Lis 10

Cryptocurrencies to Target for the Next Bull-Run (OAX, XLM, HOT)

Cryptocurrencies OAX, HOT, and XLM are worth looking into if you’re looking for coins with the best chance to outperform Bitcoin price in Q4 2018. 


Small Cap Vs. Low Price Cryptos (A Trader’s Mindset)

The mindset of a cryptocurrency trader in a bull vs. a bear market is vastly different. During the last bull-run, two types of cryptocurrencies had a tendency to ‘pump.’ Ones with very low market caps on big exchanges and those with very low prices.

The coins with low market caps, dedicated teams, with the network to get listed on top exchanges should be acquisition targets heading into the next bull-run vs. the alternative of buying low priced coins.

A very low market cap coin with major unknown quarter four events: OAX, should perform exceptionally well in the short term. 

The market sentiment has continued to shift from the summer of 2018 through the beginning of quarter four. With crypto personalities and technical analysis pointing to a December bull-run, the question becomes fairly obvious: How does one take advantage of the shifting of market sentiment and the possible impending moonshot?

Amusement park ride

The last bull run which concluded 2017 had two main types of cryptocurrencies that saw significant pumps. These two types included very low cost per coin cryptocurrencies regardless of their market capitalization. The other type were coins that had a very low market cap. Coins with a low market cap are the coins which should be targeted vs. the ones that the price seems “cheap” on.

Most individuals who are not accustomed to cryptocurrencies do not realize the importance of market capitalization vs. actual price.

For example: consider 2 cryptocurrencies, one is trading at $0.50 the other at $2.00, the first has a market cap of $100 million, the second has a market cap of $5 million.

Which is the better investment if both are about to have $1 million in demand of the cryptocurrency generated by an announcement?

The answer is the second, with a $5 million market cap and $2.00 price. The reason for this is if $1 million of demand is generated for a cryptocurrency with a $5 million market cap the total market cap will increase to $6 million. This 20% increase in market cap will be reflected by the price increasing by 20%, from $2.00 to $2.40.

The first coin with a market cap of $100 million would now have a market cap of $101 million and the $.50 crypto would have increased to $0.505. If you purchased the cryptocurrency with the lower market cap you would make 20% compared to 2% for the coin with the higher market cap.

With all else equal it is always a better idea to target a lower market cap cryptocurrency vs. one with a ‘lower price.’

OAX has one of the smallest market caps on Binance and is my #1 acquisition target for this reason, along with many others. For those wanting a lower price coin with a significantly higher market cap HOT and XLM are fantastic options.

OAX

OAX 00 is one of the lesser known and discussed cryptocurrencies, which is a great reason to begin targeting it before the Twitter personalities and “whales” begin their accumulation. OAX is also listed on the highest volume exchange, Binance, which is notorious for solely listing tier 1 projects.

So what is OAX’s project that impressed Binance enough to list?

I had the pleasure of discussing with the OAX team many aspects about their project during a recent interview. According to Wayland Chan who is the Technology Lead of the OAX Foundation, by the end of 2018 OAX will “deliver a stand-alone DEX using the work done building a scalable layer 2 solution.” This very significant event is not listed on cryptocurrency calendar websites nor is it commonly known in the space.

What is most impressive about OAX’s decentralized exchange (“DEX”) is that they plan to have an “off-chain order book, off chain order execution, as well as no custody of user assets.” OAX could be the scalable solution that DEX’s have sought for years. The OAX project is very ambitious but having secured a Binance listing their legitimacy should not be challenged.

The first prototype of the DEX was delivered in June and since the developer have been finalizing the layer 2 solution using off-chain solutions to solve the performance problems of blockchains.

According to OAX’s Technology Lead,

We’ve made huge strides…and expect to soon announce some big news that will definitely rock the boat.

As much as I pressed I was unable to get an inside glance at what this ‘breakthrough’ was.

This year, OAX was trading as high as $2.28, having dropped to under $0.35 since. With their platform becoming a reality, now is the perfect time to acquire a position. The future of OAX looks very bright. OAX plans to have a layer 2 working prototype by the end of 2018. Their DEX has the potential to revolutionize the exchange community and the scaling difficulties they face.

ICOs were all the craze at the end of 2017, DEXs are becoming the next craze with looming regulations and government crackdowns already underway. With decentralized exchanges becoming the new ‘hot thing’ and the bear market coming to an end, OAX clearly is an acquire and HODL for traders and investors alike.

