Ethereum has been closely tracking Bitcoin’s price action throughout the past several days and weeks, which has led ETH to once again enter a bout of sideways trading within the mid-$130 region. Despite being able to post a strong rebound from its recent lows, it is important to note that analysts are widely anticipating ETH to see an intense downwards movement in the near-term. This also comes in tandem with some slight growth in the cryptocurrency’s open interest on BitMEX, which may be a sign that the crypto’s next move will be massive. Ethereum Faces Weak Technical Situation as Analysts Eye Near-Term Downside At the time of writing, Ethereum is trading up just under 1% at its current price of $133, which marks a slight decline from daily highs of over $135 but a notable rebound from lows of $125. These lows were set yesterday in tandem with Bitcoin’s decline to $5,800, with bull’s ardent defense of this level creating an upwards tailwind that has allowed virtually all major altcoins to rally. In the near-term, it does appear that the mid-$130 region has become resistance for ETH, and whether or not it moves past this level may be dependent on how Bitcoin trends. One trader said in a recent tweet that Ethereum is flashing signs of weakness against its BTC trading pair, noting that it is currently hovering directly between key support and key resistance. “Ethereum: The same approach still on ETH / BTC. I’m interested at 0.0172-0.0175 / 0.019-0.01925 areas for support or when we flip the 0.022 area. Right now it’s just hanging in between. Against USDT also not showing strength.” Image Courtesy of Crypto Michaël ETH Futures Sees Declining Volume, But Open Interest Begins Climbing Two interesting trends that may suggest the next movement will be large are the crypto’s declining futures volume and climbing open interest on BitMEX. According to data from Skew, Ethereum’s futures volume across all major cryptocurrency exchanges has declined significantly in recent times, hitting a monthly low on March 29th before climbing slightly yesterday. In the past, low futures volume hasn’t lasted for too long, with it climbing as the crypto’s volatility picks up. This could mean that a big movement is imminent. Further supporting this notion is the fact that open interest on BitMEX is showing tempered signs of growth, which is also a historical indicator of imminent volatility. Featured image from Shutterstock.
XRP, the cryptocurrency asset often referred to as Ripple, has been among the worst-performing crypto assets and altcoins of the last two years. However, according to one crypto analyst who has spotted what they believe is a classical bottom signature on XRP price charts, expects the asset’s woes to soon change and potentially triple in value before the end of the year. XRP’s Recent Panic-Fueled Rollercoaster Ride XRP has gained a negative reputation across the cryptocurrency community. The number three crypto asset by market cap is often accused of being less decentralized that competition cryptocurrencies like Bitcoin and Ethereum, is demonized for its association and relationships with bankers, and has gained notoriety due to Ripple executives selling XRP holdings in order to fund operations. Related Reading | XRP Triggers Major Buy Signal As Crypto Asset Reaches Pivot Point The constant selling of assets each time XRP price rose at all, was in part responsible for the altcoin’s over two years of a bear market. After a breakout of downtrend resistance, all signs pointed to XRP being ready for liftoff, and the altcoin asset doubled in value during the first two months of the year. However, what momentum the crypto asset had, was destroyed in a catastrophic coronavirus-fueled panic selloff that crushed cryptocurrencies like Bitcoin, Ethereum, and XRP, alongside the stock market, gold, and many other traditional investments. The sell-off caused XRP price to plummet back down, setting a lower bear market low and taking the price of the asset to just over ten cents. Ripple Price to Triple By Q4 2020, If Classic Bottom Holds But as Ripple fell towards ten cents, it swept the lows of the previous reaccumulation cycle, taking place in early 2017, just before the crypto hype train took off and XRP rose to over $3 per token. One crypto analyst claims that this type of behavior is the signature of a “classic bottom” formation, suggesting that the downside for Ripple in the future is limited. $XRP Monthly is about to close. Looking at the SPF/2017 pre-final pump accumulation lows sweep and this capitulation volume, this looks like a classic bottom signature, or what one would expect it to look like. I am fairly sure Ripple is retesting 0.58 cents in 2020 (Q4) pic.twitter.com/ukY3LJfgut — iamBTC.D (@iam516tv) March 31, 2020 The analyst also says that based on the support holding, XRP could skyrocket to $0.58 cents per token, essentially causing Ripple to triple in value by the fourth quarter of 2020. An alternative, contrarian view would consider that price action forming a massive, multi-year descending triangle, which if breaks down would take Ripple back to under a penny per XRP token – prices that the asset traded at long before cryptocurrencies became a household name. Related Reading | XRP Fails To Reclaim Critical Long Term Support, Danger May Lie Ahead Descending triangles have repeatedly broken down on the price charts of cryptocurrencies in the past, suggesting that more downside for XRP is also a possibility. However, if Ripple does indeed break out from the current lows, the analyst’s target of $0.58 cents is a reasonable near-term target for what will likely be a very explosive recovery once Ripple breaks free from downtrend resistance. Featured image from Shutterstock
The crypto market is recovering from the price drop earlier this month, yet the daily number of Bitcoin transactions continues to decline. This data anomaly reflects changes underway in how the flagship cryptocurrency is being used. It may reflect a greater trend moving forward. MORE HODLING, LESS TRADING Daily transaction activity began to grow steadily at the beginning of this year, which coincided with Bitcoin’s increase in price. Trading and mining both picked up, which added to this number. The transaction count took an abrupt turn early this month, however, as the price collapsed and the global economy fell into a tailspin. bitcoin activity Earlier this year the total daily transactions eclipsed 350K several times. Now it is around 275k per day and falling. A number of factors have contributed to this decline. Lower prices have led to less mining activity, as evidenced by a notable drop in network hash power over the past few days. Most notably, Bitcoin owners have pulled thousands of coins off of exchanges, causing trade activity to decrease. The key takeaway from these moves is that Bitcoin investors are now more interested in keeping their funds safe in personal wallets than on exchanges. Cold storage means less network activity, which can be seen in the data. Backing up this notion is the fact that the number of Bitcoin wallets continues to grow steadily as does address diversity. There are presently more than one hundred thousand more active addresses than there were at the start of the month. FEWER TRANSACTIONS REVEALS BITCOIN IS A SAFE HAVEN Ironically, the decline in network activity demonstrates that Bitcoin is healthy and secure. Investors moving their coins into self-controlled wallets indicates that the cryptocurrency is being treated as a safe haven during this time of global economic stress. Also, this action helps boost Bitcoin’s value by reducing the available supply used for trading. In fact, Bitcoin advocates should worry more about too many daily transactions than too few. Presently the network can only handle about 600k transactions per day without fees and congestion becoming a problem. Until the Lightning Network, or some other scaling solution, has become more user friendly the problem of too much activity is very real. Bitcoin transaction numbers will likely pick back up as the market recovers. Nevertheless, for now this data indicates that the cryptocurrency is functioning exactly as designed. Do you think Bitcoin activity dropping is a bearish or bullish signal? Add your thoughts below! Images via Shutterstock, Chart by Blockchain.com
Originally from Bitcoinist.com https://ift.tt/2UNSyKM
Yesterday’s Bitcoin rally has led the cryptocurrency into the mid-$6,000 region, with the mounting resistance at $6,500 proving to be too much for BTC’s bulls to surmount. This has led to yet another bout of consolidation around this level. One analyst is noting that Bitcoin’s bulls are currently being “put to the test” after losing a key technical level that was previously bolstering its price action. If bulls want to further extend their newfound momentum and propel the crypto higher, it is imperative that buyers are able to defend the crypto from dropping below $6,350. Bitcoin Loses Key Technical Level After Entering Bout of Consolidation At the time of writing, Bitcoin is trading up just under 3% at its current price of $6,490, which is around where it has been trading at over the past day. BTC’s rally up to these highs came about following its recent decline to lows of $5,800, which is the point at which bulls stepped up and catalyzed some decent momentum. The fact that this short-term uptrend has stalled at its first key resistance level seems to elucidate some underlying weakness, suggesting that the crypto could be poised to face a rejection at this level. Big Cheds – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that BTC recently lost its EMA 8, with this ongoing bout of sideways trading marking a test for bulls. “Bitcoin: 1 hour – Bulls being put to the test after losing EMA 8, lower BB dip and rally,” he explained while pointing to the below chart. $BTC #Bitcoin 1 hour – Bulls being put to the test after losing EMA 8, lower BB dip and rally pic.twitter.com/OytdTaK1hz — Big Cheds (@BigCheds) March 31, 2020 BTC’s Key Support Sits at $6,350, and a Break Below This Level Could Be Dire Michaël van de Poppe, another popular cryptocurrency analyst, explained in a recent tweet that Bitcoin’s current trading range exists between $6,350 and roughly $6,500, with this lower boundary being BTC’s key near-term support. “Bitcoin: Mostly range-bound, but it’s interesting that this monthly/weekly level at $6,350 provides support here. Might tap the resistance around $6,500-6,600 again, but mostly range-bound and not showing direction. Breaking range -> targeting $7,100/7,300,” he noted. $BTC #BITCOIN Mostly range-bound, but it's interesting that this monthly/weekly level at $6,350 provides support here. Might tap the resistance around $6,500-6,600 again, but mostly range-bound and not showing direction. Breaking range -> targeting $7,100/7,300. pic.twitter.com/MXpx6pq2GI — Crypto Michaël (@CryptoMichNL) March 31, 2020 If Bitcoin breaks below its near-term support, it is highly likely that it will continue declining until it retests the support that has been established at $5,800, with a decline below this level potentially leading BTC to see a free fall. Featured image from Shutterstock.
