Yearn.finance (YFI) plunges to “do or die” support despite positive developments

Yearn.finance’s governance token (YFI) has been hit hard by the recent downtrend seen across the aggregated cryptocurrency market, with the token now trading down nearly 50 percent from where it was at its peak.

Despite this bearish price action, it is important to note that the Yearn.finance ecosystem is still thriving, and YFI holders may soon be able to receive instant rewards for tokens staked in the governance contract.

This will allow governance participants to claim rewards that have been accumulated throughout the past several weeks.

Although this may not catalyze any shift in the cryptocurrency’s price trend, incentives like this will encourage more users to buy and stake their YFI tokens.

From a technical perspective, one analyst noted that the Yearn.finance token has reached a crucial technical support level. A dip below here would be grim and potentially lead it to see some serious losses.

Yearn.finance governance continues seeing positive developments

Yearn.finance has become a benchmark project within the DeFi ecosystem. Their introduction of yVaults and other projects has been incredibly promising, with the project being one of the largest innovators in the market.

From a governance perspective, the project is also advancing positively, with holders with staked tokens now voting to allow governance participants to claim instant rewards from the pool.

This may incentivize users to be more active in governing the platform, which could, in turn, cause more YFI tokens to be locked within the staking contract.

BlueKirby – an anonymous Yearn.finance advocate – spoke about the governance development in a recent tweet, saying:

“Looks like instant rewards coming in 3 days to YFI staked in governance. – 12,385 YFI addresses – 20.46% in staked in governance.”

Yearn.finance YFI
Image Courtesy of Blue Kirby

YFI price plunges to crucial support

Despite the plethora of positive fundamental developments currently underpinning Yearn.finance, the YFI token’s value has depreciated heavily throughout the past couple of weeks.

After reaching highs of over $40,000, the token’s price has been caught in a strong downtrend that has pushed it down its current price of $23,800.

Cantering Clark, a respected cryptocurrency analyst, explained that the mid-$22,000 region is a critical support level that must be held by buyers.

“If YFI loses this level it likely drags a lot more Defi down with it. I think it has become the benchmark and index much like Bitcoin is. An exit crisis in Defi might only be slowed down by the network congestion. Maybe a built-in safeguard after all.”

Image Courtesy Cantering Clark. YFIUSD Chart via TradingView.

A break below this level could arise if the market continues to express immense signs of weakness in the days ahead.

The post Yearn.finance (YFI) plunges to “do or die” support despite positive developments appeared first on CryptoSlate.

Beware: Bitcoin Price Action Mimics Market Maker Model

Bitcoin price just plunged once again from over $11,000 and is currently holding around $10,500. The support level could just be a quick pitstop before the selloff continues, according to the recent price action resembling the “market maker profile sell model.”

If the cryptocurrency continues to follow the projected path this particular model predicts, Bitcoin could fall to new local lows, or worse.

Bitcoin Market Maker Sell Model: Wyckoff Distribution By Another Name

When an asset falls to attractive prices, it is accumulated by smart money investors who take a positon ahead of a large price increase. This transition from accumulation phase to mark up often results in a strong climb to a higher level, where a pause takes place before another rise.

This is exactly what happened when Bitcoin touches its current bear market bottom at $3,200 and then rocketed to $14,000 in a matter of months.

Related Reading | Bitcoin “Distribution” Could Lead To Another Arm And A Leg Down

The same sort of theory is true in inverse for Bitcoin or any other assets. According to Wyckoff distribution models – which some analysts claim matches the cryptocurrency’s recent top price action – after distribution, comes mark down, then the cycle repeats.

That type of sell model very closely matches recent Bitcoin trading action, however, another more ominous looking sell model has also surfaced that suggests new lows could be set.

btcusd bitcoin market maker

BTCUSD Daily Line Chart Market Maker Sell Model Example Zoomed In | Source: TradingView

Does The Crypto Market Mimicking This Structure Suggest New Lows Are Next?

In the market maker profile sell model, there is risk of another low, depicted in the comparison chart below. The same model from above when zoomed out matches areas of prevous interest on the asset’s daily price chart.

The next potential level, if the model continues to follow, would be around the $8,500 to $7,400 range, where Bitcoin bounced from for the record-setting October 2019 China pump.

btcusd bitcoin market maker 2

BTCUSD Daily Line Chart Market Maker Sell Model Example Zoomed Out | Source: TradingView

In the market maker sell model, it predicts a deeper drop than what Bitcoin experienced on Black Thursday, potentially back to support where the asset broke out from its bear market bottom for yet another retest.

Related Reading | Financial Advisory Group: Bitcoin Would Be 40% More Valuable Without Manipulation

If Bitcoin’s bottom holds yet again, for a third time, it could finally be considered unbreakable. During Bitcoin’s last bull market, a triple bottom acted as the grand finale before the greatest bull run ever seen.

But if the bottom doesn’t hold, there could be another box below the green that gets filled in with some price action, and that’s not what any crypto investors want to see.

Iran Grants Bitcoin Miners Exclusive Access To Electricity From Three Power Plants

Iran Grants Bitcoin Miners Exclusive Access To Electricity From Three Power Plants

Iran has granted bitcoin miners exclusive access to electricity generated from three power plants for their mining activities, according to state power utility Thermal Power Plant Holding Company (TPPH).

Mohsen Tarztalab, managing director of TPPH, told a local news agency on Monday that the “necessary equipment has been installed in three power plants of Ramin, Neka and Shahid Montazeri.”

The government firm, which is responsible for the development and operation of thermal-based electric power plants, will now proceed to issue out tenders for the three projects, whose “documents will be uploaded on the SetadIran.ir website in the near future,” said Tarztalab.

It is important to note that crypto miners will only receive excess electricity from expansion turbines that are to be built at the target power plants for this specific purpose. Tarztalab explained this is because the turbines “do not consume liquid fuels like gas oil, and only natural gas”, which burns cleaner compared to coal.

“These turbines are not connected to the national grid and the electricity generated by them is only used by the power plant itself,” he stated.

However, it is not clear how much electricity will be produced or dedicated to crypto mining from the three facilities. As news.Bitcoin.com reported in the past, Iran issued permits to 14 crypto mining farms in July, each with a capacity of 300 megawatts. But it also recently shut down 1,100 illegal bitcoin miners. Some 1,000 miners had already been licensed in January.

Until now, no power plant, or a part of it, could exclusively extract digital assets, even though the country’s Ministry of Energy in July gave power plants the greenlight to mine. One of the biggest motivations for Iran’s continuing open-mindedness to virtual assets is the potential that the industry brings to boosting falling government revenues. Tarztalab, the TPPH head, detailed:

Unfortunately, constant price hikes and the obligation for supplying electricity with stable prices to subscribers have caused a large gap between revenues and expenditures in the country’s electricity industry, and we need new sources of income to fill this gap.

Bitcoin mining is cheap in Iran – something that has drawn scores of miners, both legit and shady, to the nation’s shores. According to official data, mining farms in Iran pay as little as 4,800 rials ($0.01) per kilowatt-hour (kWh) of electricity but rates increase four-fold to 19,300 rials ($0.05) during the peak summer season, from June to September.

What do you think about Iran allocating three power plants for exclusive bitcoin mining? Let us know in the comments section below.

The post Iran Grants Bitcoin Miners Exclusive Access To Electricity From Three Power Plants appeared first on Bitcoin News.

Analysts Fear a Bitcoin Drop Towards the $9,600 CME Gap as Price Plunges

Bitcoin could soon move towards the crucial CME futures gap at $9,600, formed when the cryptocurrency surged from the $9,000s in late July and early August.

The CME futures is closed on the weekends, despite Bitcoin spot markets still trading. This forms natural gaps in the CME’s price action, many of which are filled within a week after they were opened.

Related Reading: Ethereum Transaction Fees Surge to All-Time Highs After Uniswap Launch

Bitcoin Could Fill the CME Gap Soon: Analysts

BItcoin will soon fill the CME gap according to a cryptocurrency analyst viewing the recent price action. He noted how the cryptocurrency lost the support of the pivotal support at $10,900, which is likely to trigger a move to $10,200.

“$BTC: Looks ready to finally go fill that CME gap. Didn’t quite tap the $11,200, 0.65 region I talked about.”

Image

Chart of BTC's price action over recent weeks with analysis by crypto trader Mac (@MacNBTC on Twitter). Chart from TradingView.com

A majority of investors think the gap will be filled as well. Commentator and programmer Ivan on Tech recently asked his over 100,000 followers if they think that Bitcoin will fill the CME gap; around 60% of the respondents said that they think that Bitcoin will do so in the future.

Related Reading: Critical On-Chain Signal Predicts That Bitcoin’s Next Move Will Be Upward

Might Not Make It?

Not all analysts think the gap will be filled, though.

Willy Woo, a prominent on-chain analyst, recently commented in regards to the chart below:

“I’m still cautious of another short term dump to fill the gap but so far it’s looking like it’s been front run for liquidity which is strongly bullish if we break resistance here. There’s a lot of bids in the spot orderbooks wanting to snap up the gap in the mid-high 9000s.”

Image

Chart of BTC's price action over recent weeks with analysis by Willy Woo

Woo has made extremely accurate predictions in recent weeks, in late August calling Bitcoin’s decline to the high-$9,000s and last week’s recovery from $10,000 to $11,200.

He still believes that Bitcoin’s medium-term trend is positive:

“Overall, I’m not expecting any mega dump, some chance of smaller whipsaws in the short timeframes, resistance is teetering. Not a bad time to get in if you’re a spot investor, given the longer range macro. There’s plenty of buy support below 10k, this is a buy the dip scenario.”

