Bitcoin Lacking Bullish Momentum, But 100 SMA Could Trigger Upside Break

Bitcoin price is showing early signs of a bullish break above $10,800 against the US Dollar. BTC could continue higher as long as it is above the 100 hourly SMA.

• Bitcoin is struggling to gain bullish momentum, but it slowly moved above the $10,800 resistance.
• The price is now above the 100 hourly simple moving average, with a major hurdle at $10,920.
• There was a break above a crucial contracting triangle with resistance near $10,815 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could continue to rise towards $11,000 as long as it is above the 100 hourly SMA.

Bitcoin Price is Showing Positive Signs

After multiple tests of the $10,650 support, bitcoin price started an upward move against the US Dollar. BTC was able to climb above the $10,750 and $10,800 resistance levels.

The upward move was such that there was a close above the $10,800 level and the 100 hourly simple moving average. More importantly, there was a break above a crucial contracting triangle with resistance near $10,815 on the hourly chart of the BTC/USD pair.

Bitcoin price is currently struggling to gain bullish momentum above $10,850 despite the recent upside break. A high is formed near $10,855 and the price is currently correcting lower. It is testing the 23.6% Fib retracement level of the recent wave from the $10,687 low to $10,855 high.

Bitcoin price trades above $10,800. Source: TradingView.com

The first key support is near the broken trend line at $10,800. The main support is near the $10,775 level or the 100 hourly simple moving average. It is close to the 50% Fib retracement level of the recent wave from the $10,687 low to $10,855 high.

As long as the price is above the 100 hourly SMA, it could resume its upward move. An initial resistance is near the $10,855 high. The first key resistance is near the $10,920 and $10,950 levels. The main resistance is still near the $11,000 resistance, above which the bulls are likely to take control.

False Break in BTC?

If bitcoin fails to continue higher above $10,855 or $10,950, the recent break could turn out to be a false move. A downside break below the 100 hourly SMA could lead the price below $10,750.

The main support is likely forming near the triangle lower trend line at $10,680. A successful break below the trend line support and $10,650 may perhaps increase the chances of a bearish break below $10,550.

Technical indicators:

Hourly MACD – The MACD is showing a few positive signs in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level.

Major Support Levels – $10,770, followed by $10,680.

Major Resistance Levels – $10,850, $10,950 and $11,000.

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Bitcoin Forms “Obviously Bullish” Divergence as User Count Spikes

Bitcoin underwent multiple rejections in the $11,000 region over recent weeks, suggesting the asset remains rangebound. Fortunately for bulls, there are on-chain trends suggesting that the cryptocurrency is in a bullish state. There are also underlying fundamentals like a commitment to inflation by the Federal Reserve that could spur further BTC purchasing.

Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase

Bitcoin’s On-Chain Trends Suggest the Prevailing Trend Is Bullish

Bitcoin’s recent price action has been cautious at best but analysts seem convinced that the prevailing trend is bullish.

Willy Woo, an on-chain analyst, recently shared the chart below. It shows that the cryptocurrency is seeing a spike in new users (as measured by Glassnode) despite the price of BTC stalling. Woo thinks that this is an “obviously bullish” divergence that may resolve to the upside:

We’re seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn’t happen often. This is what traders call a divergence, in this case it’s obviously bullish.

Adding to this, Woo explained that an influx of on-chain Bitcoin is currently changing hands. This should suggest that there will soon be a bullish reversal as spikes in BTC changing hands have marked trend reversals over the past few months:

“We’re seeing another impulse of coins changing hands completing. My interpretation is that the last pulse was take profit, halting the downward move; this impulse should be the one that drives us upwards.”

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

Fundamental Trends Also Bullish for BTC

Fundamental trends also seem poised to drive the cryptocurrency to the upside.

Dan Tapiero, co-founder of 10T Holdings, Gold Bullion International, among other firms, recently stated that Bitcoin will drive higher due to an influx of global liquidity.

“Massive global liquidity to hit mkts NEXT year. Chart suggests #equity mkt at risk of correction in Q4, then single greatest rally of our lifetime in 2021. Enormous speed and near vertical price increase possible. Might be led by #GOLD this time. #Bitcoin would benefit too.”

While he is bullish on the crypto-asset, Tapiero recently said that Bitcoin is currently irrelevant on a macro scale.

He went as far as to say that Bitcoin’s market capitalization may need to gain upwards of 2,000% before it is considered relevant by “macro authorities.” This may be a good thing as it may not be targeted by regulators until it grows to that point.

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

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Bitcoin's On-Chain Trends Are "Obviously Bullish" Right Now

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Bitcoin “Hodlers” Control 63% of the Total BTC Supply, New Data Shows

Bitcoin’s price action has done little to reassure investors of its near-term outlook, as the cryptocurrency has largely been caught within the throes of an intense bout of sideways trading over the past couple of weeks.

This has led to the formation of a trading range between $10,200 and $11,200, with buyers and sellers largely reaching an impasse as it trades between these two range boundaries.

The cryptocurrency’s trading volume has been diving lower throughout the course of this consolidation phase, which indicates that traders are moving to the sidelines and awaiting directional clarity before diving into positions.

One bullish fundamental trend that bodes incredibly well for BTC’s macro outlook is the massive percentage of the crypto’s total supply that is controlled by long-term investors.

This trend indicates that a small group of active investors and traders are driving the recent volatility, while the cryptocurrency’s base supply remains dormant.

Bitcoin’s Price Stagnates as Buyers and Sellers Remain Deadlocked

At the time of writing, Bitcoin’s price is trading down just under 1% at its current price of $10,750. This is around where it has been trading throughout the past day, as buyers and sellers have both been unable to catalyze any momentum.

This sideways trading has come about due to the formation of a trading range between $10,600 and $10,800.

While zooming out, the macro range that the benchmark digital asset has been caught within has a lower boundary at $10,200 and an upper boundary at $11,200.

Until either of these levels are surmounted, the cryptocurrency’s outlook remains somewhat unclear, although its ongoing consolidation bout beneath its resistance can be interpreted as slightly bullish.

Vast Majority of BTC’s Supply is Controlled by Long-Term Investors 

Analytics platform Glassnode explained in a recent tweet that 63.3% of the total BTC supply has not been moved in over one year. They also note that a shocking 31.4% of the total supply hasn’t been moved in 3+ years.