A roll call for all true believers!
An Introduction to Toilet Paper
The evolution of modern day toilet paper has come a long way. Before the invention of the soft, double, even triple-ply squares human civilizations used a wide range of objects that could be sharp and even dangerous to the human anatomy. Throughout the years, humans used rocks, corn cobs and pieces of wood, while softer man-made solutions like communal sponges were used by the ancient Romans. The wealthy preferred fabrics like wool or lace that posed less of a threat to the body’s vulnerable parts.
The modern-day concept of toilet paper was conceived in China in the 6th century, and when paper became mass produced, newspapers then became widely distributed and were reused as toilet paper. Commercial toilet paper made a splash on the scene in 1857. Marketed as a medical product that prevented hemorrhoids, they were priced at a modern equivalent of $12 for 500 sheets.
Although modern industrialization has been able to successfully produce toilet paper for decades, the alarms sounded by the COVID-19 pandemic have made toilet paper a commodity of extremely high demand — so high, in fact, that it was out of stock in stores worldwide and caused societal unrest among customers. In November 2019, toilet paper consumption was at about 10 billion rolls per month worldwide, with an average of two rolls purchased per month for personal use. Due to corona, rates have increased by one roll per person on average (monthly), with quarantine and stay at home notices by the government that subsequently have forced citizens to purchase more toilet paper for home use. By late February 2020, roll usage skyrocketed to 15 billion rolls globally.
Why Tokenize Toilet Paper as a Digital Asset?
Toilet PaperToken: 3 Utilities
TPT utilizes “smut contracts” to keep track of the total number of rolls that users (hereafter referred to as wipers) have purchased, and also maintains a record of how many rolls you are guaranteed. With TPT, users can purchase toilet paper online to avoid increased exposure to ‘Rona and take advantage of the Ply Count algorithm that calculates how much toilet paper each household is entitled to receive.
The implication of this system is no more hoarding or grocery store fights for the last set of rolls. Should stores run out of stock, TPT holders will be the first customers to be notified of restocking the preferred customers to receive supplies.
Holding TPT ensures wiper integrity and the fair distribution of toilet paper worldwide, which ultimately contributes to TPT’s mission: saving humanity from regressing downwards to the first two levels of Maslow’s needs hierarchy. Our dignified roll is to maintain our position at our rarefied spot at the “turd level,” where love and belonging abounds.
In order to buy TPT, interested wipers must register and take the Ply Count Quiz, which will determine the amount of TPT they are entitled to purchase through the use of the Ply Count algorithm. The quiz questions will range from the number of members of your household to the existence of preexisting gastrointestinal issues.
Once you get your allocation of TPT, you can redeem the tokens for toilet paper. When you have used all of your tokens, our patented Ply Count algorithm will allocate the amount of tokens you are able to purchase to restock.
TPT Initial Scattering Offering
1 TPT = USD $1.64
Market crap: $85,583,000,000
Total supply: 8 billion
Scattering supply: Dynamically issued in response to changing levels of demand (out of stock)
The Toilet Paper Token will go on sale April 1st, 2020 on Shitake Exchange. All wipers must take the Ply Count quiz, which mathematically determines the correct number of TPT that wipers can purchase on a monthly basis.
Once tokens are sent to the company, they are burned to prevent companies from holding large amounts of TPT and gaining a monopoly on the TPT supply.
There will be a lock-up period for private investors for a period of five minutes. Holders of TPT token will receive their toilet paper as a delivery. If quarantine controls in your state or country allow freedom of movement, holders can also redeem their tokens for toilet rolls at participating stores.
Toilet Paper Token leverages multi-blockchains to buttress its data fidelity.
Our Know-Your-Colon (KYC) process works with our bog-standard proof-of-wipe chain, facilitating each user’s KYC check that they are able to wipe by themselves, as users that don’t fall into this category are unable to participate in the token sale. Our research has shown that the early age of entry is 3-years-old.
The KYC will also entail the installation of an intravenous IoT plug-in as a suppository to monitor the fibre content in one’s stomach, which will then feed data into the TPT smut contract to ensure that tokens are minted dynamically according to the needs of the general populace.
TPT’s proof-of-ply blockchain will ensure the immutability of the ply count of the toilet paper rolls that have been purchased with ToiletPaperTokens. The proof-of-ply blockchain is connected to the patented Ply Count algorithm, recording how many tokens have used, and thus how many rolls you have left.
Proof-of-flush keeps track of how many toilet paper rolls each TPT wiper has used in order to prevent going over the allotted quota. This will be functionally similar to how some projects burn or destroy tokens.
Meet the Team!
Mary Ploppins used to ply her trade in the paper towel industry before she discovered the possibilities of working directly in toilet paper. With a master’s degree in textile design, she utilized her creative background and long experience in paper products to come up with a unique solution to the toilet paper crisis that rocked the world during the COVID-19 pandemic.
Peter Peuop comes to TPT after toiling his trade as an account manager and support representative for several years at an ecologically-friendly composting startup. Eager to enter the crypto field, Peuop also worked in traditional finance at a custodian bank in the early 2000s. He now spends most of his days rick-rolling unsuspecting victims.
John Splashington got his start in toilet paper from a young age, pioneering the innovative idea to have the toilet roll face out, instead of in, making it easier to grab onto. He’s also known for being a real hardliner if he catches someone not replacing the toilet roll and leaving just an almost empty roll with a little bit of toilet paper hanging on that is useless for the next person who needs to go.
