Who are bears to disagree? Everybody is looking for profits.
Bitcoin is continuing to keep the beat of the cryptomarkets. It seems the £4.3k ($6k) double bottom, reached yesterday at 05:00 and 08:00 GMT, is now behind us as the total market cap of the space jumped up 27% to £250B ($350B).
Still, no cryptoasset is ‘safe’ until bitcoin fully enters bullish territory again — and that might mean different barriers up to £9.3k ($13k). This is because the old correlation between the mother of all cryptoassets and their offspring is still strong.
As bitcoin kept falling since its December 17th high, alternative cryptoassets rallied until January 8th — the date of CoinMarketCap’s decision to remove Korean prices from its averages, which marked the beginning of a decline that affected all projects.
Some projects, like NEO, managed to survive the dip until last week. Every altcoin dropped eventually though, as most exchanges that trade them only offer liquid pairs against BTC — so, in the end, everyone is affected by bitcoin.
Do note, however, that such market anxiety can create excellent opportunities to buy into your favourite projects. NEO was the perfect example of this, as it crashed 61% over the past week and just bounced back 48%. In fact, no top cryptoasset was left behind!
But, as we have been saying, we are still in a downtrend
Despite some usually bearish traders having become more positive over the past few hours, others are still claiming the current rise is just a dead cat bounce that could make bitcoin drift lower than yesterday’s bottom. The fundamentals do paint a brighter picture than that though!
The first positive sign is that Bitcoin’s protocol NVT signal ratio — a derivative of the NVT ratio, which measures the dollar value of the transactions taking place to the market value of the network — is at its lowest level since 2016. Whenever the ratio hit this level in 2016 and 2013, it signalled the beginning of the two most significant bull runs in bitcoin’s history.
The second positive sign is that yesterday’s trading day had the highest volume of the past two years.
The final positive indicator is that the technical roadmap of Bitcoin’s development is more solid than ever, which, when paired with the current regulatory oversight, might signal a turning point for adoption. In this regard, we recommend this summary of what lies ahead!
Filter the noise and stay ahead of the pack
Bloomberg is noting a positive correlation between cryptoasset prices and the stock market, which might be bad news in case the latter crashes!
Brave New Coin’s price analysis has become very popular among crypto enthusiasts. Here’s today’s weekly overview of bitcoin — caution is advised!
Reuters reports that “banks in Britain and U.S. ban buying bitcoin with credit cards”. We think that overall this is good news, as cryptoassets should not be bought on credit!
An insight a day could give you more profits to play
New York Times’ opinion on the rise of such regulatory oversight is quite gloomy, claiming that “frauds and flaws rise to surface”. Perhaps they can’t see the forest for the trees?
A new statistical analysis of Tether refutes the claims of the popular TetherReport and finds “little correlation between tether printing and bitcoin’s price”!