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Analyst Says Bitcoin Could Plummet 30% Before Upward Trends Starts

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The crypto market has recorded massive losses since May 2022. After the Federal Reserve announced and kicked off interest rate hikes, prices tanked due to selling pressure. Many crypto investors and operators of diverse solutions have faced different crises from market moves. 

But it seems the end is not near yet. Even as the Merge date has finally come, analysts predict a price plunge for Bitcoin. Going by past market moves, a fall in BTC price causes altcoins to plummet and vice versa. So, this analysis is not what investors expect. 

Related Reading: Binance Coin Struggles Below $290 Resistance, Where Would Price Go?

CAPO Discloses Bitcoin Bottom

The popular crypto analysts going by the pseudonym Capo with 517,100 followers have predicted that BTC might plunge between $16K to $14K before rebounding. Capo believes that this price, indicating a 21% and 31% price reduction, will be its main downside target if the key support level falls. 

Other pointers from Capo show a possible BTC bounce to $23K from its current price of around$20K price level. 

Capo stated that this price might lead to Bitcoin bottoming out to the predicted price levels. Also, the analysts pointed out that BTC’s current pivot is $21K. If it makes a clean break below that level, it will fall to $19K. 

A break below $19K will push the coin to its target of $14K to $16K, the last lowest point.

For now, the BTC price might rise to $23K, but Capo advised Twitter followers not to be bullish. 

Capo analyzed BTC’s recent price of $20,122.54 from its highest point in August. The result shows a 10% loss, leading to the next prediction that Bitcoin might target a resistance level between $22.5K and $23K. 

The resistance zone, as indicated above, could lead to a lower high or a quick swing to $23K. By that, Capo sees an opportunity to go short since the movement will still be bearish. 

Bitcoin’s price is currently trading below $20,000. | Source: BTCUSD price chart from TradingView.com

Recent Events Could Push Capo Predictions Forward 

Recent news on Bitcoin states miners are moving their BTC holdings to spot exchanges. 

Data shows that miners moved 10.4537 BTC hourly as of September 14. Such massive moves were recorded between July and August 2022 before BTC fell. 

CryptoQuant analysts predict that the current move will lead to price volatility beyond what the market has recorded.  

The transfer of BTC holdings to spot exchanges usually indicate a willingness to sell. As a result, supply will exceed demand, causing a price plunge. The analysts linked the miners’ action to the Merge today, September 15. 

Related Reading: Will Tron Tie-Up With Liquidity Provider Wintermute Boost TRX Price?

Many analysts had predicted a turbulent post-merge market. So, it’s likely that Bitcoin miners are preparing for such situations. 

Featured image from Pixabay and chart from TradingView.com

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Ethereum Drops To $1,300, What’s Next For ETH Price?

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Ethereum has been following the general trend in the crypto market, giving back its profit obtained over the past week. The cryptocurrency was moving in tandem with Bitcoin and large cryptocurrencies, but now ETH’s price is reacting to new economic data published in the United States.

At the time of writing, Ethereum trades at $1,300 with a 2% loss and sideways movement in the last week. Other cryptocurrencies in the top 10 by market capitalization record similar price action with the exception of XRP. This token is showing strength against the trend and continues to knock on profits over the same period.

ETH’s price moving sideways on the 4-hour chart. Source: ETHUSDT Tradingview

Ethereum Inbound For Another Sideways Week

Data from Material Indicators (MI) shows that Ethereum is seeing some bids at its current levels. This could signal a short-term rally into previous resistance levels neat $1,340 with potential for $1,400.

As seen in the chart below, the Ethereum price has reacted relatively well to the recent price action with bid (buy) liquidity coming in at today’s low. This has supported the price of ETH allowing it to bounce into the area of around $1,340.

Ethereum Eth Ethusdt Chart 2
ETH’s price (blue line on the chart) bounces off bid liquidity on low timeframes. Source: Material Indicators

Earlier today, the second cryptocurrency by market cap was experiencing a spike in selling from all investors, from retail to whales. However, the selling has been mitigated in recent hours with large players with bid orders of as much as $100,000 buying into Ethereum’s price action.

These players bought over $800 million in ETH on short timeframes and might be able to sustain ETH for a while. Nevertheless, ETH’s price action might be in jeopardy as the market heads into the weekend.

For Ethereum and Bitcoin, $1,200 and $18,500 are key levels to prevent a fresh leg down into the yearly lows. According to a pseudonym trader, as long as these levels hold, the cryptocurrency will hold the line with more days of sideways movement. The trader said:

The moment $18.5K or $20.5K (for Bitcoin) gives in we’ll likely see it followed by a big move. Chop chop and more chop until then. CPI on Wednesday may change it up a bit but as we speak we’re back to the middle of the range.

