The Same Trader Who Predicted Bitcoin’s $3k Bottom Is Now Bearish

Bitcoin Price

The Same Trader Who Predicted Bitcoin’s $3k Bottom Is Now Bearish


Most investors have no idea which way Bitcoin will trend.

Take the funding rate of BTC futures markets, which are flip-flopping between slightly positive and slightly negative as the consolidation drags on. The chart seen below shows this trend.

Bitcoin

Chart of BTC’s price action over the past three months with BitMEX funding rate + premium index. Chart from TradingView.com

A trader that predicted Bitcoin would bottom at $3,200 months before it did in 2018, though, recently shared bearish sentiment. He shared an analysis predicting that BTC is likely prone to fall to the low-$8,000s for the first time in around 10 weeks.

Bitcoin Could Soon Plunge Towards Low-$8,000s, Says Top Analyst

Six months before Bitcoin fell as low as $3,150 in December 2018, a trader speculated that the then-ongoing bear market would end at $3,200. He was proven almost exactly correct when the asset dipped to that region.

That same trader now believes that BTC is on track to plunge in the days ahead.

Referencing the chart below, which suggests Bitcoin could fall to the range lows around $8,300, the trader said:

“So I find it kinda hard to get over the fact that BTC keeps falling in 5 waves but recovering in 3’s. its defo starting to feel bearflaggy now and I think if we lose 9150, then 8800 and 8300 will come relatively quickly.”

Bitcoin

Short-term BTC analysis by trader @SmartContracter (Twitter handle). Chart from TradingView.com

For context, Bitcoin dropping to $8,300 from current prices would imply a drop of approximately 10%.

Also betting on the downside is institutional traders on the CME. Institutional users of the regulated prominent futures platform have built up a cumulative net short over recent weeks, public data has revealed.

As reported by Bitcoinist, that short position currently has a size of over 2,000 contracts. This is pertinent as the last time these traders had built such a big short position, the cryptocurrency market crashed 60% in two weeks.

Other Technical Signs Also Predicting Downside

There are other technical signals indicating that BTC will retrace from the current range and to the downside.

The head of technical analysis at Blockfyre, a cryptocurrency research firm, shared the chart below. It shows that with the recent price action, BTC is now trading below the range equilibrium and other key technical levels.

Bitcoin

Analysis of BTC’s price action from trader Pentoshi (@Pentosh1 on Twitter). Chart from TradingView.com

He added that there are other “signs of short-term weakness starting to appear” that suggests price could visit “8.6-9k demand areas short term.”

Another prominent trader made a similar comment, writing how BTC’s price action has brought it under a crucial technical level. To him, this implies “weakness in the local range” that could bring BTC close to $9,000 and potentially under that level.

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The Same Trader That Predicted Bitcoin's $3k Bottom Is Now Bearish

Bitcoin Can Attract Large Capital Inflows on Short Notice: Research

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Bitcoin Can Attract Large Capital Inflows on Short Notice: Research


  • Bitcoin is at the cusp of attracting large capital inflows from the neighboring stablecoin market, according to a weekly research note published by Glassnode.
  • The on-chain market analyst highlighted that the net supply of dollar-pegged tokens surged higher than Bitcoin.
  • It concluded that more money held in stablecoins increases the chances for Bitcoin to start a new price rally on short notice.

Bitcoin expects to attract a massive inflow of capital in a potential mass-migration from the stablecoin market, so says Glassnode.

The Zug-based data intelligence agency wrote in its weekly research note that the supply of stablecoins outpaced that of Bitcoin. The fractal points to an increase in demand for the US dollar-pegged tokens. Traders and investors can utilize the new stablecoin repository to pump the Bitcoin market.

These non-federal digital dollars tend to improve liquidity in the cryptocurrency market. Traders use them to purchase or sell cryptocurrencies without needing to involve a banking institution – and to seek stability during highly volatile periods of trading.

