Bitcoin is bottoming, expect a 70 percent surge â Trader

Bitcoin is bottoming, expect a 70 percent surge – Trader

The old saying goes, "buy when there's blood in the streets," and that's what I'm doing with the recent bitcoin price action.

Bitcoin traded to a low of $7,700, this level is a loss of 25 percent on the week and 40 percent on the year. That $7,700 low is ironic because it is the same level that it broke above and began a parabolic ascent in mid-November.

I am watching a key level at $8,650 and a continued close above that could signal immediate upside potential. The next level of resistance is $10,000, and a break back above that should bring further buying to the table, suggesting near-term upside to $14,500, a 70 percent jump from its current price.

On the other side of the coin, I believe we are witnessing a market-cap rebalancing. Many disregard bitcoin but most do not disregard blockchain technology.

While I expect bitcoin to recover from this low, I believe that there are cheaper and better technologies within the complex that are positioned for stronger gains. The five that I am focused on are ethereum, NEO, ripple, stellar and last but surely not least, VeChain. The crytpocurrency market cap reached a height above $800 billion, a number that is now cut in half. Bitcoin's piece of the this market cap has slowly shrunk and is now only one third.

As buyers step back in I believe this trend will continue and I'm watching for these five to gain further ground.

Author: Bill Baruch

Posted by David Ogden Entrepreneur
David Ogden cryptocurrency entrepreneur

David

Bitcoin, Ripple, And Litecoin Sell-off – What’s Different This Time Around

Bitcoin, Ripple, And Litecoin Sell-off - What's Different This Time Around

Bitcoin, Ripple, And Litecoin Sell-off – What's Different This Time Around

The current sell-off in Bitcoin, Ripple, Litecoin, and other cryptocurrencies may have a long way to go before it’s over. For a “technical” reason: it’s broad, extending from major currencies to the smaller ones.

When Bitcoin dropped close to 40% back in the middle of December, Ripple rallied, quadrupling in value in just a few days. The rally quickly spread to Ethereum, Litecoin, NEM, Siacoin and Bytecoin, and other cryptocurrencies.

Then, as Ripple and other cryptocurrencies sold off a couple of weeks later, Bitcoin rallied.

There’s a good explanation behind the rotation among cryptocurrencies. Some cryptocurrency exchanges require Bitcoins to pay for coin transactions. So investors who already owned Bitcoins had to sell them to pay for those transactions.

Rotation from one coin to another isn’t new to investing. It has been applied on Wall Street for years, where investors rotate funds between “defensive” and “cyclical stocks,” at times when interest rates, i.e. the “opportunity cost” of money, remain low.

That’s bullish for stocks, because it confirms that money is staying within this asset class rather than moving back into money market investments.

And that was a bullish sign for cryptocurrencies back then, too.

But that’s not what is happening this time around. With the exception of Ethereum, all major cryptocurrencies are down simultaneously. In the last seven days, Bitcoin is down 10.10%, Ripple is down 17.23%, and Litecoin is down 10.40%; and all are 50% or more below their all-time high back in December.

Table 1

Seven-Day Price Change For Major Cryptocurrencies

Source:Coinmarketcap.com 1/31/18 at 1.30pm

Worse, the sell-off has been extending across the entire cryptocurrency list—see table.

Table 2

Source: Coinmarketcap.com1/31/18 at 1.30pm

This means that money getting out of major cryptocurrencies isn’t being plowed back into other cryptocurrencies. It is leaving the entire asset class.

That’s bearish for all cryptocurrencies.

And that’s what’s different with the sell-off in major cryptocurrencies this time around.

Panos Mourdoukoutas , CONTRIBUTOR

David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David

Is Bitcoins Reign as King of Cryptocurrency in Danger

Is Bitcoin’s Reign as King of Cryptocurrency in Danger?

Regardless of where your allegiances lie in the crypto community, homage should be paid to the original Blockchain solution – Bitcoin. However, it has been 10 long years now since Bitcoin came into being (an eternity in the cryptocurrency space) and things are starting to get away from the King.

