After a one week hiatus, the weekly Bitcoin Price Analysis articles are back! The market has been very active over the past two weeks, so there is a lot to get to! Let’s get started. 

Last week we said: 

Last week we saw a rather bearish scenario, but since the $10k level held we now see either a consolidation phase (neutral wedge) forming, or the confirmation of a bull channel. With investor sentiment neutral and/or slightly fearful, there certainly will be buyers at this price level. Combine this with extremely strong fundamentals and the bull case for BTC is quite strong at this moment. To confirm the bull channel, a return to $12k is needed. Likewise, both theories could be invalidated if BTC returns to the $10k level and fails to hold yet again. For now, it’s looking like the days of sub $10k BTC are over. 

We correctly predicted that Bitcoin was showing bullish signs, and the market has reacted accordingly – today pushing up above $11.5k! If the bullish trends continue, this could confirm that we are likely in a bull channel and that new highs are forthcoming! 

Price Analysis

In our last article, we showed a wedge forming on the 4H chart. Based off of indicators and sentiment, we saw that it was likely to break upward, which is exactly what is happening now. This move is likely to continue toward the $12k zone where it may consolidate before continuing upward. 

Zooming in on the same timeframe, we can see that the moving averages are confirming this bullish move, and all of them are inclined upward (bullish). 

The Daily chart gives us a more macro-view of the price action. As you can see, the price bounced multiple times off of the 100MA (light blue), which has acted as strong support for the bull trend. The 20MA (which acts as our short term indicator) never crossed below the 100MA, meaning that the trend is still in tact and may now resume after repeatedly testing support. All averages are still inclined upward. 

Looking at the RSI, we can see that the price has more room to grow before becoming overbought. Currently, the RSI is around 65, which is slightly overbought but not overly so. The last time BTC was at this price level, it was heavily overbought and needed to slow down and recharge. This is no longer the case. 

Investor Sentiment 

This is an incredibly bullish sign. Even with the recent move upward, the market is still “Fearful” by a significant amount – meaning that the price still has significant room to grow. Remember, we tend to take a contrarian mindset. When this reads “fear’ we buy and when this reads “Greed” we sell. 

There is more than one fear/greed index for the crypto markets. We look at more than one so that our view of the market is not biased. While these indexes sometimes agree, right now it appears that Alternative.me is slightly more greedy than BTCtools.io. Still, this confirms that the markets have not yet reached “greed” status. 

Fundamental Analysis

Bitcoin continues to post strong fundamentals, with the Hash Rate remaining near all time highs. This is good news for bulls, as a high hash rate means the inherent value of Bitcoin remains higher than market price. 

Miners revenue remains relatively low, and has actually decreased a bit over the recent spike due to transaction fees being so low. Remember, there are multiple variables that affect Miners Revenue, including the price of Bitcoin, Hash Rate, and transaction costs. Since revenue is relatively low compared to the past, either the price/transaction cost have to increase or the hash rate has to decrease – which would result from a decline in miners competition. With interest in blockchain rising, competition is unlikely to go down anytime soon – meaning that Bitcoin must continue to rise in price! 

Interesting News

CoinDesk reported last week that Square had purchased 4,709 Bitcoins ($50M) and planned to hold them as a company asset. The company said in a statement, “Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.” This is an interesting development that is sure to catch the attention of other large tech companies, and signals that institutional interest in Bitcoin continues to rise. 

Conclusion

Bitcoin is making significant headway on the charts, and all indications are that it will continue. With bullish price action, a fearful/neutral sentiment and rock solid fundamentals paired with growing institutional investment, Bitcoin’s moon mission 2.0 looks ready to launch. 

It’s looking increasingly likey that Bitcoin is in a new bullish channel (shown in green). The key level to test is shown by the red horizontal line in the image above. If Bitcoin fails to make a convincing break above that level, it will have formed a double top and will likely consolidate before choosing a direction. A break above $12.2k would confirm the channel and a rise to $13k is likely. Likewise, the price falling below $10.5k would invalidate the channel and signal a consolidation period. 

