Divergence (DIVER) news

When Does a Crypto Bull Run Typically End?

A crypto bull run is a period of rapid and sustained price growth, often characterized by euphoria and surging investment. However, no bull market lasts forever. History shows that crypto bull runs eventually peak and give way to bear markets, often after specific patterns and warning signs emerge. This analysis examines when a typical crypto bull run tends to end by looking at past cycles, technical and on-chain indicators of exhaustion, expert insights, and macroeconomic factors that can sap bullish momentum. The goal is to highlight recurring patterns and red flags that often precede the end of a crypto bull cycle. Historical Lessons and Technical Signs in Crypto Bull Cycles Crypto bull runs capture headlines with dramatic gains, but every surge eventually meets its end. Understanding historical bull cycles and the technical signals that accompany them is key to recognizing when a crypto rally is running out of steam. By integrating these insights into your strategy, you can better prepare for the transition from exuberance to correction. Historical Bull Run Cycles: What History Tells Us Source: TradingView 1. The 2013 Cycle: Bitcoin’s ascent from around $145 to over $1,200 was meteoric—but the subsequent collapse, triggered by exchange failures and early regulatory moves, serves as a cautionary tale. 2. The 2017 Surge: Driven by widespread speculation and new instruments like futures, Bitcoin leaped from about $1,000 to nearly $20,000. The peak was marked by institutional shorting strategies and regulatory crackdowns that ushered in a steep correction. 3. The 2020–2021 Rally: With growing institutional adoption and ample liquidity, Bitcoin climbed from roughly $8,000 to almost $70,000. However, as monetary policies tightened, the bullish momentum gradually faded. Technical Warning Signs to Watch ● Parabolic Movements and Blow-Off Tops: When prices climb in a nearly vertical, exponential fashion, it’s often a prelude to a sharp reversal. ● Volume Divergence: A healthy rally sees rising volume. If price continues to climb while volume drops, buying pressure is likely waning. ● Overbought Conditions: Indicators like RSI reaching extreme levels (e.g., above 90) signal that the market may be overextended. ● Trend Reversal Patterns: Patterns such as the “death cross” or bearish divergences in momentum tools often confirm that the bull run is about to reverse. Decoding On-Chain Metrics: The Blockchain's Clues to Market Tops Beyond traditional price charts, the blockchain itself offers a trove of data that can signal when a crypto bull run is nearing its end. On-chain metrics provide a unique, data-driven insight into market sentiment. When multiple indicators point to extreme profit levels and shifting holder behavior, the blockchain itself is warning that the bull cycle may soon end. For informed investors, these metrics are invaluable tools for timing market exits and protecting gains. We will now explore key critical on-chain metrics that reveal the market’s underlying health and forecast potential reversals. 1. Net Unrealized Profit/Loss (NUPL): When most holders are sitting on large paper gains (NUPL above 75%), it suggests that profit-taking may soon intensify, often heralding a market top. 2. Market Value to Realized Value (MVRV) Z-Score: A high MVRV Z-score (typically above 5–7) indicates that assets are trading at a significant premium to their historical cost, signaling potential overvaluation. Source: lookintobitcoin.com 3. Spent Output Profit Ratio (SOPR): A decline in SOPR from elevated profit levels toward break-even indicates that holders are beginning to cash in, a sign that the bullish phase might be ending. Source: Glassnode 4. Holder Dynamics: When long-term holders start selling and short-term trading activity surges, it suggests that experienced investors are offloading, paving the way for a correction. 5. Exchange Flows: An increase in the volume of coins moving from private wallets to exchanges often indicates that investors are preparing to sell, which can lead to downward price pressure. 6. Network Activity Trends: If network usage metrics (active addresses, transaction volume) plateau or decline while prices continue to climb, it may be a sign that new buyer interest is fading. Macro Forces and Expert Insights: External Catalysts Ending Crypto Bull Runs Crypto markets are not insulated—they are deeply affected by external influences. Therefore, the end of a crypto bull run is rarely driven by a single factor, but the result of a convergence of macroeconomic forces, regulatory shifts, and changes in investor sentiment. Keeping an eye on these external influences and expert insights means you can better anticipate when the bullish phase will give way to a period of consolidation or decline. External Influences Shaping Market Cycles ● Monetary Policy and Liquidity: Bull runs typically flourish in environments of low interest rates and abundant liquidity. When central banks tighten monetary policy, the resulting reduction in available capital often signals the end of a speculative run. ● Regulatory Developments: Increased regulatory scrutiny or new restrictions can quickly alter market sentiment. Announcements of crackdowns or bans have historically precipitated major corrections in crypto markets. ● Economic Shocks and Changing Risk Sentiment: Broader economic events—such as stock market corrections or geopolitical tensions—can prompt a shift from “risk-on” to “risk-off” behavior, causing investors to pull back from high-risk assets like crypto. ● Leverage and Liquidation Dynamics: Excessive leverage amplifies gains but also increases risk. When the market turns, high leverage can trigger mass liquidations, accelerating the downturn. Expert and Institutional Perspectives ● Institutional Profit-Taking: Large investors often begin trimming positions at market peaks. Their cautious approach can be an early indicator that the bull run is unsustainable. ● Shifts in Sentiment: Extreme optimism is a well-known precursor to market tops. When sentiment indicators transition from exuberance to caution, it often marks the beginning of a reversal. Source: lookintobitcoin.com ● Quantitative Models: Some analysts use models based on network usage and valuation thresholds to determine when the market is overextended. These models frequently signal that gains will soon be hard to justify. Conclusion A typical crypto bull run tends to end when a perfect storm of internal exhaustion and external pressure hits. Prices overshoot, early adopters cash out, new buyers wane, and some catalyst tips the balance. Historical bull runs (2013, 2017, 2021) all show a period of spectacular gains followed by a peak and then a steep decline, and in each case, there were warning signs that, in hindsight, signaled the top. If one combines historical insights, technical and on-chain indicators, expert commentary, and macro context, they can better judge when a roaring crypto market is likely nearing its end. While exact timing is difficult, being alert to the recurring red flags outlined above can help market participants navigate the transition from bull to bear with eyes wide open, hopefully protecting profits accrued during the good times and preparing for the next cycle when the music starts anew. Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading guidance. Qualified professionals should be consulted prior to making financial decisions.

