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Buyers Control the Cryptocurrency Market More Than Any Time Since March 2017

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The percentage of cryptocurrency traders ‘in the buy’ has reached the highest level in over a year, a strong sign that the market’s two-week recovery has more room to grow.

Cryptocurrency Buy Markets Surge

Cryptocurrency buy orders now comprise nearly 93% of total market activity, according to data from TurtleBC. That’s the highest percentage since March 2017, when more than 96% of the market was in buy mode. At this time last month, only about 5% of the market was long cryptocurrency.

Interestingly, every major surge in buy orders in the last two years has come after a sharp decline in long positions. As TurtleBC indicates, when the buy market is less than 10%, it likely means that conditions have bottomed and traders are getting ready to purchase again.

The upsurge in buy orders coincides with a more than $130 billion recovery in cryptocurrency prices since Apr. 6, when the market bottomed near $249 billion. The recovery puts cryptocurrencies in bull market territory, based on the traditional definition of the term. Crypto assets were valued as high as $395.1 billion on Friday, according to CoinMarketCap. The total market cap has since fallen to around $382.2 billion.

The recent uptrend in prices has also been accompanied by a surge in trading volumes, with total market turnover more than doubling from earlier in the month. By Saturday, nearly $25 billion in cryptocurrency exchanged hands. The top-five exchanges – Binance, OKEx, Upbit, Huobi and Bitfinex – accounted for more than one-third of the daily turnover.

Markets Oversold

Gauging the intrinsic value of cryptocurrencies is a contentious subject that usually divides people along political, economic and philosophical lines. However, for most technical strategists, the market was extremely oversold following the first-quarter downturn. For example, bitcoin bottomed below $6,000 after hitting a record high near $20,000 just a few months earlier. A similar trend was observed across most major digital assets.

Advocates of fundamental analysis have been commenting for months that the underlying conditions in the market hadn’t changed very much from the peak of early January. If anything, fundamentals have improved with Lightning Network, new ICO protocols and more governments coming on board to support the blockchain industry.

Most knowledgeable observers of the cryptocurrency market, including Thomas Lee and Dan Morehead, believe now is a good time to buy.

In a recent interview with CNBC, Morehead explained that bitcoin had grown at a rate of 165% annually over the past five years. Gains of this magnitude mean that bitcoin rarely gets below its 200-day moving average. When it does, as was the case recently, now is a good time to buy.

Morehead believes bitcoin will reach $25,000 by year’s end. It currently accounts for roughly 38% of the total market, a figure that usually declines with the bull market.

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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4.7 stars on average, based on 769 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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Stellar Price Analysis: XLM Bulls are Back as Coinsquare Acquires StellarX

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  • XLM/USD is trading up around 4% on Friday, with the bulls looking to break out of a narrowing daily range.
  • Canadian cryptocurrency exchange has acquired StellarX, a decentralised platform.

XLM: Recent Price Behaviour

Stellar’s XLM has seen a pick-up in bullish momentum in the session on Friday, having jumped around 4% at the time of writing. The price has managed to stabilize somewhat after producing all-time lows down at $0.07318000. XLM/USD had remained within an extremely stubborn trend to the south, following the bears smashing out of a pennant structure. The price had been confined since from early December 2018 up to 20th January, when the breach occurred. As a result, a fresh wave of selling pressure hit XLM, forcing the mentioned new bottom.

Coinsquare Acquire StellarX

Canadian cryptocurrency exchange Coinsquare has acquired the StellarX decentralized exchange. StellarX is a trading platform built by the developers of the Stellar blockchain. The platform was initially launched in July 2018, offering fast transitions, zero costs, and a wide range of asset classes that include crypto, fiat and commodities. XLM is used as the base currency for trading across the decentralized exchange.

The camp at StellarX detailed the announcement via Medium, specifying that they will still be pressing forward with the outlined roadmap noted back in September of last year. StellarX detailed that the reason for the acquisition is to make way for the exchange to maximize its full potential. The platform will be able to leverage the sizeable regulatory experience that Coinsquare has, with their visions to build around the platform. It is worth noting that the Canadian exchange has a network with regulators in Canada, the United States, and Europe. Additionally, Coinsquare also previously managed to secure a relationship with one of Canada’s big five banks, the Bank of Montreal.

Moreover, Coinsquare already has experience with the Stellar network; it previously acquired BlockEQ in the back-end of last year for $12 million. Moving forward, StellarX is going to be led by BlockEQ’s co-founder Megha Bambra, with the sights to continue growing and enhancing the Stellar ecosystem. BlockEQ is a private Stellar wallet which allows users to have total control of their funds via a private key. The wallet is accessible on both mobile and desktop.

Technical Review – XLM/USD

XLM/USD daily chart.

XLM/USD has managed to find its feet after resuming the downside pressure seen throughout 2018 and carried into 2019. This year the price has dropped as much as 45%, due to the crypto market-wide cooling. Should the mentioned bottom area $0.07318000 remain intact, eyes will be on a retest of the breached pennant pattern structure. The bulls must breakdown a small resistance barrier, which is the upper part of the past fifteen trading days range.

Furthermore, the lower part of the pennant is tracking at $0.11150000; a move back here would complete the breakout and retest. Lastly, if this resistance holds firm and rejection occurs, then it could very well make way for another wave of selling pressure.

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 123 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Binance Coin Price Analysis: BNB Profit-Taking Kicks In as Binance’s Business Continues to Defy Cryto Winter

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  • BNB/BTC produces a double-top pattern formation, leaving the door open to further downside pressure.
  • Binance CFO confirms that the organization is still profitable, despite the ‘crypto winter’.

