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Bitcoin And Omicron: Is Another Black Swan Brewing?

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bitcoin black swan

Back in March of 2020, those taking position ahead of the Bitcoin halving were blindsided by the Black Thursday market selloff, driven by panic at the onset of the COVID pandemic and subsequent lockdowns.

With the new Omicron strain making headlines, and lockdowns once again considered, could the cryptocurrency market be facing another dangerous macro storm and catastrophic collapse?

Omicron & The Return Of The Black Swan Trend Line

According to Wikipedia, a black swan is “an event that comes as a surprise, has a major effect, and is often inappropriately rationalized after the fact with the benefit of hindsight.”

Black Thursday in March 2020 classifies perfectly as such. COVID came, the market panicked, and Bitcoin collapsed back to $3,800 at the low. It turned out to be a huge overreaction.

Related Reading | Want To Learn Technical Analysis? Read The NewsBTC Trading Course

Despite the “surprise” factor of the event and the fact no one saw COVID coming, technical analysis proves that these black swan events can be predicted to a point. But what if two black swan events were to happen from touching the same trend line. Would these really be considered black swan events?

That’s exactly what’s at risk, given the recent Omicron strain news and related panic, and the fact that Bitcoin price is indeed up against the very trend line that was used to predict Black Thursday’s eventual target to the dollar.

Could another black swan arrive with this trend line?  | Source: BTCUSD on TradingView.com

Why Another Bitcoin Black Thursday Is Unlikely

The chart above shows that Bitcoin price was rejected from the same trend line that prompted the COVID correction. The move was so sharp and intense, a polar opposite rally resulted that took the cryptocurrency to more than $65,000 per coin.

Bitcoin selling off just as severely wouldn’t necessarily be a bad thing, as the bounce from such an event has shown. But despite the dangerous macro landscape and the stock market sinking, the conditions for the top cryptocurrency are very different this time around.

BTCUSD_2021-12-02_16-48-01

The conditions were very different then versus now | Source: BTCUSD on TradingView.com

For one, the arrows depict two rejections from former resistance in 2019, with the second (marked in red) failing to break out of the Ichimoku cloud. That resistance level dated all the way back to the very beginning of the bear market, which is why the Black Thursday rejection was particularly strong. Meanwhile, the current price action more so appears to demonstrate a resistance level being flipped as support.

The blue path outlines an expected Elliott Wave motive wave, with three impulses up and two corrective waves. Per Elliott Wave Theory, wave 1 shows there still life left in an asset, but market participants are reluctant to believe the bull market has begun.

Related Reading | Finding Fibonacci: Is Bitcoin Beginning A “Golden” Recovery?

Because of the remaining bearish sentiment, wave 2 wipes out most of the progress of wave 1, before wave 3 begins. With lows of wave 1 retested at the climax of wave 2, market participants are more confident in a blossoming bull trend, which is why wave 3 tends to be the longest and strongest. EWT refers to this as a wave “extension.”

Wave 4 cannot enter into the path of wave 1 and tend to move sideways. This suggests that it is unlikely to see another sharp correction like what happened on Black Thursday in 2020. Whenever wave 4 officially ends, and whether it has or not is still up for debate, targets of $100,000 per coin remain likely for the peak of wave 5.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from TradingView.com

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Crypto.com (CRO) Restricts Withdrawals For All Users After Succumbing To Hack

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Crypto.com gets hacked

Crypto.com has fallen victim to a hack. The crypto exchange announced this in the early hours of Monday after users complained of suspicious activity on their accounts. It is the first centralized exchange to succumb to a hack for the year 2022 coming out of the year 2021 which was riddled with numerous hacks that saw exchanges and users alike lose billions.

Crypto.com (CRO) Gets Hacked

Users of the Crypto.com exchange began experiencing issues with their accounts. Subsequently, these users realized that their accounts had been hacked and they were missing cryptocurrencies from their balances. In some cases, the hacker had made off with all of the funds in the accounts.

Related Reading | Highlighting Risk: These Crypto Coins Carry The Most Leverage

Crypto.com took to Twitter to address these issues. In response to reports of the hack, the crypto exchange had promptly announced that it was restricting withdrawals for all users on the platform while assuring the community that all of their funds were safe.

The tweet noted that only a small number of users had been affected by the hack. However, users of the platform rolled out en masse to say that this was not so. The number of complaints regarding funds being lost by users in the hack had grown continuously on social media. Most had had a significant amount of crypto stolen and called for the exchange to do something about the attack.

Applying Caution Going Forward

Following news of the hack, Crypto.com had promptly restricted all withdrawals on its platform. Users were unable to carry out any withdrawals and those with pending withdrawals could not complete their transactions. This was done in an effort to prevent the hacker(s) from being able to perform any more withdrawals from the accounts of the affected users.

Related Reading | Crypto Market Is Still In The Early Stages, Says Ric Edelman

The attack is speculated to have occurred after the attackers found a way to bypass the 2FA security measures on the exchange. This has prompted Crypto.com to alert users to reset their 2FA information, as well as having to log back into the platform to regain access to their accounts.

