Connect with us


Bitcoin [BTC]: King Coin rallies past 50,000 RMB and 800,000 YEN resistance as Asian shadow fades




Bitcoin [BTC: King Coin breaks $7,300 resistance level, as Chinese shadow begins to fade
Source: Pixabay

The massive Bitcoin [BTC] parabolic bullish swing shattered resistance and psychological levels alike. Since breaking $5,000 in early April, nothing has broken the top cryptocurrency’s surge, and now the looming Chinese shadow hovering at $7,300 has also been surpassed.

With a slew of significant bumps occurring since the April ascendance, many expected Bitcoin to halt dead in its tracks. The Bitfinex-Tether fiasco during the close of April was the first inkling of a correction, but Bitcoin managed to stay firm and even rose above $5,800 within a week.

Then came the biggest hack of the year; following the likes of QuadrigaCX, Bithumb, and Cryptopia, Binance, the largest cryptocurrency exchange in the world was hacked for a whopping $40 million, leading to an inevitable bearish decline. The markets yet again held firm, with Bitcoin breaking $6,000 days later, followed by a rapid push over $7,000, defying the November 2018 price level and mounting a 9-month high.

With Bitcoin breaking $7,300 some time ago and showing positing signs, the battle between the king coin and the Chinese market, so long the mainstay in the cryptocurrency world, has been braved, with the crypto-asset reasserting its dominance.

The level of $7,300 roughly converts to 50,000 Chinese yuan [RMB], which for long has been a resistance level for the price of Bitcoin. With the obstacle in the rear-view mirror, analysts are pegging that the hold of the Chinese market on the cryptocurrency world has been loosened.

Source: Trading View

For years, the whim of the Chinese government has been a thorn in the side of the cryptocurrency market. When the Asian giant, back in 2017, banned exchanges and ICOs, the market Bitcoin fell by over $700, the same was seen in September 2018, when a WeChat crackdown of crypto-communication resulted in slipping below $7,000. Interestingly, the recent pump is the first time the BTC price has crossed $7,000 since the fall in September.

Additionally, the April ascendance occurred a day after a report from a Chinese macroeconomic policy agency detailing the need to ban cryptocurrency mining due to its energy consumption patterns. The ban which is still under public consultation, which aimed to, according to many, cut the source of crypto-mining didn’t halt the market, and, in fact, preceded the biggest daily gain for Bitcoin since April 2018.

Source: Bitflyer 

From Beijing to Tokoyo, with the Chinese hold knocked off, Bitcoin has also surpassed the noted “Sushi premium” of 800,000 Japanese Yen. At press time, the king coin is trading at 819,545 Japanese Yen on Bitflyer, the largest licensed cryptocurrency exchange in Japan.

With the Chinese and Japanese resistance level of 50,000 RMB and 800,000 YEN surpassed, can anything hold back the king coin’s rally?

Subscribe to AMBCrypto’s Newsletter


JP Morgan: Big banks stand corrected as Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise




JP Morgan: Big bank stands corrected at Bitcoin rally past intrinsic value; admits current surge mirrors 2017 rise
Source: Pixabay

Big banks are riding a FOMO wave as the Bitcoin bull-run is just beginning. Spearheaded by the changing colors of JP Morgan, which recently forayed into the digital assets world, the banking elite is now suggesting that their initial stance on Bitcoin and the larger cryptocurrency world might have been off.

A recent chart by JP Morgan shows the current BTC price veer upwards chiding the “intrinsic value” the big bank placed on the virtual currency.

Based on the article by Bloomberg, the price of the coin would reverse towards the end of December 2018 and then make marginal gains until May 2019, all under the $5,000 mark. In reality, the BTC price, after dropping to “rock bottom” at just above $3,100 in early December 2018, edged upwards.

Several spurts of growth were seen in early January and February, prior to a massive April ascendance. On April 2, Bitcoin did away with the bank’s value mode and amassed a daily gain of over 15 percent, fuelling its current rise. Breaking the $5,000 ceiling in the process, which was pegged to remain intact well into May 2019, the king coin is now almost $3,000 ahead of the mark and is not looking to stop.

Source: Bloomberg

It should be noted that JP Morgan’s “intrinsic value” is calculated on the basis of the marginal cost of production, electricity prices, and hash rates. This model does not take into account, at least on absolute terms, the anticipatory effect of the 2020 halving, which, according to a slew of analysts is the behind the price rise.

Nikolaos Panigirtzoglou, the MD in the Global Market Strategy team at JP Morgan stated that Bitcoin breaking through its “intrinsic value” showed signs of mirroring its 2017 bull run. He evidenced this move by comparing the pre-December 2017 slump to the one seen prior to the current bullish swing.

The analyst added:

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

With the analyst admitting that the imparting of an “intrinsic or fair value” to a cryptocurrency, much less a volatile one like Bitcoin, is a “challenging” ordeal, a mere JP Morgan acknowledgement of a Bitcoin bull-run is a remarkable sign for the digital assets industry, especially given the bank’s and its CEO Jamie Dimon’s Bitcoin-bashing in the past.

Mati Greenspan, senior market analyst at eToro attested to the same, adding a key point that JP Morgan failed to take into account in their calculation. He stated:

“Great to see JPM finally admitting that Bitcoin has intrinsic value.
Now wait till they understand that miners who run a surplus tend to begin hording.”

Despite Bitcoin slumping at press time, recording a 1.23 percent decline against the dollar, the prospects look positive. After recording a massive gain on 19 May, briefly surging past $8,000 for the second time in a week, Bitcoin created a High-Low [HL] at $7,100, which many analysts look at with glee.

This HL immediately following last week’s pull-back caused due to post-Consensus bears, a Bitstamp sell-order and market correction showed the king coin’s bullish persistence and can even be a foundation for a $9,000 ascendance, defying any “intrinsic value” expectations.

Subscribe to AMBCrypto’s Newsletter

Continue Reading