The Bitcoin Bull Market Bounce Back

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Bitcoin, ‘the best house in a tough market,’ is bouncing back, says Wall Street bull Tom Lee

Despite bitcoin’s tumble over the past two weeks, Wall Street bull Tom Lee says the cryptocurrency is gradually regaining market share — which should comfort bitcoin buffs.

“The news that we have seen, from the SEC saying bitcoin’s a commodity, to … the potential for an [exchange-traded fund] is causing investors to decide that bitcoin is the best house in a tough market,” Lee, who is Fundstrat Global Advisors’ managing partner, said on CNBC’s “Fast Money.” He was referring to the U.S. Securities and Exchange Commission (SEC).

Bitcoin has been on a near steady downward slide, since briefly topping $19,000 in December. It dropped below $6,000 at the end of June — its lowest value all year, according to Coindesk. The cryptocurrency then rallied, approaching $8,400 in July, before tumbling back down to around $7,000 in recent days.

“Bitcoin isn’t broken if it’s holding at these levels. I think people are afraid it is going to go back down to $6,000 and never come back from those bear markets,” Lee said on Monday.

Bitcoin’s price remains low, despite a rash of developments in the cryptocurrency world.

SEC leaders have publicly labeled bitcoin as a commodity and in June made it clear that cryptocurrencies would not be treated like securities, which offers a peek at how the agency might seek to regulate them. The Intercontinental Exchange on Friday announced a partnership with major companies, including Starbucks and Microsoft, that will aim to create an open and regulated digital asset ecosystem. Crypto bulls say this development could help legitimize bitcoin.

Bitcoin may not be reacting outright to the news, but the true sign of its return, Lee argued, is the regaining of its market share.

At the start of 2020, bitcoin claimed about 80 percent of the overall cryptocurrency market. About a year later, by January, bitcoin’s market share has dropped to only about 36 percent. However, it went on to creep up for the rest of the year.

In the past couple of weeks, bitcoin’s market share has soared to its highest level all year to around 48 percent, Lee said.

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“I think bitcoin dominance is actually showing the market is reacting to what’s been taking place,” Lee said.

Markets Update: Deflated Digital Asset Prices Bounce Back

The price of bitcoin (BTC) has rebounded significantly since our last markets update. BTC markets reached a high of $16,100 across many global exchanges around 11:00 am EDT on December 26. The price spike is a big jump from yesterday’s weighted global averages of $13,800-14,000 per BTC on Christmas day.

After the Holiday Lull Crypto-Markets Bounce Back

Cryptocurrency markets are rebounding today as 9 out of the top 10 digital assets are seeing gains between 1-16 percent. Bitcoin core (BTC) markets have seen the most significant percentage gains and the most volume during the bounce back. At the moment traders are swapping over $12.7Bn worth of bitcoin during the course of the past 24-hours. BTC markets are up 16.2 percent and its market capitalization is around $270Bn. This metric has improved BTC dominance among the 1382 other digital assets by 45.8 percent, after it reached a low of 42 percent over the holiday weekend.

The top five trading platforms exchanging the most bitcoins globally include Bitfinex, Bithumb, Binance, Bittrex, and Bitflyer. At the moment Bitfinex 24-hour volumes are very close to touching $1Bn while the rest of the top five exchanges are swapping $250M or more. The U.S. dollar is still the most traded national currency with BTC at the moment, but Japanese yen volumes have increased. The USD is dominating by 38 percent while the yen is 32 percent, followed by the Korean won, tether (USDT), and the euro. Tether volumes have dropped significantly as traders who once used USDT as shelter seem to be exiting that market in high numbers. Over the past three hours BTC prices have ranged between $15,700-$16,100 during the early afternoon eastern standard time.

Technical Indicators

Bitcoin core charts look very bullish today as there has been a lot of changes since yesterday’s holiday trading action. Right now the two Simple Moving Averages (SMA) both the short-term 100 SMA and the longer term 200 SMA have converged at 11 am EDT. This means the path to the upside will likely have less bearish pressure in the short term. The Stochastic and RSI oscillators are showing bullish sentiment in the markets as both indicators have seen an uptick northbound.

RSI and Stochastic oscillators are showing a healthy rebound.

If bulls continue to wage war against the sell-side order books, they will meet more substantial resistance in the $16,250-16,500 zone. Anything $16,700 and above has even thicker resistance, and it will take some strength to break these regions. On the backside, support is definitely narrowing down, and strong foundations can be found in three key areas including $15,500, $15,000 and even stronger support around $14,500.

Bitcoin markets touch a high of $16,100 across global exchanges on December 26, 2020, at 11 am EDT.