The total cryptocurrency market cap can oftentimes provide clues as to where Bitcoin and altcoins could be headed in the short-term. The latest price action is exhibiting a pattern that looks structurally similar to a head and shoulders, which if valid and confirmed would suggest Bitcoin and the rest of the crypto market will make another retest of lows. Cryptocurrency Market Chart Forms Head and Shoulders Reversal The coronavirus hasn’t just killed thousands, frozen humanity, and devastated the economy, it’s also sent financial markets into a tailspin, including the world of cryptocurrencies like Bitcoin, Ethereum, and the hundreds upon hundreds of altcoins that make up the market. Related Reading | Fool Me Twice: Will Bitcoin Rally on April Fools’ Day Once Again? As fears over the rapidly spreading pandemic peaked, markets suffered a catastrophic collapse. The Dow Jones Industrial Average saw the worst losses since 1987, and the total cryptocurrency market cap was set back by over $150 billion during the last month alone. The fall in cryptocurrencies wiped out more than half of the total market’s overall value and market capitalization, but the asset class has since recovered over 50 billion in losses and is ranging above the recent lows. However, if an ominous pattern on the total cryptocurrency market cap chart plays out, a retest of the lows is likely in the cards. On the total crypto market cap, a potential head and shoulders pattern can be seen forming on 4H timeframes. Chart Pattern Target Would Signal Retest of Lows Near $130 Billion Head and shoulders are typically reversal patterns found at the top of a trend. This suggests that the recent recovery is over, and the target of the pattern would take the total cryptocurrency market cap back to retest lows around $130 billion. The target of the structure would stop short of setting a new, lower low below $109 billion where the market fell to just weeks prior. Related Reading | Crypto Market Reaches Longest Stretch of Extreme Fear In Over A Year Chart patterns aren’t valid until confirmed in hindsight. However, declining volume as the pattern continues to form are signs that confirmation is probable. According to the pattern, the price of cryptocurrencies should fall leading into today’s monthly close, forming the second half of the right shoulder and taking prices back down to neckline support. If that support gives in, and the total cryptocurrency market falls below the neckline, the pattern is valid and the target comes into play. However, if bulls manage to use the right shoulder to push the price of cryptocurrencies higher, it could lead to a short squeeze that propels the total crypto market cap back to highs not seen since February or January – long before the coronavirus spilled into the market and caused a catastrophic collapse. Featured image from Shutterstock
Bitcoin is set to close its one of the most roller-coaster fiscal quarters in a negative area. But the cryptocurrency’s biggest test now lies in the 2020’s second quarter as it arrives in the middle of two very distinctive market catalysts: Halving and Coronavirus. Halving is bullish, at least according to a plethora of bitcoin maximalists and analysts that see the May 2020 event as an upside price driver for the cryptocurrency. They believe that bitcoin’s daily supply cut from 1,800 BTC to 900 BTC would appeal to investors looking to park their capital in scarce assets. The #Bitcoin halving is coming in less than 50 days. Fasten your seatbelts for the long run pic.twitter.com/9IrmRtDkKd — Crypto Rand (@crypto_rand) March 26, 2020 The sentiment is backed by bitcoin’s history of delivering outstanding bull runs after each of its halvings. It was worth $12 around the first event and about $650 around the second. And now in its third outing as an undersupplied asset, the cryptocurrency’s next price target is $55,000, says analyst PlanB using his popular Stock-to-Flow model. “The model predicts a bitcoin market value of $1trn after next halving in May 2020, which translates in a bitcoin price of $55,000,” he wrote. But There Is a Catch Bitcoin’s next supply cut comes against the backdrop of a global pandemic, the novel coronavirus COVID-19 that has infected more than 800,000 people and has killed close to 40,000 others. The virus’s human-to-human transmission factor meanwhile has led governments to impose extended lockdowns from Los Angeles to Sydney. This has left a huge dent on the global economy. The Dow Jones Industrial Average is on its way to deliver its worst first quarter in history. Gold fell to beat its own safe-haven status. And even yield on low-risk US bonds dived below 0.7 percent. Analysts are predicting more misery in Q2 as the United States battles with the prospects of millions of job losses and an overburdened health sector. The Trump government and Federal Reserve are printing trillions of dollars to safeguard the economy, now creating a new $6 trillion debt bubble atop a $23 trillion one. (9/11) If getting us into $6 trillion more debt doesn’t matter, then why are we not getting $350 trillion more in debt so that we can give a check of $1 million to every person in the country? — Thomas Massie (@RepThomasMassie) March 27, 2020 Bitcoin should rise against such prospects, as many bulls believe it as the only true reserve currency. But Coronavirus has disturbed the equation pretty badly. People and investors stuck at their homes and offices no longer need a perceived safe-haven. They want what could get them anything between food and the next cheapest stock: the US dollar liquidity. “Whatever number you have got, double it. If you are at 10 percent (cash), make it 20 percent,” Gary Dugan, the CEO of Purple Asset Management told CNBC. As the COVID-19 pandemic continues, investors having access to bitcoin could treat it like any other asset to seek cash. That is the logical outcome for many against the world’s biggest economic disaster since the Great Depression. The Bitcoin Utopia Bitcoin-ers are enthusiastic despite looming threats. They believe that a part of the excessive dollar supply would end up in the cryptocurrency market. “A more direct case for Bitcoin is the impending revival of inflation,” said Max Bronstein, an institutional investment expert at US-based crypto exchange Coinbase. “If central banks are able to keep asset prices stable, the whole world is looking at record-breaking balance sheet expansions.” 21/ All of this sums to the largest test of Bitcoin's value proposition. The lower bounds of debt based monetary systems continue to shrink each day, and the need for a decentralized alternative has never been stronger. Many of the economic principles we hold to be true… — Max Brrrronstein (@max_bronstein) March 31, 2020
After Bitcoin price fell from $10,000 to under $4,000 in one short month, the ultra bearish, panic-induced price action has finally settled into a neutral state. However, if bulls can break above this key level and hold it as support, the price action will flip bullish and likely go on to target $7,800. Neutral Price Action Ready to Flip Bullish With Break Above $6,600 Bearish Bitcoin traders have been having a field day after the leading cryptocurrency by market cap failed to produce a significant and sustainable rally after breaking above $10,000. Not only did the surge in price fail to spark FOMO amongst retail investors, some of the largest Bitcoin holders finally cashed out ahead of a potential recession, and caused a catastrophic and historic selloff. Related Reading | Fool Me Twice: Will Bitcoin Rally on April Fools’ Day Once Again? In less than one month’s time, Bitcoin price fell from over $10,000 to under $4,000. At the low, the price of the cryptocurrency bounced off $3,800 and quickly grew by over 80% to nearly $7,000 before falling back down again. Since then, the asset has been ranging, causing the price action to turn neutral until a breakout to the up or downside occurs and caused traders to take positions and ride the wave to the next trading range. A break below the previous low would be enough to cause Bitcoin price to turn back to ultra bearish, potentially hinting at lows much below as targets. However, if bulls can reclaim $6,600, it could cause spark a surge of buyers and a push of Bitcoin price to above $7,800. Neutral here Crack monthly vwap at 6630 and I'd target 7.8 though$BTC pic.twitter.com/J7ZFjsvzs0 — CryptoTrooper (@CryptoTrooper_) March 31, 2020 What’s a VWAP and Why Would Breaking It Take Bitcoin Price to $7,800? $6,600 is a particularly critical level for bulls to reclaim, as it’s the monthly VWAP – or volume-weighted average price. The volume-weighted average price is a benchmark traders use to give price action an average across the day that’s based on both price and volume together. Not only does this ensure that traders are taking positions that make sense according to trading volume, but it is a tool said to reduce transaction costs by minimizing market impact. Related Reading | Bitcoin Price Monthly Close Above $8,000 Forms Bullish ‘Hammer’ Reversal When price passes above or below the VWAP, it’s a signal that the trend behind the price movement is particularly strong, and could result in continuation. This tells traders not only when to take a position but increases the likelihood of a successful trade. Given how effective the tool can be used in understanding the strength of an underlying trend, it’s clear to see why the level is particularly important for Bitcoin price. The VWAP is currently at roughly $6,600. If bulls reclaim that level, it could be a signal that Bitcoin price will stage a strong recovery after a month of devastating price action. Featured image from Shutterstock
