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Bitcoin Price Analysis: BTC Recovers to $20K, Was Local Bottom Confirmed?

Bitcoin’s price is currently testing the 2017 all-time high range between $17K and $20K and is constantly shadowing lower prices, indicating excess pressure from sellers.

Yesterday BTC recorded a new 18-month low of $17.6K and quickly recovered to $20K in the following hours. However, the downtrend momentum shows no indications of weakening, yet, making it difficult to predict a local bottom at this time.

Technical Analysis

Technical Analysis By Shayan

The Daily Chart

As mentioned above, Bitcoin’s price ranges at the significant support level of $17-20K, which also contains 2017’s all-time high.

The good news is that a pullback to one of many existing resistance levels is likely anticipated based on the market sentiment and a divergence between the price and the RSI indicator. As seen below, the 50-day moving average line and the channel’s mid-trendline are the main barriers on the way up.

Nevertheless, the price would still need to break above the $32K level and the 50-day and 100-day moving averages to start considering a bullish reversal.

The 4-Hour Chart

After a boring mid-term consolidation, the price has entered an expansion phase and experienced a steep drop to the $17K crucial support level.

The chart below shows a descending channel pattern at the $17K – $20K support region. This is a bullish reversal pattern, and if the price bounces off the third touch of the lower boundary and breaks the pattern to the upside, a short-term rally will likely be initiated.

Considering the divergence between the price and the RSI metric in the 4-hour timeframe and the mentioned descending channel, a short-term rebound towards the $24K level and even the $30K supply zone could become probable.

On-chain Analysis

On-chain Analysis By Edris

Bitcoin: Exchange Reserve – Derivative Exchanges

Bitcoin’s price has been crashing so rapidly that the long-term holders and even some whales are reacting by deploying their assets into exchanges, opening leveraged short positions and lowering their risk by hedging against possible further price declines.

The long-term holders and whales often use this strategy to survive the bear markets without selling their coins on the spot markets. However, this aggressive shorting would create even more selling pressure and further lower prices.

On the other hand, it would also create a possibility for a massive short-squeeze if sufficient demand comes in and the price suddenly reverses to the upside.

The potential short liquidations and profit-taking, which would usually occur at market bottoms and capitulation, would cause a rapid surge in price and could even start a new mid-term bullish phase. Although, with Bitcoin’s recent heavy price action, it may take some time and even more pain before the final capitulation candle can take place.

USDC Shines, While USDT Still Remains Concerned For Traders !

The post USDC Shines, While USDT Still Remains Concerned For Traders ! appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide When compared to its $66 billion rival giant Tether (USDT), Circle’s native stablecoin USD Coin’s growth in the previous two months has been nothing short of amazing. Notably, since May, USDC’s::Listen

How Terra's UST Collapse Impact stablecoins like USDT and USDC!

The post USDC Shines, While USDT Still Remains Concerned For Traders ! appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

When compared to its $66 billion rival giant Tether (USDT), Circle’s native stablecoin USD Coin’s growth in the previous two months has been nothing short of amazing.

Notably, since May, USDC’s market value has increased by 8.27%, peaking on July 2 at $55.9 billion. Contrarily, USDT’s market valuation, now hovering around $66.14 billion, has decreased by more than 19 percent.

Based on the narrowing difference between their market capitalization, USDC has never come close to challenging USDT’s dominance in the stablecoin market.

More specifically, in August 2020, the USDT to USDC market cap ratio exceeded “9”. However, as shown in the table below, it fell to 1.20 in July, the lowest on record.

Since Terra’s $40 billion “algorithmic stablecoin”  failed in May, cryptocurrency investors have become skeptical out of concern that it would also happen to USDT.

That is mainly because there are rumors that Tether’s USDT tokens aren’t fully backed by cash and other conventional assets as it claims.

What’s In Store For USDT

Because of this, short sellers have increased their bets that USDT would soon drop below its $1-peg. According to the Wall Street Journal, these bearish positions might be worth “hundreds of millions” of dollars.

These bets assume that, in the event of a “bank run,” Tether would not be able to convert all of its USDT into dollars. As a result, the peg would be broken as people started selling their stablecoin at a loss.

In times of high market volatility, USDT has a history of deviating from or exceeding its $1 peg; however, this was more noticeable in its earlier years.

For instance, in October 2018, amid rumours that one of its sister companies, crypto exchange Bitfinex—is insolvent, the token’s value fell as low as $0.85 (on Kraken).

Similar circumstances resulted in USDT’s value suddenly falling to as low as $0.97 after the Terra collapse in May. Nevertheless, the stablecoin consistently regained its tie to the dollar.

In contrast, USDC Coin has only twice fallen below the typical $0.99-1 range since its 2018 introduction. During the “Covid crash” in March 2020, it fell to $0.97 before rising to $1 and then falling once more to $0.98 in the same month.

Tether’s chief technical officer, Paolo Ardoino, promised in June that one of the top 12 accounting firms would conduct a complete audit of the company’s reserves. Currently, MHA, an accounting firm, offers quarterly attestations of Tether reserves.

Bitcoin Price Analysis: BTC Recovers to $20K, Was Local Bottom Confirmed?

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