Your Cryptocurrency Newsletter for 11 November,2020

If you are interested in cryptocurrencies, this newsletter is for you. [img]  [Learn more about RevenueStripe...](   [Learn more about RevenueStripe...]( [img]( [FeedBinary Newsletter]( [Bitcoin Price Outlook Still Bullish Despite Drop From COVID-19 Vaccine News]( Following highly volatile Bitcoin price action in the aftermath of its vaccine-induced drop, crypto traders explain where BTC is headed next.The price of Bitcoin (BTC) has seen extreme volatility in the past 24 hours. After the Dow Jones Industrial Average abruptly rose by more than 800 points, BTC plunged in tandem with gold. Within five hours of achieving a four-day peak at $15,840, the dominant cryptocurrency abruptly plummeted 6.5%. Following the correction of BTC, analysts and traders remain divided on its near-future prospects.The short-term pullback of Bitcoin, which happened within several hours, was beneficial for BTC for three key reasons. First, it neutralized the derivatives market, which is no longer overheated. Second, it led to a healthy rejection of the $16,000 resistance level. Third, it showed that even after a major price drop, overall buyer demand remains intact. Pfizer’s vaccine neutralized the market On Nov. 9, Bitcoin saw a sharp drop from $15,840 to $14,805, which occurred shortly after Pfizer announced its optimistic COVID-19 drug trial results, having tested nearly 44,000 individuals and demonstrated 90% effectiveness. Subsequent to the announcement by Pfizer, major U.S. stock market indices rallied by around 3%. The highly anticipated breakthrough in the vaccine’s development caused Bitcoin and gold to rapidly drop. Capital flew out of safe-haven assets and stores of value to risk-on assets, like stocks, in a short period. Consequently, gold recorded an intraday 4.5% drop, which is rare for an asset of its size. It sparked the appetite for stocks and other risk-on assets, which gave Bitcoin whales a narrative to sell. When Bitcoin initially started dropping, whale inflows into cryptocurrency exchanges began to increase. This meant that high-net-worth investors holding large amounts of BTC were selling. Since Bitcoin recovered back above $15,300 within six hours, whales likely bought back at a lower price. Based on the trend, it’s probable that whales used the narrative of the vaccine-induced correction to sell at resistance and buy at a lower price. Speaking to Cointelegraph, Bitcoin technical analyst Eric Thies said that Bitcoin has essentially been fluctuating between two levels: the $14,500 support and $16,000 resistance. Bitcoin rejected heavily as it approached $16,000, indicating that there are large sell orders present at the $16,000 resistance area. If BTC sees some consolidation under $16,000, Thies noted that it would be beneficial for buyers:We’ve seen Bitcoin breaking previous 2019 resistances for almost two weeks now, and with price rapidly fluctuating between $14.5K and $16K, bulls are in need of a consolidation period before we rapidly accelerate towards hitting the 2017 high of $19,500. The short-term drop of Bitcoin was also critical to reset the futures market. Prior to the drop, the funding rate of BTC futures contracts across major exchanges was well over the average 0.01%. This meant that the vast majority of the market was heavily longing or buying Bitcoin. After the correction, the funding rate returned back to 0.01%, showing that the futures market is no longer overheated. What on-chain data points say According to Ki Young Ju, CEO of CryptoQuant, the long-term prospect of Bitcoin remains positive. Ki told Cointelegraph that the exchange inflow mean shows the Bitcoin market is “still in a strong buy zone.” The exchange inflows show the amount of BTC that traders and investors are transferring to exchanges. When this figure remains low, it typically indicates lower selling pressure on exchanges. However, Ki said that after Bitcoin’s drop, BTC inflows from whales have been spotted. While this is an ostensibly bearish trend, the analyst noted that whales tend to sell BTC regularly during bull trends. Since whales seek liquidity, they prefer to sell when the price is going up to ensure there is enough buyer demand in the market. Although the trend could be bearish, depending on one’s perception, Ki said it’s unlikely to be a market sentiment reversal, for now:After the price plunge, there have been subsequent exchange inflows by whales for two reasons. First, in the bull market: To sell it at the local high. They sell when the retail investors are active on exchanges. Second, in the bear market: To sell it if the unusual fear-sell happens. I would say we’re in the number 1 case. We still have a room till when retail investors are active on exchanges. Large dips to be expected during new record-high bull runs Analysts and traders are generally echoing a similar stance in that large dips during Bitcoin bull trends are normal. Thies explained that he expects Bitcoin to achieve a new all-time high at $20,000 in January 2021 or February 2021. Still, Thies emphasized that large dips have always occurred during previous bull cycles. Even during the 2017 rally, when BTC neared $20,000, BTC saw several short-term 20%–30% drops. If Bitcoin continues to consolidate with decent momentum, Thies said buyers are safe from a major drop. Unless BTC sees a lower low formation, which occurs when BTC drops below the most recent bottom, the technical analyst said BTC could avoid a deep correction:At this point, I see BTC hitting $20K in January or February, which will mark the actual start of the new ‘crypto bull run’, BUT, expect a dip to as low as $12.8K at some point prior. Bulls will benefit from any consolidation or periods like this, as it keeps the market from over buying too early. Bulls are technically ok until we see a lower low, which at this point would be near even $11.5K but that’s a low probability of happening it seems. The bull case for Bitcoin Various on-chain data metrics show that both miners and whales have been selling BTC. The Miners’ Position Index on CryptoQuant hit a yearly high on Nov. 5, indicating rising selling pressure from miners. Yet, the price of Bitcoin has stayed relatively stable above $15,000 throughout the past week, apart from several days. This trend shows that new buyer demand is offsetting the selling pressure coming from whales and miners. According to analysts at Santiment, around $365 million worth of Tether (USDT) has moved to exchanges daily in the last seven days. Since most of the sidelined capital within the crypto market is stored in stablecoins, it suggests that new buyers are entering the