Bitcoin’s path was forever changed in August 2017 when a new challenger stepped up to the plate amid the rapidly escalating scaling debate. Bitcoin Cash appeared with its backers claiming it to be the one true ruler. Not long after this came Segwit 2x's failure to launch, which essentially confirmed Bitcoin’s status as digital gold. As a digital gold, it may have no rivals, but in the world of cryptocurrency it may have played its last move.

Scaling is a constant topic for evolving cryptocurrencies, and if Bitcoin cannot scale properly soon, it could be abandoned by investors for a more forward thinking cryptocurrency.

An aging King

After bringing in millions of users to the cryptocurrency space, Bitcoin has hit a log jam on its network as available blocks fill up with transactions quicker than they can be mined. This backlog has led to higher transaction fees and longer waiting times.

These factors all end up being counterproductive to the principles underpinning cryptocurrency which are to eliminate the power that banks have over money. Banking fees and centralised waiting times are part and parcel of the irritation that comes from another entity being in control of one's money. Bitcoin is increasingly picking up these bad habits, leaving its users with a feeling of déjà vu harking back to the days when banks held a monopoly over monetary services.

Waiting in the wings

Bitcoin’s move towards digital gold was a communal decision, and therefore blame cannot really be laid purely on the currency’s shoulders. But in that short time, frustrations amongst investors have grown with regards to the scaling issues.

There are other currencies waiting to try and take the mantle away from Bitcoin, and already this has been demonstrated as Bitcoin suffers a 50 percent drop in market dominance since November. Currently, market share for Bitcoin is just over 33 percent, having not too long ago been at over 60.

Bitcoin Cash is the most direct competitor to Bitcoin, trying to replace it as a ‘peer-to-peer electronic cash system’, as outlined in its white paper. However Bitcoinc has more than just its potential replacements to worry about, as the adoption rate of the currency is reversing. Bitcoin once held sway over a number of large companies who had adopted it as a form of electronic payment, but have since reneged on their adoption. Steam, formerly a strong supporter, no longer accepts Bitcoin, while Microsoft caused confusion when they looked to stop accepting only to rebut this and state:

“Microsoft has restored Bitcoin as a payment option after working with our provider to ensure lower Bitcoin amounts would be redeemable by customers.”

As companies turn away from Bitcoin, even some of the more established names in cryptocurrency join the march for the door. Civic CEO Vinny Lingham, who is well respected for his opinions in the crypto community said:

“When I look at it from the product standpoint, I think the greater demand is for peer-to-peer cash than for digital gold.”

Where to for Bitcoin?

There are currently plans underway for the oldest and most well-known digital coin to try and overcome this scaling issue. Some of the solutions being considered include the Lightning Network, or major upgrades to the network like changing block sizes.

Lightning Network, a technology which is being tested slowly but surely on the Bitcoin network, involves taking the transactions off-chain and opening payment channels. With these transactions taking place off chain, the result is an almost instantaneous transaction, at a much cheaper rate. This kind of upgrade will require a lot of consensus, and will need to undergo a lot more testing and proof before it becomes entrenched and usable on a large scale, which is another issue that Bitcoin has.

Even the idea of making big changes to the network could again fail and flounder. We have already seen this with the failure of the Segwit2x potential upgrade. Bigger blocks could solve the problem, but then Bitcoin will essentially going down the same path as Bitcoin Cash, and with too many staunch supporters in the community, this is unlikely to happen.

Hard to dethrone

Bitcoin is well entrenched in the cryptocurrency space, and will likely be a leading currency for a good while more as people refer to Bitcoin first before anything else. But, as the community matures, explores, and demands more, Bitcoin could be in trouble. Changes need to happen, and while Bitcoin will not fall on its sword too soon, if it does not make changes, then the potential for failure will continue to increase.

Author Darryn Pollock

Posted By David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David

Masked thugs stick up investor at GUN POINT in FIRST UK cryptocurrency robbery

BITCOIN'S price is down again this morning after a report this weekend of a gunpoint robbery where a city financier was targeted at his home and forced to transfer money to armed robbers.