Bitcoin Risks Losing the $90K- $110K Range as These 3 Development Could Put the Brakes on the Next Bull Breakout

Since early 2023, Bitcoin (BTC) has chalked out a classic stairstep bull run, characterized by incremental price increases followed by periods of consolidation that set the stage for the next move higher. The cryptocurrency's ongoing price consolidation between $90,000 and $100,000 is the third of the broader bull run from $20,000. The consensus is that it will end in a bull breakout, just as those in mid-2024 and 2023 did. However, the following three developments suggest otherwise. If there's one thing that any asset class, not just crypto, typically dislikes, it's the tightening of fiat liquidity, particularly the global reserve currency, the U.S. Dollar (USD). To the dismay of BTC bulls, the dollar liquidity is tightening due to several factors, as Arthur Hayes, chief investment officer at Maelstrom, noted on X. After the U.S. hit its self-imposed debt limit of $36 trillion last month, markets hoped that the Treasury would run down the TGA balance as part of extraordinary measures to keep the government functioning, inadvertently enhancing liquidity in the economy and markets. That's what the Treasury did during the previous debt ceiling issue of early 2023, spurring increased risk-taking in equity and crypto markets. Since President Donald Trump took office on Jan. 20, he has been actively following through on various campaign promises related to tariffs, illegal migrants and international affairs. But, there is one notable exception: the establishment of a strategic BTC reserve. It was a significant catalyst behind BTC's surge from $70,000 to over $100,000. The Trump administration seems to be more cautious, opting to "evaluate" the feasibility of creating such a reserve. It's a disappointing shift for crypto investors anticipating swift action on this initiative, similar to Trump's quick responses on other issues. Finally, those looking at technical charts to gauge the next move might want to pull up the 14-week relative strength index (RSI) on their screens. That's because the oscillator has recently diverged bearishly in a move that marked the 2021 top. A bearish RSI divergence contradicts the higher high in prices, signaling a slowdown in the bullish momentum. The RSI has produced a lower high relative to its December high, diverging bearishly from the continued price uptrend. That's similar to the 2021 pattern. The negative setup would be invalidated should the RSI cross above the falling trendline, representing the divergence, indicating a renewed bullish momentum. Source: CoinDesk Futures Market Updates Funding rates and Long/Short ratio are showing less optimism. Bitcoin Futures Updates Total BTC Open Interest: $58.86B (-2.43%) BTC Volume (24H): $103.71B (-23.87%) BTC Liquidations (24H): $64.02M (Long)/$35.98M (Short) Long/Short Ratio: 49.50%/50.50% Funding Rate: 0.0040% Ether Futures Updates Total ETH Open Interest: $23.87B (+0.08%) ETH Volume (24H): $68.14B (-29.75%) ETH Liquidations (24H): $46.80M (Long)/$83.89M (Short) Long/Short Ratio: 49.69%/50.31% Funding Rate: 0.0036% Top 3 OI Surges FORTH: $2.44M (+417.69%) LUCE: $3.15M (+273.72%) BILLY: $618.56K (+75.12%)