Lower Bitcoin Volatility

But the last few weeks has encountered Bitcoin in its least-volatile avatar. The cryptocurrency stands stuck in a narrow $300 trading range, with traders unable to establish a definite short-term directional bias.

us dollar, bitcoin, cryptocurrency, us dollar index, btcusdt, btc usd, stablecoin

Bitcoin price is trading sideways in a $9,000-9,300 range. Source: TradingView.com

Theoretically, it should decrease the demand for stablecoins, but their supply rate is rising, nevertheless. The top stablecoin Tether, for instance, reported a market capitalization worth over $10 billion last week.

Glassnode refers to it as “readiness of money” before they flow into the bitcoin market, based on a so-called Bitcoin’s Stablecoin Supply Ratio.

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Bitcoin Stablecoin Supply Ratio. Source: Glassnode

“This metric – representing the ratio between the supply of money in BTC and the supply of stablecoins – highlights the theoretical readiness of money to flow into BTC,” the excerpts read. “The more money held in stablecoins, the higher the potential for a large inflow of capital into BTC on short notice.”

The statement also follows as multiple analysts watch the Bitcoin market for its next breakout move. Josh Rager, a US-based cryptocurrency trader, said this Sunday that lower volatility typical entices Bitcoin to undergo 30 percent to 60 percent moves in either direction.

“From current price: 30% move to the upside is $12,200,” he added. “30% move to the downside is $6,500.”

Bullish Mirage

While a higher stablecoin supply may lead the BTC price higher, Glassnode reminded that the same capital could migrate into the altcoin market. Excerpts from its note:

“With this rise in stablecoin supply, we might be seeing people preparing to buy into BTC en masse. But these funds may also be earmarked for another purpose, such as buying into the altcoin pump.”

Almost every top alternative cryptocurrency has delivered better quarter-to-date profits than Bitcoin. Staking coins Cardano and Chainlink are up 28 percent and 53 percent compared to Bitcoin’s 0.17 percent gains.

Glassnode added that investors might be holding stablecoins as a store-of-value asset against an uncertain macroeconomic outlook.

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A Weaker US Dollar Prediction Offsets Bitcoin Bearish Bias for Q3/2020

us dollar, bitcoin, cryptocurrency, us dollar index, btcusdt, btc usd Bitcoin Price

A Weaker US Dollar Prediction Offsets Bitcoin Bearish Bias for Q3/2020


  • Bitcoin eyes a significant plunge entering further into the third quarter as S&P 500 stocks unveil a 45 percent drop in quarterly profits.
  • The correlation between the cryptocurrency and the US benchmark index last week hit a record high.
  • Nevertheless, both the risk-on markets may limit their downside move on a weakening US dollar outlook.
  • Analysts have warned that the greenback could plunge in the coming months.

Bitcoin’s short-term outlook for the third quarter is fundamentally bearish due to its over-reliance on the S&P 500.

The two benchmarks have tailed each others’ moves since they dropped in tandem during the March 2020’s global market rout. Especially in recent weeks, the correlation between them has grown to record levels, according to data collected by Skew, a market analysis platform.

s&p 500, bitcoin, correlation

Bitcoin-S&P 500 1-month realized correlation hit record highs. Source: Skew

The S&P 500 is now sitting atop 0.94 percent year-to-date losses following a circa 43 percent retracement rally from its March 23 low.

Bitcoin likewise has recovered by more than 140 percent from its March 12 nadir. It is now maintaining its YTD gains over 27 percent. Therefore, if the S&P 500 tends to correct lower, as Bitcoinist covered here, it may allow investors to cover part of their losses by selling Bitcoin, a profitable asset so far into the year.

But despite its bearish outlook, Bitcoin investors still eyes a limited downside move due to weakening sovereign currencies.

A Risky Dollar

Nic Carter, a partner at Castle Island Ventures, stated this week that he sees enormous opportunities for Bitcoin as sovereign currencies fail. He cited growing debts in emerging markets that may end up immiserating “tens or hundreds of millions of people.

“And for some of those people, they will be able to use crypto financial rails to exit their sovereign local currency and they can go to Bitcoin,” Mr. Carter added. “They can go to the US dollar.”

