Ripple started a strong rally after it settled above $0.3000 against the US Dollar. XRP price is up over 50% and it even cleared the $0.5000 barrier to move into a positive zone.
Ripple started a strong increase after there was a break above $0.3000 and $0.4000 against the US dollar.
The price is now trading well above $0.5000, and the 100-day simple moving average.
There was a break above a major bearish trend line with resistance near $0.5000 on the daily chart of the XRP/USD pair (data source from Kraken).
The pair is likely to rise steadily towards the $0.6500 and $0.6800 resistance levels in the near term.
Ripple’s XRP Price is Up over 50%
After consolidating above the $0.2400 level for a few days, ripple’s XRP price started a strong increase. There was a clear break above the $0.3000 resistance zone, opening the doors for a strong surge.
There was a 50% rally and the price cleared many hurdles, starting with $0.4000 (outperforming bitcoin and ethereum). The price surpassed the 50% Fib retracement level of the main downward move from the $0.7877 swing high to $0.1715 low. There was also a break above a major bearish trend line with resistance near $0.5000 on the daily chart of the XRP/USD pair.
The pair is now trading well above $0.5000, and the 100-day simple moving average. An immediate resistance is near the $0.6420 level. It is close to the 76.4% Fib retracement level of the main downward move from the $0.7877 swing high to $0.1715 low.
The next major resistance is near the $0.6800 zone, above which the bulls might aim a test of the $0.7500 resistance level in the near term. An intermediate resistance could be near the $0.7280 level.
Downsides Limited in XRP?
If ripple starts a downside correction, it is likely to remain stable near $0.5500. The first major support is near the $0.5200 level.
The main support could be near the $0.5000 level and the broke trend line. If the price fails to stay above $0.5000, there could be a downside extension towards the $0.4000 support zone.
Technical Indicators
Daily MACD – The MACD for XRP/USD is gaining momentum in the bullish zone.
Daily RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 60 level and showing overbought conditions.
Major Support Levels – $0.5500, $0.5200 and $0.5000.
Major Resistance Levels – $0.6000, $0.6420 and $0.6800.
Bitcoin price corrected lower, but it remained well bid above $32,000 against the US Dollar. BTC is currently rising, but it must clear the $34,000 resistance for a steady increase.
Bitcoin is slowly gaining momentum above the $33,000 and $33,200 resistance levels.
The price is currently trading above the $33,500 level and the 100 hourly simple moving average.
There is a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a strong upward move if it clears the $34,000 resistance level.
Bitcoin Price Is Showing Recovery Signs
There was a downside extension in bitcoin price below the $33,200 support level. BTC even broke the $32,500 support level and the 100 hourly simple moving average. However, the bulls were able to protect the $32,000 support zone.
A low is formed near $32,178 and the price is currently rising. It broke the $32,500 and $33,000 resistance levels. There was also a break above the 23.6% Fib retracement level of the downward move from the $38,612 high to $32,178 low.
Bitcoin price is now trading above the $33,500 level and the 100 hourly simple moving average. It is testing the key $34,000 resistance zone. There is also a major declining channel forming with resistance near $34,000 on the hourly chart of the BTC/USD pair.
The channel resistance is close to the 50% Fib retracement level of the downward move from the $38,612 high to $32,178 low. A successful break above the $34,000 resistance level could open the doors for a larger increase in the coming sessions. The next major resistance sits at $35,400, followed by $36,200.
Fresh Dip in BTC?
If bitcoin fails to clear the $34,000 resistance zone, there is a risk of a fresh decline. An initial support is near the $33,000 level. The next major support is near the $32,200 level.
Any more losses could lead the price towards the channel lower trend line at $31,500. If the price fails to stay inside the channel, it could easily dive towards the $30,000 support zone.
Technical indicators:
Hourly MACD – The MACD is slowly gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $33,000, followed by $32,200.
Major Resistance Levels – $34,000, $35,000 and $35,400.
Bitcoin and crypto Twitter has been ablaze over the past few weeks as Mark Cuban, a billionaire investor, has continued to dabble in the space. Cuban is best known for his role as a Shark on “Shark Tank” and as the owner of the Dallas Mavericks. The American investor recently started to increase his exposure to the Bitcoin space, at least in terms of his public persona, when he began to tweet about cryptocurrencies.
In a recent blog post, Cuban affirmed that he sees Bitcoin as a digital store of value.
In a blog post dated January 31st, Cuban discussed Bitcoin, Ethereum, and other aspects of the digital economy.
In this blog published to Blog Maverick, his personal website, he explained that blockchain driven assets have “now legitimately become stores of value”:
“This digital store of value isn’t limited to Digital Goods of course. It has long included cryptocurrencies (CryptoAssets is what they should be called, they are rarely used as currency), like Bitcoin , Ethereum and so many others, along with the tokens being created to support De-Fi and other value creating derivatives of CryptoAssets. They all are Stores of Value with market cap leader Bitcoin having a decade plus long history of transactions and wealth generation.”
The investor has long discussed Bitcoin, previously arguing that investors should have some percentage of their portfolio in the leading cryptocurrency.
It appears @mcuban is finally all-in on Bitcoin, crypto, and digital goods.
Just a matter of time until every innovator sees the light.
Cuban is now arguing that there may be some intrinsic value to these digital assets:
“To so many the idea that a CryptoAsset could be a store of value is crazy. To them, there is no there, there. There is no intrinsic value. To them it is a digital representation of nothing, that crazy people are paying good money for. That is not the case.”
Ray Dalio, another billionaire investor, also recently released a blog post on his thoughts on Bitcoin.