OAX is one of the few cryptocurrencies that could re-approach their all-time high, once the crypto community awakens to the significance of their project.

HOT

How does HOT (Holochain) 00 compete against other cryptocurrencies in the space?

HOT has a lower “price per coin” than OAX but their market cap is almost 20x higher than OAX’s. This means if both HOT and OAX received the same amount of publicity the price of HOT would move 5% while the price of OAX would move 100%.

This is the main reason targeting smaller cap cryptos with platforms on the cusp of development makes for better “moonshot” investments than targeting a crypto with a $100 million-plus market cap.

However, HOT does get a unique award for being the least expensive coin on Binance (even though it has a huge market cap). During a bull run new ‘dumb’ money enters the market and they flock to both the cheapest coin and the ones with the lowest market caps (once they get a bit smarter). HOT qualifies as the “cheapest cryptocurrency on Binance,” and therefore money will likely flow into it the minute the markets start moving North.

Understanding market caps makes those looking to choose between HOT and OAX, pick OAX very easily. However, when choosing an investment, it is important to look beyond the market cap. How is the team? What is the product or platform?

Holochain is distributed hosting, owned and run by the users. The goal of HOT is to facilitate businesses and communities to build the next internet paradigm. Their goals seem to be extravagant but the team is continuously pushing forward with their roadmap.

For those wanting to capitalize on new ‘dumb’ money rushing into the crypto space in the next few months, HOT is not a bad option. OAX will likely to provide much higher returns than the larger market cap coins like HOT, however, diversification should not be overlooked for short-term profits.

XLM 

XLM (Stellar Lumens) 00 has been all over the news this week with their announcement of the Blockchain wallet giving away $125 million XLM.

This coupled with their likely imminent addition to Coinbase makes them a short-term speculatively play receiving a lot of attention. With a market cap in the Top 10 cryptocurrencies and a coin value of under $1.00, XLM could post impressive gains.

Stellar: Headed Towards $1?

However, that “moon” that everyone is searching for is unlikely to come from a cryptocurrency with a $1 billion-plus market cap. One can expect reasonable gains following a Coinbase listing but that is truly what all are HODLing for at this point.

Even though XLM is unlikely to post gains associated with coins that have less than a $10 million market cap, they still have plenty of exciting developments occurring.

XLM has partnered with IBM to allow them to use their Stellar network to bring more transparency into their payment structure. Analysts have predicted this partnership could actually replace the current SWIFT/IBAN structure as the global standard. If this partnership results in anything relevant XLM will have moon potential even as a $1 billion-plus market cap cryptocurrency.

Another one of XLM’s unique partnerships is with Veridium and IBM to tokenize carbon credits globally. This is one of many partnerships that will make XLM relevant for the short and long term.

The projects for XLM continue with Stellar X. This is Stellar’s version of a DEX. Also:

  • Open Garden is a project that allows users to turn their phone into a hotspot while earning a reward in XLM for data used.
  • TillBilly is Stellar’s version of a point of sale system, easing the burden of a paper receipt.
  • SmartLands looks to tokenize agricultural lands on the Stellar Network.
  • Sure Remit is one of the leading remittance networks in Africa that allows the transfer of funds. They have partnered with Stellar and have branches in Kenya, Rwanda, and many other African countries.

The list of partnerships and use cases for XLM go on and on. XLM is a great long-term HODL when compared to other cryptocurrencies in the Top 10. However, for significant short-term gains, lower market cap cryptocurrencies with major under the radar events are better options.

Cryptocurrencies Ranked By Risk

As new money rushes into the crypto space it will likely end up in 1 of 2 places: very low-cost coins, or very low market cap coins. Regarding percentage return, it is always better to target low market cap coins, not just ‘low cost’ coins.

This is why OAX is a favorite this week with their DEX on the horizon, a 1 on 1 interview, and a Binance listing; this project is well positioned being one of the smallest market cap coins on Binance. With little public awareness regarding their underlying news, OAX could be one of the most significant gainers of quarter four. If OAX ends quarter four with a market cap of $28 million, it will have returned over 200% for those reading this article.

HOT will likely be a target of ‘dumb’ money searching for a cheap coin on the biggest exchanges. Once they learn what a market cap is they will likely switch their position. The HOT project is a great one, but regarding undervalued cryptocurrencies, there are better options.

XLM may be a Top 10 cryptocurrency but with a Coinbase listing seeming imminent and partnerships that compete with Ripple they will likely post positive returns in the short-term. This is important as they are positioned for long-term success as well. Their short-term gains will likely be inferior to those with micro-caps but their guaranteed success long term reduces a great amount of investor risk.

