Ripple rallied to a new monthly high at $0.2358 before correcting gains against the US Dollar. XRP price is now trading above the $0.2100 support and likely to start a fresh increase. Ripple price declined sharply after it failed to surpass the $0.2350 resistance against the US dollar. It is now trading above the $0.2100 support and likely restart its increase. There is a major bullish trend line forming with support near $0.2125 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair could climb back above $0.2200 and $0.2220 resistance levels in the near term. Ripple Price Holding Uptrend Support In the past two days, there was a strong surge in bitcoin, Ethereum and ripple. XRP formed a strong support base above $0.2000 and rallied above the $0.2120 and $0.2200 resistance levels.
Ethereum surged to a new monthly high at $227 before correcting lower against the US Dollar. ETH price is now testing the $205 support zone and it is likely to start a fresh rally. Ethereum started a downside correction after a strong rally above $220. The price is currently trading above the key uptrend supports at $205 and $200. There is a short term contracting triangle forming with resistance near $210 on the hourly chart of ETH/USD (data feed via Kraken). The pair is likely to start a fresh increase above $210 as long as it is above $200. Ethereum Price Correcting Gains Yesterday, we saw a sharp rise in Ethereum above the $200 hurdle against the US Dollar. ETH surged more than 10% and even climbed above the $220 level and the 100 hourly simple moving average. It traded to a new monthly high at $227 and recently started a downside correction, similar to bitcoin. There was a break below the $212 and $210 support levels. Ether price even spiked below the $205 support, but it remained well bid above the $200 support and the 100 hourly simple moving average. It is currently trading above the 23.6% Fib retracement level of the recent decline from the $227 high to $203 swing low. An initial resistance on the upside is near the $210 level. There is also a short term contracting triangle forming with resistance near $210 on the hourly chart of ETH/USD. Ethereum Price If there is an upside break above the triangle resistance, Ethereum could test the $215 resistance area. The 50% Fib retracement level of the recent decline from the $227 high to $203 swing low is also near $215. A successful break above the $215 resistance area is must to start a fresh increase and rally above the $220 resistance area in the near term. Key Uptrend Support The main uptrend supports on the downside are near $205, $202 and the 100 hourly SMA. If Ethereum fails to stay above the $200 support zone, there is a risk of a larger decline. In the mentioned bearish case below the $200 support, the price is likely to continue lower towards the $192 and $190 support levels in the coming sessions. Technical Indicators Hourly MACD – The MACD for ETH/USD is about to move back into the bullish zone. Hourly RSI – The RSI for ETH/USD is currently struggling to climb above the 50 level. Major Support Level – $202 Major Resistance Level – $215
Bitcoin price recently exploded from under $7,800 to over $9,400, just twelve full days before the asset’s block reward halving. The powerful push from last month’s extreme low set during Black Thursday, to current levels, has caused a bullish engulfing candle to form on monthly Bitcoin price charts. But what exactly does this mean for the asset if tonight’s critical monthly closes as a bullish engulfing? Bitcoin Price Could Close Monthly With Powerfully Bullish Statement At the start of 2020, the stage was set for Bitcoin and the rest of the cryptocurrency market’s next bull run. Bitcoin price had rallied from $6,800 to over $10,000, and altcoins everywhere broke out from downtrend lines and went on explosive uptrends of their own. But the coronavirus caused a massive asset selloff and liquidity crisis now dubbed Black Thursday, which resulted in an epic stock market crash and Bitcoin plummeting to under $4,000. Related Reading | Bitcoin Price Sets Longest Stretch of Positive Weekly Growth Since May 2017 From the low, Bitcoin price has now risen nearly 150% to over $9,400 at the peak. The powerful surge from the lows, has resulted in a bullish engulfing candle on monthly Bitcoin price charts. If tonight’s daily close – also the monthly timeframe candle close – the bullish engulfing will forever be left on the Bitcoin price chart as a reminder to buy even the most extreme dips in crypto. What Is a Bullish Engulfing Candle and What Does It Mean for Crypto Investors? Bullish engulfing candles are typically a powerful statement from bulls, that bears are no longer in control, and bulls will soon show their true power. These Japanese candlestick formations are often reversal signals, although they can also mean continuation mid-trend following short-term pullbacks. Related Reading | All Bitcoin Fundamentals Scream “Buy” Says Prominent Market Researcher When bullish engulfing candles are confirmed, they are usually followed with additional candles in the bull’s favor. However, not all bullish engulfing candles confirm, even if the monthly candle closes as one. In the below examples, a number of other bullish engulfing candles have been highlighted. The most recent bullish engulfing candle, prior to the current April candle, was in January as Bitcoin price touched over $9,000. The next candle, was rejected, and it caused the Black Thursday collapse in the following month. But the rebound as been nearly as dramatic as the fall itself, and with the halving in just twelve days, there is a far higher likelihood the bullish engulfing candle is confirmed with further upside and green candles form crypto bulls ready to embark on the next bull run. But before this happens, Bitcoin price must close tonight’s daily and monthly candle as over $8,750. Given the momentum the asset currently has, it is highly possible, unless bears step in within the next few hours and manage to push Bitcoin back down to recent lows for yet another retest.
In less than 48 hours, Bitcoin price has gone parabolic and risen by $1,700 and over 22%, touching nearly $9,500 before falling back to refuel. However, it isn’t just Bitcoin price that’s gone parabolic. Google Search Trends for the term “Bitcoin halving” has also spiked considerably, and could be partially what’s driving this epic rally. BTC Price Rallies More Than 20% In 48 Hours, Rocketing Over $9,000 The recent explosive Bitcoin rally has sent the price of the leading cryptocurrency by market cap parabolic, bursting from under $7,800 to well over $9,000 in just two short days. The extreme push from bulls has revived hope that the Bitcoin halving may have a dramatic impact on sparking the next bull run, as the crypto community has long anticipated. RELATED READING | NEARLY HALF OF ALL CIRCULATING BITCOIN SUPPLY HASN’T MOVED IN TWO YEARS That hope was nearly crushed by the Black Thursday collapse in March, but nearly all lost ground has already been recovered by the first-ever cryptocurrency. Much of what is driving the asset’s latest bull rally, is growing interest in the asset’s halving. Search Queries for Bitcoin Halving Go Parabolic Two Weeks Ahead of Event Also going parabolic over the last week alongside Bitcoin price, are search queries on Google Trends for the term “Bitcoin Halving.” Zooming out, searches for the term have reached the highest level ever recorded, according to Google Trends data. The surge is very clear to see on Google Trends charts. It’s also clear to see the impact on Bitcoin price charts, which show a sharp recovery following an extreme selloff in March. April’s monthly candle is now higher than the top of the March candle, and it Bitcoin price can close above roughly $8750, the monthly would close as a bullish engulfing candle – an incredibly bullish signal, that usually is followed by a strong uptrend. Bitcoin’s halving has long been said to have a dramatic impact on the price of the first-ever cryptocurrency, due to the already extremely scarce supply being slashed in half overnight. Each previous halving has started a new bull run, and with how many more people know about Bitcoin and the Bitcoin halving this time around, the results could be far more significant than in past bull cycles. RELATED READING | MOST IMPORTANT CHART EVER? BITCOIN S2F COMBINED WITH REDDIT RAINBOW CHART EMERGES The last bull market took Bitcoin from roughly $160 to as high as $20,000. With Bitcoin’s bear market low residing at $3,200, the next top could be anywhere from $55,000 to as high as hundreds of thousands of dollars per BTC. Long-term price predictions put the asset well over one million dollars per BTC, but such lofty valuations are wild speculation. Still, the potential is there, and only time will tell if these predictions come true. For now, one thing is for sure: Interest in the Bitcoin halving is currently skyrocketing, and so is the asset’s price. Featured image from Pixabay.