The world-famous asset manager commented last week that he thinks “Bitcoin is one hell of an invention.”
He added that the cryptocurrency is becoming a gold-like asset:
“Those who have built it and supported the dream of making this new kind of money a reality have done a fabulous job of sustaining that dream and moving Bitcoin (by which I mean it and its analogous competitors) into being an alternative gold-like asset.”
Cuban and Dalio join the growing list of prominent investors that see Bitcoin as a viable investment opportunity.
Bitcoin has witnessed some massive selling pressure throughout the past day that has erased all the gains that came about as a result of the “Elon Musk” pump a few days ago
The selling pressure seen has come from a combination of spot and derivatives, with investors generally going risk-off
It remains unclear what the cause of this could be, but it may be a combination of technical weakness as well as turbulence within the traditional market
One analyst is now noting that there’s a strong possibility further downside is imminent for the entire market
He is pointing to the cryptocurrency’s January low as the next level he is closely watching, with a bounce here potentially allowing for massive upside
Bitcoin has seen some wild price action over the past few days. It all started with Elon Musk’s endorsement of BTC, which catalyzed a massive pump towards $40,000 that has been entirely erased over the past few days.
This “FOMO” induced pump seemed to provide exit liquidity for holders looking to get out, as it was aggressively sold into.
One trader believes that this is a sign of imminent downside, as he is now pointing to the cryptocurrency’s January low as a near-term target.
Bitcoin Plunges as Bears Erase the Entire “Elon Candle”
Earlier this week, Elon Musk changed his Twitter bio to “#Bitcoin” and commented that the change was inevitable in hindsight.
This caused Bitcoin to soar nearly $7,000 and caused nearly half a billion in short liquidations.
However, the selling pressure at these highs was significant and caused a massive rejection that has since resulted in it erasing all of the gains that came about due to Musk’s endorsement.
BTC Could Soon target Move to January Lows
One trader believes that a move to Bitcoin’s January lows could be in the cards, especially considering the multiple rejections it has posted at a key trendline.
“Bears have a clear invalidation from here imo. Easy to flip long if wrong,” he gravely noted while pointing to the below chart.
Ethereum remains in a range above the $1,300 support against the US Dollar. ETH price is likely to gain momentum above $1,400 and $1,450 resistance levels in the near term.
ETH price traded as high as $1,438 and before it corrected lower against the US Dollar.
The price is consolidating above the $1,320 support level and the 100 simple moving average (4-hours).
There is a key bullish trend line forming with support near $1,295 on the 4-hours chart of ETH/USD (data feed via Kraken).
The pair is likely to accelerate higher after it breaches the $1,400 and $1,430 resistance levels.
Ethereum’s Ether Signaling Fresh Rally
This past week, bitcoin and ethereum saw a steady increase above $1,300 and $35,000 respectively against the US Dollar. BTC trimmed all its gains, whereas ETH remained well bid above the $1,300 support zone.
The recent high was formed near $1,438 before the price corrected lower. There was a break below the $1,380 support level. Ether price even traded below the 23.6% Fib retracement level of the upward move from the $1,207 swing low to $1,438 high.
However, the price is consolidating above the $1,320 support level and the 100 simple moving average (4-hours). There is also a key bullish trend line forming with support near $1,295 on the 4-hours chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the $1,207 swing low to $1,438 high.
On the upside, the price is facing hurdles near the $1,400 and $1,430 levels. A successful break above the $1,400 and $1,430 resistance levels could open the doors for a sharp increase in the coming sessions. In the stated case, the price could test the $1,500 resistance zone.
Dips Supported in Ether (ETH)?
If Ethereum fails to clear the $1,400 and $1,430 resistance levels, it could start a downside correction. The first key support on the downside is near the $1,300 level and the trend line.
A downside break below the trend line support may possibly call for a test of the $1,260 support level and the 100 simple moving average (4-hours). Any more losses could lead ether price towards the $1,200 support zone.
Technical Indicators
4 hours MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone.
4 hours RSI – The RSI for ETH/USD is just above the 50 level.
Bitcoin price rallied towards the $38,000 resistance, but it failed to hold gains against the US Dollar. BTC started a fresh decline and it is now struggling to stay above $33,500.
Bitcoin is showing a few bearish signs below the $35,000 and $35,500 resistance levels.
The price is now trading near the $34,000 pivot level and the 100 simple moving average (4-hours).
There is a key bullish trend line forming with support near $33,900 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
The pair either decline heavily towards $31,000 or it might clear $35,000 for a fresh increase.
Bitcoin Price Remains At Risk
This past week, bitcoin price saw a sharp upward move above the $35,000 resistance against the US Dollar. The BTC/USD pair surged over 15% and it even climbed above the $36,500 level.
The price spiked above the $38,000 resistance and settled above the 100 simple moving average (4-hours). A high was formed near $38,603 before the price started a fresh decline. There was a sharp decline below the $36,500 and $36,000 levels.
Bitcoin price even traded below the 50% Fib retracement level of the upward move from the $29,282 swing low to $38,603 high. The price even tested the $33,000 support level.
It found support near the 61.8% Fib retracement level of the upward move from the $29,282 swing low to $38,603 high. The price is now trading near the $34,000 pivot level and the 100 simple moving average (4-hours).
There is also a key bullish trend line forming with support near $33,900 on the 4-hours chart of the BTC/USD pair. If there is a clear break below the trend line, the price could continue to move down below $33,500. The next major support is at $33,000. Any more losses could lead the price towards the $31,000 support zone.
