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Report: Bitcoin to Bounce Back From Black Wednesday Crash

A report from Stack Funds suggests that Bitcoin dominance is about to experience a bounce, supporting Bitcoin’s price in the short-term

Crypto Assets Products issuer Stack Funds released a report yesterday suggesting that Bitcoin may be about to make a recovery.

Bitcoin was down 30% at one point on Wednesday, touching lows of $30,000 not seen since January, and representing a 54% drop since its all-time high in April. Every other major cryptocurrency was affected too, as the total market cap of all coins shed $400 billion in an hour, on the day that has become known as crypto’s Black Wednesday.

However, analysis from Stack Funds struck a more positive note. “We believe this to be a good reset for the euphoric conditions we had for the past weeks,” reads the report, “with Bitcoin price reverting to its daily 250MA as it normalises towards its averages before a push to the upside could materialise.”

Bitcoin dominance was also down this week, hitting a three year low of 39.66%. Bitcoin dominance has been falling since the start of this year, and dropping steeply since March. At the end of April, it fell below 50% for the first time since July 2018.

While Bitcoin dominance has been falling though, the total crypto market cap has been rising, gaining about 80% between the start of March and 12 May this year, according to data from CoinMarketCap. This suggests that the capital of most investors remained entrenched within the crypto markets, with the fall in Bitcoin dominance merely a sign of traders looking to maximise opportunities as altcoin season beckoned.

The impressive gains made by Ethereum during that time would appear to be evidence of this. In fact, searches for “cryptocurrency” have been rising since the end of March, and last week reached their highest level since January 2018, according to Google Trends data. However, during the carnage on Black Wednesday, Google Trends revealed that searches for “Should I sell my crypto?” were up 400% in the US.

Bitcoin dominance looked to be making a good recovery on Wednesday though, as it rose 11% to close the day at almost 45%. The Stack Funds report concludes: “We are expecting investors to cycle back into Bitcoin as uncertainties increases [sic] as the markets undergo another reset. Hence, a bounce in Bitcoin dominance should occur, further supporting Bitcoin’s price in the short-term.”

The post Report: Bitcoin to Bounce Back From Black Wednesday Crash appeared first on Coin Journal.

Bitcoin Just Witnessed “A Knockdown, Not Knockout”: Novogratz

Galaxy Digital CEO Mike Novogratz says only the best crypto projects will survive

The crypto market just witnessed its worst price crash, with Bitcoin plunging to lows of $30k to complete a 50% dump from highs of $59k. All of the top altcoins have also crashed hard in what is the worst performance for crypto since Black Thursday on March 13, 2020.

While several analysts remain bullish about Bitcoin and other top cryptocurrencies, some observers think the worst is yet to come.

Scott Minerd, the CIO of Guggenheim Investments, has compared what is happening in the crypto market to what occurred during Dutch Tulipmania in the 17th century.

Minerd had earlier this year predicted that Bitcoin could rally to $600k. While he hasn’t recanted that forecast, he believes an explosion of so many projects within the space pushes crypto towards an outlook seen during the tulip bulbs bubble.

Crypto critics have previously compared Bitcoin and the rest of the market to Tulipmania before, with many seeing it as nothing but a bubble that will soon burst.

Minerd certainly thinks so, noting on Twitter:

“As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand at the previous market, clearing prices.” 

Crypto crash not a knockout

Mike Novogratz, the CEO of Galaxy Digital, agrees with Minerd’s assessment to a point, but says that the latest price crash is not a “knockout” to crypto.

According to him, the proliferation of cryptocurrencies is nothing but a “supply response.” As more people enter the market, projects spring up looking to tap into the market. Unfortunately, this ends up overwhelming demand.

The same thing happened during the 2017 bull market with ICOs, but the bear market that followed crashed several projects.

Novogratz suggests history could be about to repeat itself and that only “the best projects with utility and community will survive and thrive.”

Notably, he opines that the bloodbath witnessed on 19 May is not a knockout for crypto. The washout is likely to hurt many, but this is the time to “hodl” rather than sell. For Bitcoin, he suggests the market might settle for sideways trading at $40k-$45k before another leg happens.

Bitcoin is trading around $39,450 as of writing, about 22% down over the past 7 days.

The post Bitcoin Just Witnessed “A Knockdown, Not Knockout”: Novogratz appeared first on Coin Journal.

Bitcoin Losses Hit $38.5k – Here’s How To Short Bitcoin For Profit

BTC’s price decline presents an opportunity for short-sellers to make profitable trades.

Bitcoin price has fallen to lows of $38,500 as crypto markets continue to reel from increased selling pressure. The sell-off has seen Bitcoin price decline by 30% over the past seven days, with overall losses since BTC hit a new all-time high of $63,895 in mid-April rising to 40%.

How to short Bitcoin

You can short Bitcoin just like you would any other financial instrument. You do this by borrowing bitcoins from an exchange or broker. You then sell them at the prevailing market price and look to buy when prices drop. This way, you can return the borrowed BTC and keep the gains.

You can also short Bitcoin through a Contract for Difference (CFD) contract. What this means is that you don’t borrow and sell the actual Bitcoins. Instead, you open a short position via a broker, which sells the coins. You get the price difference when you buy back at reduced prices.

Short sell Bitcoin on eToro

eToro is a regulated UK-based platform that provides for crypto buying and trading. You can short-sell Bitcoin on the platform via CFDs without having to worry about buying the actual BTC.

