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How to Protect Bitcoin for Your Heirs With the Push of a ‘Dead Man’s Button’ – CoinDesk – Coindesk

What happens to your bitcoin after you die?

This is more than just a philosophical question: It could involve a substantial amount of currency.

The question of crypto and the Great Beyond is what prompted about 20 or so developers to get together in London recently to experiment with repurposing the current lightning protocol to send private messages as a dead man's button, a system that can't be censored and would keep your crypto safe for your heirs.

Lightning Labs infrastructure engineer Joost Jager has been exploring using lightning for messaging over the past year. At the Advancing Bitcoin conference in London, Jager hosted a workshop to explore building a dead man's button with lightning. The mission was to show that lightning can be used as messaging system as well as a payment network.

These buttons are not new. At the workshop, Jager noted Edward Snowden, the National Security Agency whistleblower, used one in case he died before journalists could reveal the contents of the documents he wanted to make public.

The goal of the workshop was to explore one of lightnings relatively new features, "keysend" (formerly known as spontaneous payments). Its so experimental it isn't even described in the lightning specifications yet. But it does offer a way to send data (called "custom records" in LND, the lightning implementation Jager works on) along with a transaction.

Heres how it might work: Imagine a user who wants to pass on a bitcoin (BTC) inheritance. That user would communicate with a "service," pushing a "button" that would send a message every week or so to signify that the user is still alive.

If the button isn't pressed one week, it is assumed the bitcoin user is dead or incapacitated and it's time for the bitcoin to be passed on, at which point the service automatically dispenses a "secret," which can be used to retrieve the crypto.

Beyond that, Jager thought some additional features should be added, even if they could make the program trickier to implement. The program should maintain the privacy of the sender and the receiver, he said, and should allow the sender to get proof the service still has the secret.

Developers split into small groups to think about how to build a service that would meet all of these and other goals. The workshop developers came up with some ideas, which Jager published to GitHub. He included a rough implementation, which puts several of the ideas into practice, though he said the code "is extremely limited and does not implement everything described."

This design isn't necessarily the best way forward, Jager said, but it's a proof of concept he hopes can inspire other implementations.

Imagination versus loss

Jager told CoinDesk the "primary" reason he chose the dead man's button for the workshop was it is complex enough of a use case that it can show off what lightning can do as a messaging system.

But he also thinks a dead man's button could be a real use case for lightning down the road.

"Many people try to arrange their crypto inheritance and need to make up their minds about who they trust. This could be an alternative, assuming that wrinkles are ironed out and the whole process is hidden underneath a user-friendly shell," he said. This is "unlikely to happen short term, but I hope people see the possibilities."

Lawyer Pamela Morgan, an expert on crypto inheritance and author of a book dedicated to helping people develop a plan to pass on their crypto, agrees with Jager the technology is far from ready. But she said she would not encourage users to put any money into any experimental dead man's button systems just yet.

"Dead man's switches are fun projects that excite our imaginations but fail to solve the complex and multidisciplinary challenges of crypto asset inheritance distribution. Relying on such solutions for something as important as inheritance is likely to cause catastrophic loss," she told CoinDesk.

However, she said the technology has promise. Since few crypto enthusiasts have any sort of a plan for what to do with their currencies after they are gone, she's happy to see people exploring ways to make crypto inheritance a more common practice.

"If adding a dead man's switch makes more people actually do inheritance planning for their bitcoin, then I'm all for it because so few people actually do anything," she told CoinDesk.

In the meantime, Jager is pressing on with beefing up lightning's messaging system to make it easier to send messages across the network.

Correction (Feb. 24, 22:52 UTC): This article has been updated to clarify the intent of the workshop.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Derivatives tell an interesting story of the recent Bitcoin price drop – CryptoSlate

Research by Jesus Rodriguez and Lucas Outumuro ofIntoTheBlock

Derivatives are becoming an important element of the crypto markets. With more exchanges introducing products such as futures, perpetual swaps or options, the influence of derivatives in crypto markets has been increasing linearly. With the increase in derivative trading comes more data and with more data the opportunity of producing richer analytics that evaluates derivative products to extrapolate insights about the behavior of crypto assets.

From an analytical standpoint, derivatives are an incredible source of intelligence in capital markets and crypto is not an exception. For starters, derivatives are a clear indicator of the market sentiment in crypto assets as well as an accurate descriptor of behaviors such as hedging and speculation.

Additionally, derivatives are one of the elements that can contribute to the eventual rationality of crypto markets and become a key indicator for important aspects such as risk monitoring and portfolio management. In the current, still immature, state of the crypto markets, derivatives can have a disproportionate effect in price fluctuations which make it an even more interesting aspect to consider when studying crypto assets. If we look at this weeks movements in the Bitcoin price through the lens of derivative contracts, we can extrapolate some very interesting insights.

In the last seven days, Bitcoin has experienced a strong bearish momentum dropping over $10,000. The market behavior is attributed to macro-factors such as the impact of the coronavirus and its negative impact in global capital markets. However, crypto derivative contracts such as futures and perpetual swaps help paint a more complete narrative of the current market turmoil. Specifically, the indicators of volume, open interest, turnover ratio and basis are incredibly useful tools to comprehend Bitcoins recent price drop and what may follow.

Perpetual swaps, which essentially function as futures contracts without an expiration date, have quickly been adopted as the crypto space go-to derivative contract. During the recent price drop, Bitcoin perpetual swaps volume reached a yearly high on February 26, surpassing $14 billion traded within 24 hours. Although this is a very large number, it is important to take into account that volumes are a function of leverage. With the option to select leverage of 100x (and sometimes even higher) in popular derivatives exchanges, perpetual swaps volumes have quickly surpassed spot volumes for several exchanges like Binance and Huobi.

While price and volume are the two main metrics of which indicators are derived for traditional technical analysis, derivatives trading introduces a third elemental factor: open interest. Open interest is the total amount of outstanding investor positions, usually measured as the dollar amount of open contracts in the case of cryptocurrency derivatives. In other words, open interest reflects the cumulative amount of open positions, regardless of the direction of the trades (includes both long and short data).

For example, lets say a $100 million long contract is opened at a price of $10,000 with a liquidation price of $9,000 at this moment both volume and open interest would increase by $100 million. (To clarify the liquidation price is the level at which a leveraged position is closed due to unrealized losses reaching the level of initial capital used to fund the position.) Lets then say that the price reaches $9,000 this effectively closes this position, therefore reducing open interest by $100 million, while volume still increases reaching a total of $200 million.

Open interest for perpetual swaps so far this year peaked on February 18 at $2.26B, right when Bitcoin registered a lower high. In the last week, open interest fell to a low of $1.9B on February 27 as prices dropped, indicating that several long positions were either closed or, perhaps more likely, liquidated. Additionally, we can see a spike in open interest in February 24 and 25 preceding the large price decline on February 26 hinting to an increase in the amount of investor short trades at that moment.

Afterward, though, open interest dropped 12 percent pointing to some of these positions being closed, a sign of weakening bearish momentum.

