Bitcoin's $100K price target returns as BTC price breaks out of bull pennant

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Cointelegraph 11 October, 2021 - 10:57am 2 views

The bullish analogy appears as Bitcoin reserves across all the crypto exchanges fall to their lowest in the previous 12 months, suggesting holding sentiment among traders.

Dubbed as the Bull Pennant, the setup represents a price consolidation period with converging trendlines that form after a strong move higher. It ultimately prompts the price to break out in the direction of its previous trend to a level typically at length higher by as much as the size of the initial large move.

On Bitcoin weekly charts, the cryptocurrency appeared to have been trending inside a similar consolidation structure, with its price fluctuating inside a triangle-like structure following a strong move higher (Flagpole).

Last week, Bitcoin broke above the structure's upper trendline as it rose by 13.5%, with rising trading volumes to boot. As a result, the cryptocurrency's breakout move indicated its potential to rise by as much as the size of its previous trend (nearly $50,000).

Measuring from the point of breakout (~$48,200), the Bull Pennant's upside target thereby comes out to be another $50,000 higher, i.e., almost $100,000.

The technical setup projected Bitcoin at $100,000 not longer after many analysts envisioned the cryptocurrency at the same, six-digital valuation.

A team of researchers at Standard Chartered, headed by its global head of emerging market currency research, Geoffrey Kendrick, predicted BTC to hit $100,000 by early next year. They cited Bitcoin's potential to become "the dominant peer-to-peer payment method for the global unbanked" behind their bullish prediction.

David Gokhshtein, the founder of Gokhshtein Media and PAC Global, also imagined Bitcoin above $100,000 before the end of 2021. The executive based his bullish outlook on the amount of available fiat liquidity in the market, which, according to him, has prompted leading Wall Street players to purchase Bitcoin.

"Not everybody's going to come out publicly and tell you that they're buying bitcoin, but they are," Gokhshtein told Business Insider.

His statements appeared after George Soros' investment firm revealed at a Bloomberg event that it owns Bitcoin, sending the cryptocurrency spiking. That was soon followed by JPMorgan & Chase's latest report that showing institutional investors' preference for Bitcoin over gold as an inflation hedge.

In an earlier study published in May, the banking giant projected Bitcoin to reach $140,000 in the long term.

On-chain indicators highlighted a rise in holding sentiment among Bitcoin traders.

In detail, the Bitcoin reserves held across all crypto exchanges recently dropped to their lowest levels in a year, as per data provided by blockchain analytics firm CryptoQuant. The decline illustrated traders' intention to hold their Bitcoin tokens close than trading them for other fiat/digital assets.

Therefore, declining Bitcoin balances on exchanges typically follow up with a rise in the BTC price.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Read full article at Cointelegraph

Billionaire Bill Miller advocates for Bitcoin, but doubtful on altcoins

Cointelegraph 11 October, 2021 - 07:42am

The billionaire investor conveyed his predominantly bullish opinions on the crypto ecosystem during a recent online interview

Miller subscribes to the well-documented thesis that Bitcoin portrays digital gold, and unlike many of his financial contemporaries — Warren Buffet being the most prominent — he has been a keen investor in the digital asset space.

Back in early 2016, Miller dedicated 30% of his portfolio to the leading crypto asset Bitcoin at an average value of $500 and has more recently filed a motion with the SEC for Miller Opportunity Trust to invest in BTC via the institutional-grade $2.25 billion Grayscale Bitcoin Trust.

During the interview, Miller correlated his first acquisition of Bitcoin to the current risk proposition witnessed today, all the while wearing a Bitcoin baseball cap:

Miller also shared his perspective on the potential of altcoins, insinuating that few projects of the thousands on the marketplace will survive the market’s tumultuous volatility over the coming years:

Discussing the burgeoning influence of crypto exchange Coinbase, Miller advised investors to not be cautious over one- to two-year fluctuations of the Nasdaq-listed stock COIN, as in his qualified opinion, the asset offers a “default position for growth investors.”

In addition, he drew comparisons between the market capitalization of electric-car giant Tesla and Coinbase, suggesting that the exchange could reach and even surpass the former's valuation, which stands at approximately $790 billion due to its position in a “rapidly growing, changing industry.”

US debt ceiling crisis: A catalyst for crypto’s ultimate decoupling?

Cointelegraph 11 October, 2021 - 07:14am

Many in and beyond the crypto industry believe that the political standoff around the debt ceiling increase makes digital assets more attractive in the long run.

The deal secured a temporary resolution for a weeks-long partisan standoff that had investors both within and far beyond the U.S. unsettled. The once unimaginable prospect of a U.S. default seemed more conceivable than ever before.

