Bitcoin price is well supported on the downside near the $3,900 and $3,850 supports against the US Dollar.The price is likely to accelerate gains above the $3,975 and $4,000 resistance levels.There is a major bullish trend line formed with support at $3,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could dip a few points, but buyers are likely to protect declines below $3,850.Bitcoin price is likely setting up for the next break above $4,000 against the US Dollar. BTC could gain bullish momentum towards $4,200 if it succeeds in surpassing the $4,000 resistance.Bitcoin Price AnalysisYesterday, we saw a minor downside correction from the $3,975 swing high in bitcoin price against the US Dollar. The BTC/USD pair traded below the $3,900 support level, but it found support near the $3,860 level. Later, it formed a support base above $3,860 and finally started a fresh upward move. It broke the 50% Fib retracement level of the recent decline from the $3,974 high to $3,861 low. Besides, there was a break above a connecting bearish trend line at $3,900 on the hourly chart of the BTC/USD pair.The pair settled above the $3,920 level and traded close to the $3,950 resistance. BTC tested the 76.4% Fib retracement level of the recent decline from the $3,974 high to $3,861 low. It is currently consolidating below $3,950, with a bullish angle. The current price action is positive and it seems like there could be more gains above $3,950 and $3,975. However, a successful break above the $4,000 resistance is must for an upside acceleration. The next key resistance is near $4,180 and $4,200 levels.On the downside, the main support is near the $3,900 level. There is also a major bullish trend line formed with support at $3,900 on the same chart. Should BTC decline below the trend line, it could test the $3,860 and $3,830 support levels. The final support is at $3,800 and the 100 hourly simple moving average. Below the 100 hourly SMA, the price could decline towards $3,720.Looking at the chart, bitcoin price is clearly trading with a bullish bias above the $3,900 and $3,860 supports. Therefore, there are high chances of more upsides above the $3,975 and $4,000 resistance. Buyers could aim for $4,200 if there is a successful hourly close above the $4,000 barrier in the near term.Technical indicatorsHourly MACD – The MACD is slowly gaining strength in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 50 level, with a positive angle.Major Support Level – $3,900 followed by $3,860.Major Resistance Level – $3,950. $3,975 and 4,000.
Archives for February 20, 2019
The total crypto market cap is preparing for more gains above the $132.5B resistance level.EOS price gained more than 7% recently and broke the $3.80 and $3.85 resistances.Bitcoin cash price is consolidating below the key $150 resistance level.Tron (TRX) price moved back above the $0.0250 resistance, but there was no follow through.Cardano (ADA) price is grinding higher and it could soon test the key $0.0500 resistance area.The crypto market is primed for more gains, with bullish moves in bitcoin (BTC) and Ethereum (ETH). EOS, BCH, ripple, tron (TRX), ADA and other altcoins are likely to accelerate higher.Bitcoin Cash Price AnalysisBitcoin cash price remained well bid above the $142 and $145 support levels against the US Dollar. The BCH/USD pair tested the $150 resistance level recently and later declined. However, the $145 support acted as a solid buy zone and later the price bounced back.The price needs to gain strength above the $148 and $150 resistance levels to move further higher in the coming sessions. In the mentioned case, the price could revisit the $160 resistance zone.EOS, Tron (TRX) and ADA Price AnalysisEOS price performed really well recently after it corrected lower from the $3.00 resistance. The price found support above the $2.70 support level and later bounced back. It is up more than 7% and moved above the $2.80 and $2.85 resistance levels. An immediate resistance is at $2.92, above which the price could test the $3.00 resistance zone in the near term. The key supports on the downside are $2.82 and $2.80.Tron price moved to and fro between the $0.0240 and $0.0255 levels. TRX price is currently traded above the $0.0250 resistance, but it must break the $0.0255 resistance to gain strength. The next main resistance is at 0.0262 and $0.0265.Cardano price remained well bid above the $0.0420 support area. ADA price recently broke the $0.0450 and $0.0465 resistance levels to set the pace for more gains. The current price action is positive and it seems like the price could continue to move higher towards the $0.0500 resistance area in the near term.Looking at the total cryptocurrency market cap hourly chart, there is a solid uptrend in place above the $125.0B support area. The market recently corrected lower and tested the $127.00B level. Later, it bounced back above $130.0B and it seems like it could break the $131.0B and $132.5B resistance levels in the next few hours. If buyers gain strength, the market cap could surge towards the $135.0B and $140.0B levels. Therefore, there could be more upsides in bitcoin, ETH, XRP, tron, bitcoin cash, litecoin, EOS, stellar, IOTA and other altcoins.
