Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears, Cardano’s Shelley Launches

Another week, another round of Crypto Tidbits.

It’s been an explosive week for the Bitcoin and crypto market, to say the very least. Bitcoin surged from under $10,000 to as high as $11,500 this week. Over the past seven days, the asset has gained approximately 20% — the best weekly performance in many months.

Chart of BTC's price action over the past two weeks from TradingView.com

Bitcoin’s recent price action comes as a breath of fresh air for crypto traders, which had to deal with BTC flatlining in the $9,000s for around two and a half months. The leading crypto asset is attempting to pass the local highs of $11,500 as this article is being written.

Despite the strength of the breakout, Bitcoin’s macro volatility indicators remain at historically low levels. This may suggest, according to Bitazu Capital’s Mohit Sorout, that BTC has room to rally to the upside as ongoing volatility seems to be favoring bulls.

This latest rally in the crypto market has brought Bitcoin above the pivotal $10,500 resistance. $10,500 marked the top of three separate Bitcoin rallies over the past year, suggesting it is of utmost importance for bulls to hold.

This article will be released shortly after BTC closes the monthly candle for July. Analysts say that if Bitcoin can hold either $10,500 or $11,500 after that close, it is in an extremely good spot on a macro time scale. For context, Bitcoin closing above $11,500 would mean that BTC is at one of the highest levels (from a monthly candle perspective) since the $20,000 highs.

Bitcoin has actually been one of the best-performing cryptocurrencies of the past week as it being volatility has favored growth in major cryptocurrencies over smaller altcoins.

Ethereum, too, has done extremely well. It now trades at $345 — just shy of 2019’s high and up approximately 50% in the past two weeks alone.

Chart of ETH's price action over the past two weeks from TradingView.com

Some say that capital is cycling from hot DeFi tokens like Chainlink and Aave’s LEND to Ethereum and Bitcoin, hence their relative rallies.

Prominent investors in the space expect more upside for the crypto market. Speaking with CNBC on Tuesday, Galaxy Digital’s Mike Novogratz said that BTC is on track to hit $20,000 this year. Referencing how the narrative and how capital is shifting towards scarce assets likely in response to the Federal Reserve:

“A lot of that retail interest shifted to the story stocks, to the tech stocks, because they were just more fun … Yesterday you saw a lot of money shift back over to gold and bitcoin. There’s an adoption game in bitcoin that you don’t have in gold. But I like them both.”

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

Crypto Tidbits

• All PlusToken Administrators Have Been Arrested: According to Chinese crypto insider Dovey Wan, the founding partner of Primitive Ventures, all members of the PlusToken leadership team have been apprehended by authorities. PlusToken is the multi-billion-dollar crypto scam that managed to accumulate billions worth of Bitcoin, Ethereum, and other digital assets in early 2019. Wan wrote on the arrests:

“27 core PlusToken team members are all arrested by Chinese police, the biggest crypto scam in the history so far, $3B worth of crypto is scammed… there are a series of legal enforment actions in past 12 months as it’s core team are all over the world took quite a while.”

• SEC Warns of ICO Scams: Earlier this week, the New York office of the SEC wrote: “Be aware of potential scams involving Initial Coin Offerings.” Attached to this message was an investor alert from 2017, which warns of “potential scams involving stock of companies claiming to be related to, or asserting they are engaging in, Initial Coin Offerings (or ICOs).”
• Cardano Shelley Launches: Blockchain founder Charles Hoskinson revealed that Cardano’s Shelley upgrade came through this week. The founder is optimistic about the growth projects of his brainchild, writing:

“This time next year I predict there will be hundreds of assets running on Cardano, thousands of DApps, tons of interesting projects and lots of unique use and utility. 2021 is going to be so much fun watching Cardano grow and evolve. The community is definitely ready to innovate.”

• Ethereum 2.0 Testnet Validator Launchpad Launched: This week, the Ethereum Foundation, working in collaboration with ConsenSys and Deepwork Studio, released the official ETH2 Validator Launch Pad. The tool will allow users with 32 ETH to more easily stake their coins, to earn rewards and contribute to the Ethereum ecosystem.

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Crypto Tidbits: Bitcoin Explodes Past $11k, Ethereum 2.0 Nears, Cardano's Shelley Launches

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Coinbase Takes DeFi Focus as it Looks to List 19 New Crypto Assets

One of the biggest crypto narratives over the past few months has been decentralized finance — better known as “DeFi.” Coins pertaining to this segment of the blockchain space have gone parabolic and users of DeFi protocols have shot up.

Coinbase, seemingly, is taking notice.

The leading crypto-asset exchange announced that it is looking to add 19 altcoins in the near future. Much of those tokens are DeFi related.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

Coinbase Is Looking to List 19 New Tokens — Many of Which Are DeFi

According to a Coinbase blog published on July 31st, the company is looking to add 19 digital assets. “As part of the exploratory process customers may see public-facing APIs and other signs that we are conducting engineering work to potentially support these assets,” the company wrote on its efforts to support these assets.

The cryptocurrencies listed by Coinbase in this announcement are as follows:

• Ampleforth
• Band Protocol
• Balancer
• Blockstack
• Curve
• Fetch.ai
• Flexacoin
• Helium
• Hedera Hashgraph
• Kava
• Melon
• Ocean Protocol
• Paxos Gold
• Reserve Rights
• tBTC
• The Graph
• THETA
• UMA
• WBTC

Some of these cryptocurrencies, including Curve (CRV), are not yet live on their respective blockchains.

Coinbase claims that this latest announcement is aligned with their long-term goal to support a swath of cryptocurrencies:

Coinbase’s goal is to offer support for all assets that meet our technical standards and which comply with applicable laws. Over time we expect our customers around the world will have access through Coinbase platforms to at least 90% of the aggregate market cap of all digital assets in circulation.

Logos of crypto assets that Coinbase intends to add in the coming months (Source: Coinbase).

To confirm the cryptocurrencies listed will be launched, Coinbase says it will be assessing “factors like security, compliance, and the project’s alignment with our mission of creating an open financial system for the world.”

Related Reading: Unexpected Factor That Suppressed BTC Bulls in 2019 Is Now Gone

Coinbase Is Looking to Go Public

Coinbase’s listing spree (or planned listing spree) comes as the company is looking to go public on American stock exchanges.

Per Reuters, three “people familiar with the matter” have confirmed that Coinbase is looking to undergo a stock market listing that may take place this year.  Coinbase has purportedly been in talks with investment banks and law firms to establish a plan for this listing.

Analysts say that the crypto unicorn’s public listing intent is positive for the underlying industry. Chris Burniske, a partner at Placeholder Capital, commented:

“[An IPO] may even come in 2020 and be this cycle’s kickoff catalyst, with DeFi providing the narrative and fundamentals. 2017’s catalyst was the Winklevoss BTC ETF garnering attention and then getting rejected, shifting interest to ETH, with ICOs the narrative.”

