Bitcoin Above $9,750 Would Make Case for Larger Rally: Here’s Why

Bitcoin is trading nicely above the $9,400 support zone against the US Dollar. BTC price is likely to continue higher towards $10,000 if it clears $9,600 and $9.750. Bitcoin is trading with a positive bias above the $9,400 support zone. The price could struggle to clear the $9,600 and $9,750 resistance levels in the short term. There was a break above a key contracting triangle with resistance near $9,500 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a strong increase if it clears the $9,600 and $9,750 resistance levels. Bitcoin Price Could Rise Further After a successful close above the $9,300 level, bitcoin price extended its rise above the $9,400 resistance against the US Dollar. BTC price even settled above the $9,500 level and the 100 hourly simple moving average. It traded as high as $9,745 and recently started a downside correction. It traded below the $9,600 and $9,500 levels. However, the previous key resistance near $9,400 and the 100 hourly simple moving average acted as major supports. A low is formed near $9,381 and bitcoin is currently rising. There was a break above the 23.6% Fib retracement level of the key decline from the $9,745 high to $9,381 low. Moreover, there was a break above a key contracting triangle with resistance near $9,500 on the hourly chart of the BTC/USD pair. The pair is now testing the 50% Fib retracement level of the key decline from the $9,745 high to $9,381 low. Bitcoin Price On the upside, the first major resistance is near the $9,600 level. The next major hurdle is near the $9,750 level, above which the bulls are likely to aim a larger rally towards $10,000 or $10,500 in the near term. Dips Supported in BTC If bitcoin fails to continue higher above $9,600 or $9,700, there could be a downside correction. An initial support is near the $9,450 level or the 100 hourly simple moving average. The main support is still near the $9,400 level, below which the price could extend its decline towards the . Technical indicators: Hourly MACD – The MACD is slowly reducing its current bullish slope. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level. Major Support Levels – $9,350 followed by $9,300. Major Resistance Levels – $9,650, $9,800 and $10,000.

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Ethereum Makes 3rd Attempt at New Highs as Options Skew Turns Negative

Ethereum made its third attempt to set new local highs against its Bitcoin trading pair in 2020 yesterday. This movement has shown signs of being fleeting, however, as the crypto has lost some of its momentum. Although the cryptocurrency is flashing some subtle signs of near-term weakness, it is important to note that one data metric points to the cryptocurrency seeing a notable upswing in the days and weeks ahead. This possibility is elucidated by the cryptocurrency’s options skews turning negative, suggesting that traders believe it is primed to see upside volatility. Ethereum Retraces from Recent Highs as the Cryptocurrency Makes Third Attempt at New Highs Ethereum is currently trading up marginally at its current price of $235. This marks a notable rebound from recent lows of $205 that were set earlier this past week when the crypto was caught within a prolonged consolidation phase around $200. ETH’s recent volatility has largely come about independent of that seen by Bitcoin and most other major altcoins. Because the crypto is actually showing signs of leading the market, how it trends in the hours ahead could be one of the determining factors for where the aggregated market goes next. This latest uptrend did allow ETH to gain some serious ground against its Bitcoin trading pair. On Thursday of this last week, the cryptocurrency’s BTC price dived to lows of 0.022. After tapping this level, it incurred a massive amount of buying pressure that catalyzed this recent movement. Over the three days following this dip, ETH rallied to highs of nearly 0.026 BTC. This marked the third attempted breakout the crypto has seen against its Bitcoin trading pair this year – a pattern that Skew spoke about in a recent tweet while showing ETH’s price as a percentage relative to that of Bitcoin. “ETH / BTC: third breakout attempt this year,” Skew noted while pointing to the chart seen below. Image Courtesy of Skew This Pattern Signals That ETH Will Soon See Immense Volatility  Although Ethereum now appears to be entering a consolidation phase in the $230 region, it doesn’t appear that this will last for too much longer. Skew also explained that the cryptocurrency’s options skew – which is an indicator of the volatility spread between options contracts with different expiry dates – has dived as of late. This indicates that the cryptocurrency is bound to see some immense volatility in the near-term. Because the options skew is negative, it is possible that this will lead to an upside movement. “Negative skew indicates risk of volatility now seen to be on the upside,” Skew explained in a recent tweet. Image Courtesy of Skew If Ethereum rallies higher in the near-term, it is possible that this will help guide the entire cryptocurrency market higher. Featured image from Shutterstock.

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Bitcoin Closing the May Candle Above $9,360 is Crucial For Bulls: Here’s Why

In just a few minutes’ time, Bitcoin will close May’s price candle. Analysts say that this close will be crucial for indicating in which direction the cryptocurrency market heads next. A region of importance that many analysts are eyeing is the low-$9,000s. As one analyst explained: “We’ve not had a Monthly close above 9360 in nearly 12 months. Rejections from this level have led to tests of $6k and eventually $3k.” Indeed, when Bitcoin failed to surmount this level in February, prices dove to $3,700 during March’s capitulation. And when BTC was rejected from this level in 2018, there was a brutal bear market to $3,150 in the ten months that followed. $9,360 is also around where the downtrend formed after the $20,000 high currently sits, adding to its technical importance. Right now, things are coming down to the wire in terms of Bitcoin closing above this level. The asset trades at $9,400 as of the time of this article’s writing and the close is just a short while away, TradingView has shown. BTC price chart from a crypto trader “Cold Blooded Shiller” (@ColdBloodShill on Twitter). Featured Image from Shutterstock

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Ethereum DeFi Nears $1 Billion Milestone Again, and That’s Big for the ETH Bull Case

Ethereum’s budding decentralized finance (DeFi) ecosystem took a heavy beating after the March capitulation crash. As I detailed in an analysis for LongHash, what happened was that MakerDAO became unstable due to what some say is an erosion in trust in the protocol. Ethereum investor Parafi Capital wrote in a blog post: “We believe this lack of stability and liquidity is translating into uncertainty around using DAI as a decentralized stablecoin in many DeFi protocols. Anecdotally, we have heard a handful of DeFi teams express frustration over DAI’s lack of liquidity/stability.” Adding to this, a fledgling DeFi protocol with more than $25 million worth of crypto assets was hacked due to a glitch in a smart contract. After this mess, one commentator went as far as to say that “the entire DeFi ecosystem almost died.” But, as we now know, this death didn’t happen. This bodes well for the Ethereum bull case. Related Reading: This Crypto Use Case Has Never Been as “Underrated” Due to Twitter and Trump DeFi Is Still Alive and Kicking In the wake of March’s crypto crash, the value locked in DeFi applications crashed to $500 million from well over a billion. This was to be expected: March’s crash also resulted in an over 50% reduction in the value of top cryptocurrencies. But according to data shared by data site DeFi Pulse, decentralized finance has since recovered alongside the value of cryptocurrencies. There is now $953 million worth of assorted crypto assets locked into DeFi applications, according to the site. This is up nearly 100% from the March lows. Notably, not 100% of the $953 million in DeFi assets is based on Ethereum, but a majority is. Case in point: Maker, Synthetix, and Compound — all based on Ethereum — hold approximately $750 million worth of assets. Data of value locked in decentralized finance (mostly Ethereum) from Twitter user Alex.eth (@AlexanderFisher). Ethereum Stands to Benefit With DeFi gaining strength once again, analysts say that ETH’s bull case is being strengthened. The founder of MakerDAO Rune Christensen said that Ethereum through DeFi will attract “all value” in the cryptocurrency space: “4 million Dai was just minted with WBTC in a single transaction. This really showcases the latent demand for non-ETH assets, and it’s the beginning of a broader trend of DeFi acting as an economic vacuum that will eventually attract almost all value to the Ethereum blockchain.” There’s also Ryan Selkis, chief executive of crypto research firm Messari. He explained that due to the introduction of DeFi and the market share it could capture, ETH has a “higher ceiling” to rally towards than 2017/2018’s rally. For reference, the 2017/2018 rally brought ETH to $1,400. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Featured Image from Shutterstock

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Key Indicator: Bitcoin and Other Top Cryptos Are Printing “Perfect Sell Setups”

After plunging last week, the Bitcoin market has mounted a hefty recovery over the past week. The leading crypto asset traded as high as $9,700 on Saturday evening — just a few percentage points shy of the monthly high. Ethereum has fared even better, with the asset pushing 10% higher within a 24-hour time period this weekend. This recovery has convinced many traders that the crypto market is on the verge of a full-fledged bull run, but a key indicator is suggesting a “perfect sell setup” has formed. Bitcoin & Top Altcoins Form “Perfect Sell Setup” One prominent trader recently shared the image below, showing that top cryptocurrencies such as Bitcoin, Ethereum, and Chainlink are printing “perfect sell setups.” “Even though some of [the assets are] on perfected sell setups, most [will see] new weekly highs, but TD says 80% of the market is toppy by next week! The list is long — I can’t fit them all in one chart,” said the analyst that shared these charts. Charts of top cryptocurrencies, including Bitcoin, Ethereum, and Chainlink, from crypto trader “Moe” (@Moe_Mentum_ on Twitter). The sell setups are shown by the fact that all the assets in the image are printing a Tom Demark Sequential “8” candle, often seen just before or at a trend’s high.  The Tom Demark Sequential is a time-based indicator that forms “8,” “9,” and “13” candles when an asset is near an inflection point in its trend. Adding to the bearish sentiment, Bitcoin and other top cryptocurrencies are forming this “perfect sell setup” right below crucial levels of resistance. For BTC, in particular, this is important. Bitcoin is currently sitting at $9,500, just a few hundred dollars below the crucial $10,000-10,500 resistance. It seeing a rejection here could spell disaster for bulls because that would mean BTC has formed a lower high on a macro timeframe. Consecutive lower highs, as seen over the past year, are suggestive of a macro downtrend. The Fundamentals Are Still in BTC’s Favor The fundamentals still lean in favors of bulls though, despite the bearish technical analysis depicted above. Blockchain analytics firm Glassnode recently found that around 60% of the ~19 million BTC in circulation “hasn’t moved in over a year, showing increased investor HODLing behavior.” The last time this much of BTC (percentage-wise) was “frozen” so to say was “right before the BTC bull market of 2017,” prior to the 2,000% rally that took Bitcoin from $1,000 to $20,000. Chart of Bitcoin investor habits from crypto analytics firm Glassnode (@Glassnode on Twitter). The image was shared on May 29th, 2020. Adding to this, the Chinese yuan has continued to slide against the U.S. dollar on expectations of sanctions and backlash. The backlash comes after the mainland Chinese government began a process to impose a new security law on Hong Kong. Featured Image from Shutterstock

