Bitcoin “Buy” Signal Gets Traders Excited as Dollar and Gold Extend Losses

Audy Castañeda
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Bitcoin “Buy” Signal Gets Traders Excited as Dollar and Gold Extend Losses

Nothing stands in the way of Bitcoin’s latest renaissance, even as gold falls and the US dollar slows its advance.

Bitcoin (BTC) closed above a crucial level on April 20 as the daily chart offered a long-awaited “buy” signal. Data from Cointelegraph Markets Pro and TradingView confirmed a daily close at $41,500 on Bitstamp on Tuesday. Strong performance, and sustained gains mean further rallies should follow, according to a trader watching a buy/sell indicator on daily periods.

The macroeconomic picture also favored Bitcoin on the day, after the US dollar found resistance to its own bull run. The US dollar money index (DXY) fell back after hitting 101 on Tuesday, its highest level since April 2020.

“We expect DXY correction, fueling BTC rebound,” replied popular trader Crypto Ed.

Gold also faced initial difficulties, shedding 2.6% from its highs of $1,998 earlier in the week.

However, BTC price action remained close to the daily close as a fellow trader and analyst Rekt Capital predicted turbulence to come in the longer periods.

“Bollinger Bands are tightening in price,” he told his Twitter followers, referring to the Bollinger Bands volatility indicator on the weekly chart. Then he added that, “this indicates increasing-price compression that often precedes strong volatility.”

Analysis Advises Caution on BTC

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair breaking above $41,000 on Tuesday, hitting five-day highs on Bitstamp.

In a refreshing change from the gloomy atmosphere over the holiday period, the largest cryptocurrency began to copy what gold had achieved days before, the latter since declining from $1,998 to $1,960 per ounce.

Equally energized, however, was the US dollar, which continued to consolidate its strength in a potential ongoing headwind for BTC.

The US Dollar Currency Index (DXY) held above the crucial 100 mark on the day, with analysts previously predicting that its next move would be a watershed moment for cryptocurrencies.

As crypto sentiment emerged from “extreme fear”, monitoring resource material indicators nonetheless called for a sober assessment of BTC price action.

Several moving averages, Twitter user @ MI_Algos said on Tuesday, April 19, needed to recover before the outlook could fundamentally change:

“Before you get too excited about yesterday’s #Bitcoin PA, remind yourself that bulls need to reclaim these key moving averages to validate a trend reversal. To avoid potential bull trap, watch for volume and wait for confirmations.”

No Missing “Buy the Dip” Signals

On-chain metrics were just as positive on the day, with several Cointelegraph notes continuing to suggest the completion of a floor structure.

Among them was the Bitcoin reserve risk chart, now firmly in its launch zone in what has historically advanced the start of bullish phases.

When it returned to the target zone, analyst Philip Swift described it as “btfd territory.”

In other words, those who buy BTC at current reserve risk levels have had a better chance of making “superior” profits in the end.

By Audy Castaneda

Avalanche Performance in 2022 Compared to Previous Quarters

Audy Castañeda
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Avalanche Performance in 2022 Compared to Previous Quarters

The first quarter Avalanche implemented several strategies that marked a constant growth, the consolidation of the use of the network, the financial performance, and its infrastructure.

Recently was the release of Avalanche Q4 2021 vs. Q1 2022 Development vs. Q1 2022 Comparison Report, tracking Avalanche network growth and progress toward optimization and expertise of the user. Cryptocurrency expert research firm Messari.io released the information.

During the fourth quarter of 2021, the Avalanche network evidenced a considerably important positioning, thanks to the Ethereum-Avalanche Bridge, the Avalanche Rush liquidity program, the main exchange listings, and the high-level partnerships that managed to materialize.

All this brought with it the increase in its user base and the attraction of new people and institutions in its economy, thus reaching record highs in active addresses, daily transactions, total value locked (TVL), and market capitalization. However, this was no guarantee that the network would continue to grow or remain stable.

For the first quarter of 2022, the platform carried out several strategic advances that meant for Avalanche, a constant growth, the consolidation of the use of the network, the financial performance, and the infrastructure of the network.

Among these key developments is the continued rollout of Avalanche Rush, the ecosystem fund called Blizzard, the development of the Ethereum Virtual Machine (EVM) subnet, and the introduction of the Multiverse subnet incentive program and the Culture Catalyst fund.

