Category Archives: Cryptocurrency

Bitcoin price: Cryptocurrency expert says he is STILL bullish on bitcoin for THIS reason

Please share this article:

Bitcoin expert Tom Lee has said he believes the year-end price of will be $15,000, cut from the £25,000 target set earlier in the year.

Despite nose-diving prices, Mr Lee said bitcoin is likely to pick up if there is mass adoption of the cryptocurrency.

The Wall Street strategist told CNBC on Tuesday: “There’s a few things that could happen that could drive that. But this past few days has definitely been a negative development because we are talking about breaking to the downside of momentum.”

When asked what the “true downside” of bitcoin is, Mr Lee said: “I think that technicals, especially in a bear market, mean that price levels can retrace beyond like what you think are fair value.”

He added: “I think that digital assets are going to be relevant in a world where growth is increasingly digital.

“So, to me, bitcoin is a real bet on a project where we have 50 million wallets. There is 5 billion visa cards. So, I think the runway is really adoption in the future.”

On Monday, bitcoin was down about 21 percent on November’s high and around 70 percent down on its January 6 peak of $17,300.

The expert explained the recent decline and said: “I think Bitcoin is not necessarily a value asset. So, as growth, stocks and tech and FAANG kind of come under pressure it is going to hurt bitcoin.”

He added: “Do I think bitcoin as a long-term fundamental story is broken? I don’t think so. I mean, price at the moment isn’t confirming fundamentals.”

Bitcoin price decreased to $4,412.33 at 17:15 (GMT) on Wednesday, according to CoinDesk. It saw its highest value before Christmas when it reached the monumental price of just under $20,000.

Other cryptocurrencies have also declined, with the BTC’s rivals including Ether, Litecoin and XRP also joining in the slump.

This means digital assets have lost close to $700billion of market value since January.

The drop in bitcoin’s market performance marks the lowest BTC price since October 18, 2017.

Neil Wilson, the chief market analyst at Markets.com said: “The crypto bloodbath continues.

“Things looks like they only get worse from here. Where is the incentive to buy? It does rather look like the bottom is coming out of this market.”

The cryptocurrency has faced criticism by banks and finance experts, with Banking giant Morgan Stanley likening the current market climate of bitcoin to the dot-com bubble that, during its most “exuberant” period rose by 250 to 280 percent.

Morgan Stanley strategist, Sheena Shah, stated that the similar behaviour between dot-com and Bitcoin could mean history is repeating itself and the cryptocurrency could soon crash.

Bank of England Governor Mark Carney also this year said it is a “privilege” to be part of the financial system and “responsibilities come with those privileges”.

Mr Carney added: “The best of the cryptocurrencies, I would suggest, will gravitate to the best of the exchanges if they were regulated. And others will fall by the wayside.

“In the end, it is not just about market regulation, part of this is about any money laundering, terrorism financing, other elicit activities.”

Please share this article:

Amended Suit Against Coinbase Details Bitcoin Cash Insider Trading Claims

Please share this article:

A new amended class action complaint has been filed against Coinbase, providing more detail on how insiders allegedly profited from the cryptocurrency exchange’s rollout of bitcoin cash last December.

The document, filed Nov. 20 with the U.S. District Court for the Northern District of California, outlines why the plaintiffs believe Coinbase “made false and deceptive statements” about its rollout of the bitcoin fork; how the exchange allegedly caused bitcoin cash’s price to spike while simultaneously depressing bitcoin’s price; and how insiders who knew Coinbase would list bitcoin cash were able to allegedly buy and sell the token before other customers.

The complaint explained:

“As a consequence of this scheme, the Individual Defendants and Coinbase enabled Coinbase to earn significant fees from the trades of its customers, from which Coinbase earned a spread over an inflated price for BCH, and to avoid a ‘run’ on the Company by sellers anxious to take advantage of the inflated price, by closing down trading within minutes of the Launch to all except certain insiders who were positioned to and did sell BCH at inflated prices during the Launch.”

Tuesday’s filing comes just under a month after a federal judge initially dismissed plaintiff Jeffrey Berk’s original suit. At the time, Judge Vince Chhabria stated that it was unclear what Berk’s legal basis was, what he believed Coinbase should have done or how the rollout could have gone more smoothly.

As such, the amended complaint alleges that the rollout failed to abide by the token listing standards on GDAX (now Coinbase Pro). Further, while Coinbase said it would let investors know ahead of time when it would permit bitcoin cash withdrawals, it instead opened withdrawals without warning, the suit claims.