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Why Traders Think Ethereum’s Strength Could Help Bitcoin Rocket Past $10,000

Ethereum has flashed signs of immense strength in recent times, as the cryptocurrency was able to rally to highs of $245 while Bitcoin and most other altcoins only saw tempered gains. Although this uptrend has flashed some signs of stalling as it struggles to gain a foothold within the $240 region, analysts are noting that the cryptocurrency’s heavy resistance currently sits around $260. As such, this is the level that bulls are likely to target if they are able to catalyze further upwards momentum in the near-term. Analysts are now noting that Ethereum’s momentum – should it continue strong in the near-term – could be enough to pull Bitcoin past $10,000 in the days and weeks ahead. One trader believes that if this possibility comes to fruition, Bitcoin’s break above $10,000 could provide Ethereum with even further fuel to rally higher. Ethereum Posts Strong Price Action as Analysts Watch for a Move to $260 At the time of writing, Ethereum is trading down marginally at its current price of $233, marking a notable decline from daily highs of $245 that were set yesterday. Although the crypto is flashing some signs of intense short-term strength, it is imperative to keep in mind that the rejection at these highs does point to some underlying weakness amongst buyers. Any further downside could confirm these highs as a local top, but analysts are noting that there is still a solid chance that Ethereum pushes higher in the days ahead, regardless of where Bitcoin trends next. One analyst spoke about this in a recent tweet, explaining that ETH doesn’t face any “real resistance” until $260. “ETH at last real resistance till $260ish,” the analyst noted while pointing to the chart seen below. Image Courtesy of Loomdart Because $245 was only a slight resistance level, it is possible that the crypto will target this liquidity region before it dips any lower. Could Ethereum Pull Bitcoin Higher?  One highly respected trader recently noted that Ethereum’s uptrend could pull Bitcoin higher in the near-term. He also explains that Bitcoin breaking above $10,000 could provide Ethereum with even more strength, thus perpetuating its uptrend. “ETH continues to hammer up, dragging BTC past a $10k breakout. That adds fuel to ETH until ETH has gone fully absurd.” This could be a strong possibility, as Ethereum appears to have been leading this recent market-wide rally. The cryptocurrency began pushing higher yesterday while Bitcoin was hovering around $9,300. In the minutes following Ethereum’s jump, BTC followed suit and was able to climb back up to highs of $9,700. That being said, Ethereum’s price action could hold heavy influence over that of the entire cryptocurrency market in the days ahead. Featured image from Shutterstock.

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This Cryptocurrency Shows Clear Technical Breakout of 800-Day Downtrend

One of the cryptocurrency market’s worst-performing altcoins has finally broken out from an over 800-day downtrend. With all remaining diagonal downtrend resistance cleared, what’s next will likely be retests of key horizontal and psychological resistance levels above, and possibly even the asset’s former all-time high. What exactly will it take for this cryptocurrency to get there, and could this be yet another sign the next bull run is beginning? Remembering The Cryptocurrency Bubble and Altcoin Explosion Some two weeks after Bitcoin shocked the world by reaching $20,000 per BTC, a FOMO driven retail rush to buy altcoins like Stellar, Ripple, Ethereum, and countless others cause their valuations to skyrocket. According to data from popular crypto metrics platform CoinMarketCap, the cryptocurrency known as Stellar (XLM) reached an all-time high of $0.938144 USD on January 04, 2018. Related Reading | Ripple and Stellar Lead List of Worst Performing Crypto Assets Year To Date Following that day, Stellar has spent a grand total of 878 days and counting locked in a devastating downtrend that wiped out over 97% of its returns at one point. At the final downtrend low, Stellar dropped to a price of $0.02 per XLM token. During the downtrend, it wasn’t just prices that were falling. Stellar once enjoyed a dominant spot within the top ten cryptocurrency assets by market cap, now it is ranked twelfth behind the relative newcomer, and recent crypto superstar Tezos. Not even burning half of the asset’s available supply at one point was enough to spark a sustainable recovery. It led to the altcoin earning a reputation for being among the worst-performing cryptocurrencies over the last two years, alongside Ripple. Adding insult to injury for Stellar, even as disliked as Ripple is with the crypto community XRP has maintained its top-five position while XLM fell out of the top ten completely, making arguable the worst performer of the two. Stellar (XLM) Clear For Takeoff, Following Break of 800-Day Downtrend Yet suddenly, after over 850 days worth of selling, demand is finally outweighing supply, and the price per XLM is rising again. The recent growth against BTC and USD has pushed XLM through the top of the downtrend channel leaving no significant diagonal resistance left to contend with. Stellar does have many rounded-number, horizontal and psychological resistances that stand in the way between it and a full recovery, but with downtrend resistance out of the way, chances of any recovery actually sustaining is much more probable. Investors will want to watch for a retest of former resistance to confirm as support. This could suggest more downside isn’t out of the cards initially but may be what is healthiest in the grande scheme of long term recovery. Related Reading | Stellar’s Fractal Shows How Epic the Next Crypto Bull Market Can Be Breakouts in other altcoins are a strong sign interest is returning to the cryptocurrency space. Bitcoin appears to be right behind and is as fundamentally healthy as its ever been. Although these assets are still trading nowhere near their former all-time highs, the last time around proved that when people start feverishly buying these hard-capped, highly illiquid assets, prices can skyrocket rather quickly. If this is the next bull run beginning, Stellar has finally refueled and is ready for takeoff. How far this mission goes this time around remains untold.

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Crypto Set For a Major Recovery as Threat of Negative Rates Hang Over Fragile US Economy

Crypto is set to benefit immensely over the coming years as the wheels begin falling off the fiat system. While stimulus efforts may have delayed the social and economic impact of the situation we face, it is becoming more apparent that kicking the can down the road only proliferates the problem. A mass awakening to this is sweeping across the planet, as more people come to the realization that there is something deeply wrong with the current fiat system. With that, the search for alternative ways to exchange value has crypto in contention. And while no-one currently knows all of the answers to the practicality of this scenario, based on the Venezuela example, it’s only a matter of time before fiat is littering US streets. In Venezuela fiat currency is literally garbage. pic.twitter.com/cVYEw1kLoa — Dan Hedl (@danheld) May 30, 2020 Businesses of all Size are Struggling Small businesses account for half of the US GDP and employ 48% of US workers. But a recent survey conducted by LendingTree shows that optimism from small business owners is at a low. As small businesses begin to re-open across the US, many small business owners are expressing reluctance to do so. The main reason given is is a lack of liquidity. This can only mean that the trillions printed so far have not found their way to where it is needed most. “Approximately 46% of small business owners cite funding as the primary obstacle to reopening, and that once open, increased health and safety measures could further stifle sales.” As devastating as that is for the US economy, big businesses as a whole aren’t fairing any better, especially those that operate in the travel and automobile sectors. The biggest scalp to come undone recently is Hertz, which filed for bankruptcy protection in the US after it failed to meet a payment deadline with creditors. The 102-year car rental business relies heavily on revenue from airports, which has all but dried up as travel restrictions were enforced. The knock-on effect is seeing a glut of cars flood the used sector, as Hertz desperately tries to liquidate assets. Negative Rates Incoming? With that, the Fed, and central banks around the world, are fast running out of options. One thing left to try is negative interest rates. Or in the case of the European Central Bank and Bank of Japan, further negative rates. The theory holds that commercial banks would pay interest on the deposits they hold with the central bank. This, in turn, would encourage commercial banks to minimize those deposits by lending funds, and so economic activity is stimulated as borrowers spend. Passing this down the line at a retail level means borrowers are paid to borrow money, but savers are penalized for being prudent. As backward as that sounds, President Trump is all in with this idea. He recently tweeted his approval of negative rates by calling it a “gift.” Source: twitter.com As much as crypto folk like to bash Peter Schiff for his anti-Bitcoin stance, his response on this matter makes total sense. In reply to Trump, he raised the point of this being a short term fix by saying: “Negative rates are not a gift. They are a transfer of wealth from savers to debtors. But the inflation created to make negative rates possible will hurt wage earners too, plus the overall economy will be less productive and living standards will be lower as a result.“ Crypto Can Capitalize From the Madness The operative word here is backward. Such has been the absurdity of economic policies to date that we now potentially find ourselves in a situation where savers pay banks for the privilege of holding their money. Notwithstanding the inflationary element of over stimulus, the real question is where do savers turn in the event of negative rates? And the answer is towards a truer free market in crypto. The interest rates on crypto saving accounts are based on market prices, determined by individual lending platforms. When demand is high and supply is low, interest rates go up. Many accounts are available, with AAVE paying up to 11.83% on deposits. Source: bitcompare.net But before we celebrate this victory over the fiat system, there are some sticking points that need to be overcome. For one, laypeople are still hugely skeptical of crypto, and for good reason too. However, as the system implodes the search for alternatives becomes a naturally occurring phenomenon. The only thing we need to do is wait for market forces to do their thing. Featured image from Shutterstock Additional tags: XBTUSD, BTCUSD, BTCUSDT

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Ethereum Breaking This Single Level Could Spark a Surge To $300

Ethereum is up more than 5% today and it is trading above the $235 level against the US Dollar. ETH price is likely to surge towards the $285-$300 if it clears the $248 resistance zone. Ethereum is surging and it recently broke the $220 and $230 resistance levels. The price is now trading well above the $220 pivot level and the 100-day simple moving average. There was a break above a crucial bearish trend line with resistance near $208 on the daily chart of ETH/USD (data feed via Kraken). The pair is likely to continue higher towards the $285 if it clears the $248 hurdle. Ethereum Price Is Signaling More Gains In the past few days, there was a strong rise in Ethereum above the $205 resistance against the US Dollar. ETH price even outperformed bitcoin and gained more than 10% in the past few sessions. During the rise, there was a break above the 61.8% Fib retracement level of the main decline from the $288 swing high to $90 swing low. The bulls took over the market and they were able to push the price above the $200-$205 resistance zone. The price is now trading well above the $220 pivot level and the 100-day simple moving average. More importantly, there was a break above a crucial bearish trend line with resistance near $208 on the daily chart of ETH/USD. Ethereum Price The pair is now testing a significant resistance zone near the $248 and $250 levels (the breakdown zone formed in Feb 2020). It is also close to the 76.4% Fib retracement level of the main decline from the $288 swing high to $90 swing low. If Ether breaks the $248 and $250 resistance levels, it could easily continue higher above the $260 and $270 levels. The next key resistance is near the $300 level (a multi-touch zone). If the bulls succeed in clearing the $300 barrier, the price could surge towards the $320 and $330 levels. Dips Supported in ETH If Ethereum fails to clear the $248 resistance level, there could be a short term downside correction. An initial support is near the $225 and $220 levels. The first major support is now near the $205 level and the broken bearish trend line. Any further losses may perhaps lead the price towards the $190 zone and the 100-day simple moving average. Technical Indicators Daily MACD – The MACD for ETH/USD is slowly losing momentum in the bullish zone. Daily RSI – The RSI for ETH/USD is currently correcting lower from the 70 level. Major Support Level – $220 Major Resistance Level – $248 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.

