BITCOIN BEARISH TREND MAY BE OVER VERY SOON

Trends tend to be reversed. The year of 2018 has seen Bitcoin (BTC) demonstrate both its volatility and bearish nature. However, the second half of 2017 the crypto community witnessed the exact opposite. What does the remainder for 2018 have in store?

BITCOIN LAST WEEK

Bitcoin’s price $6287.77 +0.18% bounced around due to FUD regarding a hack on Binance and positive news about Coinbase’s announcement of Coinbase Custody. Launching the service was great for the crypto-community because institutional capital will now have an easier route to enter the market.

This will not only bring more legitimacy to the market, but it also helps boost prices through increased demand. Unfortunately, right after Coinbase’s positive announcement, FUD came out of every corner of the crypto-communities reporting channels of a hack on Binance. While there was an unethical trading strategy going on with the SYS token, it was not an actually a hack and funds were ‘safu.’

Binance came out of the FUD unscathed as they were not at fault as they handled the situation as proactively as could be expected. Even so, whenever there is wide-spread news of a hack on a large exchange, the public sentiment rapidly plummets along with the price of Bitcoin.

That is where Bitcoin started this week. While the trend analysis tools leaned towards the bearish market ending, it may, unfortunately, be deciding to stay bearish until early August.

THIS WEEK

The cryptocurrency market had lost twenty-two billion USD in valuation (across all cryptocurrencies) as Bitcoin dropped to under $6,400. Frequently, when such a bear market trend begins to show, a corrective rally comes stampeding through the market. However, this was not the case this week.

Over the last 24 hours, the cryptocurrency market has not shown any positive momentum that would foreshadow such a corrective rally. On July 10, Ethereum $437.501 +0.38% had an exceptionally large drop, dropping more than five percent of its value against the US dollar.

While most cryptocurrencies, both large and small hard caps, tend to follow Bitcoin’s current trend, the current drop in the value of ETH may not be correlated to Bitcoin as ETH has other issues going on. (MyEtherWallet (MEW) and the Bancor scandal).

While this negative news pertained more to Ethereum than it did to Bitcoin, the mainstream public tends to look at the entire crypto-market as one. When one large crypto has negative news, it impacts the entire industry.

AN OPTIMISTIC FUTURE

Blockchain technology is continuing to show an increasing amount of societal applications and more countries are continuing to adapt to this evolving technological world we are living in today. Positive events and news continue to emerge discussing the regulatory infrastructure surrounding cryptocurrencies in leading markets and countries like South Korea, Japan, and many more. Recently, South Korea acknowledged that both cryptocurrencies and blockchain companies are legitimate industries.

Major exchanges in the United States, such as Coinbase, have established solutions to allow institutional investors a smoother way of entering the crypto-market. Coinbase has over twenty billion dollars in cryptocurrencies on its exchange and a user base of over twenty million on its platform. After seeing the profits in the market, these giants likely to join the market and pump their financial resources into the crypto-industry.

As Conbase’s Custody service just launched last week, the vast amounts of institutional money have not had the time to enter the market yet, and therefore, the market has not shown a reaction from a massive flow of incoming capital.

However, the most important date in the upcoming three months for the entire crypto space is pegged for the SEC hearing on Bitcoin ETFs scheduled for mid-August.

The CBOE applied to allow ETFs entrance into purchasing BTC directly (this is vastly different than future contracts). When the CBOE received approval to begin trading futures contracts of BTC last year BTC ended its bear market and rallied from under $2,000 to $20,000.

The SEC has denied every application for ETF market entrants for the prior 8 years. If they approve the CBOE (which should be expected given the CBOE has met the stringent requirements set forth by the SEC), it is likely the same trend from last year occurs.

The SEC has denied prior ETF applicants due to their lack of insurance and lack of infrastructure, the CBOE has met both these requirements. If the SEC were to approve a party to begin ETF purchasing of crypto, whom better than the CBOE? The bear market should begin to rebound due to ETFs entering the crypto market, along with hundreds of billions of dollars in institutional money.

While the crypto-community wants to see a rebound and there are many reasons to be optimistic, the market is still showing a strong bearish trend. The continued positive global awareness and acceptance will lead to more successful projects and decentralized applications stemming from the blockchain community, which will result in a rising Bitcoin value.

