Why the Latest Bitcoin Dump Could Actually Launch the Crypto Market into Bullish Territory

The bitcoin price on Wednesday depreciated as much as 2.56 percent on the back of a stronger US dollar. Paradoxically, that might not be such a bad thing for the crypto market.

The bitcoin-to-dollar exchange rate (BTC/USD) bottomed at $3,340 on an intraday basis, while retesting the low of January 29 trading session. There was a little attempt from bulls to reverse the price action with the bearish bias intact. Nevertheless, the pair consolidated above $3,340, which served as an opportunity to reclaim $3,400 in the near-term.

Bitcoin’s Six Triangles

BITCOIN (BTC/USD) 4H | SOURCE: COINBASE, TRADINGVIEW.COM

In our previous analysis published Monday, we had predicted a bitcoin dump as the cryptocurrency’s volatility and volume went lower than normal. We also noted a strikingly similar pattern between bitcoin’s current and previous price actions. In this analysis, we aim to elaborate on the same to predict where the next bitcoin move could be.

In the Coinbase chart above, we can see bitcoin trending lower inside a falling wedge formation. Inside the wedge, the price consolidated inside a small symmetrical triangle (1). It attempted a breakout that eventually failed to blossom. The price reversed and formed a large bear flag, then continued to consolidate again inside a new symmetric triangle (2). The price action repeated four times, excluding the current scenario (6) which has yet to mature.

A Closer Look at the Bitcoin Price

Let’s have a closer look at the same chart.

BITCOIN (BTC/USD) 4H | SOURCE: COINBASE, TRADINGVIEW.COM

As period 6 develops, bitcoin could form a smaller symmetrical triangle as it attempts to retest the falling wedge resistance to the upside (depicted as a dotted falling trendline). Meanwhile, the price would keep pressure on $3,430 to remain its interim resistance. Based on the previous price actions, bitcoin should continue its downside momentum. However, as we are reaching the apex of the falling wedge, the price should technically attempt a strong upside breakout action.

As we wrote in our previous analysis:

“Technically, a falling wedge pattern is a bullish indicator. It begins broadly at the top but squeezes as the asset moves lower while forming reaction highs and reactions lows that eventually converge. Upon closing in towards the cone’s apex, the asset undergoes a resistance breakout to find a new support area.”

Consequently, there is a strong chance for bitcoin to break above its wedge pattern on the next upside move. Traders should watch out for reversal indicators such as a doji — which occurs when a candle has an open and close at the same price — coupled with a spike in trading volume.

Conversely, an extended downside action would push the bitcoin price towards $3,100 – the current bottom level.


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Author: Yashu Gola 
Image Credit: Featured Image from Shutterstock. Charts from TradingView.

Bitcoin Cash Price Analysis: BCH Adds $240 Million in 24 Hours

Latest Bitcoin Cash News

As it is, Bitcoin Cash describes itself as a Bitcoin alternative and a coin which operates as envisioned by Satoshi Nakamoto: that of acting as a medium of exchange, supplementing and eventually replacing political money. And they are doing a pretty good job despite dropping market valuation, network difficulty and transactional volumes.

With the Wikimedia Foundation changing payment processors and preferring BitPay over CoinBase, donors from all over the world can make BCH contributions. Hopefully, this would help spur participation, draw demand which would eventually help lift the sixth most valuable coin from current lows. Already, there are hints of a recovery.

Aside from price action, their adoption drive is paying dividends. Roger Ver, the defender of the network in recent YouTube video said Bitcoin Cash has sealed a deal with ANA Group’s Alliance Cargo Direct. ANA Group describes itself as an inspiration of Japan providing “high-quality international distribution infrastructure utilizing our cargo aircraft”.

Unfortunately, he couldn’t divulge more because of Japan’s FSA stringent laws governing insider trading. All the same, Ver said they will make public their partnership adding that there were more publicly trading companies that would soon be looped in the network.

BCH/USD Price Analysis

Bitcoin Cash

Like XRP, BCH is on an uptrend and at the time of writing the fifth most valuable coin was up 3.5 percent. This is impressive and sets the ground for further gains that may see BCH prices rally towards $230 or higher as laid out in our previous BCH/USD trade plans.

Note that there is support even from a technical point of view. First, BCH is trending below 2017 lows meaning sellers were so vicious, they wiped out 2017 gains. Because of that, we expect a recovery, a bounce back, that will at least lift prices back to $250 or 2017 lows.