Another helpful metric introduced in derivatives trading is the turnover ratio, which is the 24-hour volume for a contract over its open interest. In a nutshell, this represents the ratio of short-term speculation and hedging in a contract relative to its longer-term open positions. As one may expect, the turnover ratio tends to increase in volatile days as traders intend to profit from quick price movements. While volatility attracts trading volume, it usually also leads to decreases in open interest as a significant amount of positions get liquidated. Because of these relationships, the turnover ratio provides interesting insights on the expectations and reactions derivatives traders have towards volatility

This pattern can be seen on two of the most volatile days in the recent Bitcoin retracement, February 19 and February 26. As Bitcoin dropped over $700 on February 26 from its high point to its low, turnover quickly spiked to a monthly high. While the turnover ratio varies across exchanges it does tend to move in tandem, averaging around 5x for top exchanges versus a weekly average of 3.51. Following this drop, the turnover ratio stabilized but at a slightly higher average level indicating that Bitcoins recent relative volatility may resume.

A natural complement to the turnover ratio is the basis indicator. While the turnover ratio can offer insights into volatility, the basis provides a better understanding of price movements. Basis is the premium (or discount) between the spot price and the futures contract price.

Over time, this premium or discount decreases as futures price converge towards spot prices approaching the expiration date. In traditional markets, this concept is often tied with the concepts of contango and backwardation. In essence, a futures contract is considered to be in contango when its priced at a premium relative to current prices and in backwardation when its at a discount. Since basis is the index price minus the futures price, premiums are shown as negative values for basis and discounts as positive.

Going back to Bitcoins recent drop, basis increased significantly meaning that the premium decreased. However, futures contracts settling on March 27 still remain in contango, as seen in the graph below, which is a sign that expectations remain positive among derivatives traders.

While it may come as no surprise that the recent price decline is reflected on a decrease on the contract premium, it is worth noting out that the basis also appears to have a strong correlation with the price movement the day after. Throughout the month of February, the basis has had a remarkable 0.7 r-squared versus price movements on the following day, indicating the strong relationship between futures market activity and changes in spot prices.

Overall, these indicators demonstrate the prominence that derivatives markets are having in the crypto space. Analyzing the volume and open interest in the recent Bitcoin price drop point to the fact that several long positions got liquidated in the past few days, but is also showing a decrease in the bearish momentum. The subsequent spike in the turnover ratio demonstrates how derivatives traders looked for short-term hedging and speculating opportunities to take advantage of the recent volatility.

Lastly, changes in futures contracts premium, which can be seen in the basis, indicate how derivatives traders positioning end up reflecting in spot prices. Ultimately, these examples confirm the importance of derivatives indicators as effective complements to traditional technical analysis and blockchain-specific metrics.

Jesus Rodriguezis the CEO-CTO of IntoTheBlock, a market intelligence platform for crypto assets. He is a computer scientist, a speaker, and author on topics related to crypto and artificial intelligence.

Lucas Outumurois a Sr. Researcher at IntoTheBlock, a market intelligence platform for crypto assets. His areas of focus include crypto derivatives, DeFi and web 3.0 in general.

Bitcoin, currently ranked #1 by market cap, is down 0.8% over the past 24 hours. BTC has a market cap of $159B with a 24 hour volume of $44.59B.

Chart by CryptoCompare

Bitcoin is down 0.8% over the past 24 hours.

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Derivatives tell an interesting story of the recent Bitcoin price drop - CryptoSlate

Bitcoin is Recovering, But This Key Data Shows Bears Are Still Well in Control – newsBTC

Bitcoin is currently recovering from the $8,512 weekly low against the US Dollar. However, BTC price is still facing many key hurdles near $9,000 and it could resume its decline.

This week, we saw a strong downward move in bitcoin below $9,000 and $8,800 against the US Dollar. BTC price even traded below the $8,680 support level and settled well below the 100 hourly simple moving average.

A new weekly low is formed near $8,512 and the price is currently correcting losses. It surpassed the $8,700 resistance level, and the 23.6% Fib retracement level of the downward move from the $9,281 high to $8,512 low.

On the upside, there are many resistances forming near the $9,000 and $9,200 levels. More importantly, there is likely a bearish flag forming with support near $8,735 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin is currently struggling near the 50% Fib retracement level of the downward move from the $9,281 high to $8,512 low. The first key resistance is near the flag resistance at $9,000.

If the bulls gain strength above $9,000, the next important breakout zone is visible near the $9,200 level and the 100 hourly SMA. Therefore, the price must climb above the $9,000 and $9,200 levels to start a fresh increase in the coming sessions.

If bitcoin fails to correct above the $9,000 and $9,200 resistance levels, it is likely to resume its decline. An initial support is near the flag trend line at $8,735.

A successful break below the flag support could open the doors for a fresh decline below $8,700 and $8,600. In the mentioned case, the price could even decline below the $8,512 swing low.

The next major support and buy zone is near the $8,200 level (as discussed yesterday using the daily chart). In the medium term, bitcoin price is likely to bounce back as long as there is no daily close below $8,000.

Technical indicators:

Hourly MACD The MACD is slowly moving in the bullish zone.

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

Major Support Levels $8,735 followed by $8,500.

Major Resistance Levels $9,000, $9,200 and $9,280.

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Bitcoin is Recovering, But This Key Data Shows Bears Are Still Well in Control - newsBTC

Tron CEO: Bitcoin to Break $100K in 2025 and Pull Up Other Coins – Cointelegraph

Justin Sun, the founder and CEO of Tron (TRX), the 15th biggest cryptocurrency by market cap, is investing in a number of cryptos other than Bitcoin (BTC).

In a Feb. 23 interview with CNN, Tron CEO said that he is a long-term believer in cryptocurrencies and owns a stake in many altcoins, including the two largest coins after Bitcoin Ether (ETH) and XRP.

When asked whether Sun has its crypto portfolio diversified, the Tron CEO answered:

I own a lot of XRP and Ethereum, too. Im like a long-term believer of the crypto so I want all crypto assets to succeed. So thats why I own a lot of other different cryptos as well.

As a major believer in crypto, Sun is bullish on the price of cryptocurrencies and confident that cryptos like Bitcoin are the future of money. In the interview, Tron CEO predicted that Bitcoin will cross $100,000 mark in 2025, emphasizing that other cryptocurrencies will follow the trend.

Justin Suns $100,000 Bitcoin prediction in his own words:

I definitely believe Bitcoin will pass $100K in 2025. I believe we can achieve this price before 2025. At the same time, I think a lot of other crypto projects like Tron, Ethereum and XRP will also see bull market.

In line with his bullish stance on crypto, Trons Justin Sun claimed in the interview that he invests all of his money to crypto. However, Sun still converts his crypto in fiat currencies like the United States dollar. In the interview, Tron CEO said that he only withdraws crypto to fiat when he needs to spend money in his daily life.

The news comes about a month after Sun had his charity lunch with Berkshire Hathaway chairman and known Bitcoin critic Warren Buffett. On Jan. 23, Tron CEO met with Buffett to finally have a long-awaited luncheon after postponing the event for medical reasons previously in 2019.

In the latest interview, Tron CEO revealed that he didnt exactly try to convince the famous billionaire investor that crypto will massively surge in the coming years. Instead, Justin Sun was trying to explain some crypto potentials to Buffett as he wanted him to understand basic fundamentals of blockchain and crypto such as instant crypto transactions.

Tron CEO also outlined that Buffett was very open to new technologies like crypto and blockchain, noting that the the known investor accepted Bitcoin and TRX from him. However, Buffett has claimed that he doesnt own any cryptocurrency and doesnt plan to invest in any crypto in a Feb. 24 interview with CNBC. In the interview, the billionaire investor reiterated his negative stance on crypto, arguing that cryptos have zero value and dont produce anything.

