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After the Collapse: Bitcoin Price Holds Near $6,500 Amid Strong Volumes

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Bitcoin’s price edged higher Thursday, as markets stabilized from one of the worst routs in recent memory.

BTC/USD Update

Bitcoin is currently trading at $6,457 on Bitfinex for a gain of 2.8% on the day. The leading digital currency is little changed compared with 24 hours ago.

Daily turnover in BTC crossed the $5 billion mark late Wednesday and has since fallen back to around $4.8 billion, according to data provider CoinMarketCap. As Hacked previously reported, bitcoin typically requires daily turnover of at least $4 billion to generate a sustained rally – at least, this is the trend we’ve observed during the 2018 bear market.

Bitcoin’s trading range experienced a patch of volatility between 0:700 UTC and 11:10 UTC Thursday, with prices fluctuating between $6,249.07 and $6,549.97, based on CoinMarketCap data. The coin swung through a similar peak and trough roughly 17 hours earlier.

In the meantime, the bitcoin price appears to be recovering from oversold levels, which means further gains could be likely. The closely watched relative strength index (RSI) bottomed at 30 on Wednesday before recovering at 35. Based on this indicator, BTC is still oversold.

The cryptocurrency market is increasingly tilting toward bitcoin, a sign investors are less keen on experimenting with altcoins and tokens during the latest downturn. Bitcoin’s share of the total market cap is a tad below 49%, the highest since December.

After the Selloff

The crypto universe is coming off one of its worst days in recent memory as investors reacted negatively to headlines that the U.S. Securities and Exchange Commission (SEC) is delaying a ruling on a highly-touted bitcoin ETF. In the case of bitcoin, prices fell through a critical support cluster on Wednesday en route to fresh three-week lows.

With the loss, bitcoin has not only reversed July’s strong recovery, it has entered bear-market territory based on the traditional definition of the term. The next critical line of support is likely $6,000 – a key psychological threshold. Buyers have previously shown a vested interest in protecting this level.

Although piecing together a short-term outlook is difficult following yesterday’s collapse, bitcoin must return to the $7,000 range to shake off bearish headwinds.

The cryptocurrency fell below $6,000 on multiple occasions this year, with the most recent swing low occurring in late June. Over the next four weeks, BTC values would rise more than 20%.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 648 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Is BTC Still the Real Bitcoin? Not According to Roger Ver

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Anyone familiar with Roger Ver may have already heard him proclaim the benefits of Bitcoin Cash (BCH), while deriding the development path taken by Bitcoin (BTC).

That development path has been largely guided by the overseeing hand of Blockstream – a privately funded company which has itself provided much of the funding for Bitcoin’s development.

A Departure from the BTC Vision

While Roger Ver’s constant assault on Blockstream and BTC on Twitter may prove irksome to some – it does appear to be founded on genuine reasons. Ver believes that features like the Lightning Network and Liquid Network detract from the original ideals set forth by Satoshi Nakamoto in the original Bitcoin whitepaper.

Furthermore, Ver and many others maintain that Blockstream purposely derailed the development of Bitcoin, purely so that they could then step in and get rich selling a product that was never needed in the first place.

As Ver recently told his Twitter followers:

“Supporters of lightning network intentionally crippled the world’s best working and most popular cryptocurrency (Bitcoin) in an attempt to push people onto something that doesn’t work, isn’t ready yet, and may never be able to work!”

The crippling of Bitcoin Ver refers to is the refusal by Blockstream to increase block sizes in order to increase scalability. What many believe should have been a straightforward issue – and one that was even touted by Satoshi Nakamoto himself – eventually became a farce.

Rather than increase block sizes on the Bitcoin blockchain to hold more transactions, Blockstream instead decided to create and sell their own products, such as sidechains and the Liquid Network, in order to solve the (self-sustained) scalability problem.

Earlier this week, Ver tweeted:

“BTC is the only coin in existence with intentionally limited on-chain capacity.”