How Bitcoin fares in the near term, though, seems to currently be up in the air and somewhat dependent on legacy markets.

Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Analysts Fear a Bitcoin Drop Towards the $9,600 CME Gap as Price Plunges

Chainlink Faces Grim Outlook as it Nears Bedrock Support Level

Chainlink’s price has been witnessing massive inflows of selling pressure throughout the past few weeks, with buyers being unable to garner any control of its mid-term trend in the time following its rejection at $20.00.

The cryptocurrency has now firmly broken below its previous support level at $10.00 and appears to be in a precarious position as analysts watch for further downside in the near-term.

While speaking about the cryptocurrency’s current outlook, one analyst explained that he is now targeting a decline down towards $7.90, which appears to be a bedrock support level for the token.

He notes that there is a possibility that LINK begins rallying now, with the support here potentially being enough to send it rocketing back up towards its previous highs.

One trader is noting, however, that a loss of a key parabolic support level against its Bitcoin trading pair could soon come to fruition, with this potentially causing it to see some serious macro downside.

Chainlink Plummets Lower as Sellers Maintain Control

At the time of writing, Chainlink is trading down 10% at its current price of $8.80, which marks a notable decline from daily highs of $10.60 that were set during a relief rally seen yesterday.

After holding above $10.00 for an extended period of time, the cryptocurrency eventually faced a massive influx of selling pressure that caused its price to reel to fresh multi-month lows.

The last time LINK was trading this low was in early August, just before it incurred a parabolic uptrend that sent its price surging up to highs of over $20.00.

This marked a long-term top for the crypto, as it has since plummeted lower and is showing few signs of finding any long-term support.

One trader did state that a dip towards $7.90 could be enough to help send it up towards its all-time highs.

“Just one more little push, grant me this marines,” he said while pointing to the below chart.

Chainlink LINK

Image Courtesy of Teddy. Chart via TradingView.

LINK Could Invalidate Its Macro Uptrend if Bulls Fail to Defend One Key Level 

While speaking about the cryptocurrency’s near-term outlook, another analyst explained that it is now at risk of breaking a parabolic trendline formed against its Bitcoin trading pair.

“Important note: lose current support and it looks grim. Either way, LINK looks to provide some proper volatility and thus opportunity,” he explained while pointing to the below chart.

Image Courtesy of Bitcoin Jack. Chart via TradingView.

If Chainlink dips below this level in the near-term, it could create some headwinds that stunt its growth against its USD pair as well.

Featured image from Unsplash.
Charts from TradingView.

Kakao Talks up DeFi, Wants to Build ‘Digital Asset Trading Ecosystem’

The logo of the KakaoTalk chat app. One of South Korea’s biggest tech companies has spoken out about its desire to build an ecosystem for “trading” what it termed “digital assets” and has spoken about DeFi (decentralized finance) in glowing terms – at a forum hosted by a central government-run agency. The comments were made by Ground X, the blokchain

Turbulent Crypto Markets Expected – 87K Worth of Bitcoin Options Set to Expire on Friday

Turbulent Crypto Markets Expected - 87K Worth of Bitcoin Options Set to Expire on Friday

Markets are expected to be volatile this week, as a great number of bitcoin and ethereum options are set to expire this Friday. Data shows more than 87,000 bitcoin options will expire and 77% of the action is held on the Deribit exchange.

U.S. stocks dropped hard on Monday, as the Dow Jones Industrial Average dropped more than 700 points during the stock market’s afternoon trading sessions.

Meanwhile, bitcoin (BTC) took a hit on spot markets dropping over 4% in value. A number of other cryptocurrencies like ethereum (ETH -8%) lost even bigger percentages on Monday. However, crypto analysts are eying this Friday’s crypto options expiries, as there’s a large number of derivatives contracts across Deribit, Okex, Ledgerx, CME Group, Huobi, Bakkt, and Bit.com that will expire.

Turbulent Crypto Markets Expected - 87K Worth of Bitcoin Options Set to Expire on FridayData from Deribit shows there are over 87,000 BTC options that are set to expire this Friday. The exchange also details that 67k worth of those options (77%) are held on Deribit. Moreover, 459k worth of ETH options are set to expire on the same day and 414k or 90% is also held on Deribit.

The other three competitors, that pale in comparison to Deribit’s numbers, include; CME Group, Okex, and Ledgerx respectively.

Turbulent Crypto Markets Expected - 87K Worth of Bitcoin Options Set to Expire on Friday

On Monday morning (ET), Deribit’s Head of Risk and Product, Shaun Fernando, spoke about BTC’s volatility and the coin’s price action this month. “In the month of September, we have seen the BTC price trading between USD $10k and $12k,” Fernando said.

“The 1 month ATM volatility hit a high of 70% before falling to its level of 46% and we have seen volatility in the skew.”

Fernando further added:

The Deribit Index is currently trading more than 2.5% below the settlement of nearly 4 hours ago which could suggest some interesting realised vs implied strategies. If the trend carries, expect a run on vol. If we bounce back, we could see some interesting moves around the 11k strike where over 10% of the Sep open interest is stacked.

The researchers from Skew.com spoke about the cryptocurrencies implied volatility as well on Twitter. “Some capitulation in bitcoin,” Skew wrote. Options market as trading remains rangebound, one-month implied vol

There’s been a number of occasions where crypto derivatives produced volatile crypto spot markets, while other times expiry dates can be lackluster.

What do you think about the number of BTC and ETH options that are set to expire on Friday? Let us know what you think in the comments section below.

The post Turbulent Crypto Markets Expected – 87K Worth of Bitcoin Options Set to Expire on Friday appeared first on Bitcoin News.

Uniswap’s UNI Token May Reel to $3.30 as Selling Pressure Ramps Up

Uniswap’s UNI token launch generated massive hype for around 24 hours, leading the token’s price to surge up to highs of $8.50 before the hype faded and the cryptocurrency’s price plunged lower.

It doesn’t appear that the hype will return anytime soon, as the token has since erased the vast majority of its gains and is showing heightened signs of weakness.

This weakness has come about in tandem with that seen by Bitcoin and the aggregated cryptocurrency market.

BTC’s price has reeled down towards the lower-$10,000 region today and is showing few signs of strength as sellers continue taking profits off the table. Similarly, Ethereum’s price has also crashed, reaching the $330 region before finding some slight buying pressure.

This market-wide weakness may continue hampering UNI’s growth, and potentially lead it lower.

One analyst is even setting his sights on a move down towards $3.30, noting that this may be the price it plunges to before it is able to find some significant support.

Uniswap’s UNI Token Struggles to Maintain Its Hype as Momentum Fades

At the time of writing, Uniswap’s UNI token is trading down over 14% at its current price of $4.24. This is around the price at which it has been trading throughout the past several days and weeks, with buyers being unable to catalyze any strong momentum.

UNI’s weakness likely stems from a combination of factors, including fading hype following the intense $8.50 rejection, as well as technical weakness seen throughout the past few days.

It is important to note that it is still trading up considerably from its post-launch lows of $1.00.

At the moment, investors in UNI may be concerned about the lack of benefits that token holders currently receive, but it is probable that incentives – like a fee distribution – will eventually be proposed and voted through.

Trader: UNI Likely to Target $3.30 as Selling Pressure Ramps Up

While speaking about Uniswap token’s current technical outlook, one trader explained that he believes its price will dive down towards $3.30 before it is able to find some strong support that boosts it higher.

“If you liked UNI at $5.2, you gonna love it at $3.3,” he said while pointing to the support level marked on the below chart.

Uniswap UNI

Image Courtesy of Mac. Chart via TradingView.

How altcoins like Uniswap’s token trend in the coming few days should depend largely on Bitcoin and Ethereum.

Featured image from Unsplash.
Charts from TradingView.

Price analysis 9/21: BTC, ETH, XRP, BCH, DOT, BNB, LINK, CRO, LTC, BSV

The market has taken a bearish turn and Bitcoin and altcoins will need strong relief rallies in order to restore their uptrends.

Legacy and crypto crypto markets saw a strong correction today as traders fear that the second round of economic stimulus might be delayed as the White House, Senate and Congress could become entangled in a fight to fill the vacancy created by the passing of Supreme Court Justice Ruth Bader Ginsburg. 

In addition to this, financial stocks are leading the bloodbath as reports emerged that several banks could have been involved in facilitating the movement of over $2 trillion over a two-decade period. These suspicious transactions have been flagged as possible money laundering or criminal activity by the banks internal compliance officers. 

While Bitcoin price is correcting today, this exposure of potentially illegal behavior by banks will only strengthen the narrative for why investors should buy Bitcoin (BTC).

Daily cryptocurrency market performance

Daily cryptocurrency market performance. Source: Coin360

The increasing number of coronavirus cases across the world is also adding to the negative sentiment seen in the market today. This has led to panic selling by traders who are dumping equities, gold, crude oil and cryptocurrencies and instead are buying the U.S. dollar. 

However, after the initial round of selling, most asset classes are likely to chalk their own course depending on their long-term fundamentals and cryptocurrencies may be among the first to rebound.

Let’s study the charts of the top 10 cryptocurrencies to spot the critical support levels that could attract buyers.

BTC/USD

Bitcoin turned down from the 50-day simple moving average ($11,225) on Sep. 19 and broke below the 20-day exponential moving average ($10,781) and the $10,625 support today. This fall suggests that the bears used the recent relief rally to $11,000 to initiate short positions.  

BTC/USD daily chart

BTC/USD daily chart. Source: TradingView

The bears will now try to sink the price below the $9,835 support and if they succeed, it could result in panic selling that may drag the price down to $9,000 or even further.

