Following a major price decline in Bitcoin (BTC), market sentiment dropped back to strong levels of fear, indicating that investors are becoming increasingly cautious and risk-averse. Despite this trend, on-chain data analytics provider CryptoQuant has revealed a significant increase in BTC buying momentum, resulting in the Bitcoin balances on various exchanges dropping to six-year lows. Related Reading: Injective (INJ) Down 20% As Market Retracement Forces Sell-Off Bitcoin Reserve On Exchanges Sees Sharp Plunge With ongoing market volatility and the recent decline in Bitcoin, on-chain data has identified a significant shift in the cryptocurrency’s market activity. CryptoQuant’s data has revealed a substantial decline in the total amount of Bitcoin held by various Centralized Exchanges (CEXs) in the market. As of October 2, the Bitcoin balance of centralized exchanges, according to Coinglass, sat at 2.34 million, marking the lowest number in six years. This sharp decline contrasts with the 3.05 million Bitcoin held on exchanges in January this year, highlighting a significant reduction in available supply in just a few months. Typically a low Bitcoin balance on centralized exchanges could be an indication of an impending price appreciation, as fewer BTC available on these platforms can create upward pressure on its price due to the limited supply. The reduction in Bitcoin reserves could also be signaling a shift in investor sentiment from selling to accumulating. Following Bitcoin’s price drop to around $60,000, various exchanges experienced mass withdrawals from investors. In one of its QuickTake blogs, CryptoQuant described this large-scale withdrawal as “the largest outflow of Bitcoin from exchanges since November 2022.” This development also follows the recent increase in Bitcoin accumulation by whales and a rise in the demand for Spot Bitcoin Exchange Traded Funds (ETFs). Additional information from CryptoQuant reveals that institutional investors moved from net selling 5,000 BTC on September 2 to buying 7,000 BTC by the end of the month. This represents the highest daily purchase of Spot Bitcoin ETFs since July 21. #Bitcoin demand from US spot ETFs is rising. They went from net selling 5K $BTC on Sept 2 to buying 7K BTC at September’s end—the highest since July 21. In Q1 2024, spot ETFs bought nearly 9K #BTC daily, boosting prices to new highs. If this trend continues, prices may rise… pic.twitter.com/6EQ9JXUzdw — CryptoQuant.com (@cryptoquant_com) October 4, 2024 Moreover, in the first quarter of 2024, Spot ETFs were reportedly buying nearly 9,000 BTC daily, boosting prices to new levels. CryptoQuant also disclosed that if this increase in demand continues, the price of Bitcoin may appreciate further. Analyst Stays Bullish On BTC, Predicts $100,000 Surge A popular crypto analyst, known as ‘The Bitcoin Therapist’ on X (formerly Twitter) has uncovered a massive bull flag in Bitcoin’s price chart. The analyst revealed that this bull flag had formed over the last seven months, signaling a potential for a price increase in the future. Related Reading: Market Signals Hint At Bitcoin’s Potential Fall To $52,000—Analyst Sharing a video representation of his Bitcoin chart analysis, the analyst disclosed that if the price of BTC can break above the $66,000 resistance level, it could skyrocket to new all-time highs around $80,000 to $90,000. He also expressed a strong bullish sentiment on Bitcoin’s future price, predicting an even higher price surge to $100,000. Featured image from CNN, chart from TradingView
Dogecoin's move above the macro falling wedge trendline might mean that a rally is next.