Bitcoin's price is down $480 to $11,217 at the time of press as the crypto community responds to the deluge of regulatory threats coming from Davos last week, and a gunpoint robbery in a picturesque Oxfordshire village on Monday, revealed in the Sunday papers.

Last Monday, in the quaint village of Moulsford in South Oxfordshire, four armed robbers forced their way into the home of a City of London finance chief and forced him to transfer an unknown quantity of bitcoin, worth around $10,000 at the time.

Wearing balaclavas, the Mail on Sunday reported that the men kicked down the front door and forced their way into the home of Danny Aston, 30.

The armed men reportedly tied up a woman and kept a baby outside in a pram while forcing Mr Aston to transfer the bitcoin.

A woman said: "I saw four young men in black tracksuits with the hoods pulled up, crossing the road to the property where it took place."

She added: "They were aged 18 to 25, dark-skinned and super-fit. They jumped over the fence on the other side of the road. I didn’t see any gun, but that’s what people locally are saying – and that the men wore balaclavas which I didn’t see either, just the hoodies pulled up."

Chief Executive of Explain The Market, Mark Shone, said: “These are criminals who have likely caught on to the current popularity of Bitcoin.

“But depending on how much they have, these coins are like being in possession of a rare painting. Trying to exchange large amounts for normal money without alerting suspicion will be very difficult.”

A police spokesman said: “Officers were called at about 9.40am to a report that offenders had entered a residential property off Reading Road and threatened the occupants.

“No one was seriously injured during the incident.

“Officers are particularly interested in speaking to anyone travelling through the village on the A329 Reading Road between 7.30am and 10.30am on Monday who has dashcam footage, or anyone with mobile-phone footage.

“The investigation is in its early stages, however initial inquiries suggest this may be a targeted incident.

“No arrests have been made at this stage and anyone with any information relating to the incident is asked to call Thames Valley Police on the non-emergency number 101 or Crimestoppers anonymously on 0800 555 111.”

Bitcoin transactions provide anonymity to users and so has been used for criminal activity such as buying illicit items on the dark web.

Bitcoin also provides anonymity for scammers as the virtual currency does not pass through any banking institution and consumers cannot stop payment like they can with a credit card.

Cyberfraud, drug dealing, prostitution, gun-running and other major crime profits are being ploughed into the internet currencies.

Drug pedlars are using high street bitcoin ATM machines, of which there are 77 in the UK, to deposit cash from deals.

Gangsters are not only hiding money from the police, they are also making fortunes from the rise in the value of virtual currencies, according to the Met Police.

Head of Scotland Yard’s Serious and Organised Crime Command Detective Chief Superintendent Mick Gallagher said gangs have turned to cryptocurrencies.

He said: “At the moment, it feels like there is significant growth.”

Online criminals prefer the added privacy of some of bitcoin’s competitors as forensic firm Chainalysis said the amount of bitcoin is being used on the Dark Web has fallen from 30 per cent to one per cent.

Instead cybercriminals are turning to other digital currencies.

Philip Gradwell, Chief Economist at Chainalysis said: “In the last few months, there has been a rapid increase in the use of Monero, likely for illicit means.

“Whether Monero grows further, to displace bitcoin as the crypto-crime currency, depends on its adoption by new darknet markets, which are emerging following recent shutdowns, and improvements in the user experience of buying and transacting in Monero.”

It comes as the FBI issued a stark warning about an online scam in which people are threatened with death unless they hand over all of their bitcoin.

Investigators said the emails are carefully designed so that even educated professionals can be lured in.

FBI agent Laura Eimiller said it is a new spin on extortion.

Agent Eimiller said: “The chances are if you are online, you will be victimised not once, not twice, but multiple times.”