“Percent of Bitcoin supply that hasn’t moved in… 1+ years: 63.3%  (11.7 million BTC) 2+ years: 44.5% (8.2 million BTC) 3+ years: 31.4% (5.8 million BTC).”

Image Courtesy of Glassnode.

This trend is bullish for Bitcoin because it shows that most of its investor base are taking a long-term approach to their holdings and are unlikely to sell into any upwards movements it sees in the near-term.

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Why Post Debate Stock Market Performance Could Be Bad For Bitcoin

Last night, current United States President Donald J. Trump faced off against former Vice President and challenger Joe Biden in the first of three debates. Data shows, that following each debate, things have turned bad for the stock market, which could, in turn, mean even worse for Bitcoin.

Here’s why the stock market tumbling due to debates demoralizing investors could also spell bad news for the leading cryptocurrency by market cap.

Why The Debate Could Have a Bearish Impact On Bitcoin

Last night, the two top Presidential candidates went head-to-head as the world looked on. The two didn’t do anything to ease the minds of citizens, nor investors.

A “rocky” road to the election is expected to impact Bitcoin and prevent a new all-time high just yet, and last night was a preview as to why.

Neither candidate expects a peaceful transition of power, and already there are questions over the validity of the vote-counting process due to mail-in ballots causing all kinds of issues and turmoil.

Related Reading | Bitcoin Faces Pivotal Quarterly Close, Here’s Why

The uncertainty hanging over political started spilling into markets last night. While the Democratic and Republican leaders debated, the stock market spiked, then the moment the debate ended tanked.

Bitcoin price followed, dropping back down to $10,750, where it currently is attempting to close above the key level ahead of tonight’s monthly close.

This early sign of downward sell pressure due to fear and doubt may just be the beginning of more downside in Bitcoin and the stock market.

BTCUSD Versus S&P 500 Post-Debate Correlation Chart | Source: TradingView

Presidential Showdown Results In Stock Markets Taking A Beating

As depicted in the chart above, the blue line representing the S&P 500 stock market index, began plummeting just as the debate came to a close. Bitcoin’s fall started shortly before that, as the higher risk asset class likely began to feel the pressure of the debate sooner.

The two assets are back trading as tightly correlated as ever, despite constant talk from crypto’s brightest minds expecting a decoupling of the crypto asset from traditional markets any day.

But data shows that post-debate, markets turn down due to the ongoing uncertainty over which candidate’s campaign will ultimately win.

Related Reading | Bitcoin Descending Triangle Hints At Third Downtrend Before Bear Market Finish

According to Ryan Detrick, chief strategist at LPL Financial, the S&P 500 historically posted declines across 5-day, 10-day, and one-month periods following each debate. With only the first of three debates beginning last night, the stock market could be in for a bumpy ride ahead. And due to the ongoing correlation with Bitcoin, the high-risk cryptocurrency market could take another hit.

If it doesn’t, however, the decoupling analysts are calling for will finally come to fruition, and Bitcoin shining while stocks tank, could be just another catalyst that fuels the cryptocurrency’s next bull market – which could be here as soon as the election is over.

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Maker (MKR) Surges 7% as Stability Fees Introduced, DeFi Regains Footing

While decentralized finance (DeFi) has seen a strong surge in 2020, Maker (MKR), a token strongly tied to DeFi, has underperformed. The cryptocurrency, relative to its competitors, is underperforming; where Aave’s LEND and Synthetix’s Synthetix Network Token surged hundreds of percent in this year alone, MKR only saw a 20-30% move higher.

The market may be changing its mind on MKR, though.

The coin is up 7% in the past 24 hours and seems poised to see further growth as the fundamentals of the underlying MakerDAO protocol align in favor of growth.

Related Reading: MicroStrategy’s Stock Continues to Soar After Bitcoin Purchase

Maker Surges 7% Higher Despite Stagnation in Bitcoin & Ethereum Prices

Santiment, a blockchain analytics firm, reports that the cryptocurrency has “the largest bullish divergence between daily active addresses and current price (based on historical means) of any top 100 #blockchain we track.” This suggests that MKR’s increasing user count is not being reflected in price action, but may soon be:

“On top of this, from a pure network activity perspective, $MKR currently has the largest bullish divergence between daily active addresses and current price (based on historical means) of any top 100 #blockchain we track.”

Chris Burniske, partner at Placeholder Capital, has echoed the optimism about Maker. He recently noted that most investors in the crypto space are currently “sleeping on MKR” despite the utility of the protocol “going through the roof” and as more research is done about how the coin captures value.

“People mostly sleeping on $MKR while utility goes through the roof, and conversations abound around its value capture model.”

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

Adding to this, stability fees were just reimplemented into the MakerDAO protocol after a long period of 0% rates. This means that MKR may begin to accrue value once again as the protocol begins generating fees, resulting in the buying back and burning of MKR tokens.

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

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Here’s Why Uniswap’s UNI May Be Far from Forming a Long-Term Bottom

Uniswap’s governance token – dubbed UNI – has been struggling to form a long-term bottom, as each rally results in it seeing significant selling pressure that stunts its growth and leads to further downside.

This has led to the token seeing choppy price action, which has generally favored sellers. Bulls are now trying to slow the cryptocurrency’s descent and form a base of support around $4.00, but it remains unclear as to how long this level may hold strong.

One trader, while speaking about the cryptocurrency’s near-term outlook, explained that he wary of calling this a bottom for Uniswap’s UNI, adding that he would like to see a break back above $4.68 first.

That being said, a break below this level would also be grave, potentially leading it to plummet down towards its recent lows within the $3.00 region.

Uniswap Struggles to Build Mid-Term Support as Selling Pressure Continues Mounting

At the time of writing, Uniswap’s token is trading down just under 7% at its current price of $4.05. This is around the price at which it has been trading at throughout the morning hours, with buyers attempting to defend $4.00.

The selling pressure here has been rather significant and has not allowed for the token to post any capitulatory losses.

Recently, the hype surrounding the token has died down, and there aren’t any immediate catalysts to drive it higher.

