Bitcoin started the week roaring towards $10,000 but the bulls exhausted soon after crossing $9,800. This bullish pivot reversed some of the damage from last week’s correction, which saw the Bitcoin price sink as low as $8,342 on March 9 after peaking at $11,700 just four days prior.
At the time writing, Bitcoin is trading at $9,094 representing a market cap of $153 billion.
It seems as if the euphoric phase for the cryptocurrencies has ended and some investors have fled the market. Now, only the most interested participants who have a greater conviction in the cryptocurrencies remain.
When prices don’t sustain below support levels on negative news, it is a sign that the bears are losing their grip. The early stages of a bull phase always cause worries. As and when prices recover, the ‘speculators’ will jump right back in.
Interestingly, Bitcoin’s trading volume is now very well distributed, with no single trading pair accounting for more than 10% of the coin’s global volume.
Also, it looks like market has recovered from Mt. Gox panic. Last week’s Bitcoin price dove because of Mt. Gox bearish pressure.
While it is debatable to what extent this sale had a meaningful effect on the Bitcoin price during the recent market correction, the fact that the trustee continues to hold nearly $2 billion worth of cryptocurrency and is willing to sell on exchanges rather than through OTC services, further worsened the mood among investors.
The first target objective is a rally to $12,150 from where Bitcoin has returned on three previous occasions. If prices break out of this resistance, the cryptocurrency will start a new uptrend.
Top Stories from the Crypto World
1. ‘Bitcoin Misery Index’ indicates when is the good time to buy
The “bitcoin misery index” created by Wall Street strategist Thomas Lee indicates this is a good time to buy Bitcoin. Lee has not changed his midyear price target of $20,000 and his end year price target of $25,000 for bitcoin.
Lee, co-founder of Fundstrat Global Advisors, told CNBC’s “Fast Money” Friday that when the bitcoin misery index falls below 27, bitcoin sees its best 12-month performance. Such a signal comes about every year
The index now stands at 18.8 on a scale of 100, making its lowest point since Sept. 6, 2011.
Lee said the index offers a way to measure how happy or said you are owning bitcoin.
The index is intended as a contrarian indicator. When it is low, investors should buy. When it is high, they should sell. The index accounts for the number of winning trades from the total trades. It also accounts for volatility.
For now, Lee said the index is telling people to wait it out for the next one or two or three weeks.
2. Lightning mainnet reaches 1000 nodes
The Lightning Network (LN) notched another historic achievement over the weekend, as the LN mainnet reached 1,000 active nodes for the first time in its short history.
That’s despite the fact that this nascent second-layer technology, thought by many to be a solution to Bitcoin’s scaling dilemma, remains in alpha-stage testing and has yet to receive a production release.
Owing to this fact, users have yet to use it to transact meaningful capital. The network is only holding about 4.5 BTC, worth about $43,000 at the present exchange rate. Moreover, nearly forty percent of network-connected nodes do not have any active payment channels.
Nevertheless, this level of mainnet adoption is remarkable for a technology that, officially, is still in testing. For reference, there are currently just over 11,000 active nodes on the Bitcoin network, according to according to CoinDance data.
3. A hypnotist is charging half a Bitcoin to help you remember lost crypto password
A certified professional hypnotist Jason Miller is helping people who have forgotten their old passwords. For the price of half a Bitcoin plus a 5% recovery fee, Miller claims that he can assist you in recalling your forgotten password from anywhere in the world, as long as you speak and understand English fluently.
The price was less steep for a Valentine’s Day special he had going: His services, which include three hypnosis sessions, cost just $1,500 plus 5 percent of the recovered cryptocurrency amount.
Miller says Bitcoin password recovery makes up a small part of his hypnosis practice. He spends most of his time on other services, such as helping people lose weight and reducing stress and anxiety.