Bitcoin is trading back in an uptrend above the $7,800 and $7,700 support levels against the US Dollar. BTC could start another strong uptrend if it settles above $8,200.After a downside correction, bitcoin price found support near $7,700 against the US Dollar.The price is currently rising, but it is facing hurdles near $8,200 on the upside.There is a key breakout pattern forming with resistance near $8,160 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).The price is likely to rally if it climbs above $8,160 and successfully settles above the $8,200 barrier.Bitcoin Could Rally SoonThis past week, bitcoin started a downside correction from the $8,473 high against the US Dollar. BTC price declined below the $8,200 and $8,000 support levels.However, the $7,700 and $7,600 levels acted as a strong support. Moreover, the price stayed well above $8,500 and the 100 simple moving average (4-hours). A swing low is formed near $7,659 and bitcoin price is currently trading higher.There was a break above the 50% Fib retracement level of the downward move from the $8,473 high to $7,659 low. The current wave is facing hurdles near the $8,200 resistance area.Bitcoin PriceBesides, there is a key breakout pattern forming with resistance near $8,160 on the 4-hours chart of the BTC/USD pair. Finally, the 76.4% Fib retracement level of the downward move from the $8,473 high to $7,659 low is also near the $8,280 level.Therefore, a clear break above the $8,200 and $8,280 levels could set the pace for a fresh rally. In the mentioned bullish case, bitcoin price could surge towards $8,500 and $8,800.Main Buy Zones for BTCConversely, there are chances of a downside break below the triangle support near $7,900 and $7,850. The main supports and buy zones are near $7,700 and $7,600.A successful close below the $7,600 support could start a substantial decline in the coming sessions. The next major support is near the 100 simple moving average (4-hours) at $7,530, below which the price is likely to drop towards the $7,000 level.Looking at the chart, bitcoin price is showing signs of a bullish break above the $8,200 resistance. The only thing holding it back is $8,280. A successful close above $8,280 could set the pace for a strong rise towards $8,500 and $8,800.Technical indicators4 hours MACD – The MACD for BTC/USD is likely to gain bullish momentum.4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.Major Support Level – $7,600Major Resistance Level – $8,280
Archives for January 11, 2020
Ethereum defied gravity and trading with a bullish bias above $135 against the US Dollar, similar to bitcoin. ETH price is likely to continue higher above the $150 level.ETH price remains well supported above the $135 and $138 levels against the US Dollar.The price is showing positive signs and likely to surge above the $150 level in the near term.There is a key bullish trend line forming with support near $140 on the 4-hours chart of ETH/USD (data feed via Kraken).Bitcoin is also showing a lot of positive signs above the $8,000 support area.Ethereum Price Could Break $150This past week, there were bullish moves in Ethereum above $132 against the US Dollar. ETH rallied towards the $135 level, later corrected lower, and now finally trading higher with a positive bias above the $135 level.A new yearly high was formed near $148 and the price started a downside correction. There was a break below the 23.6% Fib retracement level of the upward move from the $135 low to $148 high.However, the decline was protected by the $140 area and the price is now well above the 100 simple moving average (4-hours). Moreover, the 50% Fib retracement level of the upward move from the $135 low to $148 high is acting as a strong support.More importantly, there is a key bullish trend line forming with support near $140 on the 4-hours chart of ETH/USD. If there is a downside break below the trend line below $138, there is a risk of a strong decline.Ethereum PriceOn the upside, there are key hurdles near the $145 and $148 levels. A clear break above the $148 level could set the pace for a bullish break above the $150 level in the coming sessions.What’s Bearish Case for Ethereum?The main support on the downside is near the $137 level and the 100 SMA. If there is a downside break below the $137 and $135 levels, there is a risk of a clear bearish break.Therefore, a successful break and close below the $135 level might set the pace for a fresh decline. The next key support is near $130, below which it may perhaps open the doors for a push towards the $125 level.The above chart indicates that Ethereum price is showing a lot of positive signs above $135 and it likely to surge above the $150 level.Technical Indicators4 hours MACD – The MACD for ETH/USD is gaining strength in the bullish zone.4 hours RSI – The RSI for ETH/USD is currently well above the 50 level.Major Support Level – $135Major Resistance Level – $148