Fresh Increase in BTC?
If bitcoin stays above the trend line support, there are chances of a fresh increase above $34,500. An initial resistance on the upside is near the $35,000 level.
A proper break and close above the $35,000 resistance will most likely set the pace for a sustained upward move in the coming sessions. The next major resistance on the upside is near the $36,400 level.
Technical indicators
4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is just above the 50 level.
Ethereum has been largely tracking Bitcoin’s price action as of late, but its swings have been far more tempered as it hovers within the $1,300 region
The cryptocurrency has been showing some signs of strength, with bulls ardently absorbing all the intense sell pressure it has faced in recent times
This indicates that there’s a significant number of investors keen on gaining exposure to ETH, providing it with a strong bid during all dips
Where it trends will somewhat depend on Bitcoin undoubtedly, but it is currently pushing up against a key resistance level that may soon break
One analyst is comparing the present price action to that seen in November, which means that a massive upsurge could be imminent
Ethereum has been consolidating throughout the past few days and weeks, with buyers and sellers both reaching an impasse as it largely trades within the mid-$1,300 region.
At the moment, $1,380 is the key resistance level to watch, as sellers have been ardently trying to guard against a break above this level.
Once broken, however, ETH could see a massive upswing that leads it to new all-time highs, which is a possibility that one analyst is closely watching.
Ethereum Consolidates as Bulls Build Strength
At the time of writing, Ethereum is trading down marginally from its recent highs of just over $1,400 set yesterday afternoon.
The crypto is now well-within a consolidation phase that has done little to provide insights into where it may trend in the mid-term.
Bitcoin and its continued reaction to the resistance that sits in the mid-$30,000 region should provide some insights into where major altcoins like Ethereum will trend next.
ETH Shows Signs of Strength Despite Consolidation
One trader explained in a recent tweet that Ethereum could be gearing up for a major push higher similar to that seen by the crypto in November before it exploded into the $1,000+ region.
He also notes that the buying activity on each dip indicates that the bid for ETH is quite strong.
“Noteworthy that $ETH has spent almost entire month hovering near 1300s. Quite similar to its behaviour in November when price exploded up right after at the beginning of month and never looked back. BID is STRONG.”
Bitcoin price has held on tightly to support at $30,000, and according to Raoul Pal’s Global Macro Investor Report, the leading cryptocurrency by market cap could 10x from there by October 2021.
GMI’s model uses Metcalfe Value to make the prediction, and currently suggests the cryptocurrency is severally undervalued. Could that lofty target be only nine months away? Here’s what past market cycles say about the estimate.
Raoul Pal’s GMI Report Calls For $300K BTC Before The End of 2021
Raoul Pal has decades of global macro investing experience. He’s regularly been outspoke about Bitcoin and its long term value proposition. The GMI founder was particularly vocal about the cryptocurrency prior to the breakout in Q4 2020.
Valuations have only increased from there, and significantly so. However, according to a recent model from a GMI Report focusing on Metcalfe Value, things are only warming up.
The chart includes the GMI Model Metcalfe Value and its proximity to Bitcoin price. The “value” has acted as a sort of middle-point for the cryptocurrency’s valuation.
A chart created by Global Macro Investor shows the path to $300K per BTC | Source: GMI Report
Currently, Bitcoin is tracing significantly below its Metcalfe Value, according to the report. Past instances of Bitcoin bull markets have always risen beyond the Metcalfe Value, but simply catching up in this case would take the cryptocurrency to a $300,000 per BTC by October 2021.
Trajectory Matches Target, But Metcalfe’s Value Could Suggest More Is Possible
The project does indeed line up with predictions from other analysts, firms, and more. Even taking the exact trajectory of the last cycle, and super imposing it over the current cycle would indicate a peak of around $325,000 per BTC.
However, if the Metcalfe Value truly is accurate, and the cryptocurrency is this accurate, $300,000 as the ceiling is an extremely cautious estimate. Again, past instances of the bull market peaks have always risen beyond the Metcalfe Value according to the GMI Report chart.
Prices around where previous peaks reached beyond the value, would put the price of each Bitcoin somewhere near $1 million apiece.
If that’s the case, buying at any point over the next nine months could be the greatest opportunity of our lifetimes. However, other attempts to assign a fair market value to the crypto asset using Metcalfe’s Law, have much lower estimates.
Featured image from Deposit Photos, Charts from TradingView.com
Over the last few days, whales and miners have been depositing the largest amount of Bitcoin this year, yet despite all the selling, price is soaring. The reason? Elon Musk has changed his Twitter bio to include the cryptocurrency’s hashtag and it has ignited a flood of FOMO from retail Robinhood traders seeking free markets.
Miners, Whales, And More Can’t Stop Bitcoin Rally
Bitcoin kicked off 2021 as bullish as can be, rising from under $30,000 to above $42,000 in a matter of days. After that high, things turned bearish for the short-term, driven by profit-taking from early investors in the asset, miners, and even some whales.
Institutional investors have been buying up what the market could offer, but price action began to sink as sentiment turned.
Whales are selling BTC at the highest level in eight months | Source: CryptoQuant
Whether the turning sentiment is behind the trend, or if it is simply more profit booking, whales have moved more BTC to exchanges recently than they have the last eight months. At the same time, miner deposits have reached the highest point of the year.
Miners have also moved the most BTC all year | Source: CryptoQuant
But despite all these bearish signals, the price of cryptocurrencies keep on rising today, and are up 20% or more in some cases over the last week.