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Bitcoin Holds Strong at $9,500: A Strengthening Case for Upside

Bitcoin is up more than 2% today and it is trading above $9,500 against the US Dollar. BTC is trading in a positive zone and it could rally above the $9,800 and $10,000 resistance levels. Bitcoin is showing a lot of positive signs above the $9,500 pivot level. The price recovered nicely after a short term downside correction towards the $9,200 zone. There was a break above a key bearish trend line with resistance near $9,570 on the 4-hours chart of the BTC/USD pair (data feed from Kraken). The pair is likely to accelerate higher above the $9,800 as long as it is above the $9,300 support. Bitcoin Remains In Uptrend This past week, bitcoin popped higher and broke the $9,300 resistance area against the US Dollar. BTC price traded with a positive bias and settled above the $9,300 level and the 100 simple moving average (4-hours). There was a minor downside correction from the $9,600 zone, but the same $9,300 area acted as a support. The price remained stable and traded above the 61.8% Fib retracement level of the key decline from the $9,943 high to $8,650 low. Moreover, there was a break above a key bearish trend line with resistance near $9,570 on the 4-hours chart of the BTC/USD pair. Bitcoin is now trading nicely above the 76.4% Fib retracement level of the key decline from the $9,943 high to $8,650 low. Bitcoin Price It seems like the price is likely to continue higher towards the $9,750 and $9,800 levels. The first major resistance is near the $9,950 and $10,000 levels. The next major hurdle for the bulls is near the $10,500 level, above which the price is likely to surge higher towards the $11,200 and $11,500 levels. Dips Supported in BTC In the short term, bitcoin price might correct lower below $9,600. An initial support is near the broken trend line or $9,580. The first key support is near the $9,430 level and a connecting bullish trend line on the same chart. The main support is forming near the $9,300 level and the 100 simple moving average (4-hours). Any further losses may perhaps start a major decrease and the price might revisit the $9,000 level or $8,800. Technical indicators 4 hours MACD – The MACD for BTC/USD is gaining pace in the bullish zone. 4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level. Major Support Level – $9,300 Major Resistance Level – $9,950 Take advantage of the trading opportunities with Plus500 Risk disclaimer: 76.4% of retail CFD accounts lose money.

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Analysts: Why Bitcoin Breaking $10,500 Is So Crucial to the Long-Term Bull Case

After days of stagnation and consolidation, Bitcoin started to mount a strong comeback earlier this week. The leading cryptocurrency now trades for $9,650 — the highest price in over a week and more than 13% higher than the ~$8,550 lows seen during a retracement earlier this month. But Bitcoin remains below a crucial region of resistance that analysts say could unlock upside not seen since 2019 if BTC manages to reclaim the zone as support. The Importance of $10,500 to Bitcoin As arbitrary as this number may sound, $10,500 is one of the most important price levels for Bitcoin at the moment. As can be seen below, prices in the vicinity of that level have rejected Bitcoin during many rallies over the past year. $10,500 marked the top of the “Xi pump” seen in late 2019, while it also marked the top of the rally seen earlier this year. Chart from TradingView.com illustrating the importance of the $10,500 level for Bitcoin over the past few years. The price is also a point at which a number of crucial bearish Bitcoin chart formations would become invalidated, leaving room for BTC to rally to the upside. As one commentator explained: “BTC very close to exploding. Break above $10,500 would break an over 2 year symmetrical triangle, 11 month broadening wedge, 8 month horizontal resistance.” Considering the importance of the level, it should come as no surprise that analysts have said that if Bitcoin can break above $10,500, a strong upswing could follow. Robert Sluymer of Fundstrat Global Advisors recently made the following comment on the importance of the level: “Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma.” Next directional move on tap for $BTC‘s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week sma) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-dma. pic.twitter.com/QrZ4SxYsxR — Robert Sluymer (@rsluymer) May 14, 2020 It Won’t Be Easy Although all eyes may be on $10,500, that’s not to say that the level will be easy for Bitcoin to break past. Order book data from Bitfinex’s flagship BTC/USD market shows that there is currently a confluence of sell-side orders around $10,000-10,300. This has been illustrated by the chart seen below, which was shared by a prominent crypto trader. It shows the price action of BTC since the start of the year coupled with the “OB (order book) Dominance Bands” indicator. The indicator shows the price points at which there is order book activity, with the opacity of the bands showing how significant that activity is. Chart from crypto trader Coiner-Yadox (goes by @Yodaskk on Twitter). The order book data is relevant as it predicted previous price action in the Bitcoin market. Featured Image from Shutterstock

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It’s “Decision Time” for Ethereum, and Analysts Bet ETH Surges to the Upside

It’s been an explosive past few days for Ethereum. In the past 24 hours alone, the second-largest cryptocurrency is up 10%. As reported by NewsBTC previously, the asset is currently pushing $244, the highest price since early March. This surge is important as it comes at a critical time for cryptocurrency bulls. One prominent trader shared the ETH/BTC chart seen below a few days ago, writing that it’s “decision time” for Ethereum. The chart indicates that ETH is soon about to see a massive breakout past a crucial downtrend that has held for nearly three years and past a key relative strength index level. In rallying today by 10%, outpacing Bitcoin, Ethereum may be set to rally even higher in the coming weeks. Chart of ETH/BTC macro performance from crypto trader FatihSK (@FatihSK87) Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps There Are Reasons to Be Bullish, Analysts Explain There are reasons why this rally is taking place and why more upside is expected, analysts have explained. Mythos Capital founder Ryan Sean Adams indicated this week that the fundamentals of ETH have grown over the past few weeks. The increase in transaction demand has increased transaction fees, which is suggestive of a higher Ethereum price, he explained. Adding to the bullish confluence, an analyst noted that ETH/BTC has seen its monthly Moving Average Convergence Divergence (MACD) cross bullish “for the first time since inception.” The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price, as Investopedia explains.  Such a trend indicates that the Ethereum trend that has transpired over the past few weeks has been extremely positive. Related Reading: This Eerily Accurate Fractal Predicts Bitcoin Will Rocket to $20,000 in 2020 Investors Are Long on Ethereum Investors are picking up on these trends and have flipped bullish on the asset. Blockchain analytics firm Santiment recently found that there has been a rapid increase in accumulation by some of ETH’s “whale” addresses over the past few weeks. “ETH whale addresses have just hit a 10-month high with the cumulative holdings of the top 100 non-exchange wallets now owning over 21,800,000 Ethereum. This is the largest collective balance held within the top 100 addresses since May, 2019. In the last two days alone, these top ETH whale addresses have added an additional 145,000 coins.” Santiment wrote in reference ot the chart below. Chart of ETH whale holdings from blockchain analytics firm Santiment There are also prominent venture capitalists like Garry Tan, one of (if not the first) investor in Coinbase, who have recently started to scoop up the asset in anticipation of upside. Started accumulating $ETH again — Garry Tan (@garrytan) May 31, 2020 Related Reading: This Crypto Use Case Has Never Been as “Underrated” Due to Twitter and Trump Featured Image from Shutterstock

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$10 Million Burned on BitMEX Shorts as Bitcoin Surges to $9,700

Just hours after Ethereum rocketed higher, so too has Bitcoin. The leading cryptocurrency recently reached $9,750, the highest price BTC has traded at in over a week. $9,750 is just over 13% higher than last week’s lows of $8,600, established as miners were seemingly dumping their coins in response to the May 11th block reward halving. Bitcoin price chart from Tradingview.com Due to the timing of the move, it seems that Bitcoin is being dragged up by Ethereum. As shared in a previous market update, the prominent altcoin is up 10% over the past 24 hours, pushing $244. This move has caught some traders off guard. Crypto derivatives tracker Skew.com noted that over the past four hours, upwards of $10 million worth of short positions on BitMEX have been liquidated. This adds to the dozens of millions liquidated over the past few days as BTC has rocketed higher from $8,600 to the current price. BitMEX liquidation data over the past three days from Skew.com, a crypto derivatives tracker. More Upside for Bitcoin Is in the Works The move is still ongoing but analysts think the bull case for Bitcoin is rapidly growing. One trader identified an eerily accurate fractal last year, which is a recurring pattern that occurs over different assets on different time frames. The fractal says that Bitcoin’s price action since early-2017 looks much like Amazon’s stock did from the Dotcom Boom to the post-2008 recovery.  The fractal predicted that Bitcoin would top early on this year, along with the capitulation event that took place in March. The fractal playing out in full means Bitcoin could soon surge towards the $20,000 all-time highs. The recent move higher could be the start of that move. Adding to the confluence is fundamentals. The Chinese yuan has slumped over the past week due to growing tensions between the U.S. and China over Hong Kong democracy. Against the dollar, the yuan is at lows not seen since the peak of 2019’s trade war. And the Chinese central bank set a yuan “mid-point” that is the lowest since early 2008. Analysts say that this trend of the yuan devaluing could act as a boost to Bitcoin. Chris Burniske, a partner at Placeholder Capital, remarked on the matter: “If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.” Featured Image from Shutterstock