Bitcoin is going mainstream. Kinda. It’s going mainstream in a weird twisted and sadistic way, anyway.On the Friday night episode of The Late Show with Stephen Colbert, hosted by, uh, American comedian and personality Stephen Colbert, brought up the leading cryptocurrency, thrusting Bitcoin into the brain of millions in a weird way.Related Reading: Crypto Tidbits: Elon Musk Pokes Bitcoin Bear, Japanese Giants Delve Into Cryptocurrency Mining, Baidu’s Blockchain BetaBitcoin, a Black Market Fiat Money?In this latest episode of Colbert’s show, he used Bitcoin, specifically the sometimes shady mining aspect of the cryptocurrency, to open up his “Meanwhile” segment, quipping:“Once in a while, I like to scrap together a bunch of old, stolen computers, throw them in a basement with an illegal hook-up to the municipality power supply, and mine for Bitcoin that makes up the black market fiat currency news that is my segment.”Bitcoin shout-out last night on The Late Show with Stephen Colbert pic.twitter.com/XH0WEuKsEu— Rhythm (@Rhythmtrader) January 11, 2020This is the latest time he has mentioned our favorite yellow-orange coin in the past few months. Previously, as reported by this very outlet, Colbert joked that Bitcoin is a boring topic in the following context:“Let’s see, places I’d rather be than a Trump rally off the top of my head: the DMV, the dentist, someone else’s child’s clarinet recital, a Soviet gulag, covered with honey and staked on an anthill, sliding down a 50-foot razor blade into a bathtub of gin, and in conversation with someone that knows a lot about Bitcoin — go on, go on about blockchain.”This continues a trend of show hosts bashing Bitcoin. In 2018, British comedian John Oliver did an entire segment on crypto. And no, he didn’t laud BTC, he instead took some time to mention BitConnect, including the age-old video of Carlos Matos waxing poetic about the benefits of the “investment opportunity,” along with “meme” altcoin Dogecoin, which then had an extremely high valuation nearing $1 billion.Related Reading: Why Analysts Think Bitcoin Price On Verge of Crash to $6,000Not All Celebrity Mentions Are BadWhile Colbert is seemingly joining the Bitcoin hate train that already has Warren Buffett and President Trump on board, not all celebrities hate BTC.Last February, Elon Musk — co-founder of PayPal, chief executive of SpaceX and Tesla, founder of the Boring Company, among other titles — discussed his thoughts on Bitcoin seemingly for the first time.To the surprise of many, he shared his excitement for the technology, claiming that the cryptocurrency has an underlying structure that is “quite brilliant,” adding that he thinks maybe Ethereum and “maybe some of the others” might have technological merit. The renowned technologist concluded by stating that he thinks “without a doubt” that crypto is a “far better way to transfer value than pieces of paper.”Musk’s love for Bitcoin was echoed by other prominent technologists, namely Jack Dorsey, the head of both Twitter and fintech company Square. Dorsey said on the Joe Rogan Podcast that he thinks Bitcoin will soon become the native currency of the Internet, before adding in a Square earnings call that he “loves Bitcoin.”Related Reading: XRP’s Epic 12% Rally is Bullish for Ethereum Price; Here’s WhyFeatured Image from Shutterstock
Ever since Bitcoin (BTC) started declining last July, falling as low as $6,400 by the middle of December, analysts have been wondering when bulls are going to step in and push cryptocurrencies higher once again.According to a simple observation of Bitcoin’s historical market cycles, the next parabolic rally could start soon. Very soon.Related Reading: Why Analysts Think Bitcoin Price On Verge of Crash to $6,000Bitcoin Halving to Boost Prices Pre-Event, Historical Data SuggestsCryptocurrency analyst Nunya Bizniz recently made an eerily bullish observation about Bitcoin.He noted that in the two previous market cycles of the BTC market, the cryptocurrency performed extremely well starting 120 days (four months) out from the cycles’ respective block reward reductions, known as “halvings” or “halvenings.”In the four months prior to the first halving in 2012, the price of BTC rallied dozens of percent higher from $10 to around $14 by the time of the event; and in the four months prior to the