When exactly the public listing comes to fruition, though, is not yet clear.

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

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On-Chain Analyst: Bitcoin’s Next True Bull Trend May Not Start Until Q4 2020

Bitcoin’s price is currently flashing signs of immense strength as it navigates up towards the resistance found within the mid-$11,000 region.

The slight uptrend seen today that came about after it dipped to lows of $10,800 has allowed it to push against its 2020 highs of $11,400, and it does appear that further upside is imminent.

Although it does appear that BTC could be positioned to enter a full-fledged bull run in the near-term, on-chain data suggests that it may first consolidate for a short period before it can begin its next true bull run in Q4 of this year.

The analyst who theorized this possibility also notes that this bull trend will likely extend into 2021 before faltering.

Bitcoin Flashes Signs of Strength as Traders Target $12,000

At the time of writing, Bitcoin is trading up over 1.5% at its current price of $11,270. This is around the price at which it has been trading throughout the day.

Earlier this week, the cryptocurrency rallied as high as $11,400 before its rally began slowing.

From this point, it entered a consolidation phase within the lower-$11,000 region before starting to push higher today.

This ongoing uptrend has come about as a result of the bullish reaction it posted to its dip to $10,800 overnight.

Buyers ardently defended this level against being broken, subsequently catalyzing a strong rebound.

Despite facing some harsh resistance around $11,400, a break above this level could be all that is needed to spark a sharp upwards movement that sends it up past $12,000.

This On-Chain Indicator Suggests Next Bull Run Will Begin in Q4 2020

One on-chain analyst explained in a recent tweet that Bitcoin’s 365-day RSI indicates that the crypto is still in the very early phases of its next bull trend.

As such, it may be several months before it can enter into its next firm parabolic uptrend, which he believes will begin in Q4 of this year and extend into the early part of Q1 2021.

“365 day on-chain RSI (private chart not yet publicly available) shows the compression at the early phase of the bull cycle nearing completion, I’m expecting RSI expansion that typifies the main bull season run starting Q4 2020 into 2021. (“main bull phase” labeled in the chart).”

Image Courtesy of Willy Woo.

As Bitcoin’s fundamental and technical strength continue mounting, bulls are laying the groundwork for the crypto to see a positive second half of 2020.

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Silver Fractal: Are Crypto Altcoins On the Cusp of an Explosive Surge?

A fractal has been discovered in silver and altcoins that mimics the early days of Bitcoin. Silver is already on the move, starting to follow the fractal, but the crypto market is lagging behind. If – like Bitcoin has followed gold – altcoins continue to follow silver, an explosive surge is just around the corner.

Fractal Foretells Explosive Breakout in Altcoins Based on Early Days of Bitcoin

According to a fractal discovered by one crypto analyst, both silver and the total altcoin market cap appear to be mimicking early Bitcoin. Notably, the two assets classes are following the path of Bitcoin’s bear market bottoming process that took place from 2015 through 2016.

Altcoins and silver have remained in a similar sideways accumulation range, where investors may have been loading up on the scarce assets ahead of a markup phase.

Related Reading | Are Altcoins Silver To Bitcoin As Gold? Unusual Crypto Correlation Discovered

The same sort of bottoming pattern also played out in the gold market, and the asset not only has been in an increasingly strong uptrend, but it has recently set a new all-time high.

If the assets do continue to follow the original crypto asset’s bear market bottoming fractal, as soon as the range is broken, an explosive pump takes place next. Silver just had its surge, nearly doubling in value over the last month. Is it now altcoins time to shine?

XAGUSD / Total 2 (Alt Market Cap) / BTCUSD Historic Fractal Comparison | Source: TradingView

Will Crypto Follow Silver and Gold As The Fractal Suggests?

Fractals are repeating patterns that play out in price charts of financial assets like crypto. However, they are a polarizing topic in the trading world. Some analysts claim fractals only cloud judgment, while others give ample credence to the repeating patterns.

These repeating patterns are found all over nature, in everything from snowflakes to the veins of leaves, and are often based on geometrical shapes and Fibonacci ratios. Geometrical shapes drawn on price charts can tip traders off to future price action, while Fib ratios can act as levels of support and resistance.

Related Reading | Silver & Gold: Precious Metals Tapping New Highs Bodes Well For Crypto

No one truly understands what dynamics are at play that causes all of this to occur, but it can be used by analysts in various ways with interesting results.

Experts like Thomas Bulkowski have endlessly studied the results of these geometrical patterns and developed a set of statistics that can be used to temper expectations. Others, like William Delbert Gann, believe the patterns have more to do with the precise angles coinciding with other factors, like time.

Whether or not this silver and altcoin following Bitcoin fractal is valid or not, will only be known in hindsight. For those considering crypto or the shining precious metal, is this an opportunity you really want to miss?

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As Bitcoin Pushes $11,500 Top, Funding Rates Drop: Why This Is Bullish

Earlier this week, Bitcoin topped out at $11,500 — a historically important price point. The leading cryptocurrency proceeded to drop by approximately 7% to $10,600 in the 24 hours that followed the high.

After consolidating between $10,800-11,200, Bitcoin is breaking higher once again. Just minutes ago, BTC pierced $11,400 for the first time since the aforementioned highs.

Chart of BTC's price action over the past few days from TradingView.com

While some are fearing a similar rejection to the one Bitcoin faced earlier this week, derivatives data shows that BTC is now in a healthier position. This means that BTC may be able to move above $11,500 for the first time in approximately a year.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

Bitcoin Derivatives “Healthier” Than Last Time BTC Hit $11,500

When Bitcoin was rallying earlier this week, a problem that many analysts discussed was the high rates of funding Bitcoin futures owners were paying. Funding is the rate that long positions pay short positions in a perpetual swap market to normalize the price of the contract to the price of the underlying contract.

High rates of funding indicate that buyers of a perpetual swap are overextended compared to bears. High rates of funding are often seen before the price of the contract correct, just as Bitcoin did on Monday and Tuesday.

But things have changed since Monday and Tuesday. According to a funding rates dashboard shared by a trader, funding rates are now normalizing towards base levels around 0.01% every eight hours.

Table of BTC's funding rates across top perpetual swap futures markets. Data shared by Byzantine General (@Byzgeneral on Twitter).

Most perpetual swap markets, like those on Binance and BitMEX and ByBit, have reached levels suggesting buyers are only slightly outweighing bears.

This indicates that Bitcoin has room to move higher.

Related Reading: Unexpected Factor That Suppressed BTC Bulls in 2019 Is Now Gone

$12,000 Imminent?