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Ethereum Erupts 10% Higher: Here’s Why Analysts Think More Upside Is Imminent

While Bitcoin is stalling under the key $9,500-9,600 resistance level, Ethereum has rocketed higher. The asset, according to TradingView.com, is up 10% over the past 24 hours. ETH is currently pushing $244, the highest price since early March. For some context, Bitcoin is up a mere 1% in the past 24 hours. Also, a majority of altcoins have registered gains of around 2-4%. Ethereum price chart from TradingView.com This surge higher over the past 24 hours has had a large effect on the Ethereum derivatives market. According to data shared by crypto derivatives tracker Skew.com, over $2 million worth of ETH short positions on BitMEX has been liquidated over the past two days. Also, the difference between ETH’s price on BitMEX and Coinbase has trended positive, suggesting there is accumulation of Ethereum futures contracts by traders betting on more upside. Analysts Are Betting on More Ethereum Upside The recent price action has convinced analysts that more upside is in the works. A crypto day trader recently shared the chart below with the comment “not exactly bearish.” It shows that while ETH is not yet past a key zone of historical resistance, it has reclaimed a key trendline that supported the rally from the March lows. Ethereum is also breaking past other key resistances from a technical perspective, according to the chart. Chart from @CryptoMeowMeow on Twitter Adding to the bullish confluence, Mythos Capital founder Ryan Sean Adams indicated this week that the fundamentals of ETH have grown over the past few weeks. The increase in transaction demand has increased transaction fees, which is suggestive of a higher Ethereum price, he explained. Bitcoin Could Follow ETH  Bitcoin has been lagging Ethereum. The flagship cryptocurrency is up 1% in the past 24 hours while ETH is up 10% as aforementioned. Some may see this as a sign of larger weakness in this nascent market, but some think that Ethereum’s ability to outperform is a sign of an imminent rally in BTC’s price. Bitazu Capital’s Mohit Sorout recently shared the chart below, indicating that Ethereum has recently breached a key resistance while Bitcoin hasn’t. Charts of both ETH and BTC from Mohit Sorout (goes by @SinghSoro on Twitter) As ETH led BTC higher during February 2020’s rally, there is a good likelihood that BTC is about to burst past the downtrend indicated in Sorout’s chart too. Should this happen, BTC could rally to ~$10,100 in the coming days. Featured Image from Shutterstock

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Bitcoin’s Rise has Not Been Supported by Growing Volume; What This Means

Bitcoin has seen a notable price rise over the past week, bouncing from its recent lows of $8,800 that were set during its latest downtrend. The subsequent uptrend allowed the cryptocurrency to rally up to highs of $9,700 just a couple of days ago. The visit to this level was fleeting, as buyers quickly lost their momentum. The benchmark cryptocurrency now appears to be entering a consolidation phase as it struggles to garner any decisive momentum. It is important to note that a lack of rising volume is a fundamental sign that suggests BTC’s ongoing uptrend may not be as strong as it seems. Bitcoin’s Rallies Towards Key Resistance, But Volume Growth Falters  At the time of writing, Bitcoin is trading up just over 1% at its current price of $9,550, marking a notable climb from weekly lows of $8,800. This latest upswing comes about after a short-lived decline to lows of $9,300 yesterday that came about following its rejection at $9,700. It now appears that the cryptocurrency is currently gearing up for another test of $10,000, as this has been the key psychological resistance that bears have carefully guarded over the past several months. In order for buyers to successfully surmount this level, it is imperative that buyers garner greater support. Data shows that Bitcoin’s trading volume has faltered as of late. This could mean that its recent uptrend will be followed by a swift retrace. Arcane Research spoke about this trend within a recent report, explaining that healthy uptrends need to be backed by growing volume. “It is always healthy with supporting volume when the BTC price increases. However, that has not been the case over the past few days. The 7-day average real trading volume is still trending downwards and has looked weak ever since we started ranging in this $9,000-$10,000 area,” they explained. The below graph highlights this trend, highlighting the significant decline Bitcoin’s volume has seen as of late. Image Courtesy of Arcane Research BTC Could Be Poised to Make a Massive Movement  This trend of dwindling volume may not last for too much longer, as Bitcoin’s volatility has also declined in tandem. It is important to note that periods of low volatility are always short-lived, meaning that a major movement could be imminent. Arcane Research spoke about this, saying: “No significant changes in volatility over the past week. However, this could quickly change. Both in March and April, the last days of the month were characterized by some large daily moves for the BTC price. With a large amount of derivates contracts expiring today, we could be up for some volatility heading into the weekend and a new month.” Image Courtesy of Arcane Research Featured image from Shutterstock.

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Ethereum Leads Market with Insane Rally; Here’s Where it May Go Next

Ethereum incurred some explosive momentum yesterday that allowed it to erase weeks of losses that it had posted against its Bitcoin trading pair. This latest movement has significantly bolstered its market structure, with ETH to rallying up to its local highs of $235 that were set several weeks ago. It still has quite a way to go before it reaches its yearly highs of $290. It is important to note that although it does seem to be overtly bullish, analysts are somewhat cautious about where the cryptocurrency could trend in the near-term. This weakness is rooted in a massive descending trendline that it has been respecting throughout the past several months. If it continues struggling to surmount this level, analysts do believe it could be well positioned to see further downside in the days and weeks ahead. Ethereum Posts Explosive Overnight Rally At the time of writing, Ethereum is trading up just under 7% at its current price of $235. This marks a massive climb from its multi-day lows of $205. This uptrend came about suddenly yesterday evening, and it doesn’t appear that there was any overt catalyst for this movement. Interestingly, the cryptocurrency’s climb seems to have led the entire market higher with it, as Bitcoin was able to rally from $9,300 to $9,600 just minutes after ETH posted this movement. One analyst recently offered a chart showing an interesting possibility – as this latest upswing came about after the crypto visited the lower boundary of an ascending channel. Image Courtesy of Mohit Sorout It is possible that this channel will help guide the crypto higher in the days and weeks ahead. The resistance it is currently facing is rather strong, however, as this is where it was rejected at a few weeks ago alongside Bitcoin’s rise to highs of $10,500. Ethereum is still trading down from yearly highs of $290, and it may not be able to revisit these highs until Bitcoin is able to firmly break $10,000 and leads the entire market higher. Here’s Why ETH Could Soon Post a Notable Retrace Ethereum’s ongoing uptrend may be short-lived, as this latest uptrend led it straight into a descending trendline that has been formed in the time following its rejection at $290. One analyst mused this possibility in a recent tweet, offering a chart showing that this line halted the uptrend, adding that he is cutting his long positions here in anticipation of it seeing a rejection. “ETH/BTC update: Smashed both targets; currently nearing HTF resistance; now is where I’d cut my longs,” he explained while pointing to the chart seen below. Image Courtesy of Bagsy If it does surmount this level, it is possible that the crypto will then target its 2020 highs of $290. Featured image from Shutterstock.

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Bitcoin ‘Smart Money Indicator’ Revisits All-Time High, What’s Next?

The likes of Paul Tudor Jones and his hedge fund are now buying Bitcoin. Grayscale is scooping up over 150% of newly minted coins. Yesterday, a record number of Bitcoin futures contracts expired on the Chicago Mercantile Exchange better know as CME. Interest from these “smart money” investors and traders is soaring, and now, a technical analysis indicator dubbed as the “smart money indicator” has revisited its all-time high set back in December 2017, adding more credence to the theory that institutions are finally getting into the first-ever cryptocurrency. Bitcoin Smart Money Indicator Returns To All-Time High, Consolidating Ahead of Next Move 2017 put crypto on the map and made Bitcoin a household name. It’s meteoric rise to $20,000 took the public by storm as they learned of the wealth generated by the first of its kind, futuristic, intangible asset that seemingly came out of nowhere. The idea of getting rich quick yet again didn’t work, the bubble popped, and cryptocurrency valuations returns to more realistic levels. A bear market has ensued now for over two full years. During that time the economic growth and excess from 2017 have turned into a somber state of economic distress. The investor mindset has changed and seeking out high risk, high reward bets has turned into seeking out safe havens and hedges against inflation. Related Reading | ‘One of the Greatest Ever’ Indicators Is Screaming Buy Bitcoin at $9,000  The tone and narrative surrounding Bitcoin has also changed, from a get rich quick scheme into a hard, digital asset that exists outside the government’s control. No longer is the asset only considered by techies and retail investing millennials, it is now being looked at by hedge funds, asset management firms, and more, ranging from the likes of Goldman Sachs to Paul Tudor Jones. All fundamentals that look at the underlying health of the asset and its protocol are screaming buy. The block reward miners receive for securing the network has been halved. Technicals also point to the asset’s long term trend resuming. The signals all point to the greatest bull run ever, and smart money is taking notice. This is made evident by the On-Balance Volume indicator, affectionately called the smart money indicator, revisiting a level not seen since Bitcoin price traded at an all-time high. And during the previous cycle, once Bitcoin reclaimed this level on the indicator, it never looked back. Spotting Smart Money’s Moves With The On-Balance Volume Indicator According to Investopedia, “On-balance volume provides a running total of an asset’s trading volume and indicates whether this volume is flowing in or out of a given security or currency pair.” Simply put, it is the cumulative total of volume. The tool was developed by Joseph Granville to separate price action between “smart money” and institutional investors taking early positions, and retail investors chasing the trend. Large deviations in an asset’s OBV while an asset’s price remains relatively stable can reveal that “smart money” is taking large positions carefully to prevent paying more for their position by causing an early breakout. Related Reading | Institutional FOMO Begins: One Firms Buys 150% of New Bitcoin Supply OBV continues to build up pressure until it is released and price finally follows. What the On-Balance Volume indicator could be suggesting is that smart money is now buying at a rate similar to the retail frenzy and that took Bitcoin to $20,000. Meanwhile, Bitcoin is trading at less than half that price and has nowhere near the same level of FOMO. As soon as this level breaks up, it could spark yet another wave of retail FOMO and the new Bitcoin bull market may finally soon be here.