Network Overview

However, according to the above mentioned, the Avalanche network experienced moderate growth, in relation to the previous quarter, and a stabilization in its key metrics throughout the network. Although market capitalization “was relatively flat” (-5.4%), Avalanche saw continued upward trends in usage and revenue generation, as well as a move toward a favorable primary valuation.

The network’s average daily transactions experienced an increase of (82.8%), almost doubling its value for this quarter, total revenues reflected a growth of 72.7%, and the price/sale ratio (P/S), and continued to settle, with a relative price to earnings ratio going from 160x to 91x.

As a result, the network reached an all-time high of 140,000 active addresses in the month of January, due to the adoption of more daily active users in this first week of the month, compared to active addresses in the month of October 2021. For the fourth quarter, the network managed to average around 70,000 active addresses, and for the first quarter, reaching a stable range with an average of 92,000 daily active users.

Avalanche Growth in the First Quarter of 2022

As mentioned before, in the first quarter of 2022, Avalanche saw growth and development throughout its ecosystem. These strategic advancements have meant steady growth, consolidation of network usage, financial performance, and network infrastructure for Avalanche.

One of the key events with which the Avalanche ecosystem kicks off the first quarter of 2022 is the launch of the Subnet-Ethereum Virtual Machine, a custom virtual machine that allows users to create their own configurable EVM-compatible Blockchain. Pangolin’s announcement of its own subnet also took place. In addition to making strategic alliances, with additional business partners, for the design and construction of services based on smart contracts to improve autonomous mobility.

Last January, it also highlights the fact that the crypto fund manager, Bitwise, reestablished the Bitwise 10 Large Cap crypto index and also added AVAX. Later, Terra’s proposal to bring UST as Avalanche with Liquidity Mining Proposal #3 was approved.

By February 2022, street artist Banksy’s Avalanche fractionalized NFT, Banksy NFT generated interest and purchases by celebrities on the order of Paris Hilton. Later in March, the Particle Banksy collection would be sold.

In the middle of the month, the Avalanche Andretti team made its debut at the Mexico City E-Prix, the Formula E World Championship, thanks to a sponsorship deal with Andretti Formula E Autosports.

During March, the increase in daily transactions was largely due to the launch of the Crabada and DeFi Kingdoms subnets, the former running the testnet and the latter live on the mainnet. Also sparked was the launch of Avalanche Multiverse, by the Avalanche Foundation, a $290 million ($4 million AVAX) incentive program. Wildlife Studios joined the Multiverse program, and it will extend its flagship game, Castle Crush, on its own subnet, in order to integrate NFT and tokens into the game.

By Audy Castaneda

ApeCoin: APE Price Rises 55% in three Days as ‘BAYC Land Launch’ Rumor Goes Viral

Audy Castañeda
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ApeCoin: APE Price Rises 55% in three Days as ‘BAYC Land Launch’ Rumor Goes Viral

Owners of the popular non-fungible tokens (NFTs) of the Bored Ape and Mutant APE could receive virtual lands in Yuga Labs’ future “Otherside” metaverse.

The price of ApeCoin (APE) has spiked on expectations that it will become a de facto payment token in an upcoming metaverse land sale.

The price of the APE rose almost 28% in one day, to exceed $17 per token on April 20. The rally came as part of a bounce from three-day lows below $11, marking a 55% gain.

A rumor circulating on social media since April 18 suggests that owners of NFTs from the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) collections could receive virtual land on the long-awaited “Otherside” metaverse platform from Yuga Labs.

Otherside will be an MMORPG game where players will be able to use their NFTs as avatars or native characters. A leaked investor report showed that Yuga Labs expects to make $178 million from virtual land sales, with APE acting as the de facto token to process such purchases.

Some BAYC NFT owners claimed that Yuga Labs would sell Otherside’s virtual lands through a Dutch auction. By doing so, the company could set the minimum offer at 600 APE, about $10,700 at current prices.

Considering this potential use case, demand for ApeCoin may increase, which could partly explain APE’s bullish momentum over the past three days.

APE amid Bullish Breakout

The latest buying spree in the APE spot market caused the APE/USD pair to break out of a classic bullish continuation pattern.

As Cointelegraph previously reported, breaking above the so-called “bull pennant” on significant volumes could see ApeCoin rally above $40 in the coming months.

Meanwhile, if the technical pattern turns out to be a “symmetrical triangle”, APE’s upside target will be near $22.

ApeCoin is now targeting the 0.236 (~$16) Fibonacci retracement chart line, drawn from the $41 high to $8.50 low, as its interim resistance. A pullback from said price top could send APE towards the top of the triangle near $12.50.