As long as Bitcoin moves above $11,400 and $11,500, analysts think that a move to $12,000 is imminent.

Kelvin Koh, a partner at The Spartan Group and former partner at Goldman Sachs, wrote on July 31st:

“If $BTC breaks the resistance at $11.4K, we are going above $12K in no time. Will take the wind out of alts again short term.”

This has been echoed by other analysts. As reported by NewsBTC, the same trader that predicted Bitcoin would bottom at $3,200 in 2018 said:

“$btc consolidating above a pretty key breakout level. price contracting, volume declining, seems bullish, continuation soon.”

He thinks that BTC will soon hit $12,000.

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

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Bitcoin is Flirting with a Fresh Bull Break – And It Could Devastate Altcoins

Bitcoin is now flashing some immense signs of strength as its price pushes up towards its yearly highs of $11,400. This comes as Ethereum, and many other major altcoins, also build technical strength.

This ongoing uptrend is being driven by massive inflows of buying pressure that are helping to degrade the resistance established throughout the mid-$11,000 region.

Analysts believe that this could mark the start of the next leg up, which could send BTC to $12,000 or beyond.

This potential leg higher could devastate altcoins, according to one respected fund manager, who claims that a move towards $12,000 could be imminent if BTC breaks above $11,400.

Because Ethereum has been providing Bitcoin with some guidance in recent weeks, ETH may be immune from any type of BTC-induced downtrend.

Bitcoin Flashes Signs of Strength as Analysts Watch for a Move to $12,000

At the time of writing, Bitcoin is trading up over 2% at its current price of $11,350. This marks a notable surge from daily lows of $10,800 that were set yesterday evening when bears attempted to invalidate BTC’s uptrend.

The strong support that bulls were able to build around these lows helped to absorb the selling pressure and subsequently allowed the crypto to rally higher.

It is now pushing up against its key resistance within the mid-$11,000 region, which may be difficult for buyers to surmount in the near-term.

One factor to consider that could have implications for Bitcoin is the massive influx of buy orders that have been backing this latest push higher.

While speaking about this, one analyst offered a chart showing that BTC is breaking out of a bull flag.

“Bitcoin 4 hour – Flirting with a new leg up,” he explained in a recent tweet.

Image Courtesy of Big Cheds. Chart via TradingView.

If this resistance is shattered, BTC will likely break into the lower-$12,000 region before facing another influx of selling pressure that slows its ascent.

BTC’s Next Rally Could Crush Altcoins – Claims Fund Manager 

While speaking about Bitcoin’s near-term outlook, one well-respected fund manager explained that he believes a BTC movement past $11,400 is imminent.

He reckons that this will likely send the benchmark digital asset towards $12,000, with this next leg up delivering a major blow to altcoins.

“If BTC breaks the resistance at $11.4K, we are going above $12K in no time. Will take the wind out of alts again short term.”

How the cryptocurrency trades in the coming hours as its monthly candle close approaches should provide valuable insight into where it will trend in the coming weeks.

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Why Was The Official Apple Twitter’s Only Tweet Ever About Bitcoin?

Oddly enough, Apple is known for never using its official Twitter account to market its flagship iPhone or Mac computers. However, the one tweet the account has ever made was directly about Bitcoin to its more than 4.6 million followers.

Comparing Apples To Oranges, And a Computer Firm To Crypto

Bitcoin was created by the pseudonymous Satoshi Nakamoto sparking an entire industry of competitors. Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne, and like the cryptocurrency is the leader in its space.

Apple also sparked a sea of competitors and knock offs, much like what has happened with the emergence of altcoins.

Related Reading | Why Apple Won’t Reveal Crypto and Bitcoin Support at iPhone 12 Event

But Apple is a company, led by executives and featuring everything from a full marketing arm to a research and development department. There’s constant productivity pushing innovation and adoption of their products forward. None of this exists for Bitcoin.

While both Apple and Bitcoin both have an official Twitter account, Apple’s strangely has never been used to tweet to market its products.

It was used, however, to bring publicity to Bitcoin. But it is not in the positive way you might expect.

Why Did The Tech Brand’s Official Account Tweet About Bitcoin?

The reason Bitcoin was mentioned in the official Apple account’s only tweet, was because it compromised by a hacker.

The hacker then posted a BTC address, along with the commonly seen cryptocurrency scam requesting a sum of crypto is sent for double the amount in return.

Celebrities are usually impersonated for such tactics, using other accounts designed to mimic the likes of Elon Musk or President Trump. But in this case, the hacker was able to gain control of not only Apple’s official account, but accounts of public figures, musicians, and politicians.

Related Reading | The Most Common Bitcoin Scams And How To Avoid Them

Jeff Bezos, Joe Biden, Kim, and Kanye were among those who had their accounts hacked.

A 17-year old Tampa teen was responsible for the attack, who was recently detained by authorities. He’s now facing a full slate of charges including one count of organized fraud, 17 counts of communications fraud, one count of fraudulent use of personal information with over $100,000 or 30 or more victims, 10 counts of fraudulent use of personal information, and one count of access to computer or electronic device without authority.

Although the suspect is a teen, the court system plans on charging him as an adult if allowed due to the crime being monetary related.

Over $120,000 in BTC was transferred to accounts controlled by the hacker. There are several similar scams to watch out for. Be sure to check out our list of the most common Bitcoin scams and how to avoid them.

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This Indicator Suggests Ethereum is on a “Moon Mission” with a Target of $460+

Ethereum has been seeing some incredibly strong price action throughout the past several weeks, and there’s no end in sight to its ongoing uptrend.

The cryptocurrency is currently reaching up towards a key high time frame resistance level that analysts have been closely watching for quite a while, but the overtly bullish market structure formed in recent times will likely be enough to propel it over this level.

One analyst is pointing towards the crypto’s decisive break into its Ichimoku Cloud resistance as a factor that could help propel it higher.

He notes that this pattern suggests that a move up towards a minimum of $460 is imminent in the coming weeks.

The same trader also notes that it has yet to flash any bearish divergences yet – which is a testament to its current technical strength.

Ethereum’s Market Structure is Firmly Bullish as Analysts Eye Near-Term Upside

At the time of writing, Ethereum is trading up over 3% at its current price of $346. This is around the price at which it has been trading at throughout the past several hours.

The reason why it is struggling to extend its daily upswing much further is because of the heavy resistance around $350.

This has long been a level watched by analysts, as it has historical significance.

Despite not being able to breach this level yet, it is important to note that bulls have guarded against any firm rejection within the upper-$340 region.

This may be a sign that a breakout rally is imminent.

While speaking about Ethereum’s near-term outlook, one popular analyst explained that he is watching for a move up towards $365 in the near-term, followed by a rally past $400.