When bitcoin cash was listed, only purchase orders were permitted on the platform, causing the price to spike, the plaintiffs allege.

The plaintiffs are seeking damages and restitution, in an amount to be determined at trial, as well as the costs incurred during the course of the lawsuit.

The document concludes by demanding a jury trial on the issues laid out.

While the amended complaint was originally due within 21 days of the previous order – Nov. 13 – the plaintiffs and defendants agreed to an extension, allowing the plaintiffs to file the new document on Nov. 20.

Moving forward, Coinbase must provide a response by Dec. 20, and while both parties will have an opportunity to file another response each, a hearing has been scheduled for Jan. 31, 2019.

An attorney for the plaintiffs did not immediately respond to a request for comment.

Coinbase declined to comment.

Read the full amended complaint here:

Second Amended Class Action… by on Scribd

Coinbase CEO Brian Armstrong image via YouTube

Please share this article:

Tom Lee Sticks by His $15,000 Bitcoin (BTC) Price Prediction Despite Falling Market

Please share this article:

Tom Lee, the long-standing Wall Street crypto bull, is sticking to his $15,000 year-end price prediction for Bitcoin (BTC). The Fundstrat Global Advisor voiced his prediction on CNBC’s ‘Squawk Box’ yesterday.

Tom Lee and Bitcoin (BTC)

Bitcoin just recently fell to its lowest levels in more than a year yesterday, but Lee remains convinced. Originally, Lee cut his Bitcoin year-end prediction by $10,000—from $25,000 to $15,000.

“Days like this, it does make me wonder,” said Lee to CNBC. “These past few days have definitely been a negative development.”

The Fundstrat advisor contends that more oversight from US regulators and institutional involvement could push the prices of BTC up. Lee told CNBC that the upcoming launch of Bakkt, the digital assets platform run by the New York Stock Exchange, could peak investor interest as it is set to launch at the end of January 2019. Often, digital currencies see a ‘boost’ during a run-up to a major product launch.

>> Bakkt Looks for Support for Its Next Futures Contract

Elaborating more on his US regulation comment, Lee explained:

“Once we have that [regulatory clarity], I think, institutions will feel more comfortable in making bets.”

Lee isn’t the only one that remains bullish on cryptocurrency. Just recently, the Netherlands-based KPMG released another bull report on cryptocurrency.

Bitcoin Downfall of 2018

From its peak in early January 2018, the total cryptocurrency market has fallen over $600 billion USD. Uneducated investors flooded the cryptocurrency market around Thanksgiving of last year when the market remained consistently green for nearly 6-8 weeks. Around Christmas, the market took a stagnant turn, only to hit its record peak in the first week of January.

When the market corrected after its peak, new crypto investors began panic selling. Many educated investors know correction in any market is inevitable, but those new to investing did not. Thus, the widespread dump of cryptocurrencies.

Now, only those that truly believe in the power of Bitcoin and the blockchain remain!

Featured Image: Depositphotos/© Elnur_

Please share this article:

Top Coins Trading in The Green After Major Drop-Off Yesterday

Please share this article:

Wednesday, Nov. 21: It seems as if the recent drop-off in markets has slowed, with almost all the top 20 cryptocurrencies seeing green today.

Market visualization from Coin360

Bitcoin’s (BTC) losses yesterday totalled more than 15 percent, though the coin has managed to bounce back into the green today, up 3.12 percent on the day and trading at around $4,499 at press time. The leading cryptocurrency is down over 21 percent on its weekly chart.

Yesterday, Wall Street crypto bull Tom Lee reiterated his recently reduced year-end price prediction of $15,000 for Bitcoin, despite the recent market crash. While remaining confident in a year-end rally, Lee admitted that the markets have “certainly” seen a “negative development,” which signals a “downside of the momentum.”

Bitcoin 7-day price chart. Source: Cointelegraph Bitcoin Price Index

Bitcoin 7-day price chart. Source: Cointelegraph Bitcoin Price Index

The second largest cryptocurrency by market capitalization, Ripple (XRP), is up 0.80 percent over the last 24 hours and trading at $0.439. The altcoin’s market cap is around $17.8 billion, while its weekly high point was around $20.8 billion on Nov. 18, according to CoinMarketCap.

XRP daily price chart. Source: CoinMarketCap

XRP daily price chart. Source: CoinMarketCap

Ethereum (ETH) is up 2.19 percent on the day and is trading at $134.46 at press time. The coin’s lowest price point on the day was $126.30.

