Tag: Prices

Gold Price May Offer Clues About Next Big Bitcoin Move

BITCOIN, Coin Desk
Bitcoin (BTC) traders could get cues from an apparent negative correlation that has developed between bitcoin and gold prices. Gold picked up a strong bid at $1,196 on Nov. 13 and jumped to $1,300 on Jan. 4, possibly due to a sell-off in the weakening U.S. dollar. The greenback was down against most currencies in last two months of 2018 on growing speculation that the Federal Reserve (Fed) could decrease or pause interest rate hikes in 2019. Bitcoin, however, did not benefit from that broad-based sell-off in the dollar. The cryptocurrency instead saw a revived bear market with a convincing move below $6,000 on Nov. 14 – a day after gold found takers around $1,200 per ounce. That price action indicates that the two assets are inversely correlated. Validating that argument is the 90-day corr

Bitcoin Sees Longest Stretch of Price Consolidation Since October

BITCOIN, Coin Desk
Bitcoin (BTC) is witnessing the longest stretch of range-bound price activity in three months. The leading cryptocurrency by market capitalization has been largely restricted to trading between $3,700 and $3,500 since Jan. 11 – the longest stretch at such a narrow range since the end of October. Back then, the market had gone quiet, with prices staying within the $6,500–$6,350 range in the 12 days leading up to Oct. 28. On the following day, BTC dropped to $6,208. After another period of sideways movement, bitcoin fell well below the crucial support level of $6,000 on Nov. 14. The current period of consolidation may also end with a big move to the downside, as BTC reinforced the primary bearish trend – as represented by the downward sloping 10-week moving average – with a 10 percent slide
Bitcoin’s Price Counters the VIX, Confirming It’s Still a Risk Asset

Bitcoin’s Price Counters the VIX, Confirming It’s Still a Risk Asset

BITCOIN, Coin Desk
Evidence is emerging that bitcoin has yet to truly earn its reputation as an “uncorreleated asset.” Case and point, bitcoin’s latest sell-off from $6,000 to nearly $3,000 was accompanied by a surge in the CBOE Volatility Index (VIX). The VIX measures the 30-day forward-looking volatility of the S&P 500 to gauge the market’s fear and risk tolerance, which is why it is commonly referred to as the “fear gauge” for the broader U.S. stock market.  In theory, the VIX should be low when the S&P 500 is in a steady uptrend and should only rise as does fear, causing panic selling and for either smart or weak hands to be shaken out of the market. Bitcoin, being a digital currency and store of value that isn’t the product of a government, is advertised to be unaffected by the perceived fear or
This Former Bitcoin Price Support Is Now Capping Gains

This Former Bitcoin Price Support Is Now Capping Gains

BITCOIN, Coin Desk
Bitcoin’s (BTC) weekly gains were wiped out at the weekend at a key moving average that previously offered support. The leading cryptocurrency by market capitalization jumped to highs above $6,750 on Saturday, having weakened the immediate bearish case with a repeated defense of the psychological support level of $3,500 last week. BTC, however, failed to secure a UTC close above the 21-day MA. More importantly, rejection at that MA hurdle proved costly – BTC fell 3.8 percent to $3,470 yesterday. So, it could be argued that the MA line, which served as strong support in the two weeks leading up to Jan. 10, has now taken on the role of stiff resistance. As of writing, BTC is changing hands at $3,527 on Bitstamp, representing a 4.30 percent drop on a 24-hour basis. Meanwhile, the 21-day MA is
CoinDesk’s Crypto-Economic Data Is Now Accessible on GitHub

CoinDesk’s Crypto-Economic Data Is Now Accessible on GitHub

Coin Desk
Nolan Bauerle is research director at CoinDesk. For more data and insights, visit the CoinDesk Crypto-Economics Explorer.  Starting today, CoinDesk will use GitHub to help crowdsource potential methodology changes and data sources for our Crypto-Economics Explorer (CEX), our comprehensive data tool designed to measure and compare crypto assets.  After we launched the beta version of our tool in November, the clearest critical comment we heard was related to our methodology for calculating developer interest in a blockchain. More precisely, we heard feedback on the decision to only count activity on one GitHub code repository toward each blockchain’s “developer score.”  The critique was that the methodology behind the CEX was insufficient to measure developer interest across each project. A
Bitcoin Price Consolidation May Have Weakened Bear Case