As more and more cryptos prove to be secure, transparent and successful, there will likely be a rally in the next few months. Experts predict that this rally will not happen until the fourth quarter of 2018 unless the SEC does approve ETF entrance into the crypto space (which if I were a betting man, I’d say the CBOE meets the stringent SEC requirements).

JAKETHECRYPTOKING · @JBTHECRYPTOKING | JUL 14, 2018 | 17:00

David

ZCASH Mining 400% More Profitable Than Bitcoin (BTC)

ZCASH Mining 400% More Mrofitable Than Bitcoin (BTC)

Zcash (ZEC) is currently the most profitable cryptocurrency for those into crypto mining, with a Return of Investment that far outperforms any other token in the market, including those cryptos with the largest market cap such as BTC, ETH or BCH.

Miners to turn off equipment in Crypto HourAccording to data provided by Anything Crypto, Zcash miners using an Antminer Z9 Mini can expect a return on investment of almost 100% even in the most skeptical scenarios.

To put the calculations in perspective, the second most profitable crypto is Ether. Mining it with an Antminer E3 would yield a return of $1212 in one year, which represents a 151 ROI given that the miner has a cost of $800. The Z9 Mini which costs USD 2k would generate USD 6881, resulting in a 344% profit. Such figures depict the most optimistic scenarios.

The calculations made by anything crypto provide 3 different situation

A current scenario: In which there is absolutely no change. It is taken for reference purposes
An optimistic scenario: 15% difficulty increase monthly and a 10% price increase monthly
A pessimistic scenario: 40% difficulty increase monthly8% price increase monthly

Zcash: A Nice Opportunity

The mining of cryptocurrencies began as a hobby for enthusiasts, however, after the exponential increase in its use, it became increasingly lucrative to the point of becoming one of the business par excellence in the world of cryptocurrencies, competing directly with trading.

The PoW coin mining business has specific particularities that must be taken into account when investing in an ASIC or Mining Rig. The first of these is the mining difficulty.

The difficulty makes it possible to establish certain stability in the cryptocurrency avoiding an excessive number of block validations to decrease the value of the tokens or a lack of validation, which is equally damaging.

When the speed of validtions increases, the blockchain algorithm increases its difficulty, making it necessary to work harder to “mine” a block. The same is right in the opposite case.

This is the reason for the different scenarios put forward by Everything Crypto. But in all of them – at least for now – Zcash is the winner regarding profits.

For those who have a preference for BTC, the most profitable ASIC is the GMO B2 while for ETH it is worth buying an Antminer E3. Interestingly, the Antminer S9, Bitmain ranks 8 flagship team while its improved version, the S9i is ranked 6th.

By Jose Antonio Lanz Last updated Jul 14, 2018

David

Bitcoin Price Defends $6K As Upside Potential Builds

Bitcoin (BTC) may be up slightly at the start of Friday's session, but it remains to be seen if it can build traction above $6,000.

The world's largest cryptocurrency by market capitalization is now down 37 percent from its May 5th high at $9,996 according to CoinDesk's Bitcoin Price Index, though it's rebounded to a crucial support zone at $6,235, according to Bitfinex data.

The figure is notable, as it could be argued bitcoin needs a daily close above the previous low at $6,070 to abort bearish outlook for the coming week. This would provide greater confidence to the market as a whole, and could possibly spark another minor bullish revival seen over the last eight days.

And so far in today's session, it appears a bullish reversal pattern might be playing out.

The inverse head and shoulders pattern as reported by CoinDesk yesterday continues to remain in play as the bears were unable to push the right shoulder below the neckline located at $6,064, adding to the strong possibility of a head-and-shoulders reversal.

Daily chart

Provided the H&S pattern stands, the Fibonacci Retracement tool (taken from previous high on May 5 to July 12 bottom of the current bullish reversal candle) shows significant resistance awaits at $6,400, $6900, $7,021 and $8,046.

The 55 exponential moving average (red line) also remains well above the current price, which suggests the troubled crypto remains bearish in the long term until prices start to crash through the crucial $7,000 resistance zone.

Further, the channel between $6,070 and $7,012 remains an incredible uphill battle for the world's most infamous digital cryptocurrency.

Relative Strength Index (RSI)

The Relative Strength Index (RSI) on the daily so far offers some solace to back the current H&S reversal which is currently bouncing from the 41.8 point line, previously seen as resistance.