Those seeking the highest risk, highest reward crypto should target OAX. Those wanting a safer play that is likely to still post positive gains, XLM is the choice. For those wanting to chase dumb money entering the market HOT is an okay choice, but OAX will likely still post better returns based on their market cap being 1/20th of the size.

To read the Crypto King’s prior articles or to get in contact directly with him, you can on Twitter (@JbtheCryptoKing) or Reddit. The King is the founder of ANON and actively trades cryptocurrencies.

[Disclaimer: This views expressed in this article belong solely to the author and do not reflect the views of Bitcoinist. They are intended as opinion for educational purposes and should not be taken as financial advice.]


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Říj 27

10 Years On: Five Things Needed for the Mass Adoption of Bitcoin

It’s been ten years since Satoshi Nakamoto published the Bitcoin White Paper and introduced cryptocurrencies to the world. His radical vision of a decentralized peer-to-peer electronic cash system was groundbreaking, as it sought to rebuild the structures that upheld our global financial institutions. A decade on, the cryptocurrencies market is now worth $209 billion globally, and there are more than a thousand separate tokens in circulation.


[Note: This is a guest op-ed article submitted by Samuel Leach, Founder of Yield Coin]

Despite this success, Nakamoto’s vision is yet to be fully realized. Although “cryptos” and associated phrases have entered the popular language, and awareness of them is at an all-time high, uptake has been restricted to a narrow subset of society.

Bloomberg estimates that around a thousand users own approximately 40 percent of all bitcoin currently in circulation and cryptos have failed to supplant fiat currency. Before we see the mass adoption of cryptocurrencies, there are a number of obstacles that first need to be overcome.

Regulation

While regulation is often treated as a pariah among many in the crypto community, if executed properly, it will bring beneficial change for all. Cryptocurrencies have only been in existence for a relatively short amount of time meaning many governments are still figuring out the best way to regulate them. The result of this has been a crypto market structured in a laissez-faire fashion. While it can be argued that this has fostered further innovation, it has undoubtedly led to several negative side effects.

At present, anyone could set-up a new cryptocurrency and raise significant capital without having to face repercussions if they fail to implement their plans. This has reduced overall confidence in the market, as it can be difficult to differentiate legitimate projects from nefarious ones. This is also preventing many institutional investors from entering the market, as the lack of regulatory guidelines will lead to compliance issues on their part.

Volatility

A daily price swing of 10-20 percent is not uncommon among most cryptos, making them exceptionally volatile in comparison to fiat currencies; in comparison, the pound lost 4 percent of its value against the dollar on the infamous Black Wednesday. Finding a way to temper this instability would go some way to certifying cryptos as legitimate currencies.

Bitcoin Price Volatility

At the moment, it would take a very brave consumer and equally brave merchant to conduct a transaction using cryptocurrencies. The inherent volatility of most cryptos means consumers run the risk of massively overpaying and similarly, the outlet risks the value of the crypto received being eroded.

Practicality, Usability & Accessibility

While cryptocurrencies have seen some mainstream usage among investors interested in day trading and investing, this uptake hasn’t been reflected by everyday consumers.  This is mostly due to crypto’s impracticality for day-to-day usage. Some of this is due to its price volatility but a more central factor is the lack of businesses who are willing to accept it as a form of payment. If individuals are unable to find a legitimate use case for their crypto, then its value as a form of electronic cash is zero. Further, the process of acquiring crypto itself is difficult, meaning uptake has been restricted to a tech-savvy subset of the overall population.

It should be noted, however, that while numerous solutions are in place allowing the spending of bitcoin via third-party services such as gift cardsBTMs, etc. — this often adds friction and introduces more middlemen into the experience.

BTCPay is a Better (and Cheaper) BitPay, Says Core Developer Nicolas Dorier cryptocurrencies

Security

In the beginning, cryptocurrency related crime was almost non-existent, but as the market has grown, it has attracted the attention of organized scammers and hackers. Earlier this year, criminals stole $530 million worth of crypto from the Coincheck exchange, and there have been many other examples of large-scale thefts.

With ‘traditional’ financial systems, when a payment is made, third parties ensure that the transaction goes through and if anything does go wrong, they are liable for recovering the funds. Similarly, if your credit or debit card information is stolen, then you aren’t responsible for any transactions made. With cryptos, however, it is the user’s responsibility to ensure that all the data associated with a transaction is correct. If a user’s private key is stolen, then crypto can be stolen with a low chance of recovery.

