Bitcoin has remained ever up and down on the index. Volatility is the sole of the cryptocurrency.
This week, Bitcoin has reached the 40K mark again but some traders still possess some fear. For Bitcoin investors, fear and greed are like a messiah. People are always selling and there are those who are also buying.
Some analysts are saying that the cryptocurrency may see more “choppy” price action in the coming days or months.
One thing that some traders fear is what is known as directionless trading. Contracting price actions which has been happening in recent time could worsen things for the industry.
April 2022 has been prophesied to be a bullish month for Bitcoin traders.
The U.S. Senator from Wyoming, Cynthia Lummis, recently championed Bitcoin as a future currency in an interview. The interview started with the question, “Is Bitcoin a currency or commodity?” Senator Lummis quickly and confidently responded:
“I own [Bitcoin], a commodity. I believe it will be currency someday, but at this point of its existence, it’s a commodity just like cattle, wheat, and gold. At some point, it’s going to become a means of payment…and it’s going to happen really fast.”
To explain her confidence, Lummis referred to the launch of the Bitcoin payment protocol, Lightning Network. She noted that Bitcoin came out of a whitepaper that didn’t include means of payment. Lightning Network filled the gap by providing a payment method for Bitcoin which should lead to further innovation in the payment space.
There Will Be More Than 1 Billion Crypto Owners Worldwide This Year, Report Shows
Crypto.com released its “Crypto Market Sizing” report last week showing an analysis of cryptocurrency adoption worldwide.
The global crypto population increased by 178% in 2021, rising from 106 million in January to 295 million in December, the analysis shows, elaborating:
Bloodbath: 185,450 crypto investors lose all their funds as Bitcoin drops to $38K
Bitcoin plummeted by more than 7% in the last 24 hours, and was trading at $38,5K in the early hours of Friday.
Experts had warned previously that bitcoin might fall below $40K due to concerns of pending interest rates hike and crypto ban proposal set in place by the Russians.
Cryptocurrency theft has grown to $3.2bn in 2021 as the report from China says.
A blockchain data company said this was a 516 per cent increase compared to last year.
The company also said that about $2.2bn of these funds was stolen from decentralised finance platforms.
“Roughly $2.2bn of those funds – 72 per cent of the 2021 total – were stolen from DeFi protocols. The increase in DeFi-related thefts represents the acceleration of a trend we identified in last year’s Crypto Crime report.”
“That alone represented a 335 per cent increase over the total stolen from DeFi platforms in 2019. In 2021, that figure rose another 1,330 per cent. In other words, as DeFi has continued to grow, so too has its issue with stolen funds,” it added.
By the time 2022 is in half, the problem could have grown worse.
Xoxoday, India’s leader in the Rewards & Incentives industry announces its partnership with Azteco, a London/California based startup aimed at being the easiest and fastest way for consumers to buy Bitcoin. Through its operations in Bangalore, Delhi, Mumbai, California, Dublin, Dubai and Singapore, Xoxoday aims to bring Azteco’s Vouchers to over 760 million mobile users, leveraging those devices to further push Bitcoin into the mainstream. The opportunity “Consumer Bitcoin” presents is unprecedented in scale and beneficial global impact; even greater than the impact Uber and WhatsApp have had on the way people work, spend and use money.
By partnering with Azteco, Xoxoday leverages the already enormous Gift Card and Top Up sectors, contextualizing Bitcoin into something anyone can understand and use, via partnerships with Consumer grade Bitcoin wallets like Pine and Bluewallet.
Akin Fernandez, Founder of Azteco said, “We are very excited about our integration with Xoxoday. Not only does Xoxoday have a global reach and access to an astronomically large market of sophisticated and well-equipped users in India, they also represent a precisely honed market fit with accompanying world-class infrastructure to deliver our Vouchers seamlessly and instantly. In the new category of “Consumer Bitcoin”, companies like Xoxoday will be key in distributing Bitcoin to users in a form that doesn’t require any training or understanding in advance. This is the only way Bitcoin can reach billions of people, and companies like Xoxoday, Azteco and its wallet partners are key to bringing the astonishing benefits of Bitcoin to a mass market.”
“2.5 million+ current users of Xoxoday’s rewards Catalog – for employee, marketing and sales incentives – Plum, are now empowered to consume the benefits of the ‘Consumer Bitcon’ market. Through our partnership with Azteco we are very pleased to facilitate this and build on our wallet rewards category,” said Sumit Khandelwal, CEO, Xoxoday.
For media inquiries, please contact Akin Fernandez at (714)-947-3425 or press(at)azte(dot)co
About Azteco Azteco is the world’s easiest to use Bitcoin service. Consumers purchase Azteco Vouchers identical to the globally familiar paper vouchers sold by O2, T-Mobile, EE, MTN and all other mobile phone networks. Azteco Voucher codes are redeemable directly to the mobile phones of consumers, working exactly the same way that top-up vouchers do to add call time to Pay-as-You-Go mobile phones.