If it holds above and remains within the channel (between 41 and 53) another attempt to push toward previous resistances at $6,472 could be possible.

View

Bitcoin risked falling below the current inverse H&S neckline around $6,073 but has since recovered slightly to keep the pattern in play.
RSI has yet to dip significantly – adding room for further upward momentum
Acceptance below $6,000 would invalidate bullish technical setup.
Bulls would like acceptance above $6,400 to abort short-term bearish perspective.

Author Sebastian Sinclair Jul 13, 2018 at 03:00 UTC

David

Bitcoin (BTC) Price Analysis: Range-Bound Action?

Bitcoin is consolidating at the middle of its range in what seems to be a continuation signal.

BITCOIN PRICE ANALYSIS

Bitcoin has found support at the $5,800 handle and resistance at $6,800 but is currently sitting right at the middle. Price seems to be stuck in a bearish flag, which is often considered a continuation signal.

In that case, bitcoin could tumble back to the bottom of its range to test support before buyers return. The 100 SMA is below the longer-term 200 SMA after all, so the path of least resistance might be to the downside. In addition, both moving averages appear to have held as dynamic resistance levels.

However, the gap between the moving averages has narrowed to signal weakening bearish pressure and a potential upward crossover. In that case, bullish momentum could return and push bitcoin price back to the resistance.

Pic

In that case, the inverse head and shoulders could be completed and a break past the range resistance or neckline could spur an even longer-term rally.

RSI reached oversold levels and has started to pull up, also hinting at a return in bullish momentum. Stochastic just made its way to oversold territory and has yet to turn higher.

Bitcoin is on the back foot once more, erasing almost half the gains posted in the previous week on negative commentary and overall risk aversion. Trade tensions are worsening, boosting demand for the safe-haven dollar even as retaliatory measures could hurt its economy.

Hawkish commentary from Fed official Evans also helped shore up demand for the dollar as he expressed support for two more hikes this year, after previously dissenting the December 2017 hike. This also supported investor confidence that the US economy can weather any uncertainties from trade troubles as Evans acknowledged the strong support from fiscal policy.

Traders are now holding out for further catalysts, whether it be more negative remarks that push it back down or positive developments in the industry.

By Rachel Lee On Jul 12, 2018

David

Bitcoin is the best bet for cryptocurrency investors, says Wall Street trader

Bitcoin, with its established use cases, is still the best bet for investors, says Bart Smith of Susquehanna International Group.
The Wall Street crypto trader says bitcoin is the currency of the internet.

Bitcoin is still the best bet for crypto investors as people are "functionally using" it, Bart Smith told CNBC.

"If you want to own the asset that you can actually use today and that people are functionally using, it’s bitcoin," Smith, head of digital asset at trading giant Susquehanna International Group, said on "Fast Money" Tuesday.

"The use case for bitcoin is valid today, which is the currency of the internet," he added.

Bitcoin, the largest cryptocurrency by market cap, has been just one of many digital coins in the crypto universe that has been under increased scrutiny in recent months as regulators try to determine how cryptocurrency should be used.

But the fact that bitcoin has established use cases is what gives it the competitive advantage over other cryptocurrencies, Smith said.

Last fall, when bitcoin futures were announced, "people got very excited about bitcoin," he said. "They got really excited about all these other tokens and use cases. And all of the sudden you saw all of these smaller tokens, as people got excited about them, massively outperform. We got way ahead of ourselves."

"If you’re looking at these other use cases, smart contracts, or lightning network or these different technological advancements, I think people are coming to realize, those things are very difficult and aren’t coming anytime soon," Smith said.

He pointed out that a lot of people work in one country and send money back to a different country — a situation that is very bitcoin-friendly.

"They use Western Union, traditional banks; It is slow and it is expensive," he said. "And there are people that can stop you from sending that money, whether that's good or bad. With bitcoin, I can send money. It's fast. It's cheap. And frankly, no one can stop me."

Bitcoin was priced around $6,300 Tuesday evening, 5:30 p.m. ET. Bitcoin fell below $6,000 in June — a 60 percent loss for 2018. At its high, in December 2017, it was priced around $19,500.

