Ripple price struggled to gain bullish momentum and declined below $0.3000 against the US dollar.The price is currently trading below key supports and it could extend losses below $0.2940.There is a short term bearish trend line forming with resistance near $0.2980 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair remains at a risk of more losses towards the $0.2900 and $0.2850 support levels.Ripple price is currently in a declining mode against the US Dollar and bitcoin. XRP failed to hold gains and it could continue to move down towards the $0.2850 level.Ripple Price AnalysisThis past week, there were decent gains in ripple price above the $0.3050 level against the US Dollar. The XRP/USD pair traded above the $0.3100 level, but it failed to gain strength above the $0.3120 resistance. As a result, there was a fresh decline below the $0.3080 and $0.3050 support levels. The price recently broke the $0.3000 support, and the 76.4% Fib retracement level of the last wave from the $0.2949 high to $0.3125 high. It opened the doors for a break below the $0.2950 support level.The price is currently trading with a bearish angle and below the $0.2960 and $0.2950 supports. If it extends losses, the next stop for the bears could be $0.2907 and $0.2900. The 1.236 Fib extension level of the last wave from the $0.2949 high to $0.3125 high is also near the $0.2907. Below $0.2900, there could be a sharp drop towards the key support near $0.2850. The 1.618 Fib extension level of the last wave from the $0.2949 high to $0.3125 high near $0.2840 may also act as a support.On the upside, there is a strong resistance forming near $0.3000 and the 100 hourly simple moving average. There is also a short term bearish trend line forming with resistance near $0.2980 on the hourly chart of the XRP/USD pair. The pair needs to clear the trend line, the $0.3000 barrier, and the 100 hourly SMA to start a decent upward move. The next key resistance above the $0.3000 level is near the $0.3050 level.Looking at the chart, ripple price is clearly under pressure below the $0.3000 pivot level. Having said that, the $0.3050 level is also a strong resistance. Therefore, as long as the price is below $0.3000 and $0.3050, there is a risk of more losses in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently placed in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD declined below the 40 level, with no major recovery sign.Major Support Levels – $0.2920, $0.2900 and $0.2850.Major Resistance Levels – $0.3000, $0.3020 and $0.3040.
Archives for May 5, 2019
ETH price corrected lower recently, but stayed above the key $156-157 support against the US Dollar.The price is facing a lot of hurdles near the $162 and $163 levels on the upside.There is a short term declining channel in place with resistance near $163 on the hourly chart of ETH/USD (data feed via Kraken).The pair must stay above the $156 support to avoid a downside break in the near term.Ethereum price is facing a lot of selling interest versus the US Dollar and bitcoin. ETH could bounce back above $163 as long as the $156 support area is intact.Ethereum Price AnalysisRecently, there was a decent upward move above $165 in Ethereum price against the US Dollar. The ETH/USD pair spiked towards the $170 resistance, but it failed to hold gains. There was no clear break above the $168-169 resistance zone. As a result, there was a downside correction below the $165 and $163 levels. The price even broke the $160 level and the 100 hourly simple moving average. However, the $156-157 support area acted as a strong buy zone.The price recently traded above the $162 level, and the 23.6% Fib retracement level of the last decline from the $169 swing high to $157 swing low. There are recovery signs visible, but it seems like the $163 level is acting as a significant resistance. It also represents the 50% Fib retracement level of the last decline from the $169 swing high to $157 swing low. At the outset, the price is moving lower and trading just above the key $156-157 support area. If the bulls fail to defend the $156 support area, there is a risk of a sharp decline.The next key support is near the $155 level, below which Ether price could decline towards the $150 support level. On the upside, the price must clear the $163 level to start a decent upward move. There is also a short term declining channel in place with resistance near $163 on the hourly chart of ETH/USD.Looking at the chart, Ethereum price may trade in a range above the $157 support for some time before the next break. The chances of a fresh increase are high as long as bitcoin price is gaining strength. If there is a downside break below $155, it could put a lot of pressure on the bulls in the near term.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently in the bearish zone, with a few negative signs.Hourly RSI – The RSI for ETH/USD recently declined below the 50 level, but holding the 40 level.Major Support Level – $157Major Resistance Level – $163
Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative.
The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers.
When I visited some early bitcoin startups in Hong Kong five years ago, they were unanimous about their biggest challenge: finding a bank that would let them open an account.