Originally from Bitcoinist.com https://ift.tt/3d0XtiX
Bitcoin popped towards its two-month high early on Thursday, breaking above $9,400 amidst halving hype. But the cryptocurrency failed to secure its intraday gains as it corrected lower by about $937 from the local top. The pullback started at the same level that has been capping bitcoin’s upside attempts since the 2017 bull run. It was a glorious morning for bitcoin as its price rocketed past $9,400 for the first time in two months. The top cryptocurrency was itching to make a comeback ever since it crashed by more than 50 percent in mid-March. A price rebound that ensued in the latter half of March, followed by an extended upside move throughout April, helped bitcoin recover fully – from $3,880-low to $9,478-high established April 30. Nevertheless, the cryptocurrency’s uptrend is hinting to run out of fuel as it flirts with its long-term technical resistance. Descending Trendline The thick descending trendline stopped bitcoin from closing above $20,000, its all-time high, in December 2017. It again spoiled the cryptocurrency’s bullish attempt above $14,000 in August 2019. And the same level served as a no-entry zone to bitcoin’s advances above $10,500 in February 2020. BTCUSD tests its long-term resistance trendline | Source: TradingView.com, Coinbase Even today, the bitcoin price reversed wildly after testing the same descending trendline, falling back to as low as $8,541 on Coinbase crypto exchange. What It Means for Bitcoin Technical levels are psychological – places where a majority of traders tend to express a unified market bias. So far, traders have treated the Descending Trendline as their cue to exit their long positions. They have been unable to breach above the level since 2017. Bitcoin could either break above the trendline to begin a new bull run or extend its downside pullback to start a deeper correction towards a similarly strong, blacked Ascending Trendline. Given the prevailing fundamentals, traders are more likely to hold their positions near the Descending Trendline. It is due to bitcoin halving, an event that will slash the cryptocurrency’s daily mining reward rate from 1,800 BTC to 900 BTC on March 12, 2020. Most analysts see it as a long-term bullish sign, given how the last two halvings followed more substantial price rallies in the bitcoin market. At the same time, the fast-spreading Coronavirus pandemic could prompt investors to exit their risk-on positions to seek safety in cash, as had happened in March 2020. That would decrease the short-term demand for the cryptocurrency, drawing it away from the Descending Trendline. A drawback could crash bitcoin to as low as $5,000 before it bounces again to retest the Descending Trendline. Photo by Kevin Butz on Unsplash Since you’re here… Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
April 29th was undoubtedly one of Bitcoin’s biggest days in months. On this day, the cryptocurrency finally broke from its consolidation pattern under the $7,800 resistance in a strong fashion, reaching $9,000 at the trading session’s highs — more than 15% higher where it had started. The move was unexpected, so unexpected that the move caused Bitcoin to briefly experience a moment of virality on what some call ‘Chinese Twitter’, Weibo. Bitcoin Starts to Trend on Weibo, ‘Chinese Twitter’ According to Samson Mow — CSO of Bitcoin development company Blockstream — the Chinese term for “BTC” (比特币) recently exploded in popularity on Weibo. This comes shortly after the Chinese term for “Bitcoin halving” experienced a similar treatment last week, suggestive of a larger hype cycle for cryptocurrency. As of April 29th, the search term was the 19th most popular term on the trending page, registering hundreds of thousands of comments on the matter from the over 400 million users that frequent the social platform. #Bitcoin is trending in the top 20 on Chinese Twitter. pic.twitter.com/xtB9dpZpjD — Samson Mow (@Excellion) April 30, 2020 NewsBTC’s cursory glance of the search page for the search term “比特币” found out that, unsurprisingly, the reason why the Chinese public has taken such an interest in the cryptocurrency was due to its extreme price strength over the past two days. BTC is also seeing spikes of virality globally, not just in China. Data from Google Trends indicates that worldwide search interest in the terms often searched by new crypto investors — “buy Bitcoin” and “what is Bitcoin” are two of many — has started to rise over the past few weeks, showing strength even amid a global pandemic. On an anecdotal level, this writer has heard an increase of calls and received many more messages from friends and family regarding cryptocurrency, with some going even as far as to ask how they should buy BTC and why they should buy the asset. Only Adding to Brewing Bull Case While “比特币” starting to trend on one of China’s social media platforms is notable in and of itself, the overall trend of Bitcoin becoming more popular amongst retail market-watchers bodes well for the crypto market as a whole. Within two weeks as of the time of this article’s writing, Bitcoin’s block reward reduction, better known as a “halving,” will finally come to pass. A block reward reduction is when the number of BTC issued every block (every ~10 minutes) gets cut in half. The halving is a move that will irreparably push the inflation rate of BTC by 50% lower, decreasing the number of coins that can be sold by mining entities needing to maintain operations. Now, couple this with an influx of buying activity that is being caused by the recent price action and you have a simultaneous negative supply shock and positive demand shock, which should theoretically result in the price of Bitcoin increasing. Whether or not this trend plays out — as simple supply-demand dynamics suggests — remains to be seen. Photo by Prateek Katyal on Unsplash
Originally from Bitcoinist.com https://ift.tt/2yWwgPT
A reoccurring theme in many Bitcoin analyses over the past few weeks has been mentions of a “rising wedge.” For those unaware, a rising wedge is a common chart pattern marked by a strong uptrend. Although this uptrend may seem bullish from a top-down perspective, rising wedges are textbook reversal patterns. Per Investopedia, this form of technical analysis wedge is often seen amid bear markets, and often result in the asset falling, especially if volume across the period analyzed consistently trends lower. Ever since Bitcoin started to form an uptrend in the wake of the mid-March crash to $3,700, analysts have asserted that the asset is forming a textbook rising wedge, likening BTC’s chart to classic rising wedges. There was even one analysis by a crypto trader that accentuated that BTC’s structure looked exactly as it did prior to the start of the dump from the $9,000s to $3,700 over the span of a week. This analysis, which depicted the cryptocurrency trading in a steep rising wedge, can be seen below. Chart from @CryptoDonAlt (Twitter) But amidst the surge that transpired on April 29th, Bitcoin invalidated this bearish factor, only adding fuel to the cryptocurrency bull case. Bitcoin Invalidates Crucial Bearish Sign, Setting Stage for Strong Rally During the surge over the past two days, BTC has decisively broken above the rising wedge, beating out the high probability it had of breaking below this classic chart formation. As a crypto trader pointed out below, the rising wedge that had constrained Bitcoin’s price for the past six weeks has been decimated, with clear invalidation to the upside. What’s especially notable about this formation of BTC breaking above a rising wedge after a bear market, this is the exact same market structure that marked the start of 2019’s bull run, which brought prices from the $4,000s to $14,000 in three months’ time. Chart from @RookieXBT (Twitter) History rhyming, as the trader’s chart seen above shows, will see Bitcoin rally past $14,000 by the start of June. What’s Behind the Explosive Move? With the cryptocurrency market somehow beating the odds to break a rising wedge to the upside, some have been left wondering what has managed to push Bitcoin higher. Executives recently had an answer to this pressing question, sharing their opinions with Bloomberg. Roch Rosenblum, the co-head of trading at GSR, remarked that the ongoing BTC rally is predicated on the macroeconomic environment: “This latest run past $8,000 is as much about positive macro sentiment as it is about the upcoming halving. We’re starting to have a lot more certainty, as more countries begin to share their plans to reopen the economy in May.” This optimism was echoed by Zac Prince, a co-founder of BlockFi, who said that the “current market dynamics are driving a bolstered interest [for] digital currency.” These dynamics he was referencing was the Federal Reserve’s commitment to money printing and the growth in stablecoins. Photo by Liza Rusalskaya on Unsplash