“ETH: After closing above a long term [S/R] on the 2-day chart. We can go ahead and send ETH to $365. Followed by over $400… which means altcoins can make a run right here as BTC dominance pulls back too,” he explained.

Image Courtesy of Josh Rager. Chart via TradingView.

ETH is Now on a “Moon Mission” as Chances of a Massive Upside Movement Grow

Others are echoing this bullish outlook on Ethereum.

Another respected trader noted that ETH is now trading well-within its Ichimoku Cloud resistance. Because assets typically hit the upper boundary of the cloud once it is breached, it may soon be trading at $460 or higher.

“1W ETH: Price on a moon mission to $460 minimum based on weekly e2e – tk cross flips bull this week – obviously, the important part is the trajectory – no high tf bear divs just yet, which is quite impressive…”

Image Courtesy of Josh Olszewicz. Chart via TradingView.

How Ethereum responds to $350 may have far-reaching implications for Bitcoin and the entire cryptocurrency market.

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Analyst: Watch Which Altcoins Hold Against Bitcoin For Surprising Springboard Recovery

The top two crypto asset by market cap Bitcoin and Ethereum pumping so hard has left the rest of the crypto market in its dust. Even DeFi tokens that had once been hot to trot have plummeted in the wake of this week’s rally.

But one crypto analyst claims its wise to pay close attention right now to how certain altcoins hold up to the rally in majors, as they may be the top-performing assets once the top two titans cool off.

Bitcoin, Ethereum, and XRP Break Out, Crushing Small-Cap Altcoins In Their Wake

Bitcoin and altcoins have an unusual relationship. Occasionally, the assets all rise together in the same tide, while other times they show an inverse relationship.

When major crypto assets all rally together, it can often be disastrous for riskier, smaller-cap, and mid-cap altcoins. That’s exactly what happened this week when Bitcoin, Ethereum, and XRP began soaring.

Bitcoin broke above $10,000 and is trading well above $11,000, and Ethereum rallied by almost 50% in a week.

Related Reading | Analyst: Bitcoin’s 20% Surge Ruptured DeFi Boom, Projects Dive 20% or More

XRP, which has been the crypto market’s worst performer two years running, is primed for a major rally and kicked it off with an over 13% return on the week. It even helped the altcoin regain the third-ranked spot in the top ten crypto assets by market cap from stablecoin Tether.

Together, these top three crypto assets absorbed a substantial amount of capital from the rest of the crypto market, fueling the pump. New money also came in, as investors flocked to hard assets like precious metals and crypto as a hedge against inflation.

While Bitcoin and $ETH enjoy their rallies…

Watch which Altcoins are holding up the best, despite money flowing back to $BTC and Large Caps

Those Altcoins are the ones that will springboard the strongest once money flows back into Mid- and Low-Caps#Bitcoin

— Rekt Capital (@rektcapital) July 31, 2020

Analyst: Altcoins Holding Up During Major Crypto Rally Highlight Most Promising Projects

Which altcoins hold up well against Bitcoin and Ethereum during the next few weeks, especially small-cap altcoins, will be the best performers in the new bull market, according to one crypto analyst.

The analyst claims that any altcoins that show exceptional strength and hold their valuations well while majors rally, will be the most likely assets to “springboard” back when Bitcoin, Ethereum, and XRP cool down.

Related Reading | Crypto Analyst Pitches a Case For XRP to Hit $30 By End of 2021

Any small or mid-cap altcoins holding strong against a massive rally in majors will be due to their holders seeing the true, long-term value in the projects or coins. This typically indicates that there’s real merit in the cryptocurrency, and are the likeliest to rise when the full bull market begins.

For example, Ethereum and XRP were once far less than their current valuations, and the initial Bitcoin boom helped propel these assets into the finance industry limelight.

They’ve since become top contenders of their own. And when they do finally pause their current momentum, the next round of top contenders will begin to stand out from the pack.

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What To Expect If Bitcoin Forms Three White Soldiers On Weekly Timeframes

Bitcoin price this week exploded through resistance at $10,000 and blasted to a high of $11,400. The cryptocurrency is now consolidating below that level, gearing up for what one crypto analyst expects to be a follow up nearly one and a half times the size of this week’s rally.

Will the cryptocurrency close a “Three White Soldiers” formation, and if it does, what can be expected for price action in the days and weeks ahead?

Bitcoin Price Weekly Structure Looks Set For Bullish Uptrend Pattern, Claims Crypto Analyst

In response to the United States’ second round of stimulus money flowing into free markets, gold soared to a new record, while silver, Bitcoin, and cryptocurrencies went on a tear.

These hard assets are expected to continue to perform in response to hastening inflation. Cryptocurrencies like Bitcoin are also breaking out from a three-year bear market, providing them with much pent up momentum.

Related Reading | Why Bitcoin Ditching Stock Market Correlation For Gold Is Bullish for BTC

Case in point, BTCUSD rallied over 13% this week alone, after spending nearly three full months consolidating below $10,000. And while much of the push from precious metals and crypto was due to the dollar collapsing and not all due to these assets pumping, most analysts are expecting the uptrend to continue in crypto.

According to one crypto analyst’s “bold take,” they expect Bitcoin to close out this week strong, yet next week much stronger. They see the leading cryptocurrency by market cap performing 1.5 times better than this week, confirming a three white soldiers Japanese candlestick pattern.

But what exactly will the pattern imply if confirmed?

BTCUSD Weekly Three White Soldiers | Source: TradingView

Will Three White Soldiers Form On BTCUSD Weekly Price Chart? What Does This Mean?

Three white soldiers is a bullish Japanese candlestick pattern, where three green candles close in a row, each higher than the next, with similar-sized or increasingly larger candlestick bodies.

Even if the pattern confirms with three candles in a row, due to heavily overbought conditions the fourth candle in the formation is often a pullback. After that, however, three white soldiers would confirm a new uptrend.

The last time such a pattern confirmed, was during the 2019 parabolic rally that took Bitcoin price to $14,000.

Related Reading | Bearish Bitcoin Signal That Preceded 220% Explosion in 2017 Just Flashed

After finally breaking out from resistance near Bitcoin’s bottom, the asset paused, consolidated, and then took off like a rocket ship. The second weekly candle was particularly large after the breakout, matching the rally we’ve seen this past week.

What came next, was another 100% climb before the asset topped out. Another 100% rally from current prices, would take Bitcoin price to a new all-time high.

Three white soldiers are the opposite signal of three black crows. The bearish signal appeared on monthly timeframes following the asset topping in 2019, promoting a new downtrend to follow.

With three white soldiers potentially forming on BTCUSD weekly price charts, will it kick off another explosive uptrend?

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This Indicator Predicted the 2017 and 2019 Bitcoin Rallies; It Just Flashed Again

Bitcoin is currently flashing some signs of strength as it continues consolidating within the lower-$11,000 region.