Elon Musk Boosts Retail FOMO, Robinhood Floodgates Open
Miners and early crypto whales have met their match in an army of retail traders exiting Robinhood searching for greener pastures, combined with a “tidal wave” of institutional capital, and now, those who follow or support Tesla and Elon Musk.
Elon Musk added the #Bitcoin hashtag and corresponding emoji to his bio | Source: Twitter
The recent Robinhood kerfuffle has had the likes of Musk outraged, and speaking out in support of free markets. Assets like Bitcoin cannot be shut down like stocks can. An exchange can of course still halt trading if the situation calls for it, but no one can outright stop the Bitcoin market from existing.
Even if exchanges were taken down, the peer-to-peer asset could still transact and could find a way. Tech leaders like Musk have come to appreciate cryptocurrency technology for these reason, along with the fact they remain out of reach from state actors.
Bitcoin price skyrocketed after investors saw the addition to Musk's bio | Source: BTCUSD on TradingView.com
Along with Musk’s nod of approval over Bitcoin, the Robinhood situation itself has prompted an exodus from the platform and major boost to Coinbase – which offers the ability to move assets off of the platform, unlike Robinhood.
Featured image from Deposit Photos, Charts from TradingView.com
Hacken, a prominent cybersecurity, blockchain and cryptocurrency community is organizing the First Grey Hat Hackers Idea Competition where hackers and computer enthusiasts can submit their ideas to detect and counter vulnerabilities in crypto and DeFi projects. The hackathon offers Grey Hat hackers an opportunity to implement their ideas with the support of the Hacken community as legitimate White Hat hackers.
Starting Jan 19, 2021, Hacken community started accepting submissions of ideas for the hackathon on its website. As applications gradually started pouring in, someone found an innovative way to submit their application, which involved hacking into the website and posting a message containing information about their idea for the hackathon.
Message (above) left by hackers on the First Grey Hat Hackers Hackathon website
The message left by the hackers on the website said that the site has been hacked, and they thought that by hacking into the website to submit their idea, they stood a better chance of winning the contest. These innovative applicants plan to develop a project that uses Artificial Intelligence and Machine Learning to secure DeFi projects built on Ethereum and Polkadot. As a part of this project, they intend to create a global on-chain database of wallets holding illicit funds so that the DeFi solutions can combat money laundering.
Following the hack, Hacken’s team worked along with its community to restore access to the website. Meanwhile, Hacken’s CEO Dyma Budorin acknowledged the unique application submitted by the hackers saying:
“We have helped our community restore the work of the site. That has not been a typical hacking. The hackers have decided to present themselves and apply for participation in the hackathon in such a way. We have contacted them to clarify the project’s details. Although we do not support hackings, the project in question devotes attention. We suggest that the project has the potential to have an impact on the further development of the DeFi market.”
Hacken also confirmed that all applications received till the incident are intact, and they will be reviewed as per the standard procedure. Applications for the First Grey Hat Hackers Ideas Competition will be open till Jan 31, followed by the announcement of shortlisted ideas on Feb 3, 2021.
The winning team will receive a reward of 600,000 HAI, while the second and third position will get 300,000 HAI and 100,000 HAI, respectively. A special prize of 5000 USDT is also in the offering. Participate in the Grey Hat Hackers Idea Competition at – https://ihktn.com/
Ethereum saw a massive breakout rally today that came about alongside Bitcoin
BTC’s surge from $32,000 to highs of $38,500 came about as the result of Elon Musk changing his Twitter bio to “#Bitcoin” and calling the change “inevitable” in hindsight
This dragged all the major altcoins higher, but the focus remains on Bitcoin for the time being
This has caused ETH to see some slight underperformance and may result in the altcoins market stagnating while Bitcoin rallies
One analyst is now looking towards potentially imminent price discovery for Ethereum
He notes that assuming it tracks Bitcoin’s price action, ETH could see a rally to $3,000 in the coming few weeks
Ethereum has seen some bullish price action throughout the past several hours, with bulls sending its price rocketing up to highs of $1,440 in tandem with Bitcoin’s surge to $38,500.
The market’s immense strength that came about due to this movement is showing few signs of wavering, despite a few pullbacks.
One analyst is now noting that ETH could be on the cusp of seeing an explosive movement that sends it to fresh all-time highs of around $3,000 before it faces any massive resistance.
Ethereum Soars Alongside Bitcoin as Market Rebounds
At the time of writing, Ethereum is trading up 8% at its current price of $1,390, which is just below its recent highs of $1,475 set at the peak of last week’s move higher.
Bulls are trying to take full control of the cryptocurrency now, despite a few failed attempts by bears to fade the pump.
Pullbacks following a massive move higher are to be expected, but there’s a strong possibility that it gets quickly erased by bulls eagerly awaiting an entry following the overnight developments.
Analyst: ETH Could See an Explosive Move to $3,000 Next
One analyst explained in a recent tweet that Ethereum could be on the cusp of seeing an explosive rally.
He notes that once it breaks above its all-time highs, the cryptocurrency will likely see price discovery that allows it to rally towards $3,000 if it copies the same pattern Bitcoin saw.
“ETH: Looking at potential scenarios for price discovery… If we keep tracking BTC’s move and put in a leg of +111%, post the real deal ATH breakout, then we interestingly will be right at $3,000. Big psychological level, same price that gave BTC a big pullback in 2017.”
Oracles are necessary to bring off-chain data and information into the blockchain
Money’s Oracle blockchain technology is building the mechanisms used in the legacy financial system for the cryptocurrency space
Money is also working on the Decentralized Finance equivalent of a credit score, which delivers a user’s DeFi history to lending protocols
Leveraging trust in legacy finance.