The Credits project, a worldwide company engaged in the development of solutions based on blockchain technologies, has recently announced the release of a new line of products. The new developments will be released over the course of 2020 and will help in popularizing blockchain technologies. The decentralized, distributed ledger capabilities of blockchain technologies are increasingly gaining popularity across the world in a variety of industries. However, multiple economy sectors that can take advantage of the solutions offered by blockchain-based products are still reluctant to start the process of adoption, or are slow in making headway. Despite the slump in global economy forecasts, blockchain-based fintech products are proving to be the most important trend of 2020. The Credits platform is fully committed to the development of fintech products for catering to a variety of sectors operating with monetary transfers. The main products being developed by the Credits project for the fintech industry include the following: 1) The Credits Wallet is a convenient and all-in-one solution with an integrated delegation and staking functions. The given features allow users to stake their native CS coins and earn passive income, while the delegation feature allows them to delegate their funds. The wallet boasts a convenient interface and is designed for the B2C market, as well as private users. 2) The Bonoox platform is a specialized instrument that allows users of the Credits infrastructure to release and issue their own loyalty programs. The platform caters to businesses of any size and offers instant payouts, as well as exchange of bonus points. 3) Credits also issues Cards that can be used for payments worldwide in a variety of fiat and cryptocurrencies. The cards issued by Credits can be topped up using both debit or credit cards from anywhere in the world. 4) The Credits Stablecoin is a digital asset with its value pegged to the US Dollar at a 1:1 ratio in the company’s bank account. The asset can be used for global remittances and allows fast transfers, as well as easy conversion to fiat. “I am confident that products issued by Credits have a great future. The fast-growing e-commerce, fintech and blockchain markets are certain to be successful,” as stated by Igor Chugunov, the CEO of Credits. The full line of products offered by the company are available at updated website. The development team is confident that the introduction of its new line of products will have a favorable impact on the fintech industry and will contribute to the adoption of blockchain technologies worldwide
It took the sudden emergence of a pandemic to demonstrate how pathetic the global financial system really is. The US Federal Reserve (Fed) is now doing a live demo on how to print money out of thin air and buy government and corporate securities with it. It seems that Plan B’s model will work indeed. US Central Bank Pumps $1 Million Per Second The US financial system showed the first signs of a crack well before the COVID-19 was even a thing. In September last year, the Fed started to pump money to control the overnight general collateral repo rate, which surged over 1% at the time. The central bank said it was only a temporary measure to bring the repo rate closer to its low interest rate, but it has continued those operations to this day. Moreover, the major crisis caused by the coronavirus outbreak has forced the US government and the Fed to take unprecedented measures to save the economy. What is happening right now will be in history books. The Fed has implemented the following measures to inject money into the economy: It has cut the interest to zero, though the same tactic was used after the financial crisis in 2008. It has bought unlimited amounts of government bonds and mortgage-backed securities. This is the first time in history that the Fed has pledged unlimited stimulus. The Fed announced it would start buying municipal bonds. For the first time ever, the Fed said it would purchase corporate bonds. Bazooka is not even a term to describe the massive pile of money the Fed is creating right now to buy everything. It seems that the central bank has the capability to move on to purchase company stocks and even make direct transfers to individuals. The Fed’s balance sheet is now at a record $5.3 trillion. One million dollars every second. That's how much the Federal Reserve is printing. It's balance sheet increased by $586.1 billion last week to a record total of $5.24 trillion. Which is $84 billion a day and $60 million printed per minute. — Vis (@Vis_in_numeris) March 27, 2020 To clarify, what the Fed is doing right now is issuing cash out of thin air and buying government and corporate IOUs. Fed Moves On to Buys Bonds from Abroad, May Buy Stocks As Well Another day, another “emergency lending program” is created by the Fed. Now the private entity wants to pump money on a global scale. A few hours ago, the US central bank said that it launched a “temporary repurchase agreement facility aimed at international monetary authorities (FIMA Repo Facility).” In other words, the Fed will create money to buy US Treasury securities from central banks and other monetary authorities, which can use the US dollars in their jurisdictions. At home, economists argue that the Fed might intervene in the stock market for the first time. However, the central bank would need permission from the US Congress. Quincy Krosby, chief market strategist at Prudential Financial, commented: If there were any major dislocations, it is clear that they will go into whatever nook and cranny in the market that starts to choke. We know that when you have choking in one part of the market, you have choking in another part of the market that leads to dislocation. As soon as you cross that line, you are now facing something else that you could conceivably buy. It’s funny how JPMorgan CEO Jamie Dimon said three years ago that: You can’t have a business where people can invent a currency out of thin air and think the people buying it are really smart. It’s worse than tulip bulbs, OK?…It’ll eventually blow up. It’s a fraud, OK? He was speaking about Bitcoin, but why wouldn’t he apply this to the US dollar? The latter is becoming a major bubble right now. While the Fed’s emergency measures might reduce short-term damage, it only fuels the America’s long-term problems. It’s Not Only About Fed, US Government Is Involved As Well If you think the US government will handle the bubble, you are wrong. The Fed has been regarded as a private entity that has not been ruled by any government entity. However, judging by the credit and funding facilities it just launched, it means that it collaborates with the US Treasury simply because the Fed doesn’t have permission to buy corporate bonds, stocks, and municipality bonds. Does it mean that it is taking over the US government or vice versa? In an old interview, former Fed chief Alan Greenspan said: First of all, the Federal Reserve is an independent agency, and that means basically that there is no other agency of government which can overrule actions that we take. Despite everything, the Fed is now working in tandem with the US government. Specifically, the central bank will finance a so-called special purpose vehicle (SPV) for each of its credit operations (of buying government bonds, corporate bonds, commercial paper, etc.). The US Treasury will make an equity investment in each SPV through the Exchange Stabilization Fund, effectively buying all these securities. The Fed is only acting as banker, offering financing. It recently hired BlackRock to buy all securities and manage the SPVs on behalf of the Treasury. It means that the US government is nationalizing the financial markets. This scheme merges the Fed and Treasury into one organization, at least for now. Thus, the printing press is in the hands of US President Donald Trump, and who can guarantee that he doesn’t use it after the pandemic is gone? The crypto market will boom in the coming years because the Fed is pumping unlimited cash right now. Do you think the injection of liquidity will boost Bitcoin? Share your thoughts in the comments section! Images via Shutterstock, Twitter: @Vis_in_numeris, digitalik.net
Originally from Bitcoinist.com https://ift.tt/3atnHtA
Following a brief selloff that led Bitcoin down to lows of $5,800 overnight, the crypto has been able to post a strong and sustainable rebound that has since led it to climb towards $6,500, with bulls currently attempting to reclaim its previous position within the upper-$6,000 region. It now appears that bulls are in the process of attempting to form an EMA bull cross, which could bolster its price action in the hours ahead. Furthermore, bulls are also attempting to surmount a key resistance level that was recently established, leading one analyst to note that a weekly close above this level could lead it to rally up towards $7,700. Bitcoin Sees Massive Rebound as Bulls Post Ardent Defense of $5,800 At the time of writing, Bitcoin is trading up just under 10% at its current price of $6,490, which marks a notable climb from daily lows of $5,800 that were set overnight following the crypto’s break below $6,000. It now appears that the benchmark cryptocurrency is pushing up against key resistance at $6,500, with a break above this level potentially opening the gates for significant near-term upside. As for what could push BTC above this resistance, Big Cheds – a popular cryptocurrency analyst on Twitter – explained in a recent tweet that he believes it is flexing a “potential 8/34 EMA bull cross” on its 4-hour chart. “Bitcoin 4 hour -Flexing a potential 8/34 EMA bull cross,” he noted while pointing to the chart seen below. $BTC #Bitcoin 4 hour -Flexing a potential 8/34 EMA bull cross pic.twitter.com/J6nJldbVUe — Big Cheds (@BigCheds) March 30, 2020 This formation could significantly bolster the crypto’s near-term price action if it is confirmed in the coming several hours. BTC Pushes Past Key Resistance Level; Opening the Gates for a Move to $7,700 As for how high a confirmed break of the current resistance that Bitcoin is facing could send it, one analyst is noting that he is eyeing a movement up towards $7,700. Teddy, another popular cryptocurrency analyst on Twitter, recently shared a chart showing two potential paths for the crypto, noting that it is currently in the process of taking the bullish route. “Looks like BTC picked the green way,” he said while pointing to the below chart. Looks like $BTC picked the green way pic.twitter.com/JZHUdaFII1 — Teddy (@TeddyCleps) March 30, 2020 The upside target seen on the chart he references exists at roughly $7,700, which would mark a notable climb from where BTC is currently trading at. Featured image from Shutterstock.