“Warning! This is all risky, it may all fail.”
That was how Patrick Byrne, CEO of Overstock, concluded his keynote about investing in blockchain at a Wednesday event in New York hosted by investment bank and brokerage Oppenheimer & Co.
Unusually formal in a suit and tie, Byrne electrified what had until that point been a fairly low-key crowd with his well-honed stump speech for blockchain’s transformative potential.
Oppenheimer clients filled more nearly 150 seats and were enthusiastically taking pictures of Byrne’s slides illustrating his vision of the most promising applications of blockchain.
He opened his presentation by providing a brief overview of traditional securities trading and its pitfalls – highlighting, as he has been wont to do for years, the fact that due to the arcane structure of today’s market, the ownership of stocks is indirect and somehow dubious.
In one of many lines to draw laughs from the crowd, he said:
“All the corporate shares in America are owned by the company called Cede & Co, and what you actually have is a contractual claim against a corporation, that has a contractual claim against another corporation, that has a contractual claim against DTCC, that has a contractual claim against Cede & Co. What can go wrong?”
Byrne went on to proclaim that blockchain, by improving transparency and minimizing the need for trust, can bring capital markets to the state where “all kinds of systemic risks go away,” as people cannot meddle with the process or act dishonestly.
“Imagine we have a magic ledger which is cryptographically protected, public and transparent – no way to cheat,” he mused, provoking a few more chuckles in the room.
Reiterating his estimation that in the course of the next decade all types of securities can be tokenized, bringing a potential value of new blockchain securities of $914.4 billion, Byrne turned to Overstock’s favorite child: the security token trading platform tZERO, which officially launched this year (though trading there so far has been slow and limited to Wall Street hours.)
The market structure concerns mentioned are what led to the development of tZERO over the past four years, he said, noting that despite these issues, the company was still developed in accordance with U.S. regulations.
Overstock’s team – and that of Medici Ventures, Overstock’s venture arm – has always been cautious and “SEC-conscious” developing tZERO, Byrne emphasized, and the startup even “bought a piece of Wall Street” in the form of fintech company SpeedRoute, which was acquired in 2015.
The process has been slow, though steady.
“In December 2015, we applied to issue a public blockchain security — it took one year and $10 million of legal wranglings [but] we issued it,” he said.
Moreover, he wants to continue to focus on building tZERO out without violating either these regulations or otherwise harming his potential users, Byrne said, concluding:
“We’re not going to Mt Gox things.”
Patrick Byrne at the Oppenheimer conference, photo by Anna Baydakova for CoinDesk
Ripple price stayed above the $0.3200 support level, with a positive bias against the US dollar.This week’s followed key bullish trend line is in place with support near $0.3250 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair must stay above the $0.3250 and $0.3220 support levels to avoid a downside break.On the upside, a break above the $0.3300 and $0.3345 resistance levels could spark a rally.Ripple price is consolidating above key supports against the US Dollar and bitcoin. XRP/USD needs to overcome sellers near $0.3345 to climb higher once again in the near term.Ripple Price AnalysisYesterday, we saw the start of a downside correction from the $0.3460 high in ripple price against the US Dollar. The XRP/USD pair declined below the $0.3300 and $0.3200 support levels. The decline was strong, but the $0.3150 support acted as a barrier for sellers. There was no close below $0.3150 and the price remained well above the 100 hourly simple moving average. A low was formed at $0.3158 and later the price started a fresh upward move. It climbed above the 23.6% Fib retracement level of the last drop from the $0.3460 high to $0.3158 low.Later, there was a spike above the $0.3300 resistance level. However, there was no close above the $0.3300-0.3310 resistance zone. The price even failed to stay above the 50% Fib retracement level of the last drop from the $0.3460 high to $0.3158 low. On the upside, there are two connecting bearish trend lines in place with resistance near $0.3280 on the hourly chart of the XRP/USD pair. Buyers need to take out $0.3280 and $0.3300 levels to start a fresh upward move.On the downside, this week’s followed key bullish trend line is in place with support near $0.3250 on the same chart. If there is a downside break below the $0.3250 and $0.3220 supports, there could be more losses. The next key support is near $0.3160 and the 100 hourly simple moving average.Looking at the chart, ripple price is clearly approaching the next key break either above $0.3300 or below $0.3220. The current price action is slightly bearish, with chances of a break below $0.3320. However, the $0.3160 swing low and support holds the key. As long as the price is above $0.3160, there are chances a decent comeback above $0.3350.Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently flat in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD dipped recently, but it managed to stay above the 50 level.Major Support Levels – $0.3250, $0.3220 and $0.3160.Major Resistance Levels – $0.3280, $0.3300 and $0.3345.