second halving in 2016, the price of Bitcoin went effectively parabolic, running from $432 to $700.Bitcoin is about 120 days away from the halving.What was price action like 120 days prior to the first two halvings?Whether you believe its priced in or not, if past is prologue – volatility may be expected. pic.twitter.com/7peG6Ir0m4— Nunya Bizniz (@Pladizow) January 10, 2020This simple historical analysis, which is backed up by the fact that investors attempt to “front-run” the halving by buying Bitcoin beforehand, suggests that the crypto market may soon explode higher ahead of the halving, potentially entering into a parabolic uptrend.Related Reading: A Big Plunge to Sub-$100 for Ethereum Is Imminent If This HappensAnalysts AgreeThe technicals purportedly corroborate the historical trend of Bitcoin rallying strongly ahead of the block reward reduction.Per previous reports from this very outlet, Financial Survivalism, a pseudonymous analyst that last week called Bitcoin’s surge into the $8,000s when the asset was trading in the high-$6,000s, recently said that he thinks BTC can trade at $20,000 by July 1st, 2020, just a month or two after the halving.While this may sound lofty, he went on to rationalize the prediction, drawing attention to an array of technical signals implying that bulls are about to assert a large amount of control over the market:The Lucid Stop and Reversal has printed a bullish candle for the first time since July 2019, when BTC was trading well above $10,000.The Average Directional Index on a daily basis has seen the first bullish crossover since March 2019.The one-week Relative Strength Index for Bitcoin is “getting ready to test 50,” a level that if broken through may imply dramatic upside.The one-day Ichimoku Cloud has formed a bullish TK cross.Related Reading: Elon Musk Just Dropped the Bitcoin Bomb On Twitter, AgainFeatured Image from Shutterstock
Another week, another round of Crypto Tidbits. The second week for the year 2020 was a lot more exciting for Bitcoin and the broader cryptocurrency space than the first. Per data from Coin360, the leading digital asset, BTC, gained 10% on the week, hitting $8,160 as of the time of writing this. Altcoins across the board have posted similar gains, with forks Bitcoin Cash, Bitcoin SV, and Litecoin really standing out. Market aside, the underlying industry was as busy as ever, with there being a number of stories published over the past seven days that could have a larger impact on the cryptocurrency space. They are as follows.Related Reading: Crypto Tidbits: Bitcoin Branded a Scam, Ethereum Upgrade Completed, Telegram’s ICO in CrisisBitcoin & Crypto TidbitsElon Musk Drops the “Bitcoin” Bomb on Twitter: In a tweet published Friday morning, SpaceX and Tesla CEO Elon Musk joked that “Bitcoin is *not* my safe word.” (If you don’t know what “safe word” means, please search it up.) The tweet quickly went viral, garnering over 100,000 likes on Twitter. It isn’t clear what exactly the technology entrepreneur was suggesting in tweeting this, though he has long referred to this industry with jest. Musk joked he was the chief executive of Dogecoin during April Fool’s Day in 2019, once randomly tweeted “Ethereum”, and once joked about “cryptocurrency” being his safe word.Bitcoin is *not* my safe word— Buff Mage (@elonmusk) January 10, 2020Japanese Corporations Enter Crypto Mining Game: According to a recent report from Bloomberg published on January 7th, SBI Holdings — a financial services company group based in Tokyo, Japan that works closely with crypto-centric fintech upstart Ripple — and GMO Internet, an internet service provider that has been mining cryptocurrency for multiple quarters now, has entered an agreement with Nothern Bitcoin AG subsidiary Whinstone Inc. This agreement allows the two Japanese firms to use Whinstone’s facilities in Rockdale, Texas to mine Bitcoin and likely other cryptocurrencies. Whinstone’s parent company, Northern Bitcoin, has said that their Rockdale-based facility will have a mining capacity of 1 gigawatt by the end of 2020, a record.Chinese Tech Giant Baidu Launches Blockchain Beta: On January 6th, Baidu — a Chinese technology and internet giant most often called “China’s Google” here in the West — unveiled its latest project: “Xuperchain,” a blockchain system for businesses, now going into beta. According to the translated version of a flashy new website outlining this new offering, this now-in-beta network will allow users, preferably operators of smaller businesses, to build and deploy blockchain applications to help bolster their businesses.Bitcoin CME Options Launch