Srp 19

Bitcoin Price Analysis: Welcome to ‘Bitcoin Purgatory’

Bitcoin seemed on the verge of a breakout above $6,650 but a failed third attempt, followed by a lack of buying interest has given bears an opportunity to snatch back control and it looks like BTC has dropped a shelf for a bit of sideways trading in the $6,200 – $6,400 range.


Bitcoin Price Market Overview

Earlier this week on CNBC Fast Money, host Melissa Lee described the narrow channel between $6k and $7k as ‘Bitcoin Purgatory”. Guest speaker and head of Digital Assets group at Susquehanna International Group, Bart Smith, said “Bitcoin is in show me mode” as the cryptocurrency market currently seems resistant to trend changes driven by good news and positive developments for cryptocurrencies.

Smith believes investors are searching for verifiable proof that the market has turned bullish before setting up positions, hence the sporadic spikes and trend of declining volume for bitcoin.

It seems the entire market is contingent on the SEC’s approval or denial of exchange-traded funds (ETFs) but there are a select few who advise caution against placing all one’s hopes in the approval of such an ETF for a variety of reasons.

Meanwhile, the world, or at least Americans, were introduced to a new Bitcoin Exchange Traded Note (ETN) from Coinshares subsidiary, Tracker One. This provides US investors with a listed (regulated) vehicle to invest in bitcoin via their US brokerages without carrying the burden of needing to secure coins, register on various cryptocurrency exchanges, pay the premium that Greyscale adds or worry about exchange hacks and re-compensation.

4-Hour Chart

BTC 00 completed the inverse head and shoulders formation but a decline in volume followed by a few failed attempts to cross the daily high set at $6,644 lead to BTC eventually collapsing below the bullish trendline and the 55-EMA and 20-day moving average.

At the time of writing, the RSI has worked its way down from bullish territory and BTC appears to have dropped down a leg to last week’s trading range from $6,200 – $6,400.

A pattern of lower lows and lower highs has begun and BTC’s drop below the 55-EMA and 20-MA could resurrect the pattern of rejection at overhead moving averages that has plagued BTC since the drop from $8,500.

A positive note is BTC rides right along the 50-MA and the Stoch has already entered oversold territory, but the RSI continues to slide down below 50 and continued descent could take BTC along with it.

The 55-EMA and 20-MA have been flat since August 16 and the constricting bollinger band indicator could be indicative of further range bound trading even though BTC has dropped back to last weekend’s trading range.

The bollinger band on the 4-hr chart is really starting to tighten up but simply waiting for further constriction may not be sufficient enough proof of an upside move as the Stoch, RSI and bull volume are descending. Currently, BTC trades in the lower band below the 20 simple moving average so traders may be forced to hold tight for an oversold bounce if or when the RSI slips to the twenties.  

A glance at the weekly chart shows BTC 00 in the process of setting a lower low on the daily chart and the RSI is fairly close to dropping below the ascending trendline of this week’s earlier divergence.

Below the 50-MA at $6,313, BTC has soft support at $6,230, $6,137 and $6,000. In the event of a drop below $6,300 to $6,200, BTC has a relatively strong support at $6,100.

Looking Ahead

A drop below the inverse head and shoulders neckline could prove problematic, as would a drop below the $6,300 support but BTC has shown relatively consistent support at $6,300 and $6,100.

Multiple low volume bounces off the $6,350 support point to declining interest from buyers and BTC could drop to $6,200 and below if the RSI continues to descend as bulls weakly defend the $6,300 support.

A move above the inverted head and shoulders neckline ($6,500) followed by a pop above $6,650 (100-MA) would be encouraging.

A move to the key resistance at $6,800 would place BTC above the 38.2% Fib retracement level and back above the descending trend line.

Depending on technical indicators, $6,100 – $6,200 could be an attractive entry point for range traders.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by BITFINEX. The charts for analysis are provided by TradingView.]

Where do you think the price of Bitcoin this weekend? Let us know in the comments below!


Images courtesy of Tradingview.com, Shutterstock

Share
Srp 01

Winklevoss Author Sells New Book About the Twins Entitled ‘Bitcoin Billionaires’

After penning the book which inspired “The Social Network,” you may have expected Ben Mezrich’s Winklevoss interest to have waned. However, he recently wrote a new book detailing their adventures in Bitcoin, which will be available next spring.

Winklebros

You’ve all heard the story of how the ‘evil’ automaton Mark Zuckerberg co-opted Facebook from the heroic Winklevoss brothers, who really invented it.