By DAVID DAWKINS and MATT DRAKE UPDATED: 08:00, Mon, Jan 29, 2018

Posted bu David Ogden Entrepeneur
David Ogden Cryptocurrency Entrepreneur

David

Bitcoin SUCCESS sees Australia pledge creation of price stable gold-backed cryptocurrency

A NEW cryptocurrency backed by gold is set to be made by Australia’s largest gold refinery after the Chief Executive announced plans to increase investment in the country’s metals.

Perth Mint have said they are hoping to capitalise on the rise the trading of digital currencies as a way to help increase interest in investing in Australia.

A number of cryptocurrencies have risen in popularity over the past 12 months with bitcoin, Ripple, and Ethereum all seeing surges.

Richard Hayes, Chief Executive of Perth Mint said: “I think as the world moves through times of increasing uncertainty, you’re seeing people look for alternate offerings.

“And you’re seeing this massive flow of funds into the likes of Bitcoin at the moment because people are looking for something outside of the traditional investments.”

He added that the proposed online money would “bring investors back to precious metals after a boom in alternative investments such as cryptocurrencies.”

Bitcoin was the original virtual currency and since it first mined in 2009, has seen its value surge and reach an all-time high of more than $17,000 (£12,000) in December 2017.

However, the value of bitcoin has plunged since then and last week saw its value drop to just £8,300.

Mr Hayes argued the decision of the mint to develop a gold-backed currency, similar to how physical currencies have previously been linked in the past, would help bring greater price stability to those investing in the digital money.

He claimed his plans would mean people could trust that the cryptocurrency was actually worth a physical amount.

He said: “With a crypto-gold or a crypto-precious metals offering, what you will see is that gold is actually backing it.

“So it will have all the benefits of something that is on a distributed ledger that settles very, very quickly, that is easy to trade, but is actually backed by precious metals, so there is actually something behind it, something backing it.”

The Perth Mint are not the first to announce their intentions of creating a currency linked to gold.

Last year a cryptocurrency linked to gold called Onegram was announced by finance firm Shariah-compliant , leading to significant media attention.

However, sale of the currency flopped, with less than 0.14 per cent of the company’s target being sold in the first phase of the initial coin offering.

Venezuela has also announced plans to launch a cryptocurrency, called the Petro, that will be supported by gold.

Author DAN FALVEY UPDATED: 02:09, Sun, Jan 28, 2018

Posted by David Ogden Entrepreneur
David ogden cryptocurrency entrepreneur

David

How Chinese Bitcoin Buyers Are Getting Around Government Ban

Chinese citizens are still investing in Bitcoin and the cryptocurrency market despite the government’s heavy crackdown.

In September 2017, Chinese cryptocurrency exchanges BTCC China, Huobi and OKCoin were ordered by the government to shut down their businesses. At one point, executives of the three cryptocurrency exchanges were prevented from leaving the country, due to a government investigation into local cryptocurrency exchanges.

Three months later, in December of 2017, China’s three largest cryptocurrency exchanges relocated their businesses to Hong Kong. BTCC China, Huobi and OKCoin rebranded to BTCC, Huobi Pro and OKEx, respectively. They intended to address the rapidly growing demand from Hong Kong-based investors.

Shortly after their move, the three trading platforms started to see daily volumes from Chinese investors grow exponentially. Somehow, Chinese investors were managing to circumvent Chinese trading restrictions by using Hong Kong-based exchanges. How is this possible?

In Hong Kong, it is relatively easy for investors to set up businesses. With less than $1,000, businesses can be legally created, which allows the opening of business bank accounts at Hong Kong-based financial institutions. Beginning in December 2017, many Chinese investors moved their funds from their Chinese bank accounts to Hong Kong bank accounts and started to trade cryptocurrencies more actively, effectively bypassing China’s restrictions.

But, unlike China, Hong Kong has a substantially lower supply to meet the growing demand. While China is home to major miners like Bitmain, Hong Kong does not produce much Bitcoin and other cryptocurrencies. As such, premiums in the Hong Kong cryptocurrency market increased, surpassing even that of the South Korean market. On January 18, when the global average price of Bitcoin was around $11,500, Bitcoin was being traded at above $13,000 on Huobi Pro.

