Scarily Accurate Analyst Gives 4 Reasons Why Bitcoin Price Won’t Crash at $8,500

Once Bitcoin (BTC) started to incur strong losses in the second half of 2019, analysts were once again making extremely low price predictions. Per previous reports from NewsBTC, long-time Bitcoin skeptic and CEO of Euro Pacific Capital Peter Schiff said in a tweet that the price of the leading cryptocurrency could “dump” to $1,000 to complete a chart pattern. Related Reading: XRP Analyst Suggests IPO Could Be Game-Changing for Ripple: Here’s How And even recently, despite the price of digital assets rallying by dozens of percent since the December bottom, a number of traders have asserted that a $3,000 Bitcoin price is in the books. But, according to a prominent crypto analyst who called BTC’s decline to the $6,000s, the idea that BTC is extremely bearish right now is somewhat irrational. 4 Reasons Why Bitcoin Price Unlikely to Crash Right Now Legendary analyst Dave the Wave recently laid out four reasons why he is “surprised at the bearish sentiment” he is seeing on Crypto Twitter: In the past 12 months, since the end of January of 2019, the price of the leading cryptocurrency has surged by 160% — this is a performance that effectively outpaces all other crypto assets, stocks, and commodities. BTC has seen a “solid retracement as long as the parabolic spike up, which has held the 0.5 Fibonacci Retracement of the entire move, suggesting bulls remain in control. Bitcoin has just broken “out of a long downward trend line.” Prices have recently posted a higher high. Bit surprised at the amount of bearish sentiment I'm seeing on CT [not really as a contrarian]. A recap of this year – – price up 160%– solid retracement as long as the parabolic spike up– break out of the long downward trend line– higher high– looking for higher low pic.twitter.com/Gev1iaAi6N — dave the wave (@davthewave) January 26, 2020 Long-Term Bottom Signals Continue to Flash Dave isn’t the only analyst expecting for Bitcoin to start to form an uptrend once again. Willy Woo — partner at Bitcoin fund Adaptive Capital — said in December that per his analysis of on-chain data, he believes the macro price bottom was established in the low-$6,000s. Woo did say, however, that there is an opportunity for a drop below that bottom, but noted that it would just be a blip in the grand scheme of things. Related Reading: Crypto Tidbits: Elon Musk Talks Bitcoin, Ripple IPO Coming, Facebook’s Blockchain Loses Another Member Also, analyst Cryptokea recently noted that the worldwide Google Trends, well, trends for the search term “Buy Bitcoin” have recently hit a seven-month high — the highest since June 2019 — at “10.” 1/ Googling for "Buy Bitcoin" just reached a 7 months high (Score 9). The long-term upwards trend is undeniable. The last time the score reached a 10 was:Nov '13 (bull top),May '17 (price on parabolic run-up),Jun '19 (medium-term top)>Feb '20 (price on parabolic run-up?) pic.twitter.com/tkdXIEvM3Q — CryptoKea (@CryptoKea) January 20, 2020 The latest Google Trends “10,” Kea said, likely marks the start of a parabolic run-up that will bring prices much higher than the $14,000 high. He added that the “long-term upwards trend” for this metric, which is correlated with growth in the price of Bitcoin, is “undeniable,” pointing to a logarithmic corridor confirming that over time, more and more people want to buy the cryptocurrency. Featured Image from Shutterstock The post appeared first on NewsBTC.

Bitcoin Saw a “Mega Rejection” at $9,200, And It Should be Worrisome for Bulls

Over the past few days, Bitcoin (BTC) has stalled, finding itself between a rock and a hard place. Many analysts are currently undecided where the cryptocurrency will go in the next few weeks, though one top trader recently noted that BTC’s price action at $9,200 could be a precursor to more downside. How Bearish Is Bitcoin’s Rejection at $9,200? In the wake of Bitcoin’s flash crash at $9,200 last week, Haejin noted that this represented a “mega rejection” on a daily basis. He specifically looked to the fact that BTC saw a bearish retest of the 200-day moving average, collapsed out of a multi-week rising wedge, and failed to surmount key macro resistance — three signs showing bears remain decisively in control. https://t.co/JhMTlE2zA1: Partial Bitcoin Chart of the Mega Rejection!! pic.twitter.com/CMXsreWwA1 — Haejin (@Haejin_Crypto) January 24, 2020 So what does this “mega rejection” mean for Bitcoin per Haejin? Well, it fulfills a bearish fractal that the commentator laid out. Per previous reports from NewsBTC, this Haejin last week pointed out that Bitcoin’s price action since the $14,000 top in June is eerily reminiscent of that seen in the 2018 bear market, with both cycles seeing a downward price channel, an upward wedge-formed false breakout (like the one we just saw), declining volume, and signs of capitulation. Haejin then added that if BTC follows the exact path it did in 2018, the price will soon collapse back to the $6,000s, then Bitcoin will capitulate in March or April to fall as low as $3,300 by the time of the halving. https://t.co/JhMTlE2zA1: Bitcoin Deja vu? Here is a Members only chart: Note the Inverse H&S on both fractals. Also the three wave ABC price constructs The downward price channelThe upward wedgeDeclining volumesPotential Capitulation Volume All within 4 months? Hmmm. pic.twitter.com/hXNN53PI7B — Haejin (@Haejin_Crypto) January 17, 2020 Can Bitcoin Bulls Step In? Although this rising wedge breakdown is notably bearish, analysts haven’t given up hope that bulls will eventually step in, negating the aforementioned fractal analysis. Just this week, analyst Filb Filb — who notably called Bitcoin’s flash pump to the $9,000s and crash to the $6,000s in late-2019 — wrote in a recent newsletter that he is bullish on BTC heading into the block reward reduction or “halving” slated to take place in May: “Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.” As to why $12,500 makes sense, he noted that that is the “top target” for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin. There’s also Financial Survivalism, a trader who in December called BTC’s move into the $8,000s and $9,000s we just saw, explained in an extensive TradingView post that he thinks that BTC is on track to hit $20,000 by July 1st. Survivalism cited a flurry of strong technical factors and the impending halving. Related Reading: Key Google Metric: Bitcoin May Explode Into $100,000 Parabolic Rally Featured Image from Shutterstock The post appeared first on NewsBTC.

Altcoins on Track to Plunge By 10%, Yet This Crypto Could Rally Higher

Over the past month, altcoins have finally started to break higher, reversing the Bitcoin-centric trend seen in the crypto market throughout all of 2019. In fact, the BTC dominance metric has dropped to 66% over the past week, with digital assets like Ethereum, XRP, and Litecoin starting to outpace the market leader. Related Reading: XRP Analyst Suggests IPO Could Be Game-Changing for Ripple: Here’s How According to a prominent cryptocurrency trader, the time for altcoins to outperform Bitcoin is likely up, looking to a number of bearish chart formations. Altcoin Crisis: Top Crypto Assets Likely to Fall Cryptocurrency trader Mr. Chief recently noted that he doesn’t “see anything bullish about these major altcoins,” specifically looking to the charts of three altcoins against Bitcoin. These altcoins are Ethereum, Litecoin, and Stellar Lumens. For ETH, he noted that the cryptocurrency has broken below a key resistance after last week’s rally, and is looking to fall by just under 10% against BTC. For LTC and XLM, the trader pointed out that the cryptocurrencies are on the verge of falling below a pennant formation with a bearish skew. Sorry guys, call me the ultimate pessimist, but i don't see anything bullish about these major alts. Potentially an $XRP bounce but everything looks pretty bad otherwise$ETH $LTC $XRP $XLM pic.twitter.com/Yf8IrnH7iZ — Mr Chief (@HaloCrypto) January 26, 2020 While all these altcoins are showing weakness, Mr. Chief did note that there is one major crypto asset that could break higher rather than lower. Related Reading: Crypto Tidbits: Elon Musk Talks Bitcoin, Ripple IPO Coming, Facebook’s Blockchain Loses Another Member Could XRP Stand Out? The only major altcoin that he signaled has the potential to head higher is XRP, noting that it is currently trading in a flag and looking relatively indecisive, meaning it could break either up or down from the chart pattern aforementioned. Mr. Chief’s analysis was relatively inconclusive, with him drawing two arrows, one in the upward direction and the other in the downward direction. Interestingly traders believe the bull case is more likely than not. Earlier this week, Luke Martin, a prominent cryptocurrency trader and podcaster that was featured on CNN, noted that XRP/BTC has recently flipped a key resistance level into support, a bullish pivot implying outperformance. Daily view of $XRP outlook for this month. You can see how this level has flipped from resistance to support in the last 5 days since the first tweet. pic.twitter.com/hF7A68Svxa — Luke Martin (@VentureCoinist) January 22, 2020 Also, Amsterdam Stock Exchange trader Michael Van De Poppe revealed in a TradingView post published last week that he expects for XRP/BTC to soon explode 170% higher. He explained that the pair is on the verge of breaking out of a downtrend that has constrained prices since the start of 2019, before adding that XRP has held a very important historical support level against Bitcoin, suggesting bullish strength. Poppe’s chart also pointed out that the recent price action is eerily reminiscent of an XRP/BTC break out in 2018, suggesting that a surge of dozens of percent can be had if history repeats itself. Related Reading: Crypto Giant Binance Pledges $1.5m to Help Chinese Coronavirus Victims Featured Image from Shutterstock The post appeared first on NewsBTC.

XRP Analyst Suggests IPO Could Be Game-Changing for Ripple: Here’s How

This week, Brad Garlinghouse — chief executive of Ripple Labs in San Francisco — made a massive announcement at a Wall Street Journal event in Davos, Switzerland at the World Economic Forum. The industry executive told a crowd at the event that he intends to bring Ripple public in the coming years, adding that he expects for there to be a number of crypto- and blockchain-related IPOs in the coming 12 months. “In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” –@bgarlinghouse at #WEF20 — Asheesh Birla (@ashgoblue) January 23, 2020 Due to the unexpectedness of this news, many have had things to say about the announcement. Some have been skeptical, others have been optimistic. One crypto analyst closely following all things XRP, Hodor, an industry commentator with over 50,000 followers, laid out why Ripple going public could be game-changing in an old blog post. How Would Ripple Benefit From an ICO Seemingly now-retired crypto commentator Hodor last year released an extensive blog post to Coil on how Ripple going public could affect the company at the cryptocurrency it has close ties to, XRP. Firstly, he stated that Ripple, should it issue shares on public markets, would likely see a “sizable” IPO, estimating that it will take in around $5 billion cash worth of capital — less than Uber’s recent $8 billion IPO, Facebook’s $16 billion public round, and Visa’s $18 billion sale of shares in 2008. Should Ripple 'go public?' I analyze some basic pros and cons in my latest blog on Coil, and include a hint about the next 'scenario' I'll be analyzing, which may surprise some people. https://t.co/N2b4ACdbzC@Ripple @bgarlinghouse .@JoelKatz .@justmoon @nbougalis @XRPLLabs pic.twitter.com/8lWbizndHq — Hodor (@Hodor) September 8, 2019 Even if Ripple brought in 20% of that, which would be $1 billion, it would have a large cash reserve it would be sitting on. Hodor then noted that with this cash, Ripple could participate in strong marketing: “With $5 billion dollars, no amount of potential marketing is out of reach, and the days of Superbowl advertisements about digital assets may be upon us.” He added that the sale of Ripple shares would also give the company more capacity to participate in more business deals and acquisitions, with Garlinghouse last year saying in an interview that acquisitions are a big focus of his company when their balance sheet is strong. This comment in the wake of Ripple partnering with top remittance provider MoneyGram.  As to how this could affect XRP, the analyst suggested that the reserve of cash would decrease Ripple’s incentive to participate in programmatic sales of XRP, which investors like Kyle Samani of Multicoin Capital may have depressed the price of the asset over the years. He added that a Ripple IPO would “accelerate the adoption of their payment processing software and its preferred digital asset,” potentially presenting a bull case for the battered crypto asset, which shed 50% of its value in 2019. Featured Image from Shutterstock The post appeared first on NewsBTC.