Author Kellie Ell

David

Bitcoin (BTC) Price Watch – Ascending Channel Below Major Support

Bitcoin Price Key Highlights

Bitcoin price has formed higher lows and found resistance at the $6,785 level to create an ascending triangle.
Price is testing the pattern’s resistance, which lines up with the broken long-term support visible on the 4-hour chart.
Technical indicators are suggesting that the ceiling could hold for now.

Bitcoin price is testing the top of its ascending triangle pattern, but technical indicators suggest resistance might hold.

Technical Indicators Signals

The 100 SMA is still below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. This means that the selloff is more likely to resume than to reverse or that resistance is more likely to hold than to break. With that, bitcoin price might need to revisit the triangle support before attempting another break.

Then again, it’s worth noting that bitcoin price is already trading above the moving averages, which reflects a pickup in bullish pressure. The gap between the moving averages is narrowing so selling pressure is slowing. A break past the triangle top could lead to a move of around $1,000 or the same height as the chart pattern.

RSI is turning lower to indicate a return in selling pressure, possibly enough to take bitcoin back down for a test of the short-term floor, which is also near the 100 SMA dynamic inflection point. Stochastic is also pointing back down without even hitting overbought conditions, which could also mean that bears are eager to return.

Market Factors

Bitcoin price has had quite a good run in the earlier week, which reflects a pickup in industry optimism. However, it could all hinge on whether or not the mood is sustained this week, likely by a set of positive updates or no negative headlines.

Meanwhile, the dollar could take its cue from the US CPI report and the usual set of trade war updates. A positive performance in stock markets, however, could also draw traders back to traditional markets and away from bitcoin.

SARAH JENN | JULY 9, 2018 | 5:00 AM

David

Bitcoin (BTC) Price Analysis – Next Potential Ceilings

Bitcoin previously broke below a symmetrical triangle and might be due for a retest.

BITCOIN PRICE ANALYSIS

Bitcoin was moving south since breaking below the bottom of a long-term symmetrical triangle. Price has been climbing recently and might be due for a pullback to the former support area.

Applying the Fibonacci retracement tool on the latest swing low and high shows that the 50% level lines up with the broken triangle support. This is also close to the 100 SMA dynamic inflection point.

On the subject of moving averages, the 100 SMA is safely below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse.

RSI is still heading north so bitcoin could follow suit until the oscillator reaches overbought conditions and turns lower. Stochastic is closer to the overbought region and might reflect bullish exhaustion soon. In that case, the 38.2% Fib might already be enough to keep gains in check and push bitcoin back to the swing low.

A larger correction, on the other hand, could find its way up to the 61.8% Fib at $8,400. A move past that area and the 200 SMA could be enough to confirm that bulls have the upper hand.

Bitcoin is holding on to its positive start this quarter, although many still have doubts that the rallies could be sustained. For one, this could be a much-needed relief rally from the earlier decline and investors are simply holding out for the next set of catalysts.

In the meantime, the spotlight could shift to the US dollar as the FOMC will release the minutes of its latest meeting ahead of the NFP report. Hawkish expectations could drive the dollar higher across the board while downbeat data could leave bitcoin poised to take advantage.

Apart from that, any headlines pertaining to stricter regulation or another security incident on an exchange could revive the declines in bitcoin.

By Rachel Lee On Jul 5, 2018

David

Bitcoin (BTC) Price Analysis – Ready To Breach Next Area Of Interest

Bitcoin (BTC) Price Analysis – Ready To Breach Next Area Of Interest?

Bitcoin is heading further north and is approaching the next major area of interest.

BITCOIN PRICE ANALYSIS

Bitcoin appears to be starting a climb on its short-term time frames but has yet to break past this major area of interest to sustain the uptrend. On the 4-hour chart, technical indicators are suggesting that there’s a chance for the downtrend to resume.

For one, the 100 SMA is safely below the longer-term 200 SMA to signal that the path of least resistance is to the downside. This means that the selloff is more likely to carry on than to reverse.

Stochastic is turning lower after hitting overbought levels, which means that selling pressure is returning while buyers take a break. Similarly RSI is heading south so bitcoin could follow suit and revisit the swing low around $5,750.

Price has broken past the 100 SMA near-term dynamic resistance to show a bit of bullish momentum but has yet to contend with the 200 SMA dynamic inflection point. This lines up with the 50% Fibonacci retracement level around $6,750. A break higher could still hit a ceiling at the 61.8% level near the $7,000 major psychological resistance.