As the system-wide uncertainty peaked ahead of the vote, the cryptocurrency market has been doing just fine, led by Bitcoin’s (BTC) biggest bull run in months. This has spurred customary narratives of crypto’s decoupling from more traditional asset classes and of Bitcoin as a safe haven in times of looming financial disasters.

So, what are the possible effects of the debt limit crisis on the role of digital assets in the global financial system?

The U.S. government, thanks to controlling the printing press for the world’s reserve currency, has a unique power to set its own debt limit. Congress first imposed a cap on the aggregate national debt in 1939, increasing this limit on more than 100 occasions since then.

While the debt ceiling increase is normally not a partisan issue, things were different this time around. Embittered by Democrats’ ambitious social and climate spending agenda, Senate Republicans took a principled stand, refusing to back their opponents’ attempts to address the impending deadline for either raising the debt limit or defaulting on federal debt.

The lack of Republican support for increasing the debt limit, which requires 60 votes to pass the Senate rather than the simple majority that Democrats already wield, could be considered a symbolic move. Raising the amount of money that the Treasury can borrow does not authorize new spending in and of itself but rather is meant to allow it to cover existing obligations.

Partisan politics aside, some critics believe that the federal debt policy that relies on constantly increasing the borrowing cap is not great for the wallets of regular Americans. Chris Kline, co-founder and chief operating officer of cryptocurrency retirement investment provider Bitcoin IRA, noted to Cointelegraph:

The temporary patch of a solution that the Senate has agreed on only staves off the debt ceiling issue until early December, effectively perpetuating the macroeconomic uncertainty. One prominent argument is that this uncertainty can play into Bitcoin’s hands in the coming weeks.

Arina Kulackovska, head of corporate payment solutions at cryptocurrency exchange CEX.IO, believes that “This uncertainty could potentially continue to be a driver of a BTC rally.”

At the same time, Kulackovska noted that cryptocurrencies are starting to “trade apart from the legacy markets,” which could lead to them being less malleable to macroeconomic dynamics that considerably affect more traditional asset classes.

Kay Khemani, managing director at online trading platform Spectre.ai, believes that the impact of the debt limit suspension on financial markets in general, including digital assets, is “likely to be favorable as it would mean more liquidity in the system (read: more debt),” which tends to flow to financial assets first.

Khemani further remarked: “Higher debt does erode the value of the dollar over time and this further strengthens the narrative — however misguided it may be — that crypto is a safe haven asset.”

Still, the degree to which cryptocurrencies have decoupled from other assets like stocks is still a matter of debate. Eric Bleeker, an analyst at investment advice company The Motley Fool, commented to Cointelegraph:

One example that Bleeker invoked was Bitcoin briefly dropping more than 50% in March 2020 at the beginning of the pandemic. He also added that things may play out differently in the long run, as events like the debt ceiling crisis degrade trust in the dollar and make alternatives like Bitcoin more attractive.

While industry participants and analysts differ on the short-term effects of the U.S. federal debt limit uncertainty on the cryptocurrency market, most of them sound remarkably consonant when discussing how it can influence the market in the long run. Two concurrent trends that are often mentioned are the erosion of trust in the dollar and institutions backing it and the rising demand for crypto.

Haohan Xu, CEO of digital asset trading platform Apifiny, expects that raising the debt ceiling “will steadily apply more buy pressure on BTC, causing prices to steadily rise over time.” Marie Tatibouet, chief marketing officer of cryptocurrency exchange Gate.io, thinks that “Crypto’s quality as a market hedge will shine through.” Tatibouet added that the crypto market has already outgrown stocks and gold since the pandemic began, adding: “If there is indeed a financial crisis due to the government defaulting, then crypto will be a safe haven in the long term, as it has already proven to be.”

Daniel Gouldman, CEO and co-founder of financial services provider Unbanked, called the entire dance around the debt limit increase “absolutely ridiculous,” as it makes the United States’ credit score hostage of partisan politics:

Ron Levy, CEO of blockchain education and training firm The Crypto Company, noted the contrast between the two financial systems that the debt ceiling crisis makes conspicuous. Levy commented to Cointelegraph that this might be the time when the crypto industry finally decouples from traditional finance:

It is likely impossible to tell if the ultimate decoupling is attainable at all, let alone when it can be achieved. Yet, the debt ceiling crisis goes a long way toward highlighting the difference between how traditional and digital money is governed — and this comparison is not particularly favorable to fiat currencies.

US debt ceiling crisis: A catalyst for crypto’s ultimate decoupling?

Cointelegraph 11 October, 2021 - 07:14am

Many in and beyond the crypto industry believe that the political standoff around the debt ceiling increase makes digital assets more attractive in the long run.