Ethereum 7-day price chart. Source: Cointelegraph Ethereum Price Index

Ethereum 7-day price chart. Source: Cointelegraph Ethereum Price Index

Bitcoin Cash (BCH) is down the most among the top twenty coins this week, having lost over 40 percent in the seven-day period. On the day, the coin is up a modest 2.67 percent, trading at $231.97 at press time.

Among the top 20 cryptocurrencies, only Zcash (XEC), and Tezos (XTZ) are in the red, down by 0.36 and 3.79 percent on the day, respectively, according to CoinMarketCap.

The total market capitalization of all cryptocurrencies is around $148.5 billion, while its weekly high point was around $189 billion on Nov. 15. As of press time, daily trade volume amounts to almost $18 billion, while the number of cryptocurrencies listed on CoinMarketCap has decreased to 2,071.

Total market capitalization 7-day chart. Source: CoinMarketCap

Total market capitalization 7-day chart. Source: CoinMarketCap

Earlier today, Cointelegraph reported that the recent cryptocurrency market crash has eased pressure on the U.K.’s financial regulator to introduce hasty new rules for the sector. Gillian Dorner, deputy director for financial services at Britain’s finance ministry, reportedly said that “we want to take the time to look at that in a bit more depth and make sure we take a proportionate approach.”

British regulators are reportedly analyzing over 2,000 crypto assets to see whether they can be regulated under existing rules before considering whether reform might be necessary.

Also today, Spencer Bogart, a partner at the venture capital firm Blockchain Capital, said he believes that crypto opportunities are “still gigantic” despite the current bear market, pointing out the critical role of “programmable money,” which is supposed to gain even more popularity over time.

Please share this article:

5 Reasons Cryptocurrency Prices Are Plunging Again

Please share this article:

SAN FRANCISCO — The news on Wall Street this week has been bleak: sharp declines, fears of a bear market and high-flying technology stocks that suddenly took a tumble.

Traditional stock investors may be taking a beating, but they should be glad they didn’t put their money in cryptocurrencies. As of Wednesday, the price of a Bitcoin had fallen about 25 percent in a week and was down more than 75 percent from its peak in December.

Other digital tokens have fallen even more sharply in value.

The latest declines are occurring almost a year after cryptocurrency markets, fueled by a rush of new, wealthy investors, went into overdrive. There are several factors behind the collapse in prices, with many of them the flip side of what drew people to cryptocurrencies in the first place.

Relying on unregulated infrastructure and exchanges is risky.

Most cryptocurrency trading happens outside the United States on exchanges with little or no regulatory oversight. That allowed investors to pile in with abandon, but the inherent dangers have long been clear.

This year, researchers at the University of Texas published evidence suggesting that one of the largest exchanges, Bitfinex, had helped create a proprietary cryptocurrency, Tether, that was used to artificially pump up the price of Bitcoin and other digital tokens.

Bloomberg reported on Tuesday that the Justice Department was conducting a criminal investigation of price manipulation using Tether, one of many issues related to Tether that are scaring investors away. Every unit of Tether is supposed to be backed by a dollar in a bank, but managers of Bitfinex and Tether have struggled to show that they even have bank accounts. Many traders have been selling Tether at a loss just so they can take their money out.

The activities of another large exchange, OKEx, have also led traders to question whether they can trust the institutions at the center of the cryptocurrency industry.

OKEx, which began in China, altered some trading rules without advance notice, according to a large hedge fund, Amber AI, which published a post on Medium about the changes. AmberAI said customers appeared to have lost millions of dollars because of the changes. OKex, without acknowledging the losses, apologized to customers for some of the changes, which it said had been made to cope with chaotic trading.

Regulators are cracking down.

Much of the excitement surrounding the cryptocurrency markets last year was stirred up by companies that raised money selling custom cryptocurrencies in so-called initial coin offerings, which let start-ups raise money without going through regulators.

At the time, lawyers warned that these offerings would probably run afoul of securities rules. The Securities and Exchange Commission recently stepped up punishment of companies that violated securities law with their offerings. In the most chilling case, the commission punished two companies on Friday for their initial coin offerings, forcing them to return money to investors while saying the cases would be templates for future actions.

Cryptocurrencies are managed by communities of developers. That can get messy.

The Bitcoin network was created with so-called open-source software released to the world in January 2009. For many years, members of the Bitcoin community worked together to improve the software. That collegiality has faded. Last year, after a bitter fight, one group released a new version of Bitcoin software with slightly different rules that gave rise to a new cryptocurrency, Bitcoin Cash.