Overnight, bears attempted to push the digital asset below $11,000, but this dip was met with significant buying pressure that subsequently allowed it to climb higher.

Analysts are widely noting that the resistance found within the mid-$11,000 region remains a crucial hurdle that the cryptocurrency may continue struggling to surmount.

Because BTC is consolidating above its support throughout the upper-$10,000 region, it does seem as though it may be well-positioned to push higher in the near-term.

Its declining volatility also indicates that it may once again be coiling up before it makes a big movement.

One indicator that just flashed is offering bulls with an incredibly positive sign for BTC’s near-term outlook.

This indicator has only flashed twice in the past few years – once before the 2017 bull run and once before that seen in 2019.

Bitcoin is Coiling Up for Another Big Movement as Volatility Dives

At the time of writing, Bitcoin is trading up just over 1% at its current price of $11,250. This marks a notable surge from daily lows of $10,800 that were set yesterday.

The slight uptrend seen today came about close on the heels of that seen by Ethereum. If ETH continues showing strength as it pushes against its key resistance at $350, it may continue providing a tailwind that lifts BTC higher as well.

Despite these tempered signs of strength, it is important to keep in mind that Bitcoin remains caught within a consolidation phase between roughly $10,800 and $11,300.

This has caused its volatility to once again dive – as one analyst on Twitter observed in a recent tweet.

“Interesting how fast they crushed BTC vol; the 1 month ATM already back to levels from two weeks ago.”

Image Courtesy of Alex Krüger.

This Indicator Suggests BTC Is About to Enter a Bull Run

One popular cryptocurrency trader explained in a tweet that an elusive indicator that has forecasted previous bull markets is now flashing again.

This indicator surfaced in late-2017 just before Bitcoin ran to highs of nearly $20,000. It also flashed last year, before the benchmark crypto ran from lows of under $4,000 to highs of $14,000.

The trader explained:

“The supertrend went green on the weekly. Probably no big deal. It’s not like this indicator has marked major macro bull & bear cycles in the past.”

Image Courtesy of Byzantine General. Chart via TradingView.

Bitcoin’s current strength may be enough to guide it significantly higher in the days and weeks ahead.

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Bitcoin Could Hit $12K on Ethereum-Tailing Behaviour: Analyst

• Bitcoin is eyeing a breakout towards $12,000, according to crypto-chart analyst Josh Rager.
• The analogy appears out of Ethereum’s latest upside move from a consolidation range.
• Mr. Rager sees Bitcoin repeating the same bullish action as it trades inside a similar sideways pattern.

Bitcoin is at the cusp of hitting $12,000 in the coming sessions, according to an inter-coin fractal shared by Josh Rager.

The market analyst noted that Bitcoin is almost mirroring the recent price moves of Ethereum, the second-largest cryptocurrency by market cap. Earlier yesterday, the ETH/USD exchange rate broke out of its consolidation range.

Ethereum breaks upward of its sideways consolidation pattern. Source: TradingView.com

The pair rose by more than 6 percent from the point of the breakout.

Mr. Rager spotted BTCUSD in a similar Triangle-like range. He said in a Friday tweet that the cryptocurrency could break above the pattern–just like Ethereum did– and attempt a close above $12,000.

BTCUSD price in the Ethereum-like consolidation channel. Source: TradingView.com

A Bull Triangle

The reason for Mr. Rager’s bullish Bitcoin prediction also resorted to the shape of its current consolidation pattern. It technically resembles a symmetrical triangle, confirmed by its two converging trendlines. It is a continuation pattern that typically sends the price in the direction of its previous bias.

In the current case, BTCUSD was rising before it formed the Symmetrical Triangle pattern. As a result, the cryptocurrency should ideally continue trending upwards upon breaking it. Meanwhile, the length of the breakout should be as much as the maximum height of the Triangle.

BTCUSD symmetrical triangle's upside target is near $12,000. Source: TradingView.com

That is $780, which puts Bitcoin’s next upside target close to or above $12,000.

Pullback Theories

As Mr. Rager and others eye a BTCUSD upside continuation, specific bearish setups are also waiting to pull the rugs under bulls.

For starters, the cryptocurrency continues to feel the selling pressure while trading under a long-term descending trendline. As shown in the chart below, BTCUSD’s latest rally has paused right near the same price ceiling that has been holding it from logging a full-fledged breakout since December 2017.

BTCUSD bulls remain capped under the red trendline. Source: TradingView.com

On a macro front, the latest signals show that Bitcoin may continue its upward moves in the coming sessions ahead.

The Federal Reserve’s decision to keep its interest rate near zero, as well as to continue its bond-purchasing program until December 31 may send investors looking for safety in Bitcoin, a perceived anti-inflation asset.

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Digitex Futures Zero-Fee Bitcoin Futures Exchange Now Open to the Public

Digitex Futures, the Seychelles-based cryptocurrency startup has announced the much-anticipated public launch of its Bitcoin Futures exchange on July 31 following months of extensive testing. Since the launch of its mainnet, Digitex Futures has been gradually adding more traders enabling them to experience the platform and also provide any feedback that can be used for further improvement.

Now, with the public launch, anyone can create an account on Digitex Futures and start trading at zero fees. The number of markets available on the platform is currently confined to just one – BTC/USD perpetual swap, with more expected to be added soon. According to Digitex Futures, its ETH/USD perpetual swap is already available on the testnet and there are plans to introduce other crypto markets as well as traditional markets like oil, gold, and S&P 500.

Explaining the decision to start with just the Bitcoin market, CEO of Digitex Futures Adam Todd said, “I wanted to concentrate all the liquidity on one popular market to give us the best chance of getting the volume cranking, and that’s exactly what we’ve achieved.” Further adding, “now we’ve launched the world’s first sustainable commission-free bitcoin futures exchange and we’re getting ready to add traditional markets as well, to be the first crypto exchange to give traders exposure in these areas and constantly innovate in the market.”

So far, Digitex Futures’ launch plan has been successful as its 24-hour trading volume has already hit over $2.4 billion. Apart from zero fees, the platform’s design and intuitive user interface are notable features that favor the crypto trading community. Users can sign up easily without having to go through a cumbersome KYC process, benefit from deep liquidity, make use of TradingView charts and graphs and customize their dashboard as per their convenience (which includes four different color schemes). Digitex Futures can be accessed across multiple devices including desktop and mobile phones as long as they are connected to the internet.

Founded by a former futures and betting-exchange trader, the Digitex Futures platform is optimal for day trading scalpers. The zero-fee feature increases the profitability of these high frequency-low margin BTC scalp trades as the platform doesn’t eat into the profits accumulated over multiple trades, which generally isn’t the case with other exchanges.