Crypto Tidbits: Elon Musk Talks Bitcoin, Ripple IPO Coming, Facebook’s Blockchain Loses Another Member

Another week, another round of Crypto Tidbits. The past week hasn’t been too good for Bitcoin, Ethereum, and their ilk, with the leading digital assets losing around 7% apiece since our last update. As of the time of writing this article, BTC is trading for $8,350, failing to maintain the over $9,000 prices seen last week. Despite the negative price action, the past 7 days were arguably extremely positive for the cryptocurrency and blockchain space, with there being a flurry of developments that could eventually boost this market. Related Reading: Crypto Tidbits: Bitcoin Hits $9,000, Institutional Cryptocurrency Investment Spikes, NBA Team Uses Ethereum Bitcoin & Crypto Tidbits Tesla’s Elon Musk Talks Bitcoin and Crypto Again: While Elon Musk is known not to have a large stake in Bitcoin or cryptocurrency, when he talks about this industry, people listen. This week in an episode of the Third Row Tesla Podcast, the Telsa and SpaceX CEO shared his thoughts about digital assets. Starting his train of thought first with “clever” to “What did you think of Satoshi’s white paper?,” the Tesla visionary said that there are obviously Bitcoin transactions not made in “the balance of the law.” Musk did, though, say that he sees “crypto as effectively a replacement for cash,” yet made it clear that he doesn’t expect a digital asset to become “the primary database.” Fintech Company Square Backs the Lightning Network, a Bitcoin Scaling Solution: This week, the crypto-centric division of the fintech giant Square released its first product: the Lightning Development Kit (LDK). The LDK, the post indicates, will allow wallet developers to create “custom” integrations of the Network in an “easy, safe, and configurable way” through an API, demo apps, and other technical tools. Essentially, it allows Bitcoin software developers to more easily integrate the Lightning Network, a second-layer scaling solution that effectively migrates some transactions off the main chain to allow for lightning-fast, effectively free, and cross-chain transfers. Square Bags Key Patent for Crypto, Fiat Transactions: Speaking of Square, the company just was awarded a crypto-related patent. This patent outlines a system that will allow fiat to be rapidly converted into “non-fiat” instruments, with the document mentioning the word “Bitcoin” and “cryptocurrency” (and Ethereum, too) on a number of occasions. The network and technology defined in the patent could theoretically enable seamless crypto-to-fiat and fiat-to-crypto transactions, potentially mitigating the volatility element in Bitcoin transactions that makes them unviable. Ripple CEO Announces Intent to Issue IPO… Eventually: This week, Brad Garlinghouse, CEO of Ripple Labs, and many other of the world’s executives descended on Davos in Switzerland to talk finance. During a Wall Street Journal event, the leading Ripple executive said that he believes in the next 12 months, “you’ll see initial public offerings in the crypto/blockchain space.” Garlinghouse, touching on the long-held sentiment that Ripple will eventually issue shares on the public market, said that “We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” In the same interview, he said he sees value in Bitcoin as a store of value, but not as a medium of exchange. “In the next 12 months, you’ll see IPOs in the crypto/blockchain space. We’re not going to be the first and we’re not going to be the last, but I expect us to be on the leading side… it’s a natural evolution for our company.” –@bgarlinghouse at #WEF20 — Asheesh Birla (@ashgoblue) January 23, 2020 Japanese Government Working On Digital Currency: Reuters reports that a parliamentary group comprised of 70 Liberal Democratic Party lawmakers is looking to issue a national digital currency. Facebook’s Crypto Project Libra Loses Vodafone: Facebook’s Libra blockchain project just lost a partner in Vodafone, a primarily British telecom provider. “We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion,” a spokesperson said, seemingly trying to show that this move was not made in ill intent to the goals of financial inclusion. Featured Image from Shutterstock The post appeared first on NewsBTC.

Crypto Giant Binance Pledges $1.5m to Help Chinese Coronavirus Victims

Over the past few weeks, a virus in the coronavirus family (same family as the common cold, SARS, MERS, etc.) has started to circulate the globe. This novel coronavirus (2019-nCoV) originated in China, specifically in the Chinese city of Wuhan and seemingly due to infected animals being sold at a local market. The virus has thus far infected 1,400 individuals, official numbers state, with cases existing mainly in China though starting to spread to the U.S., France, Malaysia, Singapore, and beyond. Although these numbers may seem small, reports indicate that hospitals in Wuhan are being overrun due to the influx of cases and those believing they are sick with this coronavirus. Independent videos published to social media, in fact, say that there is a shortage of masks and other protective materials, along with too few doctors. Thus, the world has sprung into action, attempting to support the victims. Crypto Giant Binance to Support Coronavirus Outbreak Changpeng “CZ” Zhao, the Chinese-Canadian businessman that heads the world’s largest crypto exchange Binance, revealed in a tweet published minutes ago that his company has pledged “10m RMB ($1.5m USD) to help coronavirus victims.” Zhao seemingly denied any use of crypto assets in this, writing that it “is not realistic to do crypto to end beneficiaries [for the Wuhan outbreak].” Binance is purportedly still working on the logistics for this move, with the industry executive writing: “We didn’t make any announcements. But BCF/Binance team has been busy for the last few days. Still need help to arrange logistics locally.” For #Wuhan, not realistic to do crypto to end beneficiaries. Binance pledged 10m RMB ($1.5m USD) to help #coronavirus victims. We didn’t make any announcements. But BCF/Binance team has been busy for the last few days. Still need help to arrange logistics locally.🙋‍♀️ https://t.co/UH6FXgVSrX — CZ Binance (@cz_binance) January 25, 2020 This seemingly makes Binance the first crypto company to have started a charitable initiative to support victims of the latest Chinese coronavirus. This isn’t the first time Binance has been charitable in times of need. It in 2018 contributed $1 million to aid those affected by the massive flood in the west of Japan. The crypto firm also has its own charity arm. Featured Image from Shutterstock The post appeared first on NewsBTC.

Could Ethereum Hit $1 Trillion? Analyst Lays Out This Case

While the cryptocurrency didn’t perform that well in 2019, Ethereum (ETH) is one of the best-performing digital assets of all time, rallying from an ICO price under a dollar to the $160 where it is today.  Related Reading: This Eerie Fractal Shows Why Bitcoin’s Price Could Soon Crash By 20% Despite this jaw-dropping gain in and of itself, investors in the cryptocurrency believe it will go higher. So much higher than one analyst laid out a case for the cryptocurrency’s value to surge to $1 trillion, 13 digits. For some perspective, a trillion-dollar Ethereum market capitalization at current price levels would equate to about a $9,000 ETH price, with the current supply in mind.  The cryptocurrency reaching such lofty prices would require it to rally by over 5,000%. Crazy, right? Could Ethereum Really Hit $1 Trillion? In a January edition of the bankless newsletter published by Ethereum investor Ryan Sean Adams, a case for a 13-digit ETH market cap was laid out by Lucas Campbell of DeFi Rate. The supporting evidence for this case was largely tied to economic bandwidth, specifically the idea that ETH (Ether) is “trustless economic bandwidth that can’t be replaced by any other asset on the Ethereum network.” In other words, the cryptocurrency is likely to be the reserve currency for the rest of the decentralized finance ecosystem. Right now, DeFi protocols “consume 3% of ETH’s total economic bandwidth,” or 3% of the total supply in more layman’s terms. But with demand for DeFi increasing, with there being protocols that require more Ethereum reserves to operate, and with there existing a multi-trillion-dollar addressable market for ETH (in money, financial services and derivatives, growth could be had: “The traditional synthetics & derivatives market is $640T, imagine if 1% of that was trustless & built with ETH as bandwidth? The market cap for ETH could get in the double-digit trillions in scenarios like these.” The trillion dollar case for ETH A bullish case for ETH as economic bandwidth powering a trustless economyhttps://t.co/fbzClLCAVi@0x_Lucas crushed it on this thought experiment Thread: — Ryan Sean Adams – rsa.eth (@RyanSAdams) January 16, 2020 ETH Could Follow Bitcoin’s Parabolic Path That’s not all. Trader CryptoWolf recently noted that if you stack the charts if Bitcoin’s early years and Ethereum from its inception, the latter is eerily following the path of the former, with the two cryptocurrencies having both seen an absurd return on investment since their earliest days. This chart must not be ignored. pic.twitter.com/tjzEo6VFwT — CryptoWolf (@IamCryptoWolf) January 10, 2020 His chart implies that if ETH continues to follow the path trailblazed by Bitcoin, it will surge by thousands of percent from here by the end of the decade, and potentially even higher, boding well for bulls. Related Reading: Massive 66% Rally in Ripple’s XRP Hinges On This Key Level Featured Image from Shutterstock The post appeared first on NewsBTC.

This analyst says there’s a “high chance” Bitcoin may never fall under $5k again

Once Bitcoin (BTC) started to incur strong losses in the second half of 2019, analysts were once again making extremely low price predictions.

Long-time Bitcoin skeptic Peter Schiff, who is CEO of Euro Pacific Capital, wrote in a late-2019 tweet that per his technical analysis of the charts, BTC’s breakdown below the $7,000 range could be a precursor to a potential capitulation event to $1,000.

Even recently, despite the price of digital assets rallying by dozens of percent since the December bottom, a number of traders have asserted that a $3,000 Bitcoin price is in the books.

But, per a number of analyses, there is about no way the cryptocurrency will ever see those prices again.

Will Bitcoin say goodbye to sub-$5,000 prices forever?

Bitcoin analyst Digitalik.net, who runs a cryptocurrency statistics website that has his online username as the URL, recently noted that BTC’s four-year simple moving average (SMA) just crossed over the $5,000 level for the first time ever.

This is important as a chart shared by a user of his site shows that Bitcoin always bounced off the four-year SMA, only breaking through it briefly before bouncing higher. Indeed, in the wake of the 2013 bubble, BTC found key support at that level for months; and in 2018, the moving average marked the bottom for the brutal price plunge.

With this technical level being of utmost importance, Digitalik.net said that “there is a high chance we will not see BTC below $5,000 ever again.”

Not only long-term positive sign

It isn’t only the four-year SMA that suggests BTC will never revisit triple digits ever again.

In a CryptoSlate report covering Bitcoin’s plunge to the $6,000s in December, we cited this chart below from legendary analyst Filb Filb. The chart depicts a logarithmic growth curve that BTC has traded in for around a decade’s time, with bull runs topping at the top of the curve and bear markets finding support at the bottom of the curve.