In the past 20 minutes, Bitcoin has traded above $6,500, marking a rapid 12% gain from the $5,800 bottom seen on Sunday evening (UTC). Due to this move, the BitMEX funding rate on the Bitcoin (XBT) contract surged by 990%, according to data from Joe McCann, a cryptocurrency trader and AI/cloud specialist at Microsoft. According to him, this means “bulls [are] getting levered up here,” potentially setting the stage for a long squeeze in the future. Analysts are currently divided over what this means for the cryptocurrency; just 24 hours ago, many were charting a move to the low-$5,000s, citing the fact that it slipped below a number of supports as if it was a hot knife going through butter. According to prominent crypto trader Flood, who called the recent move from $6,800 $6,200, Bitcoin is likely to retest $8,000 in the near future. We shorted, now we long to 8k pic.twitter.com/zmYQm2psQZ — Flood [BitMEX] (@ThinkingUSD) March 28, 2020 Featured Image from Shutterstock
Throughout 2020 thus far, Bitcoin has been showing a tight correlation with major stock indexes like the Dow Jones and the S&P 500. If this continues, and a “fractal of doom” plays out on the Dow Jones, it could spell complete and utter disaster for Bitcoin and the rest of the crypto market as well, potentially causing BTC to drop to nearly $1,000. The Coronavirus and the Coming Recession Cause Massive Panic Sell0ff While the cryptocurrency asset class was once often pointed at as an uncorrelated asset class for traditional equities investors to diversify their portfolio with, throughout the year so far, Bitcoin has shown its closest correlation with the stock market yet. Once the coronavirus was officially dubbed a pandemic by the World Health Organization and the Center for Disease Control and began to spread across the globe, a massive liquidity crisis unfolded as investors scurried to cash out any assets they hold to prepare for the coming storm. The highly contagious and deadly virus has already shut down travel, businesses, schools, and much more, and essentially frozen the economy in place. The coming recession, as a result, has investors fleeing their holdings for safer havens like cash or gold. The stock market took an absolute beating, causing the largest drop since 1987. With Bitcoin and cryptocurrencies showing such correlation, they also suffered a record-breaking drop. And if a potential fractal on the Dow Jones plays out, Bitcoin and the rest of the crypto market could be in serious trouble. The Dow Jones Fractal of Doom Could Take Bitcoin to $1,000 Markets and even economies are cyclical. Just as financial markets cycle through bear and bull, economies cycle through periods of prosperity and recession. According to some of the most iconic market cycle theorists, economies reset every 90 years or so. The last major economic setback was the Great Depression, which started with a massive stock market collapse in 1929, and lasted all throughout the 1930s. It’s now 90 years later, and the Dow Jones is exhibiting the early signs of a pattern that took place back then, triggering the worst economic depression the world has witnessed. Dow monthly: Fractal of Doom. Is the sky falling? pic.twitter.com/6HtWwJ5qTY — Nunya Bizniz (@Pladizow) March 30, 2020 And if this fractal of doom confirms in the Dow, and Bitcoin continues to follow, the first-ever cryptocurrency could be in for a world of hurt. The Dow Jones would be in for a nearly 80% decline from current levels. A similar drop for Bitcoin would take the price of the cryptocurrency back to just over $1,000 – which eerily coincides with the previous bull market’s cycle top from 2014. Related Reading | Historic Recurrence: Will Bitcoin Bottom At Its Previous All-Time High? Many theories point to Bitcoin retracing to that previous top to confirm resistance as support from many years ago. However, such a move would be devastating for crypto investors who already have held through an over two years of a bear market, only to have the asset plummet in value further. But this is all depending on both Bitcoin staying correlated to the Dow, and for this fractal of doom to confirm.
Bitcoin’s decline to lows of $5,800 overnight was met with significant buying pressure that subsequently allowed the cryptocurrency to climb higher, with BTC bulls now attempting to reclaim the crypto’s previous position within the upper-$6,000 region. This early morning rebound came about after a short bout of intense selling pressure, and buyer’s ability to absorb this and defend against further downside is certainly a bullish sign. Despite this, one trader is now noting that he believes Bitcoin is firmly in bear’s control as long as it trades below one key level that has yet to be surmounted. Bitcoin Garners Tempered Momentum as Analysts Watch Key Technical Formations At the time of writing, Bitcoin is trading up just under 4% at its current price of $6,350, which marks a notable climb from daily lows of $5,800 that were set at the bottom of the overnight selloff. Bulls did post an ardent defense of this level, however, which is what catalyzed the momentum that has led the crypto up to its current price levels. In the near-term, whether or not Bitcoin is able to climb higher or not may depend on if it is able to close its monthly candle above $6,425, a level that one analyst thinks is of the utmost importance. “BTC monthly close above 6425 would be solid bullish SFP to make April-May brighter. For now, it needs to unfold this symmetrical triangle, contracting consolidation. Safest non-scalp swing trades on breakout (or breakdown) retest.” Image Courtesy of CryptoBirb BTC Faces Heightened Bearishness Below Mid-$6,000 Region Even if BTC is able to close its monthly candle above $6,425, it still faces some intense resistance between roughly $6,450 and $6,550. George, a popular cryptocurrency trader on Twitter, spoke about the resistance that exists around this level in a recent tweet, explaining to his nearly 20k followers that he believes Bitcoin is in firm bear territory until it is able to firmly break above this region. “BTC: As long as we stay below green and close the daily below Sun[day] high we should be good for continued downside imo,” he noted while referencing the below chart. $BTC As long as we stay below green and close the daily below Sun high we should be good for continued downside imo… pic.twitter.com/DFIemLyQk7 — George (@George1Trader) March 30, 2020 Because there is just over 24-hours left until Bitcoin’s monthly close, how it trends in this relatively short time frame will be critical for determining which direction the aggregated market will head throughout April. Featured image from Shutterstock.