Conflict of Interest?

As for Blockstream, they have made no secret of their intentions to make money from their Bitcoin activities. The company plans to provide sidechain services for investors using the newly created Liquid Network – a system which sees Bitcoin swapped out for a pegged sidechain token.

Some people may see a conflict of interest here. But even if we put conspiracies and speculation aside, this tweet by Blockstream CEO Adam Back suggests they aren’t too interested in maintaining the Bitcoin mainchain:

“I bet they’d pay $100/tx for digital gold, and mid-sized international remittance, I would. Still be really good if fees were much lower.”

The tweet refers to speculation on what the future price of a Bitcoin transaction would be, and seems to confirm that Blockstream see Bitcoin as a remittance tool for large-scale investors, rather than cheap, efficient P2P digital cash.

When Bitcoin started it was supposed to be a decentralized, permission-less, trust-less, immutable and therefore uncensorable alternative to the existing financial hierarchies and centralized infrastructures.

Even if you like the idea of Lightning Network hubs, block producers, and state channels, one thing you can’t say about them is that they’re decentralized, permission-less or trust-less.

Bitcoin Cash (BCH) was forked from Bitcoin in 2017 after many in the BTC community became dissatisfied with the blockchain’s direction. Bitcoin Cash essentially acts as the pre-Blockstream version of Bitcoin.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 81 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Bitcoin

Bitcoin Price Resumes Slide as Volumes Dip, China Tariffs Weigh on Bitmain

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Bitcoin’s price declined on Friday, as tepid trade volumes kept the bulls in check following a stalled recovery attempt earlier in the week. On the news front, President Trump’s massive import duties on Chinese goods is beginning to take its toll on Bitmain, the nation’s largest mining harder manufacturer.

BTC/USD Update

After holding above $6,500 for most of the week, bitcoin’s price fell 1.3% on Friday to $6,452. Over the last 24 hours, BTC fluctuated between $6,549 and $6,450, according to CoinMarketCap.

The bitcoin price was still trading at a hefty premium on Bitfinex following an early-week implosion of Tether, a controversial stablecoin that lost its peg to the U.S. dollar. On Bitfinex, BTC/USD is trading around $6,578.

Bitcoin’s trade volume has declined sharply throughout the week. Over the last 24 hours, BTC turnover on virtual currency exchanges amounted to $3.8 billion. BitMEX, a popular derivatives platform, continues to be the largest market for BTC trades.

Even with the slump, bitcoin’s share of the overall cryptocurrency market capitalization remained close to 54%. Bitcoin’s dominance rate has increased in recent weeks as altcoins and tokens failed to make traction. At current prices, bitcoin has an overall capitalization of $111.9 billion. At the time of writing, the combined market cap of all digital assets was $207.5 billion. More than $11 billion in daily volumes were recorded for all assets combined.

Tariff War Takes Its Toll

The Trump administration’s imposed tariff war on Chinese producers is beginning to affect the nation’s bitcoin mining manufacturers. As the South China Morning Post recently reported, Bitmain has been dealing with new tariffs since Aug. 23. Two months prior, the company’s Antminer S9 product was reclassified by the U.S. Trade Representative as “electrical machinery apparatus,” which makes it subject to new taxes.

The import duties will exacerbate an already harsher outlook for the blockchain conglomerate. Bitmain has seen a sharp drop in mining rig demand caused by the yearlong slump in cryptocurrency prices. As a result, analysts foresee sizable losses in the company’s second-quarter earnings report.

Bitmain isn’t the only China-based blockchain company feeling the pinch of a new tariff war. Canaan and Ebang – China’s other major bitcoin mining manufacturers – could see a decline in shipments and profitability in the coming months. All three companies have announced plans to issue an initial public offering (IPO) in the not-too-distant future.

President Trump has imposed tariffs on more than $250 billion of Chinese goods. While Beijing has responded with countermeasures of its own, it will not be able to match the U.S. dollar-for-dollar given its large surplus with the country.