No multi-billion-dollar asset has performed quite as well as Ethereum over the past seven weeks. Since the $88 lows that were sustained after March’s “Black Thursday” crash, the cryptocurrency has rallied by 150%, reaching as high as $228 earlier today at the local peak of the ongoing rally. Many investors have been inclined to say that this is just the start of a greater move, citing the technical strength of the uptrend in Ether. But a fractal analysis by a leading crypto trader and a confluence of other factors predicts that Ethereum’s luck will soon run out. Fractal: Ethereum Subject to Sharp Decline Later This Year As irrational as the cryptocurrency market may sometimes seem, the market, like others, can be analyzed through a variety of different means. Per a leading crypto trader, one such means is fractals, the repeating of historical price action over other time frames and with other assets. To prove this, he shared the chart below on April 29th, indicating that Ethereum’s chart from December to now looks remarkably like XRP’s price action in late-2018. The chart suggests that should the fractal play out in full, ETH will crash to fresh yearly lows by the end of the year. Chart from @im_calmly (Twitter) Fractal analysis normally receives a lot of flak from skeptics. They claim that it is irrational to expect assets to show repeating patterns on different occasions due to small sample sizes, the existence of coincidences, and the sentiment that charts can be manipulated to fit fractals. The crypto trader, however, made it clear that he believes fractals are a valid form of analysis for Ethereum, explaining to a skeptic bashing the above chart: “Markets are a reflection of human psychology and coming up with ‘reasons’ for price action is just retconning.” This bearish outlook for Ethereum comes as analysts have suggested that Ethereum’s continued decision to embrace stablecoin projects, like Tether’s USDT and USD Coin, could present a long-term threat to the value of ETH. Bitcoin Is the Bellwether A continued rally in the Bitcoin price could put a stop to the correction of Ethereum, while a crash in BTC would enable the bearish scenario laid out above. The leading cryptocurrency, after all, is the bellwether for the rest of this nascent asset class; without Bitcoin, crypto would fail. Fortunately for holders of Ethereum, analysts are largely optimistic about the prospects of BTC moving forward from both technical and fundamental perspectives. Fundamentally, a report authored by startup Ryze explained that with the fiat regime being pushed to its extremes with money-printing and negative interest rates, there’s a potential for inflation to increase and potential for trust in alternative monies to grow. This backdrop sets the stage for “Bitcoin’s greatest test yet.” Technically, a trader observed that on April 29th, BTC’s short-term chart registered nearly the exact same signal that was seen in April of 2019, specifically on the day that marked the start of a rally from $4,000 to $14,000 over the span of three months. Photo by Mike Kotsch on Unsplash
Originally from Bitcoinist.com https://ift.tt/35kDjh7
Bitcoin FOMO rally ahead of its mining reward halving could fizzle, warns a top analyst. The cryptocurrency has more than 21 percent to log its best week since June 2019. But whales think that the uptrend has come on the backs of poor liquidity that raises the possibility of a sharp pullback. It is Thursday and bitcoin already surged by more than 21 percent into the week. But whales believe the ongoing bull run is fake. A prominent trader, who is sitting atop a $20 million monthly loss from his anti-rally bitcoin positions, expressed his conviction over potential bull exhaustion. He called bitcoin’s upside run as an “organized FOMO rally,” wherein big players are manipulating small traders to enter the market using the “halving” narrative. “The weekly Bitcoin chart is the definition of an illiquid altcoin,” the whale retweeted ZeroHedge’s Tyler Durden this Thursday. “Hilarious cycle it’s been through. My hope is that the halving will financially destroy as many Chinese miners as possible and we can actually have a legitimate bull market instead of this pump and dump movie.” Source: Joe007 Liquidity Crunch The next Bitcoin Halving event on May 12, 2020 will slash the cryptocurrency’s mining reward by half – from 12.5 BTC to 6.25 BTC. Traders anticipate that the newfound scarcity would somewhat make bitcoin more valuable in the future, with a popular price prediction model even giving a $100,000 price target by 2021. The sentiment saw bitcoin price recovering wholly from its 2020 bottom at $3,858. As the price closes towards $9,500 in the Thursday trading session, traders are optimistic about an extended upside momentum above $10,000 ahead of the halving. But the supply-slashing event brings short-term risks to the very community that relentlessly produces bitcoin. Miners risks going out of business as their dollar-based mining rewards gets cut by half. So to cover their operational costs, they would need to sell their newly minted cryptocurrency stash for higher rates. The buying pressure then shifts to the spot market. Traders and investors are face-to-face with an economic crisis brought forth by the fast-spreading COVID19 pandemic. Under these times, asset managers, hedge funds, family offices, and even average Joes prefer to exit volatile assets to hold cash and mitigate potential losses. That’s called a liquidity crunch. The historical sell-off in Bitcoin and the U.S. benchmark S&P 500 in mid-March happened for the very same reason. Later, the central banks intervened with expensive stimulus programs, bringing the much-needed liquidity into the risk-on markets. As usual, bitcoin benefitted. USDT Pumping Bitcoin? The global economic crisis is far from over. S0, the answer to whether or not traders and investors would remain exposed to risk-on assets amidst the Coronavirus pandemic could help give a clear direction to bitcoin. But, according to the whale, nobody is discussing the questions about the bitcoin market’s low liquidity. He even went ahead to say that Tether’s stablecoin USDT artificially inflated the price of bitcoin to lure into the halving narrative. Source: Joe007 But the whale believes that bitcoin’s long-term move remains to the upside, driven by organic demand from both institutional and retail players. The crisis needs to come to halt to help economies reopen, thus creating value, and prompting large and small investors to allocate part of their incomes to buy bitcoin. Photo by Abigail Lynn on Unsplash
Originally from Bitcoinist.com https://ift.tt/2yTMVn1
Ripple extended its rally above the $0.2200 resistance against the US Dollar. XRP price is showing many positive signs and it could continue to rise towards $0.2500 or $0.2600. Ripple price is up close to 10% and it climbed above the $0.2300 level against the US dollar. It tested the $0.2350 resistance and currently consolidating gains. There is a key bullish trend line forming with support near $0.2280 on the hourly chart of the XRP/USD pair (data source from Kraken). The pair remains in a nice uptrend and it could continue to rise towards the $0.2500 resistance level. Ripple Price Breaks Key Hurdle This week, there was a strong uptrend in ripple above the $0.2000 resistance. Yesterday’s XRP price fueled bitcoin and it rallied more than 15% to test the $9,000 resistance level today. XRP price is following a nice uptrend and it recently surged above the $0.2200 and $0.2300 resistance levels. The bulls even pushed the price towards the $0.2350 resistance, with a strong close above the 100 hourly simple moving average. A new monthly high is formed near $0.2356 and the price is currently consolidating gains. An initial support is near the $0.2285 level. It is close to the 23.6% Fib retracement level of the recent surge from the $0.2051 swing low to $0.2356 high. Moreover, there is a key bullish trend line forming with support near $0.2280 on the hourly chart of the XRP/USD pair. If ripple fails to stay above the $0.2280 support level, there could be an extended decline. Ripple Price The next major support is seen near the $0.2200 level or the 50% Fib retracement level of the recent surge from the $0.2051 swing low to $0.2356 high. Any further losses could lead the price towards the $0.2120 support or even 100 hourly simple moving average. More Upsides? Ripple is clearly trading in a strong uptrend above the $0.2280 support area. On the upside, an initial resistance is near the $0.2350 level. If there is a clear break above the $0.2350 resistance and the $0.2356 high, the price could continue to rise towards the $0.2500 resistance. The next major hurdle above $0.2500 is near the $0.2600 level. Technical Indicators Hourly MACD – The MACD for XRP/USD is slowly reducing its current bullish slope. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting lower from the 80 level. Major Support Levels – $0.2280, $0.2200 and $0.2120. Major Resistance Levels – $0.2350, $0.2420 and $0.2500. Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Ethereum is up more than 12% and it broke the $220 resistance against the US Dollar. ETH price is likely to continue higher and it could even test the $240 and $250 levels. Ethereum is surging and it recently broke the $215 and $220 resistance levels. The price is now trading well above the $200 pivot level and the 100-day simple moving average. There was a break above a major bearish trend line with resistance near $200 on the daily chart of ETH/USD (data feed via Kraken). The pair is likely to continue higher towards the $240 and $250 resistance levels. Ethereum Price Primary Target Hit Yesterday, we discussed the chances of a strong rise in Ethereum above the $200 resistance against the US Dollar. ETH price did gain bullish momentum above $200 and surged more than 12%. Bitcoin also rallied more than 15% above $8,000 and $8,500. It sparked more upsides in Ether above the $210 level and the price tested the first bullish target of $220 (as discussed in yesterday’s post). During the rise, there was a break above the 50% Fib retracement level of the last key decrease from the $287 high to $90 swing low. Moreover, there was a break above a major bearish trend line with resistance near $200 on the daily chart of ETH/USD. Ethereum Price Ethereum is now trading nicely in a strong uptrend above the $220 level. An initial resistance on the upside is seen near the $240 level. It is close to the 76.4% Fib retracement level of the last key decrease from the $287 high to $90 swing low. The next key resistance is near the $250 level (a multi-touch zone). If the bulls continue to gain strength, there are high chances of more upsides above the $240 and $250 resistance levels. Chances of a Downside Correction? If Ethereum fails to clear the $240 resistance level, there are slight chances of a downside correction. An initial support is near the $212 level. The first major support is now near the $200 level and the same broken bearish trend line. If the price fails to stay above the key $200 support zone, there is a risk of a larger correction towards $185. Technical Indicators Daily MACD – The MACD for ETH/USD is gaining momentum in the bullish zone. Daily RSI – The RSI for ETH/USD is currently near the overbought levels. Major Support Level – $200 Major Resistance Level – $250 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin popped to fresh quarter highs Wednesday as the US Federal Reserve warned of a “medium-term” economic disaster. The central bank decided to maintain its benchmark lending rates near zero while calling for further stimulus support from Washington. The dovish outlook helped to send all leading assets higher, including the Wall Street index and Gold. Bitcoin was among the biggest gainers Thursday as the Federal Reserve left benchmark lending rates near-zero and hinted at providing further stimulus if necessary. BTCUSD Pops over $9.2K in a Surprising Pre-Halving Rally | Source: TradingView.com, Coinbase The anti-fiat cryptocurrency popped 4.98 percent to hit its seven-week high at $9,233 and maintained those gains further into the day. Its move uphill came even as the Fed painted a gloomier “medium-term” economic outlook led by the fast-spreading Coronavirus pandemic. More Stimulus Chairman Jerome Powell said in a press brief Wednesday that he expects the U.S. economy to shrink further on three factors: the uncertain virus curve, loss of productive capacity caused by social distancing, and the crisis’ global dimension. Meanwhile, the Federal Open Market Committee added that the Fed would act “forcefully, proactively and aggressively” to safeguard the U.S. economy. “The Federal Reserve is committed to using its full range of tools to support the US economy in this challenging time,” it said at the end of its two-day meeting on Wednesday. The central bank kept interest rates near March 15 levels – between 0 and 0.25 percent – and promised to maintain the range until it sees the U.S. economy achieve its “maximum employment and price stability goals.” A Well-Timed Bitcoin Rally The Fed’s dovish policy helped Bitcoin, U.S. equities, and even Gold logging a wild intraday rally. But for Samson Mow, the cryptocurrency had more solid reasons to grow other than artificial inflation caused by the world’s biggest central bank. The CSO of blockchain technology firm Blockstream said Thursday that bitcoin draw higher demand from traders ahead of its mining reward halving on May 12, 2020. The event will send the cryptocurrency’s daily production down from 1,800 BTC to 900 BTC – a complete opposite of what the Fed is doing by printing more US dollar units. Bitcoin and U.S. equities have different bullish catalysts | Source: Samson Mow But the act of pumping bitcoin also led to theories about the market’s liquidity. ZeroHedge’s activist journalist, who works under the pseudonym of Tyler Durden, called bitcoin’s weekly rise a “hilarious cycle” – a textbook definition of an illiquid altcoin. “My hope is that the halving will financially destroy as many Chinese miners as possible and we can actually have a legitimate bull market instead of this pump and dump movie,” Mr. Durden wrote. Photo by Maciej Ruminkiewicz on Unsplash
Originally from Bitcoinist.com https://ift.tt/2YhMMo4
XRP is today’s leading high market cap cryptocurrency, having gained 9% over the last 24-hours. This comes as the rest of the crypto markets continue to move sideways. Analysts have attributed this to a collaboration deal, which sees Japan’s second-largest bank, the Sumitomo Mitsui Financial Group (SMFG) take a stake in an SBI Holdings company. SBI Holdings are a major Ripple partner and Series C investor in the Silicone Valley tech giant. Not only is there speculation that the tie-up will see the utilization of XRP at some future point, but SBI Holdings has also today announced the option for shareholders to receive XRP benefit payments. Japanese Banking Goes Blockchain The Nikkei Asian Review reported on a deal that would see SMFG acquire a 20% stake in SBI Neo Mobile Services, the mobile phone brokerage unit of SBI Holdings. SMFG lacks a significant online presence, while SBI wishes to add face-to-face consultations to their product line up. With that, the move is largely seen as a mutually beneficial tie-up. “The deal will combine the nationwide branch network of SMFG with SBI’s dominant presence in online trading. It is expected to help the partners create products and services that will better cater to millennials.” The wide-ranging capital tie-up will see a focus on developing a ¥100 billion ($930 million) fund to invest in companies that work with digital technology, including fintech, blockchain, and 5G networks. Home page of SBI Neo Mobile. (Source: sbineomobile.co.jp) Shareholders Can Elect to Receive XRP as a Benefit The Japanese stock market welcomed the news. This saw SBI Holdings stock up 4%, during a time when the Nikkei Index is flat. Source: google.com With that, SBI Holdings today announced details of its shareholder benefits plan. The release states shareholders can elect to receive XRP as a benefit payment. Interested parties will receive a coupon code with which to receive tokens. Shareholders who hold at least 100 shares and less than 1,000 as of March 31, 2020, or more than 1,000 if held for less than one year, can choose to receive 95XRP, which is equivalent to around ¥2,000. Whereas shareholders who hold 1,000 or more shares, and have done so for more than one year, can choose to receive 380XRP, which is equivalent to around ¥8,000. All in all, the shareholder benefits offered by SBI Holdings give insight into the future direction of the firm. And it’s clear that the trend is towards digital technologies. Key Resistance Broken The crypto markets have taken this as bullish for XRP. Indeed, the news was enough to take Ripple’s native token through key resistance at the $0.20 level. Currently, XRP is priced at $0.2149. This comes off eight consecutive daily green candles, which culminated in a massive price spike yesterday, taking it through the $0.20 level. XRP daily chart. (Source: tradingview.com) By all accounts, a pullback from current levels is expected, but good support is available at $0.2120. Having said that, all eyes are on Bitcoin, as we wait to see if the pre-halving run-up can be sustained.
