Massive Bitcoin Price Rally Awaits Shorts Trigger Beyond Fresh 2019 High

While the Bitfinex-Tether scandal, in which the Office of the New York Attorney General alleged Bitfinex of misusing $900 million of Tether’s cash …

By CCN: In the past month, the bitcoin price has climbed 23 percent against the U.S. dollar in major markets, recording nearly a 70 percent year-to-date (YTD) gain.

The bitcoin price is up by more than 23 percent in the past month (source: coinmarketcap.com)

The bitcoin price has almost fully recovered to November 2018 levels as it surged past $6,300 with strong volume and momentum.

Since March, the real volume of bitcoin calculated using the methodology of Bitwise Asset Management has surged by three-fold from $270 million to over $700 million, indicating an increase in interest towards the dominant cryptocurrency.

What Will Trigger a Bitcoin Bull Run?

Last week, global markets analyst Alex Krüger noted that if bitcoin surpasses $6,400, the most traded price of 2018, it would confirm the start to a new bull market.

$BTC now at $5750, the 2018 low prior to the November crash.

– The 2018 bear trend ended once above $4200.

– Above $6400, 2018’s most traded price, it’s a bull market. pic.twitter.com/rIQI8RIPgs

— Alex Krüger (@krugermacro) May 3, 2019

The bitcoin price has surged by nearly 10 percent in the past week and despite various optimistic technical indicators, for the asset to climb above key levels it would need solid catalysts that could act as stimuli for near-term growth.

Some analysts like David Puell, the head of research at Adaptive Capital, have said that shorts of bitcoin are far from being liquidated and squeezed.

A short squeeze could serve as a potential stimulus for the bitcoin price, especially if the volume of shorts increase in upcoming days out of caution from traders that the $6,400 resistance level may be too big for the asset to overcome.

“Price is not only parabolic but vertical now. Shorts are still far from getting fully squeezed. $6.4k may activate longs from late trend traders, setting up the perfect blow-off top. Blue: pullback targets after this potential climactic top from who knows where,” Puell said.

While the Bitfinex-Tether scandal, in which the Office of the New York Attorney General alleged Bitfinex of misusing $900 million of Tether’s cash reserves, led to a substantial increase in the premium of BTC on Bitfinex that may have led the price to climb, the premium of BTC on the exchange has declined in the past few days.

Had the disproportional premium of BTC on Bitfinex continued to exist, it could have largely affected the stability of the crypto market and raised serious concerns on the sustainability of the market’s short-term movement.

Will BTC Continue to Outperform Alternative Crypto Assets?

As explained by Yassine Elmandjra, a crypto asset analyst at ARK Invest, bitcoin has outperformed every top 10 crypto asset in the past month.

“On a day where everything is bleeding red except Bitcoin, let us be reminded that Bitcoin has continued to outperform every coin in the top 10 over the last month. On average, the top 10 coins by market cap are down more than 30% against Bitcoin,” Elmandjra said.

Previously, investors like Multicoin Capital general partner Vinny Lingham said that crypto assets would have to show independent price movements to sustain the momentum of the market.

“Many people believe that the crypto winter is over. Here are some of my unfiltered thoughts on this topic. Charts & technicals aside, I don’t believe this rally is sustainable for one reason: The market has not yet decoupled the various crypto assets from Bitcoin,” Lingham said in April.

The decoupling of crypto assets since last month suggests that the market as a whole is no longer engaging in a downside movement, possibly as the confidence of investors rekindles in the near-term.

It remains to be seen whether BTC could hold its price at important resistance levels even with the ongoing Bitfinex-Tether controversy, a scandal which some have argued has the potential to become the biggest intervention of the crypto market in history.

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Bitfinex welcomes another coin with a 1:1 peg to Bitcoin

Let’s forget the controversy surrounding Bitfinex and look on the bright side. A Bitcoin sidechain, Liquid, developed by Blockstream has launched its …

Let’sforget the controversy surrounding Bitfinex and look on the brightside. A Bitcoin sidechain, Liquid, developed by Blockstream haslaunched its coin on Bitfinex.

DubbedLiquid Bitcoin (LBTC), the coin can now be deposited or withdrawn onBitfinex. The coin has a ratio of 1:1 with Bitcoin. The Liquidnetwork is controlled by institutions which include cryptocurrencyexchanges. The current members of the network include Tilde, Huobi,BTCTrader, DMM Bitcoin, among others.

According to Paolo Ardoino, CTO, Bitfinex:

“IssuingBitcoin, stablecoins, and various other digital assets under oneblockchain platform makes a lot of sense. It reduces the integrationburden for an exchange like ourselves, and traders can manage alltheir assets from a single wallet application.”

LBTCis Bitcoin on the Liquid network. As stated by Blockstream, Liquid is an inter-exchangesettlement platform that connects virtual currency exchanges andother institutions across the globe. This, in turn, facilitatesfaster BTC transactions plus the issuance of digital assets. Thespeed of Liquid proves beneficial for traders engaged in arbitrage.

Althoughthe chain was initially closed to a select few, it is slowly lettingthe general public to have a feel of the network using the Liquidclient.

Asnoted by Blockstream’s Mario Gibney, apart from allowing Liquidusers to send funds to other users without an intermediary,Blockstream is considering supporting “an easy-to-use-mobilewallet.”

Gibney added:

“Andas more exchanges integrate (as Bitfinex and the Rock Trading alreadyhave), then users will be able to deposit and withdraw from thoseexchanges within 2 minutes.”

TheLiquid network is a permissioned platform with 15 entities selectedto validate and commit transactions. While this may not be the bestapproach, once those using the platform build trust with thevalidators, it “would make transfers pretty much instant, and thuswould make arbitrage a lot faster.”

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Binance hack: CZ gives latest security updates, Bitfinex announces Blockstream Liquid Network …

Crypto News – 10 May – Binance hack: CZ gives latest security updates, Bitfinex announces integration of Blockstream Liquid Network and more.

Crypto News – 10 May – Binance hack: CZ gives latest security updates, Bitfinex announces integration of Blockstream Liquid Network and more

Don’t forget to follow us for our daily videos#BinanceHack#LiquidNetwork@bitfinex@Blockstream#bitcoin#Binancepic.twitter.com/osfL5QZ8tX

— AMBCrypto (@CryptoAmb) May 10, 2019

Crypto News – 10 May

Basic Attention Token spikes: Popular crypto, BAT, surged by 23% over the past 24 hours, to gain back the loss in value it had incurred during the fall yesterday

Read more at https://bit.ly/2WyoVNa

Tron releases DApp report: Tron Foundation’s DApp report had more good news for the ecosystem after it revealed that smart contracts and 24 hour trading volume had risen significantly

Read more at https://bit.ly/2PYYYDU

Riccardo Spagni on Craig Wright: Monero’s lead developer joined the debate against Craig Wright after he shared the un-blocked version of an article written by Jameson Lopp, which was critical of Wright

Read more at https://bit.ly/2JebsHg

FinCEN on crypto-regulations: In a recent development, the Financial Crimes Enforcement Network [FinCEN] published a thirty-page document guiding financial institutions to comply with current regulations while interacting with digital assets

Read more at https://bit.ly/2VeH29q

Binance Coin nosedives: Following the hack that cost Binance over 7000 BTCs, the price of BNB fell dramatically, falling by 6% in an hour and 18% over a day

Read more at https://bit.ly/2Ec9mDZ

John McAfee on Binance hack: Software pioneer, John McAfee, declared his support for the hacked exchange, Binance, offering the use of his ‘wizards’ to fight ‘dark wizards (hackers)’

Read more at https://bit.ly/2WIZtVa

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