In the legacy financial system, there are safeguards and measures which mitigate risk accordingly to prevent financial institutions from issuing loans to overleveraged borrowers. A borrower’s credit score, along with their benchmark rating, determines the likelihood of their ability to repay a loan. This is true for personal loans, mortgages, lines of credit and all other products offered by the legacy banking infrastructure.
Currently, the advent of DeFi in the cryptocurrency space has sparked an entirely new way to interact within a financial system that is intrinsically separated from the legacy system, which for so many years has kept its thumb firmly pressed on the public which engages with it. This has led to what is being referred to as the DeFi revolution. At the time of writing this article the total value locked (TVL) as indicated by DeFi Pulse (defipulse.com/) in DeFi measured in USD is sitting at just over $22 Billion dollars. That would mark a 3190% growth year-over-year. The majority of that growth over 100%, moving the bar from $11B to over $22B, occurred in the last 90 days. There hasn’t been a sector that has experienced anything remotely close to this amount of growth, ever.
Of course, it’s normal that when anything grows at such a rapid rate — be it an industry, sector, organization or otherwise — would experience oversights or shortcomings to the infrastructural scaffolding that holds it up. In the case of DeFi, we clearly see the desire to engage with protocols. However, the Collateralized Debt Position ratio is still quite uneven and arbitrary. A user with an exceptional history of repaying loans on time, avoiding defaults and engaging in trustworthy and prudent behaviour is grouped in the same category of DeFi user that partakes in the absolute opposite behaviour.
Enter Bird.Money, its Oracle and the Trust Network.
There are Oracles. Then there are Bird Oracles.
For those just entering the fascinating world of cryptocurrency and Decentralized Finance, an Oracle delivers data from outside of the blockchain to within the blockchain. This may seem like a rudimentary explanation, however it is more nuanced than what may appear from the onset. Reason being that blockchains themselves operate as silos, in that it is actually difficult to factor in data from outside of the blockchain without the presence of a delivery source that can communicate with the blockchain itself. In this case, Oracles provide that necessary function of delivering information and data from outside of the blockchain, such as prices, scores, analytics and other information, to within blockchain infrastructures in a tamper-proof way.
1.Bird.Money Oracle 2.Off-Chain Analytics
Bird.Money’s blockchain Oracle is developing the tools and mechanisms required to advance DeFi to the next stage in its evolutionary progression as the newest, trustless financial system. By creating an Off-Chain Oracle Data analytics platform for the Ethereum blockchain, the Bird Oracle connects external services and investors to the decentralised loans and finance market with low risk and guarantees. Bird analytics are used to aggregate and validate off-chain metrics in order to bring forth consensual data from multiple data points. Borrowers are then able to leverage “good” behaviour while traversing their interactions with DeFi protocols — loans paid back on time, not being overleveraged, not engaging in scams or “rug pulls” where liquidity is quickly removed from decentralized exchanges, causing a crash in token price and overall being fiscally prudent with their digital assets. That good behaviour could then be used to borrow more assets for less upfront collateral, effectively reducing your collateralized debt position (CDP).
Bird.Money is also establishing the Trust Network to provide a Trust Score to lending protocols. The DeFi equivalent of the legacy banking system’s credit score, which delivers a user’s DeFi history associated with their ETH address to the lender or lending protocol. This would provide a much-needed risk mitigator in order to ensure that borrowers with a less than favourable Trust Score would be required to put up more collateral thereby increasing their CDP to ensure against defaulting. It is a win-win situation for both sides. Borrowers who exhibit good behaviour throughout their DeFi history are rewarded by having to put up less collateral for interactions with a lending protocol. Lending protocols receive a form of assurance for that user’s good behaviour, which will in turn attract more well-behaved DeFi users to the protocol while enabling them to take the necessary safeguards against those who display the opposite.
Blurring the lines
It cannot be overstated how important a role the Bird.Money Oracle and Trust Network will play in the bridge between the legacy and decentralized financial systems. This is particularly true when we consider the recent amendments being made to US government regulations, now allowing for legacy institutions to partake in the use of public blockchains. The lines between the two spaces, both centralized and decentralized are continually being blurred. Bird.Money is well positioned to lead the way into this next frontier of a fairer, more inclusive financial infrastructure.
You can see more on their recently updated 2021 roadmap which uniquely positions Bird.Money’s Oracle platform as well their Trust Network with a tangible and necessary use-case for the DeFi sector.
Bitcoin bulls should brace for a wild upside run towards $41,000.
According to Scott Melker, crypto trader and host of WOAS Podcast, the cryptocurrency’s sharp rebound from $32,000 to above $38,000 confirmed two textbook bullish reversal indicators: Double Bottom and Falling Wedge.
Bitcoin Double Bottom
Starting with the Double Bottom, Mr. Melker highlighted two consecutive troughs in the Bitcoin four-hour (4H) chart, with a moderate peak in between. Such a structure points to repeated downside rejection by bears. Meanwhile, its vitality goes up if an asset bounces back from the second trough to close above the previous peak level.
Bitcoin has closed above the Double Bottom target—the pink line. Source: BTCUSD on TradingView.com
So it appears, Bitcoin did the same during its rally on Friday, leading Mr. Melker to see an extending upside rally to complete the Double Bottom scenario. Bitcoin almost achieved the bullish reversal target by hitting the pink line near $34,880, as shown in the chart above, awaiting confirmation with a four-hourly close.