The curve is so accurate that there are at least seven distinct points where the price of BTC flirted with the bottom of the curve, to only move higher in the weeks that followed.

At the time of our report, there were fears that BTC was finally going to break the curve—something that cynics of cryptocurrency say the asset will not hold forever. But, at the eleventh hour, bulls stepped in, allowing Bitcoin to close above the lowest logarithmic growth band as the price bounced back. The clear support found at this level suggests Bitcoin will

Not to mention, Willy Woo — partner at Bitcoin fund Adaptive Capital — said in December that per his analysis of on-chain data, he believes the macro price bottom was established in the low-$6,000s. Woo did say, however, that there is an opportunity for a drop below that bottom, but noted that it would just be a blip in the grand scheme of things.

The post This analyst says there’s a “high chance” Bitcoin may never fall under $5k again appeared first on CryptoSlate.

This Eerie Fractal Shows Why Bitcoin’s Price Could Soon Crash By 20%

Over the past week, Bitcoin (BTC) has started to show signs of weakness after a 40% uptrend in a month. Since establishing a $9,200 multi-month around seven days ago, the price of the leading digital asset has plummeted by 11% to $8,200, where it trades as of the time of writing this. Although the price drop has seemingly found a local bottom, with the selling pressure abating, an eerie fractal proposed by a top Bitcoin analyst says it’s only a matter of time before BTC falls dozens of percent from here. Ouch. Bitcoin Could Soon Plunge Dozens of Percent Over the past few weeks, Bitcoin has broken out from key downtrends, rallying by dozens of percent since the $6,400 bottom registered in December of last year. Although this has been decisively bullish price action, countless analysts have noted that the breakout we are seeing is eerily reminiscent of the infamous “China Pump” in October 2019, when President Xi Jinping’s endorsement of blockchain sent Bitcoin 40% higher. 40% higher in a day. Similarities were seen in a number of indicators, in the directionality of the move, and how the price action was formed. And according to a recent analysis by Cold Blooded Shiller — a full-time crypto trader — the similarities go even further than that, suggesting that BTC may tumble by dozens of percent from here. Night night, forever. pic.twitter.com/reS29pZEtq — Cold Blooded Shiller (@ColdBloodShill) January 25, 2020 He noted in the tweet above that when Bitcoin started to unwind after the China pump of yesteryear, the price hastily bounced off the 200-day exponential moving average (EMA) then was rejected from a key support/”supply” level, to only plunge through the same moving average. This ping-ponging in the price of BTC last year preceded a strong crash from $8,700 to $6,400 in a few weeks’ time, marking a drop of 27%. This is relevant because Bitcoin has done the exact same thing, bouncing off the 200 EMA almost exactly as it did last year. Not to mention, the shape of the charts are looking near-identical, suggesting that should the fractal play out in full, BTC will soon plunge by over 20% towards the $6,000s once again. Will Bulls Step In?  Despite these fears, there are some holding onto the belief that Bitcoin bulls will step in, especially as the halving approaches. Murad Mahmudov, CIO of Bitcoin fund Adaptive Capital, recently observed on Twitter that there is nearly no way BTC is falling much further than it already has, because “as crazy as it sounds, the -53 percent drop from $13,888 to $6,410 wasn’t a full out bitcoin bear market, but rather, unironically just mid-bull cycle correction.” Also, the Lucid SAR indicator, just printed a bullish signal on a medium-term basis; the indicator printed its first buy signal since March 2019, which was prior to a 330% rally that brought BTC above $10,000 and crypto assets dozens of percent higher. Featured Image from Shutterstock The post appeared first on NewsBTC.

Massive 66% XRP Price Rally Hinges On This Key Level

XRP didn’t have the best of years in 2019. In a year when effectively all assets posted jaw-dropping gains — Bitcoin gained 95%, the S&P 500 rallied by over 30%, gold posted an approximate 20% gain — the third-largest cryptocurrency plunged 50%. In fact, all altcoins performed really poorly, as accentuated in this experiment NewsBTC covered. According to a prominent analyst, XRP’s prospects are a bit more bullish for 2020, at least if a key price level can be surmounted in the coming weeks and months. How The Third-Largest Crypto Could Surge 66% For cryptocurrency markets and news site Brave New Coin, analyst Josh Olszewicz recently released an extensive video analysis on the XRP altcoin. After pointing out that the cryptocurrency has been a strict downtrend for the past few months, he pointed to a potential bull case. This being that if XRP manages to break above $0.30, which is where the exists historical resistance according to Volume Profiles and a downtrend trend line, the cryptocurrency could rally 66% to $0.50 in the months following this event. Can XRP Break $0.30? Thus, the question remains — can XRP break $0.30 from here? According to a number of analysts, for sure. Trader Galaxy noted that XRP is “looking ready” to rally 20% or so higher towards $0.28, drawing attention to the existence of a clear uptrend and the fact that the asset has flipped a number of key resistances into supports, boding well for the bullish case. $XRP looking ready pic.twitter.com/dYzMviNQLe — Galaxy (@galaxyBTC) January 22, 2020 Also, another trader pointed out that XRP has finally started to decisively break out of a falling wedge pattern that has constrained price action for the past seven months. The cryptocurrency has also surmounted a key horizontal resistance that has been important on a macro basis. With this in mind, he suggested in the below chart that he expects for XRP to target the 0.382 Fibonacci Retracement of the entire falling wedge over the coming weeks, which suggests a 25% rally to $0.30 is on the horizon. And Olszewicz himself said in the video that if the cryptocurrency can move above $0.24, just slightly above where it is trading at now, a surge to $0.30 could be had due to his use of the Ichimoku Cloud. Not to mention, prominent traders that have been eerily accurate in calling Bitcoin’s price action are bullish on the cryptocurrency markets, meaning that XRP could be dragged up with the rest of the market should BTC rally. Featured Image from Shutterstock The post appeared first on NewsBTC.

Here’s Why Analysts Expect Ethereum To Surge Towards $200

Over the past week, Bitcoin, Ethereum (ETH), and other leading digital assets have finally begun to stall. The price of these assets have tanked across the board, losing over 10% since the highs put in last week. Despite this, analysts are certain that the outlook for some cryptocurrencies remains bullish. Specifically, one trader recently noted that ETH is poised to burst higher, at least from a medium-term perspective. Ethereum’s Medium-Term Trend Bullish, Analysts Assert Satoshi Flipper, a prominent cryptocurrency trader, recently noted that Ethereum’s weekly chart is showing relatively bullish signs after bottoming around $120. He specifically noted that the Heiken Ashi candles, which are a special charting technique used to more easily determine trends, have turned green on the weekly chart, suggesting a medium-term bull trend is forming. Flipper added that Ethereum has broken out of a falling wedge structure that constrained price action for six months, boding well for bulls. $ETH Weekly Heikin Ashi = Bullish pic.twitter.com/OBq5TqGXVt — Satoshi Flipper (@SatoshiFlipper) January 23, 2020 Although Flipper didn’t give a concrete price target in the tweet above, the arrows depicted on the chart suggest that $200 could be had for Ethereum. ETH Will Follow Market Leader Bitcoin Ethereum’s price action, while seemingly bullish right now, is largely dependent on that of Bitcoin. It is common knowledge in the cryptocurrency community that altcoins trace BTC. Fortunately for ETH investors, then, analysts expect for the leading crypto asset to appreciate in the coming months. Per previous reports from this outlet, trader Filb Filb in the latest edition of his Decentrader newsletter wrote that he remains bullish on Bitcoin heading into the block reward reduction in May of this year: “Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.” A rally to $12,500, for some perspective, would require BTC to rally by 50% from current levels. A similar move in Ethereum could put the asset near $250. This call is notable as Filb Filb has been one of the most accurate crypto traders over the past few months. In October of last year showed in a chart that he expected for BTC to surge towards $10,000, then crash to $6,400 to find a macro bottom. Bitcoin did exactly that, giving him a great track record in analyzing digital assets. There’s also the fundamentals that suggest the crypto-asset market, ETH included, will be largely positive in 2020. In December of last year, Changpeng “CZ” Zhao said that he has seen increasing institutional interest in Ethereum, boding well for the market. He added that the long-term trajectory for the industry is decisively positive. Featured Image from Shutterstock The post appeared first on NewsBTC.

Top Analyst Who Called Bitcoin’s Crash to $6,000 Says This is Next

Few analysts have called Bitcoin (BTC) price action over the past few months and years as well as Filb Filb. The pseudonymous trader in 2018 called the cryptocurrency’s bottoming price around $3,000 and the subsequent surge. In October of last year, Filb Filb depicted in a TradingView chart that he expects BTC to surge towards $10,000, then crash to $6,400 to find a macro bottom. Bitcoin did exactly that, moving almost exactly as the forecast on his chart, down to the dates. It was a bit eerie. The trader just issued his latest analysis, showing optimism on Bitcoin’s price trend heading into 2020. Related Reading: Key Google Metric: Bitcoin May Explode Into $100,000 Parabolic Rally Bitcoin to Hit $12,500 By May? In Filb’s latest edition of his Decentrader newsletter, he wrote that with the latest price action in mind — BTC bouncing off the $6,000s and rallying to the $8,000s — he is bullish heading into the block reward reduction in May of this year: “Overall, Bitcoin is exactly where [I] anticipated; slowly grinding up towards previous resistance… I’m very much of the opinion that Bitcoin will reach to at least $12,500 level before the halving.” Should Bitcoin hit at least $12,500 prior to the halving, it will need to rally by nearly 50% from the current price of $8,450. As to why $12,500 makes sense, he noted that that is the “top target” for a bullish inverse head and shoulders chart that is forming on a medium-term basis for Bitcoin. The eerily accurate analyst added that those calling for BTC to fall back to the $5,000s are fearmongering, saying he sees no case for such prices on the macro charts. Not Only Analyst Expecting Pre-Halving Boom It isn’t only Filb Filb who thinks that Bitcoin will experience strong price action around the block reward halving. Per previous reports from NewsBTC, BTC-centric analyst Nunya Bizniz noted that between the four months prior to every halving and the halving itself, there was always bullish price action. In the four months prior to the first halving in 2012, the price of BTC rallied dozens of percent higher from $10 to around $14 by the time of the event; and in the four months prior to the second halving in 2016, the price of Bitcoin went effectively parabolic, running from $432 to $700. Of course, this is a sample size of two, but the premise of BTC rallying into each halving makes sense. Bitcoin is about 120 days away from the halving. What was price action like 120 days prior to the first two halvings? Whether you believe its priced in or not, if past is prologue – volatility may be expected. pic.twitter.com/7peG6Ir0m4 — Nunya Bizniz (@Pladizow) January 10, 2020 This simple analysis suggests BTC will surge strongly into the halving, just as Filb Filb expects. Featured Image from Shutterstock The post appeared first on NewsBTC.

Elon Musk Doubles Down: “Crypto Is a Cash Replacement”

Elon Musk

Two weeks ago, Elon Musk — the prominent entrepreneur that has played a key role in companies like PayPal, SpaceX, Tesla, SolarCity, and a number of other technology firms — published the innuendo-filled tweet below.

This was far from the first time in mentioned cryptocurrency is a joking context on Twitter.