Understanding

Research has found that 38 percent of the British population do not ‘understand’ cryptocurrency. With the commonly held misconception that it is a tool for criminals to launder money being the most cited reason for mistrusting it. While those involved in the community understand the revolutionary possibilities of cryptos, the wider public still needs further education on the potential benefits.

For those not familiar with trading concepts, the notional value and artificial scarcity that underpins crypto may be hard to grasp.  Further, the existing way in which money has been exchanged for goods has been long established, and cryptocurrencies will require people to think about transactions in an entirely new way.

Without a doubt, the introduction of cryptos has been revolutionary. However, whether we are within the midst of a complete reconstitution of the financial system remains to be seen. If the engineers and developers involved with cryptos can find a way to deal with the intense volatility and lack of widespread understanding around cryptos, then their benefits will be able to be enjoyed by all.

Do you agree with these barriers to adoption? Are there more? Share your thoughts below!


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Říj 19

Nordea in Money Laundering Scandal After Calling Bitcoin ‘High-Risk’ for Money Laundering

Nordic banking giant Nordea Bank is allegedly implicated in a multi-million money laundering scandal. Reportedly, the case is related to another recent money laundering scheme involving Denmark’s Danske Bank.


Nordea in Hot Water 

Banking giant Nordea Bank, headquartered in Helsinki, is alleged to have accepted criminally-sourced funds from banks located in Lithuania and Estonia.

The giant confirmed that it’s aware of the report on Tuesday October 16th:

We are aware of the report, and at Nordea we work closely with the relevant authorities in the countries in which we operate, including the Nordic Financial Intelligence Units.

According to Sweden’s public broadcaster SVT, some 365 individual accounts at the bank have allegedly received payments from shell companies amounting to 150 million euros. What is more, the media, which claims to have access to the report, outlines that part of those payments came from the Estonian branch of Danske Bank.

Danske Bank

Bitcoinist reported earlier in October that Denmark’s Danske Bank found itself at the center of a tremendous Russian money laundering scandal, alleging that it has illegitimately processed some $235 billion.

And Yet, Cryptocurrencies Present a Threat?

Danske Bank reportedly laundered more money than the entire cryptocurrency market capitalization alone. That’s one bank at one location.

According to the report mentioned above, Nordea is also at the center of yet another 150 million money laundering scandal. This is the same bank which banned all of its 31,000 employees from trading Bitcoin 00 because of its “high risks.”

Back in February, another major Dutch bank – Rabobank, was also fined for accepting at least $369 million in illegal proceeds from drug trafficking and other activity from the period between 2009 and 2012.

Rabobank also warned against the risks of Bitcoin. Quickly after that, the bank took a major U-turn and announced that it plans to offer a cryptocurrency wallet.

Coincheck NEM laundered

The obvious conclusions aside, it’s important to note that multiple international governmental institutions have already spoken up on the risks of cryptocurrencies associated with illicit activities.

A report from the Financial Services and Treasury of Hong Kong on Money Laundering and Terrorist Financing Risk Assessment revealed that cryptocurrencies are widely left out of organized crime.

The National Crime Agency of the UK, in its National Risk Assessment of Money Laundering and Terrorist Financing report of 2017 also outlined that the risks of cryptocurrencies used for money laundering is “relatively low.”

What do you think of the recent allegations against Nordea? Don’t hesitate to let us know in the comments below!


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Říj 17

EToro CEO: We’ll See ‘Greatest Transfer of Wealth Ever Onto the Blockchain’ [Interview]

Bitcoinist spoke with Yoni Assia, CEO of the largest social trading platform in the world eToro on their latest push to take cryptocurrency mainstream. 


Interview with eToro CEO, Yoni Assia

With over 10 million users globally, eToro has become a somewhat of a household name. It is also no secret that the company has been a big supporter of Bitcoin and other cryptocurrencies for a few years now. Its logo is often seen alongside numerous cryptocurrencies almost everywhere in the UK and elsewhere.

etoro

Assia explained why eToro is so focused on raising cryptocurrency awareness, why regulation is important for mass adoption, and his opinion on ‘Bitcoin maximalism.’

Bitcoinist: You’ve just announced a significant cut in spreads on crypto-assets. Why did you decide to do this? User feedback or simply a way to make trading more affordable for the average person?

Yoni Assia: We cut our crypto spreads as part of our efforts to support the mass adoption of crypto.  We want to make it as easy as possible for investors to buy, hold and sell crypto and cutting spreads so clients keep more of their gain is one part of this.