But even the greenback is battling a string of weak fundamentals, so say analysts from Credit Suisse, BNP Paribas, Deutsche Bank, and Société Générale. The global reserve currency is at risk of declining in the coming months.

us dollar, bitcoin, cryptocurrency, us dollar index

US dollar index is in a free-fall after topping in March 2020. Bitcoin bottomed in the same month. Source: TradingView.com

Shahab Jalinoos, the global head of foreign exchange strategy at Credit Suisse, said that the US dollar might weaken more from its March 2020 high. He cited escalating political and health risks in the US, as well as drastic rate cuts and a flood of liquidity introduced by Federal Reserve as key bearish catalysts.

“The stars have aligned for the dollar to weaken more,” Mr. Jalinoos told FT. “The US simply faces more risks than other major economies at this point.”

The dollar is also less attractive safe-haven for investors engaged in bonds. With rates falling near zero, there are not adequate yields available on the sovereign bonds. That is also one of the reasons behind investors’ shift to risky markets like Bitcoin and the S&P 500.

Offsetting Bitcoin Bearish Bias

A weaker outlook for the US dollar may prove beneficial for Bitcoin.

The cryptocurrency has been long touted as the safe-haven against inflationary fiat assets. Institutional investors, including Paul Tudor Jones, have also opted to invest in the cryptocurrency’s derivatives as a measure of insurance against the Fed’s relentless money-printing.

us dollar, bitcoin, cryptocurrency, us dollar index, btcusdt, btc usd

Bitcoin price has started recovery ever since the US dollar index bottomed. Source: TradingView.com

Meanwhile, the S&P 500 is looking to pare part of its recent gains as data from FactSet shows a 45 percent plunge in quarterly profits. Bitcoin may follow suit, only to regain its bullish consciousness against a fundamentally weaker dollar outlook.

Bitcoin’s Hash Rate Just Hit a High — Max Keiser Thinks Price Will Follow

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Bitcoin’s Hash Rate Just Hit a High — Max Keiser Thinks Price Will Follow


Despite stagnation in the Bitcoin market, the hash rate of the leading cryptocurrency has grown stronger and stronger. The hash rate is the measure of the computational power being allocated to mine BTC blocks.

As noted by CoinCorner’s Matt Ward, data shows that the hash rate just hit a new all-time high on July 13th. The measure hit 147.88 exahashes per second, which is double that seen a year ago and over 10 times higher than that of 2017’s $20,000 high.

This indicates that Bitcoin is more secure as a computational network than ever before, even though the market has flatlined.

But what effect will the booming hash rate have on the price of BTC?

Bullish for the Bitcoin Price: Analysts

According to Bitcoin investor and the co-host of the Keiser Report, Max Keiser, BTC is likely to follow the hash rate higher. In a series of tweets published on July 13th, Keiser cemented his sentiment:

“Hashrate precedes price BTC. Bitcoin price – not that important – as Gold price is not that important since both BTC and Gold trade inversely with the USD. BTC hashrate increasing shows confidence in fiat money collapsing Soon, BTC will actually be drawing energy away from fiat.”

As a pertinent aside, Keiser previously said that he thinks 99% of all the hash rate in the crypto industry will soon be allocated to Bitcoin.

This sentiment has been corroborated by other investors.

Charles Edwards, a digital asset manager, unveiled the “Energy Value” model for the BTC price in December of 2019. The premise is that the “value of Bitcoin is a function of its energy input in Joules.

The formula he created was then accurate, with his analysis indicating it has had an 80% R2 value over Bitcoin’s lifespan. The same model predicts that BTC is currently around 28% undervalued. With the high accuracy of the model, should Bitcoin’s hash rate remain this high or continue to grow, the BTC price will eventually follow.

Bitcoin

Chart of BTC’s price action over the past few months with the “Energy Value” model from trader Charles Edwards. Chart from TraidngView.com

What’s Behind the Hash Rate Surge?

With analysts agreeing that strength in the hash rate will cause Bitcoin to move higher, it’s worth taking a look at what’s behind the trend.

This writer explained in a recent Twitter thread that there are four trends behind the ongoing surge in hash rate. These are growing investments by mining firms, it becoming “rainy season” in China, new ASIC machines, and a potential hash war.