The crypto exchange announced that this update will be rolled out gradually to users. Upon completion, withdrawals will then be enabled and users will be able to send their funds out of the exchange. “We understand this may be an inconvenience, but security comes first,” the exchange said.

CRO price falls following hack | Source: CROUSD on TradingView.com
Chart from TradingView.com

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SkyLaunch Collaborating with Polygon to Join its Ecosystem

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Ethereum Killer Polygon Races to Hit New ATH Soon

SkyLaunch has recently announced that they will be working on a mutually beneficial partnership with Polygon in the quest for achieving future improvements. Further, they mentioned that collaboration with Polygon means adding a new Blockchain to their growth plan. Moving ahead, they also said that Polygon low fees and lightning-fast transactions have made it popular within a short period. Therefore, people who will be choosing Blockchain for their projects will need launchpads too. This will eventually help SkyLaunch in exposure and grow further.

Moreover, there are two key contributors to SkyLaunch’s growth vertical over the years. Besides Binance Smart Chain, another useful platform SkyLaunch depends on is Polygon. The Polygon blockchain is a profitable Ethereum-centric network with high-profit potential and secure connection, offering users a smoother crypto trading experience. After incorporating Polygon into the SkyLaunch launchpad, experts opine that the latter would become one of the most reliable multi-chain launchpads in the future. 

High levels of profits with the collaboration 

Reports show that partnering with Polygon opens the team of the SkyLaunch to multiple project-related benefits as well. This would grant full access to the Polygon ecosystem, allowing SkyLaunch to explore and cement their position well. 

Polygon is one of the most sought-after blockchains in the current period because of its low-cost fees, simple usability, and precision-rich transaction speed. As a result, a lot of crypto projects are turning to this ecosystem to expand their reach and develop.

They want a top-grade launchpad as well to deploy the projects afterwards. Therefore, SkyLaunch expects to develop further through its partnership with Polygon, getting high numbers of projects. 

About SkyLaunch 

SkyLaunch is one of the most useful IDO-centric launchpad platforms available. It promises the users total timeline support with their projects and offers multiple proprietary tools to the project holders. In addition, SkyLaunch is unique in its operation and holds the support of a proprietary guide for introducing different upgraded versions into crypto-trading through blockchains.

To note, SkyLaunch does not keep several restrictions for the users. This helps traders complete their transactions, build their IDO projects, and deploy them across multiple blockchains without any complications. 

There is a standardised accelerator program with pre-IDO services that work with an industry-leading independent governance council. There is a post-IDO network for alliance support available as well. Traders creating and growing their blockchain projects benefit highly through SkyLaunch support. 

About Polygon

Polygon is a framework and valuable protocol for linking and developing Ethereum-based blockchain networks. It is the first platform to focus on infrastructure development and scaling of Ethereum. Furthermore, the blockchain is user-friendly, highly structured, and includes the Polygon SDK. Therefore, this framework is helpful for different types of app development initiatives. 

Not only does Polygon work as a blockchain in its own right, but users can also create or link several blockchains through it. As a result, it has some similarities with other blockchain solutions like Polkadot and Avalanche. 

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Ethereum Ranks Second as the Most Owned Crypto in UK, Bitcoin First!

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Ethereum Ranked Second as the Most Owned Crypto in UK, Bitcoin First!
  • It is estimated that 32.9 percent of UK crypto owners possess Ethereum.
  • 2,013 internet users in the United Kingdom were polled.

Late in 2021, the cryptocurrency market was very volatile and experienced a drastic shift from extremes in the bigger market. Crypto users in the United Kingdom seemed to be taking it slowly throughout the recent sell-offs and feverish market periods. With 2,013 internet users in the United Kingdom being polled, Finder.com came up with various findings.

The UK’s crypto community appears to have rekindled its enthusiasm for Ethereum, despite a lack of interest and acceptance in other cryptocurrencies. It is estimated that 32.9 percent of UK crypto owners possess Ethereum, putting it in the second position in terms of crypto ownership after only Bitcoin.

Read More: Bitcoin Price Prediction

Read More: Ethereum Price Prediction

Crypto Adoption Rate At a Mere 1%

There was an increase in the percentage of people owning cryptocurrencies from 11.2% to 15.5% last year, although, in certain countries, this rise was stifled. When comparing the two polls, the United Kingdom had one of the fewest increases in crypto holdings, moving from 5.2% to 6.1%, with a modest 1% increase in that time frame.

UK crypto ownership is much lower than the worldwide average of 15.5%, according to an ongoing poll of Internet users in 27 nations. With only 17 percent of respondents saying they believe crypto is an excellent investment, Britain was rated 23rd out of 23 nations in November 2021 for favorable opinions towards cryptocurrencies.

Despite the glimmering figures on ETH, Bitcoin remains the most popular cryptocurrency, owned by 42.8% of those who own digital assets. Third place went to Ripple, with 17.4 percent, followed by Solana with 15%, while Dogecoin only had a 1% gain.

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