If this sharp fall was followed by a strong rebound, it would suggest that the bulls are accumulating at lower levels and such a move might attract several buyers once again.

However, if the BTC/USD pair fails to rebound quickly from the lower levels, then the recovery is likely to take much longer as the bulls will then wait for a bottoming formation to complete before buying.

Contrary to these assumptions, if the pair rebounds off the $10,000–$9,835, support, the bulls will once again attempt to push the price above the downtrend line. If they succeed, then the uptrend is likely to resume.

ETH/USD

The pullback in Ether (ETH) stalled close to the 50% Fibonacci retracement level of $398.263 and turned down on Sep. 20. The selling intensified after the bears broke the immediate support at $353.443.

ETH/USD daily chart

ETH/USD daily chart. Source: TradingView

The next support on the downside is $308.392 and below it $288. If the ETH/USD pair rebounds off this support zone aggressively, it will indicate that the bulls are accumulating on dips.

However, the bears are unlikely to give up their advantage easily. They will attempt to stall any pullback attempts at the downtrend line and then at $398.263. If they succeed, it will be a huge negative and will increase the possibility of a break below $288.

This bearish view will be invalidated if the bulls can push the price above the downtrend line and the overhead resistance at $400.

XRP/USD

The bears are trying to sink XRP below the $0.235688–$0.229582 support zone and if they succeed, the altcoin can decline to $0.19, completing a 100% retracement of the up-move that started in mid-July.   

XRP/USD daily chart

XRP/USD daily chart. Source: TradingView

The lack of a strong bounce off the support zone indicates that buyers are currently not defending this zone aggressively. They are likely to wait for the decline to end before venturing out to buy.

This bearish view will be negated if the XRP/USD pair rebounds off the current levels and breaks above the downtrend line.

BCH/USD

The failure of the bulls to propel Bitcoin Cash (BCH) above the 20-day EMA ($235) attracted profit booking by the short-term bulls and shorting by the aggressive bears. This has resulted in a sharp fall to the critical support zone of $215–$200.

BCH/USD daily chart

BCH/USD daily chart. Source: TradingView

If the bears can close (UTC time) the price below $215, the BCH/USD pair can drop to the critical support at $200. This is an important support because the bulls have not allowed the price to break below this level since the end of March.

Aggressive bulls might buy the dip to $200 but they will have to push the price back above the 20-day EMA to invalidate the bearish sentiment. If they fail to do so, the bears will again sell on the relief rally to the 20-day EMA.

A break below the $200 support will be a huge negative as it can start a downtrend that has a target objective of $140.

DOT/USD

Polkadot (DOT) broke below the rising wedge pattern on Sep.19 and quickly dropped to the $4.00 support. The bulls will attempt to defend the $4.00–$3.5321 support zone while the bears will try to break below it. 

DOT/USD daily chart

DOT/USD daily chart. Source: TradingView

If the bears succeed, the DOT/USD pair can drop to $2.60 and then to $2.00. Such a move will be a huge negative as it is likely to drive away the bulls and reduce the possibility of a sharp recovery.

However, the pair could remain range-bound for a few days if it rebounds off the support zone and breaks above the 20-day EMA ($4.87).

BNB/USD

Binance Coin (BNB) broke below the $25.82 support on Sep. 20 but the price recovered from the intraday lows and closed (UTC time) at $26.31. However, renewed selling today has resulted in a sharp fall that has broken below the $25.82 support. 

BNB/USD daily chart

BNB/USD daily chart. Source: TradingView

The bulls are currently attempting to arrest the decline at $23 but the bears are likely to sell on pullbacks to the downtrend line and to the 20-day EMA ($25.68). 

If the BNB/USD pair turns down from the downtrend line or the 20-day EMA, the bears will once again attempt to sink the price below $23. A break below this support could result in a decline to the next support at $18.

This bearish view will be invalidated if the bulls can push the price back above $25.82. Such a move will suggest that the current decline was a bear trap.

LINK/USD

Chainlink (LINK) is in a downtrend as it continues to make lower highs and lower lows. The break below $8.908 support shows that the bulls are not aggressively defending this level as they are not confident that the bottom is in place yet.

LINK/USD daily chart

LINK/USD daily chart. Source: TradingView

If the LINK/USD pair closes (UTC time) below $8.908, the selling is likely to intensify. The next support is at $6.90 from where the pair had bounced off in July.

However, if the bears fail to sustain the price below $8.908, the aggressive buyers might step in and buy. A strong bounce off this support can reach the 20-day EMA ($11.5) where the bears might again step in and short.

This bearish view will be invalidated if the bulls can push the price above the 20-day EMA. Such a move will be the first sign that the downtrend might be over.

CRO/USD

Crypto.com Coin (CRO) turned down from the resistance line and broke below the moving averages on Sep. 20. The altcoin can now drop to the critical support at $0.144743.

CRO/USD daily chart

CRO/USD daily chart. Source: TradingView

If the bears can sink and sustain the price below $0.144743, it will suggest that the CRO/USD pair has topped out at $0.191101. 

The next support on the downside is the 38.2% Fibonacci retracement level of $0.12749 and if this breaks down, the decline can extend to $0.11.

This bearish view will be invalidated if the pair rebounds off $0.144743 and rises above the downtrend line.

LTC/USD

The indecision between the bulls and the bears resolved in favor of the bears when Litecoin (LTC) broke below the symmetrical triangle pattern on Sep. 20. The next support on the downside is $39.

LTC/USD daily chart

LTC/USD daily chart. Source: TradingView

Some buying can be expected at the $39 support because this level has not been breached convincingly since April 1 and the buyers have been rewarded every time they purchased on dips to this support.

The strength of the rebound off this critical support will provide insight into the conviction of traders. 

If the bounce is strong, it will suggest that the bulls have again purchased closer to the support because they expect it to hold. However, a weak rebound will show a lack of confidence and this will increase the possibility of a break below $39.

BSV/USD

The tight range trading in Bitcoin SV (BSV) resolved to the downside on Sep. 20 as the altcoin plunged below the $160 support. Repeated retests of a support level tend to weaken it as traders lose conviction that the support will hold, hence, they stop buying.

BSV/USD daily chart

BSV/USD daily chart. Source: TradingView

The bears will now use the opportunity and try to sink the BSV/USD pair below the $146.20–$135 support zone. If they succeed, it could start the next leg of the downtrend that can reach $100 where buying might emerge as it is a psychologically important level.

This bearish view will be invalidated if the pair rebounds off the current levels and rises above the 20-day EMA ($167). Until then, the bears are likely to view the relief rallies as a selling opportunity.

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

Market data is provided by HitBTC exchange.

No, you can’t buy Venezuela’s Petro on any overseas exchanges

The Venezuelan government has not yet announced partnerships capable of listing PTR abroad.

A New York-based crypto exchange has listed a token with the same name as the Venezuelan state-issued asset, the Petro (PTR). In reality however, the two are entirely unconnected.

Exchanges such as BitMart have recently begun listing this similarly named token for trade on their platforms. However, the Venezuelan government has not yet announced any partnerships with exchanges abroad.

According to an article published by Cointelegraph Spanish, only seven local crypto exchanges offer PTR for trade in Venezuela. Two government platforms, named Plataforma Patria and PetroApp, additionally allow speculators to access the token. None of these exchanges are technically available to an international audience.

This isn’t the first time confusion has led to a spike in price for a non-affiliated asset. When Nicolas Maduro, president of Venezuela, launched the official token in February 2018, another unconnected token called “PetroDollar (XPD)” skyrocketed over 2,000% on an exchange called Cryptopia.

Other projects took advantage of the announcement around the same time as well, with some issuing tokens under the same name and promoting them through misleading advertisements.

Recently, the Bolivarian Council of Mayors in Venezuela signed a bill called the "National Tax Harmonization Agreement" for 305 municipalities in the country. This bill officially designated the Petro as a means of collecting payments for taxes and sanctions.

The new DeFi market where users can sell jpgs and gifs for thousands in Ethereum

In 2017, CryptoKitties became one of the most popular applications on Ethereum. These digital art pieces, which could be traded and bred in search of rarer creatures. The idea with these on-chain kitties was that one could show off that they own a certain character, something similar to people with wealth showing off their art collection.

While the prominence of CryptoKitties rapidly diminished after the Bitcoin and altcoin market topped in late-2017 and early-2018, it seems that we’re coming full circle with another round of Ethereum-based digital art.

Rarible gains steam as Crypto Twitter influencers begin sharing art

Over the past few weeks, both Crypto Twitter influencers and artists involved in the crypto space have been heavily involved in Rarible, a digital marketplace where creators can issue, then distribute non-fungible tokens and receive commissions for doing so.

One of the biggest promoters of the platform is “BlueKirby,” the pseudonymous Yearn.finance promoter known for hilarious interactions with the DeFi space. They sold an art created by “Wrong Nebula,” which transplated DeFi imagery across a painting of The Last Supper, for 100 ETH.

According to Messari, Rarible has reached a point where it has processed over $5 million in sales this month, which is far above the $2,300 seen in June.

Much of the recent hype around Rarible seems to be related to the RARI token, which is distributed to users of the platform.

Rarible notably isn’t the only platform for NFTs. There are other projects like MEME, and Makersplace, which act as platforms where users can mint and distribute digital art.

Just a short-term meme?

While NFTs have the wind at their sails now, a pseudonymous crypto commentator and DeFi analyst postulated that this may just be a short-term “meme.”

They shared the tweet below on Sep. 19, noting how fast tides have changed in crypto and in DeFi in particular as of late.

