Bitcoin Price Drops Below $3,500, But Is Relief Rally In Sight?

The bitcoin-US dollar exchange (BTC/USD) rate fell to a fresh four-week low of $3,413 this morning following reports that Shanghai-based bitcoin exchange BTCC will shut down its domestic trading operations effective September 30.

As such, the announcement is the latest that supports the rumor regulators are preparing a formal ban on domestic bitcoin exchanges. Long liquidations in BTC markets have gathered pace amid fears that a confirmation from the People’s Bank of China will follow over the next few days.

According to data from CoinMarketCap, bitcoin’s price has shed 11 percent over the last 24 hours. The drop seen today has taken the week-on-week losses to 24 percent. Month-on-month, the cryptocurrency is down 19 percent.

Though driven lower by the bearish news flow, the sell-off should not come as a surprise as price action analysis favors the downside toward $3,000.

Let’s have a look at new developments on the technical charts that corroborate the bearish view presented 24 hours ago.

Daily chart

  • Yesterday’s price drop was accompanied by the highest volume since July 20. This indicates that the sell-off has substance and corroborates the bearish bias.
  • Bitcoin closed below the 50-day moving average for the first time since July 20.
  • The 38.2 percent Fibonacci retracement level has been breached to the downside. The 50 percent Fibonacci retracement level stands at $3,398.

Weekly chart

  • The chart above shows the 10-week simple moving average (SMA) is still sloping upwards, which indicates that the sell-off from the record high of $5,000 is a healthy technical correction. Moreover, at $5,000, the rally looked overstretched with the 10-week MA lagging significantly.
  • Confluence of key Fib levels is noted at the $3,400 levels [38.2 percent Fib retracement of the March low – September high and 50 percent Fib retracement of the July low – September high].

View

  • Bitcoin has already retracted close to 50 percent of the July–September rally. With the 1-hour and 4-hour RSI hovering in the oversold territory, the dips below the upward sloping 10-week SMA could be short lived.
  • A move higher to $3,750-3,800 cannot be ruled out before another round of sell-off unfolds.
  • In the long-term, BTC looks set to test $3,000 levels.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Source: Bitcoin Price Drops Below $3,500, But Is Relief Rally In Sight?

Report: Cryptocurrency Mining Will Boost AMD and Nvidia Stock Prices

At least one major Wall Street firm expects that the stock prices for Nvidia and Advanced Micro Devices Inc. (AMD) will continue climbing as both companies continue to pursue opportunities in the cryptocurrency mining market.

Nvidia has seen its stock jump almost 180 percent over the last year, while AMD has jumped 112 percent as well, thanks to cryptocurrency miners’ extensive need for powerful graphics processing units (GPUs). Global investment banking firm Jefferies believes the market for GPUs will remain strong over the next several months, according to a new report.

According to a client note written by Jefferies analyst Mark Lipacis, the stocks are the market’s top performers for the past year – a state of affairs that is expected to continue looking ahead.

In the letter (quoted by CNBC), Lipacis said:

« We think that the risk of a ‘crypto-driven’ inventory correction driving material downside is low in the near term … Both AMD and NVDA have introduced ‘cryptospecific GPU [stock-keeping unit]’ that have a low risk of competing with core gaming GPUs in secondary markets. »

Both companies have taken advantage of cryptocurrency mining by developing and selling GPU models specific to that market. Cryptocurrency mining is an energy intensive process by which new transactions are added to a blockchain, creating new coins in the process as a reward.

Looking ahead

In the long-term, Lipacis does not expect either company to have to compete with second-hand equipment being sold by miners after they are through with the machines.

At the same time, Lipacis suggested that GPU prices could dip, an eventuality that may have an impact on the stock prices.

Even if the market for mining GPUs collapses, Lipacis does not believe it will have a major impact on either company’s bottom line. He expects AMD to undergo a 3% drop and Nvidia to undergo a 10% decrease in the event of a major catastrophe.

As previously reported, both companies have moved to capitalize on the interest in GPUs among the world’s miners. Nvidia’s CEO, Jen-Hsun Huang, recently declared that « cryptocurrencies and blockchain are here to stay, » signaling his firm’s long-term plans for the market.

While AMD hasn’t been as outwardly bullish in its own public statements, the company has seen significant interest in its products from miners as well.

Image Credit: MAX SAYPLAY / Shutterstock.com

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Source: Report: Cryptocurrency Mining Will Boost AMD and Nvidia Stock Prices

Bitcoin Drops Below $4,000 as Market Mood Turns Uncertain

After mounting a modest recovery in the wake of rumored regulatory scrutiny, the price of bitcoin is back below $4,000.

The average price of bitcoin across global exchanges fell below $4,000 at roughly 3:15 UTC today, hitting a low not observed since September 10. The movement followed a period in which the bitcoin price repeatedly tested $4,000, but succeeded in staying above the barrier.

All in all, the move comes during an uncertain time for the cryptocurrency market, which has seen a period of sideways trading following a torrid first half in 2017.

With the recent decline, the price of bitcoin is up just 1.7 percent over the last month, though it has still appreciated nearly 300% this year. Likewise, the broader cryptocurrency markets have seen similar activity, rising 3.4% over the last 30 days, but declining more than 17 percent from its highest point during the period, according to CoinMarketCap.

As for the current sentiment, continued rumors that China could move to close domestic order-book exchanges have no doubt concerned more casual investors (while providing opportunities for profit-taking from long-term bulls).

Fanning the flames have been statements from notable community figures that appear to attest to the accuracy of the claims, though details on the primary sources for that information have not been forthcoming.

China-based exchanges continue to operate normally at press time, indicating they have yet to be notified of any operational changes.

Pipe dripping via Shutterstock

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at [email protected].

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Source: Bitcoin Drops Below $4,000 as Market Mood Turns Uncertain