After facing an intense selloff yesterday that led Bitcoin, Ethereum, and virtually all other major altcoins to post some intense losses, the aggregated market has been able to recover slightly today, being led higher by BTC. This upwards momentum has led ETH to rapidly approach a key resistance level that bulls may struggle to surmount in the near-term. Multiple analysts are now noting that it is a strong possibility that the crypto sees a violent rejection at this level, which could lead it to see a capitulatory decline towards the support that has been established around $100. Ethereum Rallies Past $130 as Market Rebounds, But Key Resistance Fast Approaches At the time of writing, Ethereum is trading up just over 2% at its current price of $132, which marks a notable climb from daily lows of $125 that were set yesterday in tandem with Bitcoin’s decline to $5,800. From this point, ETH has been able to garner some decent upwards momentum, although this has shown some signs of stalling after it touched its daily highs of $133 just a few hours ago. TraderXO – a popular cryptocurrency trader on Twitter – explained in a recent tweet that he believes Ethereum will climb higher in the hours ahead if Bitcoin is able to push up towards $6,600, although he believes this movement will be followed by a strong retrace down towards $106. “ETHUSD: If btc kicks on to 65s – 66s then expecting ethusd to follow. Run some local highs, enter on the rejection, blue arrows,” he explained. $ETHUSD If btc kicks on to 65s – 66s then expecting ethusd to follow. Run some local highs, enter on the rejection, blue arrows pic.twitter.com/jSS6UuuyMM — TraderXO (@TraderX0X0) March 30, 2020 Analysts Agree: A Rejection at Resistance Will Be Dire for ETH Other traders have offered a similar sentiment to TraderXO, with one noting that $136-138 is the key level that bulls must surmount if they want to catalyze a movement up towards $159. He further notes that a rejection here, however, will likely lead the crypto towards $100. “ETH: On the BTC pair: Nothing changed, still in between levels. Flipping 0.022 would make me somewhat bullish. On the USD pair: approaching resistance. Breaking and flipping $136-138 and we can target $159. Rejecting -> Targeting $103-105.” Image Courtesy of Crypto Michaël It does appear that where major altcoins like Ethereum trend in the near-term will be partially dependent on Bitcoin’s price action, but it still remains unclear as to whether the resistance ETH faces in the upper-$130 will be insurmountable. Featured image from Shutterstock.
Bitcoin and the rest of the crypto market has since staged a strong recovery following the massive, record-breaking crash caused by coronavirus fears spilling into financial markets earlier this month. But despite crypto prices continuing to climb, the Fear and Greed Index shows that sentiment is still in the gutter. In fact, the sentiment measuring index has now reached the longest stretch of extreme fear in the cryptocurrency market since the tool was first launched. Extreme Fear Continues to Crush Markets Amidst Coronavirus Outbreak In early March, as the coronavirus was officially dubbed a pandemic and first began to shut down the global economy, the stock market, precious metals, and cryptocurrencies all suffered an extreme selloff. The stock market saw the largest losses since 1987, silver had its value set back decades, and Bitcoin and other cryptocurrencies all fell by 40% or more. Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit The entire world fell into a state of panic almost overnight, and the prices of assets everywhere reflected the fearful sentiment. Following the selloff, the cryptocurrency market Fear and Greed Index, fell to lows, indicating that investor sentiment was in extreme fear. Many old adages and quotes reminder investors that when things get scariest, it’s often the time to buy. Baron Rothschild and the Oracle of Omaha himself, Warren Buffett have coined such phrases. It’s clear someone out there was buying the extreme fear in the market – blood in the streets – as Bitcoin price rallied from a low of $3,800 to over $7,000 before a pullback. But the first-ever crypto-asset nearly doubling in price following the recent catastrophic collapse has done very little to ease the minds of crypto investors who are still in a state of panic. Crypto Fear and Greed Index Reaches Longest Stretch of Extreme Sentiment Yet According to the Crypto Fear and Greed Index, not only is the market still in extreme fear, but it’s now spent the longest stretch of time at such peak emotion. Related Reading | Despite Cryptocurrency Market Recovery, Sentiment Is Still Extremely Fearful Data shows that although the market reached a level of fear lower than current levels back in August 2019, the fear was short-lived and sentiment bounced right back to greed. The current bout of extreme fear has now lasted nearly three full weeks, and with the coronavirus and coming recession causing the market more fear than ever before, there’s a chance that the extreme fear may linger for the foreseeable future. The fear is even more extreme than the period of time when Bitcoin traded between $3,000 and $4,000 at the end of 2018. During that time, fear hung around longer than what’s taken place this time around, however, fear didn’t get as extreme as it is right now, and the current wave of fear has only truly just begun. Featured image from Shutterstock
Bitcoin price has been more volatile than ever lately after the asset plummeted from $10,000 to under $4,000 in just over a month’s time. After such a collapse, the leading cryptocurrency by market cap has since bounced and is trading above $6,300 following a successful weekend defense of $5,800 – an important line that according to one crypto analyst says could determine the fate of Bitcoin’s long-term trend. Recapping The Rollercoaster Ride of 2020 So Far Bitcoin price has had a rollercoaster of a year thus far, and more so than the cryptocurrency is typically known for. While the asset class is notorious for its extreme volatility and violent price swings, not even cryptocurrency investors and traders were prepared for the massive price swings 2020 has provided thus far. Related Reading | Economist: Government Overspending Amidst Crisis is Bullish for Bitcoin At the close of 2019, Bitcoin price found support at what the market had then thought was a bottom at $6,400. Starting in early 2020, the first-ever cryptocurrency went on an over 60% rally to well above $10,000. Ethereum and other altcoins during this time also saw explosive rallies of 100% or more in many cases. All signs were pointing toward a new bull run for Bitcoin ahead of the upcoming halving. But then the unthinkable happened. A black swan event arrived via a rapidly spreading pandemic, that caused Bitcoin price to tank to $4,000 in a record-breaking decline. $5,800 is Bulls Last Stand Or Bitcoin Price Could Fall to New Lows The particularly extreme move caused panic across the cryptocurrency market, and many long-term trendlines and growth curves were violated by the price action. However, Bitcoin price was very quick to reclaim $5,800 – a key level that was just well defended over the weekend and ahead of the monthly close. Related Reading | Recent Bitcoin Price Action Isn’t Radical According to Serious Valuation Models But why is $5,800 so important? According to one crypto analyst, $5,800 is the last stand for bulls, who must defend the level for Bitcoin’s long-term bullish trend to remain intact. Why 5.8k matters $BTC zoom out. I bought some spot back. Bulls have to hold as it was the last HL prior to the move up. Below it invalidated the trend that had formed on the LTF’s and would confirm continuation to the downside. This is the last stand imo pic.twitter.com/DM7uKD7XsF — Pentoshi (@Pentosh1) March 30, 2020 $5,800 was the support level that Bitcoin fell to in February 2018, then again and again throughout the bear market. It also acted as a launchpad when Bitcoin broke above it the last time around in early 2019 and is currently holding once again even after this weekend’s violent selloff. Over the weekend, Bitcoin price fell from $6,700 to as low as $5,800, but already bulls have managed to push the price of the first-ever cryptocurrency back above $6,000 and to $6,300 at the time of this writing. If bulls can continue to defend $5,800, the leading cryptocurrency by market cap will have set a higher low on the highest timeframes. But with the coronavirus still very much out of control, bears could eventually get the upper hand once again. Featured image from Shutterstock
Singapore-based Huobi is the latest crypto exchange to launch perpetual swaps. The new product is live on Huobi DM, the company’s derivative trading platform. New Product Allows Traders to Benefit from Market Volatility BitMex-like future contracts with no expiry times, commonly referred to as perpetual swaps, are becoming increasingly popular among crypto exchange firms. Last year, Binance and OKEx introduced perpetual swaps, and now it’s time for Huobi to join the trend. Huobi DM already provides crypto derivatives, including Bitcoin futures with contract expiration of weekly, bi-weekly, and quarterly periods. Now the platform offers perpetual swaps. These derivatives allow traders to get exposure to Bitcoin without actually owning it. The product is similar to a futures contract that mimics the cryptocurrency’s spot price, but it has no expiry or settlement. Usually, platforms exchange payments between buyers and seller every 8 hours. According to Huobi DM, perpetual swaps represent “a new derivative product that enables users to better hedge risk and create leveraged arbitrage opportunities in volatile market conditions.” Ciara Sun, Huobi Group’s VP of Global Business unit, explained: As we’ve recently experienced, sudden market swings can have a significant yet temporary impact on the broader financial ecosystem, but volatility itself is a very normal part of market cycle. Perpetual swaps provide traders another tool in their arsenal to capitalize on market movements to create arbitrage. Huobi’s Perpetual Swaps Support x125 Leverage It’s likely that Huobi monitored how other exchanges behaved and implemented the best practices from its own perspective. Particularly, the derivative platform allows a maximum leverage figure of up to 125, as in the case of Binance. This suggests that traders’ initial deposit for a position can be boosted by 125 times in order to maximize potential profits. However, the risk of loss is much higher as well, which is why most experts warn that such instruments should be allowed for institutional and professional investors only. Elsewhere, BitMex and OKEx’s maximum leverage is 100x. When Binance first announced its maximum leverage figure, it received a lot of criticism. However, Huobi claims that it offers some key risk management features to minimize risk, including the partial liquidation mechanism and liquidation circuit breaker. The former gradually reduces a user’s position rather than liquidating it in full in a single event. The liquidation circuit breaker is used in abnormal market conditions when the platform detects extreme deviations between the liquidation and market prices. Perpetual swaps have been on our roadmap for quite some time, but we wanted to ensure we had the right risk controls in place before we made it available to users, Sun explained. Initially, Huobi supports BTC swaps only, but it will add ETH, EOS, and LTC soon. Recently, Bitcoinist reported that Huobi would compensate traders who lost fund because of the system failure during the crypto market crash. Do you think Huobi’s maximum leverage is too high? Share your thoughts in the comments section! Image via Shutterstock
Originally from Bitcoinist.com https://ift.tt/3avzNm2
It’s been a minute, CoinMarketCap-ers! Glad to see you back here again for another week’s edition of “What You Said“! Time to check out some interesting responses we received over the week from our polls!