Nears: Next Monday, January 13th, the CME will launch a Bitcoin options derivative market, which analysts will say will boost institutions’ capability to hedge risk and invest in this market.NBA Player to Soon Use Ethereum: Brooklyn Nets player Spencer Dinwiddie revealed that he will soon be launching a bond representing himself on the Ethereum blockchain in collaboration with security token platform Securitize.Bitcoin Exchange Deribit Leaves Europe as Regulatory Pressure Mounts: In a blog post published on January 9th, Bitcoin derivatives platform Deribit, a platform frequented by many crypto traders, revealed that it is officially leaving the Netherlands due to the Fifth Anti-Money Laundering Directive (5AMLD), a regulation set to be implemented in a majority of European countries on January 10th. Deribit will be setting up operations in Panama, where there are laxer laws, to operate the new platform. “The Platform will move to Panama, as we wish to continue offering an easily accessible trading platform at very low costs. Regardless of this move, Deribit users will still need to comply with KYC laws to trade Bitcoin on the platform, with all being forced to submit their legal name, name, date of birth, address, and country of residence.Featured Image from Shutterstock
LAS VEGAS – In tech there’s an old adage: “hardware as hard.” It’s much easier to prototype and test a product when a mistake can be fixed by deleting and rewriting a few lines of code.
At the Consumer Electronics Show (CES) in Las Vegas this week, though, two crypto companies are leading with atoms rather than bits, and it seems to be working.
Their products won “CES Innovation Awards” and coveted spots at the gadget showcase, where hordes of people pour through the Sands Expo Center.
We first encountered Pundi X at CES when speaking MakerDAO in the “Digital Money” section. The MakerDAO Foundation was showing off its integration with the XPOS point-of-sale system, a device that Pundi X made to both sell crypto and also for merchants to accept crypto as payment.
‘”We want to offer the user an option to control their data,” Pundi X’s Soohan Han told CoinDesk at the company’s booth.
Han said that the point of the BOB phone is to give users confidence that their communications really aren’t being monitored. He also promised the phones’ ability to bypass censors. For example, the United Arab Emirates blocks VoIP, but Han said he was able to get past it with his BOB phone on a visit there.
The phone runs on Pundi X’s own f(x) blockchain (the company is also, incidentally, planning to move XPOS to its own blockchain, though it was built for ethereum).
The BOB phone is able to switch back and forth between Android mode and an Android fork built for blockchain usage that’s ready to support dapps. Similarly, the Sirin Labs phone supported dapps, but it did not run on an operating system designed around blockchain.
Han said the aim for Pundi X is to create a third operating system, one that other telephone companies will build phones for.
“There isn’t any decentralized operating system out there. We want to offer (f)x OS to give people a way to control their data if they want to,” Han said.
Han said they expect to target the tech-centric and security-conscious with this mobile device. Super privacy-conscious users might be somewhat skeptical of an operating system built on Android, but there are few options out there.
One non-blockchain offering built on open source software is the Librem 5 by Purism, which runs PureOS, based on Linux. The Librem has physical switches that disconnect the device’s camera and microphone so a user can really know they aren’t working.
Pundi X raised $30.5 million in a 2017 ICO, according to Binance, which has been used to build and deploy XPOS. Its phone, BOB, is available now on Indiegogo for pre-order as low as $554. Han expects the phone to ship this year.
Similarly, “Internet of Trusted Things” startup IoTeX was showing off its Ucam device, a home security camera that shares footage to the cloud, but it isn’t actually branded as IoTeX.
“Our company is a blockchain platform, and we are working with other IoT and hardware manufacturing companies to make private and secure IoT devices,” IoTeX’s Dorothy Ko explained.
Instead, a company that’s been building cameras for years, Tenvis, will build and offer the device. The product earned CES 2020’s recognition in the Cybersecurity & Personal Privacy category.
“This is a hyper-saturated market,” IoTeX Head of Business Development Larry Pang told CoinDesk. “Tenvis came to us looking for the next feature, and that’s privacy.”