Per previous reports from this very outlet, on April Fool’s Day last year, the technologist joked that Dogecoin, a long-standing digital asset for fun-loving, meme-centric netizens, might actually be his favorite cryptocurrency.

Musk later took the mantle as the first (and last) ‘CEO’ of Dogecoin. The entrepreneur quickly replaced his Twitter biography with a short “CEO of Dogecoin.”

And there was that one time when Musk pretended to be an Ethereum scam bot on Twitter.

While Musk has a habit of poking fun at the cryptocurrency community as seen above, the prominent technologist actually has a developed thesis on digital assets, specifically in regards to what problems they can solve in the future and what threats they can pose in the current.

Elon Musk Bumps Crypto

On an episode of the Third Row Tesla Podcast published just the other day, Musk was asked about his thoughts on cryptocurrency.

Starting his train of thought first with “clever” to “What did you think of Satoshi’s white paper?,” the Tesla visionary said that there are obviously crypto transactions not made in “the balance of the law.”

Musk did, though, say that he sees “crypto as effectively a replacement for cash,” yet made it clear that he doesn’t expect for a digital asset to become “the primary database.”

Musk’s latest comments are somewhat reminiscent of those he made on cryptocurrency nearly exactly one year ago.

Speaking to ARK Invest, an investment group and research firm that earlier this year laid the case for a $1 trillion BTC market cap in a report, Musk said in 2019 that he really likes the underlying structure of the Bitcoin blockchain, but brought up his skepticism of the energy-intensive Proof of Work model.

Yet at the time he asserted that cryptocurrencies in and of themselves are inherently better than paper fiat money, as such assets provide meaningful benefits that are especially useful in underprivileged nations.

Despite his belief that digital assets will replace cash or at least will try to, the legendary entrepreneur has yet to announce any intentions to make a company involving cryptocurrency, though he has been spotted reading a Bitcoin-related book — for whatever that’s worth.

Not the Only “Mainstream” Crypto Fan

The Tesla chief executive is far from the only mainstream entrepreneur or investor that believes in cryptocurrency’s potential to change the current financial system.

Reid Hoffman, former co-founder and executive chairman of LinkedIn, has become a board member of Bitcoin infrastructure giant Blockstream, and even once used the Lightning Network on Twitter as a support for the technology and its potential to change the world.

There’s also Jack Dorsey, the head of both Twitter and fintech company Square. Dorsey said on the Joe Rogan Podcast that he thinks Bitcoin will soon become the native currency of the Internet, before adding in an earnings call for Square that he “loves Bitcoin.”

Even some U.S. politicians have entered the Bitcoin game. Kelly Loeffler was the chief executive of Bitcoin exchange Bakkt before being sworn in as a Senator, and Congressman Patrick McHenry called Bitcoin an “unstoppable force” in a session on the Hill.

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Brad Garlinghouse: Bitcoin Great As Store of Value, Not as Payment System

Bitcoin Education

11 years in, Bitcoin has arguably not yet become what its anonymous creator, Satoshi Nakamoto, wanted the project to become: peer-to-peer digital cash.

Although BTC is being used for commerce in some contexts — evidenced by BitPay’s $1 billion in primarily BTC purchases in 2018 and by products like Flexa, which allows users to use Bitcoin, Ethereum and more in mainstream chains.  — it is not yet widely adopted, with only a small percentage of individuals holding it (most reports say under 10%) and an even smaller percentage of businesses (Coinmap says a mere 16,000 businesses worldwide accept Bitcoin) directly accepting it.

While this is not the most popular of opinions in the cryptocurrency community, Ripple’s chief executive Brad Garlinghouse recently threw his weight behind this idea.

Bitcoin Isn’t a Viable Payment System… Yet

At a recent Wall Street Journal event at Davos, Journal House 2020, Garlinghouse took some time to talk about his thoughts on Bitcoin. Sticking to previous comments of his, Garlinghouse asserted that he is ” bullish on BTC as a store of value, but not for payments.”

As to why this is, Garlinghouse joked that “You don’t want to use BTC at Starbucks b/c by the time you get your coffee, it’ll be cold,” referencing the fact that most Bitcoin transactions take at least 10 to 20 minutes to become relatively immutable on the blockchain.

Garlinghouse isn’t the only one who has recently brought up such sentiment.

Speaking to CNBC in a recent interview at the World Economic Forum event in Davos, Ray Dalio — one of the world’s most prominent investors, who heads Bridgewater Associates — talked Bitcoin.

Halfway through the interview, the leading Wall Street investor said that he thinks Bitcoin currently does not satisfy the two leading use cases of money, store of value and medium of exchange, due to market volatility. Dalio added that because of this, central banks are unlikely to hold the cryptocurrency, but will instead hold gold.

Moves Being Made to Make Bitcoin Usable

Although the consensus among some of Bitcoin’s most committed proponents is that BTC is not yet ready as a form of money, there are moves being made towards making Bitcoin easily usable.

Just recently, fintech giant Square’s in-house cryptocurrency division released the Lightning Development Kit (LDK). This kit will allow developers of Bitcoin software to more easily integrate the Lightning Network, a second-layer scaling solution that effectively migrates some transactions off the main chain to allow for lightning-fast, effectively free, and cross-chain transfers.

Also, the Microsoft-backed crypto infrastructure firm Bakkt just revealed that it is moving ahead with a consumer cryptocurrency application. While details are still scant, The Block last year reported that Starbucks, which has also backed Bakkt, may accept Bitcoin in stores through the app.

On the regulatory side of things, U.S. House Representatives DelBene, Schweikert, Soto, and Emmer introduced the Virtual Currency Tax Fairness Act of 2020.

The bill, should it become law, would solve a primary issue in spending cryptocurrency for day-to-day transactions: smaller transactions of crypto-to-fiat would not be subject to potential capital gains taxes that chip away at the wealth of Bitcoin holders.

The Act will ensure that cryptocurrency transactions where the gains made by an individual would be under $200 will be exempt from capital gains taxes, effectively allow Bitcoin purchasers to buy almost any everyday item — from lunch to toilet paper to coffee — without having to deal with the IRS.

The bill currently has bipartisan support, and members of Congress and other governmental bodies have shown an increasing amount of support towards Bitcoin and its ilk.

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World Economic Forum : Central Bank Digital Currencies a Popular Topic At Davos

World Economic Forum

Over the past few days, some of the world’s most powerful people — the 1% of the 1%, so to speak — have convened in Davos, Switzerland to talk just about everything at events, namely the World Economic Forum of 2020.

Years ago, a mention of words “Bitcoin” and “cryptocurrency” would likely elicit laughter, but this year, cryptocurrencies, or at least “digital assets,” were a leading topic.

More specifically, there was a buzz at the Davos event about the advent of central bank digital currencies (CBDC), some of which will soon be launching, and could have a massive impact on how the world’s finances work.

Digital Currency Becomes a Hot Topic at Davos

Ever since Facebook and its partners launched the Libra initiative in June of last year, there has been an ever-growing buzz around digital currencies; one of the world’s most powerful companies in Facebook launching a cryptocurrency had central banks realize they had to do something to stop a corporation from asserting control over the financial system.

The World Economic Forum just released a framework for CBDC dubbed the “CBDC Policy‑Maker Toolkit.” The 28-page guide is aimed at giving central banks a form of assessment of whether or not they need to develop a digital currency to benefit their economy. =

In a similar manner, the Bank of International Settlements (BIS), most often called the “central bank for central banks,” issued an extensive report on the latest developments in the fledgling CBDC space on Thursday.

Fiat & Digital Currency
The Problems with Fiat Currency & How It’s About to Go Digital

The report indicated that 40% of the 66 central bank respondents have “progressed from conceptual research to experiments, or proofs-of-concept; and another 10% have developed pilot projects… Every central bank that has progressed to development or a pilot project is an EME institution.”

This survey came two days after a press release by the Bank of England revealed that the central banks of Canada, the United Kingdom, Japan, the European Union, Sweden, and Switzerland just joined hands with the BIS to research CBDCs in tandem.

The BIS has formally backed the launch of CBDCs across the globe, but has said asserted that it isn’t the biggest fan of Bitcoin or more decentralized digital assets.

All this was done to seemingly force discussion around CBDCs at Davos — not to mention, there were a number of events and speeches focused on the rise of digital currency.

Leading CBDC Projects

With CBDCs becoming all the rage as of late, it is important to look at which countries and central banks have a stake in this race, if you want to call it that anyway:

  • France’s finance minister late last year revealed its intent to launch a pilot digital currency project in the first half of 2020.
  • China is expected to be the first country to launch a CBDC, with reports indicating that there will in the next few weeks be a pilot testing a digital currency in certain cities, including China’s version of Silicon Valley, Shenzhen.
  • The Bank of Canada was recently presented on a CBDC, though officials there have made no indication that a pilot currency is on its way.
  • The U.S and the Federal Reserve’ representatives have shown hesitance to go ahead with researching cryptocurrency. Though, there are some efforts being made to research a digital dollar.  
  • Venezuela technically has its own cryptocurrency, the “Petro.” Though, there is little information about the usage of the asset.
  • Documents have suggested the Reserve Bank of India and other financial authorities are looking into the creation of a Digital Rupee.

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Key Google Metric: Bitcoin May Explode Into $100,000 Parabolic Rally

Since Bitcoin investors got a taste of parabolic price action in early-2019, during which BTC surged from the low-$3,000s to $14,000 in a few weeks’ time, they have been craving more. According to a Google Trends analysis, another parabolic rally is about to form again in the cryptocurrency market again. Considering historical rallies, this next bull market could bring BTC above $100,000, some analysts have suggested. Google Trends Suggests Bitcoin to Soon Explode Cryptocurrency analyst Cryptokea recently noted that the worldwide Google Trends, well, trends for the search term “Buy Bitcoin” have recently hit a seven-month high — the highest since June 2019. More specifically, the metric has hit a “10” on a long-term basis, with the metric’s maximum being 100. This may not seem relevant, but Kea notes that each time a “10” reading has been seen for the “Buy Bitcoin” term, the cryptocurrency market always found itself at an essential inflection point. When a “10” was seen in November 2013, it marked a long-term top to a BTC bull market that brought the cryptocurrency from irrelevancy to above $1,000. 1/ Googling for "Buy Bitcoin" just reached a 7 months high (Score 9). The long-term upwards trend is undeniable. The last time the score reached a 10 was:Nov '13 (bull top),May '17 (price on parabolic run-up),Jun '19 (medium-term top)>Feb '20 (price on parabolic run-up?) pic.twitter.com/tkdXIEvM3Q — CryptoKea (@CryptoKea) January 20, 2020 When a “10” was seen in May 2017, it marked the beginning of an exponential bull run that brought BTC from under $3,000 to $20,000 in around eight months’ time. And when a “10” was seen in June of 2019, it marked the $14,000 local top for Bitcoin. The latest Google Trends “10,” Kea said, likely marks the start of a parabolic run-up that will bring prices much higher than the $14,000 high. He added that the “long-term upwards trend” for this metric, which is correlated with growth in the price of Bitcoin, is “undeniable,” pointing to a logarithmic corridor confirming that over time, more and more people want to buy the cryptocurrency. Not Only Massively Bullish Sign It isn’t only the Google Trends data that suggests Bitcoin will soon go parabolic and explode past $10,000, $20,000, and potentially beyond as time elapses. An analyst going by SatoshiWolf recently laid out three macro reasons why BTC is poised to explode higher in the coming year. They are as follows, as reported by this outlet previously: Firstly, the recent price decline that Bitcoin has seen from $14,000 to a low of $6,400 has been marked by decreasing volume, which he claims is “bullish.” Indeed, falling volumes in a downtrend would indicate that the sellers are gradually losing control. Secondly, BTC surged off the key $6,400 macro support level, which has been a level of utmost importance since early-2018, in December on high buying volumes. This indicates bulls are in control. And lastly, the block reward reduction for Bitcoin, which will decrease the inflation rate of the cryptocurrency by half, is on the horizon (May 2020). This event has been found to be correlated with upswings in the market. There’s also a price model from quantitative analyst PlanB which shows that after the halving, the fair value of BTC will rise to $55,000 to $100,000. The model has been backtested to a 95% R squared, which is extremely accurate in statistics terms. Some have been even more optimistic, saying that per previous trends, the next bull run could bring the price of the cryptocurrency to $400,000, equating the market cap of BTC to that of gold. Featured Image from Shutterstock The post appeared first on NewsBTC.