Krystal Hu, a Hong Kong-based finance journalist, noted that traders outside of China have also started to take advantage of the arbitrage opportunity presented by the Hong Kong market. For instance, on January 18, the price of Bitcoin on Coinbase was $11,800. Purchasing Bitcoin from Coinbase and selling it on any Hong Kong-based market would have generated $1,200 in profit.

Chinese Government Concerned

Hong Kong’s exchanges have also integrated widely-used fintech applications in China such as Alipay and Tencent’s WeChat Pay. Alipay is a $60 billion fintech app that is used by more than 50 percent of mobile users. WeChat Pay, which was only used by seven percent of mobile users in 2014, is now being used by more than 40 percent of mobile users in China.

The integration of the two fintech payment networks has increased the accessibility of Hong Kong-based cryptocurrency OTC exchanges for Chinese investors, easing the process of investing in the cryptocurrency market.

To prevent Chinese investors from buying digital currencies, the Chinese government and the People’s Bank of China (PBoC), have asked local banks to disclose any suspicious transactions linked to Hong Kong-based markets. However, even this action will not be able to prevent Chinese investors from accessing Hong Kong-based markets, due to apps such as Alipay and WeChat Pay.

Author Joseph Young

Posted by David Ogden Entrepreneur
David Ogden Cryptocurrency Entrepreneur

David

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 25

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano - Price Analysis, Jan. 25

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 25

The massive upwards movement in cryptocurrencies over 2017 has not gone unnoticed. The participants at the World Economic Forum (WEF) in Davos are being questioned about cryptocurrencies and Cointelegraph has been one of the main voices representing the fraternity.

The traditional investors are still not willing to accept the rising clout of the cryptocurrencies and are pushing for tighter regulation. Only recently, Nordea Bank banned its employees from owning Bitcoin by Feb. 28. However, this move is facing strong opposition from the large unions.

Even the fears of a cryptocurrency ban by South Korea gathered a massive petition opposing the move. Finally, the Korean government only banned the traders from using anonymous bank accounts for cryptocurrency trading.

The classical investors and regulators fail to understand that these kinds of bans are unlikely to dent the popularity of the cryptocurrencies.

BTC/USD

Bitcoin is currently in no man’s land. It is facing resistance at the down trendline one. If the bulls succeed in breaking out of this resistance, we can expect a rally towards the down trendline two. Aggressive traders can trade this pullback.

Others should wait for a confirmation of a bottom formation because, if the bulls fail to sustain above the down trendline one, the likelihood of $10,000 levels breakdown increases.

Unlike the previous falls, this time, the BTC/USD pair is struggling to hold on to higher levels. With the price quoting below both the 20-day EMA and the 50-day EMA, the trend remains down to range bound.

The downtrend will reassert itself if the price breaks down to $10,000 levels. So, the swing traders should wait and watch for the next few days for the trend to change from down to up before initiating any long positions.

ETH/USD

Ethereum is in a pullback in an uptrend because it is still quoting above both the 20-day EMA and the 50-day SMA. Additionally, it has successfully held on to the uptrend line, which is another positive sign.

But the 20-day EMA has flattened out, which points to a range bound trading action for the next few days. The support of the range is likely to be at $900 levels, whereas, the resistance will be at $1,160 levels.

The ETH/USD pair will become negative only after it breaks down of the trendline and the 50-day SMA, which is at $845.

Long positions for the medium-term can be initiated on dips to $1,000 levels, with a stop loss at $840. We believe that if the 50-day SMA holds, the cryptocurrency will attempt to resume its uptrend and rally to the highs. This is a risky trade, hence, please keep the position size small.

BCH/USD

The traders, both the bulls and the bears, are not taking any keen interest in Bitcoin Cash. As a result, it has been trading in a small range since Jan. 23.