Speaking to the second point, the cost of electricity dramatically declines in China when rivers begin to flood. This drives down the cost of running ASIC machines in China, where there is a majority of the Bitcoin hash rate.

This confluence of trends seemingly indicates that Bitcoin’s hash rate won’t stop climbing, especially if BTC holds current levels or appreciates even higher.

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Bitcoin's Hash Rate Just Hit a High — Max Keiser Thinks Price Will Follow

Bitcoin May Confirm a Massive H&S Pattern, Marking a Long-Term Top

Bitcoin

Bitcoin May Confirm a Massive H&S Pattern, Marking a Long-Term Top


  • Bitcoin is currently in the process of breaking out of its trading range between $9,000 and $9,300
  • The crypto is now showing some signs of strength following yesterday’s harsh rejection at $9,350 that sent it reeling to $9,100
  • If BTC buyers can perpetuate this upwards momentum, one analyst is now noting that $9,850 is in the cards
  • He also believes that it will face a rejection at this price level, which could confirm a massive head and shoulders (H&S) pattern
  • If confirmed, this pattern alone could spark the next Bitcoin bear market

Bitcoin is about to break out of its trading range, with buyers currently battling with sellers as it hovers just above $9,300.

The crypto has been trading here throughout the past several hours, and it remains unclear as to whether or not bulls have enough strength to catalyze a decisive move higher.

Despite the current indecision, some analysts are noting that Bitcoin will soon make a massive movement that offers significant insight into its mid-term outlook.

This movement may favor bears, as one pattern that is currently in play could soon mark a macro top for Bitcoin and the entire cryptocurrency market.

Bitcoin Continues Consolidating as Analysts Watch for a Massive Movement

At the time of writing, Bitcoin is trading up marginally at its current price of $9,310. This is around where it has been trading throughout the past several days and weeks.

This is a significant level, as it marks the upper boundary of the trading range that it has been caught within for the past several weeks.

As of late, every attempt to move beyond this range has been met with an influx of selling pressure.

As Bitcoinist reported yesterday, investors may soon have a better idea of Bitcoin’s macro trend.

One analyst cited within the report explained that historical data suggests bouts of volatility this low are typically followed by $3,000+ movements.

BTC Forms Bearish H&S Pattern; Here’s How It May Be Confirmed 

Bitcoin is somewhat neutral at the present moment, but there is one pattern currently in play that may not bode well for the cryptocurrency’s buyers.

One analyst pointed to a head and shoulders pattern that has been forming, noting that a rejection at $9,850 would confirm its validity.

“Haven’t been posting much on twitter lately, but I’ve been busy trading highly volatile alts. I barely look at the BTC chart, but given how the alt charts are looking, I could see a pop on Bitcoin to $9850, which might be the short for the whole market.”

Bitcoin

Image Courtesy of Calmly. Chart via TradingView.

If this pattern turns out to be valid, it could set the tone for how Bitcoin trends in the months ahead.

Featured image from Unsplash.
Charts from TradingView.

It’s a Critical Moment for Ethereum; Here’s the “Do or Die” Level to Watch

Altcoin Price

It’s a Critical Moment for Ethereum; Here’s the “Do or Die” Level to Watch


  • Ethereum has been flashing mixed signs to investors throughout the past several days and weeks
  • After seeing some turbulence yesterday, it is now showing some relative signs of strength as it trades near the upper boundary of its long-established trading range
  • Analysts are now noting that it is currently a crucial moment for the digital asset
  • Where it trends next could be largely dependent on whether or not buyers can shatter a crucial resistance level
  • A failure to do so would likely lead it to see major losses

Ethereum has been slightly outperforming Bitcoin in recent times, with its buyers being able to push ETH up towards the upper boundary of its trading range while BTC remains in the lower-$9,000 region.

The cryptocurrency is now pushing up against what appears to be a substantial resistance level, and whether or not buyers can surmount it could determine if it reels to lower lows, or targets its next resistance at $275.

The coming few hours and days should elucidate the crypto’s mid-term trend.