“The pink line [stands] broken, double bottom to be confirmed with a close above,” Mr. Melker noted, nevertheless. “Target around 41K shown. Trading range EQ also broke, should target range highs.”\\
[Note: The Double Bottom target stands confirmed as of this press time.]
Falling Wedge
The other bullish reversal indicator, Falling Wedge, also hinted at a rally towards $41,000 or above after Bitcoin’s breakout move on Friday.
In retrospect, a Falling Wedge in an uptrend is a continuation pattern that occurs as the market contracts temporarily. The structure indicates the resumption of the uptrend. Again, this means that traders can look for potential buying opportunities when the price closes above the Pattern’s upper trendline.
Bitcoin did the same today. The cryptocurrency also closed above $36,000, a level with a recent history of capping upside gains. It pointed to a renewed buying enthusiasm above crucial price floors, hinting that traders may want to aim the Rising Wedge breakout targets to the upside.
Bitcoin Falling Wedge pattern pointing to a rally towards $50,000. Source: BTCUSD on TradingView.com
Bitcoin Falling Wedge pattern pointing to a rally towards $50,000. Source: BTCUSD on TradingView.com
Typically, an asset rises by as much as the maximum distance between a Wedge’s upper and lower trendlines. In Bitcoin’s case, the gap is more than $11,000-wide. That puts Bitcoin en route towards $50,000.
Elon Musk has changed its Twitter bio to one word: Bitcoin.
The billionaire entrepreneur, whose opinion of the benchmark cryptocurrency has juggled between skepticism and praise, appeared to have taken a definite stance about it. In a tweet that followed shortly after the bio update, Mr. Musk said that “in retrospect, it was inevitable.”
That was enough for Bitcoin bulls to take charge in an otherwise short-term bearish market. Mr. Musk’s tweet propelled them to raise their bids for the cryptocurrency. As a result, in just two hours, the cost to purchase one Bitcoin climbed from nearly $32,000 to above $38,000.
Mr. Musk’s cryptic tweet and bio prompted theories about the possibility that his firms Tesla and SpaceX would add Bitcoin to their balance sheets. Meanwhile, many took it as an open-air advertisement for the world’s largest cryptocurrency to Mr. Musk’s 43.8M followers, many of whom include notable crypto skeptics such as Nouriel Roubini and Peter Schiff.
“Fact is we don’t know if Elon Muskadding Bitcoin to his Bio means something,” alerted Alex Krúger, an independent market analyst, nevertheless.“We must wait for that. However, everyone is now thinking about Tesla addingBitcointo its balance sheet. Which would be massive. The possibility alone is enough to send the market roaring.”
Bitcoin tends to react positively to high-profile mentions. Recently, JPMorgan’s $100,000 Bitcoin price prediction last year prompted the cryptocurrency’s price above $35,000 for the first time in history. Similarly, PayPal’s decision to add Bitcoin services helped it close above its previous record high of $20,000, which remained unachievable since December 2017.
Bitcoin breaks above the 20-day moving average to signal an extended bullish bias. Source: BTCUSD on TradingView.com
Bitcoin breaks above the 20-day moving average to signal an extended bullish bias. Source: BTCUSD on TradingView.com
But Mr. Musk’s tweet also came at a time when his so-called favorite cryptocurrency, Dogecoin, was returning to the bearish side after climbing 1,100 percent in just two days. It is difficult to assume whether Mr. Musk is trolling Bitcoin or promoting it—partially because Dogecoin is a joke cryptocurrency.
In either way, the flagship cryptocurrency was able to break out of its two-week downside bias with Friday’s rally. The wild move upside also helped it break above its 20-day moving average, pointing to an extended bullish move in the sessions ahead.
Ripple is up over 10% and it spiked above $0.3000 against the US Dollar. XRP price is showing positive signs and it is likely to continue higher towards $0.3100 and $0.3200.
Ripple is showing a few bullish signs above $0.2700 and $0.2800 against the US dollar.
The price is trading nicely above the 100 simple moving average (4-hours), but it is facing hurdles near $0.3000.
There was a break above a major bearish trend line with resistance near $0.2700 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
The pair could continue to rise towards $0.3200 if there is a close above the $0.3000 level.
Ripple’s XRP Price Surges 10%
After forming a base above the $0.2500 level, ripple’s XRP price started a fresh increase. The price settled above the $0.2650 level to move into a short-term bullish zone.
Recently there was a decent upward move in bitcoin and Ethereum, opening the doors for a surge in XRP above $0.2720. There was also a break above a major bearish trend line with resistance near $0.2700 on the 4-hours chart of the XRP/USD pair.
The pair rallied above $0.2800 and the 100 simple moving average (4-hours). The price even spiked above the 61.8% Fib retracement level of the downward move from the $0.3305 swing high to $0.2396 low.
However, the price failed to surpass the main $0.3100 resistance level. It also failed near the 76.4% Fib retracement level of the downward move from the $0.3305 swing high to $0.2396 low. The price is currently dipping, but there are high chances of a fresh increase above $0.3000.
A close above the $0.3000 level may possibly increase the chances of a push above the $0.3100 resistance. The next major resistance is near the $0.3200 level.
Fresh Dip in XRP?
If ripple fails to climb back above $0.3000, it could correct lower. An initial support is near the $0.2800 level and the 100 SMA (H4).
A downside break below the $0.2800 support zone could open the doors for a push towards the $0.2700 support. The next major support is near the $0.2620 level and the broken trend line.
Technical Indicators
4-Hours MACD – The MACD for XRP/USD is gaining pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is now well above the 50 level.
Major Support Levels – $0.2800, $0.2700 and $0.2620.