That being said, the potentially imminent release of Uniswap V3 is one event that could sway the cryptocurrency’s price. The new version is expected to add a plethora of new features to the platform, including some additions that give Uniswap functionality that is more similar to that of a centralized exchange.

A potential vote on distributing platform fees to UNI holders could also give its price a serious boost.

Analyst: UNI Has Yet to Confirm a Long-Term Bottom

While speaking about the Uniswap governance token’s technical outlook, one trader explained that it has yet to express any significant bullishness.

He notes that he is closely watching for a strong bounce at $4.00 coupled with a break above $4.68 before he flips long on UNI.

“Still not a real sign of strength on this one. I’d want to see such a clear bottom confirmation (possibly with bullish divergences) in the green zone here. If that happens, we might be seeing a reversal. If not -> patience for longing.”

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Unless some fundamental developments cause UNI’s price to rise, there’s a strong possibility that further weakness is imminent in the short-term.

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Analysts Believe Chainlink is Poised to Rally by 50%+ as It Shows Signs of Bottoming

Chainlink has struggled to maintain its foothold above $10.00, which was lost when the token faced a massive influx of selling pressure that drove its price lower overnight.

Bulls have since re-surmounted this level and are ardently attempting to establish it as support. An ability to do this could help create a strong base of support that leads LINK’s price higher in the days and weeks ahead.

Where it trends in the near-term may depend largely on Bitcoin and the rest of the crypto market, which have been consolidating throughout the past few days and weeks.

Although Chainlink is still trading down 50% from its 2020 highs of $20.00, it has posted a strong rebound from recent lows of under $7.50.

These lows came about during a bout of capitulation, which resulted in a violent “v-shaped” recovery.

Analysts are now noting that the token could be well-positioned to see significantly further upside in the days and weeks ahead, potentially reclaiming multiple key levels.

One trader is even looking for a 50%+ rally in the near-term.

Chainlink Struggles to Defend $10.00, But Analysts Grow Bullish

At the time of writing, Chainlink is trading down just over 1% at its current price of $10.05, which marks a notable upswing from its overnight lows of $9.45 that came about during a sharp selloff.

Analysts are now noting that LINK may soon begin ascending higher, with the first key level for it to reclaim sitting at roughly $11.00.

While speaking about this, one trader stated that he is now “scaling into spot” positions in anticipation of further upside.

“I think that LINK has a bit different timing than everything else in this cycle. I could see us right now setting up the last consolidation before a new move upward. Scaling into spot,” he said.

Image Courtesy of Cantering Clark. Chart via TradingView.

Here’s Why LINK May Soon See a 50%+ Move Higher

Another trader echoed this bullish sentiment, explaining that he is watching for a continuation of its post-capitulation rebound that sends Chainlink’s price up towards $15.00 – marking a 50% rise from where it is currently trading at.

“Chainlink – Trade is starting off well. I already took some partial profits at weekly close, but I just added those back on this week’s pullback. Expecting us to continue the uptrend here,” he said while pointing to the below chart.

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Unless Bitcoin drags Chainlink lower in the days ahead, it is possible that significantly further upside is imminent.

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This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished

Chainlink volatility is increasing after the asset fell from its all-time high of $20. A 60% collapse sent the cryptocurrency plummeting, only to see a record-breaking bounce that beat any intraday throughout the rest of the altcoin’s amazing 2020 so far.

And although there was a 60% crash, LINKBTC weekly price charts suggest that the asset’s parabolic advance is still intact, potentially pointing to more new 2020 highs ahead. But if the cryptocurrency can’t maintain its upside momentum, the fall down could be substantial.

Chainlink’s Parabola Hasn’t Broken On Bitcoin Trading Pair, New ATHs Inbound?

After such a powerful rise and so quickly to an all-time high of $20 per LINK token, Chainlink price is now reeling and attempting to establish some equilibrium.

A 60% crash quickly turned around with an over 30%, record-breaking daily climb on the USD trading pair. But should analysts actually be watching the Bitcoin trading pair more closely?

LINKBTC Parabolic Curve Holding Support | Source: TradingView

LINKBTC price charts show that the record-breaking bounce took place just as the cryptocurrency made its most recent touch of the parabolic uptrend curve.

Related Reading | Chainlink Weekly MACD Bearish For First Time Since Parabolic Rally Began

The previous touch sent Chainlink vertical and to a peak of just under 170,000 sats – a 300% increase. This latest bounce could send the cryptocurrency continuing much higher, but a breakdown, however, could be disastrous.

LINKBTC Broken Parabolic Curve Drawdown Targets | Source: TradingView

LINKBTC Parabola Breakdown Could Be Disasterous For Oracle Altcoin

Chainlink has already fallen 60% from highs, but according to the laws of parabola, and statistics measuring the decline of assets historically when such advances are broken, the drop may not be over.

Some of the world’s most experienced traders, such as career commodities trader Peter Brandt claim that parabolic advances, when broken, collapse by 80% or more.

A fall of 80% on the LINKBTC trading pair would take Chainlink to a value of just 33,000 satoshi. But as Bitcoin has shown, things could go even deeper than that.

Related Reading | Chainlink Downtrend Could Continue Toward New Lows Despite Record Rebound

When Bitcoin lost $20,000 – a reasonable comparison to Chainlink’s $20 – it fell over 84% to $3,200 at the low. A comparable 84% fall would take Chainlink back to 25,000 sats.

And while Bitcoin is a strong example of what happens when parabolic assets break down, Ethereum trading against BTC may be a more one-to-one comparison with Chainlink.

ETHBTC Broken Parabolic Curve Drawdown Example | Source: TradingView

ETHBTC fell a full 90% from ATH against Bitcoin when its curve was broken, dropping back to a base the asset built during the previous market cycle. A 90% fall in Chainlink, on the LINKBTC trading pair, would take the crypto asset back to its base, back at 15,000 sats.

Will Chainlink lose its parabolic support?

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FLM and RFUEL Spot Trading Now Available on OKEx

The leading crypto exchange, OKEx has announced the listing of two more tokens on its spot trading platform. Users on the platform can now start trading and also withdraw Flamingo (FLM) and Rio Fuel (RFUEL) tokens, which were earlier part of the OKEx Jumpstart Mining program.