market. In the short term, however, one concerning metric that could cause Bitcoin to consolidate for longer is the relative unrealized profit/loss indicator. Philip Swift, the creator of educational platform Look Into Bitcoin, said BTC is hovering in the “greed” zone on the indicator, which, basically, measures how much unrealized profit investors currently hold. [Read Full News]( The post [Bitcoin Price Outlook Still Bullish Despite Drop From COVID-19 Vaccine News]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Bitcoin is Peerless Thanks to Early Distribution, CoinMetrics Analysts Argue]( Bitcoin’s experimental launch contributed to its dispersion among the masses.Thousands of different cryptocurrencies have arisen in the since Bitcoin’s (BTC) 2009 genesis block. Even though newer assets come with different technology and new bells and whistles, Bitcoin still has an upper hand in a key category, according to a November report from crypto data firm Coin Metrics. Due to its relatively older framework, people sometimes compare Bitcoin to early, outdated versions of other technological innovations, such as dial-up internet, the report explains: Too often, these are part of deliberate marketing strategies pushed by proponents of emerging cryptoassets that reportedly succeed where Bitcoin has failed. Tragically, newcomers confronted by a strictly technological comparison framework are ultimately pushed to the margins, especially as debates turn hyper-technical. Technological ability is important. Cryptocurrencies, with their underlying blockchains and ecosystems, however, also serve as forms of money or value in addition to their technological undergirding. Therefore, asset distribution plays a key role in the equation, the report notes. Cryptocurrencies have visited countless headlines over the last decade, especially in 2017, when many alternative crypto assets posted tremendous gains for holders. Many people and teams have produced their own digital assets, some of which compete against Bitcoin’s value proposition. When Bitcoin became a more well-known name, however, organic asset growth became difficult. Once people saw viability for new assets, what stopped them from allocating different amounts of their created asset to certain groups, including specific friends or investors? Essentially, since some type of financial worth is expected at the start of any freshly created asset now, such new assets lack even distribution among people. Coin Metrics’ report peers into centralization seen in cryptocurrency holdings via data from those assets’ respective blockchains. “Cronyism, amongst other unfair supply distribution models, inescapably result in incredibly centralized monetary bases,” the report explains. Through on-chain data, we can identify ownership structures antithetical to Bitcoin’s and quantify the degree of wealth centralization within their digital economies,” the report adds. Essentially, Bitcoin started as an experiment unlike anything before its time. Very few people understood how the asset worked at its outset. “There wasn’t even an exchange rate for the earliest of adopters to begin to fathom valuing their Bitcoins,” Coin Metrics explained: Coupled with the aforementioned technical complexity, the results of early experiments on Bitcoin were disastrous: there is an exorbitant amount of BTC that is believed to have been permanently lost during that period. Transactors, after all, treated Bitcoin as it was back then: a curious experiment of digital monopoly money. Through charts and examples, the report explains Bitcoin’s early journey, which yielded vast coin distribution. Mining activities have also impacted the asset’s dispersion. The data in the report, however, relies heavily on crypto wallet address analysis. Participants sometimes use a number of wallets and addresses, so accuracy of the results remains questionable. Crypto analyst, trader and YouTuber Tone Vays has also expressed similar points in the past about Bitcoin’s decentralization. [Read Full News]( The post [Bitcoin is Peerless Thanks to Early Distribution, CoinMetrics Analysts Argue]( first appeared on [Feed Binary](. [Read Full Story]( ------------------ You Might Like     [Learn more about RevenueStripe...]( ------------------ [Sideways Bitcoin Price Allows DeFi, Ethereum, and Altcoins to Rally Higher]( Ethereum, DeFi tokens, and altcoins capitalized on Bitcoin’s consolidation by rallying strongly in the past 48-hours.For the past two days, Bitcoin price has traded within the $14,800 to $15,500 range but the top-digital asset struggled to flip $15,500 to support. A positive is BTC continues to make higher lows and at the time of writing the price is trying to break from the range but still encountering resistance at $15,500.While BTC price has bounced back and forth, altcoins and select DeFi tokens capitalized on the consolidation phase and turned bullish. As Messari pointed out earlier today in a tweet, DeFi tokens like Yearn Finance (YFI), AAVE, Balancer, and UNI are all up by double digits. Most notably, YFI has gained roughly 160% after bottoming at $7,444 on Nov. 5 and in the past two days, AAVE went on an absolute tear as the token rallied 175% from $25.87 to $70.91.Aside from these tokens, a handful of smaller cap tokens on decentralized exchanges are also racking up gains, and data from Dune Analytics signals that investors are beginning to become more active in the DeFi space again. As DEX volumes increase so do the number of daily active users and today the sector reached a new record as DeFi Pulse noted that the total value locked in DEX platforms surged to $12.87 billion. While it is probably too early to call for an altseason, Ether (ETH) has turned bullish again and within the last 3-hours the altcoin broke through its pennant structure and rallied to $466.60.Analysts have also noted that the ETH/BTC pair broke from its downtrend and is currently climbing higher toward the 0.32323 sats resistance. Historically, altcoins tend to rally when Bitcoin price is sideways and Ether’s strengthening fundamentals could be a sign that DeFi and altcoins may be on the verge of a trend change.For the short-term, traders will be watching to see if BTC can turn the $15,500 to $16,000 level to support at this is likely to pull a few bullish altcoins higher. Alternatively, if BTC price remains sideways over the coming days, there could be a continued advance from the top DeFi tokens and a handful of altcoins. [Read Full News]( The post [Sideways Bitcoin Price Allows DeFi, Ethereum, and Altcoins to Rally Higher]( first appeared on [Feed Binary](. 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