Major Resistance Levels – $0.3000, $0.3100 and $0.3200.
Ethereum gained pace above the $1,300 level against the US Dollar, but it struggled near $1,375. ETH price is approaching a major support and it is likely to bounce back above $1,350.
Ethereum faced a strong selling interest near $1,375 and corrected lower.
The price is approaching the $1,300 support zone and the 100 hourly simple moving average.
There is a key bullish trend line forming with support near $1,305 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could test $1,292 before it starts a fresh increase towards $1,350 and $1,375 in the near term.
Ethereum Price is Testing Key Support
After trading as low as $1,207, Ethereum started a fresh increase. ETH price traded above the $1,250 and 1,265 resistance levels to move into a positive zone.
There was also a clear break above the key $1,300 resistance and the 100 hourly simple moving average. The price even cleared a major bearish trend line with resistance near $1,300 on the hourly chart. As a result, there was a push above the $1,350 level, but ether again failed to clear the $1,375 resistance.
A high is formed near $1,376 and the price is currently correcting lower. It broke the 23.6% Fib retracement level of the recent wave from the $1,207 swing low to $1,376 high.
The price is now approaching the $1,300 support zone and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $1,305 on the hourly chart of ETH/USD. The next major support is near the $1,292 level.
The 50% Fib retracement level of the recent wave from the $1,207 swing low to $1,376 high is at $1,292 to provide support. Any more losses could clear the path for a push towards the $1,250 support zone.
Fresh Increase in ETH?
If Ethereum stays above the $1,292 support zone, it could start a fresh increase. An initial resistance on the upside is near the $1,325 level. The first major resistance is near the $1,350 level.
The main resistance is still near the $1,375 level, above which ether price could test $1,400. Any more gains could open the doors for a run towards the $1,500 level in the near term.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is slowly gaining pace in the bearish zone.
Hourly RSI – The RSI for ETH/USD is currently just below the 50 level.
Bitcoin price started a fresh increase above the $32,500 and $33,500 resistance levels against the US Dollar. BTC is showing positive signs, but $34,500 and $35,000 still presents a major resistance.
Bitcoin is up over 10% and it broke the $34,000 resistance level.
The price is currently trading well above the $33,200 pivot level and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $33,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could correct lower, but it is likely to find bids near $33,200 or $32,800.
Bitcoin Price Gains Over 10%
After forming a support base above $32,000, bitcoin price started a strong increase. BTC broke the $32,500 and $33,200 resistance levels to move into a short-term positive zone.
During the increase, there was break above a key bearish trend line with resistance near $31,550 on the hourly chart of the BTC/USD pair. The increase was such that the pair even cleared the $34,000 resistance and settled above the 100 hourly simple moving average.
A high was formed near $34,424 and the price is currently consolidating gains. An initial support is near the $33,200 level. It is close to the 23.6% Fib retracement level of the upward move from the $29,282 swing low to $34,424 high.
There is also a major bullish trend line forming with support near $33,200 on the same chart. On the upside, the price is facing a lot of strong hurdles near $34,500 and $35,000.
To move into a positive zone for a larger rally, bitcoin must break the $34,500 resistance and then settle above the key $35,000 barrier in the near term.
Fresh Dip in BTC?
If bitcoin fails to clear the $34,500 resistance or $35,000, it could start a fresh decline. An initial support is near the trend line at $33,200.
The main support is now forming near the $32,000 zone. It is close to the 100 hourly simple moving average, and the 50% Fib retracement level of the upward move from the $29,282 swing low to $34,424 high. Any more losses may possibly call for a test of $31,200.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 60 level.
Major Support Levels – $33,200, followed by $32,000.
Major Resistance Levels – $34,500, $34,800 and $35,000.
Today’s biggest news isn’t about Bitcoin, but because the cryptocurrency and others trade on the platform at the center of the scandal, it is a wake up call for investors.
Robinhood today halted trading of GameStop shares and other stocks, setting the internet ablaze with anger. At the same time, it should act as a reminder for those who use the platform for crypto market exposure of the phrase: “Not your keys, not your Bitcoin.”
Robinhood Halts Trading On Select Stocks, Is Their Crypto Service Next?
Crypto assets like it are secured behind a layer of cryptography. Each wallet consists of a public key acting as the address users utilize to send and receive assets, while a private key is effectively the password to the account.
The decentralized design allows for self-custody of assets. But when users buy cryptocurrencies on an exchange and hold them there, technically the exchange owns the private key to the wallet holding the assets, and thus the phrase was coined.
When another entity controls the private key to crypto assets, they are at risk of potential hacks or seizure. The platform where the assets are stored also have a layer of control over coins the user themselves actually own.
The only way to ensure complete ownership and safety of crypto assets, is to self custody, preferably in an offline cold storage wallet. This isn’t a fool-proof solution and many crypto investors learned that the hard way, but that’s another story.
This story instead focuses on Robinhood, which offers exposure to cryptocurrencies, yet doesn’t allow them to be moved off the platform in a wallet that the user themselves own. Coinbase, for example, lets users move crypto freely to any wallet they want.
No such solution exists whatsoever for Robinhood users, who technically don’t own any actually cryptocurrency. The Bitcoin they think they have, is just an IOU for BTC.
GameStop shares collapsed when Robinhood stopped trading, leaving only the option to sell | Source: NYSE-GME on TradingView.com
Not Your Keys, Not Your Bitcoin: Move Money To Buy Actual Assets
As retail traders are now experiencing, Robinhood isn’t the free market they thought it was, and have had the ability to buy shares of GameStop and other stocks restricted as part of a much larger controversy involving Reddit, hedge fund Melvin Capital, and many other players.
