What is Bitcoin? Introduction
In 2008, Bitcoin, the first world’s most enduring cryptocurrency asset that’s proven to be a success where years of digital currency experimentations failed, was invented by Satoshi Nakamoto (a pseudonym).
Unlike physical monetary transactions which depend on ropes of trusted bodies, Bitcoin’s monetary pattern and policy is brought about by a special type of secure, cryptographic, computer software. It is controlled by a blockchain- which linearly and chronologically records data point’s networks of computers called nodes. This implies that it does not need an intermediary or an administrator for running.
Bitcoin News: US (FBI) Seizes $2M worth of Bitcoin
According to a document released by a court on Tuesday, The Federal Bureau of Investigation (FBI) has confiscated about 40 bitcoins. This was done from a Russian resident linked to Revil and Gandrab ransomware deployed to attack government entities and businesses in the US.
The seizure complaint reads:
“The United States of America files this verified complaint in rem against 39.89138522 bitcoin seized from Exodus wallet … that is now located and in the custody and management of the Federal Bureau of Investigation (FBI) Dallas Division.”
The COVID-19 New Variant Effect
Several world markets including digital currencies and other risk assets are falling one after the other following panic caused by the detection of the new, heavily-mutated, COVID-19 variant in South Africa late last November. What’s it worth to hodl bitcoin?
On the 26th of November, The World Health Organization released a briefing on the newest variant, B.1.1.529, designating it a variant of concern. It is thought to be well above 30 mutations. As a result, the United Kingdom and some European countries have temporarily shut their borders and few others have tightened travel restrictions.
The global stock market started plunging on the 26th of November with European stocks leading in the decline-their worst in over a year. Several investors are withdrawing from assets that are riskier.
Bitcoin In The Crypto Market
The world of cryptocurrency came to a stun last Friday when assets fell sharply. Among them was the most prominent-Bitcoin-reaching a seven-week depression and officially nearing bear market zone.
Typically, the bear market zone is characterized by up to 20% or more declension from recent highs.
Bitcoin, which had earlier exceeded its all-time threshold of $66,895 plunged…
According to a data by Coin Metrics, the world’s largest cryptocurrency dropped, nearly 8% in about 24 hours, above 20% of its all-time peak of nigh $69,000 to $54, 321.
Other big cryptocurrencies followed suit, mirroring the same fate with Bitcoin. Etherum fell to $4,059, more than 10% of its latest high, and XRP plunged 9.9%.
Although there was a sudden rebound of Bitcoin to $58,136.63- an increase of 5.8% on Monday, other cryptocurrencies also jumped, with Etherum rising to $4,419.63- nearly 7% increase and XRP having up to 6% increase, but as at the time of this writing, the Bitcoin price is at $47,153.90.
Several analysts discussed about its fate yesterday when it was around $53K
Katie Stockton, founder and managing partner of Fairhead Strategies said,
“The support near $53K is important to us too, but so far it is still intact,”
“Today’s weakness may have been sparked by the negative momentum behind high-growth stocks, which seemed to affect sentiment regarding bitcoin in Q2.”
William Noble, the chief technical analyst, Token Metrics also discussed this.
“53k was the prior high from back in September,” he stated.
“So, that former ceiling might act as a floor near term. 53k will probably act as support for part of the weekend,” added Noble.
“Once equities reopen on Monday, selling in bitcoin could pick up again,” he said.
“If stocks go down all risky assets including crypto could have another leg down.”
Also, Brett Sifling, an investment advisor weighed in.
“The assessment of the other analyst sounds accurate, we’d expect Bitcoin to have support around the $50,000-$53,000 level,” he declared.
“People are psychologically attracted to placing buy/sell orders at round numbers like $50,000. That same level was a prior resistance point, which is now being tested as new support,” Sifling continued.
“We also see support at the $45,000 and $40,000 levels if we fail to hold $50,000-$53,000,” he concluded.
Kiana Danial, CEO of Invest Diva, also talked concerning the plight of Bitcoin
“BTC/USD has formed a double top bearish reversal chart pattern on the daily chart pattern,” she said.
“Friday’s dip was a test below both the 38% Fibonacci retracement level, and the lower band of the daily Ichimoku cloud; both being key psychological levels,” stated Danial.
“The future Ichimoku cloud appears bearish. Confirmation of a break below this level (at around $53K) could indicate further bearish momentum [that] could push the Bitcoin price lower towards the 50% and 61% Fibonacci retracement levels at around $49K and $44K respectively,” she continued.
“Keep in mind that such volatilities are normal for cryptocurrencies like Bitcoin,” said Danial, before offering a bullish outlook.
“Once the pullback is completed, there’s a high possibility of Bitcoin bouncing back up and reaching new highs in the new year.”
Shiliang Tang, chief investment officer at cryptocurrency investment manager LedgerPrime, also offered a bullish take, contending that this latest pullback was a net positive for bitcoin’s future price action.
“This dip certainly tracked the fall in equity prices that we’ve seen as a result of Covid fears and concerns about inflation,” he said.
“However, while crypto and equity markets do tend to fluctuate in tandem, they are different markets and crypto in particular is in a strong bull cycle.”
“Moreover, the on-chain metrics for this Bitcoin price calculator – the king crypto to track in a bull run – are still strong: there are more coins getting taken off exchanges than flowing onto them,” Tang said.
“This means that once this flushing out finishes, we should see a supply shock in which the price of Bitcoin explodes upwards,” he prognosticated.
“If anything, this dip did more to wash out those cowboy leverage traders and in turn set up healthier conditions for continued price rises in the near future.”
We fold our hands as we watch mysteries about cryptocurrency unfold.
