- Bitcoin price rose to a high of $44,100 on Coinbase on Tuesday as bullish sentiment strengthened.
- The flagship cryptocurrency’s market cap also cross above $850 billion.
- Analysts say a brief pullback is likely, though we could see prices rally to $47k-$48k.
Bitcoin (BTC) price broke past $43,000 on Tuesday afternoon, rising as high as $44,100 on major cryptocurrency exchange Coinbase. This follows the breakout to above $42k on Monday as the world’s largest digital asset by market capitalization continued to enjoy the latest bullish ride.
BTC is up 5% in the past 24 hours and 14% in the past week, trading at around $43,800. Its market cap has reached $850 billion after seven consecutive weekly green candles.
According to data from Coinglass, more than $100 million in Bitcoin liquidations have occured in the past 24 hours, with over $80 million in shorts.
BTC hits $44k, but is a pullback due?
On Tuesday, the upsurge happened after a brief retreat from above $43k area, and with price hovering at this yearly high, it’s possible an extension could see buyers retest a crucial resistance level analysts have pointed out.
According to crypto analyst Ali, a price correction for the benchmark cryptocurrency “is coming.”
While the market may still rally higher, the analyst sees a potential pullback as highlighted by the TD Sequential indicator on both the daily and 3-day charts. The retreat could happen “within the next 7 to 48 hours,” Ali added, basing his prediction on the charts’ outlook.
A #Bitcoin price correction is coming… The question is when?
Well, the TD Sequential indicator suggests that a potential $BTC price pullback could begin within the next 7 to 48 hours, based on the daily and three-day charts.
pic.twitter.com/UwI1IMq4jo
— Ali (@ali_charts) December 5, 2023
If Bitcoin continues higher, it could target the $47k-$48k area, which is a key resistance zone.
If you want to benefit from the next wave of creativity in the crypto space, you need to pick the right investments and strap yourself in for the long-term. The crypto space is incredibly volatile right now. So short-term gains aren’t as easy as they once were. But if you want the best possible portfolio for August and beyond, you might want to listen to what experts are saying. And they’re currently recommending 3 of the most creative tokens the space has seen some time, with potential to surge over the coming months and beyond. These tokens are PaintSwap, Shiba Inu and Uniglo. They all offer unique benefits for their holders, and could be a huge part of the crypto space. Now could be the time to add them to your portfolio right now. Let’s have a look at why…
Uniglo (GLO)
The team behind Uniglo have helped create some of the best crypto features we’ve seen in a long time. It’s completely deflationary, at a time when the economy needs it. That’s because it’s got a full asset-backed store of value, a gold standard for the crypto world and something fiat lost long ago. These assets are completely diversified, so the performance of any one of them won’t matter too much to the overall price of GLO, saving it from massive price dumps like those that are over-reliant on BTC.
GLO also uses a radical ultra-burn mechanism to continue to limit supply over time. By burning more tokens, GLO becomes more and more scarce, making it a completely deflationary coin, and one with a price people can have real faith in.
Shiba Inu (SHIB)
Some have questioned the fundamentals of SHIB in the past. But these questions have been answered by increased passive income options with SHIB, alongside massive token burns to shore up prices. One thing that can’t be questioned with SHIBA is how the team have managed to creatively market the coin. Shiba has shown the true potential of social media, and have arguably revolutionalized how other tokens look to promote themselves. Shiba still has potential, and already has an army of loyal fans. That’s why experts are still recommending SHIB for your portfolio.
PaintSwap (BRUSH)
PaintSwap has created an incredibly innovative platform that is fast becoming the ultimate NFT marketplace. It also offers yield farming options from NFTs, and a range of other creative features. It could become the go-to place to trade NFTs, and experts like its long-term potential.
Conclusion
GLO, SHIB and BRUSH all have a ton of potential in the crypto space. Experts think now is the perfect time to add them to your portfolio, to gear it up for gains over the coming months. Check them out immediately.
Find Out More Here:
Join Presale: https://presale.uniglo.io/register
Website: https://uniglo.io
Telegram: https://t.me/GloFoundation
Discord: https://discord.gg/a38KRnjQvW
Twitter: https://twitter.com/GloFoundation1
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Most major coins were trading in the green on Tuesday evening at press time, with the global cryptocurrency market cap rising 4.5% to $1.9 trillion.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin (CRYPTO: BTC) | 3.5% | 7.8% | $42,379.75 |
| Ethereum (CRYPTO: ETH) | 1.6% | 12.16% | $2,970.15 |
| Dogecoin (CRYPTO: DOGE) | 3% | 9% | $0.12 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Dash (DASH) | +13.75% | $130.62 |
| Algorand (ALGO) | +11.75% | $0.83 |
| ApeCoin (APE) | +11.4% | $11.36 |
See Also: How To Buy Bitcoin (BTC)
Why It Matters: Yields on U.S. benchmark 10-year Treasury bonds rose to 2.38% on Tuesday, which is the highest level since 2019, according to a report from Reuters.
As of Tuesday, the market is pricing in a 72.2% probability that the U.S. Federal Reserve will raise the fed fund rate 50 basis points in its May meeting. On Monday, this number stood at a little over 50%, according to Reuters.
U.S. equities markets closed higher on Tuesday. The S&P 500 was up 1.13% at 4,511.61, while the Nasdaq ended the day 1.95% higher at 14,108.82. At press time, U.S. futures traded largely flat.