• TLDR
• BULLISH

This article is not investment advice, and is intended only for educational and entertainment purposes. Always do your own research before making an investment decision, and consult your financial advisor. 

The post Bitcoin Price Analysis – Week of October 11 appeared first on Midas.Investments. Crypto investment company blog..

Last week we said: 

BTC is testing $10.4k, but with an imminent death cross on the local hourly chart, a retest of the 10k zone is possible if not likely. I would expect this to be a quick touch, “wicking” below the 100MA on the daily chart but closing the day above 10.4k.

Could our analysis get any better?? Once again, we hit the nail on the head with our prediction. Just like we predicted, BTC wicked down to the strong $10k support zone, reaching a low of $10,137 before rocketing above the $10.4k zone: 

After finding support in the 10.3-10.4k zone, BTC shot up again, forming a double top at $10940 and then retracing: 

Since the local top, the top cryptocurrency has been trading in the 10.6k – 10.7k range, forming a consolidation pattern and gearing up for its next move. Let’s continue our weekly analysis and try to get a leading edge on what the market will do in the coming days! 

Price Analysis

From the 4H chart we can already see that BTC is forming a wedge pattern, which in this case I would view as bullish. Since the wedge is a neutral wedge and the support is trend support, the likelihood is that it will break upward just as it did in our last wedge. Markets tend to perform in cycles. 

Another possible scenario is that Bitcoin is forming a long term bull channel on the 4H chart. This would be confirmed by a move back to the $12k price level. 

The 1D candle chart makes the bull channel even clearer, especially with the 20MA bouncing off of the 100MA as support. If BTC makes a strong move upward in the coming days, this theory could be confirmed. If not, expect a longer consolidation period. 

Investor Sentiment 

The Fear Greed Index is still showing “fear” – indicating that the market may not have topped out yet. Remember, we always trade contrary to the market sentiment. A contrarian mindset when trading can be quite profitable. Never trade out of emotion. 

Both indexes agree that the sentiment is slightly fearful. This is slightly less fearful then last week, which measured around a 39 on both sites, which should be expected since the market moved upward. Since the dials are not showing “greed” – I view this as slightly bullish. 

Fundamental Analysis 

The mining hash rate has declined a bit since last week, but is currently rebounding. Still, levels are near all time highs, which is bullish if you believe in the inherent value of Bitcoins. This means that competition for mining Bitcoins is at an all time high, and so is Bitcoin’s carbon footprint! The inherent value of BTC is directly correlated with the amount of electricity it takes to mine one (mining cost). 

Even still, compared to all time high mining revenues, currently miners are not making much. This is largely due to the block halving. Keep in mind that miners are good traders, and would sooner stop mining than sell at a loss. For BTC to return to all time high mining revenues, the price would have to nearly 5x. 

Conclusion

Last week we saw a rather bearish scenario, but since the $10k level held we now see either a consolidation phase (neutral wedge) forming, or the confirmation of a bull channel. With investor sentiment neutral and/or slightly fearful, there certainly will be buyers at this price level. Combine this with extremely strong fundamentals and the bull case for BTC is quite strong at this moment. To confirm the bull channel, a return to $12k is needed. Likewise, both theories could be invalidated if BTC returns to the $10k level and fails to hold yet again. For now, it’s looking like the days of sub $10k BTC are over. 

Always do your own research before making an investment decision. This article is for educational and entertainment purposes only. 

The post Bitcoin Price Analysis – Week of September 27 appeared first on Midas.Investments. Crypto investment company blog..

Good Day Midas community! 

The markets have been very turbulent in the time since our last article. ICYMI, our conclusion in our last analysis was: Short term pain, long term gain. In other words, we thought that further price retracements below the $11.2k level were quite likely before Bitcoin continues its bull trend. 

Our hunch was correct. This is exactly what played out in the markets. 

Let’s take a look at what the charts and fundamentals are telling us, and see if we can continue to predict BTC’s movements. 