  1. There was the hype around rebasing coins, which spawned a 5,000 percent surge in Ampleforth, then forks such as Based. This quickly died down, resulting in corrections in AMPL and other tokens.
  2. Polkadot-based projects such as Polkaswap and others gained traction as many acknowledged the high transaction fees and slow transaction times of the Ethereum network.
  3. Yield farming projects like Kimchi, HotdogSwap, and about any other food under the sun rapidly saw adoption as they offered obscene yields for short periods of timing.
  4. Then now we’re here, at NFTs.

A key theme running through all these trends is that they only lasted for a short period of time, and after money stopped flooding in, the yields and returns offered in each of these sub-sectors were quick to deflate. To illustrate how fast these trends have come and gone, AMPL’s surge was in late July, which is basically no time at all in a macro market cycle.

That’s not to say that NFTs are the next food coins. The point the trader was making is that this market cycle, DeFi investors seem inclined to jump ship at signs of a better investment opportunity, even if that means abandoning a fundamentally viable idea.

The post The new DeFi market where users can sell jpgs and gifs for thousands in Ethereum appeared first on CryptoSlate.

The new DeFi market where users can sell jpgs and gifs for thousands in Ethereum

In 2017, CryptoKitties became one of the most popular applications on Ethereum. These digital art pieces, which could be traded and bred in search of rarer creatures. The idea with these on-chain kitties was that one could show off that they own a certain character, something similar to people with wealth showing off their art collection.

While the prominence of CryptoKitties rapidly diminished after the Bitcoin and altcoin market topped in late-2017 and early-2018, it seems that we’re coming full circle with another round of Ethereum-based digital art.

Rarible gains steam as Crypto Twitter influencers begin sharing art

Over the past few weeks, both Crypto Twitter influencers and artists involved in the crypto space have been heavily involved in Rarible, a digital marketplace where creators can issue, then distribute non-fungible tokens and receive commissions for doing so.

One of the biggest promoters of the platform is “BlueKirby,” the pseudonymous Yearn.finance promoter known for hilarious interactions with the DeFi space. They sold an art created by “Wrong Nebula,” which transplated DeFi imagery across a painting of The Last Supper, for 100 ETH.

According to Messari, Rarible has reached a point where it has processed over $5 million in sales this month, which is far above the $2,300 seen in June.

Much of the recent hype around Rarible seems to be related to the RARI token, which is distributed to users of the platform.

Rarible notably isn’t the only platform for NFTs. There are other projects like MEME, and Makersplace, which act as platforms where users can mint and distribute digital art.

Just a short-term meme?

While NFTs have the wind at their sails now, a pseudonymous crypto commentator and DeFi analyst postulated that this may just be a short-term “meme.”

They shared the tweet below on Sep. 19, noting how fast tides have changed in crypto and in DeFi in particular as of late.

  1. There was the hype around rebasing coins, which spawned a 5,000 percent surge in Ampleforth, then forks such as Based. This quickly died down, resulting in corrections in AMPL and other tokens.
  2. Polkadot-based projects such as Polkaswap and others gained traction as many acknowledged the high transaction fees and slow transaction times of the Ethereum network.
  3. Yield farming projects like Kimchi, HotdogSwap, and about any other food under the sun rapidly saw adoption as they offered obscene yields for short periods of timing.
  4. Then now we’re here, at NFTs.

A key theme running through all these trends is that they only lasted for a short period of time, and after money stopped flooding in, the yields and returns offered in each of these sub-sectors were quick to deflate. To illustrate how fast these trends have come and gone, AMPL’s surge was in late July, which is basically no time at all in a macro market cycle.

That’s not to say that NFTs are the next food coins. The point the trader was making is that this market cycle, DeFi investors seem inclined to jump ship at signs of a better investment opportunity, even if that means abandoning a fundamentally viable idea.

The post The new DeFi market where users can sell jpgs and gifs for thousands in Ethereum appeared first on CryptoSlate.

Top Defi Dogs YFI, LEND, and UNI Correct Nearly 20%

Bitcoin, Ethereum, and other major crypto assets all plummeted over the last several hours, but few have dropped as hard as top DeFi tokens, YFI, LEND, and UNI.

Why have these once soaring altcoins plunged so hard and is there more downside ahead?

Yearn-Ing For The DeFi Trend To Continue After 20% Pullback

For a while there, it seemed like nothing could put a damper on the flaming hot DeFi trend. Coin after coin exploded in value as interest poured into each new DeFi project.

Some of the most successful highlights of the DeFi space in recent weeks, are Yearn.Finance (YFI), Aave (LEND), and Uniswap (UNI).

Related Reading | Yearn.Finance (YFI) Flies 15% Percent From Local Price Floor, Fractal Targets $60K+

LEND has had some of the strongest year over year performance out of any cryptocurrency, while YFI is now far more expensive than Bitcoin itself.

UNI is the newest of the bunch, but that hasn’t stopped it from first debuting as the crypto version of the stimulus check at $3 per token, then in just days more than doubled in value to a high of over $7. Now, it’s at under $5 after a more than 20% collapse across just about all DeFi tokens.

But what did these altcoins crash much harder than Bitcoin and Ethereum, and other top cryptos?

yfi lend aave yearn finance uni uniswap

LENDUSD Versus UNIUSDT Versus YFIUSD Chart Comparison | Source: TradingView

Why Have YFI, LEND, and UNI Fallen So Hard Compared To Bitcoin and Ethereum?

The crypto market – and even the greater financial market – is a sea of red today after the dollar index bounced hard. The DXY recovering has hit Bitcoin and other top crypto assets hard, even stocks, metals, and more.

The dollar’s recovery is likely investors derisking into a safe haven asset with stability to avoid any election-related volatility.

Related Reading | Is Uniswap’s UNI The Crypto Version of a Stimulus Check at $3 Per Token?

If investors are derisking en masse and following the advice of top industry analysts, then it isn’t a surprise to see some of the newest, shiniest, and most recently hyped tokens take the brunt of the beating.

These assets are sitting in the fattest profits, just waiting to be taken from paper gains into real ROI. And the reason for Bitcoin and Ethereum holding up better is because some crypto investors prefer to move back into those top cryptos versus taking their capital out of the market and back into cash.

And with many DeFi token investors still in sizable profit, it could only just be the start of a deeper correction.

Featured image from DepositPhotos, Charts from TradingView

US banking regulator authorizes federal banks to hold reserves for stablecoins

Federal banks in the U.S. see new capacity to provide services to crypto firms, specifically stablecoin operators.

Per an interpretive letter from the U.S. Office of the Comptroller of the Currency released on Monday, national banks will be free to hold reserve currencies for stablecoins.

The new guidance reads, "We conclude that a national bank may hold such stablecoin 'reserves' as a service to bank customers."

Alongside the announcement, Acting Comptroller of the Currency Brian Brooks noted that stablecoin services are already a part of many banks' activities: “National banks and federal savings associations currently engage in stablecoin related activities involving billions of dollars each day.”

The letter does, however, specify that for now, this will only apply to stablecoins backed 1:1 with another currency, meaning that tokens dependent on "baskets" of currencies like Saga or some versions of Libra are excluded. 

Tether (USDT) is a famous example of a stablecoin pegged to the U.S. dollar, using reserves held in New York. However, there has been lingering controversy over Tether allegedly using those reserves to cover losses at sister exchange Bitfinex.

Since Brian Brooks, the former head of Coinbase's legal department, took over as acting head of the OCC in March, the office has been extremely active in expanding the role that crypto can play in U.S. banks. In July, the OCC sent out a similar decision confirming that federal banks can custody crypto assets.

SEC vs. Telegram: Part 1 — Key takeaways for now

The legal battle between the U.S. SEC and Telegram could be a strong warning against the SAFT process.

Telegram is a popular, global, cloud-based instant messaging, videotelephone and voice-over service company. Particularly popular with crypto-enthusiasts, at the end of 2017, Telegram came up with a plan to raise funds to support the development of a new crypto asset, dubbed Gram, and a network originally planned as the Telegraph Open Network. Proceeds would also fund further expansion of the messaging service that had previously been funded by the founders.

Telegram set out to fundraise in two distinct stages. The first involved the sale of contractual rights to acquire Grams if and when they were successfully launched. The second stage would be to release the Grams themselves. This process is widely known as the SAFT — an acronym for Simple Agreement for Future Tokens — although the contracts issued by Telegram did not actually use that particular label.

Telegram was well aware that the contractual rights would be treated as securities by U.S. regulators, notably the Securities and Exchange Commission. Because it is illegal to sell securities in the United States unless those sales are registered with the SEC or exempt from such registration, those sales were limited to verified accredited investors in order to comply with one of the available exemptions from registration. In essence, this meant that only wealthy individuals or entities were allowed to invest in those contracts. The sale of those contractual rights occurred in early 2018, raising about $1.7 billion from investors worldwide. A total of 39 of the 171 initial purchasers were in the United States.

With the proceeds in hand, Telegram promptly set about finalizing the development of the Grams. In October 2019, just before Telegram was ready to begin the second phase and launch its Grams, the SEC initiated a complaint in federal court seeking to halt the planned release. A temporary restraining order was issued, and Telegram and the SEC squared off.

Telegram argued it had complied with the requirements of the U.S. law by registering the contractual rights and waiting to issue Grams until they were functional. At that point, the company argued, the Grams would not be securities. The SEC contended that the entire plan amounted to a single “scheme” to distribute Grams, which were not registered or exempt from registration. Under this view, because there was a single scheme, the original purchasers of the contractual rights would be “underwriters” acting for Telegram, and thus the entire distribution would be tainted because the ultimate purchasers would not all qualify as accredited investors.