Case for the Bull: Bitcoin Executive Touts Bitcoin Price Rise on CNN

Bitcoin Bull Run

There’s no doubt Bitcoin ended 2019 on a sour note. After topping at a price of $14,000 in June of last year, the price of the leading cryptocurrency tumbled and tumbled, falling all the way to $6,400 by the middle of December.

Although prices have recovered since then, some have questioned if this bullish momentum will last, or if it is only a matter of time before Bitcoin bears begin to take this market back down into $6,000s and maybe even lower.

A prominent industry executive recently tried to reassure investors that yes, the momentum will last, saying that he expects Bitcoin to see much upside in the coming 12 months.

Why Bitcoin Suisse is Bullish On, Well, Bitcoin

Last week, chief executive of crypto financial services company Bitcoin Suisse, Arthur Vayloyan, sat down with CNN’s Swizterland channel to talk about his company’s thoughts on the cryptocurrency market for 2020.

He (unsurprisingly) expressed a positive sentiment, laying out a number of reasons why he expects the following year to be a bullish one for digital assets.

The root of his argument is the upcoming Bitcoin block reward reduction or “halving,” which is a cyclical event built into the code of the network that will reduce the number of BTC issued per block by half, effectively resulting in a 50% decrease in the inflation rate of Bitcoin.

Vayloyan said that he believes this event will cause “quite positive” price action:

2020 is one of those years where the halving takes place, roughly mid of May. And when you look back and take history as a little bit of a prediction, or at least an idea of what could happen, it so happens that price movements were actually quite positive in those years. Or in the year that followed.

Some have pushed back against this sentiment. Bitmain’s Jihan Wu, for instance, last year cast doubt on the bullish effects of the halving, though Vayloyan was quite certain this event will have a positive effect:

It will be interesting, but I would say the general rule is it will go up.

Indeed, a price model created by institutional quantitative analyst PlanB, as the pseudonymous market analyst goes on Twitter, found that the fair price of BTC will rise to above $50,000 after the halving.

His model effectively states that the more scarce a precious asset is, the more its market capitalization will be. The model has been accurate to a 95% R squared when backtested, and BTC always moved to trade at the fair price as predicted by the model.

Other Bull Factors

This wasn’t the only reason the Bitcoin Suisse executive was optimistic about the digital asset market. He specifically looked to the caliber of individuals and institutions that are entering the space, which he claims can indicate how mature a certain industry may be:

Crypto assets, in general, are here to stay. We have seen a major change in the participants. Before, it was the interested technical people with a high affinity to something new. But more and more we see now institutions coming in — be it the banks, be it the central banks even. And they look at the technical opportunity that stands behind the crypto technology.

He added that due to this market’s ever-growing size, institutions will continue to focus on the cryptocurrency and blockchain markets.

This is true — Fidelity Investments, the Intercontinental Exchange through Bakkt, and other mainstream financial institutions have begun Bitcoin initiatives to help service other institutional clients, opening up this market to potentially billions of dollars worth of free capital.

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No Bitcoin Isn’t Banned In India: Central Bank Clarifies

Over the past few years, India has begun attempts to crackdown on its shadow economy, which the government feared was leading to a loss in tax collection, which is seemingly a byproduct of the country’s large reliance on cash and a relatively large unbanked population.

This culminated in an attempt at demonetizing banknotes above a certain value threshold. A report from the Reserve Bank of India (RBI) has indicated that 99.3% of the demonetized banknotes were deposited into banks, indicating that the attempt may have worked.

While some still debate that the cash ban failed, authorities in India have eyed other targets since the 2016 regulation, specifically looking at Bitcoin and other cryptocurrencies. The RBI on occasion has cited potential terrorist financing and money laundering as reasons to target digital assets, as have many other financial regulators.

In the middle of last year, there was that one document shared by Bloomberg Quint indicating that those who involve themselves in the “sale, purchase and issuance of all types” of crypto assets, including Bitcoin, could be subject to a ten-year jail sentence and/or fine.

But, it appears that none of this stringent regulation will be enacted. In fact, the RBI just confirmed it has no intention to ban the ownership of Bitcoin in India, seemingly quashing the document that circulated the web last year.

India Clarifies Crypto Stance

According to an article from The Economic Times of India, which cited a document from the RBI submitted to the country’s supreme court, the central bank has not officially prohibited any form of virtual currency in India:

“Firstly, the RBI has not prohibited VCs (virtual currencies) in the country. The RBI has directed the entities regulated by it to not provide services to those persons or entities dealing in or settling VCs.”

The document continued that instead of a full-fledged ban that some expected and the Bloomberg Quint document indicated, the RBI has “ringfenced entities regulated by it from being involved in activities that pose reputational and financial risks along with other legal and operational risks,” seemingly indicating that crypto exchanges are still heavily restricted or banned by the country.

Sonny Singh, CCO of BitPay, said in an interview with Bloomberg earlier this year that the legalization of Bitcoin in India could push the cryptocurrency higher, but it isn’t clear if this is the type of legalization or regulatory clarification he was hinting at in making this comment.

Similar Story In China: Owning Bitcoin is A-OK, Trading It Isn’t

India’s regulatory stance on Bitcoin and other digital assets is actually very reminiscent of that of China.

At one time, China was literally the world’s hub for all things Bitcoin; the industry’s once-largest company, Bitmain, was based in the country, mining power is centralized in that region, and some of the largest cryptocurrency investors came from China as evidenced in the once-large volumes (larger than they are now) on Asian exchanges.

But, in 2017, a crackdown on digital assets began that the People’s Bank of China said reduced publicly-reported trading volume between the Bitcoin and Chinese Yuan by 99%.

The crackdown continued in 2019, when the government sensed that a crypto economy had sprung up again.

This time, the PBOC forced a number of crypto exchanges to shutter their operations in China, with some reports (and my sources) indicating that a number of blockchain companies with their own digital assets were forced to find a new place to domicile their business.

While this trading ban is in place, one of the country’s local technology-focused courts ruled that Bitcoin is a form of property in China, meaning that it is legal to own, but to trade, maybe not so much.

The post No Bitcoin Isn’t Banned In India: Central Bank Clarifies appeared first on Blockonomi.

Bitcoin Payments: Bakkt Reveals More App Details & Square Bags Patent

Bitcoin, when it was first launched, was marketed (or proposed, rather) as a “peer-to-peer electronic cash” for the world.

While many other cryptocurrencies have followed Bitcoin down this path, no digital asset has become a widely-used form of digital payment, even in places where traditional payment systems can be extremely slow, expensive, or completely inaccessible.

Indeed. Ray Dalio, one of the world’s most prominent money managers and a strong proponent that central banks may be getting out of control, was recently quoted as saying in an interview with CNBC that Bitcoin is too volatile to be a proper store of value and medium of exchange.

But, over the past 24 hours, two large companies working with cryptocurrencies have announced developments that could help Bitcoin and other digital assets become better forms of payment.

Square Bags Patent Outlining Crypto-To-Fiat Transactions

Square, a fintech company headed by Twitter’s Jack Dorsey that in 2018 integrated a barebones Bitcoin exchange, was just awarded a crypto-related patent.

This patent outlines a system that will allow fiat to be rapidly converted into “non-fiat” instruments, with the document mentioning the word “Bitcoin” and “cryptocurrency” (and Ethereum, too) on a number of occasions:

The present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency.

The network and technology defined in the patent could theoretically enable seamless crypto-to-fiat and fiat-to-crypto transactions, potentially mitigating the volatility element mentioned earlier that Dalio described as a main factor holding back Bitcoin’s validity as a form of money.

This isn’t the only crypto payments-related announcement Square has made recently.

Per previous reports from Blockonomi, Square Crypto, the firm’s internal blockchain-focused division, unveiled the Lightning Development Kit (LDK) on Tuesday.

This is kind of like a traditional software development kit (SDK) but focused on the Lightning Network, a second-layer scaling solution that effectively migrates some transactions off the main chain to allow for lightning-fast, effectively free, and cross-chain transfers.

The LDK, the post indicates, will allow wallet developers to create “custom” integrations of the Network in an “easy, safe, and configurable way” through an API, demo apps, and other technical tools.

Essentially, sans technical terms and crypto lingo, this product should make the integration of the Lightning Network into existing or up-and-coming cryptocurrency software much easier than it is, and should, therefore, increase the adoption of the scaling solution with ample time.

Bakkt Reveals More Details About Starbucks-Associated Crypto App

In a similar strain of news, on Wednesday, Adam White, president of cryptocurrency infrastructure giant Bakkt, revealed more details about his company’s long-awaited consumer application.

The Microsoft- and Intercontinental Exchange-backed company has been focusing on Bitcoin derivatives and financial vehicles for institutional clients since its launch, but intends to expand into consumer infrastructure with this app.

Bakkt
Read: What is Bakkt?

Per a report from The Block, White said at one of the outlet’s events in Davos, Switzerland that the consumer app will not be constrained to just cryptocurrencies like Bitcoin, but will also be able to interact with other digital values such as loyalty reward points and digital representations of equities.

The industry executive also said that the application may include the trading of assets, a portal for merchants, and other digital assets that “would make the app more similar to a traditional fintech product like PayPal than a crypto-native offering,” The Block report read.

In 2019, the same outlet broke news that Starbucks — which has backed Bakkt — may be accepting Bitcoin through the upstart’s mobile application, though it isn’t clear if this plan is still on the table.

But, should it be, Bakkt’s consumer cryptocurrency app could mark a massive step forward in this industry’s goal to become a key part of payments and broader finance.

The post Bitcoin Payments: Bakkt Reveals More App Details & Square Bags Patent appeared first on Blockonomi.