“Not only do they [other exchanges] eat into your profits but they actually turn them into losses. Digitex is the first exchange that allows traders to keep 100% of their profits with no house edge working against them. I couldn’t be happier to finally share my dream of commission-free trading with the world.”

The Digitex Futures public launch will be accompanied by an all-day trading event with Adam Todd and some of the biggest influencers in the crypto space. The platform will also give away $250,000 worth in its native DGTX tokens along with branded merchandise during the event. In order to participate in the trading event, all you have to do is sign up for an account on the platform on July 31, deposit 1000 DGTX, and maintain the balance throughout the day.

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This Simple Bullish Pattern Suggest Ripple (XRP) Could Surge Above $0.25

Ripple is up over 2% and it is showing positive signs above the $0.2400 resistance zone against the US Dollar. XRP price is likely to accelerate gains if it clears the $0.2500 resistance.

• Ripple price started consolidating gains after it rallied towards the $0.2500 level against the US dollar.
• The price is currently trading nicely above the $0.2400 and $0.2380 support levels.
• There is a key rising channel forming with support near $0.2410 on the 4-hours chart of the XRP/USD pair (data source from Kraken).
• The pair remains well supported on dips and it could surge above the $0.2500 barrier.

Ripple Price Basing for the Next Move

This week, there was a sharp increase in ripple above $0.2320, following bitcoin and ethereum’s rally. The price even surged above the $0.2400 resistance and settled well above the 100 simple moving average (4-hours).

It traded to a new monthly high at $0.2500 and recently started consolidating gains. There was a minor downside correction below the $0.2450 level, but the bulls remained active near the $0.2400 support zone.

XRP even stayed above the 23.6% Fib retracement level of the upward move from the $0.2093 low to $0.2500 high. There is also a key rising channel forming with support near $0.2410 on the 4-hours chart of the XRP/USD pair.

Ripple (XRP) price trades near $0.2450. Source: TradingView.com

Below the trend line, there is a strong support forming near the $0.2380 level. The next major support is near the $0.2300 level or the 50% Fib retracement level of the upward move from the $0.2093 low to $0.2500 high.

On the upside, the price is facing a major hurdle near the $0.2500 level. If there is a clear break above the $0.250 resistance, the price is likely to accelerate higher towards the $0.2550 and $0.2600 levels in the near term.

Downsides Likely To Be Limited in XRP

Clearly, there are many supports for ripple near the $0.2400 level. The main support is now forming near the $0.2300 level (this week’s breakout zone).

If there is a bearish break below the $0.2300 support, there is a risk of a sharp decline and the price might revisit $0.2200.

Technical Indicators

4-Hours MACD – The MACD for XRP/USD is now gaining strength in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for XRP/USD is still well above the 55 level.

Major Support Levels – $0.2400, $0.2380 and $0.2300.

Major Resistance Levels – $0.2500, $0.2550 and $0.2600.

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Ethereum Smashes Another Hurdle: A Strong Case for Upside To $350

Ethereum gained more than 4% and it surged above the $335 resistance against the US Dollar. ETH price traded to a new monthly high at $343 and it could rise further to $350.

• Ethereum started a fresh increase above the $325 and $335 resistance levels.
• The price traded to a new monthly high at $343 and it settled well above the 100 hourly simple moving average.
• There was a break above a crucial contracting triangle with resistance near $320 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is currently correcting gains, but it is likely to rise towards the $350 resistance.

Ethereum Price Gains Bullish Momentum

After a couple of swing moves and a downside correction, Ethereum found support above $315 against the US Dollar. A support base was formed above the $320 level and recently ETH price started a fresh increase.

Ether climbed above the $325 pivot level and the 100 hourly simple moving average to move into a positive zone. As a result, there was a sharp increase and the price climbed above the $330 and $335 resistance levels.

During the surge, there was a break above a crucial contracting triangle with resistance near $320 on the hourly chart of ETH/USD. The pair even broke the $340 level and traded to a new monthly high near $343. It is currently correcting lower and trading below $340.

Ethereum price trades above $242. Source: TradingView.com

There was a break below the $335 level, plus the 23.6% Fib retracement level of the recent surge from the $315 swing low to $343 high. However, the price is now trading near the $330 support area (the recent breakout zone).

The 50% Fib retracement level of the recent surge from the $315 swing low to $343 high is also near the $328 level to provide support. On the upside, ether price is facing a short-term resistance near $335. The main hurdle is now near $342, above which the price is likely to accelerate higher towards the $350 resistance.

Dips Supported in ETH?

If there is a downside extension, Ethereum price might find bids near the $325 level. A downside break below the $328 and $325 levels might start another extended decline.

The next major support is near the $318 level and the 100 hourly SMA, where the bulls are likely to take a strong stand in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is slowly moving into the bearish zone.

Hourly RSI – The RSI for ETH/USD is currently well above the 55 level.

Major Support Level – $330

Major Resistance Level – $342

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Bitcoin Holding Uptrend Support: Here’s Why 100 SMA Could Trigger Fresh Surge

Bitcoin is currently consolidating in a range above the $10,700 support against the US Dollar. BTC is likely to start a fresh surge as long as it is above the 100 hourly SMA.

• Bitcoin is trading in a contracting range above the key $10,700 support zone.
• The price seems to be facing a couple of key hurdles near the $11,200 and $11,250 levels.
• There is a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair must stay above the 100 hourly SMA and $10,700 to start a fresh surge.

Bitcoin Price is Consolidating Gains

After a strong rally, bitcoin price started consolidating gains below the $11,250 resistance against the US Dollar. BTC corrected lower a couple of times, but it remained well bid above the $10,700 support.

It seems like the bulls are protecting the uptrend above $10,700 and the 100 hourly simple moving average. The recent swing low was formed near $10,828 before the price recovered higher. It surpassed the $11,000 resistance, plus the 50% Fib retracement level of the recent decline from the $11,348 high to $10,828 low.

However, the price seems to be struggling to settle above $11,200 and $11,250 resistance levels. There is also a major contracting triangle forming with resistance near $11,240 on the hourly chart of the BTC/USD pair.

Bitcoin price holding $10,700. Source: TradingView.com

The triangle resistance is close to the 76.4% Fib retracement level of the recent decline from the $11,348 high to $10,828 low. A successful close above the $10,250 resistance may perhaps spark a strong surge.

The next major resistance is near the $11,350 and $11,400 levels, above which the bulls are likely to aim an upside break above the $11,500 resistance level in the coming sessions.

100 SMA Holds The Key For BTC

On the downside, the triangle support is near the $10,850 level and the 100 hourly SMA. If there is a downside break below the $10,850 support, there is a risk of more losses.

The main support is near the $10,700 level, below which the bears are likely to take control in the short-term. In the mentioned case, the price may probably start an extended downside correction towards the $10,500 level.