The people backing Bitcoin Cash subsequently had their own disagreements. This week, they splintered into two groups. In the software world, it’s known as a fork: Bitcoin Cash was split into two new cryptocurrencies, Bitcoin ABC and Bitcoin SV.

The new forks have not altered the original Bitcoin. But they have created chaos in the trading markets, as exchanges struggle to define which coin customers are trading. The battles have also raised questions about one of the fundamental attractions of cryptocurrencies: their apparent scarcity.

The creator of Bitcoin said only 21 million Bitcoins would ever be created. But how scarce do those 21 million Bitcoins seem if there are also 21 million tokens of each new copycat?

As Naeem Aslam, the chief market analyst at the trading firm ThinkMarkets, put it in a note to clients this week: “Forking has become so common that it puts at risk the notion of limited supply altogether.”

Cryptocurrencies were going to solve all kinds of real-world problems. But the real world hasn’t had much use for cryptocurrencies.

Bitcoin was supposed to make it easier to send payments instantly over international borders. Ethereum, the second-largest cryptocurrency network until recently, was going to create a kind of global super computer. Thousands of other tokens were also designed to be used for high-minded purposes. But so far, about the only thing the tokens have been used for is speculative trading.

Developers have complained that Bitcoin, Ethereum and most other networks are hobbled by technical problems that make their tokens hard to use in real-world transactions. Those working on the cryptocurrencies have promised solutions, but they have been slow to produce them.

Governments could get into cryptocurrencies, and do a better job of managing them.

One hopeful sign for digital tokens came from Christine Lagarde, the leader of the International Monetary Fund. In a speech last week, she made a case for why countries and central banks might want to issue digital currencies similar to Bitcoin. (Some countries are already experimenting with this.)

But Ms. Lagarde added a note of caution. While saying cryptocurrencies could improve on current payment networks, she also said governments could manage them more effectively and eliminate the issues of trust that have hobbled them. The remarks could have a chilling effect on existing, nongovernmental tokens.

Please share this article:

Bitcoin Crashed: Are Stablecoins The Way Forward?

Please share this article:

Bitcoin crashed, and it took the other cryptocurrencies down with itmost of them, at least. Some currencies, however, were designed to keep their prices stable. The recent market fall was a test for these stablecoins – whether they delivered on their promise, or if they were unreliable.

Economic crisis and related business terms word cloud written with chalk on black board. There is a big arrow chart moving down. A businessman is hiding his head in a moving box.Getty

A primer on stablecoins

Volatility is nothing new in the cryptospace – in fact, this attracted speculators who bet on their rise to gain hefty profits. But this renders the currencies unusable for daily transactions.

Stablecoins have been an attempt to confront this feature. Projects like Tether are pegged to the U.S. dollar, which makes every USDT worth exactly one dollarnothing more, nothing less. The most important thing to note is that stablecoins are a financial vehicle, i.e. you cannot just “decide” that a coin should be traded for one dollarwhat if people believe the coin is worthless? Then, no one would sell anything for that coin, and the coin issuers have to pay more coins to eventually persuade the sellers. The trick is to create a system that would never fall to this scenario. And so far, three methods have been invented: fiat-collateralized stablecoins, crypto-collateralized stablecoins and non-collateralized stablecoins.

Fiat-collateralized stablecoins have (as the name implies) fiat money backing their crypto. This means that for every digital coin, there is an equivalent fiat money in held in collateral in a central bank. This system works like an IOU, where every coin is perfectly tradable for an equivalent dollar.

Crypto-collateralized stablecoins intend to remove the dependency on fiat completely. This allows them to create a more decentralized solution by relying on crypto (such as ether or bitcoin) as collateral, but they are also more complex as the underlying asset is highly unstable. To confront this instability, these stablecoins are over-collateralized to absorb the shock of an eventual price fall. For instance, a user would need to deposit $200 ether to receive $100 in stablecoinsif ether falls by 25%, the coin still has enough backing to be traded for one dollar. Of course, these projects justify for this apparently $100 loss by paying interest or similar to the issuers, which in some cases allow the issuers to gain more than they have deposited.

Without going much into the details, crypto-collateralized stablecoins have a working model that is more decentralized and transparent than their fiat-counterparts, but also more complex.

The last category is non-collateralized stablecoins. In these projects, smart contracts are in charge to control the supply and demand scheme and ensure the price stays at one dollar. If the coin is trading too high, the system automatically creates new coins (historically called seignorage). If it is trading too low, the system buys up the coins in the market to reduce the circulating supply. If there are not enough coins to support this action, the system entitles you to future seignorage. In a way, the “collateral” in this system is the shares in the future growth of the system.