It wasn’t that local banks were especially worried about this little-understood new industry. The issue was that compliance-obsessed correspondence banks in the U.S. were demanding that their counterparts in the territory apply an especially high “know-your-customer” standard for bitcoin businesses. Since Hong Kong banks couldn’t live without a dollar lifeline from New York, the path of least resistance was to say no.
That situation was a lesson about how the dollar’s reserve status leaves U.S. financial institutions, and the Washington regulators whose guidance they heed, exerting profound worldwide influence – in this case, constraining innovation, wherever it was happening.
Fast forward to 2019 and reports of a high-profile Hong Kong-based cryptocurrency exchange’s troubles with a dubious Panamanian entity offer a stark reminder that little has changed.
The lack of access to reliable, mainstream credit and payment facilities, and the risky steps that cryptocurrency exchanges take to get around that problem, continue to be the sector’s Achilles Heel.
Yet despite the initial market jitters provoked by the NewYork Attorney General’s allegations that that exchange, Bitfinex, used funds from closely affiliated stablecoin provider Tether to mask an undisclosed $850 million shortfall, there may be light at the end of this multi-year tunnel.
To find it, you have to look at other developments in banking, blockchains and cryptocurrency.
There’s a case to be made that new crypto technologies and business models will foster a sufficient mix of greed and fear to drive banks into a more accommodating stance with crypto entities.
Bitfinex-Tether: a banking problem
For now, though, banking challenges remain rife for crypto firms. Bitfinex and Tether’s situation is proof of that.
Bitfinex’s integrity is understandably questioned by many. But it’s true that if it had been properly banked, the Hong Kong exchange would not have had to do business with payment processor Crypto Capital in the first place. (According to the NYAG’s report, Bitfinex was seeking to recover $850 million held by that Panamanian firm and in the meantime used Tether’s reserves to make the hole that that gap left in the exchange’s balance sheet.)
Moreover, if exchanges like Bitfinex had access to bank accounts for liquidity, Tether would never have become as integral to a large part of the bitcoin market’s clearing system as it did.
In 2015, shortly after it adopted its current name following its founding as Realcoin in 2014, Tether forged a close relationship with Bitfinex. The exchange opened trading in Tether’s USDT tokens, which the stablecoin provider promised could be redeemed one-for-one for dollars, and ultimately began using them to solve for liquidity needs that banks were not providing.
Then, as Bitfinex grew, creating counterparty relationships with multiple other exchanges, they, too, started using USDT for the same purpose. Rather than clearing customers trades’ through cumbersome banking system transactions that require deep institutional support, exchanges could freely manage their fiat-to-crypto float by moving in and out of a de facto crypto dollar.
After a while, however, this model came undone. It’s undoing also stemmed from the same root cause.
For Tether to consistently stand up the claim that one USDT token equaled one dollar, it had to convince investors that it held the equivalent in actual dollars in reserve at one or more banks. So, when doubts about Tether’s audits bled into concerns about its banking relationships, confidence dropped and the token lost its peg in the market. This, in turn, put pressure on Bitfinex and deepened its problems with Crypto Capital.
In summation, it’s fair to say that the bitcoin market’s persistent concern about a Bitfinex-Tether house of cards wouldn’t exist if banks had more readily serviced bitcoin exchanges.
The way out
If that were the full story, it would be hard to see how it ends. After all, in stoking additional uncertainty around liquidity and price volatility, this latest crisis only further diminishes bitcoin’s standing in the minds of regulators and bank compliance officers.
But there is a way out of this self-perpetuating trap. Such a solution arises from banks’ own need to find new sources of revenue in a post-crisis era in which their margins have been squeezed by low-interest rates, added risk constraints and heavy compliance requirements. Crypto-based products, if not cryptocurrencies themselves, could offer such an opportunity.
One opportunity lies with security tokens, which, once they mature and earn regulatory blessing, promise to give both fundraising enterprises and fund managers wider and more efficient access to capital and investments. They combine the comfort and compliance of a regulated instrument that’s attached to real-world assets such as stocks, bonds or real estate with the cost and efficiency of disintermediated issuance and smart-contract-automated cap table management, clearing, settlement, and trade reconciliation.
Security token offerings, or STOs, aren’t as subversive as ICOs. Initial coin offerings mostly didn’t represent any underlying real-world assets but rather promised the value of commodity-like “utility” within their blockchain-based network’s economic and incentive model. Crypto puritans also decry the fact that STOs rely on trusted third parties to stand up the underlying assets and exist only at the whim of government regulators.