In another CNBC interview in 2018, Buffet predicted that crypto will come to a bad ending, declaring that Bitcoin is "probably rat poison squared.

Cointelegraph reached out to the Tron team for additional comments on the matter and will update if we hear back.

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Tron CEO: Bitcoin to Break $100K in 2025 and Pull Up Other Coins - Cointelegraph

Bitcoins Potential to Benefit the African-American Community – Cointelegraph

The issue of race when it comes to cryptocurrency is a sensitive one, and not without reason. The African-American community is largely born at an economic disadvantage, with a legacy financial system fueled by unethical practices like redlining, among many others. However, cryptocurrencies may give them the opportunity to eventually level the playing field.

Jack Dorsey, CEO of Twitter, is no stranger to controversy himself. His platform currently hosts 330 million people around the world, and his individual followers currently number just over 4.3 million. On Sunday, he used that influence to promote a new book discussing Bitcoins potential benefits to the African-American community.

Bitcoin & Black America, written by Isaiah Jackson, offers an analysis of the role cryptocurrency can play with African-Americans, a group historically underserved by major financial institutions. Yet, the author notes, black people in the U.S. have largely not utilized cryptocurrency to try and achieve financial autonomy.

One of the problems, according to Jackson, is the perception of cryptocurrency among the African-American community. They are not the only ones to see Bitcoin as a scam, with new schemes continuing to exploit lack of regulatory oversight popping up in the news. Misinformation coupled with a lack of banking access has made investing in cryptocurrency a challenge among black people in the United States. Jackson says this must change going forward.

Originally published in July 2019, Bitcoin & Black America received a boost from the recent resurgence of the crypto market. Dorseys endorsement this week may do likewise.

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Bitcoins Potential to Benefit the African-American Community - Cointelegraph

Warren Buffett is ‘completely wrong and outdated’ on bitcoin, Chamath Palihapitiya says – CNBC

Billionaire investor Chamath Palihapitiya disagrees with Berkshire Hathaway chairman Warren Buffett on the value of bitcoin, as Buffett declared earlier this week that cryptocurrencies have "no value."

"He is completely wrong and outdated on this point of view," Palihapitiya said on CNBC's "Squawk Box" on Wednesday.

Buffett thinks that cryptocurrencies "don't produce anything" and have zero value, declaring that he never will own anything like bitcoin. He's long been a critic of bitcoin and has described the digital currency as "rat poison squared," a "mirage," and "not a currency."

Although Palihapitiya disagrees with Buffett on the potential for cyrptocurrencies, the Silicon Valley investor said he still greatly respects Buffett on the whole.

"I think he's an exceptional person. I've learned an enormous amount, both from afar and the few interactions I've had with him," Palihapitiya said.

Palihapitiya has long been a supporter of the digital coin, saying "everybody should have 1% of their assets in bitcoin specifically."

"I don't think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin. That is an idiotic strategy," Palihapitiya said. "I think a reasonable strategy is to say 1% of my net worth should be in something completely uncorrelated to the world and how the world works. You quietly over some period of time accumulate a position and then just never look at it again and hope that that insurance under the mattress never has to come due. But, if it does, it will protect you."

CNBC's Kevin Stankiewicz contributed to this report

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Warren Buffett is 'completely wrong and outdated' on bitcoin, Chamath Palihapitiya says - CNBC

SEC to Decide the Fate of Another Bitcoin ETF Proposal This Week – CoinDesk – CoinDesk

The U.S. Securities and Exchange Commission (SEC) is once again poised to approve or reject a bitcoin exchange-traded fund (ETF), when Wilshire Phoenixs United States Bitcoin and Treasury Investment Trust meets a filing deadline Wednesday.

Wilshire Phoenix is the latest in a long line of companies hoping to secure SEC approval to list shares of a bitcoin-related ETF, and the only one that has an active application before the securities regulator. Such an instrument would allow retail investors to get exposure to the bitcoin market without what some see as the added difficulty of owning bitcoin itself, potentially boosting market participation by individuals wary of bitcoins stance as an unregulated investment.

While its chances are slim the SEC has yet to approve any bitcoin ETF applications for a multitude of stated reasons the company was filing updates to its proposal as recently as last week in efforts to bolster its application.

Wilshire managing partner William Herrmann told CoinDesk that he was optimistic about the filing, saying in a phone call last week that we wouldn't have filed it if we didn't think that it would be approved.

To boost its chances, the amended S-1 filed on Feb. 14 now includes an entire additional section on underwriters, though no specific entities are named. The filing also now includes Wilshire Phoenixs maximum share price ($2,500), a number of shares it intends to register initially (8,040) (though this number is likely to change when the actual shares are being offered) and a note on the trust's fees (68 basis points).

The firm filed the ETF application in mid-2019, with the regulator repeatedly postponing any decision, leading to the final Feb. 26 deadline.

In rejecting ETFs previously, the SEC has pointed to concerns about market manipulation, the bitcoin markets overall size and a need for surveillance-sharing agreements as some factors it considers.

Wilshire is attempting to address these concerns by composing its ETF with a basket that automatically rebalances itself between U.S. Treasury bonds and bitcoin in response to the cryptocurrencys volatility. As volatility goes up, the basket favors bonds, and vice versa.

Herrmann previously told CoinDesk that in his view, this automatic rebalancing reduces the risk to investors.

The SEC certainly appears to be paying attention to the filing. According to public documents, Commissioners Hester Peirce and Allison Herren Lee both met with representatives from Wilshire Phoenix, NYSE Arca and their law firms.

The Division of Trading and Markets met with representatives from the companies in January, as well as twice last year, to discuss the proposal. Still, the SECs thinking on the proposal remains opaque.

Wilshires Herrmann, reiterating a point often brought up in favor of bitcoin ETFs, told CoinDesk the product would allow a wider group of investors to safely access what is essentially a new asset class.

"We want to provide easy access to strategies that are often only limited to institutions or accredited investors, Herrmann said. Restraining who is able to invest in any product or strategy on the basis of socioeconomic status or for any reason is simply wrong. This leaves many exposed to sudden market volatility followed by likely losses due to lack of diversification.

The bitcoin ETF Wilshire has proposed is actually one in a larger family of such products. The company has also filed to issue a gold and Treasury-backed ETF.

Herrmann said he believes creating multiple investment strategies for consumers is a part of its overall strategy.

"We're confident we will have the bitcoin ETF soon, and the gold ETF won't be far behind. We are aiming to launch a lot more products as well, Herrmann said.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Just Saw A Key Technical Breakdown: Here’s Why BTC Could Dive Below $9K – newsBTC

Bitcoin failed to stay above the $9,500 support and declined more than 5% against the US Dollar. BTC price is now trading in a negative territory and it could slide below $9,000.

Yesterday, we discussed high chances of a big downside correction in bitcoin below $9,500 against the US Dollar. BTC did break the $9,500 support area and extended its decline.

Moreover, there was a close below the $9,350 level and the 100 hourly simple moving average. During the decline, there was a break below a bearish continuation pattern with support at $9,225.

It opened the doors for more losses below $9,200. Finally, the price traded below $9,100 and formed a new weekly low at $9,087. It is currently consolidating losses, with an immediate resistance near the 23.6% Fib retracement level of the recent decline from the $9,679 high to $9,087 low.