Bitcoin's Next Target: $100,000

As Bitcoin passes the $70,000 mark and keeps reaching new heights, there's a lot of excitement about its future. People from different areas are showing more interest in Bitcoin, making it a crucial time for this cryptocurrency. Through technical analysis and observation of market sentiment, we're going to look into whether Bitcoin could go over $100,000 soon and what that would mean for the world of cryptocurrencies. The Path to $100,000 From a technical analysis point, Bitcoin's trajectory exhibits a robust upward momentum. The recent months have witnessed a consistent price elevation, interspersed with periodic corrections and recoveries. The big moment was when it went past the $70,000 benchmark, setting a new record. This isn't just about numbers – it shows that people are really starting to believe in Bitcoin. The fervor extends to the derivatives realm, with a notable surge in optimistic bets in the options market, predicting Bitcoin's climb beyond $80,000 and even $100,000. Data shows that the open interest in call options with strike prices of $80,000 and $100,000 has increased by about 12% each after Bitcoin broke through $70,000, signaling sustained bullish sentiment. Interestingly, the volatility and leverage in the options and futures markets are low, indicating that last Friday's price increase was primarily driven by demand in the spot market. Retail investors tend to buy tokens in the spot market rather than using derivatives. Source: Coinglass From a technical indicator perspective, the Moving Average Convergence Divergence (MACD) shows a clear upward trend, indicating that buying pressure remains strong. Meanwhile, the Relative Strength Index (RSI) is in overbought territory, indicating that market sentiment may be overly optimistic. However, this does not rule out the possibility of Bitcoin continuing to rise, as in such cases, the overbought condition may persist for some time. Daily Average Purchase: 4,000 Bitcoins The advent of Bitcoin spot ETFs this January ushered in a deluge of capital inflows - underscoring a burgeoning demand. According to Mark Connors, research director at cryptocurrency asset management company 3iQ, since their launch in January, these new ETFs have been buying an average of 4,000 Bitcoins every day - far exceeding the 900 Bitcoins created by the Bitcoin network every day. With Bitcoin halving expected to occur this April, Bitcoin is expected to see more supply shortages this year. After halving, the daily supply of new Bitcoins will decrease from 900 to 450. Connors' company's fundamental target is for Bitcoin to reach $110,000 in 2024 and $140,000 in the following year. The company believes that if FOMO sentiment is added, Bitcoin will reach $180,000 this year and $450,000 in 2025. Galaxy Digital's research director, Alex Thorn, said, "Bitcoin is currently one of the scarcest assets in the world and is becoming increasingly scarce." Why $100,000 Matters If Bitcoin hits $100,000, it's a big deal. It's a symbolic marker enhancing Bitcoin's gravitas, beckoning a broader investor demographic to the crypto domain. This ascension underscores a 'Matthew Effect,' magnetizing a burgeoning investor base, thereby catalyzing the digital currency's mainstream adoption. In summary, reaching $100,000 would signify a new chapter for Bitcoin, showing it's a strong and growing part of the financial world. Even with all the excitement, it's smart for investors to remain cautious and closely monitor market changes. Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Bitget Hot Takes (February 26 - March 03, 2024) - Market Updates

Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, which sums up BGB performance, what's new at Bitget, and the latest market movements. The latest Bitget Hot Takes can be found here: All About Bitget | Market Updates Central Themes • Bitcoin closed last week at US$63K and smashed US$68K yesterday; BTC funding rate is already at its all-time high. • Ethereum prices breached US$3,700 earlier today. • Average (weighted) return of spot Bitcoin ETFs last week stands at 22.7%, with IBIT alone registering more than US$1 billion in trading volume every single day since February 26. • Crypto stock with the best performance last week and yesterday as well: MSTR. • Macro events this week: U.S. February non-farm payrolls, Bank of Canada's interest rate decision, and ECB main refinancing rate. Week 9: Extreme Greed And Divergence With Bitcoin held above US$60K, crypto stocks sure had an awesome week with 2-digit gains - except for ProShares Short Bitcoin ETF (BITI) of course and mining stocks, who have real humble performance: Riot Platform (RIOT), Canaan (CAN), Bitfarm (BITF) and Iris Energy (IREN) are those with a negative 5D return, and TeraWulf (WULF)'s closing price shows no change from the opening price of the week. The best explanation for this is the approach of the next Bitcoin halving, which will reduce miners' rewards by half. It seems more lucrative to switch to other investment types to join the Greedy gang, rather than to deploy funds into miners during this volatile period. Spot Bitcoin ETFs continued to draw in even more institutional money, with BlackRock's IBIT still leading the race: its 5D volume (February 26 - March 01) is recorded at US$9.2 billion, its volume yesterday is already US$2.42 billion, and the net flow into IBIT accounts for 96% of the total net flow into all 11 Bitcoin spot ETFs last week. Hashdex's DEFI and Valkyrie's BRRR are the two funds with no inflows last week. In terms of performance, VanEck's HODL slightly outperformed the rest at 22.78% but saw its weekly volume declined by half - mind you, Monday February 19 was a holiday so no trading and Bitcoin definitely didn't look as attractive. The ETF issuer has announced the death of its Bitcoin futures fund (XBTF), hence HODL is the only ETF access point for those who want to invest in Bitcoin via VanEck. Futures Bitcoin ETFs have lagged behind their spot peers for quite some time now, even BITI - cuz why short when it's up only (def NFA here). However, the only leveraged Bitcoin fund until now (BITX) remains fairly attractive for those with a large appetite out there, having netted US$44,177,000 in inflows last week. This week is packed with some important economic events, such as the Bank of Canada's interest rate decision on March 06, ECB's main refinancing rate on March 07, and the U.S. February non-farm payroll data on March 08. The current sentiment on CME FedWatch Tool is a 97% chance that the FED keeps the current interest rate in the FOMC this month and a 52.2% chance that there'll be a rate cut of 25 bps in the June meeting. Setting The Tone: Monday Performance Bitcoin skyrocketing to US$68,000 yesterday sure had pamped other markets to insane highs: spot Bitcoin ETFs broke its own volume record of Day One on January 11 at US$5,667,494,309. MicroStrategy ended the day at US$1,334.01, up by 11.2% from its opening price, and is therefore the only one with a two-digit performance yesterday. Both the OI-weighted funding rates for BTC and ETH are really close to 0.10%, with Bitget seeing the highest levels of funding rates among CEXs. This is a clear reflection of the Extreme Greed level that is even higher than the 2021 bull cycle and requires extreme alertness to avoid any potential liquidation. Trade BTC and ETH on Bitget today: Bitget Spot Trading | Bitget USDT-M Futures | Bitget Coin-M Futures | Bitget Copy Trade New Events 100% guaranteed: Spin to win 500,000 BGB, XRP, ADA, BTC, and more! Meme Mania: Trade to Win PEPE, SHIB, FLOKI, DOGE! Extended! New user exclusive: Buy crypto to get up to a 50% rebate! Extended! Institutional accounts only: deposit EUR for a free 30-day VIP pass! Flash sale! Get USDT at a 5% discount everyday on Bitget P2P! Trending coin promotion — Grab a share of 50,000 BGB in the Meme Zone Follow and Engage, Share Unlimited Prizes! 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Good Reads How Ethereum's Dencun Upgrade Will Affect the Crypto Market Is Pi Network (PI) a Scam? Unveiling the Truth Behind This Digital Currency Worldcoin (WLD) Surges to $9 in Just a Week as OpenAI Launched Sora Bitcoin Layer 2 Explained: Unlocking the Future of Cryptocurrency Transactions Bitcoin Layer 2: Unlocking Scalability and Functionality On the Bitcoin Blockchain Simply create an account , and start exploring the incredible Bitget-Verse today!