Summary BITO offers exposure to Bitcoin through futures contracts, providing ease of access and significant monthly distributions despite tracking errors and high volatility. BITO is down significantly since my last article, but I remain bullish, albeit for different reasons. Technical indicators suggest a potential end to BITO's downtrend, with bullish seasonality from October to February historically supporting Bitcoin price increases. BITO is a high-risk, high-reward investment suitable for those bullish on Bitcoin, offering potential income and brokerage account accessibility. About six months ago, I called the ProShares Bitcoin ETF ( BITO ) a strong buy ahead of the Bitcoin halving that would take place a couple of weeks later. As it turns out, the post-halving run up in Bitcoin prices I was looking for didn’t materialize. Indeed, Bitcoin has been consolidating for months now, frustrating bulls at every rally attempt. That has kept a lid on the price of BITO, obviously, but as we reexamine it now, I’m not so sure price will be held down much longer. Obviously, I said BITO was a buy at $31, and we’re now at $17. That’s not amazing. However, in the intervening time, BITO has declared and paid $9.84 in distributions per share. Putting that context in makes the 44% decline since my article a true decline of about 17%. Still not great, but much better. It also highlights a key component of BITO, which we’ll cover below. At any rate, I think seasonality makes BITO a buy here, along with an improving technical picture that may just portend the end of the current downtrend. A refresher on BITO I covered the composition of BITO in depth in the linked article from April, so I won’t go through everything again. However, a brief primer on BITO is that it’s an ETF that owns Bitcoin futures, but not actual Bitcoin. Fund website We can see there’s no multi-month strategy as we see with some commodity ETFs; BITO owns a single contract, which happens to be the October 25 th , 2024 expiry (in addition to a nominal amount of index swaps). Basically, this fund owns a huge amount of Bitcoin futures contracts, so its correlation to spot Bitcoin pricing is good, but not perfect. StockCharts.com We can see the 50-day correlation to Bitcoin spot prices is 0.83, so it’s far from perfect. But BITO offers the ease of owning Bitcoin through a normal brokerage account, as well as distributions each month. For that, you are “paying” for a small amount of tracking error. If that sort of thing bothers you, BITO isn’t for you. In the context of the benefits of BITO against trying to own actual Bitcoin, it may be worth it for some investors. Downtrend ending? That’s the key question here. The pennant I pointed out in April ultimately failed, as the ETF did not break out to new highs. The pennant failed in mid-April, ushering in what has become a protracted downtrend. So the key question then becomes, how do we know the downtrend has ended? StockCharts.com The series of lower highs is obviously the key indicator of a downtrend, and it won’t be complete until we start getting higher highs. I will say that from the August low, we’ve seen support hold in a mini uptrend. The ETF is now in excess of the major moving averages, and the PPO has crested the centerline. These are good signs, but we have to have confirmation through higher highs. The RSI is also still not confirming the downtrend having ended. During consolidation or bearish phases, the 14-day RSI rarely crests 60. You can see during this past six months, there have been at least eight attempts for the RSI to move over 60, and all eight have failed. Seeing a reading of 65+ would be a great indicator a new rally has started. Another point for the bulls is that seasonality is outstanding this time of year. This is a decade’s worth of data on Bitcoin's seasonality, and the period from October to February is tremendously bullish. StockCharts.com October to February, a period of five months, has averaged 48% absolute gains. To be clear, I’m not saying Bitcoin is going to go up 48% in the next five months, but I am saying that betting against Bitcoin during this period is a tough trade to make on the evidence above. Risks and distributions Obviously, a fund that tracks Bitcoin is one that is going to have a lot of risk, and BITO is no different. Seeking Alpha It achieves a risk grade of F via Seeking Alpha’s metrics, as all relevant metrics receive poor scores. Annualized volatility, for example, is more than four times that of the S&P 500. It’s obviously extremely concentrated as well, given it tracks a single instrument. Point being, if you are risk-averse, BITO is not for you. If you are bullish on Bitcoin pricing, it’s one way to gain exposure, but positions should be sized prudently given the inherent risk here. The other very interesting thing here are the distributions the fund pays are extremely significant. Seeking Alpha I mentioned the distributions in the introduction, and you can see just how big they’ve been this year. The $10.93 per share that’s been paid is equal to 62% of the current fund price. You can use such distributions as monthly income, or you can reinvest. But the point being that you cannot talk about BITO without talking about distributions. You can read about how BITO generates funds for its distributions but basically, the gains made by the fund on futures contracts or swaps get turned into net income, which is then distributed. Given that, the distribution varies widely from month to month, and in some months, there may be no distribution at all. For now, BITO is paying huge monthly distributions. The bottom line BITO is obviously a high-risk, high-reward situation as it pertains to gaining exposure to Bitcoin. The OG alt-coin is volatile on its own, and BITO introduces additional risk through tracking error. However, gaining access to Bitcoin in a general brokerage account, as well as the potential income it generates makes up for that, in my view. You may disagree, and that would mean BITO simply isn’t for you. However, with bullish seasonality in the coming months, as well as early signs of technical improvement on the price chart, I’m sticking with my bullish call on BITO.