But precisely because they could earn the blessing of regulators and the participation of traditional enterprises, STOs are attracting attention on Wall Street. The recent news that Societe Generale tested an STO based on the public Ethereum blockchain has taken that interest to a new level.
STOs might make some of investment banks’ back-office functions redundant, but fees for STO market-making, risk-management and underwriting could more than offset that, at least for a while.
The missing piece
But to get to the ideal STO state, another piece of the puzzle is needed: a payment token.
That’s why I see banks increasingly offering services and support for the emerging new breed of sophisticated, reserve-backed stablecoins. Those offered by Gemini, Paxos and the consortium formed by Circle and Coinbase already have much deeper, well-regulated banking relationships than anything Tether could claim. (I see banks preferring these stablecoins over JP Morgan’s JPM coin. Why reward a competing bank’s technology?)
Here’s the thing, though. As a more deeply banked stablecoin ecosystem emerges it will also provide stability to the market for blockchain-native cryptocurrencies such as bitcoin. Exchanges will have a more reliable, digital source of fiat liquidity.
Eventually, they won’t even need to hold client’s fiat deposits, putting an end to disasters such as QuadrigaCX. All of that will help the maturation of cryptocurrencies generally, enabling their wider adoption as alternatives and competitors to the fiat system.
This brings us to a somewhat ironic conclusion for crypto true believers who pine for an end to the centralized banking system and a digital store of non-fiat value: the road to utopia may be paved in deals with bankers and government regulators.
Tether token image via Shutterstock
By CCN: The overwhelming majority of crypto traders come from the United States, according to surprising new research from DataLight.
The firm analyzed traders using the top 100 Bitcoin exchanges and found that over 22 million users hail from America. The next in line is Japan with 6 million, followed by South Korean’s 5 million users.
US Dominates Crypto Trading Industry
Collectively, it takes almost six other countries to reach the same number of traders as the US.
Notably, Korean exchanges like Bithumb report massive volume, but this volume is likely almost entirely fake. Several exchanges also engage in “transaction mining,” where users are rewarded for conducting trades, which means pumped-up volume.
DataLight’s report notes some interesting findings, including the impressive number of Turkish Bitcoin traders.
“Turkey for example, has in the last year seen wild fluctuations in the value of the Turkish Lira, as turbulent political conditions rock the country. Interestingly, on one day in August 2018, a 10% drop in the value of the Lira was accompanied by a marked spike in volumes on bitcoin exchange LocalBitcoins.”
CCN, incidentally, recently reported on problems that people are having with Turkish exchange Sistemkoin.
Turkey sports a population of nearly 80 million people, 2.4 million of whom trade. This is about 3% of their citizens, compared with 7% of the US population trading cryptos. Meanwhile, nearly 6% of all people in the UK trade cryptocurrency. These figures are quite high, but the report also doesn’t account for the frequency of trading. The data would be much more interesting if it were colored in light of how heavily each country trades.
‘Crypto Nation’ Hits 68 Million Citizens and Just Keeps Growing
The United States remains a regulatory nightmare for crypto traders, however, with several agencies claiming jurisdiction over the trade. Recently, FinCEN, a party rarely heard from in crypto anymore (we hear more from the SEC these days), fined a Bitcoin trader. Law enforcement agencies, the SEC, and CFTC – among others – also take part in regulating cryptocurrencies.
The situation is so confusing that the Token Taxonomy Act has been re-introduced with an eye toward simplifying the whole asset class. Under the proposed law, in-kind exchanges up to $600 would not be considered taxable income, and the SEC would lose jurisdiction over crypto tokens.
America’s largest exchange is Coinbase, which boasts more than 10 million of the 22 million overall users.
Several data points would be helpful to better analyze this research. As stated before, the frequency of trading would be useful. Additionally, we’d love to know the amount of trading, as well as how long these reported users have been trading. For example, how many new users were added during the 2017 bull run, and how many have since left?
According to DataLight, there are a total of around 68 million crypto traders across the world. This is more people than live in the United Kingdom.
Binance CEO Changpeng Zhao believes the number of crypto users in the future will outpace the number of Internet users today.
In a few years, there will be more users in #crypto than there are users for internet today.