Bitcoin Cash Daily Chart

Trend and Candlestick Formation: Bullish, Breakout Pattern

Spurred by across the board shift of crypto sentiment, we expect BCH to be a benefactor. In that case, it is likely that the $70 floors set by Dec 2018 lows will be the launching pad for further higher highs in coming days. Note that BCH is trading within a short-term bull trend with caps at $250 or Dec 2018 highs. After more than 35 days of lower lows, we now have a double bar bull reversal pattern off the 78.6 percent mark.

This is bullish but there will be more reprieve for traders if there is momentum driving prices above $135—triggering risk-off traders angling to buy—and later $230—igniting risk averse traders with grand targets at $400—the main breakout level—previous support now resistance. $400 is pre-Bitcoin Cash hard fork supports and very significant in our analysis.

Volumes: Bullish

Momentum is building up. However, for bulls to be in control then we must see a high-volume break and close above $135. That means, if there would be a confirmation, then the bar must register high volumes exceeding those of Jan 28—62k and hopefully drive prices above $135 forcing aggressive traders to enter the trade. Only then will there be a bull’s confirmation.


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Author: Dalmas Ngetich
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Bitcoin Bulls Are Storming Wall Street’s Crypto Trading Desks

  • OTC desks across crypto are seeing bulls surge the market
  • That’s a sharp reversal from the end of 2018, a number of trading firms said

 

Wall Street’s trading desks offer a glimmer of hope for the floundering cryptocurrency market.

Buying pressure has increased at many of the so-called over-the-counter trading desks across the crypto world. The bullish sentiment mimics recent price action across the spot exchange market for crypto and is a sharp reversal from the environment at the end of 2018, numerous trading firms said.

One of the largest over-the-counter trading firms in crypto, Cumberland, tweeted Tuesday that the imbalance between buyers and sellers spiked by 60% over the last week. “Historically, our OTC trading is relatively balanced between buyers and sellers,” the firm said. “Over the last week, our OTC buy/sell ratio (by notional value) has increased approximately 60% towards counterparties buying.” Again, Cumberland isn’t alone.

Genesis Trading’s CEO Michael Moro said his firm also saw more buy orders flood in relative to the end of 2018 when a sizable number of crypto investors were selling for tax purposes. “I’ll echo Cumberland’s sentiments,” he said in an email. “Year-end saw quite a bit of selling for numerous reasons (e.g. tax loss selling and liquidation of crypto donations).”

“As the year turned, the selling pressure from such activities has subsided, and we have seen more buy-side interest pick up,” he added.

OTC desks oversee billions of dollars worth of institutional crypto trading on a daily basis. And in some respects, OTC trading paints a better picture of where the crypto market is from an institutional perspective as that’s where the largest trades are executed. As Monica Summerville, director of fintech research at capital markets consultancy Tabb Group noted in Forbes, “The big deals have to go OTC. A lot of the exchanges limit the order size, so you have to break up your orders, and that’s just fatal.” Summerville estimates that the OTC market is approximately two to three times larger than the trading activity across retail exchanges, including Kraken, Coinbase, and Binance.

Elsewhere, Galaxy Digital also says the tide has turned. “Galaxy’s trading desk saw robust tax-driven trading activity into year-end from asset manager and treasury accounts,” the firm said in a statement. “In early January, much of the flow reversed to buy back previously sold assets. Additionally, we have seen increased buying from Asia and EMEA traders, while some active sellers took a pause to start the year.” It’s a similar story at New York-based Paxos.

The firm, which operates both an OTC desk and an exchange, reports bullish trading activity in January.

“The nature of most of our trading flow so far this year has been buy tickets from emerging market traders,” said Paul Ciavardini, head of OTC trading at Paxos.

As for Circle’s OTC desk, the firm saw elevated sell pressure in December 2018 but that has “come back down in Jan 2019,” a spokesperson said in an emailed statement. “Sells by notional were slightly higher in December, but have started to reverse in early January,” the statement added. “Separately, we are seeing greater activity in trading alts and stablecoins in the first weeks of 2019.”

Still, there’s always one outlier. DV Chain CEO Garrett See said that his firm hasn’t seen a material difference between activity this month and the end of 2018.

“In January, it’s a pretty even between buyers and sellers, with marginally more buys than sells, but not materially more,” he said.


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Author: Frank Chaparro
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Binance CEO: ‘We Are Actually More Comfortable Investing Now’

On Friday (14 December 2018),  Changpeng Zhao (nickname: “CZ”), the CEO of crypto exchange Binance, said that his firm felt more comfortable with venture capital (VC) investing now than when the crypto market was in a much more bullish mood and cryptocurrency prices were at their all-time highs.