Ethereum Incurs Steady Uptrend Over Macro Time Frame

At the time of writing, Ethereum is trading up under 1% at its current price of $244. The crypto has been flashing some signs of strength over the past 24-hours.

Yesterday, sellers forced it to a low of $237, which happens to be a crucial support level that has been tested and defended on multiple occasions throughout the past several days and weeks.

Buyers ardently absorbed this selling pressure and helped lead it higher.

It is now trading right around its daily highs, although there is some resistance at just above where it is currently trading at.

One analyst recently observed an interesting trend seen while looking towards the crypto’s multi-month price action, with Ethereum forming multiple consolidation channels that tend to result in upwards breakouts.

“I found it interesting that ranges have become longer in duration as price appreciated. Plus a clean trend,” he noted in response to one user.

This pattern can be seen in the below chart:

Ethereum

Image Courtesy of Mohit Sorout. Chart via TradingView.

Analyst: ETH is Currently Trading at a Crucial Level

Another analyst recently said that how Ethereum trends in the coming hours and days could be vital for understanding its mid-term trend.

He notes that $245 is the crucial level to observe, and a break above this resistance could send ETH rocketing towards $275.

“ETH HTF Update: Currently, ETH seems to be testing this major level of resistance once again, this is a critical point for momentum if this gets S/R flipped. Flip $245 and I think we see $275 quickly,” he said

Image Courtesy of Cactus. Chart via TradingView.

A rejection at this level, however, could strike a significant blow to Ethereum’s underlying strength.

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Charts from TradingView.

This Technical Indicator Shows Bitcoin is About to See Wild Volatility

Bitcoin

This Technical Indicator Shows Bitcoin is About to See Wild Volatility


  • Bitcoin’s consolidation phase has persisted despite many analysts anticipating volatility during yesterday’s weekly candle close
  • The crypto is still trading in the lower-$9,000 region and is showing few signs of garnering any strength
  • Analysts are now noting that it could soon see some wild volatility, however, as BTC’s Bollinger Bands haven’t been as tight as they are now since November of 2018
  • This was just before the cryptocurrency faced the massive selloff that caused it to slide towards $3,000
  • Some analysts are noting that signs are suggesting this volatility will favor buyers

Bitcoin and the aggregated cryptocurrency market have been flashing mixed signs throughout the past several days and weeks.

Although most altcoins remain in firm bear territory, BTC appears to be in a precarious position as it hovers towards the lower end of its long-held trading channel.

Analysts are now noting that the benchmark cryptocurrency may soon provide the crypto market with a decisive trend, as one indicator is suggesting that the crypto is gearing up to make a massive movement.

While looking towards its lower time frames, Bitcoin is expressing some signs of strength. This could mean that the next movement will favor buyers.

Bitcoin’s Bollinger Bands Historically Tight; Signal Volatility is Looming

At the time of writing, Bitcoin is trading up marginally at its current price of $9,310, marking a notable climb from recent lows of $9,100 that were set early yesterday morning following the rejection it faced at $9,400.

Bull’s ability to guard against a decline to $9,000 is undoubtedly positive, and the slight uptrend seen by the crypto over the past several hours does bode well for its short-term outlook.

Nevertheless, this price action still just marks a bout of sideways trading, but Bitcoin’s Bollinger Bands suggest that this may soon come to an end.

While pointing to this technical formation, one popular analyst explained that the last time the crypto’s bands were this tight was right before the November 2018 plunge.

“1D BTC: bbands havent been this tight since Nov 2018,” he said.

Bitcoin

Image Courtesy of Josh Olszewicz. Chart via TradingView.

BTC’s Low Time Frame Strength May Bolster Mid-Term Outlook

Bitcoin is showing some signs of low time frame strength, which, if built upon by bulls, could help boost its mid-term outlook.

One trader spoke about this in a recent tweet, noting that BTC’s last range-low sweep and subsequent bounce is bullish, but its reaction to its Monday high of just under $9,400 is now the key level to watch.

“The fact we didn’t get any follow through after the sweep of the highs in the grey circle but instead swept the lows and pumped is kinda bullish imo. Expecting at least a test of last weeks Mon high which will be an important decision point,” he explained.