Technical indicators:

Hourly MACD – The MACD is slowly moving back into the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level, with a bearish angle.

Major Support Levels – $10,850, followed by $10,700.

Major Resistance Levels – $11,250, $11,400 and $11,500.

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Bitcoin Must Hold $10,800 to Maintain Bullish Bias—But Will It?

Bitcoin has seen a tumultuous past few days after reaching as high as $11,500 on Monday. In the past 48 hours alone, the asset has whipsawed between $10,600 and $11,400, with bulls and bears attempting to catalyze a range breakout.

Both sides have failed thus far; as of the time of this article’s writing, BTC remains in the middle of the local range at $11,000.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

It may seem that BTC is in no man’s land, but a trader has argued that as long as $10,800 is held, a bullish bias can be held.

Bitcoin Must Hold $10,800 to Hold Bullish Bias: Analyst

According to analyst Edward “Teddy” Cleps, Bitcoin holding $10,800 on the four-hour chart will confirm the short-term bull case.

Cleps cites his custom Secret EMA Cloud, which indicates important technical levels and trends. The indicator accurately predicted the surge from $9,400 to $11,500 last week when BTC broke above the cloud, causing it to flip green.

Bitcoin holding the cloud’s upper boundary in the days ahead should confirm that the uptrend is intact.

The cloud’s upper boundary, denoted by the black line on the chart below, should continue to move towards BTC’s current price as it is an exponential moving average.

Chart of BTC's recent price action with a custom cloud indicator by Edward "Teddy" Cleps (@Teddycleps on Twitter). Chart from TradingView.com

Another level of importance that traders are watching is $10,500.

$10,500 is a level of macro importance for Bitcoin. It marked the top of a BTC rally on three separate occasions: once in October 2019, once in February 2020, and once in June 2020.

To some commentators, BTC must hold above $10,500 when the one-month candle closes in approximately 20 hours after this article’s publishing time.

And according to many analysts, it’s highly probable that it holds.

$12,000 Is Imminent

With the uptrend still intact, analysts are trying to postulate what comes next for BTC.

According to the pseudonymous trader who predicted Bitcoin would bottom 2018’s bear market at $3,200, a move to $12,000 is likely. As reported by NewsBTC previously, this trader wrote in reference to the chart below:

“$btc consolidating above a pretty key breakout level. price contracting, volume declining, seems bullish, continuation soon.”

Chart of BTC's recent price action by trader SmartContracter (Twitter handle). Chart from TradingView.com

What investors do have to watch out for, though, is the high funding rates of Bitcoin and crypto perpetual swaps.

Perpetual swaps are a type of futures contract that is popular in the cryptocurrency industry. Funding is the fee that long positions pay short positions to keep the price of the future close to the price of the underlying asset.

High funding rates often suggest that buyers of perpetual swaps are overextended, leading to short-term corrections where the funding rate normalizes.

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

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Data: Long-Term Bitcoin Investors Holding Strong Despite Latest Rally

Bitcoin’s intense uptrend in recent weeks hasn’t phased its long-term investors, who appear to be holding out for higher prices before they offload their holdings.

Data shows that these investors are not yet selling their crypto and are even adding to their long-term stashes as the crypto’s mid-term outlook brightens.

Their long-term investment approach is highlighted by exchange inflows, which have remained incredibly low despite BTC currently sitting around the highest price level it has seen since the summer of 2019.

Assuming that this trend persists, it could mean that BTC’s ongoing uptrend has room to extend even further, as it may not face any immense influx of selling pressure for quite some time.

Bitcoin Remains Fundamentally Strong Following Latest Rally 

Bitcoin’s intense rally led it up from the lower-$9,000 region to highs of $11,400 in just over a week.

The bulk of these gains came about earlier this week when the push past $10,000 accelerated and turned into a full-fledged uptrend.

Although in months past, all of BTC’s uptrends have been driven primarily by trading on margin platforms, this latest push higher appears to have been driven by the cryptocurrency’s fundamental strength.

One indicator of this is the lack of exchange inflows that have taken place throughout this movement.

According to data from analytics platform Glassnode, exchange inflows remain around their multi-year lows despite the “V-shaped recovery” that the digital asset has seen since hitting its mid-March lows of $3,800.

As seen in the below chart, data also shows that inflows tend to spike right before BTC peaks as well as when it forms a long-term bottom – as seen in July of 2019 and in March of this year.

Image Courtesy of Glassnode.

Because this metric isn’t trending up yet, it could mean Bitcoin has room to run.

BTC’s Long-Term Investors Hold Steady Despite High Prices

Another data metric that points to the fundamental strength currently underpinning Bitcoin is the lack of selling pressure from long-term investors.

Glassnode also offered insight into this in a recent tweet, also explaining that current investors are accumulating over 50k BTC every month.

“Despite BTC’s recent surge to $11k, there are currently no signs of weak hands from long-term investors. Bitcoin Hodler Net Position Change remains positive since the end of March, with hodlers currently accumulating more than 50k BTC each month.”

Image Courtesy of Glassnode.

Because this upwards movement is backed by fundamental strength, it may be far different than those seen in past months.

Featured image from Unplash.
Pricing data from TradingView.

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Why Bitcoin is the Best Insurance Policy For Long-Term Wealth Preservation

Fidelity Digital Assets has released a new report citing the company’s investment thesis for the first-ever cryptocurrency: Bitcoin. According to the finance firm, the crypto asset is an “aspirational store of value.” They also call it an “insurance policy” that may protect wealth against “unknown consequences.”

Here’s why the cryptocurrency acts as the best insurance policy against several potential scenarios that all revolve around long-term wealth preservation.

How Cryptocurrency Stacks Up Side-By-Side Against Gold

Before Bitcoin, there was no other asset like it. Several attempts to successfully create a digital form of currency failed at solving the double-spend issue that Bitcoin eventually overcame.  Satoshi Nakamoto also sought to build a decentralized network underpinned by an asset that mimicked certain aspects of gold.

Related Reading | Gold Rally Peaks: 5 Reasons Bitcoin Will Likely Outperform The Precious Metal

The result is the creation of a non-physical asset that shares several similarities with the precious metal used to preserve wealth for generations. Not only does the cryptocurrency stand toe-to-toe with gold on many of its best features, but BTC was also designed to have benefits beyond what the precious metal offers.

The two assets performed neck and neck for the past two years. It is for all of these reasons combined, that Bitcoin makes for an ideal store of value and long-term preservation of wealth.

BTCUSD Versus XAUUSD Comparison Chart | Source: TradingView

Fidelity: Bitcoin Maturing To Become “Insurance Policy” For Long-Term Wealth Preservation

These two critical factors were recently pointed out in a new report from Fidelity Digital Assets’ new report on Bitcoin.