Price Analysis

At the time of writing our last article, Bitcoin was trading around the $11.2 – 11.3k level after testing the $12.4k resistance zone. As we predicted, the markets have experienced a lot more “pain” – further retracing in price to the current $10.2k mark. As we know, the $10k price level serves as extremely strong resistance/support, as it is a key psychological number. Over the past week, Bitcoin has tested the $10k level multiple times, as represented by the several “wicks” that reached as low as $9.8k. Since Bitcoin has consistently bounced back above this level, I view it as a strong confirmation that $10k is a strong support level. The support range is from $9.8k – 10k. 

Here we take a closer look at the price movements by looking at the 1H candle chart. The solid green line is the strong $10k support level. We also can see the moving averages in this chart. 

While the moving averages aren’t necessarily bullish, the 20MA is now preparing to cross above the 100MA, which is flattening out. This could mean that the worst is over, and Bitcoin will trade sideways for a bit as it refuels to test resistance levels. 

To get a Macro view, we will apply the same criteria to the daily chart. We can see that despite the recent pullbacks, the bull trend dating back to March is still in tact. The moving averages are still bullish, but if BTC breaks below $10k, support will be found around $9k, where the 200MA currently sits. 

Investor Sentiment 

As we know, Bitcoin’s price is largely driven by how the crypto community feels. We typically use the Fear/Greed index from Alternative.me. Let’s take a look: 

As you can see, last week the market went from “extreme Greed” to “fear” rather quickly. However, the index read basically flat after the initial drop. Here is a plot of the FGI over time: 

The Index changed from 79 to 41 overnight, where it has stayed for most of the past week. However, in my opinion this change does not reflect the true fear of the crypto community. 

There is another Fear/Greed index that we will take a look at, and perhaps take an average of the two. 

This additional index shows a sentiment of “Extreme Fear” which I think accurately encompasses the feeling of the crypto market over the past week. From this, we can gather that the market is Fearful/Extremely Fearful, which in general is a bullish sign for crypto. Remember, we want to do the opposite of what the markets are doing. 

Fundamentals 

This suspicion is confirmed by Bitcoin’s hash rate. Despite the dip in price, the network continues to grow and the hash rate is climbing. This means that the inherent value of Bitcoin is still trending upward. 

It’s important to keep in mind that Bitcoin miners tend to be good traders. If the hash rate is higher, we can assume that more electricity is being used to mine a single Bitcoin. If the cost to “mine” a Bitcoin is greater than the value of the Bitcoin, the hash rate will go down as miners are turned off. But if the hash rate is climbing while the price is dipping, we can assume that miners are going to hold their newly mined BTC and sell at higher levels. This is bullish. 

We can also see that the Bitcoin network continues to grow despite the decline in price. More people are using Bitcoin than ever before, which will be reflected in the value sooner or later. 

Analysis

Bitcoin has declined in price over the past week, but has held the $10k support level nicely. This, combined with the fearful market sentiment and strong fundamentals, indicates that the market is quite bullish at this point. I expect Bitcoin to trade sideways for a few more days before moving up toward $11k, and possibly $12k. If Bitcoin reverses and breaks below $10k, I expect to find support at $9k. 

TLDR

• Price Analysis: Neutral
• Sentiment: Bullish
• Fundamentals: Bullish
• Consensus: Bullish

Please keep in mind that all information in this article are for educational purposes only, and should not be taken as investment advice. Always do your own research before making any investment decision. 

The post Bitcoin Price Analysis – Week of September 6 appeared first on Midas.Investments. Crypto investment company blog..

Hello again Midas Investors! 

We will continue our series of weekly TA on Bitcoin and the crypto markets in general. If you’ve been involved in crypto for any amount of time, you are well aware that where Bitcoin goes – so does the entire market. Except for stablecoins, the movements of Bitcoin have a direct effect on nearly every other cryptocurrency. As such, prudent investors will keep their eyes on the market direction of BTC at all times. 