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This Crypto Use Case Has Never Been as “Underrated” Due to Twitter and Trump

Crypto assets and blockchains have long had ambiguous use cases. Some say that this industry is good for replacing traditional institutions like governments and financial service providers. Others say that blockchain’s sole purpose is to boost the efficiency of modern corporations that may need to accelerate their supply chains or otherwise. Unfortunately for cryptocurrency bulls, many of these use cases have not come to fruition. Decentralized finance (DeFi) protocols are subject to many hacks a year, while there has been limited adoption of public blockchain technology in the business world. This comes in spite of many pilot projects by large corporations. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Though one prominent investor says that one use case for crypto technology has never been stronger than it is now. Twitter & Social Medias Come Under Fire — and That’s Bullish for Crypto It’s been a tough past few days for Twitter and other social media platforms. Twitter recently flagged an election-related tweet from President Trump as something to be fact-checked. Some have applauded the move, while others have bashed it. President Trump, though, saw this as a sign that Twitter and other platforms have “unchecked power.” As a result, he signed an executive order targeting social media sites that aims to remove some of the legal immunities that these platforms have as mediums for free speech. According to Su Zhu, this is a trend that will dramatically help crypto’s web 3.0 use case, which was popular in 2017/2018. The CIO of Three Arrows Capital explained on the matter: “With the recent politicization of facebook, google, and other bigtech social media giants, the web3 thesis for crypto has never been as underrated as it is now.” with the recent politicization of facebook, google, and other bigtech social media giants, the web3 thesis for crypto has never been as underrated as it is now — Su Zhu (@zhusu) May 29, 2020 The idea goes that with the introduction of decentralized mechanisms of transferring value and software in blockchain, there could be a rise of decentralized social media platforms not managed by one central actor. Not the Only Geopolitical Trend Showing Cryptocurrency Makes Sense The ongoing spat between social media platforms and the White House isn’t the only geopolitical and macro trend that is showing crypto makes sense. Raoul Pal —  chief executive of Real Vision and a former Goldman Sachs executive — has recently begun to postulate that the ongoing recession could be the fiat system’s last. He explained that due to structural risks in the fiat currency system and how the global economy manages debt, the U.S. dollar could “break.” Bitcoin and crypto assets, to him, are the logical progression from a world where the power of fiat currencies is diminishing. He explained in a recent newsletter: “When I look ahead, all I see is the potential risk of the failure of our very system of money or less dramatically, out current financial architecture. Bitcoin is the call option in the future system.” Related Reading: This Eerily Accurate Fractal Predicts Bitcoin Will Rocket to $20,000 in 2020 Featured Image from Shutterstock

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Analyst Who Called Bitcoin’s 2019 Bottom Down to Dollars Thinks This Comes Next

The past few days have seen Bitcoin recover strongly from the weekly lows of $8,600. As of the time of this article’s writing, the flagship cryptocurrency sits at $9,400, just over $200 shy of the weekly high of $9,650. It’s a strong rally that has convinced many traders of the bull case, but one prominent analyst suggests that it is too soon to be bullish. This is especially notable as the analyst that made this assertion has a surprising track record. Related Reading: Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps Top Analyst Thinks Bitcoin Still on Track to Hit ~$6,700 Although you may not know him by name, the analyst “Dave the Wave” has made a number of extremely accurate calls over the past few weeks. In the middle of 2019, when BTC was pushing past key resistances above $10,000, he called for a retracement to $6,400. He got that move, predicting the bottom of the trend down to dollars. Earlier this year, Dave suggested that the asset would rally to $11,000 before reversing towards the $8,000s and maybe even lower. He missed the highs by a few hundred dollars, but the timing was on point. Now, he’s suggesting that Bitcoin is still on track to fall towards $6,700 in the coming eight weeks. BTC is still trading in a textbook descending triangle, Dave shared in the chart below, corroborating his call. Has anyone drawn a descending triangle yet? This would double up nicely with the .38 fib [just taking price into the 6K range], and triple up with the larger reverse head and shoulders drawn a month ago above. pic.twitter.com/sIXncYI0wM — dave the wave (@davthewave) May 28, 2020 All Eyes On ~$10,000 Resistance The analyst’s bias is leaning bearish, but that’s not to say that he’s stuck with that bias forever. He explained that things can “get interesting” if BTC breaches the $9,800 level. The analyst shared the chart below to illustrate the importance of this region. It shows that $9,800 is a downtrend formed after BTC started trending lower after the $10,100 highs seen at the end of April. A similar downtrend marked the top of the rally to $14,000 in 2019, suggesting it holds similar importance for bulls to break right now. BTC price chart from Dave the Wave, a prominent crypto trader. “A break of 9.8K and things would start to get interesting….” was the comment attached to the chart. The importance of the $10,000 region has been echoed by other traders and market commentators. Order book data from Bitfinex shows that there is currently heavy resistance in the $10,000-10,300 range. The same order book data marked the highs at $10,000 twice over the past month, while it also indicated where the market would top during the peak of February’s rally. Chart from crypto trader Coiner-Yadox (goes by @Yodaskk on Twitter). Should historical precedent hold, there’s a relatively high likelihood BTC will see a price rejection if and when it rallies to $10,000. If it can break past this level, though, some have suggested the asset could surge to fresh year-to-date highs. Related Reading: This Eerily Accurate Fractal Predicts Bitcoin Will Rocket to $20,000 in 2020 Featured Image from Shutterstock

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Crypto Tidbits: Bitcoin Nears $10k, Goldman Sachs Talks Cryptocurrency, Chinese Yuan Slumps

Another week, another round of Crypto Tidbits. It’s been a positive past week for the Bitcoin market. After falling as low as $8,600, the flagship crypto mounted a strong comeback over the past few days that say BTC hit $9,650. This is the highest price the asset has traded in just over eight days. Interestingly, altcoins began to deviate from Bitcoin’s price action over the past week. As can be seen in the image below, Ethereum largely outperformed BTC and other asset classes, as did Cardano and Maker. On the other hand, Chainlink, XRP, Bitcoin Satoshi’s Vision, and other top crypto assets slumped. Image of crypto market price action from Coin360 The crypto market remains below the late-April highs and the year-to-date highs, but analysts are still bullish. Blockchain analytics upstart Santiment, for instance, shared late last week that BTC’s Network Value to Transactions Ratio (NVT) remains “healthy.” “In spite of BTC’s mild -4.4% downswing today, its NVT looks healthy, and our model is showing a semi-bullish signal. The amount of unique tokens being transacted on Bitcoin network is slightly above average for in May, according to where price levels currently sit,” blockchain analytics firm Santiment wrote. Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His Bitcoin, China ‘Bans’ Cryptocurrency Mining Bitcoin & Crypto Tidbits Goldman Sachs Talks Crypto Assets: On May 27, multinational investment bank and Wall Street giant Goldman Sachs held a call related to Bitcoin. Entitled “Implications of Current Policies for Inflation, Gold, and Bitcoin,” two executives at Goldman Sachs and a Harvard professor deliberated over BTC. They said that Bitcoin does not generate cash flow, does not hedge against inflationary risks, and does not “provide consistent diversification benefits given their unstable correlations.” The analysts added that the crypto can be used for crime, citing the PlusToken Ponzi scheme of yesteryear. Many are divided over the contents of the call, but there seems to be a silver lining: as one analyst explained, the fact that Goldman Sachs mentioned Bitcoin is a sign they’re hearing of it from their clients. Chinese Yuan Slips, Boosting Bitcoin and Crypto Bull Case: U.S.-China relations were on the mend at the end of 2019, but this is changing with news of a new Hong Kong law. The law, many in the international community say, erodes the region’s autonomy that the mainland Chinese government promised to uphold until 2047. The U.S. has responded by threatening sanctions. The Chinese yuan, as a result, has sunk. This could benefit Bitcoin. Chris Burniske, a partner at Placeholder Capital, explained: “If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.” Early Bitcoin Miners Bashes Craig Wright: An early Bitcoin miner from 2019/2010 with access to tens of millions (and potentially over one hundred million) worth of BTC recently revealed that he’s still around. The owner of the coins signed the following message with his private key, indicating his latest views on developments in the Bitcoin space without revealing who he is: “Craig Steven Wright is a liar and a fraud. He doesn’t have the keys used to sign this message. The Lightning Network is a significant achievement. However, we need to continue work on improving on-chain capacity. Unfortunately, the solution is not to just change a constant in the code or to allow powerful participants to force out others. We are all Satoshi.” Bitcoin Cash Looks Fundamentally Unhealthy, Top Crypto Analyst Says: According to prominent crypto analyst Yassine Elmandjra of ARK Invest, Bitcoin Cash is so fundamentally weak that he is surprised “we haven’t seen a large scale attack yet.” He cited three fundamental factors to back this assertion: Bitcoin Cash’s network hash rate is down 30% since its April halving, economic throughput has dropped to all-time lows, and it doesn’t cost that much from a macro perspective to attack the network. Bitcoin Cash is not looking healthy: -Hashrate down 30% since halving (& only accounts for ~2% of SHA256 hash)-Economic throughput at all time lows-Fees are .05% of miner rev (<$100/day)-Theoretical 51% attack costs <$10k/hr Surprised we haven't seen a large scale attack yet — Yassine Elmandjra (@yassineARK) May 23, 2020 Featured Image from Shutterstock

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Tron Network Reaches Major Milestone With 6 Million Addresses

