ₿lackbeard (@crypto_blkbeard) May 3, 2019Major bullish.Bitcoin is breaking the 52 (yearly) moving average + parabolic moveTarget 8700#ltc #litecoin #bitcoin #btc @MustStopMurad @CryptoCrewU @TheCryptoDog @davthewave @filbfilb @APompliano @PeterLBrandtThanks to peter and Murad for spotting it today pic.twitter.com/0XXE2d6XDQ— Master ⚡️ (@xtdisnkfe) May 3, 2019A recent report by crypto investment analysis firm Delphi Digital, also provides evidence to suggest that the market bottomed in December 2018. The company bases its analysis on the number of wallets that appear to be holding Bitcoin long-term returning to their 2015 bottom levels, indicating that those that were prepared to sell have now done so.However, Vays is not quite alone in his belief that more blood needs be shed prior to the market resuming a consistent upwards trend.Lucid Investments’s Tyler Jenks firmly believes that we will see a $1,000 Bitcoin before a $10,000 one. Although he hasn’t posted about price since the very latest upswing, the veteran trader believes that the Bitcoin price must return down to the trend line it was following prior to the mania of 2017. He recently Tweeted:OK. I have not changed my mind that the final bottom for Bitcoin will be $1,000 or lower with almost certainty(99%). I only have 80% confidence that $3180 was THE bottom (the question asked) because we could hit a series of lower lows that than run up before heading lower.— Tyler Jenks (@LucidInvestment) April 22, 2019Similarly, Vinny Lingham, the South African crypto entrepreneur and Civic (CVC) CEO, believes that we are likely to see more downside. Like Tone, he thinks the $6,200 area will provide too great resistance to overcome. He also muses on the necessity for the crypto market to decouple from Bitcoin before real bullish momentum can begin again. He does believe of Bitcoin blows past $6,200, we could be off to the races, however.Like I’ve been saying…Winter isn’t over until we clear $6200… https://t.co/LqXT7P0xuE— Vinny Lingham (@VinnyLingham) April 30, 2019 Related Reading: Is The Bottom In? Bitcoin Price (BTC) Has Nearly Doubled Since Bear Market LowFeatured Image from Shutterstock.
By CCN: It appears safety standards for criminals on the dark web are shrinking quickly. Following a series of raids in both Germany and the United States, American and European officials have succeeded in taking down what they call one of the world’s “largest online criminal trafficking operations.” The problem is it took authorities two years to take down the bad guys, paving the way for millions in crypto funds to be stolen in the interim.
Three German citizens – who remain unnamed at press time – have been charged in both their home country and the United States with operating what’s known as the “Wall Street Market,” a dark net platform that allegedly hosted approximately 5,400 sellers of illegal drugs including cocaine and heroin. The men are also being charged with forging illegal documents for users, such as driver’s licenses and identity papers.
Crypto Drug Traffickers Are Taken Down
Ryan White, a prosecutor with the U.S. Attorney’s Office in Los Angeles, told MSN:
“The charges filed in Germany and the United States will significantly disrupt the illegal sale of drugs on the darknet. We believe that the Wall Street Market recently became the world’s largest darknet marketplace for contraband including narcotics, hacking tools, illegal services and stolen financial data.”
Nearly all the transactions occurred with cryptocurrencies, primarily bitcoin and monero, a digital asset known for its quasi-anonymous properties. Both bitcoin and monero wallets were seized by the FBI and other legal officials during the raids.
Frankfort prosecutor Georg Ungefuk says that crypto-based transactions can be very difficult to trace, which is what allowed the market to thrive for so long. Overall, roughly two years were spent investigating the market and its operators before any serious action was taken.
The criminals made millions in profit thanks to these cryptocurrencies, taking anywhere between 2%-6% for every finalized sale.
A weighing fear amongst regulators is how common cryptocurrencies are allegedly used for dark web transactions. Bitcoin and other digital assets have indeed been used to purchase contraband on illegal websites. Ungefuk’s words regarding the potential difficulties of tracing bitcoin and other crypto transactions, however, suggest that regulators’ capabilities still leave a lot to be desired.
Bitcoin was once a commonly used cryptocurrency for dark web purchases. This case is no exception. The idea that it required two years for lawmakers to crack down on the activity, however, opens the floor to a lot of questions. For example, why did it take so long to make a move when bitcoin has proven to be one of the crypto industry’s more traceable assets?
Hey Crooks, Your Bitcoins Are Showing
Bitcoin is not anonymous, and every transaction is allegedly recorded via blockchain technology. This is something that has ultimately led many dark web users and cybercriminals to step away from bitcoin, and the currency no longer boasts the high usage it once did in illegal marketplaces.