Non-collateralized stablecoins are complex and the most promising project in this area is Basis, which does not have an official launch date yet. This brings us to the next topic.

Are stablecoins real?

Stablecoins have been under fire for being doomed to fail. Tether, one of the first stablecoins pegged to the U.S. dollar fell down to $0.84 in mid-October when people started to doubt whether it is fully collateralized. Tether is a fiat-collateralized stablecoin.

Critics of this system claim that these coins have no reason to exist, as they are simply copies of perfectly liquid dollars that have been traded for cryptocurrencies with “questionable backing that is awkward to use,” so why not just use the dollar directly?

However, this could be said about just any cryptocurrency, not just stablecoins. Digital currencies have obvious advantages such as fast international payments, availability to anyone with an internet connection and the lack of need to go through a banking system.

Several big players are offering their own stablecoins, such as Goldman Sachs with their USD Coin (USDC), or the Winklevoss twins with their Gemini (GUSD). They all indicate the potential for stablecoins. One of the recent players in this field is Elizabeth White, the CEO of The White Company.

Originally a trader of labmorghini and yachts, White quickly encountered the problem with crypto price volatility. For that reason, her company launched the White Standard stablecoin (WSD), the first to be built off the Stellar blockchain (which is 1500% faster than Ethereum, and 1/1000 the cost).

White did not repeat Tether’s mistake: “Tether has not had regular audits. In fact, they have had none from September 2017 until June 2018, and none since then. WSD is audited on a monthly basis.” She continues: “Tether’s holdings are in an unnamed bank, presumably offshore. WSD holdings are in U.S. based, FDIC insured institutions.”

The real performance

“In the last few days we’ve seen a drop of more than 30 percent for BTC and even greater for other cryptocurrencies,” said Ronny Boesing, CEO of Openledger. The stablecoins, on the other hand, did not crash. Shortly after bitcoin’s fall, USDC and TUSD were trading at one to three cents over the dollar. USDT was trading for an average of $0.97, with WSD in the same range. Openledger’s bitCNY, which is pegged to the Chinese yuan, also managed to keep its stability.

This all shows that so far, stablecoins have been able to keep their promises. Of course, they will probably not remain stable for all eternity, but the recent developments shows they have been able to absorb huge crashes after all.

This begs the question; what is preventing stablecoins from going mainstream? In the words of Boesing, whose OpenLedger DEX was the first decentralized trading platform on BitShares that started offering stablecoins: “a simple answer is lack of trust.” Many banks and exchanges are still reluctant to accept stablecoins, and a lot of them who accept them did that under public pressure. White’s intention is to make stablecoins more reachable for that public.

“Mainstream adoption of stablecoins will follow wider acceptance of stablecoin based payment methods in everyday life. That is why a two-sided network is the best approach to growing use. This means that stablecoins must find ways to allow their users to spend them through existing merchant networks, for example, a stablecoin based debit card like the upcoming White Card. On the other hand, merchant adoption of stablecoin payments will also help increase their use, with services like White Pay.”

Will demand for stablecoins increase? Can they remain stable if bitcoin keeps crashing? There are many forces at play. What’s certain is that digital currencies have a much higher chance for becoming a reliable trading asset if they step away from being speculation toolsand that’s where stablecoins excel.

Please share this article:

Bakkt Looks for Support for Its Next Futures Contract

Please share this article:

As Bitcoin continues to slide past the $4,500 mark, bullish investors need something to hold onto. Bakkt is trying to give it to them.

Intercontinental Exchange, the owner of the NYSE, is fighting the good fight with a plan to make cryptocurrencies mainstream.

Bakkt is its plan.

The new platform offers regulated trading, clearing and custody, and security. It is a safe environment for consumers to buy, sell, store, and spend digital assets.

Bakkt and Bitcoin

The platform’s first futures contract will be a Bitcoin one, as it is “the clear crypto leader.”

What will be the next futures contract?

In order to expand its offering, Bakkt is looking to the community to help decide what digital asset to support:

“As the world’s most liquid and widely distributed cryptocurrency, and where we’ve seen the most customer demand, bitcoin’s profile creates a liquid product on which to build a futures contract. We’ll consider additional contracts as the landscape evolves and as we receive additional customer feedback about what they want and need.”

>> Bitcoin Cash Hard Fork Controversy: Roger Ver vs. Craig Wright

Bitcoin Futures Contract

Bakkt has had to delay the first Bitcoin futures contract. Pending regulatory approval, it is now scheduled to launch on January 24th, 2019.