On the upside, there are many resistances forming near the $9,350 and $9,400 levels. Additionally, there is a major bearish trend line forming with resistance near $9,420 on the hourly chart of the BTC/USD pair.

Bitcoin Price

The 50% Fib retracement level of the recent decline from the $9,679 high to $9,087 low is also near the $9,380 level to act as hurdle for bitcoin bulls.

Therefore, the price must climb above the $9,380 and $9,400 levels to start a fresh increase. Still, the main resistance is near $9,500, above which the bulls are likely to take over.

On the downside, there are a couple of key supports near the $9,000 area. If bitcoin fails to stay above the $9,000 handle, there is a risk of another 5% decline.

In the mentioned case, the price is likely to test the $8,500 support area in the coming sessions. Overall, there are many bearish signs emerging and the price could dive further below $9,000.

Technical indicators:

Hourly MACD The MACD is now gaining strength in the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently near the oversold levels.

Major Support Levels $9,000 followed by $8,500.

Major Resistance Levels $9,280, $9,380 and $9,400.

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Bitcoin Just Saw A Key Technical Breakdown: Here's Why BTC Could Dive Below $9K - newsBTC

Bitcoin Breaks Beneath Rising Trend Line More Bearish Pressure On The Way? – Coingape

Bitcoin dropped by 9.5% this week as the sellers start to take control over the market momentum. It dropped beneath $9,000 a few days ago to reach the current support level at around $8,672.

The cryptocurrency has spiked even further lower but has managed to rebound back above $8,600 to close each day. It also recently broke beneath a rising trend line as the outlook starts to turn bearish.

Bitcoin Price Analysis

BTC/USD Daily CHART SHORT TERM

Looking at the daily chart above, we can clearly see Bitcoin breaking beneath the rising trend line over the past 24-hours of trading. It is currently trading at support at $8,672 which is provided by the .5 Fibonacci Retracement level. The market managed to close above this level yesterday as the buyers battle to regain some form of control.

Bitcoin is still neutral but the recent break beneath the rising trend line is putting it in a tricky situation. A break and close beneath $8,500 will likely to confirm a short term bearish trend moving forward.

If the sellers break beneath the support at $8,672, the next level of support lies at the downside 1.618 Fibonacci Extension level at $8,559. This is then followed by support at $8,500. Beneath this, support is then located at $8,242 (.618 Fibonacci Retracement level), $8,000, and $7,630 (.786 Fibonacci Retracement level).

Toward the upside, resistance is located at $8,800. Above this, higher resistance lies at $8,975, $9,000, $9,270, and $9,500.

Key Levels

Support: $8,672, $8,559, $8,500, $8,250, $8,200, $8,000.

Resistance: $8,975, $9,000, $9,100, $9,270, $9,506, $9,740, $9,975, $9,000, $9,270, $9,500.

Summary

Article Name

Bitcoin Breaks Beneath Rising Trend Line - More Bearish Pressure On The Way?

Description

Bitcoin saw a 9.5% price decline this week as the cryptocurrency slipped below $9,000 to reach as low as $8,500.It recently broke beneath a 2-month-old rising trend line as the market outlook starts to look ever more bearish.

Author

Yaz Sheikh

Publisher Name

Coin Gape

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Bitcoin Breaks Beneath Rising Trend Line More Bearish Pressure On The Way? - Coingape

Bitcoin Price Climbs to $9,500 After Third Higher High in One Week – Cointelegraph

For the second time this week, Bitcoin (BTC) bulls have protested against any attempts to push the digital asset below the $9K mark. Earlier today, the price dropped slightly below $9,200 but the pullback stopped right at the Jan. 19 high at $9,198 before reversing to surge higher on a high volume spike.

Bitcoin daily price chart. Source: Coin360

The move to $9,530 set a daily higher high for the third time this week and traders will note that purchasing volume is also rising higher each day which are all signs that the asset is in a strong bullish trend.

BTC USDT 6-hour chart. Source: TradingView

On the shorter time frame, one can see that the pullback to $9,194 led the price to touch the $9,190 support where the price had bounced twice before further continuation to $9,530 occurred.

BTC USDT 1-hour chart. Source: TradingView

The relative strength index (RSI) has popped into overbought territory on the 4-hour and daily timeframe and there is also a tweezer top on the 1-hour chart. This suggests that the price may pull back for a brief consolidation, but there also appears to be plenty of demand and support at $9,366. Furthermore, this week $9,200 has proven to be a decent level of support.

BTC USDT daily chart. Source: TradingView

Meanwhile, on the daily timeframe, the moving average convergence divergence (MACD) histogram shows increasing momentum and the signal line continues to rise, nearly reaching its previous Jan. 18 high at 400.

In the event that $9,200 gives way as support, the price could drop to the 200-daily moving average (DMA) at $8,900, a level that the volume profile visible range (VPVR) also shows as a point of interest to traders.

On the bullish side, if traders can hold the price above $9,500, the VPVR shows a volume gap from $9,418 to $10,166. If buyers step in to provide consistent volume, we could see the price rise to $10,166 over the short term.

Bitcoin daily price chart. Source: Coin360

The overall cryptocurrency market cap now stands at $261.1 billion and Bitcoins dominance rate is 66.1%. A handful of large-cap altcoins also mirrored Bitcoins gains. Most notably, Litecoin (LTC) rallied 12.96% and EOS is up by 6.44%. Tezos (XTZ) also posted an impressive 6.60% gain.

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Bitcoin Price Climbs to $9,500 After Third Higher High in One Week - Cointelegraph

Bitcoin Aint What It Used To Be, Pioneer Investor Says – Cointelegraph

A millionaire by age 18, early Bitcoin (BTC) investor Erik Finman said the environment around Bitcoin has significantly changed since 2011 and not for the better.

It just aint what it used to be, Finman told Cointelegraph in a message on Jan. 26, 2020.

Recounting the early days, Finman explained:

Bitcoin, when it first came out, was incredible. It wasnt just cutting edge technology - it was bleeding edge! You just felt the energy in the air. That this was the real deal. Everyone felt united in this cause this mission. Those were some of the most beautiful moments of my life.

Finman made headlines over the past several years for his success as a young Bitcoiner. Finman invested $1,000 into BTC in 2011, turning him into a millionaire by the age of 18 due to Bitcoins dramatic price increases, Cointelegraph detailed in June 2017.

In late 2018, however, Finman expressed his thoughts on Bitcoins eventual demise based on several factors, including community infighting, etc.

The atmosphere seen in Bitcoins early days is now gone, Finman told Cointelegraph. Adding to his reminiscence of the assets beginnings, he noted:

[T]hose times of unity & cutting edge technology seem to be left in the past. I really care about Bitcoin - but the community cant seem to get it together in my opinion. Ive tried to get involved within the community to fix it - but it was very hostile. There is still wonderful people in the community and incredibly smart people working on the technology problem.

A popular opinion in the crypto space sees Bitcoin hitting a $100,000 price tag at some point. Finman sees no real chance for a $100,000 or $1 million Bitcoin if the community does not change, barring any drastic global disruptions, he explained.

Even if the world were to destabilize, Bitcoin isnt necessarily THE CRYPTOCURRENCY for people to put their money in, in a time like that, he said, noting Monero and Zcash as potentially better options.