The Binance CEO made his comments via Twitter earlier today:

When CZ says that many VCs have “paused”, he is probably referring to comments made by Barry Silbert, the Founder and CEO of crypto-focused venture capital firm Digital Currency Group (DCG), on Wednesday (December 12th):


So, how “comfortable” does Binance really feel about VC investing at the moment? Well, yesterday, the VC arm of Binance, which is known as Binance Labstold crypto news outlet Coindesk that it “will launch new incubator programs in Berlin, Buenos Aires, Lagos, Singapore and Hong Kong come March 2019.”

Last month, Outlier Ventures, a VC firm that focuses on blockchain, IoT, and AI technologies, published a research report titled “State of Blockchains Q3”. This report said that “VC investments in the space at all time high as professionalisation of the industry continues”, and that this was due to the “drastic reduction in the frequency and size of token sales”:

“The drastic reduction in the frequency and size of token sales have created a gap that is now being filled by venture capital. VC financing is moving earlier in the funding cycle at Seed or Series A instead of the later stage, pre-ICO rounds we witnessed in Q2. Legal expenses, marketing costs and community building efforts are part of the reason why startups that don’t necessarily require a network or token have been avoiding token generation events completely. Until we see a recovery in Bitcoin’s price, it is likely that the model of token generation events that took center stage in 2017 would never return.”

In particular, the report found that:

  • “VC investments have surged from a total of $900 million in 2017 to $2.85 billion so far this year, a 316% increase”
  • “VCs are active across all funding stages with 119 deals disclosed this quarter the most ever as quality projects with developed products continue to receive financing”
  • “The US is still the dominant source of VC investments in the crypto space”

And yesterday, blockchain-focused investment firm Pantera Capital noted in its December newsletter (“Pantera Blockchain Letter”) that “there are many advantages of venture capital over ICO funding” (such as lower volatility), and that, in fact, “the majority of blockchain projects are better suited for equity rather than tokenization.”


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Author: Siamak Masnavi
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‘Rich Dad, Poor Dad’ Author Is Bullish on Bitcoin, Says USD Is a Scam

Robert Kiyosaki, the author of the famous financial self-help book Rich Dad, Poor Dad, has described the US dollar as a scam, declaring that bitcoin and other cryptocurrencies are “currencies of the people” that will outlive fiat currency.

LIONBIT

The Dollar is Toast’

Speaking with Kim Hughes on the Sane Crypto Podcast in which he excoriated the dollar, Kiyosaki also predicted an imminent stock market crash.

In his words:

“The US Dollar is a scam…I think the dollar is toast because gold and silver and cybercurrency are going to take it out…The US Dollar is gone…In the year 2000 there was one currency, the US Dollar. It was called the reserve currency of the world…and then came bitcoin or cybercurrency.”

Discussing his new book, Fake: Fake Money, Fake Teachers, Fake Assets, Kiyosaki revealed that he wrote about how gold, bitcoin, and other cryptocurrencies are a better hedge against an impending collapse of the financial market.

He said:

“In my new book… I talk about the three types of money today: God’s money, which is gold and silver, government’s money which is fiat currency, which is done by government decree which is the dollar… Then there’s the people’s money, which is cybercurrency on the blockchain technology. Gold is a hedge and I am expecting a collapse on the system…[and] which is why you are into cybercurrencies now… bitcoin and ethereum.”

Going further, he expressed a series of typically controversial financial opinions including a description of fiat currency savers as “losers” and calling for a return of the gold standard to the dollar following its 1971 removal by President Richard Nixon.

TIP

Doomsday Preacher?

Kiyosaki is no stranger to such opinions, having previously stated in an interview that another crash that will be “the biggest of all” is on its way following the crashes of 2000 and 2008.

He is not the only prominent public figure to hold similar opinions about fiat currency in comparison to bitcoin and cryptos. CCN reported in 2017 that Apple co-founder Steve Wozniak asserted that bitcoin is superior to USD, which he referred to as “kind of phony.”

Bill Gates and former Goldman Sachs manager Nomi Prins have also predicted a financial market crash, though they have not publicly expressed a preference for bitcoin or cryptos. Gates in particular has been bearish on bitcoin in recent interviews.

In April, when asked if the U.S. will have another financial crisis like that of 2008, Gates responded in the affirmative, describing it as a “certainty” despite being difficult to time.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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CNBC’s ‘Crypto Trader’ Bearish on Bitcoin, Very Bullish on Cardano and NEO

On Thursdsay (28 June 2018), Ran Neu-Ner, the founder of Onchain Capital, the host of CNBC Africa’s “Crypto Trader”, and one of the most influential people in the blockchain space, explained on CNBC’s “Fast Money” (hosted by Melissa Lee) why he believes Bitcoin (BTC) will go even lower within the next couple of weeks and why he remains bullish on the Cardano (ADA) and NEO (NEO) projects.