Despite the impressive rally Bitcoin has embarked on since March’s lows, there’s been growing uncertainty in the crypto market. Some are fearful that an extended economic recession could send cryptocurrencies tumbling, while others have suggested that BTC is on the verge of an explosive rally, citing the block reward halving. The uncertainty may soon end with a crypto trader reporting that a bullish Bitcoin factor, which has an 85% strike rate and a sample size of 27, is about to reappear on the charts. Highly-Accurate Bitcoin Signal Is About to Appear Responding to the strong rally that has transpired over the past few days, the Ichimoku Cloud — an indicator tracking trends and key levels — “could soon turn fully bullish,” a trader warned. Per the trader, should this happen, there’s a high likelihood Bitcoin will rocket higher in the coming weeks: “1D [Ichimoku Cloud] was fully bullish on BTC 27 times. Study shows Gain if bought on candle close once fully bullish and sold once candle close below Kijun (standard strat): 23 Wins, cum. gain 3,385%, avg gain 147.17% [and] 4 Losses, cum. loss 30.39%, avg loss 7.59%.” Below is a chart shared by the trader. It depicts a small sampling of the times the Ichimoku Cloud turned “fully bullish” for Bitcoin, and highlights how the cryptocurrency performed in the wake of such technical occurrences. As can be seen, from this small portion of BTC’s price history (late-2014 to early-2017), the Ichimoku Cloud crossing bullish has been a strong indicator for follow-throughs to the upside on rallies. Image from @TraderSmokey (Twitter) This means that should the historical strike rate hold up in the current, there’s a high likelihood Bitcoin will continue to rally even higher once it appears. Importantly, the imminence of a bullish Ichimoku Cloud could change should the crypto market crash once again. On-Chain Data Corroborates the Cheery Outlook Data shared by Glassnode, a crypto analytics firm, has corroborated the sentiment that Bitcoin is about to entire into a bull phase. On April 28th, the company reported that the “Bitcoin Short-Term Holder NUPL” metric — an indicator tracking the profitability of short-term cryptocurrency investors and traders — has entered the “hope” zone. According to Glassnode, it’s a signal that has “previously indicate the start of bull markets,” with the metric peaking above this crucial level in late-2015 prior to the 4,000% surge to $20,000, at the start of 2019’s 300% rally, and just earlier this year before BTC hit $10,500: “A key moment to watch: Bitcoin Short Term Holder NUPL has entered the hope zone. Staying above this zone has previously indicated the start of bull markets.” Image from Glassnode Not to mention, per data from Coin Metrics, the number of weekly active addresses on the Bitcoin network recently breached a nine-month high, surmounting levels seen all throughout the late-2019 and early-2020 bear market. This is important as previous upticks in this key metric coincided with the start of bull runs, with the metric rallying higher in early-2017, and exploding higher at the start of 2019. Photo by Tom Sodoge on Unsplash
Originally from Bitcoinist.com https://ift.tt/35dYD86
Bitcoin closed above $8,000 this Wednesday, wiping all its Coronavirus-induced losses from mid-March. The cryptocurrency’s move uphill came ahead of Jerome Powell’s press conference at 1430 ET today. The Federal Reserve chairman is likely to discuss strategies to tame the contracting economy, with investors expecting him to keep the interest rates lower. Bitcoin jumped above $8,000 for the first time in almost two months as investors braced for the Federal Reserve’s views on the health of the U.S. economy. The bitcoin-to-dollar exchanged surged 5.52 percent to top at $8,180 on BitMEX, resuming its uptrend a day after correcting modestly. The pair’s move uphill wiped all the losses incurred on Black Thursday, an event on March 12 that crashed prices by more than 50 percent. BTCUSD is trading above the pre-Black Thursday levels following its move above $8,000 | Source: TradingView, BitMEX The latest hope over the slowing spread of the novel coronavirus pandemic and a decision by some U.S. states to reopen the economy supported the prevailing bitcoin mood. Meanwhile, the upside sentiment also mirrored similar moves in global equities and oil prices this Wednesday that boosted investors’ confidence in risk-on assets. FOMC Update, Powell’s Press Conference Gains all across the global markets came ahead of Jerome Powell’s press meeting at 1430 ET on Wednesday. Investors anticipate that the Federal Reserve chairman would give a detailed outlook on the current health of the U.S. economy, including an overview of the strategies available to the U.S. central bank to safeguard markets against the Coronavirus pandemic. Jonas Goltermann, the senior markets economist at Capital Economics, told WSJ that Powell & team have done everything they can to shield the U.S. economy from the slowdown caused by the virus. But investors want to know about the lengths to which the Fed can go to protect the market – should the condition deteriorate. “The communication challenge is going to be conveying that they will do more if needed, but that doesn’t mean they have to do more right now,” Mr. Goltermann added. Bitcoin reacted positively to the Fed’s intervention so far. The cryptocurrency rebounded shortly after the central bank decided to slash interest rates to near zero, began a bond-buying program, and injected trillions of dollars into the U.S. banking system. Its upside move on Wednesday, therefore, reflected confidence. Traders will now look for cues from Powell’s speech and Fed’s future policy direction. Easing policies could allow them to increase their exposure in the bitcoin market. Bitcoin Halving FOMO The likelihood of bitcoin hitting new highs are increasing also ahead of its mining reward halving in May 2020. The event will reduce the cryptocurrency’s mining rate per 10 minutes from 12.5 BTC to 6.25 BTC. “There is a sudden panic amongst traditional fund managers to place their funds in assets that are protected against the FED printing machine,” noted Ran NeuNer, the founder of Onchain Capital. “Many have enough exposure to Gold and are now looking to Bitcoin. This is what Bitcoin was designed for and I expect an ATH this year.” Photo by Robert Bye on Unsplash Since you’re here… Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Although all altcoins are not yet rallying in tandem, some top crypto assets have been outperforming as of late. Case in point: CoinMarketCap data as of the time of this article’s writing, XRP — the third-largest cryptocurrency by market capitalization — is up 10% in the past 24 hours, outpacing Bitcoin’s relatively mild 0.5% gain. This rally in some of the leading altcoins is unlikely to continue, with crypto firms observing a clear slowdown in on-chain activity for coins like Cardano, Bitcoin Cash, and Chainlink. Sorry Bulls: Top Crypto Assets See On-Chain Activity Slow Over the past few weeks, altcoins across the board have seen impressive rallies as Bitcoin has stagnated in the high-$6,000s and $7,000s. Among the altcoins that have outperformed include Cardano, Chainlink, and Tezos. While Bitcoin tacked on 15%, the cryptocurrencies mentioned, all multi-billion-dollar assets, have experienced gains of 45% to 65%. Many of these moves were predicated on fundamental developments pertaining to the projects, but on-chain and market data shows that the chance of a drop is growing. IntoTheBlock — a blockchain intelligence firm — found that a number of its proprietary signals are “mostly bearish” for some leading crypto assets. Below is the firm’s dashboard for Cardano as of April 28th. It indicates that the “Large Transactions” — which tracks multi-million-dollar transactions on the blockchain” — and “Bid-Ask Volume Imbalance” — the skew of a market’s order books — suggest bearish price action is on the horizon, while most of the other signals are mostly trending neutral. Data from IntoTheBlock Similar trends have been spotted for Bitcoin Cash and Chainlink, which both registered as “mostly bearish” by IntoTheBlock. All Altcoins Could Drop, Analyst Fears It’s important to note that the abovementioned signals only suggest that a short-term altcoin correction is imminent, but some fear that this underperformance could be a longer-term trend for the crypto market as a whole. An analyst at crypto research firm Blockfyre recently remarked that he intends on reducing his exposure to altcoins because he believes Bitcoin’s block reward reduction will cause volatility that results in altcoins “getting rekt.” The analyst continued that from how he sees it, altcoins are always a “game of musical chairs” as the reasons they are rallying, Pentoshi explained, are all “red flags,” not fundamental developments: “The reason the alt pumps are unconvincing is because they have followed the same patterns. IEO’s, Interoperability, privacy coins moving together. It’s coordinated as it has been the last 3 years instead of all ships rising together.” This skepticism has been echoed by others pointing to how the fundamental narratives in the crypto industry are all focused on Bitcoin — a bellwether for the rest of the industry, especially in such uncertain macroeconomic and geopolitical times. Photo by nikko macaspac on Unsplash
Originally from Bitcoinist.com https://ift.tt/2VQvZHj