Relating the situation to the death of a popular social media entity, Finman added, Bitcoin is the next MySpace if the community cant make drastic changes.

Finman has been in the Bitcoin game a considerable length of time, so his comments carry weight. Finman first invested in Bitcoin at the age of 12, so his views on the overall situation in 2011 may have differed from adults who bought it at the same time.

Several data points do, however, line up with Finmans comments on community disagreements, including the Bitcoin Cash (BCH) fork in 2017, and the birth of Bitcoin maximalism.

Cardano founder Charles Hoskinson has also expressed issues with Bitcoin. One of the biggest problems with Bitcoin, [...] is that its blind, deaf and dumb and that was by design, Hoskinson said in October 2019 in an interview on Anthony Pomplianos Off the Chain podcast.

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Bitcoin Aint What It Used To Be, Pioneer Investor Says - Cointelegraph

Why Tomorrows Monthly Close In Bitcoin Could Be Its Most Critical Yet – newsBTC

In financial markets, high timeframes are the most important when it comes to technical analysis and influence on the overall trend. The same is true for Bitcoin, and all eyes are on tomorrows January monthly candle close.

Depending on how and at what price point tomorrows candle closes, it could determine Bitcoins trend for the next year or more, suggesting that tomorrow nights daily and monthly close could be the crypto assets most significant yet.

Bitcoin may have bottomed in late December 2019 at a low of $6,400. It started the new year and January 2020 off with another test of $6,800 but has since rallied over 40% to over $9,500 at the current local high.

Related Reading | Bitcoin Price Just Surged Past $9,500 as Traders Predict a Supercharged Rally

However, more upside appears to be ahead, especially if bulls can close tomorrow nights monthly candle above $9,158, according to prominent crypto analysts FilbFilb.

A close above that level would be a new higher high on monthly timeframes, the first box checked that a new uptrend is forming. The second requirement is a higher low, which has yet to be put in yet following a higher high.

But thats not the only bullish factor to consider, according to the analyst.

The MACD is crossing over the zero line suggesting that an uptrend is forming and picking up in strength.

The analyst is among the most respected across the crypto industry, famously calling the price level of Bitcoins bottom based on miner cost of production, and recently called the local bottom at $6,400 based on this same metric.

However, there are even more bullish factors beyond what the analyst is pointing out. In addition to the MACD turning upwards, Stochastic, another trend measuring indicator, is also beginning to turn upward on monthly timeframes, as is the Relative Strenght Index.

Bitcoin is also holding above the mid-Bollinger Band, which could result in a retest of the upper band currently at $11,500.

If Bitcoin closes above even $8,500, it would be a confirmation of a morning star pattern based on Japanese candlestick formations, which is a powerfully bullish reversal structure.

Related Reading | 10 Factors Confirm a New Crypto Bull Market Has Officially Begun

All of these signs suggest that a new bull run is about to begin, but it all hinges on tomorrow nights monthly candle close.

To say that the close is critical is an understatement, as it could be the deciding factor between a new bull market in 2020 or yet another year of bear market.

All eyes will be on Bitcoin price charts tomorrow night. Will the cryptocurrency close above $9,200 and signal a higher high on monthly timeframes? Let us know in the comments below.

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Why Tomorrows Monthly Close In Bitcoin Could Be Its Most Critical Yet - newsBTC

Still Too Early To Declare Longer-Term Bitcoin Trend Change – Forbes

Bitcoin's price has rallied, posting positive price structure, but it is still too soon to declare a ... [+] longer-term trend change, analyst John Bollinger explained. (Photo by INA FASSBENDER / AFP) (Photo by INA FASSBENDER/AFP via Getty Images)

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

January has yielded several bouts of upward price action for bitcoin as the asset looks back on an overall positive start to 2020. John Bollinger, financial analyst, trader, author and originator of the Bollinger Bands technical chart indicator, said he sees positive structure on bitcoins chart, but its too soon to declare a longer-term bullish trend reversal.

Im very constructive on bitcoins price right now, Bollinger told me in an interview on January 27, 2020 while bitcoins held near $8,800. Weve completed a meaningful bottom formation, he added referring to bitcoins price chart.

We broke out, pulled back from very short term, made a little test of the breakout level and rallied higher, Bollinger continued. Bitcoin then proceeded to fall back to the midline of the Bollinger Band indicator before bouncing and heading higher in price, he added.

After starting 2019 below the $4,000 mark, bitcoin experienced an exuberant price run between April and June 2019, taking the asset up past $13,800 per coin by Junes end, according to Coinbases BTC chart on TradingView.com Bitcoins price fell on difficult times in the latter half of 2019, however, posting successive lower rally attempts until the end of the year, signaling the presence of a downward bearish price trend.

In contrast, 2020 so far has yielded positive price action for cryptos pioneer asset. Bitcoin began the year around the $7,000 mark, posting a seeming bottom-like price formation, as Bollinger mentioned. The asset has since rallied in price from its chart bottom near $7,000.

Most recently, bitcoin rose from approximately $7,700 to almost $9,200 on January 19. The coin then fell down to $8,250 by January 24, finding support in that region before rallying to a press time price of $9,265.

Its a pretty constructive pattern, Bollinger said, adding to his initial comments. The expert noted bitcoin formed its price chart base pattern between November 2019 and early January 2020. So far were progressing pretty well, he said.

Bollinger pointed to a tweet he posted on January 23 which expressed that bitcoins pullback to the middle Bollinger Band near $8,300 made sense as a support level.

I pointed out on Twitter a couple days ago that what bitcoin needed to do was hold support here at the middle Bollinger Band, and thats exactly what its done, Bollinger told me.

It held support. Weve had two days of rally now and I think the price of bitcoin looks higher.

Bitcoins recent rally begs the question has cryptos top asset broken its downtrend that began last summer? I think its a little bit early to be convinced of that, Bollinger said.

We just made an intermediate term bottom and just started up we need some more evidence here in terms of a bigger picture, but I think the outlook is pretty constructive right now.

Crypto trader and Brave New Coin analyst Josh Olszewicz (CarpeNoctom onTwitter) expressed similar sentiment on January 28. Well know how bullish we are in two weeks, Olszewicz told me in a Telegram message. Mentioning multiple charting signals, including the Ichimoku Cloud and a moving average golden cross, the trader added, All trend metrics point bullish soon.

Additionally, Olszewicz said his statement applies to the entire crypto market. This is across the board on everything, not just BTC, he noted.

Despite bitcoins exuberant history and optimistic charts, some folks still remain bearish on the asset as a whole, including Berkshire Hathaway CEO Warren Buffett, who called bitcoin a gambling device in 2019, according to a CNBC report.

Disclaimer: I actively trade cryptocurrencies, as well as hold a small amount of BTC, ETH, LTC, XMR, NEO, ZEC, BEAM, BCH, DASH, LINK, XTZ andvarious insignificant other altcoin positions.

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Still Too Early To Declare Longer-Term Bitcoin Trend Change - Forbes

This is the right amount of bitcoin to keep in an investment portfolio – CNBC

eclipse_images | E+ | Getty Images

If you can't beat the crypto crowd, it might be time to join them, experts say.

Virtual currency and its underlying technology, blockchain, are here to stay and that means both will play some role in investors' lives.

"It's actually very hard to decouple blockchain and bitcoin," said Sunayna Tuteja, head of digital assets and distributed ledger technology (DLT) at TD Ameritrade.