On March 24, 2020, in a widely reported decision, Judge Peter Castel ruled in favor of the SEC. Shortly thereafter, after being told by the judge that the injunction applied to all sales regardless of where in the world the original purchasers might be located, Telegram abandoned its plans and settled with the SEC, agreeing to pay a fine of $18.5 million to the SEC and to return $1.2 billion — the remaining proceeds from the sale of contractual rights — to the original purchasers.

This is not the first time the SEC has gone after a crypto-entrepreneur or objected to the SAFT process. It is not the first time the Commission has intervened in the absence of any claimed fraud. It is not the first time the SEC has sought to reach crypto-entrepreneurs operating primarily overseas.

It is, however, the first time that the SEC has prevailed on the position that a SAFT (or sale of contractual rights to acquire a crypto asset when launched) has to be integrated with the eventual sales or resales of the asset because the original purchasers are actually underwriters.

The key takeaways from the judge’s decision

The decision in SEC v. Telegram was reached on a motion for preliminary judgement, not after a full trial. Nevertheless, because there is no appeal, the ruling is binding on Telegram and is currently the most recent indication of how broadly the SEC intends to pursue SAFT distributions and how courts might react.

When it comes to crypto sales using the SAFT process, it does not matter what entrepreneurs call contractual rights. Telegram did not call the contractual rights SAFTs, but the SEC’s known hostility to the process easily translated to the arguments the Commission made in the case.

The result in the case was highly fact-specific, but the SEC clearly has taken the general position that both phases of a SAFT distribution can constitute a single offering, especially when the purchasers of the contractual rights have the immediate power to resell crypto assets that are issued to them.

Merely deciding to limit initial sales to non-citizens outside the boundaries of the U.S. is not enough to assure that the SEC will not intervene. Efforts by Telegram to limit the scope of the preliminary injunction were unsuccessful, which means that the company was not allowed to proceed with selling Grams anywhere in the world.

Finally, there is another case to watch closely. SEC v. Kik is currently being considered in the same federal district (the Southern District of New York) but by a different judge. It, too, involves an international offering of tokens pursuant of the SAFT process, and the judge in that case has already said that the facts before it are distinguishable from those in Telegram. Until and unless this case is decided in favor of Kik, however, the current state of the law stands as a significant warning to any crypto-entrepreneur contemplating the SAFT process.

This is part one of a three-part series on the legal case between the U.S. SEC and Telegram’s claims to be securities — read part two on why this decision should not be followed in other cases here, and part three on the decision to apply U.S. requirements extraterritorially here.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

The opinions expressed are the author’s alone and do not necessarily reflect the views of the University or its affiliates. This article is for general information purposes and is not intended to be and should not be taken as legal advice.

Carol Goforth is a university professor and the Clayton N. Little Professor of Law at the University of Arkansas (Fayetteville) School of Law.

OKEx Earn Now Supports Uniswap Liquidity Mining for Passive Income Generation

OKEx Earn, a collection of DeFi services offered by the global crypto spot and derivatives trading giant OKEx allows users to earn passive income from their crypto holdings. The Earn program offers a range of services with the potential to generate good returns over time while allowing users to hold on their crypto assets.

According to the platform, OKEx Earn is predominantly fueled by two services – OKEx Pool and OKEx Loans, which together offers six different ways for the users to earn passive income in cryptocurrencies through Savings, Term Deposits, Staking, C2C Loans, Earning DAI with MakerDAO and Liquidity Mining with DeFi Tokens.

As a successful offering, OKEx Earn continues to receive constant upgrades in the form of support for new tokens. The latest of such an addition is the introduction of Uniswap contracts for mining to OKEx Earn users. In a recent statement, OKEx announced that the integration of Uniswap Protocol to its Earn program officially went live on September 19, 2020.

Support for Uniswap mining on OKEx Earn closely follows the listing of UNI tokens two days prior on the exchange platform. Spot trading of UNI on OKEx went live on September 17 against USDT, ETH and BTC pairs. Other trading products supporting UNI include margin, swap trading, coin-margined perpetual swap and savings. Soon after getting listed on OKEx, the price of UNI exhibited a 270% increase to reach $3.70.

The Uniswap liquidity mining program is available only for four crypto pairs viz., ETH-USDT, ETH-USDC, ETH-DAI and ETH-WBTC. OKEx Earn also provides users with the flexibility to redeem at any time to unlock the staked assets within 24 hours and earn UNI bonus alongside.

Learn more about OKEx Earn at – https://www.okex.com/earn

 

Is a Bitcoin ‘death spiral’ imminent following yesterday’s massive difficulty adjustment?

Bitcoin experienced two massive mining difficulty adjustments recently. Is this something to be concerned about?

Before the recent halving, many were prophesying a so-called “death spiral” for Bitcoin. This theory hinges on the idea that the halving of the block reward leads to an exodus of miners due to the sudden unprofitability of mining activities. As a result, the network hashrate decreases and the block time increases, meaning that miner revenue further diminishes, pushing more miners off the network. This loop would then allegedly continue until there is no one left to mine Bitcoin (BTC).

Bitcoin mining difficulty. Source: Glassnode.

On September 20, Bitcoin experienced one of the biggest upward mining difficulty adjustments in its history. In fact, it is the second major upward adjustment since the halving. So, were the doomsday prophets right all along?

Bitcoin hashrate and block time (14-day average). Source: Glassnode.

In order to answer this question, we have to understand what triggers difficulty adjustments. All Bitcoin miners compete to solve the next block. The more hashpower the network enjoys, the faster that can happen. In order to make sure that the generation rate remains at an interval of 10 minutes per block, Satoshi Nakamoto embedded a feature into the protocol that adjusts the difficulty approximately every two weeks. If during this period, the time between blocks falls below that mark, the difficulty adjusts upwards. If the time between blocks rises above that number, the opposite occurs.

These two recent adjustments came as a result of an immense increase in hashpower. Thus, instead of supporting the death spiral scenario, it would appear to indicate the excellent health of the Bitcoin network.

Crypto Listing and Delisting Announcements: Week 38

Here is our weekly collection of digital asset listing and delisting, trading pair-related announcements by cryptocurrency exchanges that we found last week and today. Have we missed something? Do you have information about new listings and/or delistings? Let us know here. _________________________________________ Bibox Listings: Keep Network (KEEP) ChartEx (CHART)

Crypto Roundup: September 21st, 2020

Bitcoin is back in the driving seat. The leading crypto has made 2.5% gains over the past week, pushing the crypto market upwards as sentiment shifts in favor of the bulls.

The move comes on the back of macroeconomic news. Last Wednesday, the Federal Reserve pledged to keep interest rates close to zero until 2023. Traditional safe-haven gold failed to capitalize on subsequent weakness in the dollar, but digital safe haven Bitcoin moved on upwards to flirt with $11k.

Meanwhile, Ethereum is trading sideways. The smart contract platform has passed several network milestones in the last few days, yet the price hasn’t reacted.

This Week’s Highlights 

  • MicroStrategy and Grayscale Chase Bitcoin Gains
  • DeFi Drives Daily Ethereum Transactions to All-time High

MicroStrategy and Grayscale Chase Bitcoin Gains

Two of the biggest Bitcoin buyers are facing off on Twitter. MicroStrategy CEO Michael Saylor tweeted on Tuesday that his firm has completed its purchase of a whopping 21,454 BTC, or 0.1 percent of the total supply.

This prompted another big buyer — Barry Silbert, founder and CEO of Grayscale — to joke of a “buying race” between the two firms. Investment fund Grayscale, however, has had a significant head start. In April, the firm had already accumulated more than 1.7% of the total supply of BTC and was later said to be buying an average of 1,190 BTC per day.

DeFi Drives Daily Ethereum Transactions to All-time High

Ethereum has recorded the highest number of daily transactions ever, according to data from Etherscan. This is driven by the newfound popularity of decentralized finance, with the amount of value locked in DeFi apps now hitting all-time highs on the approach to $10 billion.

Meanwhile, competitor NEO continues its multi-week winning streak. The “Chinese Ethereum” is showing double-digit percentage gains as traders anticipate the launch of multi-chain yield farming app Flamincome. This is released today, and will allow crypto traders to simultaneously farm yield across NEO and Ethereum.

The Week Ahead

In the coming week, market volatility could be sparked by rising tensions between China and its neighbors Taiwan and Indonesia. These territorial grievances are coming to the surface just as the U.S. ups the ante in its own battle over tech industry regulation.

On Friday, traders will be braced for the expiry of a big batch of Bitcoin options contracts. Data from Skew shows the number of open contracts is almost at an all-time high, and around half of them are due to expire on Friday. This could spark a sudden move as a large number of traders reposition themselves.

Image by Mediamodifier from Pixabay

Blockchain-Powered Brand KIM Diamond Announces Flagship Store and Selene Moon Goddess Jewelry Line

Chinese jewelry brand KIM Diamond uses blockchain technology to govern integration between sourcing diamonds from mines, for custom-made jewelry pieces. KIM also unveiled its Selene Moon Goddess jewelry series, and flagship store location at a recent event at luxury Chengdu hotel, The Temple House. 

21st September 2020, Chengdu, China KIM Diamond is a China-based, blockchain powered Fintech jewelry brand that focuses on sourcing loose diamonds from mines for making exquisite jewelry pieces. The brand was unveiled in Chengdu on September 16, 2020, and announced its Selene Moon Goddess line along with the KIM blockchain technology. 

The press conference took place at ‘Top 10 ULI prize winning hotel’ The Temple House, and was attended by hundreds of fashionistas, VIPs, Diamond mining figure-heads, and other distinguished design industry guests. 