Bitcoin may have initially promised its users anonymous transactions in the past, but its blockchain is publicly available, which means that information regarding transactions is there for anyone to see. Sarah Meiklejohn – a cryptography expert at University College London – is cited in reports as saying:
“It’s pretty well-established at this point that bitcoin is not anonymous, and it is traceable. If you are buying drugs, using bitcoin is not the best bet.”
So why two years? Either the officials were simply taking their time in putting a case together or perhaps regulators are still not as savvy as they claim to be when it comes to the blockchain.
After a relatively long period of choppy trading within the lower-$5,000 region, Bitcoin (BTC) has finally incurred another influx of buying pressure that has allowed it to surge higher, with the key resistance level of $6,000 looming just over the horizon.Now, one prominent analyst who has called previous Bitcoin crashes believes that the cryptocurrency is currently in the midst of a long-term recovery pattern that will ultimately allow BTC to surge significantly higher throughout 2019.Bitcoin Surges to $5,800: Is the Bear Market Over?The recent series of price surges that have allowed Bitcoin to surge from its late-2018 lows of roughly $3,200 to its freshly established year-to-date highs at its current price of $5,800, may be the final nails in the coffin that have brought about an end to the persistent bear market.Rob Sluymer, a technical strategist at Fundstrat, has built a track record of accuracy when it comes to the crypto markets, as he has called previous drops with precision, including when Bitcoin slid from the $6,000 region to the lower-$3,000 region in late-2018, when he explained that the crypto had “significant technical damage” just weeks prior to the major drop.Now, in a recent note, Sluymer explained that he believes Bitcoin is currently in the early-stage of a long-term recovery that will continue on throughout the year.“Use pending pullbacks to continue accumulating Bitcoin in the second quarter in anticipation of a second-half rally through ~6,000 resistance,” Sluymer explained, further adding that he sees BTC’s recent price action as “the early stage of a longer-term recovery developing.”Furthermore, he also noted that this does not mean a drop back into the $4,000 region is out of the cards, but he does advocate for using any additional drops to accumulate larger positions.“While it’s premature to conclude Bitcoin will not retest support near $4,300, we would encourage traders and investors to remain focused on the bullish longer-term technical profile developing… Bottom line: use recent weakness to accumulate,” he said.Bullish News May Fuel Further Price GainsThe crypto markets have been witnessing an influx of bullish news that has drastically shifted sentiment for the better and may be fanning the flames that are driving these recent price gains.Earlier today, news broke that Facebook is in the process of building its own cryptocurrency-based payments system, a development that had long been anticipated by those in tune with the crypto industry.According to the Wall Street Journal report, the social media giant has been recruiting a number of financial firms and digital merchants in an effort to build a new system that could undermine current payment methods – which mainly consists of credit cards – and allow the company to increase their revenue by reducing the processing fees associated with other forms of payment.This news is emblematic of the growing corporate adoption that cryptocurrencies, and Bitcoin in particular, have been facing over the past year – despite the dreary price action.As Bitcoin continues to climb higher and more companies foray into the nascent markets, it’s beginning to look more likely that 2019 will prove to be another great year for the crypto industry as a whole.Featured image from Shutterstock.
By CCN: The bitcoin price surged as much as 7.60-percent on Friday to establish a new 2019 peak at $5,796.93. The uptrend pushed bitcoin’s year-to-date rally to an impressive 54.08-percent. At the same time, it brought the asset’s total recovery to an astounding 82-percent and set the cryptocurrency well on its way to a fresh record high.
Here are three factors that indicate the bitcoin price has not only found a bottom but is also well on its way to smashing through the $20,000 peak it set in late 2017.
Reason 1: Moving Averages Mimic Historical Pattern from 2015
Yesterday, Factor Trading author Peter Brandt suggested the bitcoin price could hit $19,800 in the future.
He backed his prediction using a weekly moving average indicator, noting that it was now trending below the bitcoin spot price.
The last time such a move took place was in November 2015 and preceded bitcoin’s triumphant march from $340 in 2015 to a whopping $19,800 in 2017.
— Peter Brandt (@PeterLBrandt) May 2, 2019
Robert Sluymer, a technical strategist at Wall Street strategy firm Fundstrat, also believes that bitcoin is pounding into a bull market.
The financial expert said the asset could initially go through a pullback towards its 200-weekly moving average following its most recent push toward $6,000.
But after that, it could enter a mammoth accumulation phase which, as supported by Fundstrat co-founder Thomas Lee, could push the price toward $20,000.