Justin Sun, the founder and CEO of Tron, announced that the Tron network has reached a major milestone with 6 million addresses registered. The increase in the number of addresses follows the increase in the number of dApps built on the network, which reached 768 in total last week. 10,000 New Addresses Created on Tron Every Day Tron, the decentralized blockchain network founded by Justin Sun, has seen a significant increase in use this year, despite the fact that its market cap has been declining.  Justin Sun announced today that the Tron network has reached a major milestone—there are currently over 6 million addresses on the blockchain.  Data from blockchain explorer Tronscan showed that there has been a steady growth in the number of new addresses created on the network in the past 14 days, averaging at 10,000 per day.       Graph showing the account growth on the TRX network in the past 14 days.  New Tron Dapps Could Be Behind Latest Address Increase Data from a blockchain analytics tracker also showed that there have been 1.3 million transactions on the main chain and the Sun Network on May 28, which is a steep increase from the 1 million transactions that were processed on the network on May 27.                  Graph showing the number of daily transaction on the TRX network in the past 14 days The fact that the account growth isn’t mirrored in TRX’s price growth indicates that it might have been a result of an increasing number of decentralized applications (dAps) being built on the network.  According to the latest Dapp Weekly Report, there are currently 768 dapps on the network, with the growth of the platforms, games, and services being built on the network remaining stable for the past week.  According to @dapp_review, the number of #TRON #Dapps reached 768 with 5 new #Dapps and signaling a stable development. #TRON’s #Dapp ecosystem is growing at a steady pace. We welcome more users and developers to join us. #TRX $TRXhttps://t.co/01ldyPGokL — Justin Sun (@justinsuntron) May 29, 2020 The report showed that from May 23 to May 29, there were 518,000 transactions processed on dapps based on the network, with more than $4.1 million traded.  The report also showed that the majority of dapps on the Tron network were gambling and other high-risk categories, while exchanges made up the smallest portion of the dapps built on the platform.                                       The Dapp Weekly Report summary. (Source: TRX Foundation) Sun’s company has been on an acquisition spree after acquiring BitTorrent, Steemit, and Poloniex. It is also trying to capture the stablecoin market by hosting Tether on the blockchain and by launching its own stablecoin called USDJ. Featured Image from Shutterstock

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If History Repeats, This Trend Could Put a Bloody End to Chainlink’s Macro Strength

Chainlink’s immense strength throughout the past couple of years has allowed the cryptocurrency to become one of the most bullish digital assets. This price action has allowed it to form a market structure that led it up to fresh all-time highs just a couple of months ago. Analysts are now noting that the crypto is well positioned to see further upside from a technical perspective, as it may soon make a bid at its previously established highs. It is important to note that this technical strength may be plagued by a grim trend that has historically emerged prior to massive price declines. If history repeats itself, the crypto could soon post a local top that invalidates its macro uptrend. Bearish Trend Emerges, Suggesting Chainlink Could Soon See Notable Losses  At the time of writing, Chainlink is trading up marginally at its current price of $3.96. The cryptocurrency has seen some immense volatility over the past 24 hours, rocketing up to highs of $4.10 around this time yesterday before facing a harsh rejection that subsequently led it down to lows around its current price levels. This price action has come about in tandem with that seen by Bitcoin. It rallied up to highs of $9,700 yesterday before losing its momentum and declining to lows of $9,350. The benchmark cryptocurrency has since been hovering around this support level, struggling to garner any further upwards momentum. In addition to Bitcoin placing some pressure on Chainlink, there is another emerging trend that could cause LINK to post some notable near-term losses. Social volume for the crypto has been rocketing higher in recent times. Over the past six months, erroneous rises in social volume have come about just before sharp price declines. Data analytics platform Santiment spoke about this in a recent tweet, explaining that these rises always tend to correlate with local tops. “It’s interesting to see how the past six months have looked for LINK. Generally, these high spikes almost always correlate for a local top, so watch to see just how this current mid-level social volume bar ends up closing,” they noted while referencing the below chart. Image Courtesy of Santiment Analysts Think LINK Remains Technically Strong Despite this trend being potentially bearish, it is important to note that some analysts still believe it could see further upside. One analyst spoke about this in a recent blog post, explaining that he is anticipating Chainlink to see a rally to its all-time highs around $5.00 if it is able to post a clean break of the resistance it faces at $4.30. “Resistance overhead is at $4.30 and if price was able to break above this I would expect to see a test of all-time highs fairly swiftly. Invalidation for longs would be a clean break below $3.40,” he said while pointing to the chart seen below. Image Courtesy of Nik Patel Featured image from Shutterstock.

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This Eerily Accurate Fractal Predicts Bitcoin Will Rocket to $20,000 in 2020

While Bitcoin is up 5% over the past two days, the crypto-asset market remains in consolidation. After hitting $10,100 in late April, the cryptocurrency has stagnated under that key level. It has since traded in a relatively tight consolidation pattern from $8,500 to $9,500, failing to move decisively out of this range. Though a popular trader says that Bitcoin is currently showing signs it will soon rocket higher. The sign cited is a fractal the asset has tracked for the past three years. Related Reading: Crypto Tidbits: Satoshi Isn’t Dumping His Bitcoin, China ‘Bans’ Cryptocurrency Mining Bitcoin Is Preparing to Rally to $20,000: Fractal Markets seemingly move without rhyme or reason, but this isn’t always the case. Due to the psychology of investors, there are technical formations called fractals that show price action can repeat at different times and for different assets. As Investopedia explains: “Fractals also refer to a recurring pattern that occurs amid larger more chaotic price movements” A prominent trader in 2019 identified that Bitcoin’s price action since early-2017 looks much like the stock of Amazon did from the Dotcom Boom to the recovery after the Great Recession. In other words, BTC may be following an Amazon fractal. While this pattern was identified in late-2019, it has held up until today. The fractal predicted that Bitcoin would top early on this year, along with the capitulation event that took place in March. Bitcoin and Amazon fractal chart from a popular crypto trader “Mr. Chief” (@HaloCrypto on Twitter). Should the fractal play out in full, Bitcoin will soon surge back towards the $20,000 highs as the chart above indicates. The fractal also predicts that by early 2021, the leading cryptocurrency will have established a new all-time high, likely at $25,000 and beyond. Not the Only Bullish Factor The fractal isn’t the only factor that has analysts bullish on Bitcoin. As reported by NewsBTC, the crypto market could soon surge as the Chinese yuan continues to slide against the U.S. dollar. The recent tensions in Hong Kong and the subsequent global response have weakened the Chinese currency against other currencies. Against the dollar, the yuan is at lows not seen since the peak of 2019’s trade war. This is due to the sanctions the U.S. intends to place on Chinese companies in the near future, along with potentially similar moves from other global powers. Analysts say that this trend of the yuan devaluing could act as a boost to Bitcoin. Chris Burniske, a partner at Placeholder Capital, remarked on the matter: “If China’s CNY continues to weaken against USD, then we could have a 2015 and 2016 repeat, where BTC strength coincided with yuan weakness.” If China's $CNY continues to weaken against $USD, then we could have a 2015 and 2016 repeat (pictured below), where $BTC strength coincided with yuan weakness. https://t.co/ISVJAZMX5O pic.twitter.com/VApfxe1SFw — Chris Burniske (@cburniske) May 22, 2020 Related Reading: The $90 Million Bitcoin Pizza Story Has an Unexpected Silver Lining Featured Image from Shutterstock

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Bitcoin Risks a Free-Fall to $7,000 Despite Strong Fundamentals, Analysts Warn

Bitcoin has been consolidating within the lower-$9,000 region for the past day, struggling to garner any upwards momentum in the time following its latest rejection at $9,700. The price action seen today has come about due to this latest rejection shining a spotlight on the present weakness of buyers, as they have been unable to firmly surmount $10,000 at any point throughout 2020. This weakness has come about in the face of the crypto flashing some immense signs of underlying strength. One such sign is the fact that over 60% of the Bitcoin supply has not been moved in over a year, signaling that investors are taking a long-term approach to their BTC investments. This may not be enough to stop the crypto from seeing a decline into the $7,000 region – according to one prominent trader. Bitcoin Flashes Signs of Fundamental Strength Despite Inability to Break $10,000 At the time of writing, Bitcoin is trading down just under 1% at its current price of $9,400. This is around the price level it has been trading at throughout the past day. Yesterday afternoon, the benchmark cryptocurrency incurred a massive influx of buying pressure that helped it rally to highs of $9,700. This movement was fleeting, as the crypto was quickly met with significant selling pressure. If it begins declining from its current price region, it is imperative that buyers continue defending against a break beneath $8,800. Fundamental strength could help bolster Bitcoin’s near-term trend. One metric of this fundamental strength is the amount of Bitcoin that has been dormant over the past year. Data from Glassnode elucidates this trend, revealing that 60% of the benchmark crypto’s supply has not been moved in over a year. “60% of the Bitcoin supply hasn’t move in over a year, showing increasing investor hodling behavior. Last time this we saw these levels was before the BTC bull market of 2017,” they explained. Image Courtesy of Glassnode BTC Could See a Free-Fall Despite of Fundamental Strength This fundamental strength may not be enough to stop the crypto from seeing a free fall decline, however, which could lead it into the $7,000 region. One analyst spoke about this grim possibility in a recent tweet, explaining that the rejection stopped Bitcoin from breaking above the upper boundary of a technical formation that it has been caught within. He concludes that this rejection has confirmed that BTC is likely to see further near-term downside, highlighting a target at $7,800 on the chart seen below. “BTC – Update: I’m still short. Look how price rejected off my lvl to the tick ($9625). Obviously not in the clear yet, but this is the price action I’d look for to add more to this swing short,” he explained.” Image Courtesy of Calmly Featured image from Shutterstock.