The prestigious KIM event included multiple product announcements, and a signing ceremony of upstream mineral resources, witnessed by industry leaders like LU LINLIN, (KIM brand founder), and EVA FOO. (diamond system partner SCRY founder) 

In addition to the presentation of the Selene series, a one-carat pink diamond was cut and chained live at the venue, and then auctioned off for a price of 500,000 Yen to an undisclosed bidder.  

KIM is the world’s first financial jewelry brand that integrates loose diamond mineral resources with entity jewelry stores throughout the entire process, all governed by blockchain technology. This will bring transparency, and accountability to the whole process, preventing any chance of illicit activity throughout the process. 

KIM’s on-chain information will soon be viewable in any smart chip system. Additionally, KIM provides services to directly purchase loose diamond assets in the market and will further expand the multi-party cooperation with diamonds in different cities around the globe. 

The combination of KIM jewelry and blockchain brings new transparency and unique data recording value to the consumer market. Each consumer can write their own memorable message on the diamond blockchain that can always be viewed, solidifying their sentiment for years to come. 

The KIM flagship jewelry store is located in Chengdu, China, and offers clients various diamonds, which can be used for beautiful custom jewelry inlays. In addition to loose diamonds KIM also offers engagement rings, wedding rings, select jewelry pieces, and custom made pieces. 

Check out the KIM official site for a unique piece of jewelry for that special someone today! 

For more information about KIM, please visithttps://kimdiamond.cn/.

Media Contact Details

Contact name: Kim Dimond

Email: kim@kimdimond.cn

KIM Jewelry is the source of this content. This Press Release is for informational purposes only. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all.

The post Blockchain-Powered Brand KIM Diamond Announces Flagship Store and Selene Moon Goddess Jewelry Line appeared first on NullTX.

Bitcoin is a better gold than gold itself, Tyler Winklevoss says

Bitcoin may never escape its ongoing comparisons to gold.

According to Tyler Winklevoss, co-founder of the Gemini crypto exchange, Bitcoin beats gold at its own game. 

"Bitcoin is better at being gold than gold — and not just incrementally, but by an order of magnitude or 10X better," Winklevoss said in a Sept. 21 tweet.  

Over the last decade or so, Bitcoin has risen dramatically in price, surpassing numerous landmark price comparisons along the way. For many, it is now seen more as a store of value than a transactional currency, and the public often compares the digital coin against gold; a time-tested method of value storage used for thousands of years.

"I don't understand why there's a competition between gold and Bitcoin," NebraskanGooner, a pseudonymous crypto trader on Twitter, told Cointelegraph. "I consider them both a store of value," he added. NebraskanGooner is also the founder of LVL, a banking solution in the crypto space.  

In his social media post, Winklevoss included a chart pitting the two assets against each other. Out of seven categories, gold ruled one — the total amount money held in the asset. Gold has a market cap of $9 trillion, while BTC has a market cap of $200 billion. Otherwise, Bitcoin took the win for scarcity, durability, portability, divisibility, storage and counterfeit difficulty. 

Bitcoin has also recently gained further notoriety as a store of value in the mainstream public eye in 2020, as multiple mainstream giants have invested heavily into the asset.

Ethereum Classic is partnering with security firms to prevent further 51% attacks

Ethereum Classic (ETC) Labs — the code maintainer and non-profit behind the Ethereum fork — announced its partnership with two cybersecurity firms to prevent the repeated 51% attacks that the Ethereum Classic network suffers from.

Repowering Ethereum Classic

In a blog post, the ETC Labs said the ETC Core Dev Team and itself were partnering with cybersecurity teams OpenRelay and ChainSafe as part of the newly-unveiled Network Security Plan. This ensures stakeholders are not affected by another 51% attack on the ETC network.

Such an attack occurs when miners on a proof of work networks, such as Bitcoin or Ethereum Classic, pool together their massive computing power to eventually gain the majority control of the underlying network. This allows them to reorganize blocks, mint more rewards, and present a threat to the network’s true decentralization.

While defenders of the idea state such an attack is difficult to both organize and carry out — Ethereum Classic has suffered such an attack…thrice. Last month, and earlier this year, the network was hit by a quick succession of 51% attacks by a group of unidentified miners.

They were expensive attacks too. The malicious actors behind the doing made away with millions of dollars worth of ETC, which they purported sold on the open market. It presented an existential threat to ETC, which the Dev team sought to solve.

This is where the partnership with OpenRelay and ChainSafe comes to play. Together, with the ETC Labs, the teams will collaborate to increase 51% attack resistance and to implement immediate technical responses to make the network more secure:

“The team is in the process of developing and testing immediate technical responses that will make the network more secure. They will also help address the 51% attack vulnerability that all PoW blockchains have.”

Tackling the 51% attack problem

In a statement, James Wo, the founder and chairman of ETC Labs, said OpenRelay and ChainSafe are both “well acquainted with Ethereum Classic, through working together, will have some of the most brilliant minds in blockchain tackling the 51% problem in tandem.”

Eric Tu,  a developer at ChainSafe, shared the sentiment, stating that the team looks forward to working with the ETC Labs on the research and development of helping secure PoW blockchains against 51% attacks. He said, “Our collaborative efforts will play a crucial role in securing ETC against malicious attackers on the network.”

ETC holders might have something to rejoice about after all.

The post Ethereum Classic is partnering with security firms to prevent further 51% attacks appeared first on CryptoSlate.

After 16% drop, traders target $250 Ethereum price — Here’s 3 reasons why

Ethereum price corrected 16% in 4 days, led by these three key factors.

The crypto market saw a significant correction today and Ether (ETH) price did not escape the carnage. In the last 24 hours, the top altcoin recorded a 12% drop as the price fell to $331. In the same period, Bitcoin (BTC) price slipped by 6.3% to find support near $10,300.

Ether’s decline comes after a head and shoulders pattern became clear on the daily timeframe and the price slid into a shart downtrend over the past four day. 

ETH/USD 1-week chart

ETH/USD 1-week chart. Source: TradingView.com

Three reasons are likely behind Ether’s poor performance: a technical rejection, a slight deflation of the Decentralized Finance (DeFi) bull run and weakening momentum.

Several analysts expected Ether to correct

When Ether’s weekly candle opened on Sept. 21 a few technical analysts suggested the likelihood of a bearish retest.

A pseudonymous trader known as “Cred” said Ether might retest the $390 level before seeing a potential pullback. He explained:

“Weekly time frame still looking like a bearish retest of the previous range ($390s). Bitcoin is looking better on the weekly, but also pulling back from daily resistance.”

Since then, Ether’s price declined from $372 to as low as $331 across major cryptocurrency exchanges. 

Michael van de Poppe, a Cointelegraph contributor and full-time trader at the Amsterdam Stock Exchange, raised a similar point. Van de Poppe emphasized that the $385 to $395 resistance range signalled that a strong rejection could be on the cards.

ETH/USD 4-hour chart

ETH/USD 4-hour chart. Source: TradingView.com

Eventually, the rejection of a key multi-year resistance area led the selling pressure on Ether to intensify. 

Van de Poppe said:

“The $385-395 level says; no Bueno. Continued range-bound movements. If we get to $280 and/or $250, I'd be happily looking for longs.”

Ether was already facing a clear rejection at a key resistance level before Bitcoin even started to pull back sharply. It appears that Bitcoin’s rejection at $11K simply amplified the near-term downturn of Ether.

DeFi correction placed additional pressure on Ether

In the past three months the Ethereum network has thrived as user activity skyrocketed and various on-chain metrics demonstrated significant demand for Ether.

The explosive growth of the DeFi sector led to overwhelming demand on the Ethereum blockchain network to the point where it started to clog and transaction fees exploded to new highs.

Data from Cryptofees.net shows that Ethereum is processing around $3.77 million in daily fees to miners. In comparison, Bitcoin has been settled around $369,000 in daily fees on average in recent weeks.

Much of the optimistic sentiment around Ethereum revolved around the fast growth of the DeFi space. Hence, when DeFi tokens crashed, it likely placed additional selling pressure on Ether.

On average, DeFi tokens recorded a 40% drop over the past week. Even DeFi giants, like Yearn.finance (YFI), dropped by 46% within the last ten days.

Weakening market momentum 

Even before the Bitcoin price drop, Ether was noticeably lagging behind BTC. The price continued to stagnate throughout the past two weeks, while BTC managed to rally from $10,300 to $11,100.

From its yearly peak, the price of Bitcoin is down by around 16%. In contrast, Ether has fallen from more than 30% from $488.95 to $342.

Despite this, over the long term, on-chain analysts remain generally optimistic about the trend of Ether and the Ethereum network.

Increasing number of Ethereum weekly active users

Increasing number of Ethereum weekly active users. Source: CryptoQuant 

Ki-Young Ju, the CEO of on-chat data platform CryptoQuant, said the number of weekly Ethereum active users is rising. This data underlies the continuous increase in demand for DeFi platforms and shows that the fundamentals of the network are strengthening.

Keep track of top crypto markets in real time here

How The Dollar (DXY) Index Is Responsible For Today’s Bitcoin Carnage

Bitcoin price is down $800 in just over 24 hours, and elsewhere in the finance space, there is pure carnage. Gold fell below $1900, and stocks are downward spiraling. And behind it all is the dollar. But why is the Dollar Currency Index (DXY) potentially responsible for the market-wide collapse and what exactly is driving it?

Bitcoin Price Collapses $800 In Early Week Selloff, Another Test of $10,000 Next?

Bitcoin price tapped over $11,000 one last time before a deadly drop began later Saturday night and into Sunday. The drop extended deeper into the weekday trading week, with a fall to under $10,400 starting Monday morning.