— CZ Binance (@cz_binance) April 30, 2019
As the movement grows, one wonders what sort of political power such a population might wield down the line. As for today, it seems a few representatives and some outlandish presidential candidates are the best we can muster. But how long will it be until politicians are forced to court the crypto vote?
By CCN: Started as a side project in May 2013 by a lone developer in a Queens, New York apartment, CoinMarketCap celebrated its six-year anniversary last week. The website, which keeps track of the market capitalization of bitcoin and more than 2,100 altcoins, commemorated the milestone with a few announcements. The changes come on the heels of the crypto data market site coming under fire for reportedly relying on faulty data when calculating exchange trading volume.
CMC will be working to create a more rigorous and robust philosophy for what data it does and doesn’t include in its algorithms. Through a CoinMarketCap Data Accountability & Transparency Alliance, or DATA, it will “promote greater transparency, accountability, and disclosure from projects in the crypto space,” according to the announcement.
— Carylyne Chan (@carylyne) April 25, 2019
The real-time blockchain data provider is also launching a new blockchain explorer. The company is hoping to make it easier and more intuitive for newbies to explore and interact with the blockchain. With its new blockchain explorer, CoinMarketCap promises a friendlier, more down to earth interface for users to learn about the blockchain.
CoinMarketCap Dogged By Scandals
A Bitwise investigation published in March found that “at least 95 percent of all bitcoin trading volume is faked on unregulated exchanges.” CoinMarketCap was caught in the middle of the scandal, with Bitwise pointing to $6 billion in daily trading volume reported by the site vs. $273 million in actual volume.
We are listening to all our users’ feedback, and we are working hard to add a suite of new metrics so users can get a fuller picture of exchanges and crypto on the site. What are some new metrics you would like to see? Share with us. 🙂 https://t.co/ZgEs80lH1S
— CoinMarketCap (@CoinMarketCap) March 26, 2019
CoinMarketCap’s Humble Beginnings in Tracking Crypto Market Capitalizations
When CoinMarketCap was started in 2013, there was no consistent way to keep track of and compare the relative performance of the already burgeoning number of altcoins. The nascent nature of the emerging cryptocurrency space has made their job that much harder. Leaders in the crypto industry have been quick to defend CoinMarketCap, including Binance CEO Changpeng “CZ” Zhao:
— CZ Binance (@cz_binance) February 6, 2019
He instead pointed the finger at the seemingly scammy exchanges that have faked their trading volume along the way.
Why do exchanges fake volumes? @CoinMarketCap is highest traffic website in our space, and biggest referrer for all exchanges. Ranked high on CMC has benefits for getting new users. BUT at the expense of DESTROYING CREDIBILITY with pro users. Many forget the later part. https://t.co/XTSez5ZRVh
— CZ Binance (@cz_binance) March 19, 2019
No new business is without its flaws in the early stages of development, especially niche tech businesses. But as CoinMarketCap reckons with how to provide the best product as a real-time crypto market data company, here’s to wishing it all the best for the next six years.
While the upward price pressure has slowed, resulting in Bitcoin (BTC) posting a mere 0.15% gain in the past 24 hours, some are sure that the cryptocurrency’s chart structure remains bullish. Murad Mahmudov, a founding partner at up-and-coming crypto fund Adaptive Capital, recently broke down his reasoning as to why BTC holding above the $5,500 region could be “quite bullish.”Related Reading: Analysts Believe Bitcoin May Continue Dipping Lower Before Surging to $6,500The Bitcoin Megamoon SoonIn a 22-part Twitter thread posted Saturday, Mahmudov, who has risen to prominence to become one of the most well-respected voices in the cryptocurrency ecosystem, drew attention to 20 reasons why Bitcoin is currently bullish. Honestly, 20 may be too many to go through, but NewsBTC will break down the important tidbits.0/20. My list of 20 reasons why I think that if 5450-5550 area holds — its very bullish & megamoonsoon is still on the table:I repeat, IF, 5450-5550 area holds, THEN, it’s quite bullish.Saturday Megathread: pic.twitter.com/KBbMj8OdU9— Murad Mahmudov 🚀 (@MustStopMurad) May 4, 2019Firstly, Bitcoin is currently trading in the midst of an ascending channel, marked by consistent higher lowers and higher highs. With BTC continuing to hold this pattern with an impeccability, a move higher to potentially break out of the upper bound of the channel seems likely.Next, the Stochastic Relative Strength Index (RSI) and the traditional RSI are both showing bullish signs, both accentuating that the crypto market isn’t overextended and thus has room to run.Thirdly, BTC is currently