It made the announcement yesterday saying the following:

“As is often true with product launches, there are new processes, risks and mitigants to test and re-test, and in the case of crypto, a new asset class to which these resources are being applied. So, it makes sense to adjust our timeline as we work with the industry toward launch.”

The company has also blamed the “volume of interest” in the contracts and how that has meant more time needed to ensure everything is fully ready for launch.

Until Bakkt’s Bitcoin futures launch, it will be hard to think of any other coin launch yet. Success is riding on the first!

Featured Image: Depositphotos/© Fotofabrika

Please share this article:

Bitcoin, Ripple, Ethereum, Stellar, EOS, Litecoin, Cardano, Monero, TRON, Dash: Price Analysis, Nov. 21

Please share this article:

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

Bottoms are formed during market capitulations. After Bitcoin broke below the critical support of $5,900, investors dumped their holdings, fearing a complete loss on investment. For someone who does not believe in the future of cryptocurrencies and who was in it only for making a quick buck, it might be the right thing to do.

However, for the others, who believe in the story of blockchain and cryptocurrencies, the current fall offers a great opportunity to invest for the long term. During bottom formations, the outlook is always very dire and every bit of news is viewed as negative.

One such news was the U.S. Justice Department investigating the probability of Bitcoin manipulation in 2017 using stablecoin Tether. Though we believe that any regulatory step to protect retail investors is a long-term positive, the markets did not view it in the same way.

After the fall, while naysayers are claiming victory and forecasting a further fall, the bulls see an opportunity to buy for the long term. It is difficult to predict a bottom when markets are gripped in fear. Hence, we believe it is better to wait for the markets to show signs of stabilization before attempting a buy.

The software companies did not vanish after the dotcom bubble. The world did not come to an end after the financial crisis of 2007–2008. In the same way, this bear market will also pass and the stronger cryptocurrencies will rise and reward investors. Therefore, be patient and let the markets offer us a relatively low-risk buying opportunity.

BTC/USD

Bitcoin nosedived to a low of $4,368.69 on Nov.20. The fall of the past two days gives the impression of panic selling by investors. Usually bottoms are formed after such a round of liquidation.  

Both moving averages have turned down, which is a negative sign. The RSI has hit deeply oversold levels, which suggests that selling has been overdone and a pullback is likely.

The bulls might attempt to carry the BTC/USD pair to the downtrend line, which can prove to be a roadblock. If the downtrend line is crossed, we expect the bears to offer strong resistance in the zone of $5,450–$5,700.

The next leg down will give us a better insight about the bottom. If the bears slice through $4,368.69, the fall can extend to $4,000 and below it to the major support zone of $3,500–$3,000.

On the other hand, if the bulls successfully defend $4,368.69, the probability of it being the bottom increases. It is difficult to pinpoint the bottom right away. We can confirm a bottom only in hindsight.

XRP/USD

Ripple has emerged as one of the outperformers during the recent fall. It has stretched its lead over Ethereum after becoming the second most valuable cryptocurrency in terms of market capitalization.

XRP/USD

The XRP/USD pair is currently finding support between the trendline and $0.40. Both the moving averages remain flat, which points to range bound action in the near term. On the upside, $0.519 and $0.565 will act as resistances.

On the downside, if the bears sink prices below $0.40, a fall to $0.37185 and below that to $0.26913 is probable. Though we are relatively bullish on the digital currency, we shall wait for a new buy setup to form before proposing any trade.

ETH/USD

Ethereum extended its fall on Nov. 20 and broke below the support of $136. The RSI has reached deeply oversold levels, which previously resulted in a pullback.

ETH/USD

Currently, the bulls are attempting to pullback from the $126.20 level, which is likely to face a stiff resistance at $167.32. The downtrending 20-day EMA will also be a difficult hurdle to cross.

If the next leg down breaks below $126.20, the ETH/USD pair can extend its decline to $110. As the trend is down, we shall wait for a new reliable setup to form before recommending a trade.

XLM/USD

Stellar broke down of the ascending channel on Nov. 19 and followed it up with another sharp fall the next day. However, the bulls have managed to hold the critical support at $0.184.

XLM/USD

The current pullback attempt is likely to face a stiff resistance at the support line of the channel and above it at the downtrend line.

If the bears sink the XLM/USD pair below the critical support at $0.184, it can slide to the next support at $0.13 and below that to $0.09.