Ethereum And Bitcoin Poised For Incoming Volatility

On the latter, the upcoming Consumer Price Index (CPI) print for September and today’s data on the U.S. economy show that macroeconomic forces are still in control. So far, the economic data has been positive and has even surpassed expert expectations.

This is negative for Bitcoin, Ethereum, and global markets because it signals that the U.S. Federal Reserve (Fed) can keep up and even turn up the pressure to slow down inflation metrics. In that sense, next week’s CPI print could be one of the key events for ETH, BTC, and the entire industry.

Talking about the potential for the Fed to take a less aggressive stance, and pivot its monetary policy, Keith Alan from Material Indicators wrote:

A FED pivot isn’t likely without something of major significance happening. The #FED wants to see consecutive months of declining CPI and increasing unemployment.

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Bitcoin Leverage Ratio Hits New ATH, Market In For A Rough Ride?

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On-chain data shows the Bitcoin leverage ratio has surged up to a new all-time high, suggesting the market could be heading towards high volatility.

Bitcoin All Exchanges Estimated Leverage Ratio Sets New ATH

As pointed out by a CryptoQuant post, the funding rate has remained neutral while the leverage has increased in the market.

The “all exchanges estimated leverage ratio” is an indicator that measures the ratio between the Bitcoin open interest and the derivative exchange reserve.

What this metric tells us is the average amount of leverage currently being used by investors in the BTC futures market.

When the value of this indicator is high, it means users are taking a lot of leverage right now. Historically, such values have led to higher volatility in the price of the crypto.

On the other hand, the value of the metric being low suggests investors aren’t taking high risk at the moment, as they haven’t used much leverage.

Now, here is a chart that shows the trend in the Bitcoin leverage ratio over the last few years:

Looks like the value of the metric has been rising up during the last few months | Source: CryptoQuant

As you can see in the above graph, the Bitcoin estimated leverage ratio has shot up recently and has attained a new ATH. This means that investors are taking a high amount of leverage on average.

The reason overleveraged markets have usually turned highly volatile in the past lies in the fact that such conditions lead to mass liquidations becoming more probable.

Any sudden swings in the price during periods of high leverage can lead to a lot of contracts getting liquidated at once. But it doesn’t end there; these liquidations further amplify the price move that created them, and hence cause even more liquidations.

Liquidations cascading together in such a way is called a “squeeze.” Such events can involve either longs or shorts.

The Bitcoin funding rates (the periodic fee exchanged between long and short traders) can give us an idea about which direction a possible squeeze may go in.

CryptoQuant notes that this metric has a neutral value currently, implying the market is equally divided between shorts and longs. As such, it’s hard to say anything about the direction a possible squeeze in the near future might lean towards.

The Bitcoin volatility has in fact been very low in recent weeks, but with such high accumulation of leverage, it may be a matter of time before a volatile price takes over.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.6k, up 2% in the past week.

Bitcoin Price Chart

The BTC value continues to trend sideways | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Discounted Tariff For Crypto Mining To Be Eliminated in Norway

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The finance minister of Norway, Trygve Slagsvold Vedum, has proposed that the government do away with a programme that gives crypto data centers a discounted cost on power.

The Norwegian government made a proposal on Oct. 6 that might affect Bitcoin miners by making data centers in the nation pay the same power tax rates as other sectors. The government determined that the discounted tariff should be gradually eliminated due to increased power consumption in certain regions.

The finance minister said:

“We are in a completely different situation in the power market now than when the reduced rate for data centers was introduced in 2016. In many places, the power supply is now under pressure, which causes prices to rise. At the same time, we are seeing an increase in cryptocurrency mining in Norway. We need this power for the community.”

A proposal to outlaw cryptocurrency mining was first proposed by the Norwegian Red Party in May, but it was ultimately shot down by the Norwegian Parliament. At the time, Arcane Research analyst Jaran Mellerud predicted that Norwegian political parties “likely make one more attempt at increasing the power tax specifically for miners.”

Moreover, according to the Cambridge Bitcoin Electricity Consumption Index, several BTC mining enterprises are now active in Norway, using 100% renewable energy sources and contributing 0.74 percent to the worldwide Bitcoin hash rate. Furthermore, many Sortland inhabitants in the north, meanwhile, have voiced worries about miners environmental hazards, mirroring the views of American legislators.

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Paraguay Senators Dissent Presidents Bitcoin Mining Bill Veto

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Reef Finance (REEF) Continues With Green Days; How Long With This Last?