There is no doubt Bitcoin has been adversely affected by the outbreak of COVID-19. Crypto assets, like many other mainstream asset classes, experienced a large downturn in the middle of March. It was a move in global markets based on fears that the coronavirus lockdowns could cause a widespread economic contraction, maybe even a full-blown recession. Considering the crash that transpired in March, many have rushed to the conclusion that a prolonged lockdown would only harm Bitcoin. Yet according to Kelvin Koh — a former Goldman Sachs partner and current partner at The Spartan Group — the ongoing crisis will only increase the odds that BTC experiences “another exponential price spike.” This Crisis “Dramatically Increases” the Odds of a Bitcoin Bull Run Businesses based on offering digital goods and services have emerged as winners amid the ongoing outbreak. As airlines, restaurants, and a myriad of other industries have sunk, technology companies have emerged as decisive winners. A perfect case in point to this is Amazon, whose stock has just established a new all-time high amid what the International Monetary Fund considers to be the worst economic downturn since the Great Depression. Below is a chart depicting this performance. The key point of the chart is that the $2,400 price point Amazon just tapped, a whole 44% from the lows, is a new all-time high. Chart from TradingView.com The outperformance of digital businesses amid the crisis, Kelvin Koh wrote in a recent Twitter thread, is a factor that is only going to improve the prospects of Bitcoin and crypto-based technologies moving forward. “One thing was made clear during the pandemic. Digital businesses were clear winners in this crisis and a world scarred by it will accelerate towards digitization, which bodes well for crypto longer term,” the analyst wrote on the subject. This is only one such trend catalyzed by the coronavirus crisis that will benefit Bitcoin, according to the investor. To respond to the underperformance of most industries like airlines and agriculture, governments have been forced to inject trillions of dollars worth of stimulus into the economy. It’s a move that has been deemed necessary by investors, but one that Koh remarked will act as a boon for the Bitcoin market. “Some of the trillions of dollars of stimulus from central banks will inevitably flow into crypto assets,” he explained. This confluence of the two fundamental factors led Koh to the following conclusion: the crisis has “dramatically increased the odds” that Bitcoin undergoes “another exponential price spike” in a way that causes the entire crypto market to rally. Don’t Get Left Behind The trends of global digitization and the debasement of fiat money are longer-term narratives for Bitcoin, to be sure, but Koh made it clear that investors need to keep their heads on a swivel. Concluding his thread, the former institutional investor warned that once the crypto market starts to move, it will move quickly. This relates to the concept of reflexivity in financial markets, which states that markets naturally trend in one direction or the other due to investor psychology. As he explained: “The steady cash inflow into crypto exchanges and growing cash balances is the clearest signal of this bullish appetite. It’s hard to time markets perfectly, especially for crypto. When crypto prices move, they move quickly. Don’t get left behind.” Photo by Daniel Mayovskiy on Unsplash
Encryption makes the digital world work. It consists of a few elegant math equations that scramble data before being sent over the internet where prying eyes could otherwise intercept it, read it, and manipulate it. Encryption is the reason everything from financial transactions to state secrets get passed around the internet nearly instantaneously, unlocking massive amounts of innovation, wealth, and prosperity as a result.
Bitcoin volumes surged dramatically after Black Thursday, a March 12 event that saw the price crashing by more than 50 percent. The average volume recorded ahead of Bitcoin’s mining reward halving came out higher than pre-Black Thursday levels. The statistics show better market strength, hinting further price gains in the future. Trading activity for bitcoin has picked momentum as the cryptocurrency approaches its mining reward halving in May 2020. Coinbase, Binance, and other crypto exchanges executed $5.6 billion worth of bitcoin trades on average since March 16, 2020, according to data provided by Bitcoinity. The huge uptrend in trading activity followed Black Thursday, a mid-March event that saw traders crashing bitcoin from $7,969 to $3,858. Bitcoin volume weekly data since October 2019 | Source: Bitcoinity Before the dump on March 12-13, crypto exchanges had reported $3.96 billion worth of bitcoin trade volume on average between January 1, 2020, and March 11, 2020. In the week that ensued the bitcoin price crash, volume peaked $9.2 billion on average. A Better Uptrend The Black Thursday event separated two kinds of bitcoin’s uptrend from each other. Before the crash, the cryptocurrency was rising against the backdrop of escalating geopolitical tensions between the U.S. and Iran. Investors allegedly treated bitcoin as their digital safe-haven against inflation, an economic consequence of big-scale wars. But after the Black Thursday crash, investors’ focus was shifting to a more menacing global catalyst: the fast-spreading novel coronavirus that led nations to halt economic activities to promote social distancing. While fears led global stocks and commodities down to record lows, the newfound bottoms also created ‘buying-the-dip’ opportunities. BTCUSD recovered wholly after the Black Thursday crash | Source: CryptoWhale Bitcoin surged as a result. The cryptocurrency recovered all the losses it had incurred during the Black Thursday crash, eventually closing above $7,800 this Wednesday. The latest gains accompanied higher volumes than what bitcoin had delivered during its first-quarter uptrend. Bitcoin Halving Hype As price recovers wholly from the Black Thursday crash, bitcoin’s bullish bias in the second quarter is gathering strength. That is mostly due to the cryptocurrency mining reward halving on May 12, 2020, an event that would slash the supply rate from 1,800 BTC per day to 900 BTC per day. Traders anticipate bitcoin to deliver a bull run after the halving. Data obtained by Glassnode shows that they are looking to hold BTC for the long-term instead of trading it for short-term profits. The sentiment should ideally drive trade volume and volatility lower but data aggregator Messari sees a rally, nevertheless. “As we look towards the impending issuance reduction, trading activity feels somewhat subdued after the mania around Black Thursday, one of bitcoin’s worst days in history,” they said in a blog post. “But with two weeks left until the halving, there’s still time for markets to reveal their animal spirits.” Photo by Edu Lauton on Unsplash
Originally from Bitcoinist.com https://ift.tt/2KL3JiW
Ripple is up more than 10% and it broke the key $0.2000 resistance area against the US Dollar. XRP price is showing positive signs, suggesting a similar breakout in bitcoin above $8,000. Ripple price succeeded in clearing a major resistance near $0.2000 against the US dollar. There was a sharp upward move above the $0.2120 and $0.2150 levels. To start the recent rally, a major contracting triangle with resistance near $0.2020 was breached on the hourly chart of the XRP/USD pair (data source from Kraken). The pair traded to a new monthly high at $0.2185 and it is currently consolidating gains. Ripple Price Rallies 10% In the past few days, ripple made a couple of attempts to clear the $0.2000 resistance. XRP price formed a strong support base above $0.1920 and finally managed to surge above the $0.2000 hurdle (as discussed in yesterday’s analysis). To start the recent rally, a major contracting triangle with resistance near $0.2020 was breached on the hourly chart of the XRP/USD pair. The pair broke many hurdles on the way up, including $0.2120 and settled nicely above the 100 hourly simple moving average. Ripple Price A similar pattern is forming for bitcoin and BTC could surge it is breaks the $8,000 resistance. Ripple traded to a new monthly high at $0.2185 and it is currently consolidating gains. It is testing the $0.2150 level and the 23.6% Fib retracement level of the recent rally from the $0.2054 swing low to $0.2185 high. The first major support is near the $0.2120 and $0.2110 level. The 50% Fib retracement level of the recent rally from the $0.2054 swing low to $0.2185 high is also near $0.2119. The main uptrend support is now forming near the $0.2100 level (the recent breakout zone). Any further losses might lead the price back towards the $0.2000 pivot level in the coming sessions. More Upsides? Ripple is clearly correcting lower from the $0.2185 high. However, the price remains well supported on the downside near $0.2120. On the upside, the 0.2175 and $0.2180 levels are initial hurdles. The main resistance is near the $0.2200 level, above which the bulls are likely to aim another 5%-8% rise. Technical Indicators Hourly MACD – The MACD for XRP/USD is slowly moving into the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently correcting lower from the 80 level. Major Support Levels – $0.2120, $0.2110 and $0.2100. Major Resistance Levels – $0.2175, $0.2180 and $0.2200. Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.