Ucam footage will be viewable through a mobile app and that app will hold the private key for everything it captures. That way, even if the user decides to store the data in the cloud, the cloud service provider won’t be able to view it.
The app can handle one or several cameras.
Video can be held on board the camera on an SD card, stored in the cloud or even on IPFS, though cloud storage of any kind is likely to incur a fee. IoTeX will offer that service but the price isn’t set yet, Pang said. If the user just holds it locally there will be no additional charge.
“We really want to give people the ability to have privacy and a great user experience,” Pang said. Ucam will retail at $50 when it comes out, he added.
Neither company wants to devote itself to making hardware.
“The good thing about this is all the cameras you see on the [CES] floor today can ultimately be powered by IoTeX,” Pang explained. His company is working from a platform-as-a-service model.
They’d like to see IoTeX running various indoor and outdoor cameras by various brands, all connected to one app and a private key controlled by the owner.
IoTeX was able to bypass the hardware execution process by partnering with an existing company that already had it down.
That said, Pundi X really is making a phone itself. In fact, the phone will come in a giant box and require some assembly by users, in order to open up the option of modularity to the device. It will even be possible to 3D-print parts for the phone.
The showcased BOB in the image above isn’t really the phone design. It’s a heavily modded design, showing off how a phone could showcase personality.
Han offered that Pundi X was probably one of the first movers in crypto into hardware. “Our business is not really just hardware,” he said. “The hardware is really just a byproduct of how we introduce the solution.”
That said, Pundi X doesn’t expect this to be a big run of phones. Han said that someone had to go first but they hope to see more companies building on the f(x) operating system in the future.
“We are not a phone company,” he said.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Bitcoin has been hovering within the lower-$8,000 region for the past day, struggling to gain any significant momentum as the resistance between its current price and $8,400 continues to absorb the majority of BTC’s buying pressure.Analysts are noting that Bitcoin may have to drop to a critical support level before it can muster up enough buying pressure to spark the next sustainable rally, which could lead the cryptocurrency to set fresh multi-month highs.Bitcoin Struggles to Gain Momentum as Analysts Anticipate Near-Term DownsideAt the time of writing, Bitcoin is trading up just over 1% at its current price of $8,160, marking only a slight climb from its daily lows of just over $8,000.$8,000 appears to be a key psychological price level for the cryptocurrency in the near-term, as it becomes support each time BTC is trading above it, and resistance when it is below.It is important to note that Bitcoin is currently stuck beneath a descending resistance line that was established earlier this week when it ran to highs of $8,400, and it is currently in the process of posting its fourth rejection at this line – assuming bulls aren’t able to generate any significant buying pressure in the coming few hours.UB, a popular crypto analyst on Twitter, mused the short-term impacts of this resistance in a recent tweet, explaining that he believes it means Bitcoin is in for an imminent test of $8,000.“$BTC – I’m short here half size until the Diagonal Resistance is broken. It’s hard to ignore the Lower Highs and overall weak follow through. Lose $7880 and I have my eyes on a sweep of the lows at $7700s. I may close early depending on the reaction at $8k,” he explained.$BTC – I’m short here half size until the Diagonal Resistance is broken.It’s hard to ignore the Lower Highs and overall weak follow through.Lose $7880 and I have my eyes on a sweep of the lows at $7700s.I may close early depending on the reaction at $8k. #Bitcoin pic.twitter.com/raoHJ5yaGh— UB (@CryptoUB) January 11, 2020Will a Dip to $7,900 Help Catalyze the Next Major Rally?Although a dip below $8,000 appears to be overtly bearish, CryptoBirb, another popular analyst, is noting that Bitcoin could require a visit to the lower boundary of the bullish pennant it is currently trading within at $7,900 before it can garner enough strength to surge higher.low timeframe $btc map pic.twitter.com/W9rhA99dvm— Crypto₿irb (@crypto_birb) January 11, 2020Assuming that the “low timeframe map” referenced above proves to be accurate, the next visit to $7,900 could spark a major upwards movement that allows Bitcoin to climb towards its trendline breakout target at just below $8,500.Featured image from Shutterstock.