Apart from the listing, OKEx has also announced a two-day RFUEL Deposit and Trading Contest with a prize pool worth $100,000. Both RFUEL and FLM are leading projects in the DeFi sector aiming to overcome the limitations posed by conventional blockchain protocols to widespread adoption of decentralized financial solutions. Their respective missions are in-line with OKEx’s own – providing the unbanked with access to financial services using DeFi.

In a statement, CEO of OKEX Jay Hao said, “While DeFi is on everyone’s lips, OKEx does not pay lip service. The DeFi space needs solid infrastructure construction. Thus, we are happy to see more participants working hard and smart on DeFi applications. We are willing supporters of DeFi and have welcomed over 50 DeFi tokens to OKEx.” Further adding, “As an industry explorer, it’s our duty to support the development of DeFi and provide a broader stage for high-quality DeFi projects.”

Along with spot trading, OKEx has also launched FLM/USDT margin trading and savings feature along with USDT-margined Perpetual Swap for FLM. The feature went live on September 29, 2020, to be accessed over Web, App and API. As a part of the launch, OKEx is offering zero transaction fee FLMUSDT perpetual trading for both taker and maker for one month.

OKEx has published detailed information about FLMUSDT Perpetual Swap, Margin Borrowing Position Tiers and Business Rules for Savings at the following link – https://www.okex.com/support/hc/en-us/articles/360050289671

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Bitcoin’s September To Remember Comes To A Close: Here’s What Is At Stake

Today is September 30, and while for most all it does is mark the last day of the month, for Bitcoin, it marks an incredibly critical monthly candle close.

The first-ever cryptocurrency is retesting an important resistance level turned support on monthly timeframes, and holding strong could be a confirmation of a breakout from the bear market. Here’s the exact price Bitcoin needs to close at tonight to make September a month to remember for a long time to come.

Bitcoin Monthly Close Is Coincidentally Critical Resistance Flipped Support Retest

In technical analysis, support and resistance are among the most important factors to pay attention to for volatile price action to occur. This is where rejections or rebounds take place, or if price gets through, an explosive outcome follows.

For example, when the cryptocurrency finally plowed through $10,000 it very quickly was trading at well over $12,000. There, Bitcoin price was rejected, forced to retest previous resistance as support before removing higher.

Related Reading | Bitcoin Faces Pivotal Quarterly Close, Here’s Why

It is not clear why markets work this way, but retests of resistance turned support are common. Failure for bears to push prices back below the former resistance level gives bulls confidence to send prices soaring higher.

Bitcoin’s monthly close is one of its most important retests of high timeframe resistance turned support in its short history. If the cryptocurrency can close above this key resistance level, there’s only one left before another crack at breaking $20,000 is next.

The price for Bitcoin bulls to beat tonight is clearly drawn at $10,750.

BTCUSD Monthly Resistance / Support Flip Retest | Source: TradingView

Why This September Monthly Close Is So Crucial For Crypto Uptrend Continuation

If for some reason Bitcoin loses $10,750 tonight, it isn’t all said and done for bulls. The cryptocurrency could very well continue to hold strong above another support level – “meme” downtrend resistance from all-time high.

Resistance and support can run diagonally, just as it does horizontally. It also exists at rounded numbers, like $10,000 and $20,000, or at in number strings such as $6,666.

BTCUSD Monthly Downtrend Meme Trend Line Retest | Source: TradingView

This diagonal resistance level also coincides with another important monthly resistance level, from the first phase of the bear market. This bearish block is at the top of a long-legged doji where the February 2018 V-shaped low took place.

Related Reading | Bitcoin Descending Triangle Hints At Third Downtrend Before Bear Market Finish

Bitcoin closed higher that month, but not again until 2019. Now, it’s back above it. The cryptocurrency is currently trading at roughly $10,750 as of right now, but if somehow the rug is pulled and the cryptocurrency drops to below $10,100, an evening star pattern will confirm.

BTCUSD Monthly Possible Evening Star If Close Below $10,100 | Source: TradingView

An evening star pattern is a bearish Japanese candlestick reversal pattern. A close like this tonight would indicate another fall into a downtrend, while a strong close above it could be confirmation of an uptrend.

However tonight’s close ends, it should be a September to remember.

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This Pattern Suggests Bitcoin’s Price is About to “Blast Off” to New Local Highs

Bitcoin and the entire crypto market have witnessed dwindling volatility throughout the past few days and weeks, with both buyers and sellers being unable to gain control of the crypto’s near-term outlook.

The benchmark cryptocurrency has been caught within a bout of sideways trading throughout the past few weeks, with buyers establishing support at $10,200 while sellers continue guarding the region between $11,000 and $11,200.

The lack of momentum caused by the buying and selling pressure at these levels has led to the formation of an even tighter trading range, which exists between $10,600 and $10,800.

It currently remains unclear as to what could catalyze enough volatility for Bitcoin to smash through any of these levels in the days and weeks ahead.

One analyst is pointing to a historical pattern as one factor that is bullish for BTC.

He notes that the ongoing bout of sideways trading is occurring just below a key resistance level.

Typically, this is a bullish sign that indicates bulls are laying the groundwork for the cryptocurrency to make an explosive move higher.

Bitcoin’s Volatility Dives as Trading Range Persists 

It has been a rough past month for Bitcoin.

After peaking at highs of $12,400 in late-August alongside the rest of the crypto market, its price had been caught within a firm downtrend that ultimately led it to lows of $9,900.

The support here was significant and catalyzed a strong rebound to highs of $11,200. Since being rejected here, the cryptocurrency has been seeing range-bound trading ever since.

At the time of writing, Bitcoin is trading down just under 1% at its current price of $10,730. This is around where it has been consolidating throughout the past few days.

Analyst: This Historical Trend is Boding Well for BTC

While speaking about the cryptocurrency’s near-term outlook, one analyst explained that consolidation beneath resistance is typically bullish.

He notes that unlike Bitcoin’s past bout of consolidation – which took place just above its $11,000 support level – this ongoing consolidation is occurring below this level, which has since flipped into resistance.

As such, he believes that this could mean that the crypto is about to “blast away.”