The subsequent, and highly publicized, lawsuit led to a settlement of $65 million for our third-favorite twins. The lawsuit later became the subject of Mezrich’s book “The Accidental Billionaires”.

It also pre-empted the Winklevoss’ discovery of Bitcoin. Mezrich’s new book “Bitcoin Billionaires,” tells that story. It seems like billionaires and Winklevii are twin obsessions of Mr. Mezrich. UK publisher Little, Brown has just picked up the title.

Licking their Wounds

We join the story with the brothers planning to use their bumper payout to set up a venture capital fund in Silicon Valley. Whilst there, a questionable character convinced them to forget about the ‘now mainstream’ Facebook. If they wanted to be true disruptors, they needed to buy into the new concept of cryptocurrency.

And buy in they did. Starting when the price of Bitcoin was still just $6, they eventually invested $11 million. They now hold 1 percent of all Bitcoin in circulation. Last November when the market cap hit $100 billion dollars, this officially made them Bitcoin billionaires.

ETF vs SEC

In more recent times, their battle to receive SEC approval for their Bitcoin exchange-traded fund has been eating up column inches. It was again denied at the last hearing, although this time one of the four commissioners tweeted her dissent.

No doubt Mr. Mezrich will be holding out for a positive outcome to this ongoing saga before publication of the book, to create a compelling final chapter. Or perhaps he’s hoping this drags on and on interminably, giving him the perfect excuse to write another sequel?

Share
Čvn 16

Bitcoins Seized From Bankrupt BitGrail by Italian Authorities

· June 15, 2018 · 9:00 pm

Authorities in Italy have seized bitcoins from the company wallets of controversial exchange BitGrail as part of standard pre-bankruptcy proceedings. BitGrail was hacked in February 2018, with $170 million dollars’ worth of Nano stolen — which subsequently lead to a major price crash for the coin.


BitGrail’s blog was updated today, June 15, 2018, with the following announcement:

On June 5, 2018, pursuant to the Tribunal of Florence orders, the Bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the prebankruptcy proceeding.

A news update on the website in May declared BitGrail would reopen on May 2, 2018, but was closely followed by an announcement stating the Italian court of Florence had issued a deed “requesting the immediate closure of BitGrail” and that BitGrail would comply.

Hack vs. Insolvency

BitGrail’s problems came to light in February 2018 when it reported 17 million Nano (previously RaiBlocks) — equivalent, at the time, to $170 million dollars — stolen in a hack. At the same time, reports surfaced that the exchange could be insolvent and may have been for a number of months.

Nano refused to fork its blockchain in response to the hack stating:

We now have sufficient reason to believe that Firano has been misleading the Nano Core Team and the community regarding the solvency of the BitGrail exchange for a significant period of time.

BitGrail stuck with its hacking claim, later posting on its blog that, though it wasn’t responsible, it would “meet its users half-way” by offering a settlement agreement and repayment plan for victims of the purported Nano hack.

As the news of the hack and the potential insolvency of BitGrail broke, Nano’s price began to fall — eventually crashing from $30 USD to $2.50 USD. Many investors had been encouraged to use the BitGrail platform as one of only two exchanges listing the coin until it was added to the popular exchange Binance.

BitGrail was prevented from reopening on May 2, 2018, by a court order initiated by BonelliErede — the firm assisting the 3000+ investors who became victims of the BitGrail/Nano hack.

Nano Is Moving Forward

BitGrail and Nano have argued publicly and legally over the cause of the hack and the insolvency issue. The Nano Foundation concluded in April that there was a bug in the exchange software at BitGrail.

Nano is moving on. Colin LeMahieu, Lead Developer, said in May:

While the BitGrail situation is extremely unfortunate, it has not impeded the project. We allocated significant resources towards both determining what exactly happened, as well as investigating legal options, but as far as protocol development and overall project milestones are concerned, we have continued to move forward.

Were you affected by the BitGrail hack? Tell us your story in the comments below! 


Images courtesy of Shutterstock, CoinMarketCap.com.

Show comments

Share
Bře 10

Bitcoin Cash Propaganda Poll Backfires

· March 10, 2018 · 12:00 pm

The Twitter account @Bitcoin — an intentionally misleading account which only supports Bitcoin Cash (BCH) — recently tried to defame Bitcoin (BTC) in a poll on the popular social media website. Unfortunately for them, it didn’t work.


Oops!