The deal secured a temporary resolution for a weeks-long partisan standoff that had investors both within and far beyond the U.S. unsettled. The once unimaginable prospect of a U.S. default seemed more conceivable than ever before.

As the system-wide uncertainty peaked ahead of the vote, the cryptocurrency market has been doing just fine, led by Bitcoin’s (BTC) biggest bull run in months. This has spurred customary narratives of crypto’s decoupling from more traditional asset classes and of Bitcoin as a safe haven in times of looming financial disasters.

So, what are the possible effects of the debt limit crisis on the role of digital assets in the global financial system?

The U.S. government, thanks to controlling the printing press for the world’s reserve currency, has a unique power to set its own debt limit. Congress first imposed a cap on the aggregate national debt in 1939, increasing this limit on more than 100 occasions since then.

While the debt ceiling increase is normally not a partisan issue, things were different this time around. Embittered by Democrats’ ambitious social and climate spending agenda, Senate Republicans took a principled stand, refusing to back their opponents’ attempts to address the impending deadline for either raising the debt limit or defaulting on federal debt.

The lack of Republican support for increasing the debt limit, which requires 60 votes to pass the Senate rather than the simple majority that Democrats already wield, could be considered a symbolic move. Raising the amount of money that the Treasury can borrow does not authorize new spending in and of itself but rather is meant to allow it to cover existing obligations.

Partisan politics aside, some critics believe that the federal debt policy that relies on constantly increasing the borrowing cap is not great for the wallets of regular Americans. Chris Kline, co-founder and chief operating officer of cryptocurrency retirement investment provider Bitcoin IRA, noted to Cointelegraph:

The temporary patch of a solution that the Senate has agreed on only staves off the debt ceiling issue until early December, effectively perpetuating the macroeconomic uncertainty. One prominent argument is that this uncertainty can play into Bitcoin’s hands in the coming weeks.

Arina Kulackovska, head of corporate payment solutions at cryptocurrency exchange CEX.IO, believes that “This uncertainty could potentially continue to be a driver of a BTC rally.”

At the same time, Kulackovska noted that cryptocurrencies are starting to “trade apart from the legacy markets,” which could lead to them being less malleable to macroeconomic dynamics that considerably affect more traditional asset classes.

Kay Khemani, managing director at online trading platform Spectre.ai, believes that the impact of the debt limit suspension on financial markets in general, including digital assets, is “likely to be favorable as it would mean more liquidity in the system (read: more debt),” which tends to flow to financial assets first.

Khemani further remarked: “Higher debt does erode the value of the dollar over time and this further strengthens the narrative — however misguided it may be — that crypto is a safe haven asset.”

Still, the degree to which cryptocurrencies have decoupled from other assets like stocks is still a matter of debate. Eric Bleeker, an analyst at investment advice company The Motley Fool, commented to Cointelegraph:

One example that Bleeker invoked was Bitcoin briefly dropping more than 50% in March 2020 at the beginning of the pandemic. He also added that things may play out differently in the long run, as events like the debt ceiling crisis degrade trust in the dollar and make alternatives like Bitcoin more attractive.

While industry participants and analysts differ on the short-term effects of the U.S. federal debt limit uncertainty on the cryptocurrency market, most of them sound remarkably consonant when discussing how it can influence the market in the long run. Two concurrent trends that are often mentioned are the erosion of trust in the dollar and institutions backing it and the rising demand for crypto.

Haohan Xu, CEO of digital asset trading platform Apifiny, expects that raising the debt ceiling “will steadily apply more buy pressure on BTC, causing prices to steadily rise over time.” Marie Tatibouet, chief marketing officer of cryptocurrency exchange Gate.io, thinks that “Crypto’s quality as a market hedge will shine through.” Tatibouet added that the crypto market has already outgrown stocks and gold since the pandemic began, adding: “If there is indeed a financial crisis due to the government defaulting, then crypto will be a safe haven in the long term, as it has already proven to be.”

Daniel Gouldman, CEO and co-founder of financial services provider Unbanked, called the entire dance around the debt limit increase “absolutely ridiculous,” as it makes the United States’ credit score hostage of partisan politics:

Ron Levy, CEO of blockchain education and training firm The Crypto Company, noted the contrast between the two financial systems that the debt ceiling crisis makes conspicuous. Levy commented to Cointelegraph that this might be the time when the crypto industry finally decouples from traditional finance:

It is likely impossible to tell if the ultimate decoupling is attainable at all, let alone when it can be achieved. Yet, the debt ceiling crisis goes a long way toward highlighting the difference between how traditional and digital money is governed — and this comparison is not particularly favorable to fiat currencies.

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