The Top Ten Digital Asset Markets Are On the Move Northbound

The top ten cryptocurrencies are all in the green except for NEM which is coming down from a recent price high. Ethereum (ETH) is up close to 2 percent as one ETH is averaging $771. Bitcoin cash (BCH) markets are doing well today as markets have increased around 1.3 percent, seeing BCH prices reach $3,010 per token. The fourth top market capitalization held by ripple (XRP) is still hanging above a dollar at $1.10 per XRP. Litecoin markets are moving up the ladder, seeing gains above 2 percent with one LTC is averaging $281 per coin. The rest of the top ten digital asset markets are slowly nurturing their wounds after last week’s big dip.

The Verdict

Overall digital asset traders are optimistic about the increase after experiencing one of the year’s biggest drops in value. The rebound has been a breath of relief for those not used to the big tumbles after cryptocurrencies spike in value. However, some skeptics don’t believe we are out of the woods just yet, and bears could attack this coming New Years weekend again. Other more positive individuals think we will be reaching more all-time highs at the beginning of 2020.

Bear Scenario: Order books on the buy side are much thinner than the sell side, but are definitely stronger than prior to the last ATH. Although, if bulls can’t manage to keep the upwards pressure going $13-14K prices are still in the cards at this vantage point.

Bull Scenario: Buyers have done a great job bouncing back from the holiday lulls which has required a lot of energy. If bulls can manage to muster up even more strength, we will see prices touch the $16,500 zone in the short term. From there they have a harder fight ahead of them.

Where do you see the price of bitcoin heading from here? Let us know in the comments below.

Disclaimer: Bitcoin price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”

Images courtesy of Shutterstock, Bitcoin Wisdom, Pixabay, and Bitstamp.

Bitcoin Bulls: John McAfee Says Crypto Will Bounce Back—and He’s Not Alone

Depending on who you ask, bitcoin is either the future of finance or a massive waste of time. But despite the price of the cryptocurrency crashing in recent months, bullish industry players are convinced the market will soon exceed the record levels of 2020.

One of the loudest voices is John McAfee, the cybersecurity pioneer-turned-cryptocurrency guru who last year bet that a bitcoin would be valued at $1 million by 2020. If the prediction turned out to be wrong—he informed his 840,000 Twitter followers—he would eat his own penis.

McAfee confirmed to Newsweek that the wager is still on. “I absolutely stand by the million-dollar prediction,” he said on Wednesday, in the wake of the price of the cryptocurrency tanking to under $6,000. “It is still two and a half years away, in which two things will happen: bitcoin will continue to grow, and the U.S. dollar and other fiat currencies will devalue.”

He was not the only one to predict that the fintech market would soon be thriving, even if other industry players had more tempered expectations. “The overall trend in the value of bitcoin is still heading north,” Danial Daychopan, CEO of a bitcoin platform called Plutus, told Newsweek.

US anti-virus software pioneer John McAfee is transferred in a migration’s car to the Aurora international airport in Guatemala City on December 12, 2020. JOHAN ORDONEZ/AFP/Getty Images

“Bitcoin is a good unit of account, and unlike gold it’s the perfect unit of exchange,” Daychopan continued. “This is a fundamental fact. We’re going to see overall growth of the bitcoin price by the end of the year: I predict the value of bitcoin may reach £30,000, the year after £50,000.”

Last year, investment into cryptocurrency spiked as the value of bitcoin skyrocketed. Financial experts warned that it was a bubble—but even that has not put off the dedicated bitcoin bulls.

“Cryptocurrencies have gone through many ‘bubbles’ already in their short life cycle,” Liina Laas-Billson, who has worked in the fintech field for half a decade, told Newsweek.

“The previous bitcoin boom resulted in the price crashing 80 percent from an all-time high of over $1000 per bitcoin. It took three years to climb back up to the previous price rate,” she said.

“By the end of 2020, the price of bitcoin skyrocketed to nearly $20,000. If we assume the same thing to happen in the future, its price could reach somewhere near $80,000 in 2021.

“This is enough to make investors very excited,” she continued. “Every time the crypto market crashes it brings a great deal of doom and gloom. I have already lost count of how many times bitcoin has been declared dead. The negativity around cryptocurrency can be compared to the negativity towards the internet in the 90s. Both have sailed on despite the bad press.”

Of course, those who are invested in the industry want to see it thrive. Crypto is big business.

External commentators are less than convinced about its future success. “How low [the price of bitcoin] can go is anyone’s guess,” academic Niels Pedersen told Newsweek. “If cryptocurrencies ever become mainstream, then prices could go a lot higher; if not, many become worthless.”

But the bulls don’t think in the short term. Most “buy the dip” and hold onto currency until it spikes in value. On Reddit’s r/Bitcoin messageboard, many believe it still remains viable.

As one passionate user posted this week as the market plunged: “Am I selling now? No way. Why not? Because bitcoin is not broken. Will there be bumps along the way? What do you think we’re experiencing now? At this time, some of you get to decide: are you going to be a coward, or not?”

In this photo illustration a visual representation of the digital currency Bitcoin sinks into water on August 15, 2020 in London, England. Dan Kitwood/Getty Images

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