EOS/USD

EOS broke below the critical support of $3.8723 and dived to a low of $3.4703 on Nov. 20. In doing so, the RSI dipped into deeply oversold territory that indicates that the selling has been overdone and a pullback is probable. Currently, the bulls are attempting to climb back above the overhead resistance at $3.8723. If successful, the pullback can extend to $4.493, which might again act as a stiff resistance.

EOS/USD

If the pullback stalls at $4.1778, the bears will again attempt to sink the EOS/USD pair below the support at $3.8723. If successful, the decline can extend to the next support at $3. The falling 20-day EMA and the RSI in the oversold territory show that the bears have the upper hand.

LTC/USD

Litecoin dipped to an intraday low of $31.78 on Nov. 20, which was just below our suggested support of $32. The pattern target of a breakdown from the descending triangle is $29.653. We believe the zone between $32–$29.653 will act as a strong support.

LTC/USD

However, as the trend is down, any attempt to pullback will face a stiff resistance at the 20-day EMA that is sloping down. Above this, the next major resistance will be in the $47.246–$49.466 zone.

We believe that after such a sharp fall, the LTC/USD pair might attempt to form a bottom around current levels. However, the traders should wait for a confirmed bottom and a new buy setup to form before attempting to buy.

ADA/USD

Cardano fell in the past two days and overshot our suggested support of $0.043722 and made an intraday low of $0.041572. The RSI has declined deep into the oversold territory, which suggests a pullback is around the corner.

ADA/USD

The pullback can carry the ADA/USD pair to the overhead resistance at $0.060105. However, the trend is down, hence, any attempt to recover will face a hurdle at the previous support of $0.060105 and at the 20-day EMA, which is sloping down.

If the next leg down breaks below the support at $0.041572, the fall can stretch to the next lower support of $0.025954.

XMR/USD

Monero is trying to find support close to the $64.525 level. The RSI has entered deeply oversold levels, which shows that selling has been incessant. We believe that the bulls will attempt a pullback from the current levels that can carry the digital currency to the overhead resistance at $81.

XMR/USD

The bears are likely to attempt to turn down the XMR/USD pair from $81. If the next down leg breaks $64.525, the fall can extend to $60 and below that to $46 levels.

Our bearish view will be invalidated if the bulls scale $81 and sustain above it. Currently, there are no bullish patterns that suggest a buy, hence, it is best to remain on the sidelines.

TRX/USD

In the past two days, TRON broke below the two critical supports of $0.0183 and $0.01587681. With the RSI dropping close to 15 on Nov. 20, it shows that the selling has been overdone and a relief rally is likely.

TRX/USD

In a down trending market, every previous support acts as a resistance after it is broken down. Hence, we anticipate a stiff resistance at $0.01587681 and $0.0183. If the TRX/USD pair turns down from one of these levels, the bears will attempt to sink the price to the next support at $0.00844479.

On the other hand, if the bulls scale $0.0183 within the next few days, it will confirm that the current fall was a fake breakdown. We shall wait for the trend reversal to happen before suggesting any trade in it.

DASH/USD

Dash is currently trading inside a descending channel. It broke below the critical support of $129.58 on Nov. 19 and made a new 52-week low at $98.01 on the next day. It is presently finding support at the bottom of the channel. The bulls might attempt to push prices back above the $129.58 resistance. If successful, the pullback can extend to the upper end of the channel, close to $160.  

DASH/USD

However, as the DASH/USD pair is in a downtrend, we anticipate a strong resistance at $129.58 and at the 20-day EMA. During the next down move, if the support at $98.01 breaks, the next support is at $75. Traders should wait for the trend to reverse and a bottom to form before initiating any long positions in it.

Market data is provided by the HitBTC exchange. Charts for analysis are provided by TradingView.

Please share this article:

Why Has Bitcoin's Price Fallen So Sharply This Week?

Please share this article:

Bitcoin’s value fell by more than 25 percent this week.

Dan Kitwood/Getty Images

The year-long cryptocurrency slump is devolving into a further downward spiral this week. The price of Bitcoin fell 13 percent on Tuesday and more than 25 percent over the week. A single Bitcoin is currently worth about $4,400, marking the first time the value has dropped below $6,000 in months. Other lesser-known cryptocurrencies are seeing similar drops. At $32, Litecoin is at around its lowest value for 2018. The same is true for Ethereum, now at around $130.