“Quick tip. When BTC consolidates just above support and keeps hugging it, it’s almost always a bull trap. Especially when the consolidation slopes downward. When bitcoin breaks out, it usually blasts away and doesn’t give anyone a chance to get in.”

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How the entire market trends in the days should depend solely on Bitcoin.

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VeChain Wants Developers to Migrate NFT Projects to VeChainThor

Non-fungible tokens (NFTs) are vying for a bigger slice of the crypto pie. In recognition of this, the VeChain Foundation promotes its platform as the best place for developers to build their NFT projects.

They claim VeChain was one of the original pioneers of NFTs. What’s more, purpose-built NFT toolsets and grants are available for those interested in porting over.

“Our blockchain offers a secure, high-speed, and stable protocol coupled with features to remove the complexities of blockchain and comprehensive support to applications with real value. Foundation Grants are also available for the migration of NFT Projects to our platform.”

NFTs can be thought of as digital collectibles. They are similar to cryptocurrency, in that they exist on a blockchain and have a monetary value.

But what differentiates them is a layer of characteristics that make them unique. For example, in the associated metadata, visually, serial numbers, and so on. All of this impacts the value of the NFT with what collectors deem valuable/wanted.

“NFTs therefore create exciting monetization opportunities for brands and collectors, as they are provably authentic, safe to trade, and can include all different types of artwork and branding opportunities.”

Non-Fungible Tokens Are Still a Niche Offering

Recently, there has been much talk of NFTs being the next big thing in blockchain.

However, some would argue they are too niche to make any sort of meaningful impact. Also, the investment potential of NFTs continues to divide opinion.

Data from nonfungible.com shows a marked uptick in total USD sales of NFTs lately. On September 27, 2020, NFTs to the value of $541k were sold. This is a year-to-date high, beating the previous high of $512k set on March 31, 2020.

Source: nonfungible.com

Considering Bitcoin’s 24-hour volume was $52 billion, NFTs, even on a good day, represent a fraction of the cryptocurrency market.

But, are things about to change?

How Can VeChain Help?

VeChain CEO Sunny Liu certainly thinks so. What’s more, Liu is pushing hard to attract more NFT projects to his platform.

“We are about to witness a plethora of new NFTs assets being minted and flooding into this marketplace. VeChain’s pioneering technology is currently the most advanced technology and provides the best features for business-oriented scenarios.”

With that, the VeChain Foundation boasts of having a dedicated NFT standard (VIP180). They claim that it significantly enhances the user experience and offers developers a secure and audited code to work with.

John Dempsey, Co-Founder, and CEO of VIMworld, who ported over to the VeChainThor blockchain, spoke of the massive cost savings made.

“Currently, we have more than 12,000 Smart NFTs distributed to our users with much more planned. If we were to run our business on Ethereum, we would have to pay more than $400,000 in gas fees alone for these transfers, and up to millions more for other operations.”

And with grants of up to $30k on offer, VTHO subsidies, as well as bug bounty programs, it’s clear that VeChain is pushing hard on NFTs.

VET daily chart YTD with volume. (Source: tradingview.com)

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RSK Parent Company IOV Labs Launches Enterprise Blockchain Solution

IOV Labs, the company behind Bitcoin-powered smart contract platform RSK and RIF, has announced a new ecosystem pitched at enterprises and governments. Extrimian, a joint venture with enterprise software firm Grupo Sabra, has set itself the goal of enabling businesses and government agencies to interact with the blockchain and thereby promote wider adoption.

It’s the latest shot across the bows by IOV Labs, who is building out a comprehensive technology stack to rival enterprise giants like Hyperledger, Corda and Quorum.

“Extrimian gives businesses exposure to the benefits of blockchain technology without the complexity,” said Diego Gutiérrez Zaldívar, CEO and co-founder IOV Labs. “It enables them to go to market quickly with a native application while tapping into the many benefits that DLT has to offer.”

A Fruitful Partnership

Extrimian’s solution, an ecosystem known as RSK Enterprise Cloud, will enable clients to build value networks by creating their own decentralized applications (dApps). It’ll also allow them to configure a technological stack needed to connect their enterprise to decentralized networks and to easily deploy consortium networks.

Grupo Sabra, for its part, brings a wealth of expertise to the table: the Argentine firm has been integrating traditional technology components with blockchain platforms since 2009, working with clients such as Gasnor, Microsoft and LG.

IOV Labs and Grupo Sabra have had a fruitful partnership to date. Prior to creating Extrimian, the companies launched a Gasnet blockchain network for Argentina’s natural gas distribution system. They also collaborated on a blockchain-based interbank messaging system for clients such as Argentina’s Central Bank and the stock exchange BYMA, and developed a ‘green’ ride-sharing program in tandem with the California Energy Commission.

The latter venture, EVShare, relies upon the RSK blockchain to achieve renewable energy targets in disadvantaged areas of Los Angeles, California. The project received $9 million worth of funding from the California Energy Commission, with the RSK blockchain facilitating trading of carbon credits and tokens dispensed as rewards to citizens who reduce their carbon footprint.

Entering the BaaS Business

With a multi-cloud blockchain-as-a-service (BaaS) ecosystem now part of IOV Labs’ expanding empire, the company aims to become a driving force in the enterprise blockchain sector. According to Grupo Sabra Co-founder Guillermo Villanueva, who will serve as Extrimian CEO, the RSK Enterprise Cloud has been six years in the making. “It’s a platform created by developers, for developers,” he said.

The enterprise blockchain sector is a mix of established players and emerging startups like Concordium, a privacy-centric venture that uses identity proofs as an integral part of its protocol. Protokol is another new player on the block that promises to empower enterprises via custom blockchain solutions that streamline operations and reduce complexity.

According to a Fortune Business Insights report published earlier this year, the enterprise blockchain market will hit $21.07 billion within the next five years, up from just $1.64B three years ago. More global businesses are enticed by the possibilities offered by blockchain technology, and though the likes of IBM have the capital to create their own dedicated blockchain products, others need a helping hand. IOV Labs will be utilizing all its expertise and experience as it seeks to capture a share of the enterprise blockchain market in the years to come.

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ATOM Enters “Trouble Area” as Price Rallies Another 9%; Pain Ahead?