Predictions for APE in the Second Quarter of 2022

CryptoPredictions provides daily, monthly and yearly predictions for ApeCoin and other cryptocurrencies. Although it provides one of the most accurate predictions for ApeCoin on the market, you should never take them as financial advice. Always do your due diligence before investing.

ApeCoin Price Prediction for April 2022: ApeCoin started April 2022 at $12,701 and the prediction is for it to end the month at $13,817. During April, the forecast high price of APE is $17,126 and the low is $11,646.

ApeCoin Price Prediction for May 2022: ApeCoin forecast is to start May 2022 at $13,818 and end the month at $13,759. During May, the highest APE forecast price is $17,272 and the lowest is $11,745.

ApeCoin Price Prediction for June 2022: ApeCoin will likely start June 2022 at $13,749 and end the month at $13,505. During June, the forecast high APE price is $17,186 and the low is $11,686.

By Audy Castaneda

BTC Price Hits 10-Day High as Trader Says $42,000 Level Is Where Bitcoin “Gets Interesting”

Audy Castañeda
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0
BTC Price Hits 10-Day High as Trader Says $42,000 Level Is Where Bitcoin “Gets Interesting”

Brisk gains meet resistance at $42,000, but stock markets may be to blame.

Bitcoin (BTC) bulls remained strong on April 20 as the Wall Street open saw a return to the $42,000 level.

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair hitting $42,220 on Bitstamp, its highest level since April 11.

After adding as much as 9.3% against local lows on April 18, the pair was now lined up for “interesting” behavior, according to Cointelegraph contributor Michaël van de Poppe.

The $42,000 Level Proves Troublesome

“Things get interesting at the $42,000 level,” he told his Twitter followers.

Like others on the day, Van de Poppe highlighted the decline in US dollar strength as a boon to BTC price performance.

However, the volatility was very noticeable on the return to the significant $42,000 level, as others expressed a lack of faith in Bitcoin’s continued gains.

For popular trader Josh Rager, nevertheless, the April 18 crash to $38,600 and subsequent rally was a pattern to watch.

“The last couple of moves led to over 30% uptrends,” he noted on April 19.

“Yesterday caught a lot of people off guard, although it wasn’t as deep a pullback like the last one. You could still see Bitcoin go up here over the next week, take it day by day,” Rager added.

US Stocks Fail to Impress after Earnings

On the macro side, fluctuations in the stock came under fire from Rager, who argued that changes in sentiment were hampering performance.

Unusual moves in Netflix shares became a talking point the day after the profit loss sparked a sell-off.

However, according to the Fear & Greed Index Sentiment Gauge, the mood was better overall on April 20, with the index hitting its highest April score yet: 50/100.

The Crypto Fear & Greed Index, by contrast, languished in the “fear” zone at 27/100.

By Audy Castaneda

Spain and Argentina Are among the Twenty Countries Benefiting Most from the Investment in Cryptocurrencies

Alexander Salazar
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Spain and Argentina Are among the Twenty Countries Benefiting Most from the Investment in Cryptocurrencies

Spain, Brazil, and Argentina were three of the 20 countries with the most profits from cryptocurrencies. The gains made by Colombia, Mexico, and Venezuela reached less than 1% of the total.

Spain and five Latin American countries received USD 10.7 billion in profits from the sale of Bitcoin and other cryptocurrencies by 2021. In that way, they ranked among those nations whose citizens got the most benefits from those assets. Latin America accounts for 6.62% of the global profits recorded, estimated at over USD 162,700 million.

The latest report from Chainalysis indicates that the distribution of cryptocurrency earnings reached those figures over the past year. According to the study, global profits totaled USD 32.5 billion in 2020 but increased by 400% in 2021. Last year, there was a great boom in the cryptocurrency market, whose capitalization almost hit USD 3 billion. That occurred along with the all-time high of Bitcoin, close to USD 69,000.

The United States leads the countries with the highest gains in cryptocurrencies (around USD 46,954 million), 28.9% of the total. The United Kingdom (5.01%), Germany (3.58%), Japan (3.38%), and China (3.11%) complete the top five list.

Spain occupies 11th place with earnings of USD 3,339 million, representing 2.1% of the total. It precedes Brazil, which ranks 15th with USD 2,562 million, and Argentina is in 20th place with USD 1,866 million.