Before we begin, here’s a reminder to subscribe to the CoinMarketCap daily newsletter. Join a 60,000-strong community that receives the latest crypto news hot off the press, and get to participate in our daily entertaining polls! Your responses may even end up in the upcoming weekly “What You Said“.
What You Said in Last Week’s Polls
Here are some interesting responses from last week’s polls :
The average response to the above question was 5.2.
Are you on Twitter? Follow us here!
The average response to the above question was 4.8.
The average response to the above question was 7.7.
Like what you see? For more daily polls, subscribe to the CoinMarketCap daily newsletter for a concise summary of daily crypto market performance and top news!
The post “What You Said” (Mar. 30), a Weekly Round-Up of Sentiments From the Community appeared first on CoinMarketCap Blog.
Twitter bot Whale Alert reported that 5,500 Bitcoin was moved from an unknown wallet to Binance, prompting fears that the transaction might lead to a significant drop. $33.8M Worth of BTC Moved from Unknown Wallet to Binance On March 29, about $33.8 million worth of Bitcoin left an unknown wallet to reach Binance. The crypto exchange hasn’t confirmed yet that this was an internal move, which makes the crypto community think this might be another example of how institutional investors are dumping the cryptocurrency. 5,500 #BTC (33,856,623 USD) transferred from unknown wallet to #Binance Tx: https://t.co/lYfUI5S7GS — Whale Alert (@whale_alert) March 29, 2020 Some commentators implied that a steep in the Bitcoin price coincided with the move, which proved that it was not about Binance about reshuffling its wallets. Shortly after the transaction showed up on blockchain, the Bitcoin price dropped from about $6,150 to almost $5,900. Looking at the wallet transaction data, it shows that the 5,500 bitcoins have been ‘spent’ and sent to a number of other new wallet addresses. Twitter commentators have already thrown out some brutal predictions about the Bitcoin’s support price, with figures ranging from $4,000 to as low as $1,000. However, the price has rebounded and now trades above $6,300 as of 1:25 PM UTC. Last week, Bitcoinist anticipated that the largest cryptocurrency by market cap could break below the $6,000 level after forming a double top, which is a bearish pattern in technical analysis. Earlier today, Whale Alert tweeted that 50,343 BTC worth over $320 million moved from unknown wallet to unknown wallet. However, this transaction looks like an internal transfer, though we can’t confirm which crypto exchange is involved. What we know is that the receiving address has been conducting high volume transactions on a regular basis. Are Institutional Investors Dumping Bitcoin? Whether the BTC move reported by Whale Alert was an internal transfer or not, many institutional crypto investors have sold their Bitcoin holdings. In fact, institutional investors were mostly responsible for the recent Bitcoin crash that saw the cryptocurrency losing over 20% in a single day, which was the biggest daily drop since October last year. The dramatic decline came amid a general panic caused by the coronavirus pandemic, which has hit most traditional market sectors. Do you think the 5,500 BTC transactions was an internal transfer? Share your thoughts in the comments section! Images via Shutterstock, BTC/USD charts by TradingView
Originally from Bitcoinist.com https://ift.tt/2JtCGHW
If you’ve been on Crypto Twitter at all over the past few months, you’ve likely noticed multiple tweets like the one seen below; stablecoin companies, from Tether to Circle and Paxos, are issuing tens of millions of dollars worth of these digital assets day after day. 10,000,000 #USDC (10,000,000 USD) minted at USDC Treasury Tx: https://t.co/QPZHnQzN3h — Whale Alert (@whale_alert) March 29, 2020 In fact, according to data from blockchain analytics company Coin Metrics, the value of all U.S. dollar stablecoins (USDT, Binance USD, USD Coin, etc.) is on the verge of passing $8 billion — a metric up by 20% in the past month in itself. CM has added Huobi dollars (HUSD) and Binance dollars (BUSD) to their community data. Stablecoin supply in the sample is just shy of $8b collectively. My guess is it passes that threshold tomorrow. https://t.co/aEOeZIpiDk pic.twitter.com/B9WPd1mbsM — nic cartbrrrrr (@nic__carter) March 29, 2020 Many believe that this trend suggests the crypto market will perform well moving forward. Why It’s Big For Crypto As to why this is bullish, Charles Edwards, a digital asset manager, noted earlier this year that “major changes in Tether’s market capitalization have led Bitcoin’s price over the last 1.5 years.” For instance, prior to the nearly 50% crash in November 2018 that saw BTC plunge from $6,000 to $3,150 and the rest of the crypto market fall even further, the amount of USDT circulating fell by hundreds of millions; also, prior to the majority of 2019’s 330% rally was the printing of hundreds of millions worth of the coins. Major changes in Tether's Market Cap have led Bitcoin's price over the last 1.5 years. 5 January 2020 was no different. A healthy signal. Keep it printing pic.twitter.com/dfe0dBJzwh — Charles Edwards (@caprioleio) January 13, 2020 The millions of dollars worth of new stablecoins printed over the past few days would suggest that if this historical trend holds true, crypto assets are about to see some strong upside and may be bottoming. Fundamentally, this makes sense; although there are few details as to how one can deposit U.S. dollars and receive USDT in return, the introduction of fiat into the space through stablecoins should eventually act as a catalyst for Bitcoin’s growth when USDT holders sell their coins for BTC or other crypto assets. Su Zhu, CEO of Three Arrows Capital, summed it up nicely in 2019, when he wrote that with so much money sitting on the sidelines, especially in stablecoins, BTC could appreciate rapidly: Theres an estimated $2B in cash sitting at crypto funds/holdcos. Theres another $2B+ sitting in stablecoins, and another $2B sitting at exchanges/silvergate/signature. This is $6B fiat already onboarded to crypto to buy your bags. Imagine thinking we need new money to hit $10k. Indeed, due to the existence of a fiat multiplier/amplifier ($1 entering the crypto space likely means more than $1 of market cap growth due to liquidity), the billions sitting on the sidelines could greatly increase the value of Bitcoin in the future. The macro backdrop is obviously different now than when Su Zhu made his comment, though historical precedent suggests that the coming months could be rather bullish for the market as it is clear there is money on the sidelines seemingly waiting to enter the space. Featured Image from Shutterstock
Bitcoin hasn’t done too well over the past few hours. As reported by this outlet previously, the cryptocurrency just tumbled under $6,000 just hours ago, falling under this key psychological level for the first time in a week. Related Reading: Crypto Tidbits: Bitcoin Holds $6,000s, Federal Reserve To Do “QE Infinity,” U.S. Digital Dollar Proposed The cryptocurrency seems poised to close its ongoing daily and weekly candles under this level, which would mark a slight blow to bulls. Indeed, many traders expect the asset to continue to trend lower over the coming days. Bitcoin’s Outlook Isn’t Too Hot Filb Filb, the crypto trader who accurately predicted Bitcoin’s Q4 2019 and January 2020 price action to a T, recently shared the below chart in the wake of the drop below $6,000. The chart shows a number of Bitcoin charts (from short time frames to long time frames). His indicator is advising him to stay “short” across seven out of eight time frames, indicating that more downside for the cryptocurrency market is a possibility. The same indicator advised traders to be short or at least in cash heading into March 12th’s brutal drawdown, during which Bitcoin fell from $7,700 to a price as low as $3,800. Adding to the bearish narrative, a top crypto trader recently remarked Bitcoin’s daily chart is flashing three harrowing signs at the moment: The Tom Demark Sequential, which called Bitcoin’s 2019 top at $14,000 and the bottom at $6,400, recently flashed a green “9” candle, suggesting a reversal is imminent. The Stochastic RSI has seen a bearish crossover, suggesting downside remains. The MACD histogram is currently declining and looks poised to turn negative within the next few days. Furthermore, trader DonAlt, a pseudonymous analyst who called much of the recent downturn, recently shared that the price action feels “familiar,” referencing his sentiment that the current price action is mirroring that seen prior to the capitulation event on March 12th. Featured Image from Shutterstock