Support on the downside exists at the Jan. 17 low, $1,364.9657. On the upside, as the moving averages have completed bearish crossover, the 20-day EMA is likely to act as a resistance. Additionally, the $2,072 levels and the downtrend line will also act as a strong overhead resistance.

We don’t find any tradable setup on the BCH/USD pair.

XRP/USD

Ripple has formed a doji candlestick pattern on both Jan. 23 and Jan. 24. Even the price action currently points to a very small range day.

As forecast in our previous analysis, the XRP/USD pair is likely to remain range bound between $0.87 and $1.74. A trading opportunity will pop up only if the supports of the range hold or if the cryptocurrency breaks out of the overhead resistance. We should wait until then.

IOTA/USD

IOTA’s range has been shrinking for the past two days. It has formed successive inside day candlestick patterns on Jan. 23 and Jan. 24. Today, it is trying to resume the downtrend.

On the downside, support exists at $1.9232 levels. If this breaks, the IOTA/USD pair can extend its losses to the Dec. 22 low of $1.1.

The first signs of a recovery will be seen once the price breaks out of $3.032 and the down trendline of the descending triangle.

If the support and the overhead resistance levels hold, we may see a few days of range bound action.

LTC/USD

Litecoin has held on to the critical support level of $175.199. However, the bounce doesn’t have any strength, which shows a lack of interest in buyers.

If the bears succeed in breaking down the supports, a fall to $140.001 is likely.

On the other hand, the first signs of a recovery will be on a breakout above $215 levels.

Aggressive traders can buy the LTC/USD pair at $187, which is just above the high of past couple of days. The stop loss for the trade can be kept at $163 and the target objective is $215.

However, this is a very risky trade, hence, please place it only with less than 50 percent of the usual allocation.

XEM/USD

NEM has held on to the 0.86 levels for the past few days, but the bulls are unable to push prices above the down trendline.

This is likely to lead to another attempt to break down of $0.86 within a couple of days. If the bears succeed, a fall to the Jan. 16 lows of $0.55134 is likely. The 20-day EMA has turned down and is likely to complete a bearish crossover if the support breaks.

We don’t find any bullish setups on the XEM/USD pair with price trading below the trendline and both the moving averages. A change in trend will be signaled once it rallies above $1.21.

ADA/BTC

Cardano is again attempting to break out of the 0.00006 levels. If successful, it is likely to rally to the overhead resistance at 0.00006915. A very short-term trader can buy at 0.00006 with a stop loss of 0.00005. This is a risky trade, hence, please attempt it with less than 50 percent of the usual position size.

Swing traders should wait for a breakout of the 0.00006915 levels to initiate any long positions. We believe that unless the sentiment turns bullish for the cryptocurrencies, the ADA/BTC pair will find it difficult to breakout of the overhead resistance and may drift down to 0.000047 to 0.000049 levels again, which can be a good level to initiate long positions.

Author Rakesh Upadhyay

Posted By David Ogden Entrepreneur

David

50 Cent accidentally made $8 million in bitcoin

In 2014, rapper 50 Cent let people buy his album Animal Ambition using bitcoin. He then let his account lie unused for years, and only just recently discovered that he’s now a bitcoin millionaire, as first reported by TMZ.

At the time, a single bitcoin was worth only $662, and the rapper’s fans could pick up the album for a fraction of that. In total, he pulled in over $400,000. Since then, the value of bitcoin has soared: the price of the cryptocurrency rose as high as $17,000 earlier this month, only to drop under $10,000 in recent weeks. (At the time of writing, bitcoin is now worth a little more than $11,000.) After sitting untouched in his account for years, 50 Cent’s earnings are now worth $7 million to $8.5 million, based on the current fluctuating bitcoin valuation.

50 Cent confirmed his new windfall on Instagram and Twitter, saying, “Not bad for a kid from South Side, I’m so proud of me.” He later commented on his post: “Ima keep it real, I forgot I did that shit lol.”

Bitcoin evangelists on Twitter were quick to respond to 50 Cent, pitching him the various crypto platforms and coins that he should check out next. One of them even joked that 50 Cent would like the coin DeepOnion because it used to be valued at fifty cents.