She spoke at the TD Ameritrade LINC conference in Orlando, Florida, on Wednesday.

"On the one end, how do we commercialize the value of DLT and blockchain to bring more innovation to traditional markets?" Tuteja asked. "On the other end of the spectrum: How do you tap into this nascent asset class?"

Cryptocurrency at least bitcoin has staying power. "Because there's a fixed number of bitcoin, it's inflation-proof and it's virtually instantaneous," said conference speaker Ric Edelman, founder of Edelman Financial Engines.

Even investors in retirement plans are dipping a toe into the asset class.

In the third quarter of 2019, the Grayscale Bitcoin Trust, which tracks the price of the cryptocurrency, was the fifth-largest holding among millennial investors in Charles Schwab's self-directed brokerage accounts.

Self-directed brokerage accounts are sometimes offered within retirement plans and allow investors to select individual stocks, bonds and other assets that aren't on a 401(k) plan's general investment menu.

Luc MacGregor | Bloomberg | Getty Images

The price of bitcoin surged to its zenith on Dec. 15, 2017, when one unit of the virtual currency was valued at $19,650. The price cratered a year later, slumping to $3,183 on Dec. 14, 2018.

As of Jan. 30, one bitcoin is equal to about $9,300.

Volatility notwithstanding, this virtual currency also carries little correlation with other asset classes investors may hold in their portfolio, including stocks and bonds, Edelman said.

A 1% allocation to bitcoin that is, going from 60% in stocks and 40% in bonds to 59% in stocks, 1% in bitcoin and 40% in bonds -- just might be enough to give investors the benefit of diversification without risking the whole portfolio, Edelman said.

"We need to acknowledge that 1% allocation isn't going to materially harm a client," he said. "It isn't going to prevent them from achieving their financial goals, and won't damage their personal finances."

Oliver Furrer | Cultura | Getty Images

Making a tiny allocation toward bitcoin doesn't absolve investors of the need to do their homework before buying, say experts. They should get schooled on digital assets, as well as the underlying blockchain technology, first.

"Don't consider investing unless you understand the technology," said Edelman. "Otherwise, you're not investing; you're spending."

Investors hoping to jump into the crypto pool should approach it with a long-term mentality and prepare to ride out volatile times including the chance of a 100% loss from that digital currency, he said.

More from FA Playbook:Blockchain's potential will continue to spur investmentHow much investors should invest in alternativesAre collectibles good investments or just hobbies?

Finally, don't forget that if investors acquire, sell or exchange cryptocurrency, they'll need to report it to the IRS. The tax agency treats bitcoin holdings as property, the same way it would regard stocks and other investments.

Cryptocurrency exchanges may provide investors with a Form 1099-K detailing capital gains and losses, but there is no guarantee that they'll get one.

That means it's up to bitcoin owners to track their basis their original investment in the virtual currency -- and their transactions for accurate tax reporting.

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This is the right amount of bitcoin to keep in an investment portfolio - CNBC

Do or Die For Bitcoin Bears: Its The Most Critical Period For BTC – newsBTC

Bitcoin corrected lower, but stayed above the $9,150 support against the US Dollar. BTC bears need to push the price below $9,150 or the price could rally above $9,500.

After a strong upward move, bitcoin found resistance near $9,400 against the US Dollar. Recently, BTC corrected lower below the $9,350 and $9,300 levels, but the bears struggled to gain strength.

There was a break below the 23.3% Fib retracement level of the key upward move from the $8,875 low to $9,426 high. The price even spiked below the $9,200 support level.

However, the bulls remained active above the main $9,150 support. It seems like the 50% Fib retracement level of the key upward move from the $8,875 low to $9,426 high acted as a strong support.

More importantly, this weeks important bullish trend line is intact with support near $9,210 on the hourly chart of the BTC/USD pair. Bitcoin price is currently rising and it is trading above the $9,300 level.

Bitcoin Price

The first key resistance is near the $9,420 area. If the bulls manage to surpass the $9,420 level, there are high chances of a clear break above the $9,500 resistance area. In the mentioned case, the price is likely to surge towards the $9,880 and $10,000 levels in the coming sessions.

On the downside, the trend line support near $9,210 is the first important support. The main support is near the $9,150 level.

If bitcoin bears succeed in clearing the $9,150 support, the price is likely to start a larger decline towards the $8,860 support level or the 100 hourly simple moving average. An intermediate support is near $9,000 or the 76.4% Fib retracement level of the key upward move from the $8,875 low to $9,426 high.

Technical indicators:

Hourly MACD The MACD is likely to move back into the bullish zone.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently rising and it is just above the 50 level.

Major Support Levels $9,150 followed by $9,000.

Major Resistance Levels $9,400, $9,425 and $9,500.

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Do or Die For Bitcoin Bears: Its The Most Critical Period For BTC - newsBTC

Bitcoin Rallies to Near $9150 as Stocks Drop Over Coronavirus Fears – Coindesk

Bitcoin is maintaining its upward trajectory as coronavirus-led risk aversion hits the traditional markets.

Thetop cryptocurrency by market value crossed the 200-day moving average at $9,000during Tuesday's Asian trading hours and rose to a high of $9,150, pushing thecumulative month-to-date gains to over 25 percent.

At press time, bitcoin is changing hands at $9,061. Despite the minor pullback from the morning's high, the cryptocurrency is still reporting a 4.8 percent gain on a 24-hour basis, and is up roughly $700 from lows near $8,250 observed over the weekend, according to CoinDesk's Bitcoin Price Index.

While bitcoin has kicked off the week on a positive note, stock markets across the globe are facing selling pressure.

Notably, the Dow Jones Industrial Average fell by more than 450 points on Monday with travel-related shares suffering sharp losses on fears the coronavirus outbreak in China could spread globally, hurting worldwide economic growth.

The virus, which first appeared in the Chinese city of Wuhan, is spreading fast. It has so far claimed more than 100 lives in China and the number of confirmed cases increased to 4,515 on Tuesday from 2,835 on Monday, according to the National Health Commission.

With bitcoin outperforming stocks amid the coronavirus scare, a few experts are convinced the cryptocurrency is drawing haven bids more so, as classic safe-haven asset gold has risen by just 0.65 percent so far this week.

The safe-haven argument, however, is not strong, according to prominent analysts like Alex Kruger. "Keep in mind that until Friday the narrative was 'Coronavirus pushing bitcoin lower'. It now is 'Coronavirus pushing bitcoin higher.' Some people try very hard to create narratives," he tweeted Tuesday.

Moreover, bitcoin picked up a strong bid below $7,000 at least two weeks before Chinese authorities placed Wuhan under quarantine on Jan. 23, sending equity markets into a tailspin, and has extended the rally over the last two days.

In fact, the virus outbreak could ultimately have a negative impact on crypto markets, Jason Wu, CEO and founder of non-custodial crypto lender DeFiner, told CoinDesk earlier this week.

Many Chinese crypto retailers tend to cash in on cryptocurrencies right before the Chinese New Year holiday and reinvest in the market in the next year, Wu said. With the virus outbreak, that money may not return to crypto markets, possibly leading to a price drop.

From a technical perspective, bitcoin is looking heavy and could suffer a minor pullback in the next 24 hours.