On Friday, the Chinese government reported annual GDP growth of 6.5% in the third quarter, the slowest since 2009.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 648 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Analysis

Crypto Update: Coins Extend Losses as Bulls Fail to Show Up

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While the major cryptocurrencies haven’t been able to gain ground following Monday’s Tether-induced turmoil, the market has been stable in the past few days, and the top coins managed to hold up above their short-term support levels.

After yesterday’s slightly bearish session, overnight, Bitcoin, Ethereum, and Ripple all drifted the narrow ranges that developed during the week, and most of the smaller coins also turned lower, even as volatility remains relatively low.

The total value of the market dropped to $207 billion, but it’s still well above the bear market low, and the segment avoided a major technical breakdown that was looming after last week’s selloff. That said, the long-term picture is still bearish in the case of most of the majors, and our trend model is also on sell signals across the board from a short-term perspective.

On another negative note, Ripple and Stellar also joined the decline yesterday after showing strength this week, and the segment is still missing a bullish leadership.


BTC/USD, 4-Hour Chart Analysis

While Bitcoin dropped below the very narrow post-spike trading range, it continues to trade above the primary support level near $6275, and well above the lows from last week. We maintain our short-term sell signal on the coin, as it failed to recapture the $6500 level, and although the long-term signal is still neutral for BTC traders still shouldn’t enter positions here.

Further resistance levels are ahead near $6750 and $7000, while above the key long-term support zone near $5850, a weaker level is also found near $6000 and the next major zone is between $5000 and $5100.

Ethereum Dips Below $200 as Ripple Tests Long-Term Zone Again

XRP/USD, 4-Hour Chart Analysis

As Ripple’s relative strength faded, the third largest coin quickly gave back most of Monday’s gains, and now it trades right at the key long-term support/resistance zone between $0.42 and $0.46 zone. The lack of bullish follow-through is a negative sign for the whole segment and it gave another confirmation of the still apparent selling pressure on the majors.

With that in mind, traders still shouldn’t enter positions here, even as XRP remains above the recent triangle consolidation pattern, with strong resistance ahead at $0.51, $0.54, $0.57, and with further resistance zones found near $0.375 and $0.35.

 

ETH/USD, 4-Hour Chart Analysis

Ethereum showed no sign of relative strength this week, and the coin is back below the $200, although the decline also lacked momentum so far. The second largest digital currency is clearly above the next strong support level at $180, with further levels just below that near $170 and $160.

ETH remains on sell signals on both time-frames given the dominant broader declining trend and the short-term weakness, and odds still favor the test of the bear market low in the coming weeks, with strong resistance levels still ahead at $235 and $260.

IOTA/USD, 4-Hour Chart Analysis

Most of the smaller altcoins are also under clear selling pressure, with the likes of Monero, IOTA, EOS, and NEO all drifting lower in the past couple of days. Litecoin also followed the broader market lower so far today, and the coin is already testing the key $51 level, as we expected after showing weakness earlier on this week. A move below primary support would warn of a test of the bear market low near $47 with the next major zone found at $44.

LTC/USD, 4-Hour Chart Analysis

With that in mind, traders and investors should stay away from the coin until at least s short-term trend change, with strong resistance levels ahead near $56, $59, and $64.

Featured image from Shutterstock

Disclaimer:  The analyst owns cryptocurrencies. He holds investment positions in the coins, but doesn’t engage in short-term or day-trading, nor does he hold short positions on any of the coins.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 380 rated postsTrader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.




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Hacked.com and its team members have pledged to reject any form of advertisement or sponsorships from 3rd parties. We will always be neutral and we strive towards a fully unbiased view on all topics. Whenever an author has a conflicting interest, that should be clearly stated in the post itself with a disclaimer. If you suspect that one of our team members are biased, please notify me immediately at jonas.borchgrevink(at)hacked.com.

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