Ripple price traded towards the $0.3080 level and recently corrected lower against the US dollar.The price traded lower and broke the $0.3040 and $0.3020 support levels.There is a key bullish trend line in place with support near $0.2965 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair could dips a few points, but it is likely to bounce back as long as it is above $0.2950Ripple price is trading with a positive bias above key supports against the US Dollar, but struggling vs bitcoin. XRP could bounce back as long as it is holding the $0.2950 support.Ripple Price AnalysisYesterday, we saw a nice upward move in ripple price above the $0.2950 and $0.3000 resistances against the US Dollar. The XRP/USD pair gained traction and broke the $0.3050 level as well and settled above the 100 hourly simple moving average. It traded close to the $0.3090 level and formed a new swing high near $0.3088. Later, it started a downside correction and traded below the $0.3050 support. There was a break below the 23.6% Fib retracement level of the last wave from the $0.2835 low to $0.3088 high.The price even cleared the $0.3000 support level and tested the main $0.2950 support level. Besides, the 50% Fib retracement level of the last wave from the $0.2835 low to $0.3088 high prevented losses. The price is currently moving higher and trading well above $0.2950. There is also a key bullish trend line in place with support near $0.2965 on the hourly chart of the XRP/USD pair. The pair seems to be well supported near $0.2960 and $0.2950. Besides, the 100 hourly SMA is also positioned near the $0.2950 support area.On the upside, an initial resistance is near the $0.3000 level, above which the price may test $0.3020. However, a successful close above $0.3050 will most likely set the pace for more gains above the $0.3100 resistance level. The next key resistances are near $0.3120 and $0.3125.Looking at the chart, ripple price is clearing trading above the key $0.2960 and $0.2950 support levels. If there is a downside break below the $0.2950 support and the 100 hourly SMA, the price could move into a bearish zone. An immediate support is near the $0.2910 level, below which the price may revisit the $0.2850 support level in the near term.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly moving in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently below the 50 level, but it is holding the 40 level.Major Support Levels – $0.2960, $0.2950 and $0.2910.Major Resistance Levels – $0.3020, $0.3050 and $0.3085.
Archives for May 1, 2019
By CCN: Charlie Lee can’t seem to shake his reputation for offloading his Litecoin holdings near the peak. The Litecoin creator was featured in a podcast with Morgan Creek Digital Partner Anthony Pompliano where he fielded some tough questions both about his LTC portfolio and the state of the crypto industry. Something that you might not know is when Charlie decided to sell his Litecoins when the cryptocurrency was trading at approximately $300 he expected the price to go much higher. He said on the podcast:
“I actually personally did think it was going to keep going up. I didn’t think that was the peak…I thought it was going to hit $1,000.”
New episode is live w/ @SatoshiLite!
We discuss the early days of Coinbase, why he originally built Litecoin, how crypto evolved over the last decade, what the current challenges are, and where Charlie sees BTC & LTC going in the future.
Listen & learn!https://t.co/JcpLe8SXZi
— Pomp 🌪 (@APompliano) May 1, 2019
Hindsight is 20/20, and Lee says he gets asked about price all the time. But clearly, even he doesn’t know where the bitcoin or Litecoin prices are headed.
“If anyone tells you they know they’re lying. No one knows if the price will go up or down. I’ve seen a few bull and bear markets. Sometimes it recovers. Who knows? I think if anything, it’s good we’re seeing some recovery. But don’t go all in. I tell people never to go all in.”
The Litecoin price is currently hovering at $73, more than double where it was trading at the beginning of the year. Still, it’s a far cry from the $1,000 level that he expected during the bull run of 2017. Some of the things that he’s working on that could influence value is adding fungibility features to Litecoin to make it more private and ultimately more scalable. They are using a technology called Mimblewimble to make Litecoin more fungible so that “every [Litecoin] is equal to every other [Litecoin].”
Lee on Bitcoin
On bitcoin, he believes it will eventually become the world reserve currency and that it will coexist with fiat currency. He expects that in the end, there will be a handful of coins to have value. He said:
“Bitcoin will be the major one and there will be a few other ones.”