Bitcoin closed above a crucial resistance area Wednesday. The ceiling was instrumental in beginning a new bull run back in 2019, wherein the price surged by 239%. Traders’ optimism for bitcoin has peaked ahead of its mining reward halving in May 2020. Bitcoin resumed its winning streak Wednesday as its price edged further closer towards $8,000. The bitcoin-to-dollar exchange rate rose 1.53 percent to $7,878 a token, a move that brought the pair above its 20-weekly exponential moving average. The price curve was instrumental in sending bitcoin up by 239 percent back in 2019 – from $4,051 to $13,868 on Coinbase. History of Bitcoin’s 20-WMA Breakouts | Source: TradingView.com A break above the 20-WMA in January 2020 also led the prices up by 28.62 percent to above $10,000. Nevertheless, bitcoin failed to extend the rally as the coronavirus-induced fears led investors to panic-sell their crypto positions in March 2020. But the cryptocurrency’s break above the 20-WMA this time comes ahead of its mining reward halving. The event would reduce bitcoin’s daily supply output from 1,800 BTC to 900 BTC. The last two halvings resulted in exponential price rallies. Traders anticipate the third event would lead to a bitcoin price boom. “We are now two weeks from the anticipated BTC halving, and levels of discussion have expectedly risen with the price,” wrote crypto researcher Santiment. “Interest levels [on social media] are mostly correlating with positive momentum, meaning crowd consensus is widely optimistic about this.” Supportive Fractals Breaking above 20-WMA not always resulted in exponential price gains. In 2018, when bitcoin was undergoing one of its longest bearish corrections, it broke above the curve on nine weekly occasions but failed every time to hold it as support. But, at the same time, there was one additional fractal at play. BTCUSD 50-WMA resistance | Source: TradingView.com, Coinbase Bitcoin was trading above its 50-weekly moving average, or 50-WMA, on 7 out of 9 occasions. The cryptocurrency used the long-term wave as its support to retest 2o-WMA but failed to pierce above it for too long. Nevertheless, 50-WMA flipped to become Resistance after the price closed below it in May 2018. It left bitcoin under the shadow of two strong resistance waves. So even if the price broke above 20-WMA, it had to pullback after testing 50-WMA. Bitcoin’s latest price action mirrors the same 2018 scenario. The cryptocurrency has broken above 20-WMA but cannot confirm a bull run unless it extends its move beyond 50-WMA. Bitcoin to $9,000? The doubtful scenario has not deterred bitcoin from registering short-term gains. The cryptocurrency could still rise towards $9,000 to test 50-WMA for a breakout – the wave is near $8,700 as on April 29. On the other hand, a real upside break could lead bitcoin towards $10,000-$11,000 resistance, especially amidst the halving FOMO. That is evident with the rising number of accumulators ahead of halving, as reported by data analyst Glassnode. “The number of BTC whales continues to grow, hitting 2-year highs – the last time we saw this many during an accumulation phase was in 2016,” said the firm. “This becomes interesting when we compare it with the last Bitcoin halving.” Photo by Kelli McClintock on Unsplash
Originally from Bitcoinist.com https://ift.tt/2KGXigu
Ethereum is trading in a bullish zone above the $195 level against the US Dollar. ETH will most likely clear the $200 resistance for a run towards the $220 level. Ethereum is showing a lot of positive signs above the $195 support zone. The price is currently attempting an upside break above the $200 resistance area. There was a break above a major contracting triangle with resistance near $197 on the hourly chart of ETH/USD (data feed via Kraken). The pair could surge above the $200 barrier and test the next hurdle at $220. Ethereum Price Likely to Rally Further In the past few sessions, Ethereum price remained in a broad range above the $190 level against the US Dollar. ETH bears made a couple of attempts to push the price below the $190 and $188 support levels, but they failed. The last swing low was formed near $188 before the price regained bullish momentum. It climbed back above the $190 level and the 100 hourly simple moving average. The bulls were able to clear the $195 hurdle for a trend reversal. Moreover, there was a break above a major contracting triangle with resistance near $197 on the hourly chart of ETH/USD. The pair even surpassed the 76.4% Fib retracement level of the downward move from the $200 swing high to $188 low. Ethereum Price Ethereum is now trading near the $200 resistance and attempting an upside break. If the bulls gain strength, the price is likely to continue higher. An immediate resistance is near the $208 level since it is close to the 1.236 Fib extension level of the downward move from the $200 swing high to $188 low. Any further gains above $208 could lead the price towards the next key resistance near the $220 level in the near term. An intermediate resistance for Ether may perhaps be $212. Dips Supported If Ethereum continues to struggle near the $200 resistance, there could be a downside correction. An initial support is near the $195 level and the triangle lower trend line. The next major support is near the $193 level and the 100 hourly SMA. To start a substantial decline, the bears need a clear break below the $190 and $188 support levels. Technical Indicators Hourly MACD – The MACD for ETH/USD is currently gaining strength in the bullish zone. Hourly RSI – The RSI for ETH/USD is now well above the 55 level. Major Support Level – $193 Major Resistance Level – $200 Image from unsplash
The number three ranked cryptocurrency by market cap, XRP, exploded this morning, rising more than 6 percent in less than two hours of intraday trading. Will the Ripple rally continue? And what are the driving forces responsible for today’s surging XRP prices? XRP Finally Rips, Growing Over 6 Percent in Two Hours Flat It’s difficult to ignore just how poorly XRP has performed for cryptocurrency investors since the world first caught wind of the asset in late 2017 during the crypto hype bubble. Compared to nearly every other altcoin and Bitcoin, XRP has provided the worst ROI over the last few years of a bear market. But after two and a half years of selling, XRP may finally be staging its recovery rally. XRP this morning had an explosive price surge, rising from $0.19749 to $0.21075 – or just under a 7 percent rally. Key factors behind the strong rally include multiple TD 9 buy signals stacking across many high timeframes, on both the XRPUSD and XRPBTC trading pairs. Related Reading | XRP Buy Signals Stacking on Multiple Timeframes May Spark Ripple Recovery XRP also reclaimed a critical trendline recently, which could be in part responsible for the additional push. The rally could be the start of a powerful Ripple fractal nearing the next phase of the pattern: a further rally upward bringing investors a few hundred percent returns. Although market conditions may appear bleak, stimulus money could be making its way into what is one of the lowest cost cryptocurrencies per token in the top ten crypto assets by market cap. Newcomers buying crypto their first time may opt for XRP, over Bitcoin at over $7,000 a coin. Ripple Ready to Sustainable Rally, Thousand Percent Gains Not Unrealistic If the Ripple rally can sustain, the crypto market may be in for a shocking surprise. According to a fractal that has formed on XRP price charts, the altcoin could see a major boost in the days and weeks ahead. The fractal points to XRP holding an important trendline after multiple attempts were made to push the asset back below. Once the trend line was confirmed as support, Ripple rallied by over 800 percent. Related Reading | Powerful XRP Fractal Points To Redemption Rally, Start of New Uptrend After a short pullback, it rocketed another 900 percent. In the final move up, XRP gained another 1000 percent, taking the asset to its all-time high at over $3.50. The asset became the poster child for crypto investing success alongside Bitcoin and Ethereum in late 2017. It even made an appearance in a segment on CNBC, educating investors on how to buy the then hyped altcoin. That as the signal the top was in. Could this latest rally be the signal that Ripple has bottomed? Featured image from Pixabay
Over the past few weeks, Ethereum has been subject to a trend few expected: stablecoins — cryptocurrencies tied to the value of a “stable” asset external to the industry — have flocked to the blockchain. Stablecoins have become a trend so relegated to the blockchain that there is now $5.6 billion worth of Tether’s USDT stablecoin issued on Ethereum, as opposed to $1.3 billion on Bitcoin’s Omni and $800 million on Tron. Unfortunately, the unquestioned primacy Ethereum has in the stablecoin space, especially with assets like USDT, USD Coin, and the Paxos Dollar, could present a long-term risk to the value of ETH. Ethereum Continues to Embrace Tether On Monday, Ethereum users continued to embrace Tether, with a vast majority of startups and investors with a stake in Compound, a leading DeFi protocol, voting in support of adding USDT to the protocol. It’s a move that once again signals that stablecoins have become core to Ethereum. Still two days left, but looks Compound will be adding supply/borrow support for Tether soon Felt like the DeFi community was initially hostile towards Tether and is now embracing it (for better or worse ) as more $USDT moves from Omni to Ethereumhttps://t.co/jy9i0yqGGD pic.twitter.com/8nncugPCqL — Rob "Crypto Bobby" Paone (@crypto_bobby) April 27, 2020 Stablecoins have become so important to Ethereum that per data from Messari, due to transactions of USDT and other dollar-pegged tokens, the total value of transactions taking place on Ethereum has begun to rival that of Bitcoin, despite the former having around 15% of the value of the latter. As Ryan Sean Adams, founder of Mythos Capital explained: “In Feb 2016 the reserve asset of Ethereum traded at $2. If I told you then that 4 yrs later this network would host over $9b in stablecoins & that’s just one of its promising use cases you have been blown away. You would have backed up the truck. That’s how I feel about ETH today.” While Adams’ comment makes it clear that Ether investors are embracing stablecoins as a key use case of the blockchain that will bolster ETH’s value, the sentiment is mounting that the opposite is true. Here’s How It’s Dangerous According to Ryan Watkins — an analyst at crypto research firm Messari — the presence of Tether (and other stablecoins) on the blockchain poses a long-term “threat” to ETH’s value. Watkins attributed this thought to the fact that if stablecoins continue to be the primary value transfer mechanism on the network, Ethereum’s monetary premium, its position as a potential form of money, may devolve into its “naive early branding of digital oil” and lose much of its value as a result. Indeed, many critics of Bitcoin and its ilk say that the primary thing holding back these assets from becoming money, from becoming adopted, is their high levels of volatility. The introduction of assets that have the same decentralized, global, and digital characteristics as cryptocurrencies but are also stable, in theory, have more potential to be more easily adopted than their volatile counterparts. Photo by James Pond on Unsplash