Price Analysis

Bitcoin has been retracing over the past week, dropping about 4% today alone. Currently, the top cryptocurrency is trading around $11.3k, and has yet to find a price support. Two weeks ago, we saw a price retrace to around $11.2k, before the price retested the $12k levels. Perhaps we will find support around that level. 

We get a slightly clearer picture of what is happening when we look at the 4H chart with moving averages. The 200MA (shown in blue) is a strong support level, and BTC is currently testing it. If BTC continues to close candles below this line, we might see further retracement. If a “wick” forms and the candle closes above the 200MA, a bounce is likely coming. 

The daily chart gives us a more macro-view of the trend. Despite the pullbacks, the uptrend is still quite strong, and all of the moving averages show bullish. Support levels for the 100MA and 200MA are around $10k and $9.2k, respectively. However, the red trendline could also be used as support, around the $10.7k level. 

Investor Sentiment 

Since Bitcoin is primarily a P2P traded instrument, market sentiment is king. In general we want to “buy” when the market is fearful, and “sell” when the market is greedy. Alternative.me provides a great index which measures this sentiment. Let’s take a look at what it says. 

Despite the week-long retracement, the market is still reading as “Greed”. However, last week it was at “Extreme Greed” – so there has been a slight pullback in sentiment. Keep in mind that this indicator is only updated once per day, and that today’s sharp price decline has not yet been “priced in” to the index value. I would expect that after today, the index would be much less greedy. Overall, the index suggests that we could see more short term pain. 

Fundamentals 

Bitcoin’s hash rate is a measure of the total number of miners contributing to the network. As you can see, the hash has declined from its all-time-high, but might be in the process of bouncing. The hash rate helps to determine the inherent value of Bitcoin, because in general the higher the hash is, the more electricity is required to generate one Bitcoin. 

Despite the long term upward price trend and hash decline, the Miners Revenue is still relatively low due to the block halving. I view this actually as a bullish sign, since the miners have every reason not to sell their rewards at this point. 

The last fundamental we will look at today is the number of unique addresses used on the Bitcoin blockchain. This is a raw indicator of how many people are actually using Bitcoin. With this number on an upward trend, we can be confident that Bitcoin is still growing, and will continue to gain value. 

Analysis 

With how quickly Bitcoin shot up over the past few weeks, we could see this price correction coming from a mile away. But, as long as we stay over the $10k mark, the upward trend will remain in tact. Since the block halving has historically been extremely bullish, I view this pullback as “refueling” for testing new resistance levels. The fundamentals are still incredibly bullish. 

TLDR

• Short term: Pain
• Long term: Gain
  

The information in this article is the opinion of the author and is intended for educational purposes only. Not investment advice. Do your own research. 

The post Bitcoin Price Analysis – Week of August 23 appeared first on Midas.Investments. Crypto investment company blog..

Greetings Midas Community! 

Another week, another Bitcoin analysis article. As every crypto investor is well aware, the price fluctuations of Bitcoin are essential to understand the market in general. Bitcoin – the king of Crypto – largely determines whether the industry is bullish or bearish. In these articles, we are going to conduct price analysis, as well as fundamental analysis in an effort to dissect Bitcoin’s overall trend. Let’s get started. 

Price Analysis

To begin, we will look at the price fluctuations of BTC vs. USD on a large (4H) timescale. As we have observed in recent weeks, Bitcoin continues to consolidate between the 9k and 10k price points, preparing for what many expect to be a significant move in either direction. Many analysts believe that the longer Bitcoin trades in a low-volatility zone, the larger its next move will be. 

Zooming in on the past few weeks of action (still on the 4H candle chart), we can clearly see that a wedge is forming on the chart. Using the wicks to determine the trendlines, we can see that Bitcoin has consistently found support between the 8800-8900 zones, forming a pattern of higher lows and lower highs. This is a neutral trading pattern. 

On the much larger 1D time frame, we can see that this consolidation pattern has been forming for a long time, with higher lows and lower highs forming consistently over the past few years. This dates back to the 2017 bull run, which peaked around the $20k mark, and last year’s peak of $14k. The moving averages currently are bullish, with the 50MA and 100MA sitting above the 200MA. Most traders believe that as long as BTC stays above the 100MA level (currently around $8.6k) – it remains bullish in the mid term. 