What Are CTA Bots And How To Use Them | Bitget Guides

Web Version What is a CTA bot? CTA, or Commodity Trading Advisor, is a strategy for commodity and stock index futures. Building on our proven CTA product experiences, we've added a cryptocurrency index trading system to our bot trading platform. Essentially, CTA uses automated programs to run index trading bots that buy (go long), sell (go short), or both, aiming for profits. CTA use scenarios Here are two strategies to deploy Bitget's CTA bot: Moving Average Convergence and Divergence Strategy: Perfect for trending markets. It captures trends by opening and closing positions smartly. Go long: Ride the wave of the golden cross (short-term MA above long-term MA), exit on the opposite. Go short: Seize opportunities with the death cross (long-term MA below short-term MA), and exit likewise. Bollinger Bands Strategy: Tailored for oscillating markets. It's all about buying low and selling high. Go long during volatility: Get in when prices dip below the lower band (lows), exit when they rise above the upper band (highs). Go short during volatility: Capitalize on peaks above the upper band (highs), and exit as prices drop below the lower band (lows). How to use CTA? Log in to Bitget and head to the homepage. Head to Bots > Spot CTA / Futures CTA to enter the trading page. Choose from MACD or Bollinger Bands. You can select from the recommended bots according to the 30-Day APY, Users, and other aspects. Use the Select button to view the bot details. All you need to do to create a bot is to enter an investment amount. CTA bots offer AI parameter suggestions, removing manual tweaking for users. Trade hassle-free, Trade smarter. Take buying BTC/USDT as an example. After creating the bot, you can find your orders in Spot CTA / Futures CTA > Current Bots. Select a CTA bot and head to Details to find profit, APY, trades, orders, and other data. You can also select Stop to terminate the bot. CTA bot tips CTA bots thrive in volatile markets. Parameters are historical, not predictors of future gains. When you create a CTA bot, please ensure that you have enough balance for safety orders as these funds will be kept frozen and separate. If a coin faces unexpected events like suspension or delisting, bots will be stopped automatically. Before making decisions, read through Bitget's CTA product description and gauge your risk appetite carefully. With CTA bots, profits have never been easier.