ETH price remained well supported above the $138 and $140 levels against the US Dollar.The price recovered, but it struggled to break the $148 and $149 resistance levels.There is a new connecting bullish trend line forming with support at $143 on the hourly chart of ETH/USD (data feed via Kraken).The pair remains well bid and it is likely to break the $148 and $150 resistance levels in the near term.Ethereum price is trading nicely in a positive zone against the US Dollar and bitcoin. ETH/USD will most likely break the $150 resistance and it could even surpass the $155 level.Ethereum Price AnalysisYesterday, we saw a downside correction in ETH price from the $149 and $150 resistances against the US Dollar. The ETH/USD pair declined below the $144 support level, but the $138 and $140 levels acted as a solid buy zone. As a result, the pair bounced back and traded above the $144 and $146 levels. However, sellers remained in control near the $148 and $149 resistance levels. There was no successful break above the $148 and $150 barriers. The last swing high was formed just below $149 and the price is currently correcting lower.It already tested the 50% Fib retracement level of the last wave from the $140 swing low to $149 swing high. On the downside, there are many supports near the $143 and $144 levels. There is also a new connecting bullish trend line forming with support at $143 on the hourly chart of ETH/USD. Besides, the 61.8% Fib retracement level of the last wave from the $140 swing low to $149 swing high is also near the $143 level. Therefore, the $143 support is likely to act as a strong support.Below $143, the next major support is near the $140 area, followed by $138. The 100 hourly simple moving average is also close to the $138 level to act as a support. As long as the price is trading above the $138 swing low, it remains supported for more gains. However, buyers need to take out the $148 and $149 resistance levels for further gains.Looking at the chart, ETH price is clearly eyeing an upside break above the $148 and $150 resistances. Once buyers succeed in gaining strength above $150, the price could even break the $155 level in the near term. The next target could be $162.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is currently flat in the bullish zone, with a few positive signs.Hourly RSI – The RSI for ETH/USD declined recently and tested the 50 level, with a flat structure.Major Support Levels – $143 and $138.Major Resistance Levels – $148, $149 and $150.
Strange things occur in the cryptocurrency market. Prices spike following negative news, and positive news is met with a strong sell-off. Cryptocurrency exchange founders are accused of faking their own deaths and making off with their customer’s assets. But not much is stranger than seeing someone pay over $300,000 in fees to send a mere fifteen bucks worth of Ether.
In a rare comment from Elon Musk on cryptocurrency, the Tesla and SpaceX founder said that Bitcoin “is quite brilliant.”
“Paper money is going away and crypto is a far better way to transfer value than pieces of paper, that’s for sure, but it has its pros and cons.”
Musk also gave Ethereum props on the ARK Investment podcast Tuesday (listen here):
“There seems like there is some merit to Ethereum as well.”
Elon Musk: Bitcoin Is Brilliant, But Tesla’s Not Going Full-Crypto
It’s a strong endorsement of cryptocurrency and Bitcoin coming from Silicon Valley wunderkind Elon Musk, the billionaire engineer/entrepreneur who made a major play in digital payments when he merged his online banking services startup X.com with Peter Thiel’s outfit a few blocks away to form PayPal.