At any given moment, Robinhood could restrict buying or selling Bitcoin and other cryptocurrencies offered on the trading app. The company has already demonstrated that they’re willing to bend when the powers that be demand it, and it could leave potentially thousands or even millions of investors without access to cryptocurrencies.
Admittedly, that’s a worst-case scenario that would be difficult to imagine happening, but anything is possible when it comes to the elite desperate to maintain the control they’ve long had and are now losing thanks to technologies like Bitcoin.
Those with crypto on Robinhood might want to consider selling and taking the capital to buy actual digital assets they can custody themselves.
Featured image from Deposit Photos, Charts from TradingView.com
Bitcoin is in consolidation mode after one of its largest quarterly gains on record. All signs suggest that there’s still more upside left in this bull run, but according to a fractal found during the last major market cycle, a sudden sweep of lows is possible before bulls regain control.
Here’s what to expect for price action if this ultimately bullish fractal is a valid roadmap of what’s to come.
Be Ready To Buy The Dip If Fractal Forming Is Accurate
Bitcoin price is still trading $10,000 below its highest peak in 2021, yet since last night’s daily close bulls have suddenly begun to make a comeback.
But before new highs are set, a sudden and sharp sweep of lows could clear out long positions taken over the last several weeks. The warning stems from a fractal found during Bitcoin’s last major bull run, in 2017.
The shakeout move arrived after a new all-time high was set and long in the rear view, just like the current setup. It also proceeded the historic rally from under $2,000 to nearly $20,000 per coin.
A similar response after the lows are swept, would take the price per BTC to as high as $200,000 – meaning that this is potentially the most lucrative “dip” to buy before the next peak and bear market.
Comparing The Bitcoin Fractal Before “The Point Of No Return”
Comparing the fractal with current price action side by side, the similarities are easily visible. A large, sharper peak starts the downward price action, and subsequent peaks form each decreasing in size. After the fourth attempt, bears pull out the heavy artillery and push price action down through support.
The move would clear the market of over-eager traders that got into position too soon, taking advantage of the exuberance in the market.
And just as sentiment turns to extreme fear, leaving investors wondering how deep the violent drop will go, a V-shaped recovery takes Bitcoin to only one more major correction before the “top” of the cycle is in and bear market starts.
The fractal seems to appear at the “point of no return” for Bitcoin, right before the final push to the peak. The most direct-matching fractal is found during the 2017 rally, but even the 2013 mid-point matches the pattern, albeit a far more volatile structure.
Minutes ago it was announced that Coinbase is looking to become a publicly-traded company. The firm wrote in a blog post dated January 28th:
“Coinbase Global, Inc. today announced its intent to become a publicly-traded company pursuant to a proposed direct listing of its Class A common stock. Such proposed listing is expected to be pursuant to a registration statement on Form S-1 with the Securities and Exchange Commission (the “SEC”).”
Of note, this is not an initial public offering. Instead, Coinbase would allow existing shareholders to trade their positions on the primary market.
This comes shortly after the company announced that it had confidentially submitted a draft registration statement on Form S-1 with the SEC.
Coinbase will be the first major cryptocurrency company to trade on a major U.S. exchange if it does manage to move forward with this direct listing process.
Coinbase’s decision to go public comes as the crypto market has begun to see an influx of institutional and retail interest as prices move higher.
Disclaimer: This author is an analyst at ParaFi Capital. ParaFi Capital may hold positions in assets mentioned in this article. The views displayed in this article are opinions of the author—and the author only.
Ethereum has seen some immense turbulence throughout the past few days and weeks, with buyers and sellers both vying to gain control of its price action
The cryptocurrency has been unable to gain any clear trend, with buyers keeping it stable between $1,200 and $1,400, while sellers continue guarding its all-time highs
It has now tested, and broken above, its all-time highs from late-2017 on three occasions, but each one has been met with massive selling pressure
This could indicate that bulls are bound to see further near-term downside unless the entire market begins ascending once again
One trader is noting that, from a technical perspective, ETH appears to be far stronger than BTC, which could mean that it is positioned to breakout
Ethereum has seen mixed price action as of late, with its weakness largely coming about due to Bitcoin and its intense downside incurred throughout the past few weeks.
Fortunately for bulls, BTC has been able to remain above $30,000 despite all of its weakness, which may be a good sign for where it trends next.
While sharing his thoughts on where the cryptocurrency might trend next, one analyst noted that Ethereum could be on the cusp of seeing price discovery, with its strength against Bitcoin being striking.
Ethereum Rallies as Broader Crypto Market Rebounds
Yesterday was a weak day for BTC and the rest of the crypto market, with bears causing an intense selloff led by Bitcoin’s multiple breaks below $30,000.
Today, the market has stabilized, and Ethereum has been able to gain some momentum.
At the time of writing, ETH is trading up just under 8% at its current price of $1,340, which marks only a slight decline from its daily highs of $1,360.
Trader Claims ETH Could See Price Discovery as Strength Mounts
One trader explained in a recent tweet that Ethereum could soon see price discovery due to its immense strength against Bitcoin.
“ETH looks A LOT better than BTC rn. Consolidating in an upward channel. Acceptance above VAH would lead to further price discovery + alt season. D close below POC would take it to VAL.”
Where the market trends next will undoubtedly depend on Bitcoin, but if it can stabilize, it could allow Ethereum and other altcoins to explode higher.
Featured image from Unsplash.
Charts from TradingView.