Bitcoinist: What other bottlenecks to wide-scale user adoption currently exist in your opinion?

Yoni Assia: Currently, the level of understanding of crypto-assets is one of the barriers to wide-scale user adoption of, and investment in, crypto-assets. It’s a barrier that we’ve looked to address at eToro through building our community of traders and investors who can share their investment strategies and insights. From this, others are able to follow the approaches of those who have been the most successful. We also provide educational material and a virtual portfolio.

Other barriers for crypto center on the fact that this is still a very young asset class. Bitcoin, the first crypto, is still less than 10 years old. We believe that the challenges around scalability, speed, volatility etc will be solved over time.

Bitcoinist: Your platform has over 10 million users. Since the so-called bubble ‘popped’ in 2018 following the historic bull-run of late 2017, has your platform seen a drop in new user signups or the opposite?

New clients continue to join the eToro platform every day. Some come for crypto, others for the other more traditional asset classes we offer such as stocks and commodities or our CopyPortfolios. It is also interesting to note that many of the clients who were attracted to eToro by crypto have also diversified into other assets on the platform.

Bitcoinist: At current rates, can you give us an idea of how many users you expect to start trading crypto on your platform over the next few years?

Yoni Assia: While I can’t give you a number, we expect to continue to grow the number of users on the platform over the next few years. EToro is continuing to expand its global footprint, for example, we will be launching in the US later this year. Some people come to eToro for crypto, but we also offer a multitude of other asset classes.

Bitcoinist: What is the most popular cryptocurrency on eToro? Do you think this could change in the future?

Yoni Assia: The most popular crypto on eToro is XRP 00. I don’t have a crystal ball so I can’t predict the future. Our clients value diversification so we see interest in any new coins added to the platform.

Bitcoinist: Does a diversified crypto-asset portfolio still make sense given that Bitcoin has experienced the least bleeding relative to other cryptocurrencies?

Yoni Assia: Maintaining a diversified portfolio, both in terms of crypto-assets and in terms of wider assets, is a prudent way to invest regardless of market conditions or asset performance.

Bitcoinist: Etoro has signed numerous partnerships with major sports teams and pro athletes to promote cryptocurrencies. Have these efforts borne fruit so far? And what other initiatives do you have planned?

Yoni Assia: We’ve recently sponsored seven premier league clubs in the UK as well as German football team Eintracht Frankfurt. We’ve also partnered with French tennis player and eToro user Gaelle Monfils. These initiatives help us to raise awareness of crypto and we will continue to form partnerships that help us to strengthen our brand and build awareness.

Bitcoinist: Why do you believe regulation will accelerate mass adoption? Some regulations such as the BitLicense in New York state have forced companies to leave, for example. Do you favor more of a hands-off approach or clear-cut regulations just like in traditional finance?

Yoni Assia: A conducive regulatory environment is vital to protect consumers and foster growth and innovation within the investment industry. We believe that regulation will lead to greater adoption by institutions and intermediaries, which will accelerate mass adoption.

In the UK, eToro was the driving force behind the establishment of CryptoUK, the first self-regulatory trade association for the UK crypto-asset industry. Its remit is to promote higher standards of conduct and to educate politicians and regulators about the industry and its potential. We welcome the recent report from the UK’s Treasury Select Committee which reflected Crypto UK’s calls for the introduction of proportionate regulation to improve standards and encourage growth.

Bitcoinist: Why do you believe Bitcoin and crypto can offer opportunities to traditional finance? Wasn’t Bitcoin created to disrupt and disinter-mediate traditional finance, fractional-reserve banking, and fiat currencies?

Yoni Assia: We don’t’ believe that traditional finance will disappear overnight and we are already seeing many large financial institutions exploring the opportunities offered by crypto and the blockchain technology that underpins it.

We believe that crypto, and the underlying blockchain technology, will have a huge impact on global finance. Blockchain has the potential to revolutionize finance by enabling the tokenization of all assets, not just currencies. In time, we believe that we will see the greatest transfer of wealth ever onto the blockchain.

Bitcoinist: Are you personally in the “Blockchain not Bitcoin” camp or vice versa? Why?

Yoni Assia: They are two separate things and being in favor of one doesn’t have to mean you are against the other. For me the easiest way to try and explain the significance of crypto and the blockchain technology that underpins it is to compare it to the internet.