The other three Latin American countries in the top 50 are Mexico, Venezuela, and Colombia, each with less than 1% of the total. The first two exceeded USD 1,000 million in profits, while Colombia reached USD 787 million.

The Earnings in Cryptocurrencies Exceed Traditional Measures of Economic Progress

Chainalysis indicates that collective cryptocurrency investment performance in many countries exceeds rankings on traditional measures of economic prosperity, like Gross Domestic Product (GDP). The report cites that Turkey is 11th in GDP with USD 2.7 billion but 6th in cryptocurrency gains with USD 4.6 billion.

Vietnam occupies 25th place in GDP at USD 1.1 trillion but is 16th in cryptocurrency earnings at USD 2.7 billion. In Latin America, Venezuela stands out in 78th place in GDP with USD 144 billion. However, it is number 33 in realized cryptocurrency gains with USD 1.1 billion.

People use cryptocurrencies differently in Latin America, depending on the country. For example, Venezuelans turn to crypto-assets out of necessity, but Brazilians buy them to speculate and save.

The most recent Chainalysis report highlights that both countries show marked inequalities in market maturity. That leads to differences in the use of cryptocurrencies and P2P platforms, the latter of which is higher in Venezuela in percentage terms.

The Brazilian market consists of much larger transactions with a higher share of activity on DeFi platforms. Meanwhile, Venezuelans conduct smaller transactions and have higher P2P activity, indicating greater need-driven adoption.

Cryptocurrencies play an increasingly relevant role in the economy, and citizens of many countries are aware of that. Many people invest in them to store value or hedge against inflation. Some others even use them to circumvent the effects of international restrictions.

By Alexander Salazar

Jack Dorsey does Not Show Interest in Ethereum Because it has a Lot of Flaws

Jenson Nunez
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Jack Dorsey does Not Show Interest in Ethereum Because it has a Lot of Flaws

Dorsey’s comments reiterate his “maximalist” stance on Bitcoin and his denial of other digital assets.

The co-founder of Twitter and CEO of Block, who is a strong supporter of Bitcoin, heavily criticized Ethereum this week. In a Monday tweet, Dorsey dismissed Ethereum as saying the platform is “full of flaws” and expressed complete disinterest in projects built on top of the blockchain.

Buterin and Dorsey Agree on Something

The comment did not come in vain. It all started with a post made by the founder of Ethereum, Vitalik Buterin, who referred to billionaire Elon Musk’s proposal to purchase the social media platform Twitter. This subject has given much to talk about about about in the technological sphere in the last week.

The CEO of Tesla recently acquired a 9.2% stake in Twitter. The news was followed by a $41.3 billion offer from the businessman to purchase the company officially.

Buterin said in a tweet that, contrary to popular opinion, he is not entirely opposed to the idea of ​​Musk running Twitter. However, he indicated that he fears the dangers that very wealthy entities could take power over social media companies. The comment was, in turn, a response to a tweet by economist Robin Hanson.

Dorsey, who stepped down as Twitter CEO last year, agreed with Buterin. He tweeted that he does not think any individual or institution should get control over social media or media companies. Media companies should be an open and verifiable protocol.

“I am not interested in [Ethereum].”

The discussion did not end there, as it was followed by a response from the Twitter account of DeSo, a new blockchain-based decentralized social network project. The project added that it spent years working to solve all the struggles regarding social media and data centralization.

It was there that Dorsey gave its response by criticizing Ethereum. In his response, he highlighted that if DeSo is an Ethereum-based protocol, he is not interested. Luckily for the project, it is not based on that blockchain, which could stress that Dorsey already intended to speak against ETH to get Buterin’s attention.

Other industry representatives also joined the debate, including Binance CEO Changpeng Zhao’ CZ’, who questioned whether this is not just how capitalism operates. He also said he believes “there is more than meets the eye” to Elon Musk’s takeover bid for Twitter.

Blue Sky, the Decentralized Sector of Twitter

Someone even asked Dorsey if this vision for social media wasn’t precisely what Blue Sky, a Twitter wing Dorsey created while he was still with the company, was pursuing, to which he replied that Twitter is not the owner. So a new owner of Twitter wouldn’t be relevant for some time. The funding would have to get reassessed. It’s been slow, but this is a new protocol in an open state.

Before leaving Twitter in November of last year, Dorsey worked hard to create a standard for social media platforms to follow more decentralized models. The initiative in question, Blue Sky, got started in 2019 and is currently led by Jay Graber, who previously contributed to the Zcash privacy coin project.

By: Jenson Nuñez

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