During strong uptrends, every correction is aggressively purchased as the sentiment is positive and traders expect higher levels in the future. Therefore, corrections during a bull phase are shallow and the trend reasserts itself quickly. However, when the trend changes from up to down, traders wait to sell on rallies because they believe lower levels are likely. In a bearish market, support levels are easily violated and the asset continues to slide. Generally, a downtrend that is followed after a roaring bull market does not end before a capitulation phase where most bulls have given up on the hope for …
After Bitcoin’s (BTC) capitulation on May 19 and the pullback on May 20, the next big question on everyone's mind is whether the correction is over or will the downtrend resume. Let’s study the supply and demand picture to gain more insight. Chainalysis chief economist Philip Gradwell pointed out that whales who had purchased more than 1,000 Bitcoin after 2017 added 34,000 Bitcoin to their holdings on May 18 and 19. This suggests the whales bought during the crypto meltdown. Additional on-chain data also suggests that the huge spike in over-the-counter Bitcoin outflow is a signal of accumulation by institutions …
Bitcoin’s (BTC) massive bloodbath on May 19 resulted in panic selling across the board. Several major altcoins nosedived between 25% to 50% during the day. The extent of the fall shows that many large traders may have dumped their positions and leverage traders may have been roasted. In a report to its clients on Tuesday, JPMorgan Chase analysts pointed out that institutional investors were abandoning Bitcoin in favor of gold. Considering the volatility ratio of Bitcoin to gold, JP Morgan believes Bitcoin’s current fair value is $35,000. The massive fall today is likely to scare several institutional investors and delay …
Cardano has rewarded its investors with significant gains this year, with a growing number of holders joining the coveted millionaires’ club following the latest ADA price surge. Since the start of the year, the number of millionaire investors in ADA has increased more than 13-fold to 6,710 as of May 17, according to United Kingdom-based news agency Finbold. Using data from Coin Metrics, the agency determined that there were just 504 ADA addresses worth at least $1 million on Jan. 1. The number of active ADA addresses also grew by 417.81% between Jan. 1 and Apr. 28. ADA’s value has …
Decentralized finance on the Cardano blockchain is drawing closer to becoming a reality, with a token migration bridge soon to enter the testing phase. According to Francisco Landino, project manager at Input Output Hong Kong, or IOHK — the research and development arm responsible for Cardano — the platform’s ERC-20 migration tool is nearing testnet deployment. In a blog post published on Monday, Landino said that the ERC-20 converter tool will allow the migration of Ethereum-based tokens to the Cardano chain. The planned ERC-20 converter bridge will follow Cardano’s highly anticipated Alonzo hard fork, which is touted to bring smart …
Bitcoin (BTC) plummeted to an intraday low near $42,000 today, dropping 35% from its all-time high at $64,849.27. Over the weekend the selling intensified as news that Tesla may have sold its Bitcoin holdings made waves, and even after this was proven to be untrue, Bitcoin’s market dominance had still been pulled down to a three-year low below 40%. While this decline in Bitcoin may have scared new investors, stock-to-flow creator PlanB said the performance of the current bull phase is still better than the 2017 bull run. PlanB also warned investors to expect several 30% dips during Bitcoin’s climb …
Cardano's ADA token neared $2.40 on May 15 as a select few altcoins bucked the bearish mood to steal the spotlight from a weak Bitcoin (BTC). ADA in price discovery as $2.50 nears Data from Cointelegraph Markets Pro and TradingView showed ADA/USD climbing through the weekend to hit a record $2.38. Traders had suspected that the long-awaited $2 would come into play in the short term, with Cardano bulls taking down resistance in one fell swoop overnight on Friday. With $2 out of the way, price discovery mode was activated, which delivered the new all-time highs before a consolidation period …
The impressive 816% gain of Cardano's ADA coin in 2021 catapulted the smart contract platform's market capitalization to $61 billion. To fully grasp how far this third-generation protocol has gone, the absolute leader, Ether (ETH), held the same valuation just six months ago. As AD's price evolves, so do its derivatives markets, and the nearly $1 billion in futures open interest poses both an opportunity and a threat for the price. Cautious investors will now question whether the $200 billion in potential liquidations are around the corner, drawing similarities to the 23% crash that occurred on April 17. DeFi is …
The Crypto Fear and Greed Index has dipped to levels not seen since April 2020, indicating that traders are nervous about Tesla backtracking on accepting Bitcoin (BTC) payments, Bitcoin's multi-week technical weakness and U.S. regulator's supposed investigation into the business operations of Binance exchange. This nervousness also led to a massive inflow of 30,000 Bitcoin to the exchanges, the highest number since the March 2020 crash. This suggests some traders are booking profits on their long positions. CryptoQuant CEO Ki Young Ju said that whales have continued to send more coins to exchanges than usual, implying that near-term bearishness may …
Tesla CEO Elon Musk tweeted on May 13 that the company will stop accepting Bitcoin (BTC) payments for its vehicle purchases, citing “rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal.” Shortly after the announcement, Bitcoin price dropped by 17% to hit a new local low at $46,000. While Musk’s decision is a short-term blow to the sentiment of the market, it is unlikely to change the course of the crypto markets altogether because the institutional demand for cryptocurrencies remains high. Proof of this came yesterday as Cowen Inc., a 103-year-old bank, announced that it had …
Cardano's ADA token, the fourth-largest cryptocurrency by market capitalization, hit new all-time highs on May 13 as bulls refused to follow the broad market downtrend. ADA wows weary traders Data from Cointelegraph Markets Pro and TradingView confirmed new record highs for ADA/USD on May 13, with the pair touching $1.96. The move is impressive and brings Cardano within inches of the psychologically significant $2 landmark. The altcoin had followed many other large-cap cryptocurrencies higher in previous weeks, but May 13 showed a surprising resilience to volatility, as most tokens fell in line with a reversal in Bitcoin (BTC). With ADA/USD …
The astronomical rally in Ether (ETH) is not showing any signs of slowing down. The bulls easily cleared the overhead hurdle at $4,000 today, which also pushed the biggest altcoin’s market dominance to over 19%. It is not only Ether that is witnessing sharp buying from traders. Litecoin (LTC) and Cardano (ADA) have also risen new all-time highs, suggesting a broad-based altcoin rally. However, Bitcoin (BTC) seems to have lost its momentum as it continues to struggle near the $60,000 mark. That has pulled its market dominance to below 44% for the first time since July 2018. However, the recent …