The relationship between blockchain and crypto is parallel to the internet and email. Much like email is just one use case of the internet, bitcoin is just one use case of the Blockchain. Bitcoin was the first crypto and almost ten years after the white paper was written remains the most dominant.

Whether Bitcoin will still be the most significant crypto in another ten years is not for me to say, but I do believe that blockchain will transform finance in the same way that the internet revolutionized communications.

Bitcoinist: What is your opinion on Bitcoin maximalism? Will it be winner takes all (with everything being built on the Bitcoin blockchain in the future) or will there be room for many cryptocurrencies to exist?

Yoni Assia: The crypto-asset market is still very much in its infancy, and crypto-assets are still vying to prove their respective use cases to the world. Currently, different crypto-assets seek to solve different problems and are experiencing varying levels of adoption. There absolutely could be room for a few cryptocurrencies to exist, but it’s too early to say which ones this could be at this stage.

Do you agree with Assia’s comments? Share your thoughts below! 


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Zář 16

Bitcoin Price Analysis: Are Oversold Bounces Leading the Market Higher?

Bitcoin is making a slow and steady recovery toward $7,000. Has bearish market sentiment alleviated? Or, are the current gains simply the result of a market-wide oversold bounce?


On Thursday, BTC broke through the $6,450 resistance and proceeded to reach a weekly high just shy of $6,600. This was prior to a  brief pullback to $6,400. The weekly chart shows Bitcoin (BTC) 00 about to set a higher low. After last week’s break from this pattern, a few more weeks of higher lows will be required to determine if a trend change is in order.

4-Hour Chart

Since pulling back from the weekly high ($6,597), BTC has been continuously rejected near the 200-MA ($6,612). Up til this morning, a pattern of lower highs continued as the RSI and Stoch began to descend from overbought territory.

Since pulling back from the weekly high ($6,597), BTC has been continuously rejected near the 200-MA ($6,612). Up until this morning, a pattern of lower highs continued as the RSI and Stoch began to descend from overbought territory.

These frequent rejections at $6,530 are a result of a lack of bull volume on each attempt and if BTC were to fall below $6,414 (20-MA) and $6,358 (50-MA and most recent low) then a revisit to $6,270 could occur.

BTC needs to overcome yesterday’s high and proceed to take out the 200-MA, which is also aligned with the 38.2% Fib retracement level at $6,623.

A more convincing move would be for BTC to gain to the midway point ($6,780) of last week’s drop from $7,400 as this would place BTC above the 100-MA and the 38.2% Fib retracement level.

Daily Chart

BTC did manage to close above the 10-day MA and while the overhead moving averages are still angled downward they have begun to flatten.

BTC did manage to close above the 10-day MA and while the overhead moving averages are still angled downward they have begun to flatten. The RSI is climbing mid-channel through a neutral zone and the Stoch is lifting from near oversold territory.

Yesterday’s doji candle shows a degree of indecision. Fortunately BTC went on to post a higher low not shown on chart.

1-Hour Chart

The 1-hour chart shows BTC repeatedly pulling back from $6,570 and $6,550 and each pullback has dropped BTC price from the upper arm to the mid-channel.

The 1-hour chart shows BTC repeatedly pulling back from $6,570 and $6,550. Each pullback has dropped BTC price from the upper arm to the mid-channel. Then similarly below the 10-MA of the Bollinger band (set at 10, 1, 9).

The 20 and 50-MA should serve as short-term supports. However, the move into the lower BB arm and the sharply dropping Stoch and RSI mean BTC could pullback slightly as it continues to consolidate throughout the day.

Projections

BTC is well situated for short-term gains but remains biased toward bears given the lack of follow-through from bulls after frequent rejections and positioning of the moving averages on the daily and 4-hour chart.

BTC 00 needs to overcome the 200-MA ($6,612) and there is resistance at $6,710 where the 100-MA is situated.

[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 Bitcoin price will go this weekend? Let us know in the comments below! 


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Zář 12

Bitcoin Price Analysis: How Long Will $6000 Support Hold?

Bears remain fully in control of Bitcoin price, yet somehow, the $6,000 support is holding…for now.


Bitcoin Price: 4-Hour Chart

After posting a daily high at $6,460, bitcoin price fell below the wedge formation and constant rejections at the 20-MA have kept BTC 00 in the pattern of lower lows.

Eventually, a bear flag formed and BTC continues to lose the hourly uptrend after every bull break so traders should either hold their powder or place tight stops in order to avoid being trapped by fake outs.

The drop below the ascending trendline was the $6,117 support but the overall scenario remains overwhelmingly bearish.