trading above key moving averages, like the 50-week simple moving average and 89-week exponential moving average, which “caught multiple local bottom and top areas in both previous and current cycles.”And lastly, as hinted at in previous reports, there has been an unprecedented rally in the amount of BTC upon in short contracts, resulting in postulation, from Mahmudov and others, that a massive short squeeze may soon be inbound.From Crypto Bear To Bull All this marks a confirmation that Mahmudov has flipped from bear to bull. As NewsBTC reported on a number of times during late-2018 and early-2019, the Adaptive Capital partner was overtly bearish on a number of occasions. Often, he noted that Bitcoin still had a chance to fall to $1,700, citing historical factors to try to convince investors that November’s sell-off may have just been the “Little Capitulation” before the “Final Capitulation,” coupled with the idea that BTC’s long-term cycles dictate that a rally this soon may be illogical.In one analysis, he noted that the waning number of mentions of “Bitcoin” on Twitter was an “absolute disaster for the price in the medium-term.” He opined that this accentuates how there are “far fewer people who care about decentralized, sovereign, uninflatable currency” than it may seem from the surface, and how little effect 2017’s parabolic run-up had on this community’s size.Now, however, he revealed in a recent Tone Vays Youtube episode that he is 75% sure that the cryptocurrency market has found a long-term floor. And this time, it doesn’t seem like he will be wishy-washy at all, as all signs seem to be leaning in favor of the bulls. His peers would agree.Related Reading: Prominent Analysts Divided Over Bitcoin Bottom: Let’s Look At The Two SidesFeatured Image from Shutterstock
By CCN: One of bitcoin’s biggest scandals just keeps growing more bizarre, as reports now indicate that former Minnesota Vikings co-owner Reginald “Reggie” Fowler finds himself ensnared by the scheme.
The U.S. Justice Department charged Fowler – who also helped bootstrap the now-defunct Alliance of American Football – over his role in concocting a shadow banking scheme that entailed the processing of hundreds of millions of dollars of unregulated transactions on behalf of several cryptocurrency exchanges, as CCN reported.
One of those bitcoin exchanges – Bitfinex – allegedly misused the Tether cryptocurrency to conceal that it had lost access to an eye-popping $850 million in client and corporate funds, leading the New York Attorney General’s Office to initiate legal proceedings against the company.
Shadowy Financial Dealings Have Dogged Reggie Fowler Since Minnesota Vikings Days
It’s not the first time that Reggie Fowler has found his financial dealings the subject of legal controversy.
In 2005, Fowler attempted to buy the Minnesota Vikings, which would have made him the first African-American NFL team owner.
Almost immediately, questions began being raised about his finances, including more than 36 lawsuits that had been filed against him.
Back then, it was reported that most of the lawsuits were over unpaid bills racked up at several of the companies Fowler owned.
When confronted back then, Fowler reportedly said about the dozens of suits:
“We have several companies, and we have thousands of transactions that go through our companies each day. So as the normal course of business, this does happen.”
He even landed in hot water with the IRS over failing to pay taxes, according to Forbes. His financial issues quashed his majority stake hopes and he had to settle for having a limited partnership in the team.
Eventually, Fowler lost control of all his companies amid a debt of nearly $60 million, according to the Star Tribune. He also ended up relinquishing his limited partner stake in the Minnesota Vikings.
Later, he became the original investor in the Alliance of American Football (AAF) and may have contributed to the league’s untimely demise by failing to deliver the full $170 million he had promised to invest.
Lesson Learned for Bitcoin Investors?
Crypto investors should know by now they need to do their homework on the players involved in the nascent industry. Fowler’s information has been readily available through simple Google searches. Nevertheless, his shadowy dealings managed to fly under the radar, at least when it came to his role in the bitcoin exchange scandal.
Clearly, the lesson to learn here is: “do your due diligence.”
Munger said bitcoin fans had invited him out for a drink this weekend, but he didn’t even consider it because he thinks they’re all traitors.
“I’ve been invited during this gathering to go to a happy hour put on by the bitcoin people. And I tried to figure out what the bitcoin people do in their happy hour and I finally figured it out: They celebrate the life and work of Judas Iscariot.”
The audience erupted into laughter in response to Munger’s crypto diss. Buffett followed up by asking, “Is your invitation still good?”