Neu-Ner, who had predicted on Fast Money on June 11th (when Bitcoin was around $6,860) Bitcoin’s drop to $5,900, was appearing on the show once again, this time with Bitcoin sitting at $5,915. He was asked what was next for Bitcoin. This was his reply:

Look, unfortunately, the same model that told us we are going to $5,900 is telling us there’s more blood to come. It’s calling a 62% chance of a bear market and a bear market means we are going to test $5,350 as the next point… There’s about a 16% chance of a bull market, but to confirm the bull market, we then need to test $7,400 with high volume. So, right now, my money is on the market continuing to go down and going down to $5,350… and time horizon there is the next two weeks.

Lee then asked Neu-Ner how he thinks Bitcoin’s mining cost comes into play. He answered:

It’s a huge factor, but what’s going to happen is when the miners find it’s not viable for them to mine, what they are going to do is switch off their machines, and there’s going to be fewer machines in the ecosystem, and the machines that are left are going to continue to mine. So, we are at those levels. We received some notifications from some of the miners that they have already switched off their machines.

Hedge fund manager Brian Kelly then said to Neu-Ner that he didn’t believe that going below the production cost would have any impact on price since we were still going to get 12.5 BTC every 10 minutes, i.e. that the supply of Bitcoin would remain the same whether we had 100 miners or 2 miners. Neu-Ner said that the main impact would be that the miners who could not afford to continue mining would switch off their machines, which would mean that the “mining bounty” would be shared between fewer miners, thereby making mining viable again for those remaining miners. He also said that this would naturally lead to much less investment in new mining infrastructure.

Another hedge fund manager, Tim Seymour, then asked what was the best play at the moment. Neu-Ner said that it all depended on your time horizon: if you were a strong believer in blockchain technology and an investor with a long term outlook, now was a “great time” to be buying Bitcoin, but if you were a short-term trader, then based on his prediction of $5,350 within the next two weeks, you could take a short position.

Finally, Neu-Ner was asked what were the coins he was most bullish on at the moment. He said that he felt that infrastructure plays (i.e. platforms on which you could build the next generation of DApps) seemed to be “really undervalued”, and his favorite two projects in this area were NEO (what he called the “Chinese Ethereum”) and Cardano.

According to CryptoCompare, at press time, NEO is trading at $27.10 and at $0.1150.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Litecoin Founder Charlie Lee Bullish on New Litecoin Futures

Litecoin founder Charlie Lee is excited about the potential impact of Litecoin’s upcoming futures launch.


“Litecoin futures will open up LTC trading to more institutional investors,” says Lee. “This will add to the liquidity of Litecoin and make it easier for people to get in and out of Litecoin.”

London-based Crypto Facilities, a trading and index platform, will launch the first regulated Litecoin-Dollar futures on June 22, enabling market participants to go long or short Litecoin. Crypto Facilities will add the new derivative product to its growing list of crypto derivatives which currently includes Ethereum, Ripple and Bitcoin.

The firm provides CME Group, the world’s largest derivatives exchange, with the CME CF Bitcoin Reference Rate to power its Bitcoin futures, and the CME CF Ether-Dollar Reference Rate and Real Time Index.

According to the announcement, Crypto Facilities is responding to client demand and paving the way for big money. “As digital assets continue to mature, we expect to see a greater number of institutional investors entering the marketplace,” said CEO Timo Schlaefer.

The latest addition of Litecoin to the crypto derivatives market comes just two weeks after the Wall Street Journal reported that regulators are investigating how the first Bitcoin futures products from CME Group in December 2017 may have impacted the market, causing a surge in the price of Bitcoin to nearly $20,000. Bitcoin is currently trading around $6,751.

The Commodity Futures Trading Commission (CFTC) subpoenaed four major exchanges – Coinbase, itBit, Bitstamp and Kraken – in order to examine trading data at the time of the futures launch and to evaluate the likelihood of Bitcoin manipulation. The agency has taken a cautious yet open approach to virtual currencies, issuing an advisory notice regarding pump and dump schemes, and noting that the latest advancements in the fintech sector “have the potential for significant or even transformational impact on CFTC-regulated markets and the agency itself.”

CFTC Chairman Christopher Giancarlo Chairman has been outspoken about the agency’s need to understand the appeal of cryptocurrencies and new technology. “There is something going on here that is generational. Just as the baby boomer generation lost faith in the leaders that came before them and tried to seek a cultural change in those days through sex, drugs and rock and roll, I think there is a generation that also has lost faith in us that led them through the financial crisis and they see technology as a way of disintermediating institutions for which they don’t have a great deal of respect,” he said. “We are struggling to find out how we apply an old law to really new and different applications.”


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Investors Turn Bullish as Cryptocurrency Market adds $12 Billion 24 Hours

Over the past 24 hours, the cryptocurrency market added $12 billion, as major cryptocurrencies including Bitcoin, Ethereum, Ripple, and Bitcoin Cash experienced a short-term corrective rally.


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Breathing Room, But Not Entirely Optimistic

The Bitcoin price rebounded from $6,300 to $6,700, breaking a descending trend-line since May 3, when BTC achieved $10,000. While it is too early to conclude that BTC has entered into a mid-term rally given that it is still likely for BTC to fall below the $6,000 mark in the short-term, the cryptocurrency market has gained a breathing room from the recent major correction that began in early May.

On yesterday’s report, CCN noted that if BTC falls below the $6,300 mark, it could initiate another downward trend, potentially to the higher end of the $5,000 region. CCN also emphasized that if BTC rebounds to $6,600 in a period of 24 hours, there exists a possibility that BTC stops a potential move to the $5,000 region.

So far, BTC has been able to remain relatively stable in the mid-$6,000 zone, with stable volume and moving averages demonstrating some momentum for the dominant cryptocurrency. But, if BTC falls back down to the $6,400 region in the upcoming days, it is likely that BTC will continue its downward trajectory.

Investors have become more optimistic and bullish on the market, due to the abrupt surge in the volume and price of BTC within a small 2-hour period. If investors want to see BTC remain above the $7,000 mark in the short-term, it will have to reverse the bearish sentiment by restoring the volume and continuing the current upwards trend of BTC.

As of now, based on the movement of BTC in the past 24 hours, it cannot be concluded that BTC restored its bullish sentiment and is ready to move to the upside. If BTC does sustain its momentum and volume in the next two to three days and remain above the $6,800 mark, a move towards $7,000 can be a possibility.

 

Custodian Solution in the Works

This week, Coinbase, the world’s most widely utilized cryptocurrency exchange, wallet, and brokerage, revealed that it is preparing to bring third party institutional custody to the cryptocurrency market and digital assets.

Kyle Samani, a managing partner at Multicoin Capital, which partnered with Coinbase to bring its institutional products to the public market, said:

“There are a lot of investors where custodianship was the final barrier. Over the next year, the market will come to recognize that custodianship is a solved problem. This will unlock a big wave of capital.”

Several prominent investors and hedge fund managers including Ari Paul from Blocktower previously echoed a similar sentiment and noted that the lack of custodian solutions have forced institutional investors to sit on the sidelines.

Currently, there are no institutional investors in the cryptocurrency market and the sector is mainly driven by retail or individual investors. That soon could change however, with companies like Coinbase, JPMorgan, and Goldman Sachs working on institutional-level suite of products.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Bitcoin is Bottoming and May Break Out, Experts Say

Robert Sluymer of Fundstrat Global Advisors spoke for CNBC’s Fast Money on Thursday, saying that he believes Bitcoin is bottoming out at USD 7,000 and that it could start rising again as soon as within the next few days. Bitcoin has previously indeed started rising after hitting the USD 7,000 mark, and Sluymer believes this to be the first step in price recovery.


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“Bitcoin is stuck in purgatory,” Melissa Lee of CNBC begins, while Bob Pisani of the New York Stock Exchange says that the current narrow range of around USD 600 is unusual for Bitcoin’s price fluctuations. Bitcoin futures trading volume fell since May, with Asian markets less intimidated than the US ones. The US Securities and Exchange Commission regulatory issues are also considered one of the constraints for cryptocurrency prices recently.

Growing numbers of trading desks for cryptocurrencies are also a surprising turn of events, as this may be the only area where those are rising. Guy Adami, an American trader, TV personality, and professional investor, considers this healthy, as it speaks of the marketplace maturing.

Sluymer, meanwhile, points out that the long-term trend is still technically up when considering the graph of price fluctuation since 2016. All lows were a series of high lows compared to the previous ones. In his opinion, Bitcoin is currently in the bottoming phase, and now it’s at the point where it’s challenging its downtrend, but that it needs to get through USD 7,800 to prove its trend reversal.

As previously reported, according to a popular crypto analyst, Willy Woo, the USD 8,000 support was bound to give up. He thinks that the next support sits near USD 7,000, which may perhaps break if sellers remain in control. Finally, there may possibly be a correction going into the July-September period, followed by an accumulation phase.
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Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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