But despite his high praise for Bitcoin and his belief in the inevitability of cryptocurrency becoming the dominant financial infrastructure for the world, Musk says he won’t be getting Tesla Motors involved in the space:
“But I’m not sure that it would be a good use of Tesla’s resources to get involved in crypto.”
Of course, Bitcoin and cryptocurrency aren’t anything that should be taking up any of Musk’s time. He’s got his hands full working an average of 42 hours a week at Tesla and 40 hours a week at SpaceX. He would know – he organizes his day into 5-minute slots.
Crypto a Big Opportunity for Entrenched Tech Firms
Tesla is a car company, and SpaceX is an aerospace tech company. They are both very special companies, the only companies in the world that do exactly what they do on the scale they do it. The opportunity to reap years of massive monopoly profits once they reach scale is their most lucrative opportunity and they should remain focused on that.
By contrast, old guard tech titans like Microsoft and Google, who’ve had many years to sit back and reap those kinds of profits, have more than enough extra skin to put in the game, and they are quite smartly diving into the cryptocurrency industry, at least indirectly.
Microsoft’s cloud services will be supporting the New York Stock Exchange’s upcoming Bakkt cryptocurrency exchange, and Google has been, along with Goldman Sachs, one of the biggest corporate investors in cryptocurrency industry firms.
The day Musk made his comments about crypto, Bitcoin, and Ethereum, Google became the first tech giant to add the Bitcoin symbol to the keyboard for its iOS apps.
Tesla May Not Be Getting Into Bitcoin, But Crypto Will Be Getting into Cars
Although it may be many years before Tesla has a good enough grip on its current business to make a serious foray into cryptocurrency, it seems likely to me because of Tesla’s specialty in electric batteries and ultracapacitors.
This will create many opportunities for Tesla to get involved in Proof of Work cryptocurrencies like Bitcoin, because of the very close relationship between the PoW coins and electricity, along the lines of this Reddit user’s comment on the Bitcoin subreddit 2 years ago:
“This is the future of bitcoin. Ability to convert unused electricity to money, and if needed that money can then be used to buy back electricity.”
Why Tesla Will Eventually Dive into Bitcoin
One can easily imagine Tesla and other similar high tech energy companies decentralizing the electricity grid. Instead of a centralized power grid with every end user drawing electricity from a central source of mass-produced energy, imagine a decentralized, peer to peer network of electricity production.
Each building that generates and stores its own power from solar (say from Tesla Solar Roof Tiles or Tesla Power Walls) is a full node on this power grid of the near future.
And Bitcoin or another PoW cryptocurrency mediates a sharing economy of electricity among nodes on this network in the fashion described above. It reminds me of how some hydroelectric dams store excess electricity by using it to pump water back uphill, and let the water fall when they want to convert the potential energy back to electricity.
Human civilization is about to produce an epoch-setting tidal wave of affordable, clean, renewable energy. And Elon Musk is leading the charge. Bitcoin can help us get every last bit of value out of all that electricity, with no watt left behind.
So will Elon Musk go full crypto? It’s only a matter of time.