Binance Coin Price Behavior

The BNB token has been outperforming many of its peers over the past few weeks. Since the week commencing 3rd December, BNB/USDT has rallied a chunky 115%. The price recently pushed to its highest levels seen since June 2018, peaking around $0.0027000. Given the prolonged consecutive run north, it isn’t too surprising to see a cooling.

Observing where the price peaked earlier in the week on 12th February, BNB/USDT produced somewhat of a double-top formation. The high was very much in proximity to the top on 17th June 2018. Playing out to the textbook, the market bears piled in after reaching these heights again, as investors took profits following the strong run north from December 2018. As a result, the price is running at its third consecutive session in the red.

Binance Remains Profitable Despite Crypto Winter

The CFO of Binance Wei Zhou was recently speaking in an interview with CBNC, where he commented on the company’s position within the current market downturn. Zhou said, “To date, even in this bear market, we still run a profitable business”. Binance is known to not publicly disclose its financial performance; however, in the past, it has provided several hints that would suggest the business is financially secure.

Back in the summer of 2018, Binance CEO and Founder Changpeng Zhao (“CZ”) disclosed that the exchange’s revenue for the first half of 2018 was roughly $300 million. He did additionally project at the time that net profit would hit between $500 million to $1 billion by the year’s end.

It has been estimated that Binance achieved $446 million in profit last year. It has also been estimated that the Binance ICO offering back in 2017 saw the company raise $15 million for 100 million Binance Coin (BNB) out of 200 million in total supply. Additionally, as part of maintaining its coin, Binance uses 20% of its net profits to buy back BNB and eventually destroy 100 million BNB tokens, according to the whitepaper.

Technical Review – BNB

BNB/BTC daily chart.

Given the recent price developments, there are a couple of bearish confluences to back the bias south. A bull run occurred in such a short space of time, resulting in the price entering overbought territory. Elsewhere, as earlier detailed, the BNB/BTC is playing to the textbook after the double-top formation. The downside pressure could soon drastically pick up the pace, with eyes looking down towards the possible neckline of the technical pattern.

In terms of support, the range of $0.0014000-$0.0012000, which is the potential neckline of comfort, is part of the double-top textbook pattern. A failure of this area holding could see a fall down to 0.0008410, the low of March 2018.

BNB/USDT daily chart.

Looking at BNB/USDT, the bulls ran into massive supply heading into the big psychological $10.00 mark. The price has not comfortably traded above this level since October 2018. This time last week, BNB/USDT managed to break out to the upside from an ascending wedge pattern. There is room for a potential retest of this level, completing the breakout and retest. Support will be sought just on top of the breached pattern, tracking around $7.4000.

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 123 rated postsKen has over 8 years exposure to the financial markets. During a large part of his career, he worked as an analyst, covering a variety of asset classes; forex, fixed income, commodities, equities and cryptocurrencies. Ken has gone on to become a regular contributor across several large news and analysis outlets.




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Why Investors Should be Paying Attention to IOST

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The reason why banks have been able to become so profitable and untouchable is simple: they became infrastructure rather than a standalone company. When banks were ready to collapse in 2007, they were bailed out because they were seen as such an essential part of the economy that they couldnt be allowed to fail. As the terminology later emerged, they were “too big to fail”.

So what blockchain technology aims to do is replace this infrastructure with something more stable and scalable. As we saw in the Wells Fargo outage last week, the banks aren’t as secure as they look. This is why people look to Bitcoin as a new USD and Ripple as a potential “bank” of sorts.

Introducing IOST

Where IOST comes in is that there is a need for “infrastructure” that can facilitate the flow of payments between service providers. As the name Internet-of-Services token suggests, IOST is all about creating a payment network that makes the exchange of money for services frictionless and cheap.

IOST is designed to be almost a mix of IOTA and Bitcoin, but with the downsides of each mostly mitigated. It has the goal of providing a throughput of 100,000 transactions per second,

More efficient management of funds between these providers is a use case that provides massive utility to the entire economy. It aims to reach this high transaction rate using a “Proof of Believability” consensus algorithm. There are scaling issues with “Proof of Work” and centralization risks with “Proof of Stake” algorithms, so it is natural they would want to find a different structure. The basic explainer of PoB is that believable nodes verify transactions quickly and are voted on based on the trustworthiness of their actions. Normal nodes verify samples of these believable nodes, which makes the system difficult (if not impossible) to cheat.

Evaluating Current Claims

The main criticism of IOST is that like many other competitors in the space, it has a lot of buzzwords but not a lot of concrete explanations on what it aims to do. “Scalable and secure blockchain that works” is too general and could be from any company’s website. Enticing promises are important, but it’s more important that progress and plans are shown.

Based on recent updates from the team, it seems like IOST may actually be ahead of schedule with the release of dapps and sidechain support moving up from Q3 2019 to Q2 2019. The same thing happened with the testnet launch, which was launched in October 2018 rather than the originally scheduled Q1 2019. Based on this alone, the professionalism of the company is clear, and you can make a bet based on that.

Trading Case

IOST is available on Binance, and with a market capitalization of $79 million (ranked 54th), it is by no means a small coin. The hope is that it will break through the 190 satoshi resistance level its been testing as recently as February 12th. The speed of pullbacks to the 185 satoshi range shows the potential for a future breakthrough.

In the immediate short-term you could pick up IOST whenever it goes below 180 sats and then flip it at 190. But a more profitable move would be to grab it now and wait for it to break through this resistance level. 210 sats would be reasonable to expect, with 240 being a top return play.

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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