50 Cent is just one of many people who acquired bitcoin, only to forget about it. He’s lucky that he remembered his login info — many others have forgotten their old account logins and lost out on potential wealth, which will forever be locked away due to the nature of cryptocurrency.

Author Shannon_Liao Jan 24, 2018, 6:09pm EST

Posted by David Ogden Entrepreneur

David

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 23

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano - Price Analysis, Jan. 23

Bitcoin, Ethereum, Bitcoin Cash, Ripple, IOTA, Litecoin, NEM, Cardano – Price Analysis, Jan. 23

When the markets are bullish, a lot of traders only focus on high target levels. This leads to a left out feeling among the ones who have missed out on the rally, and they rush to buy at elevated levels. This results in a huge loss of capital to the uninformed traders.

The opposite works when the market falls. One starts to hear bearish voices with the analysts forecasting apocalypse and novice traders get scared and dump their holdings. They buy when they should be selling and sell when they should be buying.

Hence, it is always better to take these forecasts with a pinch of salt. We, therefore, avoid giving unrealistic target levels to our readers and try to keep them on the right side of the trade.

BTC/USD

In our previous analysis, we had predicted that Bitcoin would turn down from the $13,202 levels and that is what happened. The cryptocurrency topped out at $12,988.89 on Jan. 20. It is currently retesting the critical support zone of $10,704.99 to $9,300.

For the past two days, the bulls are defending the $10,000 levels. If this level holds, we may see another attempt to pull back. The trend will turn positive in the short-term only when the BTC/USD pair breaks out of the down trendline 1.

This trade should be taken with only 50 percent allocation because on the way up, Bitcoin will face resistance at the neckline of the head and shoulders pattern and at the down trendline 2.

On the downside, a break of $10,000 is likely to hurt sentiment, resulting in a decline to $8,000 levels.

ETH/USD

We had forecast a rally to $1174.36, which is the 61.8 percent Fibonacci retracement level of the recent fall from $1424 to $770 and Ethereum topped out at $1,160 on Jan 20.

The price has returned to the trendline support, which has offered strong support since Dec. 10.

The bulls have been attempting to hold the trendline support for the past two days. We believe the support zone between $900 and $845 is likely to be defended strongly by the bulls. The ETH/USD pair will indicate a change in trend only after it breaks out of the down trendline.

If the above-mentioned support zone breaks, the decline can extend to $770 levels. We don’t find any buy setups; hence, we are not suggesting any trade on it.

BCH/USD

In our previous analysis, we had anticipated Bitcoin Cash to return from the $2,072 levels, and it topped out at $2,112.11 on Jan. 20.

The moving average has completed a bearish crossover, and the price is quoting below the 20-day EMA and the 50-day SMA; which is advantageous to bears. If the retest of the recent lows at $1364.96 fails, a fall to $1194 is likely.

If the bulls defend the $1364.96 levels, the BCH/USD pair is likely to become range-bound for a few days.

As the trend is still down, we are not suggesting any trade on it.

XRP/USD

Ripple returned from the 20-day EMA on Jan. 18. It currently has support at the $0.87 levels.

We believe that the XRP/USD pair will become range bound for the next few days between the support of $0.87 and the resistance of $1.74.

We shall wait for a breakout above the overhead resistance to initiate any long positions. On the downside, though we expect the $0.87 to hold, it might be reasonable to wait for a bounce before buying. As the trading inside the range is likely to be volatile, we shall only try to buy closer to the supports.

IOTA/USD

We had mentioned that $3.032 is the critical level for IOTA and a failure to break out above it will attract another bout of selling and that is what happened.

The cryptocurrency is currently attempting to hold the Jan. 16 low of $1.923. If the bears succeed in breaking down this support, a fall to the lows of Dec. 22 of $1.10 is likely.

If the bulls hold the $1.923 levels, the IOTA/USD pair is likely to remain range bound for the next few days. It will become positive only if the price breaks out of the down trendline of the descending triangle.