Highlight: “Your vice chairman is getting new social distinction,” Munger says. “I’ve been invited during the gathering to go to a happy hour put together by the bitcoin people. And I tried to figure out what the bitcoin do in their happy hour and I finally figured it out…” pic.twitter.com/BM7FHiKPyf
— Yahoo Finance (@YahooFinance) May 4, 2019
Munger Echoes Legacy Banks’ Fear of Bitcoin
For reference, Judas Iscariot was the apostle who betrayed Jesus Christ for 30 pieces of silver. Calling someone a Judas is saying he’s a traitor.
Munger’s comment is indicative of the way many established financial institutions view cryptocurrencies: As a means to topple traditional banks.
This is part of the reason why investment bankers often trash bitcoin as shady and “illegitimate.”
At the Berkshire meeting, Buffett doubled-down on his longtime bitcoin hatred by echoing his previous sentiment that buying it is reckless gambling.
Highlight: Buffett on bitcoin: “On my honeymoon in 1952, my bride, 19, and I, 21, stopped in Las Vegas. … I looked around and saw all of these well-dressed people… they came to to do something that every damn one of them knew was mathematically dumb…” #YFBuffett pic.twitter.com/6Hi5ukbDFr
— Yahoo Finance (@YahooFinance) May 4, 2019
Warren Buffett: Bitcoin Has No Value
In April 2018, Buffett said there’s no such thing as “investing” in bitcoin because it’s a sham “asset” that delivers no returns (video below).
“You aren’t investing when you [buy cryptocurrency]. You’re speculating. If you wanna gamble, somebody else will come along and pay more money tomorrow. That’s one kind of game. But that is not investing.”
“If you buy bitcoin, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
Howard Marks: Bitcoin Is a ‘Greater Fool Investment’
Billionaire Howard Marks, the co-founder of Oaktree Capital Management, calls this the “Greater Fool” theory of investments. Oaktree Capital has $122 billion in assets under management.
Marks said bitcoin is not a worthwhile long-term investment vehicle, but merely a short-term trading opportunity.
“[Bitcoin is] not an investment…it’s a trade. In the long run, I think it will be shown not to have any substance.”
Marks said people who buy bitcoin do so only because they want to turn a quick profit by selling off their holdings to a “greater fool” than themselves.
“This is what we called, when I was a kid, the ‘Greater Fool Theory.’”
Bitcoin Will Prove It Never Had Any Substance, Claims Billionaire Skeptic Howard Marks https://t.co/kZwT02Wvir
— CCN.com (@CCNMarkets) July 19, 2018
Flashback: Munger Called Bitcoin ‘Turds’
By now, everyone in the financial community is well aware of Warren Buffett and Charlie Munger’s disdain for cryptocurrencies.
At last year’s Berkshire Hathaway shareholders meeting, Buffett trashed bitcoin as “rat poison squared, as CCN reported. And Charlie Munger said he hated crypto even more than Buffett does.
Munger then compared bitcoin to “turds” being traded by people with dementia.
“I like cryptocurrency even less than Warren does. To me, it’s just dementia. [And a bitcoin trading desk is] like somebody else is trading turds and you’re being left out.”
Buffett then predicted that crypto will definitely come to a “bad ending,” and he feels sorry for all the suckers who got conned in the crypto shell game.
“In terms of cryptocurrencies, I can say with almost certainty that they will come to a bad ending.”