Bitcoin’s Price Will Go Parabolic Above $10,000 If This Level Holds

Bitcoin has been on an absolute roll over the past month, surging from $6,400 to $9,200 in a jaw-dropping fashion. Altcoins have followed suit, posting even more impressive gains as buyers have finally stepped in. Related Reading: This Reason Is Why Analysts are Worried About Ripple’s XRP Despite 35% Rally Prices have since stalled, with BTC now trading at $8,500, as just reported by NewsBTC. Despite this 8% drop from the local high, a prominent trader is sure that as long as Bitcoin holds a price level, it will remain in a short-term parabolic trend that will bring the cryptocurrency’s price into five digits. Bitcoin Needs to Hold This Level to Go Parabolic Over the past few months, there have been few analysts charting out Bitcoin’s price action as eerily accurate as Dave the Wave. The pseudonymous yet respected analyst called in the middle of 2019 that BTC would bottom at $6,400, and it did, with the price rebounding decisively off that level on at least one occasion. Dave recently posted the below analysis on Monday, showing that BTC is in the midst of going near-vertical in a short-term parabolic uptrend. The parabolic uptrend he depicts is playing out, though for it to continue, the price will need to hold $8,600. If the price can hold that level over the coming day or two, his chart suggests that Bitcoin will continue to go parabolic above $10,000 in a move that will bring it 40% higher from the current price of $8,500 to $11,500. Shorter term Fractal still alive… pic.twitter.com/NoY5igvRCw — dave the wave (@davthewave) January 21, 2020 Although BTC is on the verge of losing the parabolic uptrend line, there is a confluence of bullish technical and charting-related factors that support bulls. Firstly, Bitcoin, with this latest surge higher, has broken above a descending channel that has constrained upward price action for over six months. Secondly, a key price signal is about to flash on a macro basis. This signal being a bullish cross in the one-week Moving Average Convergence Divergence (MACD) indicator. The last time this technical signal was seen was in February of 2019, just months prior to a massive price explosion that brought BTC from the depths of the $3,000s to as high as $14,000 in a few months’ time. Long-Term Parabolic Trend Forming Too Although the short-term parabolic trend seems to be intact as shown by Dave, the long-term one for Bitcoin, one that will bring prices above $100,000, has yet to form. As reported by this very outlet earlier, Bitcoin will need to break above a certain price point to confirm that a rally to $50,000 and beyond is on its way: “History tells us that a weekly close above the 0.65 fibonacci will send BTC into a new parabolic bull run. The 0.236 fib has often acted as a bottom and the 4.23 fib has been exceeded each time. This means a weekly close above $14,200 would see BTC reach over $75,000,” trader NebraskanGooner remarked while referencing the levels marked on the below chart. Featured Image from Shutterstock The post appeared first on NewsBTC.

No, gold bug Peter Schiff’s Bitcoin wallet did not “corrupt”

If you were around on Crypto Twitter last week, you likely remember Peter Schiff—CEO of Euro Pacific Capital and a long-time skeptic of Bitcoin—was all the rage on the weekend; I opened up my timeline and Schiff’s name appeared again and again and again.

For those who missed the memo, on Saturday he wrote in a viral(ish) tweet that he “lost all the Bitcoin I have ever owned,” citing his belief that his “wallet got corrupted somehow and my password is no longer valid.”

Unsurprisingly, everyone and their mother in the cryptocurrency industry was quick to respond to Schiff with skepticism. Some stated that it is more likely that Schiff lost his password than the “wallet corrupting”; Others responded with the now-outdated “OK, boomer.”

The common theme among these rebuttals being that no one believed the wallet software Schiff was using suddenly bit the dust.

The libertarian stuck to his guns, though, until he didn’t. Just today, Schiff revealed that for once, the community was right, and his wallet, revealed to be from Blockchain, did not corrupt.

Schiff’s Bitcoin loss was not a wallet problem

In an update to this imbroglio posted Tuesday, Schiff wrote that the “Bitcoin mystery is solved,” revealing that he mistook his PIN for his password, meaning that he can’t sign into his account:

“I tired logging back in using my pin, which was the only ‘password’ I had ever known or used. I also never had a copy of my seed phrase.

He continued by asserting that his problem “was not a corrupted wallet, but my confusing a PIN for a password.”

What did Schiff lose?

Regardless if it was the wallet that was corrupted or password mismanagement, Schiff’s Bitcoin is most likely gone. Gone forever. But what exactly did he lose? Did he have a secret BTC stash of millions wiped from existence?

No, not exactly. In fact, it seems that the sum lost is under $2,000, “all the Bitcoin [he] has ever owned.”

A small portion of the sum was an “about $100” gift of BTC he received. The majority was from the time Schiff posted his Bitcoin address on Twitter after being urged to do so by Anthony Pompliano, one of Bitcoin’s loudest fans on Twitter—I’m sure you’ve seen the incessant stream of Pomp’s “the virus is spreading” tweets.

For some reason, many were quick to send Schiff thousands of satoshis, the smallest unit of BTC. And soon enough, he had over 0.1 of an entire coin sitting pretty in his wallet.

The funny thing is, he didn’t really lose anything in this wallet debacle, (aside from internet popularity points anyway).

After he bagged the nearly $2,000 in BTC donations last year, the gold proponent asserted on Twitter that he was committed to becoming a  “HODLer,” adding that he will “go down with the ship.” This was presumably a critique of the Bitcoin industry’s incessant desire to HODL cryptocurrency, even if the industry’s backdrop is harrowing.

Not a laughing matter, some say

While many have taken Schiff’s loss of Bitcoin in jest, making statements like it “adds to BTC’s scarcity” or “OK, boomer,” some have said that it highlights a larger issue in the cryptocurrency space: the high barriers to entry in using Bitcoin and cryptocurrency software for simple tasks, and the tradeoffs between security and convenience.

Vitalik Buterin, the founder of the second-largest cryptocurrency Ethereum, posted the tweet below in the midst of the discussion surrounding the tweet. In it, the Russian-Canadian crypto wunderkind asserted that those saying “crypto is what it is, it’s your job to be super-careful and write down backup seeds” have him disappointed.

The post No, gold bug Peter Schiff’s Bitcoin wallet did not “corrupt” appeared first on CryptoSlate.

Bitcoin Just Slid Under $8,500: Price Must Hold This Level to Satisfy Bulls

Since the day started (PST), Bitcoin has plunged, collapsing from the daily high just above $8,700 to $8,460 as of the time of writing this — a drop of just around 3%. Right now, prices are the lowest they have been in days, nearly a week with BTC failing to maintain the bullish momentum seen last week when the cryptocurrency market surged dozens of percent higher, bringing Bitcoin to $9,200.  With this latest plunge, investors have begun to fear that the rally that brought BTC from $6,400 to $9,200 is over. But is it really? Related Reading: These 3 Reasons Are Why Bitcoin’s Price May Soon Explode Past $10,000 Is This is For Bitcoin? Right now, it doesn’t seem like bulls are not done. As seen in the chart above, Bitcoin is currently trading at the level which previous rapid sell-off events over the past four days have stopped, and thus where prices rebounded. In fact, BTC tapped the level of ~$8,460 two previous times prior to bouncing higher, as per the charts. Not to mention, despite the recent drop, the price of Bitcoin remains tightly coiled in a $250 range between $8,500 and $8,750 as pointed out by trader and noted industry investor Josh Rager.  $BTC – clear range of $8500 to $8750 right now on lower time frames Currently not trading and watching for better setups Will also take a look at altcoins with potential to outperform Bitcoin short term pic.twitter.com/HRJoMZNaDj — Josh Rager 📈 (@Josh_Rager) January 21, 2020 So unless a new low is set or a key short-term time frame candle closes under $8,500, it seems bulls remain in control. Indeed, per previous reports from NewsBTC, prominent cryptocurrency commentator Nik Patel explained in a recent blog post that the fate of Bitcoin’s recent bull trend hinges on it holding above $8,472: “Whether price falls off for the remainder of the week…is uncertain for now, as we have not yet closed below the resistance turned support at $8472 – this level giving way would be my primary indicator that the rally is likely over, at least short-term,” he explained. Related Reading: Top Crypto Analyst Lays This Case for 100% Cardano (ADA) Price Surge Bulls Convinced Rally Not Done Yet Along with Bitcoin currently holding key price points, a number of leading analysts are certain that it is only a matter of time before BTC legs higher yet again, providing more of a bull case. Filb Filb, a cryptocurrency trader who called Bitcoin’s entire price trend from October to now, said that he expects for BTC to move towards $9,555 in the coming days. And Dave the Wave, a trader who called BTC’s bottom at $6,400, said that he expects for BTC to hit $11,500 by the middle of February. Related Reading: Here’s Why Wall Street Veteran Thinks Bitcoin Isn’t a Viable Money, Yet Featured Image from Shutterstock The post appeared first on NewsBTC.

Square’s Crypto Division Finally Releases Details of First Bitcoin Product

LDK

Last year, Jack Dorsey — the chief executive of both Square and Twitter — began to openly shill Bitcoin in a number of public channels.

For instance, on the Joe Rogan Podcast, he revealed that he thinks the cryptocurrency will become a native currency of the Internet, and during an official earnings call for his fintech company Square, he took some time to tout his love for Bitcoin.

Naturally, his love for Bitcoin extended into his companies, with Square announcing a new division called Square Crypto in 2019.

Dorsey’s premise was that someone told him the most important thing he could do for Bitcoin is to “make the broader crypto ecosystem better,” hence the creation of this new division to do “what’s best for the crypto community and individual economic empowerment.”

Throughout the entire hiring process of this new division, the team photos, memes published on Square Crypto’s Twitter page, and even the grant-giving process, it wasn’t exactly clear what this team was working on.

The team leader, a former senior employee at Google, did mention products meant to improve the usability of Bitcoin as a day-to-day form of money but was slow to elucidate any ventures it was eyeing.

But today, we got our answer.

Square Crypto Unveils First Product, a Bitcoin Lightning Network Developer Kit

According to a Square Crypto blog post published Tuesday, the company has launched something called the Lightning Development Kit (LDK).

This is kind of like a traditional software development kit (SDK) but focused on the Lightning Network, a second-layer scaling solution that effectively migrates some transactions off the main chain to allow for lightning-fast, effectively free, and cross-chain transfers.

The LDK, the post indicates, will allow wallet developers to create “custom” integrations of the Network in an “easy, safe, and configurable way” through an API, demo apps, and other technical tools.

As to what exactly the LDK can be used for, at least from a top-down perspective, Square Crypto gave three examples:

1) Adding Lightning capabilities to existing bitcoin wallets — no need to create a separate wallet just for Lightning. 2) Supporting multi-device, multi-application access to a single wallet. 3) Allowing wallets to make UX/security/privacy tradeoffs such as external transaction signing and customizing their state backup to a cloud service.

Essentially, it should make the integration of the Lightning Network into existing or up-and-coming cryptocurrency software much easier than it is, and should, therefore, increase the adoption of the scaling solution with ample time.

It’s kind of like a shoehorn, but with the shoe being Bitcoin software and the foot being the Lightning Network…

Very Good Timing

The release of the LDK comes at a very good time, with the Lightning Network once again entering the minds of Bitcoin and cryptocurrency enthusiasts.

Per previous reports from Blockonomi, Bitcoin proponent Hodlonaut has started what is known as the Lightning Network Trust Chain for the second time.

Last time, this challenge, which sees individuals use the Lightning Network and large BTC transactions to create a link between Twitter accounts, gained much steam. Dorsey and LinkedIn and Microsoft board member Reid Hoffman participated in the Chain, amongst other prominent members of the community.