Related Reading | “Intense” Bitcoin Whale Exchange Flow Could Be Behind Weekend Crash

It wasn’t just Bitcoin, Ethereum, Ripple, and even top DeFi tokens tanked in the selloff. Blockchain data shows that miners were partly responsible for driving prices down, however, the drop is really due to the dollar.

The Dollar (DXY) Index Deals Devastating Blow To Crypto, Metals, and Stocks

Although Bitcoin has dragged down the rest of the crypto market, the leading cryptocurrency by market cap is just part of a market-wide collapse.

Alongside Bitcoin’s steep breakdown, the Dow Jones Industrial Average has bled over 800 points and gold is now trading back below $1900 an ounce.

Behind it all could be the dollar. The DXY Dollar Currency Index is a weighted basket of top forex currencies trading against the dollar.

Related Reading | Bitcoin, Metals, And Equities “Will Fly” If Dollar Downtend Deepens

Bitcoin and gold are directly opposed to the dollar, both trading against it as USD pairs and due to their finite supplies. Together, these assets ebb and flow at varying degrees.

When Bitcoin is strong, the dollar is often weak and vice-versa. And that’s exactly what has been behind the crypto asset’s recent climb to over $12,000 an inverse correlation with DXY shows.

bitcoin dollar dxy comparison

Inverse BTCUSD Versus DXY Dollar Currency Index Correlation | Source: TradingView

The March Black Thursday collapse was a panic-driven flight out of assets and into the safe haven of the dollar. Since then, however, markets have been soaring and the dollar has been in decline. Stimulus efforts to save the stock market and the economy have dampened the dollar’s legacy.

According to the DXY, the dollar recently found support and formed an inverse complex head and shoulders bottom. These reversal patterns are essentially an inverse head and shoulders with an extra head.

dxy dollar inverse complex head and shoulders

Inverse Complex Head And Shoulders DXY Dollar Currency Index  Source: TradingView

Coincidentally, Bitcoin recently retested and confirmed a head and shoulders top pattern, adding to the inverse correlation theory. The cryptocurrency is currently headed back down after a throwback, while the DXY is only just now breaking through resistance.

This early break of resistance has already sent crypto, metals, and equities crashing, and the dollar’s recovery could only just be getting started.

dxy dollar bitcoin btcusd

Falling Wedge Reversal Pattern DXY Dollar Currency Index  Source: TradingView

Zooming out, the complex bottom formation is breaking out of a falling wedge reversal pattern on daily timeframes. After the initial breakout, DXY ground down diagonal support but has since made a strong rebound.

That rebound has absolutely crushed Bitcoin, and it may only just be getting started. If investors panic once again and money moves into the safety net of the dollar, markets could be in for another Black Thursday style collapse.

Arsenal Goes Crypto With Sportsbet.io Partnership

The alliance between sports and cryptocurrency appears to only become more prominent as time goes on. Following recent partnerships between cryptocurrency and blockchain-related companies with football clubs, it seems another coup has been scored in the industry’s favor with the announcement that Sportsbet.io has signed a historic deal with the English Premier League team Arsenal FC.

This deal is one of the biggest of its kind in the cryptocurrency industry as Arsenal FC is one of the biggest football clubs in the world with 13 league titles under its belt. 

Sportsbet.io and Its Recent Developments

Prior to this announcement, Sportsbet.io has already had a reputation within the industry for its cutting-edge innovation which heavily incorporates cryptocurrency. This partnership will allow the company to build on its current efforts while offering exclusive experiences to Arsenal’s millions of users worldwide. 

The company’s reputation for innovation has not gone unnoticed by Arsenal, who have stated that they are happy to team up with Sportsbet. Arsenal Commercial Director, Peter Silverstone, reflected

“It’s been fantastic getting to know Sportsbet.io and learning about our shared spirit of innovation and the ground-breaking work they are doing in the fintech space.”

Moving Forward With Arsenal

As per the formal announcement of the partnership, there will also be a focus on the development of women in football. Sportsbet’s operation is based in the country of Estonia and through their deal with Arsenal, coaches will be flown in to conduct football clinics to Estonia’s U19s women’s team. There is a lot of emphasis being placed not only on social responsibility but also of safe and responsible gambling on Sportsbet’s platform. 

Through Arsenal’s men and women’s teams, Sportsbet.io will also produce relevant digital content that will be shared with the football club’s online following which numbers in the millions. It should be noted that Arsenal’s women’s team is the most popular female team in the world, with 6 million followers. 

The management of the Coingaming Group, Sportsbet.io’s parent company, has shared enthusiasm following this announcement of the three year deal with one of the most followed sporting teams in the world. Tim Heath, Founder of the Coingaming Group, stated:

“Watch this space, as we seize the opportunity to promote crypto gaming awareness, and hope to push forward crypto gaming adoption on a scale never seen before in football.”

The post Arsenal Goes Crypto With Sportsbet.io Partnership appeared first on NullTX.

Uquid Launch the Defi Shopping Stake (DSS) and Defito Finance (DTO)

The trouble with many current DeFi projects is that while they eliminate traditional institutions from the mix, they instead transfer ultimate control over to a select group of insiders who have their financial motives and agendas. It’s an arrangement that’s ripe for abuse, and something that should be anathema to anyone who believes in the real promise of DeFi.

But now, there’s a DeFi solution that’s on a mission to deliver where so many others have failed. It’s called the Defito (DTO), and Defi Shopping Stake (DSS) is designed to be a platform that is a Bridge between Defi and E-Commerce.

About DTO:

A DTO token controls the Defito Ecosystem. Defito is a decentralized finance (Defi) platform with the goal of providing a solution for Defi to access e-commerce such as :

  • Shopping Mining
  • Shopping Staking
  • Automated Shopping Making

DTO is the native token in the Defito platform. Users can earn it by contributing liquidity to Defito’s liquidity pool and use the token for Platform Governance and Online Shopping.

About DSS (Defi Shopping Stake):

We are proud to introduce DSS to the public for the first time. We believe that the Defi Shopping Stake (DSS) model will be used more widely in e-commerce companies in the near future.

DSS is a Defi-oriented enhancement of the Loyalty program system. As usual, each customer will have to show loyalty cards (also known as Rewards cards, Points cards, or Club cards) and Present them after each successful purchase (including online shopping) to collect the Reward Points.

From now on, each wallet address used for payment will automatically be used for bonus recognition after each order is completed. The customer’s rewards points will be recognized with the smart contract and available for Spending at any time.

Burn Mechanism & Governance

Token Vote: The community has some right to vote for a burning token from the shopping treasury. If they want token keep for further development of the reward system or Burning for the growing value of DSS.

Burn Mechanism

  • Burning Mechanism works only for DSS, Not for DTO.
  • DSS reward will be spent in Uquid Digital Shopping for Payment. The same Amount in the Uquid Shopping treasury will burn.

Governance

  • Burning Mechanism is work based on governance (Annual Voting).
  • DTO holders have the right to vote for burning DSS in the treasury.

How to Stabilize DSS Value?

– The number of DSS tokens generated by staking and mining is limited.
– If the community votes for DSS token burning, the number of tokens will become scarce.

– When the amount of tokens in the shopping fund is burned. A further amount of tokens will be repurchased from the market. This process continued over time and will significantly increase the DSS value.

About Uquid:

On May 28, 2020, the digital currency and blockchain company Uquid has announced that the Uquid Shop is now live and accepting cryptocurrencies like bitcoin cash for payments. The team at Uquid has dubbed the market the “world’s biggest digital shop for crypto users is ready to launch with 30,000 digital products.”

To know more, visit: defi.uquid.com


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post Uquid Launch the Defi Shopping Stake (DSS) and Defito Finance (DTO) appeared first on Bitcoin News.

Uquid Launch the Defi Shopping Stake (DSS) and Defito Finance (DTO)

The trouble with many current DeFi projects is that while they eliminate traditional institutions from the mix, they instead transfer ultimate control over to a select group of insiders who have their financial motives and agendas. It’s an arrangement that’s ripe for abuse, and something that should be anathema to anyone who believes in the real promise of DeFi.

But now, there’s a DeFi solution that’s on a mission to deliver where so many others have failed. It’s called the Defito (DTO), and Defi Shopping Stake (DSS) is designed to be a platform that is a Bridge between Defi and E-Commerce.

About DTO:

A DTO token controls the Defito Ecosystem. Defito is a decentralized finance (Defi) platform with the goal of providing a solution for Defi to access e-commerce such as :

  • Shopping Mining
  • Shopping Staking
  • Automated Shopping Making

DTO is the native token in the Defito platform. Users can earn it by contributing liquidity to Defito’s liquidity pool and use the token for Platform Governance and Online Shopping.

About DSS (Defi Shopping Stake):

We are proud to introduce DSS to the public for the first time. We believe that the Defi Shopping Stake (DSS) model will be used more widely in e-commerce companies in the near future.

DSS is a Defi-oriented enhancement of the Loyalty program system. As usual, each customer will have to show loyalty cards (also known as Rewards cards, Points cards, or Club cards) and Present them after each successful purchase (including online shopping) to collect the Reward Points.

From now on, each wallet address used for payment will automatically be used for bonus recognition after each order is completed. The customer’s rewards points will be recognized with the smart contract and available for Spending at any time.

Burn Mechanism & Governance

Token Vote: The community has some right to vote for a burning token from the shopping treasury. If they want token keep for further development of the reward system or Burning for the growing value of DSS.

Burn Mechanism

  • Burning Mechanism works only for DSS, Not for DTO.
  • DSS reward will be spent in Uquid Digital Shopping for Payment. The same Amount in the Uquid Shopping treasury will burn.

