The crypto bulls are gaining confidence as bitcoin rises while global stock markets slip back into the red.
Bitcoin has pushed up 18% over the last seven days to consolidate just below $7,000, and other large-cap-coins have followed suit. In the altcoin world, South Korean “Ethereum-killer” ICON has pushed up almost 40%, and MKR—the token of leading DeFi Dapp MakerDAO—is suffering from lost confidence.
Bitcoin reaches ‘make-or-break’ moment
Bitcoin traders are watching with wide eyes as the very monetary policy that irked Satoshi Nakamoto enough to invent Bitcoin is coming back into play.
As unprecedented Quantitative Easing programs are being enacted around the world, the Bitcoin network is preparing for the supply shock of the miner’s reward halving in May. Fund manager Tuur De Meester suggests the bitcoin halving might be better branded “Quantitative Tightening” to make it relatable to a mainstream audience.
With this bullish narrative being passed around Twitter, bitcoin has printed a bullish ascending triangle on the daily chart against resistance at $7,000.
A high-volume close above $7,000 would confirm a breakout and open the doors to test the next significant resistance level at $8,000. If bitcoin falls below $5,650 however, we could see more sellers jump in and push the price down to test new lows.
Several famous analysts have chimed in over the past few days to suggest that now is a critical’make-or-break’ time for bitcoin.
Mike Novogratz, the founder of crypto merchant bank Galaxy Digital, told CNBC that if “bitcoin was designed to be an alternative when central banks have run amok…It needs to rally this year,” he said. “If at the end of the year Bitcoin’s not a lot higher, I’m going to scratch my head and say, ‘Look, what the heck is going on?”
Veteran chartist Peter Brandt shares the sentiment. “For BTC, this is the perfect storm,” he tweeted in reference to global macroeconomic conditions. “If Bitcoin cannot rally on this, then crypto is in BIG trouble.”
ICON rebounds on partnership news
South Korea’s answer to Ethereum—ICON—has pushed up almost 40% this week and is now consolidating around $0.25.
The upswing comes on news of a partnership forged with Singaporean exchange BiKi, which aims to help the altcoin expand its reach beyond Korea into other Asian markets.
MakerDAO falls on hard times
Ethereum’s flagship DeFi protool Maker has fallen on tough times, and the MKR token is struggling to stay above $300.
The troubles began on “Black Thursday” March 12th, when a steep plunge in the price of Ether caused a cascade of liquidations, and a flaw in Maker’s system for generating collateralized debt positions left the protocol with $4 million Ether in losses.
This debt has now been sold in an emergency auction, with crypto-asset investment firm Paradigm buying up most of the collateral. But, confidence in Maker doesn’t seem to have been restored. The Maker token, which is used to pay transaction fees on the protocol, remains stagnant.
If key support at $280 is broken, then the token is likely to fall to new lows. To restore confidence in the coin, a strong break through $360 is needed.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.