Automate Your Trading Strategy with Commodity Trading Advisor

In this article we will talk about our CTA trading bot to help you trade smarter TL;DR Bitget's focus on using technology for smarter trading. CTA brings quantitative automated trading strategies to traders. Two CTA strategy types on Bitget: MACD and BOLL bots. MACD CTA Bot uses Moving Average Convergence Divergence indicator for trend-based trading. MACD Bot buys on 'golden crosses', sells on 'death crosses' for uptrends and downtrends. BOLL CTA Bot uses Bollinger Bands for volatility-based trading. BOLL Bot generates signals on Bollinger Squeeze and price crossing bands. Both bots help automate trading while minimizing emotions and errors. Introduction The Bitget Slogan echoes through the chambers: “Trade Smarter”. It is not just a slogan, but it is a vision. One way Bitget appeals to this vision is by using the newest technology to provide convenience to its traders. With the introduction of Commodity Trading Advisor (CTA), traders now have access to two new quantitative automated trading strategies. Access the CTA strategy here! Spot CTA - Futures CTA What is CTA? The abbreviation CTA, or commodity trading advisor, is not unique to cryptocurrency markets. In fact, it refers to a certain method used with stock index futures and commodity futures. CTA techniques provide a whole index trading system and primarily use price/volume patterns for short-term trading. In order to purchase, sell, or go long and short on tokens with the intention of making net profits, it involves employing programs to automatically implement index trading methods. Human emotions and bad decision-making can no longer interfere when CTA tactics are used. A CTA bot is created to adhere to specified rules, increasing trading accuracy and execution efficiency. On Bitget there are currently two types of CTA strategies available. The MACD and BOLL bot. MACD CTA Bot A MACD (Moving Average Convergence Divergence) CTA bot is a type of algorithmic trading system that utilizes the MACD indicator to make trading decisions in the commodity markets. The MACD indicator has two lines: A short-term moving average (purple line) and a long-term moving average (orange). When the short-term moving average goes above the long-term moving average, it means an uptrend is starting, suggesting a good time to buy. When the short-term moving average goes below the long-term moving average, it means a downtrend is starting, suggesting a good time to sell. It is important to be aware that the MACD CTA Bot is a trend-following bot. Therefore, the setup for the MACD trend-following bot is as follows: The MACD long bot (for uptrends): It buys when there's a golden cross and sells when there's a death cross. The MACD short bot (for downtrends): It sells short when there's a death cross and buys to cover when there's a golden cross. BOLL CTA Bot A BOLL CTA bot is an algorithmic trading system that employs the Bollinger Bands indicator to make trading decisions in financial markets. The Bollinger Bands (BOLL) indicator is computed using statistical measures like the average and standard deviation. It comprises three bands: upper, middle, and lower. A trading bot using BOLL works on the idea that prices generally fluctuate within the range set by the upper and lower bands. As opposed to the MACD CTA Bot, the BOLL CTA bot is more suitable for trading volatility within a defined trading region, and generates buying and selling signals based on the interactions between the price and the Bands. Key signals include Bollinger Squeeze: When the volatility is low and the price moves within a narrow range, it can indicate an upcoming price breakout. The bot might generate a signal to prepare for a potential trade. Price Crossing Bands: If the price crosses above the upper band, it could signal an overbought condition, suggesting a potential sell or short opportunity. If the price crosses below the lower band, it could signal an oversold condition, suggesting a potential buy or long opportunity. Apart from these CTA trading strategies, we also offer a wide variety of first-party bots and strategies, as well as battle-tested strategies from our most profitable traders. To browse these strategies and start copy trading, refer to our ultimate guide to copy trading. Feeling ready? Start your trading today with Bitget ! Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Bitget Hot Takes (July 17 - July 23)

