If you have a tough time with the idea of putting even a dollar of your net worth into a digital cryptocurrency — Bitcoin, Litecoin, Ethereum, and the like — no sensible person would blame you.
Aside from the price fluctuations, there’s the question of who’s protecting those digital assets. Is it an institution like QuadrigaCX, an exchange for cryptocurrency run from its founder’s laptop, which reportedly lost $140 million in customer funds after the founder died in India in December? Or one like Tokyo-based Coincheck, which had $532 million in cryptocurrency stolen by hackers in January 2018?
“Every time I see one of these exchanges get hacked, or the founder take off with money in some kind of scam, it’s another reminder of how immature this industry is,” says Matthew Walsh, a former Fidelity Investments vice president who helped launch a private fund that invested in cryptocurrency there. “It’s bordering on a joke how immature the infrastructure is — and how dangerous it is.”
But for a growing group of venture capital firms and startup companies in Boston, the dangerous and mostly unregulated realm of cryptocurrency represents an opportunity. They see these digital currencies — which can store value and operate independently of government-controlled monetary systems — eventually becoming as safe for investors as a Bank of America money market fund. That, however, is going to require a lot of new technology. Which they plan to build and sell.
Walsh’s new venture capital firm, Castle Island Ventures, is among them. After he and cofounder Nic Carter left Fidelity, they raised $30 million to invest in what Walsh says is a “whole new category of infrastructure” required to make cryptocurrency safer and more reliable.
“The reason we launched the fund is we think a lot of these cryptocurrencies will be investible assets,” Walsh says — even if they don’t feel that way to most mainstream investors today.
Castle Island has already invested in six startup companies, Walsh says, and other local firms like General Catalyst, First Star Ventures, Highland Capital Partners, and Underscore VC have also been writing checks to fledgling cryptocurrency companies.
Highland and Underscore helped incubate a startup called Arwen, founded by a Boston University computer science professor and her doctoral student.
“We’re in the early days,” says Arwen CEO Sharon Goldberg. “But let’s go back to 1999 and using credit cards on the Internet. Nobody wanted to put their credit card number into a website. But you do today, because you trust the encryption. You see that little lock in your browser.”
Goldberg is taking a sabbatical from teaching to build the company, which has eight employees and earlier this month moved out of Underscore’s space into its own office.
She points out that cryptocurrency is designed to be a “decentralized” system — there’s no central bank regulating how much of it there is, just software code running on computers. Yet if you want to exchange one kind of cryptocurrency for another, or turn cryptocurrency into dollars or yen, you need to entrust that transaction to a centralized exchange. “Centralized exchanges are the way to trade this decentralized currency,” Goldberg says. “It’s strange.”
So Arwen is creating a layer of technology that would enable you to convert one currency into another securely, even if the exchange gets hacked or goes offline in the middle of a trade. Arwen’s technology is based on something called an “atomic swap,” which Goldberg explains using the metaphor of a briefcase full of cash. If two people intend to swap briefcases filled with two different kinds of currency, the risk is that you hand your briefcase to the other person and they run off. An atomic swap ensures that each person get the other person’s briefcase, even if the other person tries to split.
Late last month, Arwen launched a “sandbox” environment for demonstrating the technology, and Goldberg says the company is talking with prospective customers. “The majority of our customer calls are outside of the US,” Goldberg says. “In Japan, for instance, there are just a massive number of companies creating ways to buy cryptocurrencies.”
Why is the United States behind? “Regulation is stronger here, and other institutions are more trustworthy,” she says.
Arwen is working on “an important problem” and it could prove “a key missing piece needed to get wider adoption of crypto assets as a real investment asset class,” says Drew Volpe of Boston-based First Star Ventures.
Volpe’s firm last year put money into Everbloom, which is building its own cryptocurrency exchange that tries to solve the issues of trust and reliability “from the ground up.” Everbloom, he explains, is a decentralized exchange that never has to take ownership of the asset itself — similar to Arwen’s approach, the trades happen “trader to trader” using the same atomic swap idea.