And as a result, the Lightning Network saw a flurry of growth, with the capacity of the Network nearly doubling in value during the time the chain was being formed.

With the arrival of the second Trust Chain and Square Crypto’s new Lightning Network kit, this Bitcoin scaling solution could see a micro-renaissance, so to say.

The post Square’s Crypto Division Finally Releases Details of First Bitcoin Product appeared first on Blockonomi.

Crypto Intiative Libra Loses Yet Another Partner in Telecom Giant Vodafone

Libra

In the first half of 2019, Facebook’s digital currency initiative Libra was all anyone could talk about.

Even though the details of the venture were not unveiled until June, rumors about the international cryptocurrency quickly spread across the industry, with some even going as far as to suggest that the hype around this product helped drive Bitcoin from the $3,000s to $14,000 in a few months’ time.

When the project finally launched later in 2019, expectations were quickly deflated and the air in the Libra bubble, so to speak, disappeared.

You see, the project was under much scrutiny, with even President Donald Trump weighing in to claim that Libra (and Bitcoin too) could be dangerous.

Due to this scrutiny, many of Libra’s partners, who signed tentative agreements to be a part of the cryptocurrency venture, jumped ship. eBay, Visa, and Mastercard were among the firms that bid adieu to the project.

It appears it’s getting worse though, with Libra recently losing its latest partner, seemingly due to regulatory pressure from jurisdictions across the globe.

Yet Another Libra Member Jumps Ship

According to a BBC report published Tuesday, a spokesperson for Vodafone, a primarily British telecom provider, has decided to “withdraw from the Libra Association.”

The Association, for those unaware, is the group that is managing the creation and operation of the Libra blockchain, which will have its own cryptocurrency. “We have said from the outset that Vodafone’s desire is to make a genuine contribution to extending financial inclusion,” the spokesperson added, seemingly trying to show that this move was not made in ill intent to the goals of financial inclusion.

A Libra spokesperson asserted in the wake of this departure that the underlying structure of the project remains intact:

The design of Libra’s governance and technology ensures the Libra payment system will remain resilient.

Although Vodafone will not be moving forward with Libra, the Association still has a swath of prominent backers per the official website, some of which are as follows: Legendary venture capital firm Andreessen Horowitz (a16z), Uber, Spotify, Lyft, Coinbase, and Union Square Ventures.

Not to mention, by the time of Libra’s launch (if it happens), the group intends to have over 100 partners.

China Will Be First In Widespread Digital Currency Game

Although Libra may still be backed by some of the world’s most powerful technology companies despite these Association departures, it appears it won’t be the first to launch a multi-million-person-facing digital currency in any meaningful capacity.

That title, right now at least, is most likely to go to China. Yes, China, the world’s biggest country by population size alone.

Per a report published by the South China Morning Post just recently, the People’s Bank of China (PBOC) confirmed in a statement that “smooth progress” has been made on the development of digital yuan currency.

Further details were rather scant, though this comes hot on the heels of a report that Mu Changchun, the official in charge of the development of China’s crypto asset, said the “top-level design, formulation, functional research, and testing” has been completed.

The PBOC is expected to soon roll out a pilot project in the cities of Shenzhen and Suzhou, the former of which being China’s iteration of Silicon Valley.

There will be a first small-scale phase, which is purportedly slated to begin in the coming weeks, and a second, during which the digital currency will be widely promoted in the two aforementioned cities sometime in 2020.

The post Crypto Intiative Libra Loses Yet Another Partner in Telecom Giant Vodafone appeared first on Blockonomi.

Bloomberg: Bitcoin Price Just Printed Key Sell Signal At $8,600

Bitcoin

Since hitting $9,200 late last week, Bitcoin (BTC) has paused, with bulls failing to maintain a momentum that brought the cryptocurrency 43% higher in a month’s time at the peak of the recent price surge.

As of the time of writing this, the cryptocurrency has retraced 8 or so percent to $8,600.

Although some argue this correction is a precursor to a full-on return to a decisively bullish market, Bloomberg recently noted that the cryptocurrency just flashed a key selling signal from a technical analysis perspective, creating a bearish case for Bitcoin.

Bloomberg Claims Key Bitcoin Sell Signal Just Flashed

Per an article published by Bloomberg on Tuesday, Bitcoin’s amazing start to 2020, which has made it effectively the best-performing “large” asset of the year thus far, indicates “potential trouble ahead.”

The cryptocurrency’s Global Strength Indicator (GTI), “a measure of upward and downward movements of successive closing prices,” has just registered a sell signal.

This is notable as this is purportedly the first sell signal seen since Bitcoin peaked at $14,000 ($12,000 on Bloomberg’s chart due to this being a chart of the slightly-different CME futures) in June.

Also, a sell signal almost appeared when BTC pumped 40% in a day to $10,000 after President Xi Jinping’s blockchain endorsement.

GTI indicator shows Bitcoin receiving a new sell signal

An analyst Bloomberg talked to, Matt Maley of Miller Tabak & Co., remarked that the bearish technical analysis outlook has been echoed by the fundamentals:

“On a technical basis, it’s getting overbought and more importantly for political reasons I think there are just too may political headwinds for a cryptocurrency to get the kind of traction the bulls think it will.”

This was further underscored on Tuesday when Ray Dalio — co-founder of Bridgewater Associates, one of the world’s leading hedge funds and icons on Wall Street — asserted in an interview with CNBC at Davos’ World Economic Forum event that he believes Bitcoin isn’t a good form of money in the slightest.

He said that he thinks Bitcoin is a bad store of value because of its volatility and poor medium of exchange, presumably citing the fact that the cryptocurrency has a small transactional throughput.

Dalio added insult to injury when he said that when it comes to it, central banks won’t buy Bitcoin to hedge risk, but will instead buy precious metals like gold.

This partially quashed a thesis of some investors that some central banks will start to diversify into Bitcoin to better manage risk and potentially set the stage for a cryptocurrency revolution.

Other Prominent Sources Are Actually Bullish On Bitcoin

Despite this, other prominent sources are bullish on Bitcoin.

Per previous reports from Blockonomi, senior commodities strategist Mike McGlone of  Bloomberg noted in an extensive report on the cryptocurrency market that Bitcoin is preparing to have a positive year.

McGlone wrote that he expects for Bitcoin to extend its gains back towards $14,000 sometime this year. McGlone specifically looked to his sentiment and the growing mass of evidence that suggests Bitcoin is becoming a safe-haven investment that is closely correlated with gold.

Fundstrat Global Advisors, a top market strategy and sector research company based in New York, also weighed in.

It wrote in a report published earlier this year that they expect for BTC’s price to see 100% appreciation in 2020, citing three reasons:

  1. Bitcoin’s block reward reduction that will cut its inflation in half could create positive supply-demand dynamics that favor bulls
  2. Geopolitical risk could prove Bitcoin’s value as a safe-haven or alternative investment play
  3. The 2020 elections for the Presidency in the U.S. could affect markets.

The post Bloomberg: Bitcoin Price Just Printed Key Sell Signal At $8,600 appeared first on Blockonomi.

These 3 Reasons Are Why Bitcoin’s Price May Soon Explode Past $10,000

Over the past month, Bitcoin (BTC) has absolutely exploded higher. In fact, the cryptocurrency is up around 40% since the low of $6,400 put in during December of last year. While many analysts have said that this jaw-dropping rally constitutes a macro reversal that will thrust BTC back into a decisively bullish phase, some aren’t so sure. In fact, a number of commentators have suggested that the crypto market’s current price action is eerily reminiscent to that of the middle of July of 2018, which saw Bitcoin see a false bear market breakout to only crash by 50% months later. Related Reading: Crypto Tidbits: Bitcoin Hits $9,000, Institutional Cryptocurrency Investment Spikes, NBA Team Uses Ethereum But, per a tweet from a prominent cryptocurrency trader that went industry-viral, there are three reasons why he thinks Bitcoin is entirely bullish on a macro basis, despite the abovementioned fractal. 3 Reasons Why Bitcoin is Macro Bullish & Could Soon Go Parabolic Trader Satoshi Wolf recently noted that per his analysis of Bitcoin’s one-month candle chart over the past three years, there are at least three bullish technical analysis and fundamental signs that can be seen: Firstly, the recent price decline that Bitcoin has seen from $14,000 to a low of $6,400 has been marked by decreasing volume, which he claims is “bullish.” Indeed, falling volumes in a downtrend would indicate that the sellers are gradually losing control. Secondly, BTC in December decidedly bounced off the key $6,400 macro support level, which has been a level of utmost importance since early-2018, in December on high buying volumes. And lastly, the block reward reduction for Bitcoin, which will decrease the inflation rate of the cryptocurrency by half, is on the horizon (May 2020). This event has been found to be correlated with upswings in the market. A good mate asked for my take on $BTC The monthly chart says it all: 1. Price decline + volume decline = Bullish2. Volume backed bounce off strong support = Bullish3. Halving = Bullish Until something changes I am Bullish on #Bitcoin and will do everything to get more. pic.twitter.com/XGWxLUpCJF — Satoshi Wolf (@SatoshiWolf) January 22, 2020 This confluence of factors suggests Bitcoin may in the coming months explode past $10,000 and maybe even higher. Related Reading: Watch Out, This New Bitcoin Scam Is All Over Youtube JP Morgan is Bearish On Bitcoin, Unfortunately While there is a macro bullish case, as laid out above, not everyone is convinced the Bitcoin ball is in the court of bulls. Bloomberg on January 10th released an article outlining a research note penned by strategists at JP Morgan. Per the note, one of JP Morgan’s managing director, Nikolaos Panigirtzoglou, noted that the cryptocurrency has some downside risk Panigirtzoglou looked to the fact that Bitcoin’s intrinsic value, calculated by the Wall Street giant by looking at the marginal cost of production of a single coin by weighing the price of computational power (via ASICs) and electricity costs, which shows that the fair price of BTC is still around $5,000: “The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10%… The gap has not yet fully closed, suggesting some downside risk remains.” It is unclear how these potentially bearish negative mining dynamics will tie in with the upcoming halving, specifically its potentially bullish effects on Bitcoin. Related Reading: This Late Night Host Just Exposed Millions to Bitcoin, Again Featured Image from Shutterstock The post appeared first on NewsBTC.

