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⚡BTC $45170 Price Prediction🔨

Croxroad

17 Nov 2023 — 4 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🌳 Bitcoin Bulls in Control

Markus Thielen, head of research at Matrixport and founder of DeFi Research, is optimistic about Bitcoin's (BTC) upward trajectory, foreseeing a potential climb to $40,000, if not $45,000, by the end of the year. His confidence stems from a combination of factors, including the growing interest in call options, which allow buyers to acquire the underlying asset at a predetermined price. This surge in demand has left market makers exposed, potentially driving them to buy Bitcoin and hedge against further price increases.

Thielen points to significant options expiries on Nov. 24 and Dec. 29, totaling $3.7 billion and $5.4 billion, respectively, with a notable imbalance favouring calls over puts. As Bitcoin approaches the $40,000 mark, the need for hedging is expected to drive more buyers into the market, reinforcing the bullish sentiment.

Another factor contributing to the positive outlook is the diminishing U.S. inflation rate and the anticipation of rate cuts or liquidity easing by the Federal Reserve (Fed). With inflation rates slowing in recent months, there's speculation that the Fed could reduce the benchmark interest rate, creating a favourable environment for riskier assets like Bitcoin. Thielen suggests that a potential 200 basis points of rate cuts in the coming year would further support the digital currency's rise.

Furthermore, Thielen predicts that the consumer price index (CPI) will dip below the Fed's 2% target in 2024, adding to the overall positive outlook. Lastly, the optimism surrounding the approval of spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) is seen as a potential catalyst for continued price gains, with a 90% chance of approval before Jan. 10, according to Bloomberg analysts.

As of the latest update, Bitcoin is trading at $37,445, and Thielen's analysis suggests a broad interest in pushing prices toward the $40,000 level, with favourable market conditions supporting the bullish case for the digital currency.

🇨🇳 Hong Kong Exchanges Boom

The Hashkey Exchange, a pioneer in regulated crypto trading in Hong Kong, has taken a significant step to protect its clients' assets. They've announced insurance coverage for both hot and cold wallets, covering 100% of assets in hot wallets and 50% in cold wallets. In case of a claim, the insurance payout ranges from $50 million to $400 million.

In collaboration with fintech company OneDegree, Hashkey is also working on developing innovative security solutions. These solutions will address issues such as server downtime, data backup, and load control, enhancing overall infrastructure and customer protection.

Interestingly, Hashkey plans to submit four major altcoins for listing approval to the Hong Kong Securities & Futures Commission. Since gaining its licence in August, Hashkey has grown impressively, accumulating over 120,000 customers and facilitating a cumulative trading volume exceeding $10 billion.

Meanwhile, BC Technology Group, the owner of another licensed exchange called OSL, has received a substantial $91 million strategic investment from BGX crypto group. This investment reflects confidence in the digital asset market. However, the entry barrier for users and token developers on Hong Kong crypto exchanges seems high, as Hashkey announced a non-refundable $10,000 application fee for token developers, with a total potential cost ranging from $50,000 to $300,000 if approved.

In other news, crypto media publication The Block has received a $60 million investment for 80% of its equity from Foresight Ventures. Despite previous controversies, The Block sees this as a fresh start, with plans to expand into Asia and the Middle East.

On the regulatory front in China, a third court has voided a crypto investment contract, asserting that cryptocurrencies are not protected by law in civil disputes due to the country's crypto ban. This ruling follows earlier precedents this year, although the Chinese government has clarified that certain criminal acts related to digital currencies are prosecutable.

Lastly, the Philippines is embracing the tokenization of bonds, with the Bureau of Treasury aiming to raise $180 million through the issuance of one-year fixed-rate government securities in digital token form. This move aligns with the government's effort to explore the use of distributed ledger technology in the bond market.

🔉 On-Balance Volume (OBV)

On-Balance Volume (OBV) is a technical analysis indicator designed to assess the strength of a price trend by measuring the cumulative volume flow in and out of an asset. The basic premise behind OBV is that volume precedes price movement. When the security closes higher than its previous close, the day's volume is added to the cumulative OBV. Conversely, if the security closes lower, the day's volume is subtracted. This cumulative approach results in a line that either confirms or contradicts the prevailing price trend. Rising OBV indicates strong buying pressure, confirming an uptrend, while falling OBV suggests increased selling pressure, supporting a downtrend. Traders use OBV to identify potential trend reversals, as divergences between OBV and price can signal changes in momentum and help anticipate shifts in market sentiment.