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This is the Level Chainlink Needs to Surmount to See “Swift Rally” to Fresh Highs

Chainlink’s immense uptrend has stalled in recent times as the cryptocurrency struggles to gain a firm foothold within the $4.00 region. Although it has yet to see any swift rejection, it has been flashing some signs of weakness as it underperforms Bitcoin and the aggregated crypto market. Analysts are noting, however, that the cryptocurrency could be well positioned to see further upside in the days and weeks ahead as it inches up towards a key resistance level. If buyers are able to garner enough buying pressure to firmly shatter this resistance level, LINK could soon find itself caught within an uptrend that leads it up to fresh all-time highs. Chainlink Positioned to Set Fresh All-Time Highs as Key Resistance Approaches  At the time of writing, Chainlink is trading up just over 1% at its current price of $3.94. This marks a notable climb from daily lows of $3.85 that were set earlier today. Over a weekly period, the cryptocurrency is trading down significantly from recent highs of over $4.10. LINK has largely been ranging sideways throughout May as it struggles to garner any decisive momentum in either direction. This trading range has been established between roughly $3.50 and $4.20, and it is likely that this range will persist until Bitcoin is able to break its consolidation channel within the lower-$9,000 region. Nik Patel – a popular cryptocurrency analyst – recently noted that LINK’s multi-month trading range is quite larger than this, with a lower boundary at $1.55 and an upper boundary at its all-time highs of $5.00. Patel explained that he does believe the crypto could soon see a swift rally up to the upper boundary of this macro range, but it must first surmount $4.30. “Resistance overhead is at $4.30 and if price was able to break above this I would expect to see a test of all-time highs fairly swiftly. Invalidation for longs would be a clean break below $3.40,” he explained. Image Courtesy of Nik Patel LINK Also Flashing Signs of Strength Against BTC Although Chainlink is currently underperforming Bitcoin – trading down 2% against BTC at its current price of 0.000416 – this trend may soon come to a swift end. Patel further went on to add that a confluence of trendline support has led him to believe LINK is more likely to see upside against BTC than it is against its USD pair. “I am more fond of this pair than the Dollar pair for a long position, as we have confluence of trendline support and prior resistance at 40k satoshis, giving us a tight stop,” he noted, referencing a trendline that has been formed since May of 2019. Image Courtesy of Nik Patel Chainlink’s strength could be further perpetuated by a potential ascending triangle formation that it is establishing against its BTC trading pair. Featured image from Shutterstock.

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Ethereum Posts Breakout Rally as Analysts Set Upside Targets at $290

Ethereum has been able to incur some notable upwards momentum throughout the past day. This has come about after weeks of it severely underperforming both Bitcoin and the aggregated crypto market. It now appears that the cryptocurrency could be positioned to see even further gains in the near-term, as this latest movement has provided its market structure with a serious boost. This newfound strength can be primarily traced back to its firm break above $215. This price level was previously the upper boundary of a strong and long-held trading range that the crypto had been caught within. As such, buyers’ ability to shatter this level has opened the gates for it to see further upside. Some analysts are even setting their sights on a move back to its 2020 highs of $290. Ethereum Posts Breakout Rally as Analysts Forecast Further Upside At the time of writing, Ethereum is trading up just under 4% at its current price of $220. This marks a roughly 10% climb from its multi-day lows that have been set within the lower-$200 region. How the cryptocurrency trends in the days ahead may depend on whether or not buyers are able to hold it firmly above $215 – as this was previously a key level that bears had been carefully guarding. In the near-term, it is a strong possibility that ETH will make a bid at its multi-week highs of $235 that were set a few weeks ago in tandem with Bitcoin’s climb to highs of $10,500. Although it remains unclear as to whether anything is driving Ethereum’s present rally besides technical strength, it is important to note that the number of ETH long positions open on Bitfinex have hit all-time highs over the past couple of weeks. These traders may be well positioned in the near-term, as one popular crypto analyst on Twitter recently explained that a few factors suggest that it will see further upside. His swing target sits around $250. “ETH / USD long trade on mex – Entry is the H12 reclaim of a major level (turned support). – Stop-loss placed below the breakout candle. – First target is the next H12 significant resistance (scaling 50% off) – Second target is the first resistance above the deep swing high,” he noted. Image Courtesy of Livercoin Could ETH Soon Trade Back at its Yearly Highs?  Another popular analyst is also floating the possibility that Ethereum will soon revisit its 2020 highs of $290. “Ethereum: Flipped $195 support and broke above $215. Might consolidate a little bit, before continuation, but overall looks wonderful. Targets are still $250 and $290,” he explained. Image Courtesy of Crypto Michael Because ETH is currently rallying as Bitcoin and the aggregated crypto market decline, this potentially imminent upwards momentum could come about independent of that seen by the market. Featured image from Shutterstock.

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Major Crypto Assets Are Preparing For Powerful Volatility Against Bitcoin

Although there were some early signs that an altcoin season may be upon us, top crypto assets like Ethereum have been reverted to weakening performance against Bitcoin. However, a big move is potentially coming, as the Bollinger Band Width of most major crypto assets on their BTC trading pairs is indicating a distinct lack of volatility that is bound to break with an explosive bang. Major Crypto Trading Pairs Against BTC Set Record-Low Volatility The cryptocurrency market appears to be at a bit of an impasse and doesn’t know where it wants to go next. Bitcoin continues to struggle with resistance above $10,000, while altcoins are still more than 80% away from recovery to all-time high prices. Sentiment in the asset class is improving, but prices remain constrained to lower highs that typically signal weakness. Related Reading | It’s Official: Tether Flippens XRP After Recent Crypto Crash  Bitcoin interest has been picking up post-halving, and institutions seem to finally be buying in. But it’s still not enough. On BTC trading pairs, altcoins everywhere are stagnant, repeatedly testing lows but unable to fall lower. The lack of momentum has led to most major cryptocurrency assets to reach extreme lows in terms of volatility. Lots of majors with fairly tight daily Bollinger Bands$LTC $XMR $TRX $EOS $IOTA $XLM pic.twitter.com/a1iPrWITcP — Goomba {C-fork maximalist} (@im_goomba) May 28, 2020 Is Tightening Bollinger Band Width A Prelude To Altcoin Season? Bollinger Bands are a technical analysis indicator designed by market analyst John Bollinger, and feature a simple moving average and two standard deviations of that SMA. The top and bottom bands indicate volatility within price action, as they expand and contract. The more wild the price action, the wider the bands get. Related Reading | Ethereum (ETH) May Be Forecasting 50% Drop Against Dominant BTC  When things get stagnant and markets trade sideways, the Bollinger Bands reduce in width. This coiling effect releases a powerful explosion to either the up or downside, spending on the trend. Major crypto altcoins like Monero, Litecoin, and many others are showing some of the lowest Bollinger Band Widths in the asset’s history, suggesting that a massive break is possible, and one that will lead to a strong return to volatility. Altcoins are extremely oversold on BTC trading pairs and have already touched lows from the early days of the crypto bubble. Many remain down over 80% from all-time high prices, while Bitcoin trades at close to 50% from its record. And while Bitcoin deals with such a critical level at $10,000, a boost in altcoins may be the path of least resistance for the crypto market. A breakout to the upside on these pairs doesn’t necessarily indicate a crash in Bitcoin, but it could suggest a proper altcoin season will be coming soon. The alternative is that altcoins fall further, with many of them possibly falling back to pre-bubble pricing against BTC.

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ERC-20 Tokens Now Make up Almost 50% of the Total Value Stored on Ethereum

Ethereum is getting closer to being flipped on its own blockchain, as other ERC-20 tokens now make up almost half of the total value stored on the network. However, the latest research from Messari Crypto suggests that while stablecoins have seen significant growth in the past few years, ETH still retains its privileged position on the Ethereum blockchain. Ether is Taking Up Less and Less Value on the Ethereum Blockchain Ethereum is getting dangerously close to being flipped on its own blockchain—this is the takeaway from Messari Crypto’s latest analysis into the state of the value locked on the world’s second-largest blockchain. In a lengthy think-piece, Messari’s head of research Ryan Watkins dove deep into the issue of ERC-20 tokens and stablecoins on the Ethereum blockchain. The data showed that, over the past two years, there has been a complete transformation of how value is both stored and transferred on the Ethereum blockchain.  Until mid-2016, ETH made up 100% of the value stored on the blockchain. Its dominance, however, began withering in 2018, and now makes up just over 50% of the total value stored on the blockchain. Graph showing the total value stored on the network. (Source: Messari) ERC-20 Dominance Doesn’t Bode Well for ETH But Cements Its Place Watkins said that the growth of stablecoins in relation to the growth in value of ETH will be what decides whether or not ETH will remain the dominant force on the blockchain. The total market capitalization of ETH currently stands at $22.7 billion, while the market cap of all ERC-20 tokens, including stablecoins and exchange tokens, is $18.7 billion. Graph showing the market capitalization of Ethereum-based assets. (Source: Messari) Nonetheless, the transformation in value on ETH we’ve been seeing in the past few years isn’t just about stored assets—it’s also about the amount of value being moved. Watkins explained that Ethereum is on pace to settle more than $530 billion this year, with most of the growth being driven by the growth of stablecoins. Annual settlement value on Ethereum. (Source: Messari) While ETH’s decreasing role as a medium of exchange might not be positive for Ethereum in the long-run, Watkins said that the community well understands the need to maintain ETH’s privileged position on the blockchain. “In short, Ethereum is being used more than ever, and in just two years, it has evolved from a blank canvas to an agglomeration of novel forms of value and use cases,” he said. “The question for investors is whether this development will eventually be rewarded or if the market will continue to shrug it off.” Featured Image from Shutterstock

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S&P 500 Sell Signal May Drag Bitcoin Back Toward Black Thursday Lows