About Xoxoday Xoxoday is a one-of-a-kind, all-in-one Reward & Incentive Distribution Technology for employees, customers, sales and channel partners, as well as customer support agencies. With Xoxoday Plum, one can redeem from a global catalog comprising 20,000+ options spread across gift cards, prepaid cards, perks, experiences, donations, financial benefits and many more categories. For more information, visit: http://www.xoxoday.com
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Bitcoin, gold and other assets had been rather quiet in the months following the March sell-off. That was after the novel coronavirus came through, sending a ripple through all sorts of markets.
The economy — both globally and here in the U.S. — saw major disruptions. Oil futures went negative at one point, while Treasuries swooned, and gold and bitcoin prices tanked.
Despite record amounts of stimulus, again domestically and abroad, gold did well but it didn’t explode higher. Now though, the precious metals — including palladium and silver — are jumping.
Bitcoin apparently got the memo and joined the parade. The cryptocurrency is up more than 21% in the past eight trading sessions. It’s up a similar amount over the past month. In comparison, silver is up 35% over the past month, while gold is up about 10%.
Is this just the start?
Trading Bitcoin
Chart of bitcoin prices
In reviewing the one-year daily chart, the most glaring chunk of price action is the fall from $10,500 to $3,850 earlier this year. That 63% stumble was almost double the fall we saw in the S&P 500 and far worse than the 15% decline in gold.
That said, the rebound has been impressive. Earlier this month, I was looking for a breakout in bitcoin. It was bobbing along $9,000 but had broken out over downtrend resistance (blue line). The cryptocurrency also reclaimed its 20-day and 50-day moving averages.
At that point, traders had a solid risk/reward in bitcoin, particularly with upside targets of $10,000 and $10,500. The former had been resistance and remains psychologically relevant, while the latter comes into play near the 2020 high.
I wrote that, “above $10,000 and stiff resistance between $10,350 and $10,500 is possible, before an even larger breakout could begin.” Bitcoin is over $11,000 currently and is working on that larger breakout.
From here, I now want to see that prior resistance zone between $10,350 and $10,500 act as support. If that’s the case, it will be another bullish development. Below $10,500 puts $10,000 back in play. If that fails as support, the setup loses virtually all momentum.
On the upside, let’s see if the cryptocurrency can take out Monday’s high at $11,417. Above this mark puts the 123.6% extension in play at $12,070. Just above is the current 52-week high from Aug. 6 at $12,325 — although that mark will not last long as 52-week high, as we approach that date now.
Over this mark puts the 138.2% extension in play at $13,041.
Cryptocurrency Drivers
Paul Tudor Jones is a legendary Wall Street vet. A few months ago, he said he was looking for the “fastest horse” when looking to place his inflation bet. That horse, he determined, was bitcoin.
He said that it reminded him of the gold trade from the 1970s and believes that the cryptocurrency will do well as an inflation hedge. Whether it’s gold, bitcoin or something else, what is the motivation?
For some, they may see bitcoin as the way of the future. It might be and that’s a possible catalyst. Currently though, others are looking at it as a play on money-printing. With central banks around the world pumping stimulus into the system, non-paper assets are flying.
“It has happened globally with such speed that even a market veteran like myself was left speechless…We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”
Bitcoin looks set to register its best July price performance for eight years and confirm a major bullish breakout in the process.
Bitcoin is trading near $11,190 at press time and is up nearly 22% this month, according to data from CoinDesk’s Bitcoin Price index.
The cryptocurrency now needs to hold above $11,145 until Friday’s close (in UTC time) to confirm the biggest July gain (at 22%) since 2012, when prices rallied by 40%.
If bitcoin closes below $11,050, the resulting monthly gain would be less than the 21% rise seen in July 2018.
July’s double-digit monthly gain marks an end of a two-month-long price consolidation in the range of $9,000-$10,000.
The cryptocurrency sprang into action amid the U.S. dollar’s broad-based sell-off on the foreign exchange market and gold’s rally to record highs above $1,950 per ounce.
“Bitcoin stands out this year against a backdrop of massive stimulus measures from central banks and a failing financial system,” Paolo Ardoino, CTO of cryptocurrency exchange Bitfinex, told CoinDesk.
The bullish trend looks strong with the cryptocurrency showing few signs of stress, despite increased miner sales observed earlier this week.
Poolin, the biggest mining pool globally, transferred 435 bitcoin to exchanges on Wednesday, the biggest single-day outflow since May 3, according to Glassnode.
Technical charts also paint a bullish picture.
The monthly chart shows an upside break of a 2.5-year-long descending triangle.
The breakout has exposed resistance located at $13,880 (June 2019 high).
“Bitcoin’s break above $10,500 marks a significant change in the direction of the market,” popular analyst Lark Davis tweeted on Wednesday.
That possibility of a minor drop can’t be ruled out, as bitcoin is looking overbought on the relative strength index.