Bitcoin Price Consolidation May Have Weakened Bear Case

BITCOIN, Coin Desk
Bitcoin’s eight-day stretch of consolidation looks to have weakened the prospects of a drop back to December lows near $3,100. The leading cryptocurrency by market value has been restricted to a narrow range of $3,500 to $3,700 since Jan. 11. That range play is somewhat surprising, as BTC had set the stage for a quick slide toward December lows near $3,100 with a 9 percent drop on Jan. 10 – the biggest single-day decline since Nov. 24. Notably, prices fell to $3,500 that day, erasing the hard-fought gains of the preceding two weeks. Despite the sharp bearish reversal, a convincing break below the psychological support of $3,500 has remained elusive for eight days. That could be considered a sign of sellers unwilling to offer the cryptocurrency so low in the bear market. Put simply, the pro
Bitcoin Price Volatility Is Down 98% Year-on-Year

Bitcoin Price Volatility Is Down 98% Year-on-Year

BITCOIN, Coin Desk
Bitcoin price volatility has crashed in the last 12 months as the bear market killed off the speculative frenzy. Daily volatility, the spread between the price high and price low, stood at $61 yesterday – down a hefty 98 percent from the figure of $3,468 observed on Jan. 16, 2018 – according to CoinMarketCap data. Meanwhile, bitcoin’s price is also down 74 percent year-on-year. Generally, with a sharp drop in price, volatility in dollar terms tends to fall in parallel. Notably, volatility was extremely high in percentage terms 12 months ago. The trading range was 26 percent on Jan. 16, 2018, indicating that the crypto market frenzy was at its peak. Volatility, however, subsided as the year progressed: dropping from $973 in the first quarter to $345, $245 and $195, in the following quarters
Will Bitcoin’s Price Extend Its Four-Year January Losing Streak?

Will Bitcoin’s Price Extend Its Four-Year January Losing Streak?

BITCOIN, Coin Desk
Bitcoin (BTC) has reported losses in January for the last four years, and a fifth now looks on the cards. The leading cryptocurrency by market value fell 32 percent, 14.6 percent, 0.10 percent and 26.64 percent in the first month of 2015, 2016, 2017 and 2018, respectively, according to CoinDesk’s Bitcoin Price Index. Notably, the odds are stacked in favor of BTC extending the four-year January losing streak this year. BTC fell 13 percent last week, signaling an end of the corrective bounce from the December low of $3,122. The sell-off reinforced the bearish view put forward by the downward sloping 10-week simple moving average. As a result, a drop to $3,122 in the next couple of weeks cannot be ruled out. That said, the probability of BTC beating the trend this month would rise if the form
Bitcoin Futures Now Trading At Discount to Exchange Prices

Bitcoin Futures Now Trading At Discount to Exchange Prices

BITCOIN, Coin Desk
Signs are emerging that the futures market may not be impressed by bitcoin’s recovery from 15-months lows in December – at press time, the cryptocurrency’s spot price is higher than the futures price. As of writing, the global average or spot price calculated by CoinDesk’s Bitcoin Price Index (BPI) is currently $3,650 – up 16.9 percent from the low of $3,122 reached on December. Meanwhile, futures contracts are trading below the spot price. BTC futures As seen above (CME chart), January futures are reporting a $20 discount (futures price-spot price). Further, contracts expiring in February, March and June are trading at a discount of $30, $40 and $80, respectively. A futures contract is an agreement between two parties to buy or sell a something at a future specified price and date, al
This Price Resistance Level May Hold Key to Bitcoin Bull Market

This Price Resistance Level May Hold Key to Bitcoin Bull Market

BITCOIN, Coin Desk
That bitcoin (BTC) may be closing on a long-term bottom is generally accepted by now. After all, the leading cryptocurrency by market value has dropped by close to 70 percent over the last 13 months. The challenge now is to pick up early signs of a long-term bearish-to-bullish trend change, which may be possible with the help of the 10-week simple moving average (SMA). Acting as resistance, that moving average proved a tough nut to crack in the eight weeks to Nov. 14 – the day BTC reentered the bear market with a big drop below $6,000. Further, BTC has charted bearish-lower highs above the 10-week SMA in the last 13 months. Hence, acceptance above that hurdle could be considered a sign that the process of bearish-to-bullish trend change has begun. As of writing, BTC is trading at $3,630 on