ATOM was among the biggest gainers on cryptocurrency boards this Wednesday as traders assessed its integration into the US-regulated crypto exchange Coinbase.

The Cosmos’ native token rallied 9 percent on a 24-hour adjusted timeframe, touching an intraday high level near $5.56, hours after Coinbase added support for staking ATOM rewards. Its gains appeared even as other top crypto assets showed signs of a downside correction.

“Starting today, eligible customers can easily start earning 5% APY on their Cosmos (ATOM) held on Coinbase,” the exchange announced. “Customers can securely keep their assets on Coinbase and instantly trade or withdraw their holdings and rewards when they want.”

An Ethereum-rival, Cosmos is a proof-of-stake blockchain that allows users to stake ATOM tokens to secure the network. In return, the stakers receive the so-called block rewards – again, derived in ATOM, by as much as 20 percent per annum.

Since its launch, the Cosmos core economic model has helped ATOM log a year-on-year gain of 150 percent.

Trouble Area

The latest ATOM rally came as a part of an extended pullback that followed a 57.26 percent price crash. Technically, the ATOMUSD exchange rate bounced off a medium-term ascending trendline that served as its support, forming higher highs on a three-day timeframe.

Cosmos is attempting to close above $5.46-resistance. Source: TradingView.com

Cosmos is attempting to close above $5.46-resistance. Source: TradingView.com

In his earlier analysis, stock analyst Michaël van de Poppe called the $5.15-5.40 range a “troubled area.” That reflected the daytrader’s fears of a downside correction once ATOM closes above $5.15. Nevertheless, the token’s minor breakout above the said area raised its possibilities of testing $6.51 as its next upside target.

Noah Seidman, another market analyst, explained the bullish bias with a customized chart as shown below.

Cosmos bullish setup. Source: TradingView.com

Cosmos bullish setup. Source: TradingView.com

“ATOM is sitting comfortably above its long term trend resistance-flipped-support,” he said. “Now above the 200EMA on the daily, clearly the bullish deviation helped pull up the long term average above the green trend line.”

ATOM Pullback Scenario

In a downside setup, ATOM/USD could correct lower based on profit-taking sentiment led by elsewhere losses. Macro-wise, the crypto market is still waiting for Bitcoin to break above its resistance levels above $11,000. But a long-delayed stimulus bill, coupled with US presidential election uncertainty, is keeping the benchmark cryptocurrency cautious.

Should a correction occur in the Bitcoin market, it could lead the altcoins lower as well. The setback would ensure that ATOM attempts to break below the Ascending Trendline. If that happens, then the Cosmos token could fall to as low as $2.57.

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Brave Developer: Growing Privacy Concerns is Why BAT Will Succeed

Technical Operations Coordinator at Brave, Chris Nguyen, hosted a Reddit AMA in which he answered questions from the community.

Although he stated that he was happy to discuss all topics, including details of his personal life, the most upvoted questions were about the future direction of Brave.

For example, one user asked Nguyen to explain THEMIS in simple terms. Nguyen responded by saying THEMIS is a proposal to decentralize Brave. But it’s still at the research stage of development, and so won’t be coming anytime soon.

“THEMIS is a way of moving the ad system on-chain in order to decentralize it. Part of THEMIS involved a discussion of side-chains, and staking was introduced in that context.”

Similarly, another user asked about the prospects of Brave being a commercial success. In response, Nguyen said the concept of a privacy-based browser strikes a chord with the dominant spirit of these times. As such, everything is aligned for Brave to succeed.

Brave Browser Stats Show Steady Growth

Analysis of metrics, such as publishers onboarded and the number of BAT addresses, all show consistent growth.

What’s more, this pattern repeats with the leading metric – the number of active users. The latest information shows that the number of active monthly users hit 15.4 million in May 2020, which is up 50% over the previous seven months.

“Brave saw its monthly active users pass the 15 million mark with 15.4 million users, a growth of 50% since the Brave 1.0 launch this past November, and of 125% or 2.25x over the past year. Daily active users also went up significantly, with 5.3 million users browsing with Brave on a daily basis, up from 2 million one year ago.”

Active monthly users on Brave for the 8 months to May 2020. (Source: brave.com)

Internet Users Are Wising Up

Taking these stats into consideration, it hard to argue against Nguyen’s points. At face value, it seems as though internet users increasingly see privacy as important.

What’s more, as Nguyen points out, this attitudinal shift is a relatively recent phenomenon. He refers to a growing realization that the internet is not private, and how, in response, users are fighting to reclaim their privacy. This is especially so within the context of growing distrust of governments and oligarchical private companies.

“Privacy is the new hot topic. Regular people are starting to care about privacy (see the Social Dilemma movie, for example), and governments are too. The social, political and regulatory environment looks great for BAT and Brave. Indeed, not even 10 years ago, caring about privacy was only for those who wore tinfoil hats, and would occasionally get you laughed at at family BBQs!”

With that, Nguyen believes that Brave is poised to reap the benefits of this “awakening”. For that reason, he feels both Brave and BAT have a bright future ahead.

The price of BAT today is up just under 1% to $0.2393. The last seven days have seen BAT rally 5% from a four-month low of $0.2121.

BAT daily chart YTD with volume. (Source: tradingview.com)

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Analysts Explain Why UniSwap (UNI) Could Surge Higher Entering Q4

UNI is among those decentralized finance tokens that debuted with a bang but slowly rolled over to the bearish side on higher profit-taking sentiment.

The UniSwap exchange’s governance cryptocurrency plunged by another 5 percent on Wednesday, hitting an intraday low of $4 as of 0900 UTC. The latest sell-off came as a part of a broader correction trend that followed UNI’s 5,524 percent price rally to an all-time high at $8.59.

UNI/USD is consolidating sideways following its 50% correction. Source: TradingView.com

UNI/USD is consolidating sideways following its 50% correction. Source: TradingView.com

TVL

Simultaneously, the total value locked inside the UniSwap pool kept on increasing to new highs. According to data fetched by DeFi Pulse, the TVL surged to $2.12 billion on Wednesday, its highest to date, showing that more people are locking funds in the UniSwap pool.

The decentralized exchange has committed to rewarding its liquidity providers and users with UNI tokens until its supply exhausts at 600,000,000 units.