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Reef Finance (Reef) Continues With Green Days; How Long With This Last?
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  • REEF price continues to show the market how it is done as price trends in the green zone for two straight days. 
  • REEF trades above key resistance as price breaks out of range holding above 8 and 20-day EMA.
  • The price of REEF eyes a recapture of $0.01 as key resistance was flipped into support. 

The price of Reef Finance has continued to show its strength as price trends with double-digit gains against tether (USDT) on two separate days in a row. With the crypto market cap bouncing from its weekly low as the market continued to look promising, the price of Reef Finance was not left out as the price broke out of its long weekly range, with the price trending to a higher height. (Data from Binance)

Reef Finance (REEF) Price Analysis On The Weekly Chart.

The crypto market got relief, as anticipated for most crypto altcoins. However, some altcoins have continued in a range-bound movement with the recent surge in price among most crypto assets. 

The price of REEF in previous months has been stocked in a range box as the price could not break out with real volume. REEF’s price continued to move between the region of $0.004 and $0.003 in a bid to break out and trend higher. 

After a long-range movement, with the month looking good for most altcoins, as many call it the month of Uptober, the price of REEF broke out with good volume from its range as price rallied to a high of $0.065 

REEF has a very good use case and no doubt was a catalyst as the price hit an all-time high of $0.3 before seeing its price rejected to a low of $0.003 as the price bounced off this region for a minor relief.

With the current structure, the price of REEF has been maintained; we could see the price going to a high of $0.01 if the relief state of the market remains for a longer time.

Weekly resistance for the price of REEF – $0.01.

Weekly support for the price of REEF – $0.004.

Price Analysis Of REEF On The Daily (1D) Chart

Daily REEF Price chart | Source: REEFUSDT On Tradingview.com

On the daily timeframe, the price of REEF continues to show strength as the price pulled over a 20% gain despite the market looking to have stalled in price movement; after hitting a daily low of $0.003, the price of REEF rallied to a high of $0.005 where the price was rejected into a range of $0.004-0.003 as price struggled to break out.

On a successful breakout, the price of REEF rallied with much aggression as bulls were in control of the price, pushing the price to a high of $0.0067.

The price of REEF currently trades at $0.0053, just above the 8 and 20-day Exponential Moving Average (EMA). The price at $0.0050 and $0.0048 corresponds to the prices at 8 and 20-day EMA for REEF on the daily timeframe. With the price of REEF holding strong and a possible price continuation, we could see a retest of $0.01 in no time.

Daily resistance for the REEF price – $0.00650.

Daily support for the REEF price – $0.005.

Featured Image From Zipmex, Charts From Tradingview

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Dapper Labs Announces Launch Date of NFT Marketplace

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The Fate Of Nfts In The Crypto Winter
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  • Dapper’s Flow blockchain will manufacture NFT collectibles based on video highlights.
  • The partnership between Dapper and LaLiga was initially announced in September 2021.

Dapper Labs’ LaLiga-themed NFT platform will enter closed beta later this month, following in the footsteps of NBA Top Shot and NFL All Day.

Starting on October 27th, a curated user base will have access to LaLiga Golazos, a digital marketplace where the first pack will be released. Over the course of many months, both Top Shot and All Day conducted closed beta testing with a growing number of users before releasing to the general public.

To compete with other similar sports services, Dapper’s Flow blockchain will manufacture NFT collectibles based on video highlights from LaLiga Golazos games, which will subsequently be sold and exchanged like trading cards.

Spectacular Goal 

The partnership between Dapper and LaLiga was initially announced in September 2021, and the platform was supposed to launch this past summer.

Bilingual NFTs with play-by-play commentary, player performance information, and match statistics will be sold by LaLiga Golazos (“golazos” meaning “spectacular goal” in Spanish). This is the first NFT product that provide multilingual support from Dapper. The era of the league covered by the platform’s collectibles extends all the way back to 2005.

El Clásico (FC Barcelona vs. Real Madrid CF), the Madrid Derby (Real Madrid CF vs. Atlético de Madrid), the Basque Derby (Real Sociedad vs. Athletic Club), and El Gran Derbi (Real Betis vs Sevilla FC) are just a few of the LaLiga rivalries whose moments will be featured in the first digital pack of NFT collectibles, set to release on October 27. 

Promoting the LaLiga Golazos launch are players such as FC Barcelona’s Ansu Fati and Marc-André ter Stegen, and Atlético de Madrid’s Joao Félix and Luka Modri.

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Ticketmaster Collaborates With Dapper Labs For NFT Tickets

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Marathon Digital Reveals $81.3M Exposure To Compute North

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Establishment Of Bitdao’s Layer 1 (L1) Proposed By Bitdao Development Team Headed By Bybit
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