Cryptocurrency bears remained frustrated on Tuesday as the market was buoyant alongside equities.
The buy-side demand for Bitcoin appears to be driven by the United States and the European Union markets, while the majority of sell-side pressure originates during Asian trading hours, according to a note from Delphi Digital.
The geographical story has remained consistent from 2020 to 2022. Currently, Europe is providing the largest bid support, as per Delphi Digital. Conversely, Asia has sustained a heavy sell-side dominance since December 2021.
Bitcoin US/EU Month-Over-Month Price Change — Courtesy Delphi Digital
Bitcoin Asia Month-Over-Month Price Change — Courtesy Delphi Digital
Cryptocurrency investor Lark Davis tweeted that the price of Bitcoin has now been under the 200-day moving average for longer than the big correction seen in 2021.
The price of #bitcoin has now been under the 200 day moving average for longer than the big correction of 2021.
I’ll just keep accumulating. pic.twitter.com/lZdTeN6L6f
— Lark Davis (@TheCryptoLark) March 22, 2022
Edward Moya, a senior market analyst with OANDA, said in an emailed note that Bitcoin lacks the catalysts to break beyond the $45,000 barrier.
“Bitcoin is once again nearing the upper boundaries of its $37,000 to $45,000 zone, but still doesn’t have a clear catalyst to break it.”
Read Next: Bitcoin Lookalikes Are Soaring This Week: What’s Going On?
As someone who has largely cashed out of the cryptocurrency madness to actualize the American dream, I’m in an admittedly enviable position to not give too much of a rat’s rear quarters where popular coins like Cardano (CCC:ADA-USD) end up.
Source: Shutterstock
That’s not to say that I’m an ADA hater, because I’m not. I’ll disclose it right now. I hold a long position.
So, why the cautionary take on cryptos over the last few months? Certainly, it’s not immediacy bias as digital assets have been all the rage recently. Instead, it’s the antithesis of immediacy bias, whatever that term might be. As someone who has witnessed the ebb and flow of this still-burgeoning market for years, you can say that I’ve become somewhat shell-shocked.
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Frankly, it’s difficult not to feel uncomfortable about cryptos and the present euphoria. For instance, when I was previously talking about this sector this year, there were around 12,000 different coins and tokens you can invest in. Today, the figure has crossed above the 13,300 mark, according to Coinmarketcap. That makes the sector, including established altcoins like Cardano suspect.
In my view, the mania over cryptos reminds me about the tech bubble during the late 1990s to early 2000s. It’s not just about the searing valuations but the nature of the bubble. You’ll recall that several companies were launching their initial public offering, even if they weren’t profitable businesses.
Back then, we saw a record number of companies go public. Fundamentally, this is the same story for cryptos except that the backdrop is decentralized.
Of course, some will push back and say that Cardano specifically is tied to a utilitarian blockchain architecture. My colleague Faizan Farooque made this point recently, arguing that “a strong economic moat and multiple use cases mean the future is bright” for ADA.
Don’t Get Distracted with the Cardano Architecture Argument
Because I hold some Cardano coins, you might make the assumption that I don’t have the greatest confidence in a negative trajectory for ADA. And you would be correct. Several weeks ago, I mentioned that I sold a significant stake but I held some in case stuff happened.
In the crypto market of 2021, I must respect the adage that the market can stay irrational for longer than I can stay solvent. At the same time, my lack of complete confidence should not be interpreted as a green light to take a huge risk with Cardano.
Mainly – and this might be upsetting to crypto supporters – I now find the utility argument for cryptos (whether that be Cardano or anything else) overrated. I get it. Advocates will throw out terms like blockchain, distributed, decentralized, proof of stake, peer to peer. But does anybody want to ask the bigger question?
Look, centralized protocols – such as our fiat-based monetary and banking system – have many problems. One of the most pressing problems of centralization is the large number of the unbanked. Further, when you have centralization, you have centralized authorities – and those authorities invariably discriminate against “downwind” demographics.
You may consult various resources that describe systemic barriers, systematic inequality and the woes of de facto economic segregation as evidence pointing to the flaws of centralized protocols. Again, I get it. Some components of centralization stink.
But will decentralization – that is, doing the opposite of what society is doing now – solve the problem?
Not only will decentralized protocols create its own unique problems, it might make the situation worse. That’s why I’m hesitant on Cardano and cryptos in general. The underlying blockchain technology requires the consensus of the masses – and the masses are not reliable.
Just Focus on the Technicals
Turkish playwright, novelist and intellectual Mehmet Murat Ildan stated once that “In low intelligent ignorant societies, the clever are denigrated and the stupid are belauded; the brainy are stoned and the dull are held in high esteem!”
I’m not going to say that crypto proponents are dimwitted but if you think about it, open-source blockchain protocols invariably depend on the ethos of either the wealthy or the early backers of a particular network. But what exactly are their qualifications to dictate the trajectory of a digital community other than they have a lot of money?
Democratization? No. I think what you will find with decentralization is pure anarchy, the ignorance of the masses – or at least the masses with cash – becoming the law of the land.
Therefore, if you’re going to gamble on Cardano, I would completely ignore the fundamental argument and stick with technical analysis or whatever other methodology you’re comfortable with. Even just banking on the straightforward greater fool theory will probably be more constructive than assessing Cardano’s fundamental value.
On the date of publication, Josh Enomoto held a LONG position in ADA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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