A break past these levels could finally signal that bulls have won over and reflect a longer-term reversal from the drop that lasted roughly a couple of months. On the other hand, if any of the nearby resistance levels keep gains in check, bitcoin might even break below the swing low later on.

So far, though, cryptocurrencies have been reestablishing a more solid footing at the start of this quarter. Some attribute it to investor optimism which is usually observed during the start of new months while others say that this is merely a dead cat bounce.

Another factor that may be propping up bitcoin and its peers is the ongoing trade war, as escalation could bring more losses to stocks and commodities. Investors seeking higher returns on riskier holdings could choose to put their funds in digital assets instead.

By Rachel Lee On Jul 4, 2018

David

Bitcoin (BTC) Price Watch – Another Bullish Continuation Signal

Bitcoin (BTC) Price Watch - Another Bullish Continuation Signal

Bitcoin (BTC) Price Watch – Another Bullish Continuation Signal

Bitcoin Price Key Highlights

Bitcoin price has broken above the double bottom neckline and bullish flag to signal upside momentum.
Price is forming another bullish flag pattern, which might signal a continuation of the climb.
Technical indicators, however, are showing mixed signals for now.

Bitcoin price confirmed one bullish signal after another and may be poised to continue its rally from here.

Technical Indicators Signals

The 100 SMA completed its crossover above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to be sustained than to reverse. The moving averages could hold as nearby support levels on a pullback also.

RSI is indicating overbought conditions or that buyers are exhausted and willing to let sellers take over. Turning lower from the overbought region could push bitcoin price to retreat to the dynamic support and area of interest around $6,400 before resuming the climb. Similarly stochastic has reached overbought territory and looks ready to move south, so bitcoin price might follow suit.

Market Factors

Bitcoin has sustained its strong start to the month and quarter, likely buoyed by investor optimism that more positive developments can arise in this latter half of the year. Many still predict that bitcoin price could recover to the $20,000 highs before 2018 ends, with some even projecting that it could reach $50,000.

Others think that the recent rallies are merely a dead cat bounce from the recent strong declines. After all, there appear to be no major catalysts driving the latest moves apart from risk-on flows. Traders seeking higher returns appear to be turning towards cryptocurrencies since stocks and commodities have been vulnerable to trade rhetoric.

Looking ahead, market sentiment could continue to impact bitcoin price movements, although it’s not hard to imagine that headlines on regulation could return to the spotlight.

SARAH JENN | JULY 3, 2018 | 4:25 AM

David

Bitcoin (BTC) Price Analysis – Short-Term Bullish Signals

Bitcoin has formed a double bottom and bullish flag on the 1-hour chart.

BITCOIN PRICE ANALYSIS

Bitcoin could be done with its slide as price formed a double bottom on the 1-hour time frame. Price also seems to have broken past the neckline around $6,400 to confirm that a reversal is underway.

Price is consolidating inside a bullish flag for now, though, but this is often considered a continuation signal. The mast of the flag spans $5,800 to $6,500 so the resulting climb could be of the same height. This would also be roughly the same size as the double bottom reversal formation.

The 100 SMA is crossing above the longer-term 200 SMA to signal that the path of least resistance is to the upside. In other words, the rally is more likely to gain traction than to retreat from here. Price has moved past the moving averages to indicate a pickup in buying pressure as well.

RSI appears to be on the move down, though, so some selling pressure could return. Stochastic is also hesitating on its climb so bitcoin could follow suit. In that case, a quick pullback to the moving averages’ dynamic inflection points around $6,200 could ensue before more bulls join in.

Bitcoin is off to a positive start so far this month and quarter, reviving investor confidence that the cryptocurrency could end up positive for the year. A co-founder of a bitcoin exchange even noted that we’ve seen these price dips before and that bitcoin is on track to reach $50,000 by the end of the year.

BitMEX co-founder Arthur Hayes cited:

“We could definitely find a bottom in the $3,000 to $5,000 range. But we’re one positive regulatory decision away, many an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year.”

He also added that the time between a bear market and bull market could shorten, given how more people are talking about bitcoin thanks to its increased visibility.

By Rachel Lee On Jul 2, 2018

David