The crypto community is on the fence on the May 2020 halving. Thomas Lee believes that it along with two catalysts will push bitcoin much higher. | Credit: Reuters/Dado Ruvic/Illustration
- The crypto community is on the fence regarding the May 2020 halving.
- Fundstrat founder Thomas Lee believes that the halving along with two other catalysts will push bitcoin to greater heights.
- Other analysts are also bullish on the orange coin as they predict that a new all-time high is on the horizon.
There’s an ongoing debate in the crypto community regarding the May 2020 bitcoin halving. Many are claiming that the bullish catalyst is already priced in. In other words, market participants who are expecting a sharp rise in bitcoin’s value once the halving occurs would be disappointed.
However, some heavy hitters believe that the halving is far from being priced in. One personality thinking along this line is Fundstrat founder Thomas Lee. The widely followed market analyst took to Twitter to share Fundstrat’s 2020 Crypto Outlook. The firm reveals that the cryptocurrency is poised to print gains of over 100 percent this year.
The Convergence of Three Catalysts to Send Bitcoin Into the Stratosphere in 2020
The top cryptocurrency rewarded investors with handsome gains of 92 percent in 2019. This year, Fundstrat predicts that the king of cryptocurrencies will perform even better. According to the firm’s 2020 Crypto Outlook report, there are three key factors that can act as bullish catalysts for the cryptocurrency.
The first one is geopolitical risks. Earlier this month, bitcoin’s value soared as the conflict between the U.S. and Iran escalated. Further tensions in the region on top of the trade war between the U.S. and China will likely cement bitcoin’s narrative as a safe-haven asset.
The second factor is the 2020 U.S. election. The uncertainty in the outcome of the election might push big money investors to hedge with bitcoin. This would strengthen the cryptocurrency’s use-case as digital gold.
Lastly, Fundstrat believes that the 2020 halving is not yet priced in. This catalysts alone should be enough to send the dominant cryptocurrency skyrocketing as seen in past performances.
Fundstrat’s expectations for bitcoin this year | Source: Twitter
Fundstrat believes that the occurrence of these three events will push bitcoin to gains greater than 100 percent. This would put the cryptocurrency in a strong position to become the best performing asset for the second year in a row.
The Halving to Be the Biggest Bullish Catalyst in 2020
Other analysts are also bullish on the orange coin as they look forward to the halving in May. For instance, Crypto Godfather believes that the bear market is coming to an end and bitcoin will once again ascend to $20,000.
Crypto Godfather gives bitcoin holders reasons to celebrate | Source: Twitter
Crypto Godfather is not the only analyst who thinks that bitcoin will recapture $20,000. The bullish Bitcoin Macro claims that the halving would only be priced in once bitcoin breaches $20,000.
The Bitcoin Macro hopped on the $20,000 bandwagon | Source: Twitter
We are still expecting a move to all-time highs, but if [the] $7,600 level is breached on the downside, then I think we see a swift move below $6,400 to make our final low.
The seasoned trader added,
From there, we would then have the rally to new all-time highs we have been looking for.
So far, bitcoin bulls have held support of $7,600, and the crypto is now trading above $8,000. As the digital gold continues to show signs of strength, it is becoming difficult to dismiss the bullish claims of Thomas Lee and other analysts. Looks like 2020 will be an exciting year for bitcoin hodlers.
Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
This article was edited by Gerelyn Terzo.