The latest jump also closed the bitcoin price above its 50-weekly moving average, as shown via the blue curve in the chart above.
The 50-WMA historically signaled a strong bullish bias whenever the price was trending above it. Bitcoin crashed below the 50-WMA in May 2018 during a wild downside market action, after which the price careened as low as $3,100.
With bitcoin now above the 50-weekly MA, the probability of bull run is high.
Reason 2: Relative Strength Index Rages Bullish
Recently, bitcoin’s weekly Relative Strength Indicator jumped above 53.65, its highest level since October 2015.
The level, as indicated via a red horizontal line in the chart above, so far served as a yardstick to measure a bull or a bear trend.
When it jumped above 53.65, the buying sentiment in the bitcoin market improved. And when the RSI went below that mark, as it did during the January 2018, it triggered sell pressure.
Reason 3: The Bitcoin Price Formed a ‘Golden Cross’
A Golden Cross is achieved when an asset’s short-term moving average jumps above its long-term moving average.
The bitcoin price witnessed one of these formations back in October 2015 when it was trading near $300. Later, the asset underwent one of its longest bullish periods, which eventually brought the price close to $20,000. It once again formed a Golden Cross in April 2019, signaling a potential long-term upside scenario.
All three of these factors bolster the argument that the bitcoin price will retest the $20,000 mark, perhaps even sooner than many bulls expect. For now, bitcoin is trading at $5,700.
According to a report by the World Gold Council, central banks have been buying more gold this first quarter than they have in the previous six years. The efforts to diversify away from the US dollar are being led by China and Russia.With a clear global appetite for store-of-value-type assets that are not connected to the dollar, the question remains, when will it emerge that banks are buying Bitcoin?When Will Central Banks Stockpile Digital Gold, aka Bitcoin?The World Gold Council estimates that gold held in reserves rose to 145.5 tons during the first quarter of 2019. This represents an impressive 68 percent increase from the figure reported for the previous year.In the report, the council states that Russia continues to be the largest buyer of gold. The nation is known to be reducing its dependence on the US dollar by diversifying into other assets.Bloomberg reports the World Gold Council’s head of market intelligence, Alistair Hewitt, to have stated:“We’ve seen a continuation of the strong demand from central banks… We’re expecting another good year for central bank purchases, although I’ll be pleasantly surprised if they are to match the level seen in 2018.”Along with China and Russia, the nations stepping up their gold hoarding include Kazakhstan, Turkey, Ecuador, Qatar, and Colombia. The report notes that a common theme amongst these nations is the fact that they all want to reduce their dependence on the US dollar.Clearly, there is great hunger around the world for an asset that can be used effectively as a hedge against the dollar. This begs the immediate question: When will it emerge that central banks have been hoarding Bitcoin.RT’s Max Keiser highlighted this via Twitter earlier today:Central Banks will dive into #Bitcoin in size once Gold gets near impossible to source after it crosses $10,000. https://t.co/ZnhPjg5vyE— Max Keiser, tweet poet. (@maxkeiser) May 3, 2019He speculates that the scarcity of gold will eventually force banks to explore alternate options such as Bitcoin to hedge themselves against the dollar.Naturally, it seems unlikely that a nation with such designs on crypto assets would openly announce that they are stockpiling Bitcoin. If it emerges that a country has been buying the asset, a global buying frenzy, led by central banks would likely drive the Bitcoin price to unthinkable levels extremely quickly. If a nation is trying to get ahead by secretly investing, this is the last thing that it would want.There has already been speculation that Russia is toying with the idea of stockpiling Bitcoin. In January this year, a Russian professor with links to the Kremlin said Bitcoin is the only way of bypassing US and NATO sanctions. He stated that Russian elites were prepared to buy into Bitcoin if the situation demanded it. However, there is little to suggest that there is any truth to these statements yet.That said, North Korea has been linked with Bitcoin and other crypto use to evade economic sanctions placed on them by western nations. The rogue state is believed to be operating a team of hackers that is responsible for various cyber crime around the world that rely on crypto in some shape or form.Although neatly illustrating some of Bitcoin’s potential utility for nation states, North Korea’s experiments in alternate currencies hardly serves as a driver for higher prices in the way that the world learning that Russia or China was hoarding the crypto asset in favour of US dollars would. With hunger growing for non-correlated assets, it seems a matter of when rather than if this will happen too. Related Reading: The Case for Bitcoin as a Store-of-Value, Can it Really Rival Gold Going Forward?Featured Image from Shutterstock.