Bitget Hot Takes is the exclusive weekly newsletter series by Bitget Academy, the 360-degree onboarding guide for all crypto enthusiasts. The latest Bitget Hot Takes can be found here. Central Themes • XRP flipped BNB to become the fourth largest cryptocurrency by market cap. • OpenAI CEO's Worldcoin (WLD) will launch on Bitget today, July 24, at 8:00 AM (UTC). • The Twitter account of Uniswap’s founder Hayden Adams was hacked. • Signs of altseason in Q3 following the XRP ruling. BGB Is Seeing A Positive Divergence As both the global market cap and BTC price didn’t succeed in breaching resistance levels, most cryptocurrencies landed in red, except for Ripple (XRP). The ruling clearly has a positive impact on the token, helping it secure the 4th place on the list of biggest cryptocurrencies by market cap. Despite the recent burn that is worth ca. US$480 million, BNB still lost another 5% of its value this week. BGB prices also experienced some further decline, though, ranging between as low as US$0.451967 and US$0.473984. However, the Accum/Dist line doesn’t show any signs of new troughs at all, meaning the current downward movement of BGB shouldn’t last long. BGB's volatility increased over the last seven days because of lower prices, but still suggesting better stability than XRP and BNB. However, BGB’s liquidity has been maintained at 0.02, only lower than that of XRP and ETH. That means buying and selling activities with regards to this token weren’t affected by the recent stall, and they clearly show better resistance to outside noises than Bitcoin. Here's a recap of BGB activities from July 10 to July 14, 2023: Check out our BGB Sail Series to see how impressive BGB monthly performance is: BGB Sail: June Edition BGB Sail: May Edition BGB Sail: April Edition BGB Sail: March Edition BGB Sail: February Edition BGB Sail: December Edition BGB Sail: November Edition BGB Sail: October Edition BGB Sail: September Edition BGB Sail: August Edition BGB Sail: July Edition BGB Sail: June Edition BGB Sail: May Edition On a side note, recent data shows that BGB has become, once again, the exchange token with the highest potential. The disproportionate growth between BGB value and Bitget makes room for BGB to soar higher - are you ready? Altseason Q3 This Year? Despite the fact that Bitcoin hasn’t been able to hold on the US$31,000 mark, data from Glassnode shows that the number of new Bitcoin addresses a.k.a. ‘unique addresses that appeared for the first time in a transaction of the native coin in the network’ achieved new yearly highs on July 16 and July 18 at 544,678 and 547,534, respectively. Meanwhile, the total number of Bitcoin ordinal inscriptions has increased to 19,079,230 as of 0:00 July 24, which is equal to a rise of nearly 7% from 17,834,780 on July 17, per Dune Analytics. Learn more about Bitcoin ordinals with Bitget Academy: What Are Bitcoin Ordinals? There have been four key events that (almost) guarantee the end of a bearish cycle, including BlackRock’s change of heart on Bitcoin, followed by their Spot Bitcoin ETF application, XRP not labelled as a ‘security’ per the latest court ruling in Ripple’s case against the SEC, positive U.S. inflation data in June, and last but not least, the fear greed index consistently showing Greed since June 20. Now again comes the daily question of what we are buying today. Winter is almost over, there is no need for investors to hold tight on staples and stables and no need for developers to take a cautious approach to product rollouts. We are witnessing the (re-)surge of familiar names such as ChainLink (LINK), Axelar (AXL), Synthetix (SNX) and Uniswap (UNI). The former two are leading infrastructure providers and the latter top DeFi blue chips, which implies the rise of buidl-ers, once again. And that could very well lead to a new altseason in Q3, especially when Bitcoin dominance seems to continue to go down. The Latest Bitget News Are you an avid reader of Bitget Academy? Are you confident with what you have acquired from our knowledge bank? Participate in our completely new event to share 1,000 BGB prize pool - the rules are explained here! So excited to see how we have grown together! What’s new on Bitget, too? Of course the mighty Bitget Crypto Loan - through which any user can get instant access to more funds! Bitget Crypto Loan currently accepts BTC, ETH, USDT, XRP, LTC and BCH as collateral for the borrowing of 15+ assets. For a detailed guide on how to start borrowing right away, check out our Introduction to Bitget Crypto Loan! The biggest talk of the town is dropping on Bitget today: Worldcoin (WLD), a project founded by OpenAI's CEO Sam Altman, will be available for trading on Bitget Spot Trading on July 24, 2023 at 8:00 AM (UTC)! For spot grid traders, WLD/USDT will be available 24 hours later or July 25, 2023 at 8:00 AM (UTC) here! We have had several initial listings last week, all of which resulted in new extraordinary daily gainers: SALD/USDT (+760.5%), PC/USDT (+151.4%), UNIBOT/USDT (+146.9%) and WAGIEBOT/USDT (+129.0% on July 21 and +47.5% on July 23). Other awesome deals include ARKM/USDT (+1,233.7%), MOG/USDT (+255.4%), L/USDT (+203.6%), BITCOIN/USDT (+201.1%), PSI/USDT (+141.0%), QUICK/USDT (+111.8%) and SHIB2/USDT (+103.4%). Bitget Futures Markets saw a rise of 3.8% for the average crypto OI and 2.1% for the average Bitcoin OI in the last 7 days, meaning Bitcoin dominance on the futures market has fallen by another 1.6% on average, totally in line with the drop in Bitcoin dominance on the global market. Bitget Rewards Center has been upgraded! New users can now get up to 5,027 USDT for free and earn an additional bonus when you log in to your account daily. Sign up immediately to get the most out of our promotion campaign! New Events Worldcoin (WLD) has been listed on Bitget — come and grab a share of $25,000 in WLD! 50% Off Special Deal : Buy crypto with credit/debit card now! 80,000 BGB Giveaway! Deposit EUR or GBP Now! 80,000 BGB Giveaway! Deposit BRL Now! Bitget Builders Million Fans Program：Share the $5,000 Welcome Bonus Win the MacBook Air Be a #BitgetAcademyLearner, Prize Pool of BGB 1000! Invite friends to Earn and get a 20% rebate! Bitget Will List Mog Coin (MOG) in the Innovation and Meme Zone EML Protocol (EML) to be listed on Bitget — grab a share of the 11,000 EML prize pool! [Initial Listing] Bitget Will List YouSUI (XUI) in the Innovation Zone and DeFi Zone YouSUI (XUI) Savings is Live! Subscribe Earn up to 100% APR ! [Initial Listing] Bitget Will List Unibot (UNIBOT), Wagie Bot (WAGIEBOT) and Bridge Bot (BRIDGE) in the Innovation and BOT Zone Good Reads Understanding the 2023 Litecoin Halving: An In-depth Analysis What Is EML Protocol (EML) 3 Trends That Will Accelerate Crypto Adoption in 2023 and Beyond What is the Future of Blockchain in 2023? Simply create an account, and start exploring the incredible Bitget-Verse today!

Funding: Deep Dive

In an earlier article, I covered the uniqueness of the funding mechanic to the cryptomarkets and how it revolutionized contemporary trading instruments. In this article let us take a deep dive into its inner workings. How does funding work? Funding rates consist of two main components. The interest rate and the premium. On Bitget futures, the interest rate is set at 0.01% every 8 hours, bringing us up to a total of 0.03% a day. The premium is determined by the difference in price between the perpetual contract and its m ark price. When the market experiences times of increased volatility or enters a strong sentiment in a specific direction, the price between the perpetual contract and the mark price may diverge. In these instances, the premium increases or decreases accordingly. A high premium means that there is a large divergence with the mark price, whereas a low premium indicates the opposite. When the funding rate is positive, the perpetual contract is higher than the mark price. This means that leveraged markets are heavily biased on the long side, causing potential liquidity issues. Therefore long positions pay short positions in an attempt to balance out the order books. When the funding rate is negative, the price of the perpetual contracts is lower than its mark price, thus the funding mechanic favors short positions, and thus long positions pay short positions. Funding rates is a peer-to-peer mechanic, and happen directly between users without an exchange being involved thus, no fees are taken from Funding Rates. How does this affect traders? Funding calculations take the amount of leverage used into consideration. Therefore, funding rates may have a big impact on one's profits and losses. A trader in a position with high leverage that pays for funding may suffer losses and get liquidated even in low-volatility markets. Bitget accounts for this by allowing it to charge funding at most until the user's margin rate is equal to the maintenance margin rate and a certain percentage of the remaining amount, and the excess will not be charged. On the other hand, collecting funding can be very profitable in specific market conditions such as range-bound markets. Essentially, Funding Rates are designed to encourage traders to take positions that keep perpetual contract prices in line with underlying spot prices. Conclusion Crypto Funding Rates serve an important role in the perpetual futures market. Most crypto-derivatives exchanges employ a Funding Rate mechanism to keep contract prices in line with the index at all times. These rates vary as asset prices turn bullish or bearish and are determined by market forces. This is mandatory to ensure a balanced and liquid market, especially for highly volatile industries such as cryptocurrencies. Additionally, crypto Funding Rates also differ across exchanges – on some exchanges, these rates remain persistently high. In contrast, others like Bitget Futures maintain a low Funding Rate. This is mainly due to differences in trading platform features across exchanges. On exchanges that allow a smooth transition between spot and futures markets, arbitrage is easier for traders. Thus, inefficiencies are eliminated quickly. Create a Bitget account through this referral link and receive up to $4000 in bonuses: Website: https://partner.bitget.com/bg/ZZJ4YJ Disclaimer: The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.