Granted the bears do have the ball and the 4-hour chart shows higher lows being set throughout the day and a bullish divergence on the RSI does inspire a smattering of hope. However, earlier today the 50-MA dropped below the 200-MA and all of the other short-term moving averages are crossed below the long-term MAs and BTC trades close to 2018 lows.

BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573 which is an area that will likely provide stiff resistance.

While more downside is likely, BTC does have support at $6,180, $6,122, $6,000 and $5,900.

BTC appears to be consolidating into a tighter range but still struggles to move above the 20-MA. The bullish divergence in the RSI throws mixed signals as the Bollinger bands constrict, but low buy volume and the consistent failure by BTC to move above the daily high (red line) suggest a move to the downside.

Of course, we would love to see otherwise but the recent bearish cross of the 50-MA below the 200-MA make the possibility of such an outcome less likely.

Daily Chart

Looking Ahead

BTC 00 appears to be on a path to $6,000 unless the technical setup changes or a bullish media story can shift sentiment. One can only hope that a move below $6,000 will lure buyers and produce a nice bounce or better yet, a trend reversal but at this point, this is nothing more than wishful thinking.

A bullish divergence can be seen in the 4-hour RSI but all other indicators are bearish so try and curb your enthusiasm.

BTC needs to move above the daily high at $6,460 (slightly above the 23.6% Fib retracement) and the 200-MA at $6,573 in order to garner buyers’ interest.

[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 Bitcoin price will go this weekend? Let us know in the comments below! 


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Zář 04

Bitcoin Price Analysis: Bull Breakout or Bearish Reversal?

Bitcoin is working hard to overtake the $7,300 mark. However, the holding aspect that has proven problematic.


Bitcoin Price Market Overview

Bitcoin continues to reject at $7,300 even though it has staged a few inspiring pops above the $7,300 resistance. After a nearly 27% gain over the past two weeks, cooling off and consolidation isare expected. The pattern of higher lows has consistently been re-established after each pullback from $7,300. Add to this the fact that there is a range of other positive signs which show BTC is well situated at the moment.

4-Hour Chart

Add to this the fact that there is a range of other positive signs which show BTC is well situated at the moment.

The weekly MACD (not pictured here) shows a bullish cross appearing on August 26th, while the 20-MA rises above all the longer term moving averages on the 4hr chart. The 100-MA recently crossed above the 200-MA — simply following the movement of the 5 and 10-hour EMA along with the ups and downs of the Stoch and RSI have provided easy trading opportunities for day traders.

Bulls have shown some signs of exhaustion as a closer look at the rejected pops above $7,300 shows that a series of lower highs, as well as the occasional higher volume spike above $7,320, is quickly rejected. This plunges BTC to the support zone around $7,270 to $7,250.

BTC now trades outside of the ascending channel. As shown by #1 and #2 on the 4-hour chart, each rejection at or above $7,300 has seen BTC return to $7,255 and $7,234. These have proven to be fairly reliable supports, but a move below $7,255 places BTC. This lies outside of the ascending channel, and $7,234 below the second ascending trendline.

Looking Ahead

In the event of a pullback, BTC has consistently found support at $7,250 and $7,332. $7,200 – $7,190 follow close by. 

The outlook for BTC remains positive. Still, the cryptocurrency needs to quickly surpass, and maintain control over, the $7,300 resistance. This would place BTC back into the ascending channel.

Trade sensibly!

[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 Bitcoin price will go this weekend? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com.

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Srp 29

Bitcoin Price Analysis: Is This Yet Another Sucker’s Rally?

Bitcoin price has been on a rather pleasant run as of late and a move above the ascending channel would make this unexpected treat a little bit sweeter as a path towards $7,500 and above could open up.


Bitcoin Price Market Overview

This current rally has everyone feeling all bullish lately and even a small group of select altcoins are feeling the love. Question is, did BTC actually reach a bottom and reverse or is this just another one of those $1,000 green candle teases that eventually leads to a sharp reversal and revisit to prices below $6,000?

Let’s have a quick look at the charts to see where BTC 00 might go.

1-Hour Chart

Bitcoin price is confidently bullish for the short-term, though a move above the ascending trendline grows more urgent in order for BTC to maintain its current pace. BTC has pulled back from its daily high at $7,127 and appears to be consolidating from $7,000 to $7,100 which was to be expected as the RSI and Stoch spent most of the day bouncing around in overbought territory.