Last modified: January 11, 2020 5:00 PM UTC
Margin trading has arguably been one of the most popular features of the crypto markets that has drawn in floods of traders over the past few years. These traders are lured by the ability to trade the already volatile assets like Bitcoin with leverage as high as 125x on some platforms.Analysts have noted that the massive amounts of margin readily available to traders is one factor that has been driving the market’s volatility, as it allows users to magnify their positions without having to risk a significant amount of capital.Naturally, margin trading is filled with significant risk, and the Japanese government is now taking actions to bar traders from using large amounts of leverage, which could be a growing trend that impacts Bitcoin and the nascent crypto markets.Japanese FSA Looks to Limit Margin Trading Maximum Leverage to 2xIn a recent report from the Japan Times, the newspaper explains that the country’s Financial Services Agency (FSA) is currently moving to limit the maximum leverage available to users to a mere 2x, which is a far cry from the 25x, 50x, and even 125x that many traders are used to using.Essentially, leverage allows users to significantly increase their trading capital without having to risk a sizeable amount of their personal funds.For instance, if a user looking to trade with $100 worth of Bitcoin opens a 100x leveraged position, they will essentially be trading with $10,000 worth of Bitcoin.This can expose them to massive upside should the asset’s trend favor their position, but high amounts of leverage also come with liquidation prices incredibly close to the trader’s entry price, meaning that tiny price fluctuations can lead the trader to lose all the funds they used to open the position.Will This New Rule Impact Bitcoin and the Crypto Markets?It’s no secret that a large amount of the cryptocurrency markets trading volume stems from active investors who are tapping into margin, but it is important to note that most countries have already regulated these financial instruments, with investors finding simple ways to bypass these restrictions.Bitcoin margin trading with significant leverage is actually banned in many countries, including the United States, due to the platforms not adhering to those specific country’s regulations.Traders, however, bypass these bans by using Virtual Private Networks to create trading accounts with the appearance that they are in a country that allows crypto margin trading.Furthermore, many of these platforms do not require users to undergo Know Your Customer (KYC) proceedings, which means that users don’t have to verify their nationality or country of residence.That being said, it is unlikely that this new bout of regulations by Japan’s FSA will have any major impact on traders, as they can easily utilize VPNs to access platforms that offer up to 125x leverage.Featured image from Shutterstock.
Ethereum has been closely tracking Bitcoin’s price action over the past several days, which has led it to incur heightened volatility that has generally favored ETH’s buyers. The crypto has now been able to reclaim its position within the $140 region, which comes after its bulls defended a key support region.Analysts are now noting that the strong defense of this support region could mean that the cryptocurrency is poised for a significant upwards swing that could lead it to surge 25% or more, although all eyes are closely watching to see where Bitcoin goes next.Ethereum Breaks Back Into $140 Region as Analysts Watch to See Where Bitcoin Goes Next At the time of writing, Ethereum is trading up over 2% at its current price of $144, which marks a significant climb from its recent lows of $134 that were set a couple of days ago when Bitcoin visited its key support region at $7,700.It does appear that ETH’s current critical support exists at $135, as this is around where it has found significant buying pressure following its recent rally, and resistance prior to the uptrend.In the near-term, how major altcoins like Ethereum trend will likely depend primarily on where Bitcoin goes next, as most cryptocurrencies have formed a close correlation with BTC as of late.“Large Cap USD Pairs: Many large-cap coins are hitting key resistance on their USD pairs. $BTC, $ETH, and $LTC are all shown here. Considering they are generally underperforming on $BTC pairs, it would take a major Bitcoin move up to break out here. Not particularly encouraging,” The Wolf of All Streets, a popular cryptocurrency analyst on Twitter, explained.Large Cap USD PairsMany large-cap coins are hitting key resistance on their USD pairs. $BTC, $ETH, and $LTC are all shown here. Considering they are generally underperforming on $BTC pairs, it would take a major Bitcoin move up to break out here. Not particularly encouraging. pic.twitter.com/Ogh0eMj4pU— The Wolf Of All Streets (@scottmelker) January 9, 2020Will ETH’s Bounce at Support Lead It to Climb to $180 Next?Ethereum’s ability to post a strong bounce at its recent lows within the $130 points to the possibility that the cryptocurrency will soon see significantly further gains.Livercoin, another popular crypto analyst, noted in a tweet that ETH’s next key resistance exists at roughly $180, which could mean that’s how far this recent rally will extend before BTC meets insurmountable resistance.“Decent S/R flip on $ETH against dollar…wouldn’t short that,” he said.decent S/R flip on $ETH against dollawouldn’t short that pic.twitter.com/UDYyXBtQey— Livercoin (@livercoin) January 10, 2020If ETH does visit this level and bulls are able to decisively break above it, then it could continue climbing until it reaches $280, which is the next key level Livercoin is watching for.Featured image from Shutterstock.