Having completed the main quests of Season 1, Regina returns to the captivating world of Spellborne to tackle the latest side quests. What ensues is an intense blend of strategy, reflex challenges, and immersive world-building. Last week’s quick recap In Heroes of Mavia, players build and defend military bases while battling opponents in a strategy-driven
On October 6, COINOTAG reported that Vitalik Buterin, the co-founder of Ethereum, has made a significant contribution of 100 ETH, approximately valued at $240,000, to support the legal defense fund
Macro economic analyst Raoul Pal just issued a dire warning to investors who are sitting on the sidelines. In a new YouTube video, the founder of Real Vision and Global Macro Investor says he believes fears of recession and rising inflation are way off the mark. Pal says governments are beginning to inject liquidity at The post You Will Go To The Poorhouse If You Listen To Doomsdayers, Warns Macro Millionaire Raoul Pal in Alert To Investors appeared first on The Daily Hodl .
POPCAT has achieved a remarkable milestone by surging past its all-time high of $1.0094, igniting excitement among traders and investors alike. This breakout signals a powerful bullish momentum, prompting a re-evaluation of the asset’s potential for further gains. As the market reacts to this significant price movement, understanding the underlying technical factors and market dynamics is crucial for forecasting future price action. In this technical breakdown, we will analyze the recent surge of POPCAT past its previous all-time high of $1.0094, focusing on the technical indicators and market conditions that have contributed to this breakout. By examining key support and resistance levels, as well as the potential for a continued bullish trajectory, we will assess the implications of this price action for traders and investors. Additionally, the article will explore potential scenarios for POPCAT’s price movement, providing insights into what to expect in the coming days and how market sentiment may influence future trends. Analyzing Technical Indicators After New Peak On the 4-hour chart, POPCAT has demonstrated impressive bullish momentum, breaking above both the 100-day Simple Moving Average (SMA) and its previous all-time high of $1.0094. Reaching a new all-time high marks a critical milestone for the meme coin, as it validates the positive trend and opens the door for potential new highs. An analysis of the 4-hour Relative Strength Index (RSI) reveals a renewed upward potential, as the RSI has climbed back to 68% after dipping to 45%. This upward shift indicates increasing buying pressure. If the RSI continues on this trajectory, it could signal more upside movements for POPCAT, paving the way for new highs, and reinforcing the bullish trend. Related Reading: POPCAT Jumps 20% As Whales Load Their Bags, Is A ‘Cat Season’ Ahead? Furthermore, the meme coin has fully positioned itself above the daily 100-day SMA, indicating a strong positive pressure after surpassing its all-time high of $1.0094. As the price breaks through previous resistance levels, it attracts more buyers, enhancing the likelihood of a sustained uptick and fortifying the overall optimistic outlook for POPCAT in the near term. Also, the RSI on the daily chart is currently at 74%, having previously dropped to 59%. An elevated RSI level implies that POPCAT is in overbought territory, reflecting strong buying pressure and heightened enthusiasm in the market. While such high readings may signal potential exhaustion in upbeat momentum, the lack of immediate indications for a pullback shows that bullish sentiment remains strong. Support And Resistance Levels: Navigating The New Terrain For POPCAT Support Levels: The immediate support level to watch is the $1.0094 mark, which may act as a psychological level for buyers. Should it fall below this range, the next significant support could be found around the $0.80 mark, serving as a strong base for possible rebounds. Related Reading: Analyst Warns Of A POPCAT Correction Following 230% Surge Resistance Levels: On the upside, the next resistance level can be anticipated at around $1.5, where sellers may emerge to take profits. If POPCAT manages to breach this level, it could lay the foundation for further gains, potentially targeting $2 and beyond. Featured image from YouTube, chart from Tradingview.com
The "LEGO Coin" token appeared on the toy manufacturer's homepage for roughly 75 minutes before being taken down, onlookers said.
Memecoin's latest surge and upside potential could be key for its short term.
Pepe October could turn early investors into multi-millionaires, like Shiba Inu (SHIB) and Dogecoin (DOGE) did. Pepe October (PEPEOCTO), a new Solana memecoin that was launched today, is set to explode over 18,000% in price in the coming days. This is because PEPEOCTO is set to soon be listed on numerous crypto exchanges, according to reports. This will give the Solana memecoin exposure to millions of additional investors, who will pour funds into the coin and drive its price up. Currently, Pepe October can only be purchased via Solana decentralized exchanges, like Jup.ag and Raydium.io, and early investors stand to