Hourly chart

The relative strength index charted a bearish divergence (lower highs) earlier on Tuesday, signaling bullish exhaustion, and dived out of an ascending trendline to indicate an end to the rally from lows near $8,250.

The MACD histogram is printing deeper bars below the zero line, indicating a strengthening of downside momentum.

4-hour chart

The current four-hour candle is flashing red, validating the buyer exhaustion signaled by the preceding inside bar candle, which occurs when the specific period's price action falls within the preceding period's trading range.

The RSI has also rolled over from the overbought (above-70) region, signaling scope for correction.

Both the hourly and four-hour charts are indicating the cryptocurrency could revisit the former resistance-turned-support at $8,793-$8,750 (horizontal lines on the four-hour chart).

A violation there would expose the next support at $8,530. If that level holds, bulls might breathe a sigh of relief and another attempt higher could be initiated targeting resistance at $9,000.

The odds of a pullback to $8,750 would weaken if the cryptocurrency finds acceptance above $9,150 during the U.S. trading hours. In that case, the recent high of $9,188 will likely be scaled.

It's worth noting that longer duration charts are aligned in favor of the bulls. So, pullbacks, if any, could be short-lived.

Disclosure:The author holds no digital assetsat the time of writing.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Rallies to Near $9150 as Stocks Drop Over Coronavirus Fears - Coindesk

Bitcoin Eyes Best January Close in 7 Years After 30% Price Increase – Coindesk

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Bitcoin appears set to register its best January price gain in seven years and could soon rise into five figures.

The top cryptocurrency by market cap is currently trading at $9,350 a hefty 30 percent gain from the opening price of $7,160 observed on Jan. 1, according to CoinDesk's Bitcoin Price Index.

If the gain is held through Jan. 31, it would be the best starting month to a year since 2013. Back in January 2013, bitcoin had rallied by 54 percent.

From 2015 to 2019, bitcoin has posted losses in January. The cryptocurrency now looks certain to snap that losing streak. The 30 percent rally is the second-best January performance on record.

Bitcoin picked up a strong bid at lows near $6,850 in the first week of this month and rose past $8,000, exiting a six-month-long downtrend. Notably, the breakout happened as the U.S. and Iran came close to war, forcing the analyst community to take note of the cryptocurrency's strengthening safe-haven appeal.

Since then, we've seen a textbook bull move: a steady uptrend with regular low-volume pullbacks testing dip demand.

The price rise is in line with historical data showing the cryptocurrency hits a new market cycle top (the highest point from the preceding bear market low) in the calendar year of a miner reward halving, but before the event, as discussed earlier this month.

With history looking to repeat itself, a further rise to levels above the June 2019 $13,880 before the May 2020 halving (supply-cutting event) cannot be ruled out.

For now, the technical charts do indicate scope for a move above the psychological resistance of $10,000.

Weekly chart

The falling channel breakout confirmed in the first week of January validated a bullish crossover of the 50- and 100-week moving averages (MAs) and opened the doors for a test of resistance at $10,350 (October high).

Supporting the bullish case are the ascending five- and 10-week MAs.

Additionally, the MACD histogram has crossed above zero, confirming a bearish-to-bullish trend change, while the relative strength index is on an upward trajectory and is reporting bullish conditions with an above-50 reading.

Daily chart

Bitcoin printed a UTC close above $9,188 (Jan. 19 high) on Tuesday, establishing a fresh higher high and signaling a continuation of the rally from the Jan. 3 low of $6,850.

More importantly, the move saw bitcoin cross the 200-day moving average (MA) with a positive "marubozu candle," which comprises of little or no wicks and a strong body.

The candle indicates buyers remained in control during the 24-hour period and the cryptocurrency closed near the high point of the day. While bitcoin did see a minor pullback to $8.870 during the U.S. trading hours, the dip only ended up recharging the bulls for a strong move higher.

The positive marubozu candle indicates that bullish sentiment is strong more so, in this case, as it shows buyers stepped without any hesitation despite prices trading close to 200-day MA, which acted as stiff resistance on Jan. 19.

Some investors may point out that bitcoin's break above the 200-day MA in October turned out to be a bull trap. But back then the overall market sentiment was bearish, with the cryptocurrency trapped in a bearish channel on the weekly chart.

Overall, the broader trend is bullish, as noted. The stage now looks set for a quick move into five figures. Pullbacks cannot be ruled out, though, and the case for a quick rise to $10,000 would weaken if prices fall back below the 200-day MA at $8,894 on the back of a spike in trading volumes.

The weekly chart will continue to paint a bullish picture as long as prices are holding above $8,000.

Disclosure: The author does not currently hold any digital assets.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Bitcoin Eyes Best January Close in 7 Years After 30% Price Increase - Coindesk

Theres Something Very Strange Going On With Bitcoin Exchange LocalBitcoins – Forbes

Bitcoin exchange LocalBitcoins, often used as a gauge of bitcoin interest and prices around the world, has suddenly begun suspending long-time users' accounts without warning.

Reports began coming in this week that LocalBitcoins users across Africa, the Middle East, and Asia have had their accounts "deactivated."

Bitcoin users around the world have complained that LocalBitcoins has suddenly suspended their ... [+] accounts without explanation.

Messages seen by this reporter were sent to account holders by LocalBitcoins in countries including Afghanistan, Iraq, Nigeria, Syria, and Pakistan informing them they could "withdraw [their] bitcoins by deleting [their] account," though some users have claimed to be unable to do so.

LocalBitcoin, a peer-to-peer bitcoin exchange which was founded in 2012 and is headquartered in Helsinki, Finland, was unable to be reached for comment.

"One of my customers was due to travel out of the country and had to sell some of his bitcoin to be able to go only to notice on his way to the airport that he cannot even access his funds," said one LocalBitcoins user of three years in Nigeria, who wanted their identity to remain anonymous, adding their account had been suspended on Monday morning with no indication of when it might be reactivated.

According to the message received by users, LocalBitcoins now requires users in some countries to go through an "enhanced due diligence process," though LocalBitcoins has given no indication of what that process is or when details will be made clear.

Some reports have suggested the suspensions are a result of strict new European Union anti-money laundering regulations that came into effect this month, requiring bitcoin and cryptocurrency platforms and wallet providers to identify their customers.

However, LocalBitcoins, which has a reputation as being a relatively anonymous way for bitcoin users around the world to buy and sell bitcoin, claimed to have complied with the new legislation early last year, giving it ample time to verify users' identities ahead of the changes taking effect this month.

The regulatory changes have been blamed for bitcoin trading volumes on LocalBitcoins falling sharply in recent months, with reports suggesting bitcoin volume on the site fell by around 70% between September and November 2019.

In an interview last year, LocalBitcoins chief executive Sebastian Sonntag said the exchange was signing up between 4,000 and 5,000 new users per day but warned "changes" to the site have "had an impact on overall trade volume."

"We expect the situation to become more stable in the following weeks and improvements in the verification flow should also influence positively," Sonntag told finance trade site LearnBonds.

Meanwhile, other major bitcoin and crypto exchanges have been struggling with declining volumes over the last year, sparking fears the market could be on course for a correction.

The bitcoin price has climbed over the last 12-months but declining trade volumes have some worried. ... [+]

Bitcoin and cryptocurrency exchanges around the world have long struggled with hacks, data breaches, and theftswith many millions of dollars worth of bitcoin and other cryptocurrencies lost.