Elon Musk Image from REUTERS / Aly Song
The crypto markets have experienced decent levels of bullish momentum over the past couple of weeks that has allowed virtually all major cryptocurrencies to recover some of their recent losses. Ethereum (ETH) is one notable gainer that has jumped nearly 45% from its monthly lows and has firmly reclaimed the number two spot by market capitalization from XRP.Analysts now concur that Ethereum will likely see increased bullish momentum in the near future, which may allow it to climb towards the upper-$150 region.Ethereum Climbs Slightly as Crypto Markets Experience Mixed Trading Session Most cryptocurrencies have traded mixed today, with Litecoin and EOS both climbing over 5%, while other cryptos have dropped marginally.At the time of writing, Ethereum (ETH) is trading up slightly at its current price of $147.3. Over the past seven days ETH has climbed significantly from lows of roughly $120. Prior to its upwards move this past weekend, Ethereum had experienced another upwards leg that sent it to $120 from lows of $103.Although this upwards ascent has slowed slightly over the past couple of days, analysts are now anticipating that Ethereum will see increased bullish momentum in the near future.Galaxy, a popular cryptocurrency trader on Twitter, recently noted that ETH will be “highly bullish” if it is able to break above $160, which would likely lead to further gains.“Highly bullish on $ETH if we manage to break 160$ and produce the first higher high on a 1D or bigger timeframe, since June 2018,” he bullishly noted.Highly bullish on $ETH if we manage to break 160$ and produce the first higher high on a 1D or bigger timeframe, since June 2018. pic.twitter.com/yUHGShkfns— Galaxy (@galaxybtc) February 20, 2019Gat, another popular analyst on Twitter, shared a similar sentiment to Galaxy, noting in a string of tweets that ETH is currently seeing a strong hidden bull diversion on a four hour time frame, which could lead it into the upper $150 region.“$ETH looking strong IMO… looking for a breakout and move to high 150’s… Strong hidden bull div on 4hr.”Strong hidden bull div on 4hr pic.twitter.com/P6wtL2qBVQ— Gat (@TheGemClub) February 20, 2019Gat further noted that an upwards move of any significance will require a greater amount of volume than ETH currently has.“All of these charts I posted require some volume, which if you notice is coming in at resistance… bull vs bear fight, price action will show which side wins, volume shows the fight,” he explained.all of these charts I posted require some volume, which if you notice is coming in at resistancebull vs bear fight, price action will show which side wins, volume shows the fight— Gat (@TheGemClub) February 20, 2019Despite Widespread Bullish Sentiment, ETH May Drop Lower Before SurgingAlthough most analysts agree that there is a strong case to be made for continued bullishness, another analyst points out that ETH may drop towards the upper-$130 region before finding enough buying pressure to propel it towards $160.“$ETH Update: Pull back now in play as anticipated from previous tweet… Scalp short triggered at $144.8, will consider longing again at support,” Altcoin Psycho told his nearly 30k followers in a recent tweet.$ETH Update: Pull back now in play as anticipated from previous tweet.Scalp short triggered at $144.8, will consider longing again at support pic.twitter.com/SNjeFgj26d— Altcoin Psycho (@AltcoinPsycho) February 19, 2019As Ethereum begins picking up momentum in one direction or another, traders will likely gain greater insight into whether or not ETH will be able to hold steady at its current prices, or if further losses are necessary in order for it to climb higher.Featured image from Shutterstock.
Like most scams, it will be years before Bitconnect’s operators have felt the full weight of their actions. However, the US government wants victims to help bring the $2.5 billion crypto Ponzi scheme to justice.
FBI Wants to Talk to Bitconnect Victims
The FBI is looking to talk to people victimized by the Bitconnect scheme. It is publicly taking applications and information via its website. The agency will contact those it deems interesting enough to help with the investigation.
The FBI writes:
“By mid-December 2017, BCC boasted a market cap of over $2.5 billion. Bitconnect guaranteed investors up to a 10 percent total return per month on their investment, following a tiered-investment system based on the sum of an investor’s initial deposit.”
“The entire market for BCC crashed in late January 2018, after two U.S. state-level securities regulators issued public letters warning investors of the Ponzi-type nature of Bitconnect. This led to Bitconnect completely shutting down its exchange for BCC, eliminating the market for the cryptocurrency and stranding investors with near-worthless cryptocurrency.”
The Quick Collapse of a Multi-Billion Dollar Crypto Ponzi
Texas issued a cease and desist order to Bitconnect shortly before the company decided the gig was up. India and Australia have already arrested representatives who promoted the fraudulent operation. The global scheme had dozens of promoters, including Bitcoin YouTuber Trevon James.
Perhaps the most interesting case surrounding Bitconnect is that of Australian John Biggaton. Bigatton’s wife went missing shortly before his arrest. She happens to be the sole proprietor of one of the outfits Bigatton used to shuffle his assets around in anticipation of their freezing.
Formerly a fiat world financial advisor, Bigatton became one of the most influential promoters of the Bitconnect Ponzi scheme. Some aspects of the scheme guaranteed returns of 10% or more to “investors” (victims).
Bitconnect is facing multiple lawsuits in the US, irrespective of criminal investigations ongoing. A US court issued an order to freeze the scam’s assets last month.
Bitconnect Community Reviving The Coin?