To short Bitcoin on eToro, you will need to register for an account and complete a verification process. Once you are done, open a BTC/USD trade by selecting “sell.”  This opens a short sell for the BTC pair. If you want to go long, you’d opt to “buy”.

Register here

What is behind Bitcoin’s latest correction?

Apart from a bearish flip associated with Tesla CEO Elon Musk’s comments about Bitcoin mining and clean energy, the rot seen in early trades this Wednesday appear to have been accelerated by the news that China was again banning financial institutions and business from using crypto services.

As the Bitcoin price chart below shows, the cryptocurrency remains in a downtrend. Buyers are finding it difficult to string together any significant upside, with a bearish wall just above $40,000 likely to see prices slump further. If it happens, Bitcoin price can dip to lows last seen in December 2020.

BTC 4-hour price chart. Source: TradingView

The post Bitcoin Losses Hit $38.5k – Here’s How To Short Bitcoin For Profit appeared first on Coin Journal.

Bitcoin sinks below $40k to hit 14-week low on bloody Wednesday

Bitcoin’s value against the US dollar reached its lowest level since February 8, when Tesla announced its $1.5 billion BTC purchase

Bitcoin’s correction continued this morning as its price tanked below $40,000, piercing this level for the first time since February 8. At the time of writing, the flagship cryptocurrency is changing hands around $40,105, with buyers trying to rebound off lows of $39,200.

The BTC/USD pair on Coinbase has shed over $3500 in the past 24 hours, with total intraday losses of 12.7%. Bitcoin now trades at its lowest level in 14 weeks, with much of the gains erased over the past two weeks.

Data from CoinGecko shows that the world’s largest cryptocurrency by market cap has lost 26.4% of its value in 14 days. The price is currently 40 percent down from its all-time high of $64,895, reached on 14 April 2021.

The dump appeared to gather speed after Tesla CEO Elon Musk flipped on his sentiment about Bitcoin. Despite an affirmation that Tesla had not sold any of its BTC holdings, the fear index within the market has remained extremely high, with whales depositing huge amounts of BTC to exchanges. This will likely keep the bearish pressure in the short term, according to one analyst.

The negative sentiment also got some fuel on Tuesday when Chinese banking and payment regulators warned financial institutions against conducting business with virtual currency-related firms.

While market data shows this to be the largest correction for Bitcoin in the current cycle, the 40% dump is yet to match the last major bleeding seen in March 2020. At the onset of the coronavirus pandemic, BTC crashed 60% from a peak of $10,000 to reach a floor of around $3,800.

Whether bears take a stranglehold and push prices lower might become clearer if the rot deepens towards the critical $30k level. On the contrary, strong buying could see a short-term rebound.

The bloodbath has not spared the rest of the crypto market. Ethereum, which reached an all-time high above $4,362, has plunged below $3,000 to trade at $2,977. Binance Coin (BNB), Cardano (ADA), Polkadot (DOT), and Litecoin (LTC) have all declined double digits to hit new 7-day lows.

The post Bitcoin sinks below $40k to hit 14-week low on bloody Wednesday appeared first on Coin Journal.

Bitcoin Holders See Opportunity In Price Correction – Where Do You Buy BTC?

Bitcoin remains attractive to long-term investors despite its latest sell-off, according to data that shows aggressive buying from holders

Bitcoin’s status as the most recognised and widely invested cryptocurrency remains so, despite recent turbulence in the market that sent price down by nearly 20% over the past 7 days. The sell-off, triggered by Tesla CEO Elon Musk’s offhand remarks about Bitcoin mining, appears to be easing, though.

At the time of writing, BTC price is around $44,900 — nearly 25% off its 30-day high. However, it remains 370% up year-on-year, with a potential uptrend likely in the short term.

Where to buy Bitcoin in 2021

Bitcoin is available almost on every exchange and broker platform offering cryptocurrencies. While it is easy to buy BTC online today, choosing a platform that offers you security, low costs, and ease of use is recommended.

That’s why we recommend that you visit the following platforms that are not just regulated and reputable but offer several other products that can enhance your portfolio.


Plus500 is one of the leading online brokers in the market. The firm offers access to multiple products, including stocks, commodities, and cryptocurrencies. Among crypto products, the easiest to buy and trade is BTC.

Just register for an account, verify it and proceed to buy BTC with a credit card or bank transfer among other payment methods.

Register here

Coin Kong

Coin Kong is another top platform for buying Bitcoin from anywhere in the world. The platform connects crypto users to major brokerage firms across the globe, from where you can buy Bitcoin among other top cryptocurrencies like Ethereum, Litecoin, and XRP.

Please note that you cannot access Coin Kong if you are in the US.

Register here

What next for Bitcoin?

Short-term, prices will likely go up, even if BTC crashes below $40k to retest December 2020 prices near $30k. The bullish outlook is from the overall positive sentiment in crypto and the aggressive accumulation being witnessed at the moment.

According to data platform Glassnode, the dip to lows of $42k and the current price levels of $44,900 are nothing new and “just another day in the office” for HODLers. Per the firm’s latest report on Bitcoin, the correction has provided an opportunity for further accumulation by long-term investors.

“In almost perfect opposition to new entrants panic selling, long term holders appear to be buying the dip and accumulating cheaper coins.”

Crypto analyst CredibleCrypto has noted that this dip represents a great opportunity to buy Bitcoin.

The post Bitcoin Holders See Opportunity In Price Correction – Where Do You Buy BTC? appeared first on Coin Journal.