Funding: Why Trading Crypto is Revolutionary

Ever since the arrival of Bitcoin in October 2008, the financial world has seen a revolution like never before. In many fundamental ways, cryptocurrency has questioned and changed significant fundamental factors in the financial sector. This does not only relate to fundamental, social or even policial subjects, but the way that exchanges operate and the way trading instruments have developed as well. In this article we will shed some light onto the invention that has changed trading forever. Traditional markets vs Cryptocurrencies: One of the most popular ways of trading cryptocurrencies is trading the futures markets. Futures enable traders to trade the assets underlying value without having the need to hold the actual assets. Therefore futures can also be traded on leverage. Futures are not unique to crypto markets. The way that they function however, differs greatly. A key feature of traditional futures contracts is that there is an expiration date tied to it. Typically, traditional futures contracts expire on a monthly or quarterly basis. Whenever a contract expires, a process known as settlement begins. At the settlement date, the contract price converges with the underlying spot price, and all open positions expire and are closed. The amount of which the price diverges is what makes up a loss or a win on the settlement date. Cryptocurrency has brought over the futures markets to this new and revolutionary space, allowing people to trade on leverage, and invest without having the need to own the underlying asset, allowing for great flexibility. However, while taking all the good things from futures, it made it even better! Perpetual futures Perpetual futures were first proposed by economist Robert Shiller in 1992, to enable derivatives markets for illiquid assets. However, perpetual futures markets have only developed for cryptocurrencies, following their introduction in 2016 by BitMEX, and have since then become the norm in trading futures in the crypto industry. Unlike conventional futures, perpetual futures allow traders to hold positions without an expiry date and therefore, eliminates their need to keep track of various settlement dates. For instance, a trader can keep a short position to perpetuity unless he or she gets liquidated. As a result, trading perpetual contracts have become very similar to trading pairs on the spot market, but with all the benefits that futures have to offer included. Since perpetual futures contracts do not have a settlement date like in the traditional markets, a mechanism is needed to ensure that futures prices and spot prices converge on a regular basis. This mechanism is known as Funding Rates and is unique to cryptocurrency markets only at the time of writing. Funding Funding Rates are periodic payments either to traders that are long or short based on the difference between perpetual contract markets and spot prices. Therefore, depending on open positions, traders will either pay or receive funding. Crypto Funding Rates prevent lasting divergence in the price of both markets, as increased funding rates can make it unfavorable to hold onto positions, and therefore proposes a self sustaining balancing mechanic without having the need to manually “reset” longlasting divergences in the market, and keeping the markets liquid. Funding is recalculated several times a day – Bitget Futures does this every eight hours. Disclaimer: The information provided above is not financial advice but for educational and entertainment purposes. Please do your own due diligence or consult a financial advisor before investing in any digital assets.

A Beginner's Guide to Cryptocurrency Trading Strategies (Volume 2)