For those who aren’t aware, the Twitter account @Bitcoin actually has nothing to do with Bitcoin (BTC). Rather, the account uses Bitcoin’s name while pumping out anti-Bitcoin propaganda and shilling the dominant cryptocurrency’s largely-unwanted step-brother, Bitcoin Cash (BCH). As noted by Badbitcoin.org:

The Bitcoin account on Twitter @Bitcoin has been hijacked or bought by those scoundrels promoting the Bcash (Bitcoin Cash) Scam. Mail Order Explosives, Bitcoin, Scams – They do the lot! 1/8/18.

The borderline-scam account posted a poll on Thursday, asking which ‘Bitcoin’ Twitter users prefer. Of course, in doing so, the Twitter handle explicitly made biased and incorrect statements in an attempt to prove that Bitcoin Cash is the superior cryptocurrency. It backfired:

When all was said and done, Bitcoin (BTC) proved to be the overwhelming favorite, despite the Bcash scammers best efforts to undermine the dominant cryptocurrency. Out of 17,437 votes — a sizeable sample — 74% of users preferred the real Bitcoin (BTC) to Bitcoin Cash (BCH).

Additionally, the @Bitcoin Twitter handle was recently restricted on the popular social media site, though the reasons behind both the account’s restriction and restoration of permissions aren’t clear.

‘Btrash’

Bitcoin Cash — a hard fork of Bitcoin — largely markets itself as being ‘Satoshi Nakamoto’s real vision’ for Bitcoin and, in doing so, claims to be ‘the true Bitcoin.’ Meanwhile, misleading accounts like @Bitcoin on Twitter spew intentionally misleading information in desperate attempts to gain support.

As evidenced by the Bcash shill account’s own Twitter poll, however, many cryptocurrency investors view Bitcoin Cash as little more than an attempted hijacking of the Bitcoin brand by Roger Ver, Calvin Ayre, and others, to capitalize on the confusion of new investors.

MillionBitcoinCash - Updated POW & POS Technology With Low Fees with limited Coins

Bitcoin Cash, however, is making headway in one particular field. Recently, reports surfaced that, for the first time, Bcash is being accepted as a form of ransom payment by ransomware — intrusive software, which encrypts victims files and demands payment in return.

In other news, Ayre himself is launching his own Bcash-only vacation resort in Antigua, where he has primarily resided since being indicted by the US Attorney for Maryland on charges of illegal gambling and money laundering.

[Full disclosure: the author is a holder of Bitcoin (BTC)]

Which do you prefer: Bitcoin (BTC) or Bitcoin Cash (BCH)? Let us know in the comments below!


Images courtesy of Twitter/@Bitcoin, Bitcoinist archives

Show comments

Share
Zář 17

Floyd Mayweather Fights in Bitcoin’s Corner

· September 17, 2017 · 3:30 pm

Boxing champion Floyd Mayweather has been spotted spending Bitcoin in California’s Beverley Hills proving that despite the coins recent bad press, that Bitcoin really has legs.


Floyd Mayweather caused more buzz in the cryptocurrency world when he posted a photograph of himself on Facebook and Twitter proudly sporting a Titanium Centra Card in a Beverly Hills shoeshop a few days ago.

Titanian Centra is a debit card for Bitcoin, Ethereum, and other cryptocurrencies. They are raising funds via an ICO, which is due to launch in 28 hours (at the time of writing) which according to their website promises to:

Allow real-time conversion of all supported cyrptocurrencies to give the user the ability to spend their assets in real time anywhere in the world that accepts Visa or Mastercard.

Floyd Mayweather’s Recent ICO Endorsements

This is not the first time that Floyd Mayweather has taken to social media in order to promote and speak out about Bitcoin, ICO’s and other cryptocurrencies. He posted on Instagram and tweeted the following just last month in the lead-up to his infamous and potentially final boxing bout with Connor Mcgregor:

Other ICOs he has promoted in the past were for sporting event and finance predicting company Stox and the Hubii Network. The Stox ICO raised $33 million dollars in just 34 hours and the Hubii network, a media tech and content company, hopes to raise $50 million with their ICO.

Other Celebrity Bitcoin Endorsements

Steve Wozniak

Gwyneth Paltrow, Steve Wozniak, Sir Richard Branson and Paris Hilton have all previously spoken out about their interests in the world of cryptocurrency and blockchain technology. The Woz admitting that he uses Bitcoin where he can, such as for hotels, whereas Paltrow is actively advising and mentoring Bitcoin entrepreneurs.

As the list of Bitcoin-endorsing celebrities grow, will we start to see increased trust and interest from a more mainstream audience of potential investors?  Let us know in the comments below.


Images courtesy of Twitter, Instagram, Wikimedia Commons

Share