The 5-hour exponential moving average (EMA) has crossed below the 10-EMA and a drop below $7,000 would not be surprising as a mild pullback after rapid gains is typical.

In the event of a pullback, BTC is likely to rebound back to today’s range as the cryptocurrency remains in the ascending channel with the longer term moving average below as support. Furthermore, the RSI and Stoch have room to fall and accommodate a pullback to $6,875 before reversing course.

4-Hour Chart

The recent upside move brought BTC 00 above the 200-day MA and the 20-MA is on the verge of crossing above the 200 MA while the 50 and 100-day MA have already crossed. Despite a slight pullback from today’s high ($7,127) BTC continues to consolidate within the ascending channel and while volume has tapered off BTC is well situated.

While the pattern of higher lows has fragmented, it is preserved on the daily chart and will remain so as long as the BTC stays above 6,568.

Looking Ahead

Barring a drop below the ascending trendline at $6,864, BTC could extend to the top of ascending trendline at $7,350 over the short-term.

A sharper pullback to $6,875 would not be surprising and bulls are likely to buy the dip in anticipation of a quick bounce back above $7,000.

BTC will encounter resistance at $7,128, $7,165 and $7,490. In the event of a reversal, BTC will find support at $6,877, $6,711 and $6,566. BTC has spent the day bouncing off softer supports at $7,000, $7,030 and $7,050.

[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 Bitcoin price will go? Let us know in the comments below! 


Images courtesy of Shutterstock, Tradingview.com.

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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

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Srp 15

New Transport Layer bloXroute Promises to Solve Bitcoin’s Biggest Problem

bloXroute Labs and a team of Northwestern University students believe Bitcoin’s biggest problem, scalability, can be solved without affecting its chief virtue — decentralization.

Northwestern and bloXroute Labs Are Working to Solve Scalability Issue

Critics have always identified the limited number of transactions that Bitcoin’s 00 network can process as its most significant problem. They point out that this is what has prevented Bitcoin from becoming the most effective form of payment in the world.

Several techniques have been and are currently being implemented to address the issue of scalability and high transaction fees. Nevertheless, they are not good enough to compete today with Visa, for example.

bloXroute Labs identifies the problem that affects Bitcoin and other cryptocurrencies’ networks, as follows:

Specifically, they employ a trustless P2P network model to propagate transactions and blocks, which does not scale as the volume of transactions increases, a fact research has shown time and again. Indeed, if blocks and transactions were to be instantly propagated, immense blocks could have been mined at a rapid pace, until the limitation of designated processing units and flash storage arrays was reached.

Now, a team comprised of bloXroute Labs engineers and students and academics of Northwestern University believe they have found a trustless scheme to overcome this scalability bottleneck.Now, a team comprised of bloXroute Labs engineers and students and academics of Northwestern University believe they have found a trustless scheme to overcome this scalability bottleneck. According to Watch Market:

The Northwestern University proposal attempts to address some of those issues by creating an infrastructure that compresses the information on the blockchain before sending, with the propagation being it will go faster.

In this regard, bloXroute Labs proposes bloXroute, a transport layer that would run underneath, allowing Bitcoin and all cryptocurrencies to scale to thousands of chain transactions per second.

According to the whitepaper entitled bloXroute: A Scalable Trustless Blockchain Distribution Network,”

“bloXroute allows to safely increase the block size and to cut down the time interval between blocks, without increasing the risk of forks, and provides real-time support for immediate transactions with zero-confirmation (0-conf).”

The whitepaper stresses that by using bloXroute, the network becomes even more decentralized because it requires neither consensus nor a protocol change beyond adjusting system parameters.

Technological Advances Are Fueling Bitcoin Optimism

Novel technological initiatives that include SegWit, Lightning Network, and Atomic Multi-Path Payments over Lightning, and new features in Bitcoin Core 0.16.0, are also promising to help to address Bitcoin’s scalability issue.

For example, Lightning Network is growing and enabling faster transactions among nodes. As of this writing, Lightning Network boasts over 3,000 nodes, with a capacity of about 82 bitcoins.

The Northwestern University team started working in this project in March 2018, and claims to be moving forward to solving the scaling issue. According to Sarit Markovich, professor of strategy at Kellogg School of Management at Northwestern University,

“We are scaling at 100 times better than what Bitcoin 00 is doing now. And we are hoping for 1,000.”

Do you think the newest technological innovations are helping to solve cryptocurrencies’ scalability issues? Let us know in the comments below!

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Images courtesy of Pixabay, Wikimedia/by Rdsmith4

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