Image Courtesy of George. Chart via TradingView.

How Bitcoin responds to these short-term levels could help provide insight into which side this looming volatility will favor.

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Charts from TradingView.

Will Tezos Be the Altcoin to Unseat Ethereum on the Crypto Market

Tezos vs Ethereum Industry

Will Tezos Be the Altcoin to Unseat Ethereum on the Crypto Market


Ever since it’s record $232 million ICO (initial coin offering) back in 2017, Tezos (XTZ) has earned a justifiable amount of buzz in the crypto world. But does the Swiss-US joint venture have legs? 


First off, it’s important to understand what makes Tezos stand out among the thousands of cryptocurrencies on the market. XTZ utilizes a proof-of-stake based consensus model, which, unlike Bitcoin and Ethereum’s proof-of-work models, isn’t dependent on mining for its blockchain protocol. 

Instead, Tezos employs a more democratic model where all stakeholders have a hand in managing the protocol in what is known as a “self-amending blockchain.” One of the big takeaways from this model is that it avoids the issue of hard forking into two different blockchains. Hard forking is what caused bitcoin cash to break off from bitcoin and Ethereum to break off from Ethereum classic. 

In comprehensive terms, Tezos uses a “formal, on-chain mechanism for proposing, selecting, testing, and activating protocol upgrades.” It results in a uniquely formalized process, in which users have control of what happens to updates, as long as it’s within the Tezos protocol. 

It all adds up to some exciting potential for Tezos, which has generated some major public enthusiasm and investor interest. The Bank of France is testing out a Tezos node, and a tech investment firm called Silicon Valley Coin chose Tezos (noticeably over Ethereum) to tokenize its fund.

 XTZ is also making a lot of noise on the STO (security token offering) market, with global investment banks like BTG Pactual, tZERO, and Alliance Investments contributing to a reported $2.6 billion-plus in STOs deployed on the Tezos blockchain. 

So, will all this buzz and heightened interest result in Tezos being the next altcoin to go boom? Or is it all just hot air? Check out eToro’s video to find out more about Tezos and if it has what it takes to rival Ethereum as the no. 2 cryptocurrency on the market. 


Disclaimer: The information presented here does not constitute investment advice or an offer to invest. The statements, views, and opinions expressed in this article are solely those of the author/company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in any cryptocurrency, blockchain project, or ICO, particularly those that guarantee profits. Furthermore, Bitcoinist does not guarantee or imply that the cryptocurrencies or projects published are legal in any specific reader’s location. It is the reader’s responsibility to know the laws regarding cryptocurrencies and ICOs in his or her country.


 

Stock Market Sell Trigger Could Drag Bitcoin Down Later This Month

bitcoin stock market Bitcoin

Stock Market Sell Trigger Could Drag Bitcoin Down Later This Month


Bitcoin continues to trade sideways, but also has been unable to shake an ongoing correlation with the stock market. 

If the cryptocurrency doesn’t break out soon and break free from the shackles of the S&P 500, it could drag Bitcoin down at the end of the month.

Is Bitcoin Waiting For The Stock Market To Break Down?

For nearly two months straight now, Bitcoin price has been locked in a tight trading range. Volatility has been declining, and everyone is watching and waiting for what they expect to be a major, explosive move.

But even despite best efforts from both bears and bulls to break the range, things just keep pacing sideways. Concerning data shows that this could remain a lot longer than investors would hope or expect.

The boredom in the otherwise notoriously volatile asset class is essentially the max pain scenario for crypto traders.

RELATED READING | HOW BITCOIN OUTPERFORMED BOTH THE S&P 500 AND NASDAQ IN FIRST HALF 2020

Those accustomed to Bitcoin’s wild price swings are now looking elsewhere, to altcoins like Chainlink, Tezos, or DeFi tokens.