That serves as one of the main reasons UNI is still trading 2,500 percent above its debut rate. Traders prefer to speculate on the token for what it represents: the world’s leading decentralized exchange with volumes better than Coinbase and Binance.

And some of those speculators are already anticipating a rebound in the UNI market.

UNI Pullback Calls

A pseudonymous analyst, known by his first name Mac, said that he expects UNI/USD to fall further towards $3.5. But entering the first week of the final quarter, the pair would most likely rebound to the upside.

“UNI shorts are looking good,” he said. “The market is not bueno for bulls atm. Waiting for the first week of Oct to enter longs.”

UNI trade setup, as presented by MacnBTC. Source: TradingView.com

UNI trade setup, as presented by MacnBTC. Source: TradingView.com

Another pseudonymous analyst with a history of posting accurate crypto market outlook also presented a pullback scenario for the UniSwap token. Nevertheless, he mentioned specific criteria before he enters any long position.

UNI trade setup, as presented by John Wick. Source: TradingView.com

UNI trade setup, as presented by John Wick. Source: TradingView.com

“UNI is looking to retest the breakout,” the analyst noted. “These are usually even better R/R entries at the retest. If it reacts with a sign of strength its a buy with a stop at support.”

On a broader scale, the UniSwap token expects to stay inside the bias dictated by the overall cryptocurrency market trend. With uncertainty over the US election looming, and the second stimulus bill in pending state, almost all the bullish assets are anticipating sell-offs.

That may include UNI as well.

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Chainlink (LINK) Bulls Facing Uphill Task: Here’s Why $11 Holds The Key

Chainlink (LINK) started a strong upward move from the $7.32 low against the US Dollar. The bulls are now facing a strong resistance near $10.50, $11.00, and the 100 SMA (H4).

• Chainlink token price gained nicely above the $8.50 and $9.00 resistance levels against the US dollar.
• The price is now facing hurdles near the $10.50 resistance and the 100 simple moving average (4-hours).
• There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair (data source from Kraken).
• The pair could either rally above $11.00 or it might trim all gains to drop back at $7.50.

Chainlink (LINK) is Facing Hurdles

This past week, we saw a sharp rise in chainlink (LINK) above the $8.50 and $9.00 resistance levels against the US Dollar. The price remained well bid after it settled above the $9.00 pivot level.

There was also a break above the 50% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low. However, LINK price ran into a significant resistance at $11.00 and the 100 simple moving average (4-hours).

It seems like price is struggling to clear the last breakdown zone at $10.50 and $11.00. The 61.8% Fib retracement level of the key decline from the $13.30 swing high to $7.32 low is also acting as a strong resistance for the bulls.

LINK price trades below $10.00. Source: TradingView.com

The price is currently correcting lower (similar to bitcoin and ethereum) and trading below $10.00. There is a key bullish flag forming with resistance near $10.45 on the 4-hours chart of the LINK/USD pair.

If there is an upside break above the channel resistance and $10.50, there are high chances of a sharp increase above the $11.00 resistance zone. In the stated case, the price could rally towards the $12.50 and $13.20 resistance levels.

Fresh Decline?

If chainlink’s price fails to clear the $10.50 resistance and stays below the 100 simple moving average (4-hours), there is a risk of a sharp decline.

An initial support on the downside is near the channel lower trend line at $9.40 level. The main support is near the $9.00 level, below which there are real chances of a drop towards the $7.50 level in the near term.

Technical Indicators

4-hours MACD – The MACD for LINK/USD is now gaining pace in the bearish zone.

4-hours RSI (Relative Strength Index) – The RSI for LINK/USD is now well below the 50 level.

Major Support Levels – $9.40, $9.00 and $8.50.

Major Resistance Levels – $10.40, $10.50 and $11.00.

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Crypto Roundup: September 29th, 2020

Bitcoin is once again approaching $11K, after swiftly recovering from a drop alongside stocks and gold early last week.

The leading cryptocurrency fell to $10K before bouncing amidst bullish headlines, including news that British overseas territory Bermuda had approved a Bitcoin ETF. Although not on U.S. soil, the event has created a stir among traders, who have long anticipated that a Bitcoin ETF listing could trigger a meteoric rise like the one that followed the first Gold ETF in 2003.

Ahead of Bitcoin, little brother Ethereum recovered even faster from the fall. The second-largest cryptocurrency has pushed up almost 3% over the last seven days as it races to catch up with the week’s biggest winners — Cardano and Tezos.

This Week’s Highlights

• Cardano Climbs Above $0.10
• Tezos Rides Tokenized Art Trend

Cardano Climbs Above $0.10

A surprise ask-me-anything session with Cardano founder Charles Hoskinson catalyzed a 20% surge for the platform’s native token, ADA, last week. In the session, Hoskinson shared details of the upcoming network upgrade, Goguen. This represents a big step forward as it will allow developers to build decentralized applications (dApps) on Cardano.

Bullish Cardano sentiment has been bolstered further by news that IHOK, the company behind the platform, is working with the United Nations to incentivize the development of blockchain projects aimed at boosting sustainability.

Tezos Rides Tokenized Art Trend

Self-governing smart contract platform Tezos has risen almost 7% over the last week.

As one of the leading tokenization platforms, the rally could be related to rising interest in non-fungible tokens (NFTs). These on-chain crypto-collectibles and unique art pieces have garnered increased attention in recent weeks amidst the DeFi boom.

Aside from hosting digital artwork, Tezos could also be helping small Chinese businesses to build and deploy blockchain apps. China’s government-backed blockchain infrastructure initiative, the Blockchain Service Network, announced this week that it has now fully integrated Tezos.

The Week Ahead

Although September has been a relatively quiet month, some suggest this is a bullish sign, with data from Messari showing that Bitcoin has never before managed to stay above five figures for so long.

This buoyancy is particularly impressive given the recent KuCoin hack, which could continue to impact crypto markets in the coming week as hackers seek to offload more than $150M in stolen funds.

As we move into October, the impending U.S. election is likely to dictate price action across global markets, along with fears of a second wave of coronavirus cases. This could come to a head on Friday when the latest jobs report will give fresh insight into the state of the economy.