There a number of theories floating around for the drop. One attributes the recent problems to scrutiny facing Tether, a cryptocurrency that is supposedly backed by U.S. dollars, and the exchange called Bitfinex that created it. Analysts have long suspected that investors on Bitfinex had been artificially inflating the price of Bitcoin during its wild upswings last year by performing wash trades, which in this case would essentially involve buying and selling a cryptocurrency in order to create the illusion of activity. Bloomberg reported on Tuesday that the Justice Department is investigating Bitfinex and Tether Ltd. to determine whether people were using the Tether token to buy Bitcoin in a wash trading scheme. With the looming threat of an indictment, it could be that Bitcoin is falling closer to its actual value because it is no longer being artificially propped up. (Tether Ltd. has denied the allegations.)

Analysts have attributed much of the year-long decline to the general threat of regulation and law enforcement actions. There have been other recent signs of tightening oversight beyond the Tether investigation. On Friday, the Securities and Exchange Commission fined the companies Airfox and Paragon for failing to register their initial coin offerings (ICO)—a process through which crypto tokens are distributed to investors—as securities. The SEC also mandated that the two companies allow investors to retrieve their funds. This case may set a precedent for other cryptocurrency companies, many of which could go bankrupt if forced to pay out similar penalties and reimbursements. However, it’s worth noting that the ICO market is notoriously shady—the cryptocurrency advisory firm Satis Group estimates that up to 85 percent of ICOs are scams. A study out of Boston College additionally found that 56 percent of cryptocurrency companies fold within four months of their ICOs.

Another theory is that divisions within the Bitcoin community are triggering a massive sell-off of assets. There has been a debate raging in cryptocurrency circles the past few years over the fact that Bitcoin can only process a handful of transactions per second, which causes bottlenecks. In 2017, a faction of the community created an alternate version of Bitcoin called Bitcoin Cash, which can handle more transactions, through a “hard fork” process. Then, last week, Bitcoin Cash itself went through a hard fork. This balkanization of the Bitcoin community and fragmentation of the currency may be further discouraging investors.

At this time last year, cryptocurrencies were an international fixation due to their skyrocketing prices. Bitcoin reached $19,783.21, its highest-ever value, on Dec. 17.

Please share this article:

Bitcoin [BTC/USD] Technical Analysis: Will the cryptocurrency submit to the red capes?

Please share this article:

The cryptocurrency market has gone beyond the control of the bull and the bear as the volatility takes charge of the price trends. At the time of writing, Bitcoin [BTC] was down by 1.29%, trading at $4,511 with a market cap of $78.4 billion. Simultaneously, the 24-hour volume is recorded to be $7.2 billion.

1-hour:

BTCUSD 1-hour candlesticks | Source: tradingview

In the 1-hour timeframe of the Bitcoin candlesticks, the downtrend is ranging from $5,495 to $4,546 whereas the support level is fixed at $4,244. A descending trend can be noticed in this scenario of the BTC market.

The Aroon Indicator is projecting more strength in the uptrend whereas the downtrend has begun to up its game simultaneously. However, it can be concluded that the indicator is more bullish than bearish on Bitcoin.

The Relative Vigor Index was bullish on the subject but has taken a downward approach after making a bearish crossover by the signal.

1-day:

BTCUSD 1-day candlesticks | Source: tradingview

BTCUSD 1-day candlesticks | Source: tradingview

In this time frame of BTC candlesticks, the downtrend is stretching from $8,223 to $6,507. However, the coin saw many dips in its price, hence, the support is now set at $4,354. Furthermore, the trendline is forming a descending triangle with the support point.

The Bollinger Bands have diverged to depict a massive opening at the end of the tunnel-pattern. Therefore, the indicator is predictive of extreme volatility during this time.

The Chaikin Money Flow is extremely bearish on Bitcoin as of now. The reading line has slumped much below the 0-line and is residing at the bottom.

The Awesome Oscillator is in tune with the above indicator to side with the bear. The bars are starkly glowing red to project negativity in the market trend.

Conclusion:

In this technical analysis, the indicators have a mixed response on the future of Bitcoin. However, the 1-hour indicators are approaching the bear’s den whereas the indicators used in the longer run have already submitted to the red capes.


Follow us on Telegram | Twitter | Facebook


Up Next

Bitcoin [BTC]: There is no liquidity in the market to absorb the sell-off, says Bart Smith

Don’t Miss

XRP is Bitcoin [BTC] 2.0, provides privacy for banks, says Ripple’s Chief Market Strategist

Priyamvada Singh

Priyamvada is a full-time journalist at AMBCrypto. A graduate in Journalism & Communication from Manipal University, she believes blockchain technology to be a revolutionary tool in advancing the future. Currently, she holds no value in cryptocurrencies.

Please share this article: