Bitcoin price shows signs of a recovery, but analysts are uncertain whether the strongest part of the correction has passed.
Crypto Analyst Says Bitcoin Must Hold Above $51,800 As ETF Outflows Trigger Crash
The Bitcoin price continues to trend below $60,000 as a 20% decline triggered a brutal market-wide crash. This has exposed multiple critical support points for the cryptocurrency, some of which the price has already fallen below. In light of this, a crypto analyst known as Norok has revealed the level the BTC price must not fall below to maintain its bullish trend.
Bitcoin Price Must Hold Above $51,800
In an analysis posted on the TradingView website, crypto analyst Norok revealed that $51,800 is now the most important support level for Bitcoin. Norok pointed out that Bitcoin has since returned to its last support level which was last seen in December 2023, making this a crucial support.
In the meantime, the support that had been built up by bulls at the $62,000 level has since been broken by bears and has now been turned into resistance. Nevertheless, the crypto analyst does not believe that the Bitcoin price has turned bearish, despite the crash that has rocked the crypto market.
For Norok to turn bearish, he stated that the BTC price would have to break down below support at $51,800. According to him, such a move will invalidate whatever bullish thesis is in play for Bitcoin, ending the bullish trend of 2023-2024.
In the short term, Norok identifies $56,900 as a level that bulls must hold. He explains that this could help to reinforce the current bullish trend. “Price must hold here at this Support and then it can recapture the cloud to resume to Bullish Trend,” the crypto analyst said. “This is a highly decisive moment in Price action today.”
BTC Suffers As A Result Of ETF Outflows
One major driver of the Bitcoin price decline in the last few weeks has been a turn from inflows to outflows in Spot Bitcoin ETFs. Since these ETFs require the issuers to hold BTC to support the assets they are selling to investors, inflows are incredibly bullish as these issuers have taken to buying BTC to fulfill this requirement.
However, with investors beginning to withdraw their funds, the reverse has been the case, leading to a high selling pressure in the market. Spot Bitcoin ETFs have now recorded six consecutive trading days of outflows, reaching an all-time high outflow record $563.7 million on Wednesday, according to data from Coinglass.
If these outflows continue, then the BTC price could continue to decline, and at the current rate, the pioneer cryptocurrency might be testing Norok’s $51,800 soon enough. However, a turn toward inflows would mean issuers have to buy BTC and this can translate to a price recover.
Pantera invests in TON with high expectations for Telegram’s future
The Telegram-TON hookup opens up a broad spectrum of Web3 opportunities for Telegram’s 900 million monthly users, Pantera Capital said.
‘Mr. 100’ buys the Bitcoin dip for the first time since halving — Is the BTC bottom in?
Mr. 100, an entity previously identified as Upbit, has bought over $147 million worth of Bitcoin for the first time since the halving, suggesting an end to the current retracement.
Bitcoin On Track For $1 Million Per BTC “Fair Value”, Analyst Says
An analyst has explained how the “fair value” of Bitcoin appears to be on track to achieve the $1 million milestone by 2035.
Bitcoin Total User Count Could Forecast Fair Value Path Forward
In a new post on X, analyst Willy Woo has discussed about how the fair value of Bitcoin could look like in the future based on the growth curve in the total user count on the network.
The “total user count” here refers to the total number of investors present in the BTC space. Often, this metric is equated with the total number of addresses on the network carrying a balance, but in reality, it’s not the most accurate method as a lot of investors own multiple wallets.
To make an estimation of an adoption curve, Woo has referred to all past studies done on the user count. The analyst shared the below chart in an X post a few days back.
The early part of the chart here is based on Glassnode’s on-chain clustering of addresses into “entities.” An entity is a collection of Bitcoin wallets that Glassnode has determined to belong to the same investor.
For the next part of the curve, Woo has added the Cambridge and Crypto.com data on verified exchange users. Finally, the analyst has projected the resulting growth rate forward.
According to this curve, there are a total of 426 million Bitcoin investors at the moment, with the number estimated to hit the 0.5 billion milestone by October of this year. Interestingly, the price of the cryptocurrency has been oscillating around this total user count growth curve throughout the years, as the below chart depicts.
More specifically, this oscillation in the price around the adoption curve of the cryptocurrency has existed since 2012. This means that in the pre-2012 period (the shaded region in the graph), this pattern doesn’t quite hold.
“In the early days price was slow to catch up to user count, BTC didn’t even have a price until the 1000th user came in,” notes Woo. “Price discovery started with early markets like New Liberty Standard and MtGox. By Aug 2011 Bitstamp launched and we had multiple global exchanges to properly price the asset.”
Now, if the growth curve of Bitcoin is taken as a guide for its future value as well, then the analyst projects a $1 million per BTC fair value by the year 2035. “Fair value” here is based on the line around which the asset has been oscillating.
From the chart, it’s visible that BTC has historically gained distance over this line during bull markets, so the peak value in future rallies can be significantly more than this fair value.
It now remains to be seen how the price of the cryptocurrency will develop in the coming years and whether this relationship between it and the total user count will continue to hold or not.
BTC Price
Bitcoin has observed a plunge of more than 8% over the past week, which has brought its price down to $58,600.
Crypto Market Sell-Off Was Driven by Retail Investors, JPMorgan Says
Crypto markets have seen significant profit taking in recent weeks with retail investors playing a bigger role than institutions, the report said.
Bitcoin Déjà Vu: Analyst Identifies Trends Reflecting 2016 Cycle
Cryptocurrency analyst Rekt Capital has come up with an intriguing narrative pointing to several trends in the current price action of Bitcoin that are similar to the price trends seen in the 2016 bull cycle, even as market sentiments continue to dwindle.
Bitcoin Trends Reiterating 2016 Pattern
According to Rekt Capital, more than a month after the initial analysis, Bitcoin keeps demonstrating how much it closely resembles the cycle of 2016. Similar to 2016, Bitcoin has experienced further declines over the past three weeks following the Halving below the Range Low of its Re-Accumulation Range also known as the Post-Halving Danger Zone
The post read:
Over a month later Bitcoin continues to prove how it is more similar to the 2016 cycle. Just like in 2016, Bitcoin in this cycle is seeing additional downside below the Range Low of its Re-Accumulation Range in the three-week window after the Halving (i.e. Post-Halving “Danger Zone”).
Given that Rekt Capital already addressed the concept of the Post-Halving Danger Zone, the analyst is not shocked by this current price decrease. During the 2016 cycle, about 21 days after the Halving event, BTC saw a lengthy decline of 11% before transitioning toward an upward direction.
It is worth noting that Rekt Capital noted that if downside volatility around the Re-Accumulation Range Low is going to happen in this cycle, 2016 history indicates it may happen during the 15 days following the Halving. Since the recent event was concluded about 12 days ago, the expert’s prediction could be realized in the upcoming days.
Related Reading: Bitcoin Enters ‘Danger Zone’ Post-Halving, Analyst Warns Of Potential Downside
While the Post-Halving “Danger Zone” ends in 15 days, 2016 data suggests that there may be some negative volatility in the interim, possibly reaching the $60600 Range Low.
Drawing attention to previous patterns, Rekt Capital highlighted a similar pattern between the 2016 and 2024 pre-Halving re-accumulation range. After a breakout from the re-accumulation range this year, BTC witnessed a Pre-Halving rally, as was observed in 2016.
Pre-Halving Retrace Movement
Just like in 2016, once the pre-Halving rally peaked, Bitcoin started its Pre-Halving retrace. Specifically, this occurred roughly 28 days prior to the Halving event in both 2016 and 2024.
A negative wick on the weekly candle indicates a significant reaction in the first week of the pre-Halving Retrace in 2016. However, this reaction was fleeting and came before an extended price decline.
This cycle likewise saw a strong early reaction from Bitcoin via a downward wick, but there are indications that this reaction might not have lasted long. Thus, to avoid a fate similar to that of 2016, Rekt Capital believes that BTC will need to maintain highs around $60,000 and beyond.
Crypto for Advisors: Digital Asset Custody’s Future
Once they reach a certain level of sophistication, there’s a clear trend for Web3 asset holders to transition their digital asset wealth to self-custody.
U.S. Senate’s Warren Warns National Security Chiefs About Iranian Crypto Mining
U.S. Sen. Elizabeth Warren (D-Mass.), one of the most prominent critics of cryptocurrency hazards, warned the top military and financial officials that Iran relies on digital assets mining as a source of revenue that can lessen the pressure from U.S. sanctions.
Nigerian court postpones money laundering trial of Binance and execs
A judge in Nigeria reportedly adjourned proceedings in a case against Binance and two executives until May 17 to allow lawyers to review certain documents.
Pickup artists using AI, deep fake nudes outlawed, Rabbit R1 fail: AI Eye
Deep fake nudes to be outlawed in UK and Australia, pick up artists fake big live stream audiences to meet women, plus more news: AI Eye.
MicroStrategy Unveils Plan for Bitcoin-Based Decentralized Identity Using Ordinals
MicroStrategy has already built one application using its service. “Orange For Outlook” integrates digital signatures into emails to enable recipients to verify the identity of the sender.
Ripple Unlocks 1 Billion XRP From Escrow – How Will This Impact Price?
On-chain data recently showed that Ripple carried out its monthly escrow unlock for May. As expected, this has raised concerns about how it could affect the XRP price, especially since Ripple has been accused of manipulating the token’s price.
Ripple Unlocks 500 Million XRP Tokens
Onchain data revealed 500 million XRP tokens were unlocked from Ripple’s escrow on May 1. The crypto firm is known to unlock 1 billion tokens monthly, although it looks to have only unlocked half this time around. The magnitude of these tokens always raises concerns, considering the negative impact they could have on the altcoin’s price if dumped on the market.
Further analysis of the on-chain data shows that Ripple sent 300 million XRP out of the unlocked tokens to an escrowed account (2Not4co2op). Meanwhile, the crypto firm sent the remaining 200 million XRP tokens to another wallet (4vt5x1o91m). Considering that the 200 million XRP tokens weren’t sent to escrow, Ripple may have plans to sell them at some point, although it has yet to do so.
It is also worth mentioning that Ripple received another 500 million XRP tokens from an unknown wallet (ymFZmKxEsF). However, these funds were immediately sent to an escrow account. As such, the community can heave a sigh of relief since most of the XRP tokens Ripple received in the last 24 hours have been sent back to escrow.
Talks About Ripple Dumping On The Market Resurface
Following the latest token unlock, the crypto community has reignited talks about Ripple’s alleged dumping on XRP holders. The question of whether or not Ripple’s XRP sales influence the token’s price has been a long-standing discussion, with notable figures like pro-XRP crypto YouTuber Jerry Hall even accusing Ripple of intentionally suppressing the altcoin’s price with its sales.
On the other hand, people like Ripple’s Chief Technology Officer (CTO) have clarified that the crypto firm’s XRP sales do not impact the crypto token’s price. Moreover, Ripple already discontinued programmatic sales, which means that its transactions cannot affect prices on crypto exchanges.
Ripple also noted in its recent court filing in its ongoing legal battle against the Securities and Exchange Commission (SEC) that it had taken measures to ensure its institutional sales did not violate securities laws. This suggests that Ripple conducts its sales over the counter (OTC) to avoid further scrutiny from the Commission.
At the time of writing, the token is trading at around $0.5, up over 2% in the last 24 hours according to data from CoinMarketCap.
Bitcoin price correction 'very common' if $56K lows hold — Peter Brandt
Bitcoin bulls see signs of the worst being over as a BTC price bounce gathers pace toward $60,000.
Tokenized Private-Credit Platform Untangled Opens Its First USDC Lending Pool on Celo
Private credit has been at the forefront of crypto’s asset tokenization trend with over $600 million outstanding on-chain assets.
LayerZero Takes Snapshot as Airdrop Draws Closer
The interoperability protocol indicated that there will be a series of airdrops.
Crypto Analyst Predicts 244% Shiba Inu Rally Based On Bull Flag
An analyst explained how Shiba Inu could be heading towards a massive rally based on a bull flag pattern that forms in its daily chart.
Shiba Inu Has Been Consolidating Inside A Bull Flag Recently
In a new post on X, analyst Ali has discussed about a bull flag that has recently appeared in the daily price of Shiba Inu. The bull flag is a pattern in technical analysis (TA) that, as its name suggests, is shaped like a flag on a pole.
The pattern forms when an uptrend is followed by a period of consolidation inside a parallel channel toward the downward direction. The starting uptrend makes up for the pole, while the channel acts as the flag.
Like other TA patterns, the consolidation channel or flag here comprises two parallel lines. The upper level connects the price tops, while the lower one joins the bottoms.
When the asset retests either of these levels, it’s probable to undergo a reversal, with the upper line of the channel acting as a point of resistance and the lower one as support.
A break above the resistance line is considered a bullish signal for the price. The uptrend resulting from such a break may be the same length as the flag’s pole.
On the other hand, a drop below the flag (that is, a breakdown of support) invalidates the formation and may even suggest the takeover of bearish momentum for the asset.
Similar to the bull flag, there is also the bear flag in TA, which works much in the same way, except that it occurs during a downtrend (with the flag signifying consolidation towards the upside following a downward pole).
Now, here is the chart shared by Ali that shows the bull flag pattern Shiba Inu has potentially been forming on its daily price recently:
From the graph, it’s clear that the Shiba Inu 1-day price has been consolidating inside what appears to be a bull flag pattern channel in the past few weeks.
“I’m placing buy orders around $0.000018343, aiming for a bullish breakout that sends $SHIB to $0.000072323,” says the analyst. The former level is about where SHIB should meet the flag’s support next if it continues in its current trajectory, while the latter target is based on the height of the pole.
A run to the bullish target of $0.000072323 would imply a rally of more than 244% from the current spot price of the cryptocurrency, while from the lower support of $0.000018343, any such surge would correspond to a growth of over 294%.
It remains to be seen whether Shiba Inu will show a break above this bull flag pattern and, if it does, whether the price will benefit from bullish effects.
SHIB Price
At the time of writing, Shiba Inu is trading around $0.00002110, down more than 18% over the past week.
Binance ties SAFU fund to USDC: Is the fund missing out on potential gains?
Binance has exchanged a diversified $1 billion crypto portfolio in SAFU funds into USD Coin.
Nasdaq-listed mining firm Stronghold Digital Mining for sale?
Stronghold announced its first quarter results for 2024 and revealed that it is considering a range of options to increase shareholder value including selling the business.
Fresh Money From Retail Traders Flows Into Copy Trading As Crypto Derivative Expands: Margex
Coinbase won approval to offer cryptocurrency derivative trading to U.S. retail customers, fueling much hope and momentum to the $2.1 trillion cryptocurrency derivative market.
Coinbase’s approval arrived following a significant decline in derivative trading volume due to economic uncertainties, regulatory struggles, and a reduction in risk from high wealth accounts and retail traders.
Derivative trading, such as futures, options, and others, has dominated the cryptocurrency market since 2014 as investors snap at the opportunity to place bets with little investment for a higher percentage return. A large percentage of the derivative market is influenced by retail traders, fueled by manic meme-stock trading and social media trends on platforms such as X, YouTube and Reddit.
Although heavily favoured by institutional investors, who have maintained a fair, open position in the derivative market, Bitcoin exchange-traded funds (ETFs) make up a large share of traded assets.
Futures and options trading have had a fair share in the derivative market, but the recent dominance of copy trading is often cited as a key reason for the high volume of the derivative market over the past few months. Copy trading is slowly evolving into a big tool for retail traders looking to explore the derivative market, as many of these traders favour automated trading over spot or manual trading. 
The data from Margex highlights much attention shifting to copy trading as a new strategy for retail traders looking to increase their profitability while leveraging an experienced trader to produce great profit returns with a profit share automated for both the user and pro trader.