Image by Gerd Altmann from Pixabay

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Ethereum Bears Hold Strong At $360: Indicators Show Risk of Downside Break

Ethereum is struggling to clear the $360 and $365 resistance levels against the US Dollar. ETH price is showing bearish signs and it could dive below $350 and $345.

• Ethereum is still facing a heavy resistance near the $360 and $365 levels.
• The price is currently stuck near the $355 support and the 100 hourly simple moving average.
• There is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair is likely to continue lower if it breaks the $352 and $350 support levels.

Ethereum Price is Facing Many Hurdles

Ethereum remained stable above the $350 support level, but it is still facing a heavy resistance near the $360 and $365 levels. ETH started an upward move from the $350 low and climbed above the 100 hourly simple moving average.

There was a break above the 23.6% Fib retracement level of the downward move from the $369 high to $350 low. However, the $360 resistance and the broken bullish trend line seems to be acting as a strong resistance for the bulls.

The 50% Fib retracement level of the downward move from the $369 high to $350 low is also acting as a resistance. Ether price is currently declining and trading near the $355 support level.

Ethereum price trades below $360. Source: TradingView.com

It seems like there is a new connecting bullish trend line forming with support near $352 on the hourly chart of ETH/USD. If ether continues to move down and breaks the trend line support at $352, there is a risk of a bearish break.

The next major support is near the $350 and $348 levels, below which the bears are likely to aim a larger decline towards the $335 support level in the near term.

Chances of Upside Break in ETH?

If Ethereum manages to stay above the $352 and $350 support levels, there are chances of an upside break. An initial resistance is near the $360 level.

The first key resistance could be near the $362 level, above which the bulls might aim a clear break above the $365 resistance level. The next major resistance is near the $375 zone.

Technical Indicators

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

Hourly RSI – The RSI for ETH/USD is currently declining and it is well below the 50 level.

Major Support Level – $350

Major Resistance Level – $360

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Bitcoin Topside Bias Vulnerable If It Continues To Struggle Below $11K

Bitcoin price is stuck in a broad range below the $11,000 resistance against the US Dollar. BTC is likely to decline sharply if it continues to fail near $10,800 and $11,000.

• Bitcoin is struggling to gain bullish momentum and it is well below the $11,000 resistance.
• The price is approaching the 100 hourly simple moving average and the $10,750 support.
• There is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could either surge above $10,850 or it might start a fresh decline towards $10,200.

Bitcoin Price is Stuck in a Range

After a sharp bearish reaction from the $10,950 zone, bitcoin price found support near the $10,650 level against the US Dollar. The bears made a couple of attempts to clear the $10,650 support, but they failed.

The recent low was formed near $10,647 before the price recovered above $10,750. The price traded as high as $10,860 and it is currently correcting lower. There was a break below the 23.6% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin is now approaching the 100 hourly simple moving average and the $10,750 support. It is close to the 50% Fib retracement level of the recent rise from the $10,647 low to $10,860 high.

Bitcoin price trades below $10,800. Source: TradingView.com

It seems like there is a major contracting triangle forming with resistance near $10,850 on the hourly chart of the BTC/USD pair. To start a strong increase, the price must clear the triangle resistance and then the $10,950 zone.

The main hurdle is still near the $11,000 resistance, above which there are real chances of a sustained upward move towards the $11,500 and $11,600 levels in the near term.

Downsides Break in BTC?

If bitcoin fails to climb above the $10,800 and $10,850 resistance levels, there is a risk of a downside break. The first key support is near the triangle lower trend line or $10,650.

A clear break below the $10,650 support might increase chances of more downsides below the main support zone at $10,550. In the stated case, the price is likely to dive towards $10,200 or even $10,000 in the coming sessions.

Technical indicators:

Hourly MACD – The MACD is struggling to gain pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently testing the 50 level.

Major Support Levels – $10,650, followed by $10,550.

Major Resistance Levels – $10,850, $10,950 and $11,000.

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Bitcoin’s Network Health Plunges as New Investors Stop Buying BTC

Bitcoin’s price has been facing some turbulence throughout the past couple of days and weeks, with buyers and sellers being unable to catalyze any clear momentum in either direction.

Earlier this week, bulls roared when they sent the crypto rallying up towards $10,800, but the resistance just above this price level slowed its ascent, stopping BTC from testing $11,000.

Following a short bout of consolidation, the cryptocurrency eventually began drifting sideways, before facing selling pressure yesterday that sent its price plunging down to lows of $10,500.

Although it subsequently rebounded from these lows and has been trading sideways ever since, it is important to note that the cryptocurrency’s network health has been declining over the past week.

This has come about due to the lack of new entrants to the Bitcoin network, with its turbulent price action likely hampering its adoption amongst new users and investors.

Until there’s more clarity when it comes to the cryptocurrency’s price, it may continue seeing declining fundamental strength.

Bitcoin’s Price Action Creates Air of Uncertainty Amongst Investors 

Throughout the past few days and weeks, Bitcoin’s price has been struggling to garner any momentum in either direction.

It has mostly been consolidating between $10,200 and $11,200, and until one of these levels is decisively broken, its outlook remains unclear.

It is important to note that this has caused trading liquidity on exchanges to trend lower throughout the past week, according to analytics platform Glassnode. On-chain transactional liquidity, however, has been trending higher.

“While trading liquidity decreased due to lower exchange deposits, transaction liquidity rose due to an increase in the volume of BTC transferred on-chain,” they explained.

Until Bitcoin determines its mid-term trend, it may continue watching its liquidity plunge lower.

Glassnode: Network Health Declining Due to Lack of New Users

In their latest weekly update, Glassnode explained that Bitcoin’s network health has also been declining over the past week, which primarily stems from weakness in their “network growth” category.

“Network Health dropped from a score of 74 to 64 points over Week 39, decreasing by 13.5%. The network growth subcategory lost 8 points due to a decline in the number of new users joining the Bitcoin network. Meanwhile, network activity dropped by 10 points as the number of BTC transactions also fell.”

Image Courtesy of Glassnode.

The sharp plunge seen across new users joining the Bitcoin network, transaction volume, and liquidity points to some mounting fundamental weakness.

This could all rapidly shift if the cryptocurrency makes a trend-defining move in the near-term.

Featured image from Unsplash.

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