Top Crypto Analyst Lays This Case for 100% Cardano (ADA) Price Surge

Near the top of the Bitcoin bull market in 2018, Cardano (ADA) was dominating. Everything. Aside from a few select altcoins in Ethereum, XRP, and BCH, ADA was at the top of the market, rallying on a seemingly strong team and the promise of Cardano becoming the next leading blockchain that could service everything and everyone. But, since then, the cryptocurrency has seen quite the fall from grace. Per TradingView data (seen below), the cryptocurrency has collapsed by 96.74% against the U.S. dollar since the all-time high well above $1. Against Bitcoin, the cryptocurrency has collapsed too, dropping by dozens of percent against the leading digital. Despite this, a top analyst recently laid out a case for a massive explosion in the price of ADA against Bitcoin (ADA/BTC). Related Reading: Bitcoin Signal That Preceded 288% Rally About to Flash, and It’s Huge for Bulls Three Technical Reasons Suggest Cardano (ADA) Surge On Horizon Josh Olszewicz, the cryptocurrency analyst at Brave New Coin, recently noted that the chart of ADA/BTC is looking prime for an explosion higher from a technical analysis perspective. He specifically looked at three factors: Firstly, the trading pair has seen nearly six months of accumulation in a relatively tight range, with ADA failing to break below key support levels but also failing to move above resistance. The strong accumulation pattern near the lows could suggest a rebound is forming. Secondly, the daily Ichimoku Cloud, which is a sort of all-in-one indicator tracking key price levels and market trends, has turned bullish for Cardano against Bitcoin. A bullish cloud predicted Bitcoin’s price explosion from the low-$7,000s to $9,200 which we just saw. And lastly, should ADA make an end-to-end Ichimoku Cloud move as the pair moves above key resistances, the price of the cryptocurrency could more than double within a few months’ time. fundamentals aside, $ADA looks absolutely bonkers to me – nearly 6 month accum– daily cloud turning bull– high TF e2e = 2x+ pic.twitter.com/cexF7z0KwX — Josh Olszewicz (@CarpeNoctom) January 22, 2020 Related Reading: This Reason Is Why Analysts are Worried About Ripple’s XRP Despite 35% Rally Bearish Long-Term Outlook for Alts; Bullish Long-Term Outlook for Bitcoin Although ADA is looking extremely bullish from the technical perspective laid out, the long-term outlook for the altcoin class of crypto assets seems to be decisively bearish. Per previous reports from this very outlet, a Reddit user found that by diversifying a $1,000 portfolio into the top 10 crypto assets (Bitcoin, Ethereum, XRP, etc.) at 10% for each coin, his portfolio gained 1.7% in an entire year. During that same time span, Bitcoin gained 95% in and of itself and traditional asset classes gained dozens of percent and saw near-record gains. Not to mention, analyst Ceteris Paribus recently noted that the launch of the CME’s Bitcoin options could be bearish for altcoins: “If it isn’t obvious, the more we see products like this get offered the more bearish it is for the majority of alts,” they wrote. Related Reading: Here’s Why Wall Street Veteran Thinks Bitcoin Isn’t a Viable Money, Yet Featured Image from Shutterstock The post appeared first on NewsBTC.

Why Analysts are Worried About Ripple’s XRP Despite 35% Rally From $0.173

Much like many other crypto assets, XRP has been on a tear over the past month. Below is a chart from TradingView which shows that the cryptocurrency, third-largest by market capitalization, has gained 36% against the U.S. dollar since bottoming at $0.173 in the middle of December. In spite of this surge, which some say has brought XRP and other cryptocurrencies out of the mini-bear markets started in June 2019, a leading analyst has argued that it is difficult for him to be bearish on the coin. Related Reading: Here’s Why Wall Street Veteran Thinks Bitcoin Isn’t a Viable Money, Yet XRP Still Under Key Resistance On Macro Basis Popular cryptocurrency trader CryptoDude, who has done well trading the recent price action with Bitcoin, Ethereum, and others as evidenced in his Twitter feed, recently said on Twitter that it is “difficult for me to be bullish on Ripple right now.” Backing his assertion, he looked to a chart of XRP against the U.S. dollar on a monthly basis. The trader depicted that despite the recent 35% surge off local bottoms, prices not seen in years, the cryptocurrency remains decisively below a key resistance that has been absolutely essential for the asset’s past two to three years of price history. What’s more, it was actually rejected at the resistance level, suggesting the macro bear trend for XRP remains intact. $XRP Difficult for me to be bullish on Ripple right now. pic.twitter.com/pXmfZbOtyp — CryptoDude (@cryptodude999) January 21, 2020 Related Reading: This Gold Bug Says Bitcoin is Worth $0 Because His “Wallet Forgot His Password” It isn’t only that. As reported by NewsBTC earlier, per a Telegram channel tracking an indicator designed to spot reversals before they happen is suggesting that the two top altcoins Ethereum and XRP are due for a deep retracement. The indicator is the Tom Demark Sequential, better known as the TD Sequential. The indicator printed a “Sell 9” candle on for both the daily charts for XRP and Ethereum against the U.S. dollar, suggesting that both of these top altcoins will fall in value in the days ahead. Some Beg to Differ There are some that beg to differ, however. Analyst CryptoWolf recently noted that per his earlier analysis, XRP has finally started to decisively break out of a falling wedge pattern that has constrained price action for the past seven months. The cryptocurrency has also surmounted a key horizontal resistance that has been important on a macro basis. With this in mind, he suggested in the below chart that he expects for XRP to target the 0.382 Fibonacci Retracement of the entire falling wedge over the coming weeks, which suggests a 25% rally is on the horizon. XRP breaking out. 🚀 pic.twitter.com/QIs4z3uWZ4 — CryptoWolf (@IamCryptoWolf) January 18, 2020 On the fundamentals, BitPay, the world’s largest crypto payments processor, just added support for the cryptocurrency. Also, Ripple, a fintech company closely associated with the cryptocurrency, has just partnered with one of Thailand’s oldest commercial banks to create a remittance/international payment solution. Related Reading: Bitcoin Signal That Preceded 288% Rally About to Flash, and It’s Huge for Bulls Featured Image from Shutterstock The post appeared first on NewsBTC.

Here’s Why Wall Street Veteran Thinks Bitcoin Isn’t a Viable Investment, Yet

2019 was marked by some of the world’s most powerful people talking about Bitcoin in public settings. President Donald Trump said in a surprise Twitter thread that cryptocurrencies, from BTC to Libra, are no something he is a fan of, citing their potential to be used in crime. Tesla’s Elon Musk said in a podcast that he thinks Bitcoin’s structure is “brilliant” and other digital assets may have some merit. It seems that this trend of large investors and entrepreneurs talking cryptocurrency has continued to the new year. This time, it’s Ray Dalio, co-founder of Bridgewater Associates, the world’s largest hedge fund. Related Reading: This Late Night Host Just Exposed Millions to Bitcoin, Again BTC Not a Good Investment? Hedge Fund Manager Weighs In At the World Economic Forum in Davos, Ray Dalio sat down with CNBC to talk markets, specifically regarding monetary policy and how it relates to gold. While the conversation was centered around gold, Dalio touched on Bitcoin. Unfortunately for fans of cryptocurrency, he didn’t sing the praises of the cryptocurrency. https://t.co/2KiOig1RYO Ray Dalio (@RayDalio) on @CNBC at Davos discusses Bitcoin and Gold at 9:10 — says BTC is too volatile to be a good store of value right now and central bankers won't hold Bitcoin but will hold gold Amazing this conversation is even happening — Avichal Garg (Electric Capital) ⚡ (@avichal) January 21, 2020   Halfway through the interview, he said that he thinks Bitcoin currently does not satisfy the two leading use cases of money, store of value and medium of exchange, due to market volatility. Dalio added that because of this, central banks are unlikely to hold the cryptocurrency, but will instead hold gold. This is notable as Dalio wrote in a jaw-dropping LinkedIn post last year that he thinks the “system is broken,” citing the rampant levels of debt, wealth inequality, and central banks’ propensity to print money. Related Reading: Watch Out, This New Bitcoin Scam Is All Over Youtube Institutions Will Go Big On Bitcoin In 2020 While Dalio and others are insistent that Bitcoin is not a viable store of value or medium of exchange, a number of analysts are convinced 2020 will be the year institutional players invest large sums of capital into the crypto markets. Per previous reports from this outlet, Changpeng “CZ” Zhao, CEO of Binance, has reported that his firm has seen an increase in institutional excitement for cryptocurrency. Also, Peter Johnson, a Principal at crypto-friendly venture capital firm Jump Capital, said that global macro investors, who focus on long-term narrative shifts on an Earth-wide scale, will begin to siphon capital into Bitcoin due to changes in the macroeconomic and geopolitical environment. Not to mention, 2019 already saw a number of institutions start to dabble in cryptocurrency investment. The parent company of the New York Stock Exchange headed a Bitcoin derivatives exchange in Bakkt, which has seen dramatic institutional adoption since its launch. Also, Fidelity Investments — one of the world’s foremost asset managers and financial service firms — unveiled a Bitcoin custody and trade execution division for its thousands of clients. The company is in the midst of rolling out this service worldwide to service trillions of dollars worth of assets. Featured Image from Shutterstock The post appeared first on NewsBTC.

Bitcoin Hash Rate Spikes to New High (Again): Boding Well for Market

While your Bitcoin transactions likely go through seamlessly with a few clicks of a screen, there is a whole industrial complex behind the action of sending BTC across the world and the internet.

Every second of every day, there are tens of thousands of computers, built specifically for cryptocurrency, making computational solutions in hopes of solving a block in an effective lottery.

What’s interesting is that while Bitcoin is still a ways from its all-time high price of $20,000, more and more capital has been invested in keeping the network secure, boding well for the future of the cryptocurrency.

Bitcoin Hash Rate Hits Fresh High

As noted by Bitcoin proponent Hodloanut, data from Bitinfo Charts shows that Bitcoin’s hash rate — the measure of how much computational power is being used to process blocks — has just hit 126.13 exahashes per second, which is nearly 1,000% higher than the metric was at when BTC was trading at $20,000 in December 2017.

To help readers rationalize the extent of the security of the Bitcoin network, Hodloanut issued another tweet, noting that with 126 exahashes, there are 126 billion billions of SHA-256 hashes being computed every second to help secure transactions and help create a cohesive blockchain. He said that this simple mind-blowing number is a sign that Bitcoin’s fundamentals are sound.

The surging hash rate confirms that the so-called “miner capitulation” — when Bitcoin and other cryptocurrency miners stop their operations due to operating expenses being unsustainable — is over.

Previous conclusions to bouts of miner capitulation have historically marked macro bottoms in the Bitcoin market and preceded bull rallies that had an average 5,000% gain, according to an analysis by digital asset manager Charles Edwards.

Likely To Only Grow Further

There is a high likelihood that this metric won’t stop appreciating any time soon.

Per previous reports from Blockonomi,  SBI Holdings — a financial services company group based in Tokyo, Japan that works closely with crypto-centric fintech upstart Ripple — and GMO Internet, an internet service provider that has been mining cryptocurrency for multiple quarters now, will begin mining operations in a massive farm in Texas.

The farm will have a mining capacity of 1 gigawatt by the end of 2020, purportedly three times larger than that of Bitmain’s Rockdale mine, which currently holds the title for the world’s largest crypto mine.

Not Only Strong Fundamental Trend

This isn’t the only fundamental trend that has investors bullish on Bitcoin.

The past few years have seen institutions start to dabble in the cryptocurrency investment arena.

The upcoming year is expected to be huge for institutional involvement. Changpeng “CZ” Zhao said at the end of last year that he expects for 2020 to see more institutions enter Bitcoin investment, resulting in a “more bullish market.”

Indeed, Fidelity Investments — one of the world’s largest finance companies — recently rolled out its Bitcoin custody and trade execution services, giving trillions of dollars owned by tens of thousands of institutional clients a chance to enter cryptocurrency.

Not to mention, there are a number of other institutional-centric initiatives, such as ING’s custody solution and Bakkt’s derivatives exchange, that are slated to see growth in the coming years, boding well for the market and the adoption of digital assets across the board.

The post Bitcoin Hash Rate Spikes to New High (Again): Boding Well for Market appeared first on Blockonomi.