After a day-long period of consolidation within the lower-$6,000 region, bulls have once again lost their footing, with bears catalyzing a break below the support that had been established at $6,000. This has led analysts to note that Bitcoin is fast approaching a “bounce or die” level that buyers must defend, or else the benchmark cryptocurrency could once again find itself caught within a capitulatory downturn that leads it to decline back towards its recently established lows. This potential selloff comes as Bitcoin’s weekly close fast approaches, and a failure to bounce prior to this close could prove to be dire for the cryptocurrency. Bitcoin Faces Massive Selloff as Buying Pressure Begins Evaporating At the time of writing, Bitcoin is trading down over 5% at its current price of $5,900, which marks a notable decline from daily highs of $6,300 that were set yesterday when bulls attempted to garner some upwards momentum. The failure for bulls to sustain this momentum led to a rejection at this level, with the subsequent downtrend marking a significant extension of that which was first incurred when the crypto’s strong rally from $3,800 stalled at $6,900. In the near-term, it is imperative that buyers defend against a drop below $5,900 – as this is where a significant amount of support has been established. This volatility also comes just a couple of hours before BTC posts its weekly candle close, with a bearish close likely bolstering bears, leading the crypto to decline further in the week ahead. BTC Reaches “Bounce or Die” Level as Bulls Falter This plunge has led Bitcoin to what appears to be a “bounce or die” support level. Teddy – a prominent cryptocurrency analyst on Twitter – mused this possibility in a recent tweet, offering a chart showing that the crypto is currently resting on a key multi-week support level. Image Courtesy of Teddy If this level is shattered, the next key level marked on the chart above sits at $5,450. Any potential near-term weakness could also be further perpetuated by the bearish economic backdrop that Bitcoin is currently trading against. If the stock market’s rebound seen throughout this past week shows signs of faltering, its next downturn could drag BTC down with it. The futures market’s imminent open, coupled with Bitcoin’s upcoming weekly close, should offer investors with significant insights into where the crypto market is heading in the week to come. Featured image from Shutterstock.
Binance is the world’s leading cryptocurrency exchange. While that may be the case, its recent business decision is annoying a lot of users, and is seemingly driven by greed first and foremost.
There are hundreds of trading pairs on the Binance exchange.
Binance Takes the Easy way out
Some of those markets pertain to leveraged tokens.
It now appears that the company will remove the leveraged markets altogether.
This decision is made public three days before the delisting will effectively occur.
Affected markets include BEAR, BULL, ETHBULL, EOSBEAR, XRPBULL, and BNBBEAR, among others.
The value of these tokens has collapsed entirely since the recent market crash.
Surprisingly, none of them seem to be recovering.
According to Binance, this is primarily due to people “not understanding these markets”.
That is very shortsighted, and should prompt the company to educate people on these matters, rather than removing the option altogether.
Moreover, the company will not be reinstating users affected by the horrible performance of these tokens.
It would be relatively easy for Binance to roll back their internal database of these tokens prior to the crash.
By removing all traces of the market, the company is seemingly fueled by greed, instead of doing the right thing..
Rest assured that this decision will not go over well with people who are now missing out on thousands of dollars because Binance doesn’t want to explain these markets to its customers properly.
The post Binance Costs Users Potentially Millions by Removing Leveraged Tokens appeared first on NullTX.
via NullTX https://ift.tt/3atCaG0
For the first time in just under a week, Bitcoin has tumbled under $6,000, extending Friday morning’s losses of 10%. As of the time of writing this, the cryptocurrency trades for $5,930, having hit $5,895 just minutes ago as of the time of this article’s writing. While this price action just transpired, many analysts believe it’s time to pay close attention to the charts. Key Bitcoin Level To Watch is $5,800 The key level to watch for Bitcoin moving forward is $5,800, approximately where the 200-week moving average sits as of the time of this article’s writing. As explained in a previous NewsBTC post, this specific simple moving average has immense importance to traders, for it marked Bitcoin’s exact bottom in December of 2018 and also coincided with bottoms in 2015. As Chris Burniske of Placeholder capital once wrote: “As someone recently reminded me, in a 2018 interview with CNBC I stated the real capitulation starts if we break the 200 week MA. We did not break the 200 week MA in 2018 / 2019 – it provided the perfect bounce for Bitcoin. But now that we broke and closed last week below $5500, what was once support becomes resistance.” The cryptocurrency posting a weekly close (four hours as of the time of this article’s publishing) under this key support may suggest that there is more pain to come for the Bitcoin price. Bearish Factors Persist Unfortunately for bulls, there are a number of bearish factors that could increase the chances Bitcoin closes its ongoing weekly candle under the aforementioned key support. A top crypto trader recently remarked Bitcoin’s daily chart is flashing three harrowing signs at the moment: The Tom Demark Sequential, which called Bitcoin’s 2019 top at $14,000 and the bottom at $6,400, recently flashed a green “9” candle, suggesting a reversal is imminent. The Stochastic RSI has seen a bearish crossover, suggesting downside remains. The MACD histogram is currently declining and looks poised to turn negative within the next few days. Furthermore, trader DonAlt, a pseudonymous analyst who called much of the recent downturn, recently shared that the price action feels “familiar,” referencing his sentiment that the current price action is mirroring that seen prior to the capitulation event on March 12th. Why does this feel so familiar pic.twitter.com/8mSWsDucA5 — DonAlt (@CryptoDonAlt) March 27, 2020 If Bitcoin is to follow the historical price action to a T, it will make one more attempt at surmounting $7,000s in the coming days, then fall dramatically, potentially towards the local lows at $3,800. Featured Image from Shutterstock
Leading global blockchain news provider. A blockchain, originally block chain, is a growing list of records, called blocks, that are linked using cryptography.