The firm’s “investment thesis” relies on the asset developing further as a store of value – for now, only being an “aspirational store of value.”

“An emerging store of value grows purchasing power until it stabilizes. The key characteristics that are cited in reference to good stores of value are scarcity, portability, durability, and divisibility,” an excerpt from the report reads.

Chiefly, the report points to digital scarcity as the key component that gives Bitcoin its value as a potential long-term wealth preservation tool. However, the asset protects wealth in the long-term in a number of other critical ways.

Bitcoin existing beyond the reach of third-parties and governments may protect wealth from forms of intervention otherwise possible with today’s national currency system. For example, tax branches freezing assets to cover back-taxes.

Related Reading | How The US-China Capital War a Billionaire Warns Of Could Benefit Bitcoin

The asset may protect from the eventual collapse of the current fiat-based monetary system. Gold used to keep such a system stable, but unpegging the dollar in the 1970s began skyrocketing inflation and gold growing from $30 an ounce to nearly $2,000 today.

According to billionaire hedge fund manager, Paul Tudor Jones, the cryptocurrency reminds him of the role gold played back then. He also says Bitcoin is likely the “fastest horse in the race against inflation.”

Fidelity cites the abundance of fiscal stimulus as a possible catalyst for further BTC growth. Additional points in the thesis outline the potential impact of deglobalization, and a great wealth transfer taking place amidst the pandemic.

Market Cap Comparison | Source: Fidelity Digital Assets

There’s also an argument to be made on potential upside along comparative to other assets. Gold has an $11 trillion market cap. The stock market is $89 trillion. Global real estate tops over $281 trillion.

Bitcoin’s market cap is a meager $200 billion. With only 21 million BTC and trillions of dollars that could flow into the scarce asset, the upside per BTC is incredible. Yet as Fidelity’s report clearly lays on the line, it is only one of many reasons that Bitcoin makes the best “insurance policy” for “long-term wealth preservation.”

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As Crypto Rips Higher, the US SEC Is Warning of ICO Scams Yet Again

It’s been an explosive past few weeks for the crypto market. While much focus has been put on Bitcoin and Ethereum, altcoins have also performed extremely well, with some rallying hundreds of percent or thousands of percent in literal days.

Although much of this growth has been through legitimate projects, the U.S. Securities and Exchange Commission is once again warning of fraudulent ICOs.

Related Reading: Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue

SEC: Be Aware of “Potential Scams” Involving Crypto ICOs

In a tweet published July 30th, the New York office of the SEC wrote: “Be aware of potential scams involving Initial Coin Offerings.”

Attached to the office’s warning was an investor alert from August 28th, 2017 — near the peak of the last ICO boom — written by the SEC’s Office of Investor Education and Advocacy.

Be aware of potential scams involving Initial Coin Offerings: https://t.co/weG4zl8n7F

— SEC New York (@NewYork_SEC) July 30, 2020

The alert, though, is somewhat outdated: it mentions “potential scams involving stock of companies claiming to be related to, or asserting they are engaging in, Initial Coin Offerings (or ICOs).”

From the information NewsBTC has, these scams are not as prevalent as they were in 2017. However, it is still worth keeping one’s head on a swivel, so to say, when dealing with characters purporting to offer ICOs or related investment vehicles.

PBOC Targeting ICOs as Well

The SEC isn’t the only authority to have targeted ICOs over the years.

As reported by NewsBTC last year, the Shanghai branch of the People’s Bank of China warned against cryptocurrency-related speculation through ICOs, IEOs, STOs, and other capital-raising/token distribution methods.

According to a rough translation of that note, the PBOC warned that the sale of tokens for Bitcoin, Ethereum, and other virtual currencies remains “essentially unauthorized illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and illegal fund-raising.”

BREAKING

PBOC Shanghai Head office just made a new regulatory update as

“Strengthen regulation and control, clamp down cryptocurrency trading” pic.twitter.com/zL0BgOJBUF

— Dovey 以德服人 Wan (@DoveyWan) November 22, 2019

This came just a year after the PBOC sent out another warning message about ICOs, in which it stated:

“As of the date of this announcement, all types of token issuance financing activities shall cease immediately. The organizations and individuals who have completed the financing of tokens should make arrangements for repatriation and so on, reasonably protect the interests and properly handle the risks.”

Related Reading: On-Chain Metric Signals the BTC Market Isn’t Overheated: Why This Is Bullish

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This Fractal Suggests XRP is on the Cusp of Seeing a Parabolic Rally

XRP was able to incur some decent momentum earlier this week that sent it into the mid-$0.25 region.

Despite climbing from its recent sub-$0.20 lows, the cryptocurrency’s uptrend is still underwhelming compared to those seen by Bitcoin, Ethereum, and many of its other peers.

The lack of enthusiasm surrounding the embattled token is quite significant at the moment, and it is now struggling to surmount the heavy resistance it faces at $0.25.

Bulls did try to shatter this level yesterday, but their attempt failed and resulted in a somewhat firm rejection.

Analysts are noting that it may not be able to see any strong momentum until this crucial level is broken, which may be an arduous task for XRP’s buyers.

There is one striking fractal pattern that a popular trader recently observed that suggests it could be on the cusp of entering a parabolic uptrend.

Of course, the accuracy of fractal patterns is widely disputed, but historical precedent does suggest that this type of movement could be imminent.

XRP Struggles to Surmount Crucial Resistance as Crypto Market Consolidates

At the time of writing, XRP is trading down marginally at its current price of $0.243. This is around where it has been trading throughout the past couple of days, with bulls being unable to break the resistance at $0.25.

The strong selling pressure found at this level has stopped it from climbing on multiple occasions, leading its price to underperform Bitcoin and most other major digital assets.

Yesterday, buyers did attempt to shatter this level. After breaking and holding above it for a short amount of time, it once again dipped back to $0.24.

One analyst is now noting that he isn’t expecting XRP to see much upside in the near-term due to the resistance at this level.

“XRP / USD: One of the worst looking charts in my opinion, even though we have seen some upside over the past month this really doesn’t matter considering we are yet to break $0.25… This region needs to be taken out and flipped before you can be really bullish, LTF rejecting.”

Image Courtesy of Cactus. Chart via TradingView.

This Fractal Pattern Suggests a Parabolic Move Could be Brewing

Despite its short-term weakness, it is important to keep in mind that XRP’s price action typically moves in parabolic cycles – seeing sharp rises followed by sharp declines.

One fractal shows that the price action seen in recent months is strikingly similar to that seen against its Bitcoin trading pair in the summer months of 2017.

Image Courtesy of il Capo of Crypto. Chart via TradingView.

If this fractal plays out, XRP’s long-held downtrend could soon result in a massive upswing that allows it to recapture much of its recent losses.

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Charts from TradingView.

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