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Bitcoin hits $25K as bearish voices call BTC price ‘double top’

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Bitcoin hits $25K as bearish voices call BTC price ‘double top’

Bitcoin (BTC) spiked through to $25,000 for the first time in months on Aug. 14, but traders refused to take any chances on a bull run.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Weekend produces brief $25,000 tap for BTC

Data from Cointelegraph Markets Pro and TradingView tracked a sudden run-up on BTC/USD, which hit $25,050 on Bitstamp in a $350 hourly candle.

The move took the pair to a new personal best since June 13, erasing more of the losses seen that day in what remains a significant BTC price correction.

Analyzing the market setup, however, familiar bearish tones remained. 

For popular Twitter account Il Capo of Crypto, the latest highs appeared to provide the last piece of the puzzle before a new downtrend set in.

Il Capo had previously called for a peak of $25,000-$25,500 before Bitcoin changed direction to head lower.

Little bit higher and

— il Capo Of Crypto (@CryptoCapo_) August 13, 2022

“$25k reached but no bearish signs yet on ltf,” they added in a subsequent post.

“We could see another leg up to 25400-25500, but imo the top of this bear market rally is very close. Most altcoins are reaching major resistances.”

Cautious, too, was fellow trader Crypto Tony, who demanded Bitcoin flip its multi-month range resistance at $24,500 to support to consider long positions.

— Crypto Tony (@CryptoTony__) August 14, 2022

Others were hopeful of trend continuation, including Dave the wave, who eyed encouraging signs on Bitcoin’s moving average convergence divergence (MACD) indicator as proof.

A classic trend indicator, MACD allows traders to measure the strength of a particular chart trend, giving buy and sell signals over multiple timeframes in the process.

“Plenty of upward pressure building at a level of resistance,” he summarized on the day:

“Weekly MACD about to cross from an over-sold position well below the zero-line. Bullish.”

BTC/USD annotated chart with MACD. Source: Dave the wave/ Twitter

Ether double down on $2,000

A more modest spike meanwhile played out for the largest altcoin Ether (ETH), which managed $2,030 on the day. 

Related: Bitcoin traders still favor new $20K lows as Ethereum hits $2K

After passing the $2,000 mark for the first time since May earlier in the weekend, ETH/USD appeared to be in consolidatory mode with no significant momentum continuing.

ETH/USD 1-hour candle chart (Binance). Source: TradingView

Looking forward, however, there were plenty of traders willing to bet on bullish times ahead.

“We continue to follow the structure of the last cycle perfectly and most people are still in disbelief. $5.000 Dollar (+) for $ETH isn’t just a meme,” Moustache argued alongside a comparative chart of Ethereum now versus 2016-17.

Should a retracement set in, meanwhile, Jackis eyed old resistance on the ETH/BTC pair as an entry point.

How can anyone be bearish on #Ethereum & #ETH / #BTC here is beyond me.

This is the macro chart and we just got a 2M breaker.

Whenever we get the retest of 0.0725 I’ll be bidding with my networth targeting 0.115

Bullish for the next two years pic.twitter.com/CYRxNaMfLF

— JACKIS (@i_am_jackis) August 13, 2022

ETH/USD still circled $2,000 at the time of writing, with ETH/BTC hitting 8-month highs.

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.

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Grayscale Launches New Investment Product While Bitcoin Trust Crashes to 35%

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Grayscale Launches New Investment Product While Bitcoin Trust Crashes to 35%

Grayscale Investments is offering investors an opportunity to invest in Bitcoin mining hardware in the bear market.

The new investment opportunity, called the Grayscale Digital Infrastructure Opportunities LLC (GDIO), is now open to qualified individual and institutional investors, even as the asset manager allows ETF-related court proceedings to run their course.

Grayscale putting capital to work

Grayscale will use investor capital from the GDIO to buy mining hardware for a minimum of three years. It will use the hardware to mine and subsequently sell bitcoin. Mining is the energy-intensive process undertaken by a computer network to create a new transaction block and verify it. The node in the network that creates the block is known as a miner. A miner is rewarded in bitcoin for his effort, which typically requires large amounts of cheap electricity and computing power.

Part of the proceeds Grayscale will earn from its efforts will be paid out quarterly to GDIO investors.

“Grayscale’s unique position at the center of the crypto ecosystem enables us to create offerings that allow investors to put capital to work through differing market cycles,” stated Michael Sonnenshein, Grayscale’s chief executive.

GDIO represents another way the company has sought to provide investors with exposure to bitcoin without directly holding the asset.

Investors can also purchase shares from its GBTC trust and gain exposure to bitcoin through Grayscale’s legally regulated business in the U.S.

But Grayscale has a problem. Because investors cannot redeem shares in the trust for bitcoin, the price per share has dropped drastically, trading at a discount of 35% to its Net Asset Value. 

At the close of the trading day on Oct. 5, shares were trading at a shade over $12, despite being backed by $18.45 worth of bitcoin.

To mitigate this discount, Grayscale has pursued the conversion of GBTC into a spot bitcoin exchange-traded fund, which has so far been unsuccessful. The U.S. Securities and Exchange Commission denied the company’s latest application in June 2022, prompting Grayscale to pursue legal action against the federal agency. 

Nic Carter of Castle Island Ventures, a venture capital firm focused on early-stage public blockchain startups, said that Grayscale could wind down the ETF:

watching the GBTC discount. looks like ATL at -35%. on top of discounted spot BTC. paths to breaking open the piggy bank: SEC can approve ETF conversion, or Grayscale can wind down the trust themselves if they so choose.

— nic carter (@nic__carter) June 17, 2022

The SEC maintains that spot bitcoin ETFs are prone to underlying market manipulation.

Grayscale undeterred by SEC rejection

Despite consistent resistance from U.S. regulators, Grayscale launched its first European ETF in May 2022, which tracks the Bloomberg Grayscale Future of Finance Index, offering customers exposure to institutions at the crossroads of finance, technology, and cryptocurrencies.

Grayscale raised investors’ eyebrows recently when it announced that it had applied with the SEC to distribute 3 million ETHPoW tokens that were distributed to all Ethereum (ETH) holders after the controversial proof-of-work fork went live. 

At the time, Grayscale said it was seeking the rights to sell the tokens and pay out shareholders. 

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All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

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Colorado is accepting crypto for tax payments — it could be a mess or a shining example

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Colorado is accepting crypto for tax payments —  it could be a mess or a shining example

Colorado is now accepting crypto for tax payments — but if you choose to use that option, it could change the amount you owe…
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BNB Chain confirms BSC halt due to ‘potential exploit’

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BNB Chain confirms BSC halt due to ‘potential exploit’

Rumors of a significant hack on the BNB Chain were confirmed by the blockchain’s team, with all deposits and withdrawals suspended on the network…
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