Bitcoin has dropped close to 30% in November and is hinting more losses. But many prominent crypto figures believe the digital currency will recover one way or another.CNBC Crypto Trader Ran Neu-Ner said that the crypto market is at most bearish not in a full-fledged panic mode. He predicted that bottom was near which could allow people to reestablish their long positions in Bitcoin and other top crypto-assets.Up until now even though we have been in a bear market we haven’t seen panic or capitulation. In the last few days panic is clearly upon us. It’s a great signal that the bottom is near…— Ran NeuNer (@cryptomanran) November 20, 2018Keep Calm and HODLAnalysts from all across the crypto-sphere had previously highlighted $6,000 as their potential bitcoin bottom. Bears broke the said level on Thursday last week, which ultimately shifted many preconceived notions about Bitcoin supports. Some predicted it will crash to as low as $4,500 before it corrects higher. While a widely reported analysis by Bloomberg called $1,500 an achievable bottom for Bitcoin.The crypto market, which mainly consists of retail investors prone to emotional trading, tends to react to these predictions. A dump orchestrated by bear whales can easily send jitters across the whole community, leading them to sell shortsightedly fearing additional losses.Changpeng Zhao (CZ), the founder and CEO of Binance, the world’s leading digital assets exchange, highlighted this problem and requested the community to avoid reacting to Bitcoin bears. He reminded how bitcoin since inception has gone through similar wild swings only to reemerge as a winner.been through this many times already. Secret of success? Keep your head down and build.— CZ Binance (@cz_binance) November 19, 2018Earlier this month, CZ had predicted a bull run in the Bitcoin market albeit without mentioning the catalysts that would drive it.Glorious Spring AheadJohn McAfee echoed his pro-crypto view albeit with a dramatic touch to it. Comparing the current bearish bias with a harsh winter, the antivirus pioneer predicted a spring – a strong upside correction based on the historical price action of Bitcoin.People have panicked. But there’s no fucking need. We’re in a bear market. They suck, yes, and not like a hooker with no teeth. But I’m 73 and have seen this dozens of times in many markets. Bear markets are like Winter. It’s always followed by a glorious Spring. Fucking relax.— John McAfee (@officialmcafee) November 20, 2018While Bitcoin bulls attempt to re-inject confidence in the market, Bitcoin is already undergoing a free-fall. On Bitfinex, the BTC/USD rate briefly breached the $4,500-support area and established lower lows towards $4,400. A minor correction appeared later and took value back above the so-called bottom.Nevertheless, on Coinbase, the BTC/USD is now trading at $4,403 at the time of this writing, with its daily low already established at $4,218.All eyes are now fixed on the launch of the ICE-backed Bakkt trading platform in December. If it does prove bullish, then the SEC’s decision on Bitcoin ETF remains the only interim catalyst that could drive the Bitcoin higher – as the crypto celebs mentioned above predict. Image from Shutterstock
Bitcoin appears to have broken down from its falling wedge consolidation to signal that a steeper drop is underway. However, there are still a couple of potential support areas where buyers might be waiting.
Price is currently testing one of these now at the $4,800 area that lines up with a former resistance back in September 2018. Stochastic is closing in on oversold territory but does have some room to head further south, so there may still be some selling pressure left. In that case, Bitcoin could make its way down to the next long-term floor.
This might be all the way down to the $3,000 area, which is a previous resistance turned support level. The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to gain traction than to reverse. However, the gap between the moving averages is narrowing slightly to reflect slowing bearish pressure.
Volume remains elevated so there could be potential for big moves. Liquidity is expected to be thinner in the days ahead as most traders will be out for the Thanksgiving holidays, which might also mean high potential for volatility even on minor market updates.
Traders are blaming the uncertainty surrounding the Bitcoin Cash hard fork for the recent slump, but the SEC announcement on ICO operators violating securities laws may have also contributed to the move late in the week. After all, FUD has been in play and has been exacerbating the declines, with more analysts pointing out that it would take much longer before bitcoin recovers from this drop.
With that, it’s understandable that investors are taking money off the table and may be feeling discouraged from putting in more funds despite more inflows expected early next year.
Images courtesy of TradingView
Silver Castle, a digital currency investment house based in Israel, has launched two cryptocurrency-based funds this month.
Firm Offers Asset and Portfolio Management Services
The Middle Eastern nation’s first dedicated crypto investment firm, Silver Castle Ltd., has launched two funds this month. The funds will be offered to institutional and accredited investors.
Despite a bad year for cryptocurrencies, the firm expects to have around $50 million under management by the end of 2018.
According to Bloomberg, there are currently over 370 crypto funds managing around $10 billion in assets.
Eli Mizroch, CEO at Silver Castle, says:
We spent close to a year building robust infrastructure for managing other people’s money at the level of institutional grade with very, very high security.
The firm has some highly credible names from Israel’s financial services industry as part of its team, including Zvi Ziv, former CEO of Bank Hapoalim Ltd., Israel’s largest bank by assets, and Gabriella Ravid, founder and former CEO of Psagot Ofek Investment House, the country’s largest investment fund.
The Country’s Growing Blockchain Eco-System
Silver Castle’s launch was termed “a landmark event for the entire Israeli market” by Gadi Isaev, founding partner of the Israeli Blockchain Association. Isaev also spoke highly of the management team, calling them leaders and pioneers of the Israeli financial industry.
According to Mizroch, the country’s blockchain ecosystem played an essential part in the decision to build the investment business. Blockchain firms in Israel have grown to 129 from a mere 42 back in 2015.
Israel has hosted over 40 initial coin offerings (ICOs) in the last few years, and three of those are among the 20 largest in the world.
The first fund from the firm is both long- and short-momentum driven based on an algorithmic trading system that trades the five largest cryptocurrencies by market capitalization.
It is reported that the company first tested the platform in-house and experienced high double-digit returns in dollar terms despite the bear market. The second fund offers a basket of the top 10 assets weighted according to an algorithm that is fully invested and automated. A third token-based fund that invests in ICOs is expected to be launched by the end of the year.
Zvi Ziv notes:
There is a lot of potential in using blockchain, and everything is going to try and move there. I believe herein lies the biggest potential in the financial world.
Israel is making its presence felt in the blockchain space. The country is keeping up its reputation as a start-up nation with a growing number of cryptocurrency firms. This mainly is due to the effective regulations that are in place.
What are your thoughts on the new funds being launched by the Israeli firm? Let us know in the comments below.
Images courtesy of Shutterstock.