In the wake of its collapse, community members seem to be attempting a revival. We’ve seen this before in the Paycoin scandal. Following the ultimate collapse of GAW Miners’ Ponzi scheme, some Paycoin community members continued efforts to develop and revive the token. Their efforts were unsuccessful.
Interestingly, an account called @Bitconnect_Coin tweeted as recently as yesterday:
#Crypto is the people’s money. #Bitconnect Coin allows users to transfer value across the globe in a flash! In the near future, #BCC will be the people’s coin for any and every transaction imaginable.https://t.co/eXhkngddAbhttps://t.co/cdy9mWGjEBhttps://t.co/vaJLPuCZl4 pic.twitter.com/5WyiljrREs
— Bitconnect Coin Community (@Bitconnect_Coin) February 19, 2019
Additionally, an active Discord channel surrounding Bitconnect is still active. It seems there is an effort within the victimized community to revive the coin as a community effort. A user on Discord mentioned that “CoinPaprika” had shown the coin as “active.” We looked into this and found this on the CoinPaprika listing for BCC:
“Bitconnect is being taken over by ‘community,’ and conduct rebranding.”
While the FBI is looking for victims of the Bitconnect scheme, we are looking for people interested in reviving the coin in a “community effort.”
If you or someone you know is involved in this venture, please write the CCN’s head of crypto via [email protected].
Featured Image from YouTube
The US Federal Bureau of Investigation is looking to speak to those investors burned by what has perhaps become the best known scam in cryptocurrency history, Bitconnect.The word Bitconnect is now synonymous with scams targeting the cryptocurrency community. It was not only one of the more brazen efforts but also one of the most successful, creating many victims after its collapse.Could the End of the Bitconnect Story Finally be in Sight?Bitconnect (BCC) was first launched by an initial coin offering (ICO) in December 2016. The project purported to be part open-source cryptocurrency and part high-yield investment scheme. However, its multi-tiered marketing strategy caused many to call it out early as a Ponzi scheme.The company claimed to generate a massive 40 percent return for its largest investors through its lending platform. Additionally, a unique trading bot would multiply those Bitcoin investments made into Bitconnect – or so it was claimed.In the profit-hungry environment of 2017, Bitconnect attracted many investors. BCC tokens even managed to get into the top 20 coins listed on Coinmarketcap, before the whole pyramid came crashing down.In January 2018, Bitconnect announced that it was shutting its lending and exchange platform down via its now-defunct website. This caused the price of the BCC token to plummet.The BCC price dropped hard after the service was terminated.According to The Next Web, the official reason given for the abrupt decision to cease business was “bad press”. However, most of this was caused by a list of legal troubles from several different jurisdictions – themselves a direct response to the legitimacy of the claims made about the profitability of the scheme.Over a year after Bitconnect shut down, the FBI is finally doing a thorough investigation into those behind the scam. According to a post on the government organisation’s official website, those who invested in Bitconnect are encouraged to contact the government investigation organisation with regards their involvement.In addition to generic contact details, the questionnaire requests that victims of the scam answer some questions specific to their investment in Bitconnect. These include: how they heard about it, how much was invested in the scheme, and their account details at Bitconnect.The full scope of the investigation into the scam is unknown for now. However, some are expecting the FBI to go after more than just the top brass at Bitconnect.Shit just got real when it comes to Bitconnect. Now it’s full blown Criminal case building, no longer just civil. Youtube promoters and bloggers who shilled this ponzi will finally get made examples of,through criminal prosecution by the FBI #cybercrime https://t.co/Ibctx9iBI1— Digital Forensics Indonesia 🇮🇩 (@DFI_Indonesia) February 20, 2019Of course, Bitconnect’s sudden rise through 2017 was aided by many cryptocurrency influencers. YouTube channels shilled the project to their followers, along with an army of promoters paid by Bitconnect to hawk the “investment opportunity” across social media. Some of those singing its praises have since disappeared. The whereabouts of others is reported in the following video:Whether the investigation will target those shilling BCC to their followers remains to be seen at this early staff. However, if you got involved in Bitconnect as an investor, you can find the FBI questionnaire here. Related Reading: Move over Twitter: Crypto Scams Have Infiltrated FacebookFeatured Image from Shutterstock.