Copy Trading And Gen Z Influence On The Derivative Market
Copy trading involves users replicating the trading strategies of expert traders. This method allows users to diversify their portfolios, minimize risk, and increase their profitability in the financial market while trades are executed automatically and instantly.
The idea of copy trading is to enable users to benefit from the knowledge and skills of well-experienced traders. The users work to enhance their trading outcomes or build better trading or investment skills.
Research has shown that 44% of traders are copy traders, signifying an extreme surge of copy trading solutions in the last few years and is greatly influenced by the social age experiencing exponential growth as web3 technologies evolve.
Social media and Generation Z users (GEN Z) have amplified the popularity of trading strategies like copy trading through investment threads on X, Reddit, and even YouTube channels, with over 500,000 community individuals actively participating in such financial market discussions.
Through social media and online communities, young users have seen a high demand for copy trading as their interest grows through the consumption of financial information. This shows the social aspect significantly influences the adoption of copy trading.
By leveraging on the power of online communities and social aspects of trading, copy trading eliminates the rigorous learning phase of analyzing trades for retailers, simplifies trading processes and improves strategies to remain profitable.
Copy Trading A Community Building Tool
Investors and retail traders have a long history of following the leader or forecaster of the financial market, be it for short-term, medium-term, or long-term portfolio moves. Copy trading has long existed, with many sharing trade ideas or mimicking the trades of experienced traders such as Warren Buffet.
These patterns in the past among retailers are seen in the present generation as many retailers or users follow well-experienced traders to replicate their open positions.
With more retail traders adopting copy trading, it remains a dominant strategy in the derivative market compared to the spot market. Over 91% of futures trading participants are actively involved in copy trading while recording over 92% of profit returns.
According to CCData, the growth of the cryptocurrency derivative market has been influenced by retail traders’ demand for more innovative trading strategies, such as automation tools (copy trading) and AI algorithms, to enhance their trading approach. Many centralized exchanges recorded a new peak of $2.3 trillion in the derivative market.
CCData has shown much adoption in the derivative market as compared with spot trading. A large community of retail traders is approaching copy trading to earn a great profit on their investment. Over the past few years, the copy trading community have earned a profit margin of over 74 million USDT, reflecting increased engagement and the copy-trading method by retailers in the derivative market.
Many crypto trading platforms have adopted copy trading to fill the needs of retail traders looking for improved and robust trading methods to boost profitability. Margex, a copy trading platform, remains at the top of the list of copy trading platforms for these users.
Margex A Next-Gen Copy Trading Platform
Margex is a next-gen copy trading platform built to help its users recreate success by mirroring the trades of experienced traders in the crypto industry on its intuitive platform.
Margex’s adaptation to better copy trading strategies that many exchanges lack has been a big boost for many retailers. This will address the high demand of users looking for automated approaches to enhance trading results while diversifying their portfolios to maximize profitability.
To demonstrate its seriousness about providing the best services to users, Margex has spent over $3 million to build its copy trading platform with keen attention to usability. It also has a zero-fee converter that enables users to swap tokens easily, and a more ultra-modern wallet will soon be introduced for users to manage assets within a secure platform.
Follow this three simple step guide on participating in the Margex copy trading platform and replicating the trades of more experienced crypto traders.
1 Create An Account With Margex
Creating an account with Margex guarantees you the best copy trading experience as it is out to protect the interest of its copy trading users and provides a diverse range of skillful traders you wish to copy their trades.
2 Select Your Traders
Once logged in, navigate to the copy trading page to explore the copy trading leaderboard to select top-performing traders over time. Evaluate its performance metrics, such as followers, traders’ equity, return on equity (ROE), and strategies that align with your risk appetite and investment plans.
3 Allocate Funds
After choosing a trader to follow and confirming your strategy, allocate some funds to replicate their trades. Margex platform mirrors all trades automatically and in real-time.
As low as $10 is the minimum amount Margex requires to participate in copy trading strategies.