Last year, hackers stole around $28,000 worth of bitcoin from users' LocalBitcoins accounts.

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Theres Something Very Strange Going On With Bitcoin Exchange LocalBitcoins - Forbes

Bitcoin Breaks 7-Month Downtrend But Must Clear These Hurdles to $10K – Cointelegraph

The price of Bitcoin (BTC) found strong support at $8,200 last week, after which it started to rally toward $8,800 earlier today.

Alongside with that, the total market capitalization of crypto found a support at $215 billion and starting to look bullish. Will this mean that the correction is over, and crypto is trending upwards?

Crypto market daily performance. Source: Coin360

Bitcoin is still trending upwards since the low at $6,500, as previous resistance zones have become support. A recent example is showing a bounce on the green area, which is the $8,200 level. This type of bullish support/resistance flips is a common occurrence in an uptrend market.

BTC USDT 1-day chart. Source: TradingView

A break below $8,200 would have demonstrated weakness, as that level would not have provided enough buying pressure and support. Losing such a level would usually have been followed by a continuation downwards. An example is found after the push to $10,000 in November 2019.

The chart is also showing a clear breakout from the 7-month downtrend. A retest was done at $7,600, after which the price of Bitcoin rallied towards $9,200 for temporary resistance.

BTC USDT 4-hour chart. Source: TradingView

The 4-hour chart of Bitcoin is showing a healthy support/resistance flip at $8,200, after which price broke through the $8,500 resistance. Currently, the price of Bitcoin is facing the next resistance at $8,800.

However, its quite unlikely to see an immediate breakthrough at this level as the indicators on smaller time frames show exhaustion of this upwards move.

Additionally, some significant resistances are shown on the chart, i.e. $9,000 and $9,200-9,400, which are two hurdles to overcome if the price of Bitcoin wants to continue moving upwards.

On the support side, a retest of $8,500 looks quite healthy for confirmation of new support. Range-bound movements are now likely to happen if price cant break through $8,800 or drop below $8,500.

Total market capitalization cryptocurrency chart. Source: TradingView

The total market capitalization of cryptocurrencies is showing an essential bounce from the blue zone (level around $217-218 billion). A retest there was quite healthy as anticipated in a recent article.

This retest is now completed and shows intense buying pressure as the total market capitalization has already rallied up to $238 billion. This retest also indicates confirmation of the uptrend with the total market cap breaking the 7-month downtrend as well.

The first hurdle to overcome now is the $247 billion level. If that is broken, continuation towards $270 and $300 billion is likely to occur.

The total market capitalization chart of altcoins is looking healthy The market cap rallied from $52 billion to $80 billion. Only a slight retracement occurred to $71 billion, which means that it is stuck in a narrow range.

Total altcoin market capitalization chart. Source: TradingView

If we check the rest of the chart, we can spot many tests of the $80 billion level in recent months. Around three tests have happened prior to this latest one, which means that the resistance should become weaker.

Remember, the more times a resistance gets tested, the more exhausted sellers will get, and the weaker a resistance becomes. On the other hand, this also happens with support zones. The $6,000 support of Bitcoin in 2018 was tested many times before it broke down.

Given that these tests of the $80 billion level occurred quite frequently, a breakout to the upside is the most likely scenario at this point, meaning that the altcoin market cap could rally towards $120 billion.

BTC USDT 4-hour chart bullish scenario. Source: TradingView

The most bullish scenario would be a clear breakout of $8,800 and a continuation from there. However, as stated earlier, I find it unlikely to see such a move occur in one go.

A retest and consolidation would be more likely including a likely retest of the $8,500. This is healthy and would be almost required before the price of Bitcoin can continue to face higher resistance levels.

If Bitcoin can hold the $8,500 area for support, I see a breakthrough of the $8,800 and $9,000 as likely, after which $10,000 will become the primary target. Moreover, clearing $10,000 could bring the price of Bitcoin towards $11,000 as well.

BTC USDT 4-hour chart bearish scenario. Source: TradingView

Typically, the bearish scenario has a similar pattern in the beginning, as BTC needs to be rejected at the $8,800 level. However, the difference is in the subsequent pattern.

If the price of Bitcoin is to make lower highs with weak bounces, the downward trend is likely to resume. If this occurs, Id be aiming for bearish retest (support/resistances flips) of the $8,500 level as a potential short opportunity. The main target would then be the $7,600 area.

But first, the price needs to be rejected at $8,800-9,000 to get these scenarios going. Overall, the $8,100 support/resistance flip doesnt say that were bearish at this point. Especially, since that price has broken at a 7-month downtrend.

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

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Bitcoin Breaks 7-Month Downtrend But Must Clear These Hurdles to $10K - Cointelegraph

Bitcoin Price Indicator That Called 2019 Bull Run Flashes Green Again – Cointelegraph

Bitcoin (BTC) plans to move higher and further squeeze bears in the short term, several price indicators suggest.

As the week begins, a group of measurements some surprisingly accurate historically are combining to make traders firmly bullish on BTC.

Leading the positive signs is a useful but somewhat forgotten indicator dubbed the Guppy. This is a collection of exponential moving averages which has flashed green on the daily chart for the first time in around 300 days.

The interval is significant the last flip from red to green for Guppy was on April 9, 2019, coinciding with Bitcoins rapid rise to highs of $13,800.

Before that, Guppy also turned bullish on Jan. 14, 2018, when Bitcoin briefly rose above $9,000 on the way down from the all-time high a month earlier.

Bitcoins Guppy indicator bull and bear phases. Source: Hsaka/ Twitter

A second sign that bullish momentum is building for Bitcoin lies in the so-called Puell Multiple.

Used to identify the cryptocurrencys price cycles, the tool allows traders to tell from a miners perspective when the value of newly-mined Bitcoins is historically too high or too low.

Puell spiked during the 2017 highs, bottoming a year later in January 2019 when BTC/USD traded at under $4,000.

At present, the indicator suggests Bitcoin is significantly closer to the too low area than its lifetime highs.

Bitcoin Puell Multiple with peaks and troughs highlighted. Source: Glassnode/ Twitter

Zooming in, steady enthusiasm is already creeping into traders forecasts once again. For regular Cointelegraph contributor Michal van de Poppe, current action means $8,000 has now formed a fresh support level.

BTC/USD has gained around 3.8% since Friday, having bounced off local lows around $8,200.

Nice breakthrough of $8,600 level and we're back in the range. This means that the $8,000-8,100 level has now flipped as support, he summarized in a Twitter update on Jan. 27.

Van de Poppe continued:

Eyeing to see a retest of $8,500. Holding that and we can aim for $8,900.

A classic guidance signal for Bitcoin comes in the form of the Mayer Multiple, which is also firmly supportive of Bitcoin as a buying opportunity this week.

The brainchild of Proof of Keys organizer, Trace Mayer, the Mayer Multiple divines to what extent it is profitable to buy Bitcoin at a particular time.

To arrive at its conclusions, it uses the current Bitcoin price versus its 200-day moving average. When the multiple is below 2.4, Mayer says, long-term Bitcoin buys saw the best long-term results.

The current multiple is 0.97 and has been higher 63% of the time since Bitcoin was created eleven years ago.

Bitcoin Mayer Multiple with 2.4 boundary highlighted. Source: Mayermultiple.info

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Bitcoin Price Indicator That Called 2019 Bull Run Flashes Green Again - Cointelegraph


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