LTC/USD

Litecoin broke above $205, but could not reach $225, as we had expected. It turned down from $214.48 levels on Jan. 20.

The bears are trying to break down of the critical support level of $175.19. If successful, a fall to $140 is likely.

In the short-term, the first sign of bullishness will be when the LTC/USD pair breaks out of $215. Currently, we don’t find any trade set up on it.

XEM/USD

On Jan. 20 and Jan. 21, the bulls could not sustain above the downtrend line. As a result, NEM has resumed its decline.

Currently, the bulls are attempting to hold the $0.86 level. If this breaks, a fall to the Jan. 16 lows of $0.551 is likely.

On the upside, the down trendline is likely to offer strong resistance. The first signs of bullishness will be when price breaks out of the $1.21 levels.

We don’t find any trade setups on the XEM/USD pair.

ADA/BTC

Cardano could not break out of the 0.00006 levels. It is now likely to gradually fall to the support levels of 0.000047, and after that to 0.00004070.

For the next few days, we expect the ADA/BTC pair to remain range bound between 0.00004070 on the downside and 0.00006915 on the upside.

We shall wait for the pair to bounce from one of the support levels before initiating any trade. At the present levels, we don’t find any bullish setups on it.

Author: Rakesh Upadhyay

Posted By David Ogden Entrepreneur
David ogden Cryptocurrency Entrepreneur

David

The Bull And The Bear Case For Bitcoin, Ethereum, Ripple, Litecoin, And Other Cryptocurrencies

There have been better days and worse days for Bitcoin, Ethereum, Ripple, Litecoin, and other cryptocurrencies.

The better days were back in November and December when a “virtuous” rotation helped spread the rally from Bitcoin to other cryptocurrencies. This means that funds cashed out from one currency were invested in other currencies.

That’s a bullish "technical" sign for cryptocurrencies, as it keeps the momentum for the sector alive.

[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. Disclosure: I don't own any cryptocoins or tokens.]

The worse days were early this week when the sell-off in major cryptocurrencies spread across the entire sector. This means that money cashed out from one cryptocurrency didn’t flow to other cryptocurrencies, but moved to cash or to other investments.

And that’s a bearish sign for cryptocurrencies, as it undermines the momentum for the sector.

Apparently, momentum is changing very fast in cryptocurrencies, much faster than in other asset classes.

That’s why technical analysis alone may not be a reliable indicator for trying to guess the direction of the cryptocurrency markets.

What about fundamental analysis?

For the vast majority of cryptocurrencies there are no fundamentals to talk about, other than a website with a message that promises to make capitalism better.

For major cryptocurrencies like Bitcoin, there’s some information to make both a bullish and a bearish case.

The bullish case is about the advantages Bitcoin has a “headless” currency. "Increasingly widely accepted as a means of payment with no bank intermediation and absolutely no fees, Bitcoin has some of the attributes of a headless currency,” says Eric Pichet, a KEDGE professor.

Then there’s the rarity of the cryptocurrency and the low ownership rate, which explain its price spike, and the potential for further gains. “The relative rarity of the virtual product explains its rise in large part because only 0.01% of the world population own any,” adds Pichet. “Therefore, one can imagine the effect on its trading price if the primary cause of speculative bubbles, namely FOMO (Fear Of Missing Out) were to spread to a mere 1% of the world population, or 100 times more holders.”

The bearish scenario centers on two major threats which cryptocurrencies face. One of them is an intrusion in the blockchain system and the circulation of fake coins. Another threat is a concerted effort by governments around the world to ban their use.

As Eric Pichet concludes, "Under these conditions, what type of needles would burst the bubble? The first would be the heist of the century: an intrusion in the blockchain system that created a deluge of fake bitcoins. The second would be the adoption of a common position by all national governments and central banks to prohibit this means of payment in the name of fighting fraud, for example.”

Author Panos Mourdoukoutas

Posted By David Ogden Entrepreneur
David ogden Cryptocurrency Entrepreneur

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