Governance

  • Burning Mechanism is work based on governance (Annual Voting).
  • DTO holders have the right to vote for burning DSS in the treasury.

How to Stabilize DSS Value?

– The number of DSS tokens generated by staking and mining is limited.
– If the community votes for DSS token burning, the number of tokens will become scarce.

– When the amount of tokens in the shopping fund is burned. A further amount of tokens will be repurchased from the market. This process continued over time and will significantly increase the DSS value.

About Uquid:

On May 28, 2020, the digital currency and blockchain company Uquid has announced that the Uquid Shop is now live and accepting cryptocurrencies like bitcoin cash for payments. The team at Uquid has dubbed the market the “world’s biggest digital shop for crypto users is ready to launch with 30,000 digital products.”

To know more, visit: defi.uquid.com


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post Uquid Launch the Defi Shopping Stake (DSS) and Defito Finance (DTO) appeared first on Bitcoin News.

Better Bitcoin Invoicing is Beneficial to all Industries

Cryptocurrencies are growing in popularity all over the world. For merchants, it introduces a new payment option with far fewer headaches. Invoicing clients has also become a lot simpler with the help of solutions such as DAOWallet. 

Bitcoin Spending Among Merchants is Increasing

Earlier this way, Coinbase released some crucial information. This popular exchange platform provides invoicing and payment processing solutions for store owners all over the world. Accepting Bitcoin payments can be done regardless of whether one has an offline or online store. 

More specifically, Coinbase Commerce processed $135 million in crypto payments in 2019. A respectable number for an industry that is still often overlooked. Moreover, this is a 600% increase in merchant volume compared to 2018. Not only does this confirm the potential of Coinbase Commercie, but it shows that merchants are actively seeking for solutions. 

These statistics are further reinforced by a Chainalysis report. The blockchain analysis firm claims that over $4 billion in Bitcoin flowed through payment processors in 2019. There is a lot of competition in this segment, and store owners are eager to explore the different options. 

According to Statista, digital and mobile wallets accounted for 51.8% of global ecommerce transactions. This highlights the potential of cryptocurrency in this segment. It is a convenient payment method to send across borders, As far as digital payments are concerned, Bitcoin is a catalyst for future ecommerce growth. 

The Story in 2020 so Far

A newer report by Chainalysis indicates this trend is not slowing down. In fact, the COVID-19 pandemic has proven rather beneficial to merchants handling Bitcoin transactions. Even though the value of Bitcoin has dipped sharply in March of 2020, the overall figures remain relatively positive. Merchant services and gambling providers continue to see a healthy influx of funds overall. 

What is even more intriguing is how the Bitcoin price remains closely correlated to spending behavior.  Services tend to receive more Bitcoin payments if the price rises. Albeit this correlation decreased between February and March, the overall figure remains healthy. 

Invoicing Becomes Easier

None of this would be possible without the proper invoicing tools. On paper, it sounds inconvenient to shuffle between fiat currency value and the corresponding Bticoin amount. Figuring out these ratios on a manual basis is impossible when handling vast amounts of volume. Thankfully, there are plenty of invoicing solutions capable of handling these aspects.

Over the years, the growth of Bitcoin invoicing and merchant solutions has been exponential. Relying on payment processors such as Coinbase, BitPay, and CoinPayments is still a popular option. More merchant-oriented solutions have become available over the years, which is another sign of how this industry has matured. 

With so many solutions on the market today, it becomes a bit more difficult to stand. Companies such as DAOWallet pride themselves on streamlining the entire invoicing process. Not only will this help to onboard more merchants and service providers to the cryptocurrency space, but it is also beneficial to customers. 

Under the hood, DAOWallet ensures invoices can be created in any domestic fiat currency. The client can pick from a wide range of cryptocurrencies to complete the payment, and have their account credited in fiat currency as a result. This method also removes any volatility concerns for the company handling the payment. Recipients will receive their exact amount of funds, removing any remaining barrier to accepting crypto transactions. 

For those who want to create Bitcoin invoices in a physical environment, several applications exist. A growing number of mobile solutions have come to market. By embracing this method, it becomes easier to accept and complete Bitcoin payments in real life. 

Its Not About Just Bitcoin

Whereas the first merchant and invoicing solutions all focused on just Bitcoin, that narrative has come to change. Numerous altcoins are vying for traction to be used as viable payment methods. Accepting these different currencies can be done through DAOWallet and other solutions. 

This is great news for store owners, but also the millions of freelancers around the world. Receiving payments is often a hassle, especially when dealing with foreign clients and currency conversion rates. Bitcoin and other crypto assets can be used globally, and converted to local currencies with relative ease. 

Going Beyond eCommerce

Another benefit to innovative invoicing solutions is how they can transform other businesses too. Online gambling and iGaming, for example, is another industry that would benefit significantly from new payment methods. More and more people are turning to these newer forms of gaming and gambling.

Online gambling revenue has already risen to $537 billion in 2019. It is expected that this figure will keep growing by nearly 10% year over year. Now is the time to embrace new payment methods and their associated invoicing solutions. It is time to shift into a much higher gear to ensure future industry growth. 

 

Image(s): Shutterstock.com

The post Better Bitcoin Invoicing is Beneficial to all Industries appeared first on NullTX.

Cointelegraph Consulting releases DeFi Guide to increase wider adoption

Cointelegraph Consulting releases “DeFi Adoption 2020: A Definitive Guide to Entering the Industry,” to speed up DeFi adoption.

Many new users have been attracted to the explosive expansion of the DeFi sector in 2020, seeking to explore the growing selection of finance tools and applications. Not surprisingly, large barriers exist due to complexity, high transactional fees, not to mention the inherent risk of using these relatively new platforms.

In an effort to simplify the user experience by providing a knowledge base, Cointelegraph Consulting has released DeFi Adoption 2020: A Definitive Guide to Entering the Industry. The guide features findings from Cointelegraph Consulting’s landmark survey distributed to DeFi projects in multiple regions around the world. The results examine trends within the industry related to scalability, objectives, and overall project structure. 

This guide is split into three sections with the first part featuring a benchmark analysis of the industry’s landscape that defines many core concepts, introduces key terms, and explains commonly used metrics. The second section is dedicated to exploring some of the main use cases and protocols that provide the framework for more open financial tools. 

In the third section, the guide analyzes some innovative projects such as Wing for their use of Ontology as an alternative to Ethereum and ForTube for their adoption of Binance Smart Chain. Enjin’s latest product Efinity is highlighted as a scaling solution for Ethereum token transfers, while YouHodler is assessed for the use of a centralized finance (CeFi) approach to asset management. THORChain’s cross-chain DEX model is explained, while money market protocol Equilibrium is also featured for their use of Polkadot’s technology to enable cross-chain lending and trades. 

Download the guide, here.

“Intense” Bitcoin Whale Exchange Flow Could Be Behind Weekend Crash

Bitcoin went into the weekend on a strong note, taking out $11,000 and holding above it. But after the cryptocurrency made an attempt at $11,200 a rejection has the asset’s price back to $10,500 where its now at risk of a steeper correction.

Blockchain data shows that the weekend crash could have been driven by whales offloading their BTC. But why did the flow of “whale” funds suddenly get so “intense” and what does this say about how deep the correction goes?

Live From Saturday Night! Weekend Bitcoin Price Pump Rejected

The leading cryptocurrency by market cap appeared primed to pump all through the weekend, but halfway through came to a halt. On Saturday, Bitcoin price set a peak high of $11,180 on crypto exchange Coinbase before a sharp reversal.

The rejection from the high sent the crypto asset’s price momentum downward, breaking down through the bottom trend line support of a rising wedge chart pattern.

bitcoin btcusd

BTCUSD Ascending Wedge Confirms Head and Shoulders S:R Flip | Source: TradingView

Ascending wedges are typically bearish reversal patterns. The rising and narrowing structure tricks market participants into believing an asset’s price is going up, only to later be dumped on and stop losses taken out that have accumulated on the way up.

Related Reading | Bitcoin Bouncing From Bull Market Support Points To 2021 As The Year Of Crypto

The combination of new sellers and buyers having stops triggered at a loss results in a more violent fall. However, there could also be something else that has added to the severity of the over $700 drop in 48 hours.

bitcoin btcusd

100+ BTC Whale Wallets Flow To Exchanges | Source: glassnode

Crypto Whales Watching Results In Intense Behavior Observed

According to glassnode data spotted by a sharp-eyed crypto analyst, the flow of BTC coming from “whales” increased rapidly ahead of the selloff.

These Bitcoin whales all have a balance of 100 BTC or more, or roughly the equivalent of a cool million as of this writing. The wallets containing this amount of Bitcoin or higher suddenly exhibited some “intense” behavior according to the analyst.

Fully transparent blockchain data also confirms that this Bitcoin was sent directly to cryptocurrency exchanges, and not just from one wallet to another.

But what’s the reason for the sudden switch? Previously, whales had been observed moving Bitcoin off of exchanges to hold for the long haul.

Related Reading | US Stock Indices Dow Jones, SPX Tank, Taking Down Bitcoin In Tandem

Recently, however, mining pools and other larger entities are back to pushing Bitcoin to exchanges, but why?

The mood is suddenly shifting in the market once again, from irrational exuberance to fear, uncertainty, and doubt. Profits have been made, and soon assets could be sold off to secure those paper gains if things start falling harder.

The US election and several other key factors hanging over markets make for a fearful future for the rest of the year. But does that mean it is time to be greedy, and those who buy the coming blood will be rewarded when its all over? Or is the blood bath about to get so bad, that not even Bitcoin is safe for what’s to come?

Featured image from DepositPhotos, Charts from TradingView and Glassnode