Two things could happen to make holding and trading cryptocurrencies more trustworthy, observes Boris Revsin, managing director of Republic Labs, a firm that has made recent investments in the cryptocurrency sector.
One is that trusted financial services brands like Fidelity or Charles Schwab will launch cryptocurrency-related products and services and “offer recourse if something terrible happens” to your money, he says.
But the other is that non-brand name exchanges that today are not trustworthy could start to incorporate technology from Arwen or other companies like it, and begin to build trust with investors.
Either of those scenarios, Revsin says, could encourage more asset managers and investors to move some of their assets into cryptocurrency.
In case you haven’t been tracking it closely, the price of Bitcoin is down almost 60 percent from February 2018. But over two years, the price has risen 240 percent, and more than 800 percent over three years. It’s a risky place to keep your wealth today — but investors and entrepreneurs are betting that just as credit card transactions on the Internet became more trustworthy, that will change.
In what is welcome news for many in the cryptocurrency, and especially the Litecoin community, Charlie Lee today announced that Litecoin will be made more fungible, and that confidential transaction features will be implemented in a future release of the full node. Although Lee hasn’t put forward a specific time-frame for the release, he did suggest that he expected it to be implemented sometime in 2019.
Charlie Lee has long been interested in fungibility and incorporating Gregory Maxwell’s Confidential Transactions features to Litecoin. Confidential Transactions, in his opinion, offer a comprehensive solution to Litecoin’s fungibility problem and will finally allow it to be recognized as sound money. Now it would seem, however, that Lee has moved on from SegWit and is moving ahead to soft fork this in.
With Confidential Transactions, users will no longer be able to find out how many coins the other party owns, a useful tool for individual privacy and the security of financial transactions. This feature, like Zcash, will be optional only initially and not mandatory like Monero as although the latter offers more privacy and fungibility, it is difficult to achieve via consensus.
Charlie Lee also confirmed that Taproot, a feature that offers smart contract flexibility and more privacy options will also be part of such a release when ready. Taproot uses the Schnorr signature and combines it with the Merkle tree to offer more privacy solutions to the ever-increasing network and was first offered to be implemented on the Bitcoin network.
The move to add CT and make Litecoin more fungible does have its detractors, however. For instance, many on Reddit have pointed out that block size will be thrice the present size after CT is implemented (Charlie Lee has suggested that it isn’t a present concern though). Some have also suggested that making the CT and privacy features an opt-in would defeat the entire purpose of the development as often, users don’t even use them because of the added formality to a transaction.
Fungibility, or the ability of a good to hold equal value when interchanged with individual units of the same good has long been an issue for cryptocurrencies such as Litecoin and Bitcoin. Bitcoin, in fact, has long suggested that it is fungible. However, the fact that the Bitcoin blockchain’s pseudo-anonymity allows anyone to differentiate between clean and tainted coins, making the former more valuable than the latter, adversely affects the coin’s fungibility.
Jeff Schumacher, founder of BCG Digital Ventures, told CNBC during a panel discussion in Davos, Switzerland that Bitcoin will go to zero. In another interview with Fox Business, Fundstrat Global Managing Partner Thomas Lee said that Bitcoin can still go to $25,000, which he calls its fair value.
Analysts at JPMorgan Chase have predicted that Bitcoin is likely to plunge to $2,400 and eventually further to $1,260. Such differing opinions can confuse new investors who are looking to enter the crypto markets.
We believe that traders should focus on the fundamental developments in the crypto space, as well as on the price action on the charts. Cryptocurrencies as an asset class are here to stay.
Numerous blockchain projects are securing funding from traditional investors every month, which confirms that those investors are confident in the long-term promise of crypto. Crypto companies are introducing new products to attract institutional investors.
Moreover, efforts are in progress to integrate cryptocurrencies into the mainstream economy. It is only a matter of time before the bear market ends and a new bull phase begins.
However, this time, we don’t expect a vertical rise as seen in 2017. It will likely be a more gradual movement higher. A few of the top cryptocurrencies are showing signs of bottoming out. Let’s see if any of the top performers of this week qualify as a buy.
Tron (TRX) was the best performing cryptocurrency among the largest coins by market cap over the past week. In its weekly report, Tron said that it has over “150 DApps and more than 300 smart contracts.”
At the recent niTron Summit, Tron founder and CEO Justin Sun said that he expects the number of decentralized applications (DApps) on the network to surge to 2,000 by the year-end.
The TRX/USD pair is showing strength as the bulls are attempting to sustain above the overhead resistance at $0.02815521. As the cryptocurrency has been stuck in this range since mid-August, we believe that a breakout will result in a new uptrend.
The immediate target objective is $0.4, but we expect this to be crossed and the rally to extend to $0.05218328. Therefore, we suggest long positions on a close (UTC time frame) above $0.02815521, with a stop loss just below $0.021.
Conversely, if the cryptocurrency fails to sustain the breakout and drops below $0.02815521 once again, it will remain range bound between $0.0183 and $0.02815521. The sentiment will weaken if the bears push the price below the support of $0.0183.
Litecoin (LTC) has come up with a new tagline “Take control of your money and pay with Litecoin” and a new logo. The logo was first showcased during a UFC event sponsored by the company and was widely appreciated. Will the new vision help change the fortunes for the struggling cryptocurrency? Let’s find out.
The LTC/USD pair is attempting to put a bottom in place. After the initial pullback from the low of $23.090, the bulls have held the support at $29.349 for the past five weeks. This increases the probability of this level being a higher low. We will get a confirmation if the price breaks out of the downtrend line and the previous swing high of $40.784.
Long-term investors can expect the cryptocurrency to start a new uptrend if the price sustains above $40.784. There is a minor resistance at $47.246, above which the move can extend to $65.561.
Our bullish view will be invalidated if the bears defend the overhead resistance of the downtrend line, or the $40.784 mark. In such a case, the price will remain range bound between $29.349 and $40.784 for a few more weeks, before breaking out or breaking down from it.
Binance Coin (BNB) has made giant strides in the past few weeks and is now ranking 12th largest coin by market capitalization. Binance has become the latest exchange to offer a crypto-to-crypto over-the-counter (OTC) trading desk to benefit from the surge in OTC trading.
The company has rebranded its Trust Wallet as a multi cryptocurrency wallet, adding support to a larger number of blockchains and has improved its various features. Binance Charity has announced a Lunch for Children program that will help provide lunch to disadvantaged children in developing countries in Africa and elsewhere. Can BNB’s recovery continue or will it falter? Let’s see.
The BNB/USD pair has reached the resistance line of the descending channel. The 20-week EMA is also placed just above the channel. Therefore, we anticipate a strong resistance in the zone of $7.17–$7.7.
A breakout and close (UTC time frame) above this zone is likely to signal a trend reversal. The upside target is $12 and if that is crossed, the move can extend to $15. We retain the buy proposed in the previous weekly analysis.
If the position gets filled, we suggest traders book partial profits at resistance levels and raise the stops on the remaining amount. After all, the sentiment of the broader crypto market is still negative, so it is better to pocket small profits while one can, instead of waiting for a home run.
Our bullish assumption will be invalidated if the price reverses direction from the current levels. The downtrend will resume if the bears sink the coin below $4.1723848.
Dash recently released version 0.13 of its build, and 47 percent of masternodes have already transitioned to it. The cryptocurrency is already quite popular in Venezuela with over 2,600 merchants accepting it.
We expect the latest political crisis in Venezuela to attract more people to Dash, and this will highlight the importance of cryptocurrencies during times of unrest and crisis. Anypay and eGifter have partnered with coin, allowing customers to turn their DASH into eGift cards without converting to fiat. Can these fundamental factors propel the price? Let’s find out.
The long-term trend in the DASH/USD pair is still down. The bulls are attempting to form a higher low around $67. However, both moving averages are trending down, and the RSI is also close to the oversold levels. This shows that the sellers currently have the upper hand. If the bears sink the cryptocurrency below $56.214, the downtrend will resume.
The pair will show signs of strength if it breaks out of the overhead resistance zone of $103–$123. If that happens, a rally to $175 and above it to $224 will be probable. Another possibility is that the bears defend the immediate resistance at $103.261, resulting in a consolidation.
Monero (XMR) managed to end the week with minor gains even though it was in the news for the wrong reasons. A study published by academics from Spain and the UK has highlighted that about 4.3 percent of Monero’s total supply was mined illegally.
The crypto exchange Gemini chose to list Dash instead of Monero because its founders, the Winklevoss Twins believe that the regulators would be more favorable to Dash. When the price doesn’t fall even amidst adverse news, it is usually a positive sign. So, is it a good time to buy? Let’s find out.
The XMR/USD pair has been consolidating in a tight range of $38.5–$60.147 for the past eight weeks. A breakdown of the range will resume the downtrend and can push it towards the next support at $28.
On the other hand, a break out of the range can propel the cryptocurrency to the overhead resistance at $81. The downsloping 20-week EMA is located just below this level. Hence, we anticipate a strong resistance at $75–$81.
As the price is currently trading close to the yearly low, we are not suggesting any trades. We might suggest long positions if the pair sustains above $81.
Crypto traders and investors are always seeking different ways to build adaptation in the cryptocurrency community. As crypto lovers agree that the technology is still in its early infancy and will need to evolve well enough to be considered more than just a bubble, which will further ease the process of regulatory, adaptation comes to mind as the only factor that would make this happen.
The ideal world imagined by crypto fans is one where cryptocurrency becomes a universal currency and to achieve that, massive adaptation has to become a milestone that the cryptocurrency space achieves as often as possible. While cryptocurrency can function in any industry, these four have shown themselves to be not just some of the most effective 2018 but has also created a pathway for continuation in 2019.
The entertainment industry has been one of the most flexible industries that shines the spotlight on cryptocurrencies. Most users declared that their knowledge of crypto was birthed from movies and comedic pieces that portrayed the unsteady movement of the cryptocurrency market. From as far back as 2014, the entertainment industry has been pioneering Bitcoin and crypto in general.
Visual art has also been a strong tool that deploys the swift and easy to use the technology of crypto to purchase iconic artworks. Earlier this year, a visual art painting of late Andy Warhol valued at $5.6 million was auctioned for sale via Bitcoin.
The art of purchasing luxurious belongings through cryptocurrencies has been in the limelight since 2013 and this tradition is not slowing down anytime soon. Arguably one of the most promising ways to build adaptation in the crypto space revolves around this. It was earlier revealed that the Lamborghini has seen an upsurge in crypto payments, this comes as no surprise seeing that the Lamborghini is an emblem of wealth in the crypto space. Swiss watch brand also made a big move this year after releasing its $25,000 luxurious “P2P” wrist watch which was exclusive to BTC users. This trend will definitely boost user adaptability come 2019. Even CZ of Binance went on to commend Hublot’s marketing strategy, expressing his interest in having a watch for the Binance BnB token sometime later.
Seeing that 2018 began with leading tech companies boycotting cryptocurrency ads and ended with some of these very same companies going as far as developing their own coin, it is no doubt that tech companies are coming to terms with the usefulness of cryptocurrencies. In 2019, this growth is only certain to increase as more and more tech-related firms have continued to eye crypto. One notable trend of 2018 was the act of purchasing tech products via cryptocurrencies. HTC also fully adopted this pattern when it released its 2018 mobile phone flagship dubbed “Exodus 1”. Not only was it accompanied by the Zion digital wallet, but it was also exclusive to BTC and Ether users only.
It is still perplexing to know that even if sports remains one of the most lucrative industries for digital technology to thrive, cryptocurrency and sport is still largely limited to gambling, which is not the best route to gaining more users. However, this industry is likely to boost the crypto scene in 2019 seeing that exchanges and tokens are getting more involved in bridging the gap between crypto and sport. Recently, Tron’s Justin Sun had sparked rumors of merging Tron and Basketball when he revealed his guest appearance for the niTron event. Most recently, the Litecoin network is also partnering with Ultimate Fighting Championship (UFC) for the upcoming 232 matches.
Conclusion: As these industries continue to shape the path for massive adaptation in the cryptocurrency, diversification is becoming more than just a myth. And this goes on to prove that cryptocurrency is here to stay.
Coinbase Vice President Dan Romero has given reasons behind the platform’s recent announcement that it is exploring support for dozens of new cryptocurrency assets, arguably in contrast to its long-cautious approach to supporting individual crypto tokens.
Speaking recently to Linda Shin on an episode of the Unchained podcast, he delved into the factors that predicated the unusual move, coming against a background of the platform’s historically conservative nature when it comes to adding new assets.
In response to a suggestion that Coinbase may be loosening its approach to add coins that are more experimental or less proven than the big names like Bitcoin, Litecoin, Bitcoin Cash, Ether, and so on, Romero stated that Coinbase is, in fact, revising its approach based on customer feedback and current developments in the regulatory space. According to him, the recent shift in strategy is particularly driven by customers who have overwhelmingly requested the addition of new cryptocurrencies to the platform.
Coinbase Adopts Customer-Driven Crypto Strategy
Explaining the reasoning behind Coinbase’s new strategic direction, Romero said:
“I think our plan now is to list as many cryptocurrencies possible within a compliant, legal constraints and also having information and quality signals easily available for customers so that they can kind of determine if a cryptocurrency makes sense for them.”
In reference to cryptocurrency’s ongoing pivot into a utility phase, Romero explained that in the event that customers decide to change their crypto holdings on Coinbase and it cannot offer them that service due to non-support for their cryptocurrency, they will only end up exchanging the assets on less secure platforms, which serves neither them nor Coinbase.
This he said, raises the need for Coinbase to recognise that that “the ability to switch cryptocurrencies is the core piece of functionality in the ecosystem.” Thus, he revealed, Coinbase now intends to list as many assets as they can legally do in as many jurisdictions as well.
Despite the SEC’s position on registering securities which creates a risk of listing a token that later turns out to be an unregistered security, Romero expressed confidence in the company’s legal and security procedures working in tandem with in-house checks and balances to ensure that this does not take place.
According to him, the company’s Digital Asset Framework has enabled Coinbase to develop an efficient process to ensure the quality bar and re-affirm the brand’s identity of “trusted and easy to use.” Among the fail-safes deployed in registering a new asset is the use of vetos by every team before an asset is added to the platform.
From PayPal’s new crypto initiative to the ongoing burst of Bitcoin whale activity, here’s a look at some of the stories breaking in the world of crypto.
PayPal and Crypto
PayPal has reportedly launched a new internal crypto platform designed to teach its employees about token economics.
As reported by Cheddar, the blockchain-based platform allows employees to earn tokens by engaging in company initiatives.
“Employees can access their tokens through the company’s internal website and continue earning more by participating in innovation-related programs and contributing ideas. The tokens, which hold no value outside of PayPal’s walls, are also tradable among employees with each transaction being posted to, effectively, a ‘public ledger.’
…PayPal’s tokens are redeemable for more than 100 ‘experiences’ offered on the platform, including poker tournaments with a couple of their vice presidents, a trail run and coffee with CFO John Rainey, and morning martial arts with CEO Dan Schulman. Gabrielle Scheibe Rabinovitch, the company’s head of investor relations, has offered to let employees borrow her dog for a day, Todasco said.”
A burst of Bitcoin whale activity continues. Some of the oldest and richest BTC addresses in existence have transferred a total of more than 424,000 BTC – worth more than $1.4 billion – to new wallet addresses.
Here’s a look at 11 noteworthy transactions, as tracked by Whale Watch.
Leading cryptocurrency exchange Binance is launching six new trading pairs on Friday.
The exchange is pairing Bitcoin, XRP, Ethereum, EOS, Stellar, Binance Coin with the TrueUSD, a blockchain-based stablecoin pegged to the US dollar.
VeChain says it’s working with a historic tea manufacturer in Japan to give customers a new way to verify the authenticity of their purchase.
“By utilizing an advanced traceability and IoT solution, Fuji MARUMO Tea’a customers are able to verify the origin of their tea products by using a smartphone to read the NFC chips embedded on the package.”
The tea company is starting with a trial of VeChain’s technology, implemented into 100 limited edition packages of its products. The trial is a proof of concept for a “larger partnership that will be implemented upon completion.”
Crypto hodlers can now buy the new HTC Exodus smartphone with Litecoin. The phone was previously available only for Bitcoin and Ethereum.
Charlie Lee, creator of Litecoin predicted back in December that Litecoin could crash to $20. Now in November, we are pretty close to seeing that price in reality.
It is no secret that Charlie sold all of his Litecoin holdings at the peak price, he received a lot of backlash from the community at the time and to this day people still criticize him. But it is less known that he predicted a multi-year bear market with Litecoin’s price dropping to as low as $20.
“Ok, sorry to spoil the party, but I need to reign in the excitement a bit… Buying LTC is extremely risky. I expect us to have a multi-year bear market like the one we just had where LTC dropped 90% in value ($48 to $4). So if you can’t handle LTC dropping to $20, don’t buy!”
Unfortunately, a lot of people ignored Charlee’s advice and were in the Euphoric stage at the time. But his prediction is pretty much on track to be true.
Even though the price more than doubled in a week after his prediction, it has dropped over 93% from the peak price of $366 to a low of $27 rhyming the previous bear market.
Litecoin’s Price After Charlie’s Prediction:
Image Source: Coinmarketcap
It turns out that Charlie took the right decision of selling the top at the time. He has justified his selling multiple times saying that it has nothing to with his belief in Litecoin but has to do with having a conflict of interest.
“it is conflict of interest for me to hold LTC and tweet about it because I have so much influence. I have always refrained from buying/selling LTC before or after my major tweets, but this is something only I know. And there will always be a doubt on whether any of my actions were to further my own personal wealth above the success of Litecoin and crypto-currency in general,”
Good news for gamers and blockchain enthusiasts. Earlier this week, CryptoMonsters was successfully launched.
The peculiar app offers users a set of collectible figures with concepts and features similar to other famous games like crypto kitties, but with the difference that instead of running on the Ethereum network, the CryptoMonsters will “live” on the Litecoin Blockchain.
The game is about evolving a monster through various actions that will be recorded in the blockchain from its birth to its death. The Game’s official website explains its concept in a simple but exciting way:
“This is a new type of game based on the Litecoin blockchain technology. It represents a virtual world, inhabited by CryptoMonsters, which are constantly evolving and interacting with each other.!”
During its first stage, the game allowed early users to get a free monster, however, once the game was released, the number of monsters available ran out. Users must purchase one of the monsters available on the market, which are worth approximately $500 to $500 depending on a multitude of factors such as rarity, strength, level, etc.
Monsters have a level ranging from 1 to 200. Currently, there are no top-level monsters because of how young the game is, however, it won’t be long before users see highly evolved monsters once the game becomes more mature and active.
Players have the option to split their monster (getting 2 lower level monsters) or to mature and evolve their creature to level it up.
Naturally, as in many similar games, evolution involves complex and risky tasks such as taking on other monsters in combat. Should a monster win the fight, it will increase its level, of course, it will also lose it if it is not victorious in battle.
Each monster acquires part of the stats of the loser. If a monster falls below level 0.2, it dies, or as the game says, “ascends to crypto monster paradise” to meet its creator: CryptoGod.
The game has been a complete success. According to CryptoMonsters’ Official Twitter, the platform registers a number of 2.3 new users per second, which is a sample of its potential to become Litecoin’s Cryptokitties.
Transaction fees are a very common topic in the cryptocurrency industry. Digital transactions are designed to be cheaper compared to bank wires. In the case of Litecoin, a new $62 million transaction was settled for just $0.50.
Low Litecoin Transaction Fees
Over the past few years, there has been plenty of Bitcoin-related scrutiny. Most of the concerns have to do with the network’s transaction fees. Today, the average fee for sending BTC is just under $0.37 – a far cry from late December 2017’s $25 – $55 average fees.
In the case of Litecoin, fees have almost always remained low – even for very large transactions. Recently, one user transferred $62 million worth of Litecoin for just $0.50 in fees. With a bank wire, fees can be as high as $45, if not more, because of the vast amount of money being moved around. This makes cryptocurrencies a cheap and acceptable option for global money transfers in this digital age.
The transaction itself is part of moving the funds to a multisignature account. Wallet security is critical in the cryptocurrency industry. This “upgrade’ confirms the funds’ owner wants to keep the money safe at all times. With such low transaction fees, there is no reason not to explore additionally secure options. Despite having numerous transaction inputs, the total cost did not exceed $0.45. A very strong sign of how efficient Litecoin can be when moving vast amounts of money over the network.
Cheaper Transactions are Possible
This news comes at an interesting time as several weeks ago a Bitcoin transaction worth $194m was broadcasted for $0.10. This makes Bitcoin more efficient than Litecoin in this regard. Every transaction on this level only represents a snapshot of the actual transaction fees. When timed correctly, money can be moved at nearly no extra cost.
The war for cheaper transaction fees is still ongoing. Overall costs have declined for all currencies bar Bitcoin Cash in recent weeks. That is a bit surprising, as Bitcoin Cash is often touted as the “better” Bitcoin. Its larger block sizes and faster transaction times have their own merit. However, fees have risen to $0.0285 in recent days. That is cheaper than Bitcoin but more expensive than Ethereum, Litecoin, and XRP.
Bitcoin developers still have their work cut out for them. The average transaction fee for Bitcoin still sits at $0.36. That is far too high compared to the other top cryptocurrencies. This is a steep decline from transaction fees of $1.30 in September 2018, though As the Lightning Network becomes more commonplace, these fees are expected to drop even further. Ethereum is also slated to undergo a scaling fork in 2019.
A fresh correction wave was initiated from well above the USD 6,600 level in bitcoin price . BTC/USD traded below the USD 6,575 level and tested the USD 6,550 support (the previous resistance). The price is currently consolidating and it seems like there could be a renewed upside above USD 6,580 in the near term.
On the flip side, if there is an extended downside correction, the price may perhaps test the next major support at USD 6,500. The overall price action is positive as long as bitcoin is above USD 6,550 and USD 6,500.
Ethereum price also corrected lower recently and traded below the USD 220 level. ETH/USD tested the USD 215 level and it is currently consolidating. If it stays above USD 215, there might be an upward move above the USD 220 level.
If not, the price could slide further towards the USD 208 support, which was a significant barrier for buyers previously and now it is likely to hold losses.
Bitcoin cash and ripple price
Bitcoin cash price started a sharp downside correction below the USD 600 level. BCH/USD is down more than 4% and it is currently heading towards the USD 570 support. If there are further losses, the price may well test the USD 550 support. On the upside, an initial resistance is near USD 600, above which the price may retest USD 630.
Ripple price is slightly under pressure as it failed to stay above the USD 0.530 and USD 0.525 support levels. The next major support awaits near USD 0.500 where XRP/USD will most likely find a strong buying interest. On the upside, the previous supports at USD 0.525 and USD 0.530 might act as resistances.
Other altcoins market today
Despite the recent correction in bitcoin, a few small cap altcoins traded higher between 5%-8%, including POLY, WAX, BAT and NPXS. Out of these, POLY is up around 8% and WAX gained roughly 7%.
To sum up, it seems like bitcoin is correcting recent gains, but there are many supports on the downside between USD 6,560 and USD 6,500. If there is a downside break below USD 6,500, there are chances of a sharp decline in BTC/USD. Similarly, ethereum must stay above the USD 208 and USD 202 support levels. If not, there is a risk of a fresh bearish wave below USD 200.