The lingering correlation between Bitcoin and the S&P 500 may be soon coming back to haunt the cryptocurrency market if a chillingly accurate sell signal sends the major US stock index tumbling back towards Black Thursday lows. Could the correlation cause the same for the first-ever cryptocurrency? Bitcoin’s Continued Correlation With the S&P 500 Could Lead to Repeat of Black Thursday Prior to the historic Black Thursday collapse, the S&P 500 and many major stock indexes set a record for a new all-time. Before the quarter ended, however, a record was set for the worst quarterly close in stock market history. At the same time that the S&P 500 was tapping highs, Bitcoin was trading at above $10,000 – a key level said to be the remaining resistance between current levels and a retest of the asset’s all-time high set back in 2017. During that time, Bitcoin price reached $20,000, then later fell to as low as $3,200. Related Reading | Strong Correlation Between Bitcoin and Stock Market May Finally Be Over  The Black Thursday collapse that crushed the S&P 500 also sent Bitcoin tumbling from $10,000 back to under $4,000. There was no escaping the liquidity crisis as the investment community realized a recession was more than likely as a result of the pandemic. Since then, a strong correlation has remained between the S&P 500 and Bitcoin. The major US stock index and the leading cryptocurrency by market cap both have made a sharp, V-shaped recovery – a sign that often indicates a bottom is in. Is The Recovery In These Two Markets Sustainable With Stimulus? Fears of a false bottom are mounting, however, and an accurate sell signal triggering on the S&P 500 may cause another retest of Black Thursday lows, or worse. And due to the correlation that Bitcoin continues to share with the index, any downside in the stock market could spill into the cryptocurrency yet again. Economic stimulus packages have kept stock valuations high, and stimulus checks have provided investors with additional funds they don’t mind risking on crypto assets like Bitcoin. Related Reading | New COVID-19 Lockdown Proposal Poses Unique Threat to Bitcoin’s Ongoing Momentum While all of this has helped the S&P 500 and Bitcoin’s recovery from lows, it may not be enough to keep markets afloat for the long term. Uncertainty surrounding any economic reopening plans are leaving investors skeptical about returns, and fears of inflation are causing investors to rethink their holdings. This could benefit Bitcoin as the asset becomes more looked at as a hedge against inflation like gold, but for now, the cryptocurrency remains more correlated to stocks than the precious metal market. In the chart above, however, it is clear that Bitcoin goes through periods where it is correlated with the S&P 500, and other times when it is not. After spending a few weeks now anticorrelated against the stock index, the correlation appears to be returning and it could spell disaster for the first-ever crypto asset. Making matters worse, the TD Sequential indicator has issued a 9 sell signal on the S&P 500.  This incredibly accurate signal has worked well in crypto markets, but was designed by traditional market timing wizard Thomas Demark. If the setup confirms, and the S&P 500 dumps, BTC could be in trouble.

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Mysterious Bitcoin Whale Who Kickstarted Previous Crashes Appears Again

Blockchain data has revealed that a mysterious Bitcoin whale that’s transacted over $350 million worth of BTC has just received a large sum of supply. Data also shows that each time this wallet has received a large sum of Bitcoin, a massive selloff follows. Will this latest transaction lead to yet another catastrophic collapse across the crypto market? BTC Outflow Reveals Large Wallet Refuels, Past Top Ups Coincide With Drawdowns Thanks to the transparency that blockchain provides, crypto analysts are always paying close attention to the inflows and outflows of Bitcoin. This BTC can be seen flowing into or out of exchanges, and even an individual’s wallets. And while we don’t always know who the individual is behind each wallet, often information can be gleaned that may explain any intent behind the transaction. Related Reading | S&P 500 Crash Resembles Illiquid Altcoin Crypto Whale Dump This intent could be moving to another wallet for long-term storage, or to a crypto exchange in preparation to be market sold onto unsuspecting buyers expecting a new bull market. Recently, a 50 BTC transaction from an extremely old wallet set the crypto community abuzz with speculation. And although the funds never were sold, trigger-happy crypto investors panic sold Bitcoin fearing the worst. How will they respond then, when they realize that a mysterious Bitcoin whale wallet associated with transactions that coincide with enormous selloffs may have just reloaded their cannons? These are the times that the $BTC wallet (3PzdbAwvDJ1MiE87J468MQHtK1CjBbhi8y) received supply. Last time was today. Draw your own conclusions. pic.twitter.com/aZX33uAOzs — il Capo Of Crypto (@CryptoCapo_) May 29, 2020 Is A Mysterious Bitcoin Whale About To Dump On The Crypto Market? According to blockchain data, a mysterious whale that has moved an grand total of 39901 BTC throughout the wallet’s existence, has just topped up its account. While this isn’t frightening in and of itself, the fact that the same data from the wallet shows that each time this wallet has added more Bitcoin, a powerful drop and market crash followed. Related Reading | Number of Bitcoin Whales Hits Previous Pre-Bull Run Level  The first large delivery of BTC that is assumed to have been later dumped, may have caused the post-Bakkt launch September 2019 crash. A $2,000 price drop resulted. The next major BTC sum arriving, coincided with the October 2019, record-breaking pump turning into a severe dump. As Bitcoin price appeared to be establishing a bottom in November 2019, another push downward happened following the next BTC transaction. The pattern continued, this time just ahead of the historic Black Thursday market crash. It’s now happened again, twice, as Bitcoin approaches its strongest resistance yet. This whale seems to be working to ensure that this repeatedly tested $10,000 resistance level isn’t breached and has possibly used over $375 million worth of BTC to do so. Will this whale run out of ammo or begin to hold Bitcoin instead?

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Over 120 Billion Idle XRP Tokens Moved: Volatility Is Near

Ripple’s XRP token is going through a stagnation phase without giving any clear signs of where it is headed next. The cross-border remittances token has been contained in a narrow trading range since May 11. This area is defined by the $0.19 support and the $0.206 resistance level. XRP Consolidates Within Narrow Trading Range. (Source: TradingView) Despite the low levels of volatility, on-chain metrics suggests that a significant price movement is underway. Volatility Is Set to Strike Back Ever since the peak of April 30 when XRP went up to $0.236, its on-chain volume appears to have leveled off, based on data from Santiment. Since then this gauge has been steadily declining even though the price of this altcoin remains consolidating. The divergence between price and volume can be seen as a negative sign. It may indicate that momentum for a bearish impulse is building up slowly. But before jumping into any side of the trend, one must wait for either support or resistance to break first. XRP On-Chain Volume. (Source: Santiment) Santiment’s token age consume chart reveals that a period of high volatility is coming soon. This fundamental indicator shows the ratio between the number of coins changing addresses at a given date and the time since they were last moved. The movement of old coins does not necessarily mean that XRP will break out of the ongoing consolidation phase. However, there is a high probability that this will happen based on the price history of the past three months. Following the 50% nosedive XRP took between March 12 and 13, for instance, more than 110 billion idled tokens were moved to different addresses. Subsequently, this cryptocurrency shot up over 40%. Then, on April 7, roughly 45 billion old tokens changed hands, leading to a 15% retracement. A similar event took place twice between April 21 and May 1, which adds credence to the predictive power that this metric has over XRP’s wild price movements. Now that more than 120 billion idled XRP tokens were moved to different addresses in the past few days and history could be about to repeat itself. XRP Token Age Consumed. (Source: Santiment) XRP Trades Within a No-Trade Zone The area between the support and resistance levels previously mentioned is a reasonable no-trade zone since it is nearly impossible to estimate the direction of the next significant price movement. When considering the Fibonacci retracement indicator, however, the no-trade region is defined by the 61.8% and 78.6% Fib. A daily candlestick close below or above this area will be critical to determine where the international settlements token is headed next. On the downside, the next important support levels to watch out for after moving past $0.19 are represented by the 50% and 38.2% Fib. These support barriers sit at $0.17 and $0.16, respectively. XRP On the Cusp of a Major Price Movement. (Source: TradingView) Conversely, a bullish impulse that allows XRP to break above the $0.206 resistance may see it aim for late April’s high of $0.236 or the 127.2% Fib at $0.27. With another Bitcoin halving written in the history books, the cryptocurrency market might be on the cusp of its next bull cycle. For this reason, it is important to remain cautious and wait for confirmation before entering any trade. Featured Image from Unsplash

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Cardano Shakes the Ghost of Disappointment With Confirmed Shelley Release Date

Cardano holders celebrated last night as CEO Charles Hoskinson released details of a rollout plan culminating with the launch of the Shelley mainnet on July 29th. When Shelley? Here you go pic.twitter.com/wW08DOFstW — Charles Hoskinson (@IOHK_Charles) May 28, 2020 The Shelley era aims to decentralize the Cardano network by way of operating through independent network node operators. But it’s been a long and drawn-out process to date. Numerous delays over the years have brought waves of criticism, as well as personal attacks against Hoskinson himself. Not so long ago during an AMA, Hoskinson took the bait which resulted in him responding with a “f*ck you” during the stream. Since then many have questioned Hoskinson’s professionalism and ability to run a multi-billion dollar project. However, yesterday’s announcement represented a victory for Cardano and goes some way in absolving the delays experienced to date. Cardano aims to Get it Right First Time The Cardano project has often been likened to a tortoise, as in slow and steady wins the race. But the thoroughness of Cardano’s scientific philosophy is at the same time its greatest weakness. “Good software needs accountability, clear business requirements, repeatable processes, thorough testing and tireless iteration.” With that, Hoskinson has on many occasions justified this approach by focussing on the objectivity that results from using a scientific approach. This, he believes, is the best way to go about developing cutting edge technologies. More recently, Hoskinson directly addressed community concerns over further delays during an AMA. The half-hour-long video reiterated his belief in the scientific process. “The point of science is to remove human beings from the process, and to follow a systematic way of thinking so that you can resolves problems.” But more than that, Hoskinson spoke passionately about why this would help Cardano steal a march over its competitors. “We’d be just one voice among the 3,000 that are speaking. And how do we get ahead? Cardano was a project that said it would bear the burden of scientific due dilligence on the entire industry.” Hoskinson then said this approach requires a position where nothing is assumed, where basic fundamentals are re-examined, pulled apart, re-engineered and re-imagined. But doing this takes time. “We will start from ground, from first principles in 2015. What is a ledger? What are the accounting models? How do you write a smart contract programming language? What requirements must it have? Now this process is methodical and slow. Everybody knew that going into it.” ADA Puts in Top Performance Out of the large caps, Cardano’s native token, ADA is today’s biggest gainer having spiked 15% on the Shelley mainnet news. Currently, its priced at $0.064, having undergone a slight retracement from its $0.068 peak. Cardano daily chart with Ichimoku indicator and volume. (Source: tradingview.com) Analysis of the price action shows that ADA had already broken key resistance at the $0.055 level in the week before the Shelley mainnet announcement. Yesterday’s spike brought it closer to contention with the mid-February (pre-pandemic) YTD peak of $0.072. Using Ichimoku cloud analysis the outlook appears bullish. The daily chart shows a conversion line (blue) above the base line (purple), with the lagging span (black) and price way above the cloud. This is a pattern repeated on the shorter hourly and four-hourly time frames as well. What’s more, rumors of an imminent Coinbase listing could be factors to the bullish price action. There’s been talk of a Coinbase listing for at least two years now. But with a confirmed date for the Shelley mainnet, could it finally happen?

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