The 200-day moving average resistance for Bitcoin is currently at $8,440. The recovery rally for the token does not promise volume support. A rising wedge breakdown is seen on the hourly chart, eventually favouring a decline below $8,000. If there is a bullish close, the price might trend above $9,000.
Despite the decline of the price, some analysts believe that Bitcoin would reclaim its ground by looking at how it is reclaiming its upward price points. The recent bounce to higher points is a sign of good things to come.
There is a bullish flip in the Bitcoin technical as the token trend higher. This was an unexpected recovery as Bitcoin was about to collapse according to several analysts who called its trends bearish. They were talking about negative delta at the range support, exhaustion in buying support, volume imbalances, and lack of extreme negative funding.
The recent recovery is a crucial short-term support level.
Dan Tapiero stated, “Bitcoin might put in a perfected TD 9 buy signal today. Last time I pointed out it disappeared on close. (Thanks to @TommyThornton for catching.) Very important to watch at 5 pm “close” to confirm. Rare buy signal last at 3600 Jan’19 came right before massive multi-month 400% rally.”
The Fisher transform showed a bullish crossover on the daily chart of Bitcoin, thereby implying that it might soon be a subject of upward momentum.
The market capitalization of Tether is 30 times less than Bitcoin, but despite this, the token is the most widely used cryptocurrency. In a sense, it is most used than the Bitcoin itself.
The monthly trading volume of Tether has been nearly 18% more than Bitcoin.
Lex Sokolin, co-head at ConsenSys, stated, “If there is no Tether, we lose a massive amount of daily volume — around $1 billion or more depending on the data source.” He further stated, “Some of the potential concerning patters of trading in the market may start to fall away.”
However, Tether is currently being sued by New York for comingling reserve funds and therefore stressing the need to use KYC forms for the approval process of issuing and redeeming the coin.
Thaddeus Dryja, research scientist stated, I do not think that people trust Tether, but they use it without realizing that they are using it.
When comparing Bitcoin and Tether, Bitcoin belongs to no one; however, Tether is being issued by the owners of the Bitfinex crypto exchange. How the Tether supply is increased and decreased is not yet clear.