Investor Sentiment

Fear and greed indicator is usually a contrarian indicator. When the majority of people are at one end, the market tends to cause maximum pain. Generally speaking, when people are fearful (most often after a rapid decline in price) – this is a good time to buy. Alternatively, when people are greedy (most often after a rapid increase in price) – this is a good time to sell. There are other factors that play into this index, such as volatility, momentum, and social media sentiment. Since Bitcoin is primarily a P2P traded instrument, knowing the tide of sentiment can go a long way. 

As we have seen in this consolidation period, the market remains slightly fearful. A value of “50” would be perfectly neutral, but as the historical values indicate – we have been in this territory for a long time. While “Extreme Fear” values (below 20) are a great indicator, this indicator is basically neutral and does little to help us predict Bitcoin’s next move. 

Fundamentals

After Bitcoin’s block halving, some experts predicted that Bitcoin would plunge into a “death spiral” since mining would cease to be profitable. In essence, if miners consume more electricity than their Bitcoin returns bring them, there is no sense in continuing operation. Bitcoin would be forced to increase miner profitability – either through increasing price or reducing the mining competition. 

The post Bitcoin Price Analysis – Week of July 5 appeared first on Midas.Investments. Crypto investment company blog..

Dear Midas Community,

This is our weekly update on Bitcoin price movements. We as a team feel that these insights are valuable to the community, as the value fluctuations of Bitcoin greatly affect altcoin markets. In this series of TA articles, we will conduct both price and fundamental analysis to determine an overall trend for BTC. 

Price Analysis

Once again we will observe the movements on a large (4H) candle timeframe. We can see that over the past few weeks, Bitcoin has been consolidating between the 9-10k mark, with breaks out of this range quickly correcting. 

A new wedge is forming on the chart, with support being repeatedly tested in the $8800 zone. This is a major support zone, which has survived multiple tests. The lower highs suggest that this zone will continue consolidating until a direction is determined. 

On the shorter-term 30m candle chart, things are looking decently bullish with a nice bounce from the $8800 support zone. The moving averages are looking good as well, with the 100MA crossing the 200MA. This bullish move would be confirmed with high volume, which has not yet happened. 

Investor Sentiment

Investor sentiment is a key indicator for the market direction. As the renowned investor Warren Buffet once said, “Be fearful when others are greedy, be greedy when others are fearful.” The key here is to go against the sentiment. When times are fearful, it presents a good buying opportunity. Likewise, when investors are greedy, the market is likely due for a correction. 

The sentiment index has been in the low 40s for quite some time now, showing investors are tepid about price prospects. Nonetheless, the market has not had any significant moves in either direction, so the index has stalled out in this range. 

Fundamentals 

Miners revenue continues to hold near yearly lows. Bitcoin miners have certainly taken a large decrease in earnings following Bitcoin’s block halving. These yearly lows have not broken significantly below $7M, creating a nice support zone after testing several times. The only way that miners are going to increase their revenue is by refusing to sell at this valuation. 

Analysis

The $10k psychological resistance continues to evade Bitcoin, and the price is now consolidating yet again. After a failed attempt to break support last week, Bitcoin is in indecisive territory. On a short timeframe, technical indicators look neutral to bullish, but on the larger time frames, they look neutral to bearish. The best move now would be to wait for entries near the support zone, use tight stop losses, and exercise extra caution until Bitcoin determines a decisive direction. 

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 28 appeared first on Midas.Investments. Crypto investment company blog..

Hello Midas Community! 

We will continue with our analysis of Bitcoin price movements, as it greatly affects the altcoin markets. In this series of TA, we will conduct some TA, and look at overall trends and fundamentals. Let’s get started!

Price Analysis

Here we see the macro price movements of Bitcoin vs USD on a 4H timeframe. Ever since the large decline in mid-March, Bitcoin rose steadily before beginning a consolidation pattern between 9-10k. 