In technical analysis, it is important to know that the answers will never be "yes" or "no" because only the crystal ball can perfectly predict the future. Obviously, and fortunately or unfortunately, we do not know what will happen from one day to the next. On the other hand, it is certain that technical analysis allows us to say at a given moment: "here are the signals we see at the moment and here are the most realistic probabilities". The evolution of prices and markets via support and resistance breakouts allow us to have more or less confidence in the rise or fall. The idea is therefore to spot movements and trends before anyone else in order to take maximum advantage of them. The next "stops'' in prices can be anticipated, not exactly, but this allows us to optimize our gains. Beware, any bet can also result in losses. The supports give us an indication but for example, the day we are at $100,000 on BTC if we retrace to $70,000, what does that mean? The end of the bull run? Or instead, will it mean that we consolidate to go to $150,000? The only thing that is certain is that by that time, the lines we have built that were our Supports and Resistances as well as our price channels will have changed, so we will have to work on new bases. It is also important to note that for Bitcoin, as with other cryptos, it would not be healthy to do a x2 price level every week, so when we consolidate a price via retracements, the psychology of the markets can be healthy as it allows for lower minimum prices than previous ones in the majority of cases. Two of the keys will always be patience and rigor. In this second article about the basics of trading for beginners, we will continue to learn about the major studies that need to be done in order to get a good start in technical analysis and trading. See also: A Beginner's Guide to Cryptocurrency Trading Strategies (Volume 1) Some words of lexicon Reload Zone (RLZ) / OTE (Optimum Trade Entry): a price zone that allows you to enter a position with a very interesting RR (risk/reward) ratio due to its large retracement. RR (Risk/Reward): a calculation that simply reflects how much you are willing to risk versus how much you expect to gain. Traders who want to survive over the long term look for trading strategies that have higher gains than losses per trade. The higher the winnings relative to the losses, the more the trader can outweigh the losses and stay positive. It's all about putting the odds on your side statistically. Thus it is preferable to enter trades with a RR higher than 1, the top being to enter a position with a RR higher or equal to 2. Best time to buy Here we always take examples with rather long timeframes in order to address all beginner traders. So let's take the example of a trader on a monthly scale. As mentioned in our article vol1, it is more interesting to enter when we have stacked several red candles than several green candles in order to optimize its RR. A fairly basic but formidable strategy is that of buy and hold and therefore accumulation. This consists of buying regularly and not selling. This way, during a downturn, you strengthen your existing positions. On the upside, you take advantage and ride the wave because you have already accumulated previously. There are new ones that everyone is talking about and watching. Generally speaking, the less optimistic people are, the more you have to buy. The less you hear about cryptos or the more negative news you hear for several months, the less people are interested or selling out of panic, the more you want to buy and accumulate. There is a famous phrase: buy the rumor and sell the news. Remember that there are different categories of traders and that the institutional market mainly drives the market. And when everyone observes a level, it is not only the retail market and small holders who strengthen their positions but also whales.Sometimes a key level may be broken and the euphoria creates a runaway movement. Eventually, there may be some technical truth, but with everyone following closely, dreams can become reality. We could even go further and say that we should be wary of resistances as much as support since, as we just said, everyone has their eyes on them and so do the professionals. This is also what the market makers do, the liquidity providers, and they know exactly where the most liquidity and the most orders are positioned. This is true for buy orders as well as for sell orders and explains sometimes big green candles that push the market up, like red candles that pull the market down. These market manipulations, whether intentional or not, often hit home because traders don't have time to cut their positions and are very quickly liquidated after a strong upward or downward movement. So, another tip for beginners is to start with reasonable amounts and leverage that allow you to manage your trading unemotionally and 100% rationally. As is often the case, the biggest winners are often those with the most money, so not usually the novice traders. As you can see, it is possible to learn a lot just with support and resistances. If we think about it a little bit, if we have "eaten" it and if we have seen the curves, then we can understand a lot because it tells the story of speculation and therefore of trading. Indicators Volume The volumes are the transcription of the purchases and sales but on a histogram. So in fact, it is interesting to couple the candlesticks (which we saw earlier) with "its power". The volume represents the conviction of the market in a way. And when we see a big move of a big candle with huge volume, then we can easily conclude that at that moment the market has made an important decision, either to recharge or to unload. Volume can help us know if after a strong move, it is followed by the majority of the market or not. RSI (Relative Strength Index) Let's now look at a second level of tools and start with the RSI (Relative Strength Index). This indicator informs us about "overbought" and "oversold" situations. When we are in bullrun, we are very often in "overbought" and therefore above the 70 of RSI, the signal of exceeding this level is a kind of prediction of a potential correction to come. The RSI is an indicator between 0 and 100 and has a median life zone between 30 and 70. Our reading is quite basic because for a more advanced user, just as it is possible to analyze the Japanese candlesticks and the figures that the Japanese candlesticks represent for a particular asset, it is also possible to study the RSI in detail. This kind of analysis is very technical and worthwhile for those who want to go much further. This will allow us to identify trends, the most known being the "divergence" concerning the RSI. Bollinger bands The Bollinger Bands give us indications about the bounds. This indicator is particularly interesting for a beginner because it is easily interpreted visually. The Bollinger Bands have a propensity to spread as the price moves either up or down. As the bands tighten and go "flat" then we understand that volatility is being reduced and that we are preparing for a much more explosive move. This is an adaptive trend. Moving averages The moving average (MA) is a simple technical analysis tool that smooths ou t price data by creating a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks, or any time period the trader chooses. Conclusion This allows for a good little reading and some signals. We have to remind you: don't consider that when two curves cross and because you read something in an article that the price of an asset will go up or down, it is far from being that simple. The majority of traders are not good short-term traders and even though in cryptos there can be some lucky ones, remember that it is over the long term that most gains are made. In two months, it happens to see the price of BTC divided by two as well as black swans that were not supposed to affect Bitcoin like the covid crisis that finally affected it because there was a panic movement. It is a market that is very human, very much driven by FUD (fear, uncertainty doubt) and FOMO (fear of missing out), so the fear of missing the train, but also a bad mood that can be brought by some criticism. When everyone is scared, there is often negative feedback that will encourage the bears. These are some very simple concepts. You, beginner traders, will have to make mistakes in spite of analysis in order to learn your lessons. So remember to pay yourself as much as possible because the market will. Subscribe to our social media today! Twitter | Telegram | LinkedIn | Facebook | Instagram