Although the crypto markets entered the weekend on a less-than-positive note, with Bitcoin retreating from highs of nearly $5,900 to lows of roughly $5,650, many cryptocurrencies have been able to climb higher today, with Bitcoin Cash (BCH) leading the markets.Analysts now believe that BCH could be a better short-term play than Bitcoin for traders, as the crypto has “more room to pump” in the near-future.Bitcoin Cash (BCH) Surges Over 5%At the time of writing, Bitcoin Cash is trading up 5.3% at its current price of $293.51, up from its daily lows of $275.Over a seven-day period, BCH is significantly up from its lows of $230, which were set last Monday, and is only down slightly from its highs of $310 which were set on Friday.The recent market surge has proven to be very positive for Bitcoin Cash, as it surged from lows of $170 in early-April to highs of $336, from which point it settled slightly lower and has traded sideways since.This recent price action does appear to be emblematic of the formation of a new trading range, with strong support existing around $240, and resistance in the lower-$300 region.Keshav Narla, a cryptocurrency analyst on Twitter, shared his thoughts on the crypto’s current price action in a recent tweet, explaining that he believes that Bitcoin Cash is growing increasingly bullish, with another upwards surge potentially taking it as high as $340 before it incurs any significant selling pressure.“$BCH continuing the bullish bias, we appear to be in 5th wave (green) and done with the yellow Subwaves 1 & (2?). We also have a golden cross where 50DMA goes above 200DMA, which is bullish. I expect some resistance at 300DMA ($340),” he noted.$BCH continuing the bullish bias, we appear to be in 5th wave (green) and done with the yellow Subwaves 1 & (2?). We also have a golden cross where 50DMA goes above 200DMA, which is bullish. I expect some resistance at 300DMA ($340)
Play safe in the 5th wave. All the best! pic.twitter.com/z9PGhm7LQ1— Keshav R Narla (@imkeshav) May 5, 2019UB, another popular crypto trader on Twitter, recently explained that he is closely watching to see whether or not BCH/BTC is able to reclaim support at 0.0525, which is slightly higher than its current price of 0.0508.“$BCH – I entered into a long position a few hours ago. I’d like to see .0525 reclaimed as support on the next test,” he said.$BCH – I entered into a long position a few hours ago.I’d like to see .0525 reclaimed as support on the next test. #BCH pic.twitter.com/M5Ji1K8ofj— UB (@CryptoUB) May 3, 2019BCH Could Be A More Profitable Trade Than Bitcoin in Near-FutureBecause Bitcoin is currently experiencing some relative levels of stability within the $5,000 region and doesn’t appear to have enough buying pressure to propel it above $6,000, analysts now believe that Bitcoin Cash could be a more profitable trade in the near-future.Another celebrated analyst, The Crypto Dog, explained this sentiment in a recent tweet, noting that he believes BCH has “a lot more room to pump” than BTC does.“In case you’re wondering why I’d rather be in $BCH than $BTC right now. Not saying for sure we go straight up (if I knew that I’d just all in no stops), but if we do, Roger’s coin has a lot more room to pump,” he said.In case you’re wondering why I’d rather be in $BCH than $BTC right now…Not saying for sure we go straight up (if I knew that I’d just all in no stops), but if we do, Roger’s coin has a lot more room to pump. pic.twitter.com/TefroeEGRX— The Crypto Dog📈 (@TheCryptoDog) May 5, 2019As the weekend wraps up and the fresh trading week begins, traders and analysts alike will likely garner greater insight into whether Bitcoin Cash is able to continue surging past its resistance in the lower-$300 region.Featured image from Shutterstock.
You can now receive bitcoin’s experimental lightning payments with a few taps of an Apple smartwatch.
Launched Sunday by Bluewallet, one of the more popular lightning network wallets, their new app for Apple Watches allows users to receive bitcoin over its new, risky (but nonetheless promising) payment technology: lightning. Transactors can use the smartwatch app to generate a QR code — a square-shaped barcode — that someone else can then scan with their smartphone to send over a payment.
Bluewallet tweeted a sneak peek of the app weeks ago. But as of today, it’s officially downloadable from the iTunes store.
Product and UX engineer Nuno Coelho framed the app as an experiment, telling CoinDesk:
“It’s a small experiment we’re doing to put wallets on the watch. The first releases will be simple, allowing you to receive lightning payments.”
Why might someone want to receive lightning transactions via a smart watch? you might ask. Smart watches aren’t as popular as smartphones, but many use them for the convenience of tracking health and viewing phone notifications without actually pulling out the phone.
Bluewallet, to that end, is testing to see if users might like to use them for bitcoin payments as well.
“Sometimes the convenience of just [receiving bitcoin] with two taps from your wrist can be a relevant user experience, specially on the go or if you need to be fast,” Coehlo said, adding it might be useful if you’re buying bitcoin from someone, but “don’t feel comfortable” taking out your phone, you could just use the watch instead.
But Coehlo stresses that this is an experiment, since lightning technology itself is still very experimental, and they’re not sure how many users will actually want to use the app.
“If feedback is good, we’ll spend more time on the project,” he told CoinDesk. “It’s a very early stage industry so we’re trying to figure out how to build this stuff properly.”
Bluewallet, helmed by a team of three developers, is also working on other features to expand the wallet. “We would also like to move from being a third-party service, minimizing trust. That’s our most important goal at the moment,” Coehlo said.
Image via Bluewallet