Bitcoin may be waiting for the stock market to break down, and that could be coming towards the end of the month.

bitcoin stock market sp500 spx

BTCUSD SPX Correlation Line Chart | Source: TradingView

Q2 Earnings Reports Coming Late July Could Be Straw That Breaks The Camel’s Back

The first quarter of the year took the S&P 500 to a new all-time high. Meanwhile, Bitcoin price was trading above $10,000. But Black Thursday and the pandemic had other plans and resulted in the stock market closing its worst quarter on record.

Now, the second quarter of the year has come to a close. The major corporations or companies listed on the stock market revealing their earnings could cause markets to collapse again.

The economy is on thin ice. A major stock market crash has been all but erased and kept afloat by stimulus money and Fed money printing. But the fragile market could collapse at any moment.

Come the end of the month, the sell trigger could arrive by way of company second-quarter earnings reports coming to light.

With Q2 now in the history books, businesses across the United States will reveal their revenue and earnings for the first half and the second quarter of the year. Q1 was already a struggle for most companies, which only lost March revenue due to quarantine conditions.

RELATED READING | ECONOMIST WARNS OF 1929-LIKE SECOND LEG DOWN; WILL BITCOIN FOLLOW?

In Q2, however, nearly the entire quarter was spent in lockdown, with things only just now starting to reopen in stages.

Negative performance in Q2 could be the Jenga-piece that sends markets toppling down when pulled later this month, and due to Bitcoin’s ongoing correlation with the S&P 500, it could be disastrous for the cryptocurrency.

Failure to break up through resistance here will have exhausted significant buying at this price level. It would also set a lower high, and if a lower low is set next, the crypto market could be in trouble and any new bull market delayed further.

There seems to be no escaping the potential impact of the pandemic, and even though stocks have sustained, they’re on thin ice and any pressure could cause another Black Thursday style selloff.

Worse yet, cases of the virus are still climbing in the United States, signaling that Q3 and Q4 may not be much better for these battered and beaten businesses, nor will it be for Bitcoin.

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Analyst: It’s “Hard to See” Ethereum Going Fully Bullish Without Wall Street

bitcoin price Ethereum

Analyst: It’s “Hard to See” Ethereum Going Fully Bullish Without Wall Street


Despite a brutal bear market that shook out most investors, Ethereum is fundamentally stronger than ever.

David Hoffman, the CCO of RealT and a podcaster in the industry, accentuated this in the tweet below. The tweet notes that a number of Ethereum’s usage metrics and use cases are at all-time highs, despite the meager price action.

With these metrics in mind, many investors have begun to argue that a gargantuan ETH rally is incoming.

But an analyst has said that it’s “hard” for him to reasonably expect Ethereum to see a big move. The reason: ETH has yet to see “real, institutional/macro fund flows.”

Why Ethereum Won’t See a Big Move to the Upside

According to the cryptocurrency analyst, while altcoins can go parabolic at current prices, Ethereum and Bitcoin are unlikely to follow.

This is purportedly due to the fact there is not yet sustainable and notable Wall Street capital flows into these assets:

He added in a later tweet that this reason is why it’s “hard” for him to see or excited for “a big ETH rally even though Crypto Twitter keeps calling it.”

Unless Ethereum sees a whole “different level of capital” inflows, ETH is unlikely to make a move with “BTC range-bound,” the analyst concluded.

Will Wall Street Money Ever Come? 

With Ethereum’s long-term performance purportedly predicated on Wall Street, it’s worth asking if that money will ever come.

From a pure product standpoint, it may seem this is the case. $2 trillion asset manager Fidelity Investments, the CME Group, and other service providers are expected to soon offer Ethereum products to Wall Street.

The issue is that existing fund managers in the space currently do not see ETH as a viable investment.

Michael Novogratz — the CEO of “crypto merchant bank” Galaxy Digital — said in a tweet earlier this year that Ethereum remains in a “proving phase.”

This comment was predicated on the fact that Ethereum is not yet the “trust level” that most developers are working with. This is important as the main advantage of ETH over BTC is its smart contract capabilities.

Novogratz’s thoughts were echoed by Jeff Dorman of Arca. He argued that since ETH is correlated with small cryptocurrencies, there’s little value in owning it.

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Analyst: It's "Hard to See" Ethereum Going Fully Bullish Without Wall Street