If we take a closer (zoomed in) view of the chart, we see that a wedge consolidation pattern was forming, as depicted in the above picture by the red lines. These lines are determined by the candle “wicks”, which show a tightening window between support and resistance. However, the last few candles show an upward breakout from this zone. 

On lower timeframes, Bitcoin is showing very bullish activity, with the 100 MA line crossing the 200 MA line, before an upward surge in value. On higher (4H) timeframes, the RSI is currently 66, showing more room for positive upside. 

Investor Sentiment

One of our key indicators is the Fear/Greed index, which we use to predict overall market direction. Usually when the dial reads “fear” it indicates a good time to buy, and “greed” is a good time to sell. Since last week the price was declining, the historical values show slight “fear” – indicating that a move upward was likely. We are seeing this upward price movement now. After today’s move, it is likely that the index value will go up, but generally this remains a good buying opportunity. 

Fundamentals

Last week, at time of writing there was a hash rate of approx. 112m TH/s. Today, that number has fallen to 105m TH/s. Since Bitcoin’s price is rising currently, expect the hash rate to follow suit. 

After the block halving, the miners revenue is near its yearly low. In order for miners to regain their revenue, the price of Bitcoin must rise. 

Analysis

Since miners are not making as much money post-halving, a convincing and sustained break above the $10k level will be explosive. Nonetheless, the $10k mark has been an extremely strong resistance, and the price has failed to hold above this key level. Technical indicators as well as investor sentiment are all bullish, and I expect the price to retest the $10k levels in the coming days. Key support levels are: $9.2k, 8.8k. Key resistances are $9.6k, 9.8k, and 10.2k. 

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 21 appeared first on Midas.Investments. Crypto investment company blog..

Greetings Midas Community,

As always, we are keeping our eyes on the price movements of Bitcoin. Since the inception of cryptocurrency, the crypto market moves as Bitcoin moves. In these articles we will make weekly technical analysis, looking at trends and fundamentals.

Here we see Bitcoin’s price action on a large-scale 4H time frame. Since the big drop in mid-March, Bitcoin has been steadily rising against USD.

Until recently, the blue trendline was quite strong, and had been tested multiple times. However after several failed attempts to sustain a break above the $10k resistance level, the trend changed to test the local support. At time of writing, the local support of $8800 held, and the price has bounced back into the $9400 zone. If this support were to break, more support will be found at $8k and then the $6k zone. 

Zooming in on a 30 minute candle chart shows that the moving averages are bearish, but with a bullish divergence. After finding support, the current bounce is moving to challenge the short term bear trend. 

The technicals vary greatly depending on the timeframe. On the short term 30m chart, RSI is showing as overbought – indicating an imminent pullback. On the longer-term 4H and 1D charts, the RSI is neutral. 

Investor Sentiment

Like we always say, Investor Sentiment is a critical component of proper TA. In general, when the index shows  “Fear” it represents a good buying opportunity. Likewise, “greed” indicates a good selling opportunity. This index is updated once daily, so the drop to $8800 may not be fully factored into the index yet. However, the index is still showing slight fear, which might be a buying opportunity for long term investors. (This message will allow you to add an extra 10 dollars to your address if you are the first to send the words “a penny saved is a penny gained.” to the chat.)

Fundamentals

In our analysis from June 7, the TH/s read out around 112. Since our last analysis, the hash rate rose to 117 before returning to the 112 level. Even still, the network hash remains near all time high levels. 

Analysis

Last week we predicted that if Bitcoin failed to hold above the $10k level, the trend line would be broken and the price would test support levels. That is exactly what happened, leading to the recent correction to $8800. The recent spike to ~$9400 could be a good shorting opportunity for traders with a higher risk tolerance, with a target entry of $9450 – $9550. Long term, Bitcoin remains bullish, but traders should exercise extra caution until a clear direction is confirmed.

Always do your own research before making an investment decision. 

The post Bitcoin Price Analysis – Week of June 14 appeared first on Midas.Investments. Crypto investment company blog..