Originally from Bitcoinist.com https://ift.tt/2W99YCt
Growing up on the Wall Street Ariels Distinct Approach to Crypto: Interview with Ariel Ling CEO of Bithumb Futures
NewsBTC held a conversation with Ariel Ling, CEO of Bithumb Futures. Ariel previously held senior management positions over the past 20 years at prominent traditional financial institutions like KPMG, Barclays, and most recently, Deutsche Bank. During the course of the interview, we explored Ariel’s transition from traditional finance, marked by her illustrious 20-year career at Wall Street, to crypto, the early-stage ups and downs as she launched Bithumb Futures, as well as her grand vision for the company. Q: To get started, could you share how your upbringing/background influenced your entry into the financial sector, and segue into crypto? A: Firstly, I would like to express my gratitude to the audience for this opportunity. I come from an academic family in China with both parents in the educational field. So, I have always valued education and the power of learning from an early age. In the mid-1990s, I came to New York City to pursue my MBA in Finance at New York University. I fell in love with the dynamic New York City that never sleeps and began my professional career on Wall Street in 1999. Over the past 20 years, financial markets have navigated through multiple credit and equity cycles and weathered the storms of several global crises, which has definitely prepared me very well for the more volatile crypto market. With broader adoption of key cryptocurrency like Bitcoin as a new asset class, the digital asset industry has gradually evolved into a subset of overall capital markets with similar economic functions of providing blockchain tech firms with primary market fundraising and supporting investors with their investment needs through secondary market trading. As a result, more and more institutional players and professional traders like myself and our team are transitioning into this new space, bringing along our deep financial expertise, quality standards, and solid professionalism from traditional finance. I see tremendous learning and growth opportunities in both the blockchain industry and crypto market where I can leverage my management experience and help to address some inefficiencies in this still nascent industry. Early in 2018, I made a smooth transition when my long-time friend and ex-Barclays colleague, Dr. George Cao asked me to co-found the BitMax.io with him as the COO. Now I am really excited about leading a talented and driven team to build a top global derivative digital asset trading platform! Q: Bithumb brand is well known within the crypto industry since the exchange is one of the largest exchanges in the world. How did your platform get access to the usage of the Bithumb brand? A: Right. Bithumb is very well respected within the crypto industry with its early market entrant and proven business model, which is why we considered using Bithumb’s brand from the planning stage of a business launch. Given my background working for institutions with long, I usually see strong institutional brand positioning as part of solid foundation of starting a new venture. There are new crypto exchanges coming up every day, but crypto exchange that provides derivatives products must have a deep understanding of financial products and must have professional technical knowledge as well. As part of their due diligence process, we shared our core team background and platform prototype as well as the legal and operational setup of the business. Finally, we were able to receive their approval to license the Bithumb brand for usage on our platform. Q: How has the market responded to the Grand Launch in March? A: With recent volatility spike-up across both crypto and traditional capital markets, the timing of our platform launch was ideal. For any users who want to either hedge volatility risks or trade on momentum in this market condition, we want to offer a robust and easy-to-use trading platform where they can select the desired direction (long/short) and leverage (up to 100x) based on their trading strategies and risk management needs. We were fairly optimistic, but still didn’t anticipate the overwhelming response from users to the point that we had to wrap up our Grand Launch promotion two weeks ahead of the original schedule. Over 30,000 customers registered during the past month. Couple of days ago, the platform reached $10 million in daily trade volume, a key launch milestone on our roadmap. Q: In light of the current COVID-19 situation, how has the Bithumb Futures team responded? A: The safety and health of our team members and partners are always one of our top management priorities, even more so during the current unprecedented situation. We’ve asked our teams to work remotely, which isn’t too difficult for our developers who are used to this common setup in the Fintech industry. However, since our teams are spread across multiple global locations, we have definitely increased the frequency of calls and video conferences for consistent collaboration and timely rollout of new products and features. Those virtual meetings allow us to frequently check up on one another, and bring all of us together in a closer and stronger team setting during this challenging time. Q: What features differentiate Bithumb Futures from other derivative exchanges? A: Reliability and credibility have been the key differentiating factors for us from Day 1. With our strong traditional finance background, we have been hiring developers with many years of Wall Street experience in both quant trading and infrastructure development. We set high-performance standards for our derivative trading platform, as we are benchmarking against similar trading products from those leading, global investment banks. With a relentless focus on service quality and system reliability, for the time being, we have intentionally limited our product offering to one product – BTC/USDT perpetual contract, settled in USDT with up to 100x leverage. In addition, for the secure custody of users’ digital assets, 100% of deposited coins are held in access-controlled cold storage. With a customer-first mentality, we have built-in several easy-to-use functionalities in the system design, such as the flexible cross-asset collateral management mechanism where users can post USDT, PAX, USDC, BTC, and ETH as margin and increase buying or selling power for potentially higher returns. For customer convenience, we offer free, one-click conversion service to swap BTC or ETH to USDT, and vice versa. Plus, if any users have any questions or issues, our customer support professionals provide multilingual dedicated support 24/7, which is very rare in this industry. Q: Could you share your plans for Bithumb Futures for the remainder of the year, as well as the grand vision of the company in the hyper-competitive industry? A: In the short-term, we will continue working on the optimization and addition of various user-driven functionalities in order to drive user acquisition and enhance user experience on the platform. Then, based upon the market development and user needs, we will expand the product offering to other asset classes and product types to further increase trading volume. Building out our global team is another key priority, especially in the Development, Marketing and Customer Support functions where we are constantly looking for smart and driven professionals to join us. From a customer marketing perspective, more trading events and promotions are planned every month. At the moment, we already closed out the Grand launch events after reaching the quota of 30,000 just within the first five days upon the launch. We are still running our New registration and deposit event started from the 17th of April together with the Referral program where users can receive up to 40% of the trading fees incurred by the referred customers. In the long run, the growth of our platform will be closely aligned with the overall market growth. Derivative trading has been gaining a lot momentum with the highly volatility nature of global crypto market. Building on our core strength of the financial product, trading system design, and customer-first mindset, I am confident that we can grow our institutional-grade trading platform to be one of the top-tier derivative exchanges that consistently meet dynamic customer needs and ultimately drive the crypto market development.
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