In the interim, the bitcoin price will remain volatile as long as the future of the leading cryptocurrency is uncertain.
Coinbase Messed Up
Another thing you might not know about Charlie Lee is that he’s a former Coinbase employee. He touts the popular U.S.-based crypto exchange as the “most important company in crypto” for the sheer number of people it’s ushered into the space. But he doesn’t hold back either, saying that his former’s employer’s botched acquisition of Neutrino:
“They definitely made mistakes. The recent Neutrino acquisition was pretty dumb…When the news hit that people were upset, they doubled down on it and…we decided it was still the right thing to do. And they had to backtrack on that. That was pretty dumb and they didn’t handle it well.”
Pomp on Price
Lee isn’t the only one who doesn’t want to give crypto price predictions. Pompliano fielded a question from the podcast live audience about whether or not crypto winter is over, in response to which he said:
“More likely than not, we’ve probably seen the bottom. But as many people in crypto learned, trying to time this stuff is a fool’s game. So we’ll see how it plays out.”
Lee has come a long way from trading bitcoin locally at McDonald’s and Starbucks. The industry infrastructure has come a long way, too. While there’s no going back, if Lee ever decides to buy the dip, he’s probably going to hold onto his coins a lot longer next time. That’s just a guess.
Bitcoin has once again become the subject of water cooler talk at banks and brokers once again, following a massive price surge at the beginning of April, that saw the value of the leading crypto by market cap rise by over $1,000 over the course of an hour.The powerful move created a higher high on the charts, and caused some technical analysis indicators to flip bullish for the first time in over a year. Another indicator, the MACD, is showing that Bitcoin buying is currently overextended. A prominent crypto analyst known for his long-term analysis using the MACD, says the indicator being overextended is bullish, but does suggest that consolidation is “due.”Long-Term Trend Change Indicator Is Bullish, But Suggests “Consolidation” is “Due”According to crypto analyst Dave the Wave, who often shares long-term log scale charts of Bitcoin price fluctuations dating back to before the 2014-2015 bull run, the MACD or Moving Average Convergence Divergence indicator is reading as overextended. The trader calls this a bullish sign, signaling that buyers are out in full force.The good news is an over-extended MACD is bullish. That said, when it is this over-extended it’s due a consolidation. pic.twitter.com/et1VsOQKW8— dave the wave (@davthewave) May 1, 2019As Dave the Wave shows on his MACD chart’s histogram, each time the MACD became overextended, a period of price consolidation soon followed. The crypto analyst expects similar behavior to occur in Bitcoin markets in the coming days to weeks.Related Reading | Weekly MACD Histogram Most Bullish It’s Been Since Bitcoin Price Was Over $13KIn the past, the long-term crypto chartist has used the MACD – a long-term indicator used to spot important trend changes – to help him determine if the bear market bottom for Bitcoin was in. According to his past analysis, he concludes the bottom is indeed behind us and that the recent higher high on Bitcoin price charts confirms this as such.Using a logarithmic growth curve, Dave the Wave has demonstrated how Bitcoin’s market cap could eventually surpass that of Gold’s, with an over $7.7 trillion dollar market cap. For comparison’s sake, Bitcoin’s market cap is currently at just under $100 billion.Most crypto investors view Bitcoin as a long-term investment that could pay handsomely, with the majority of them believing that some day the price per BTC could reach $100,000 or even “millions” of dollars each.Related Reading | Poll Reveals Majority of Crypto Investors See Bitcoin Price at $100,000 to Millions Long-TermBitcoin had recently surged in price as much as 25% over the past month, closing its monthly candle above resistance turned support. The crypto market is at a critical point, and whichever way it turns next could determine the trend for the months to come.Should Bitcoin break and close above powerful resistance at $6,000, the market may enter a new bull market and the days bears controlled the price of Bitcoin will have come to an end.Featured image from Shutterstock
April has proven to be a very positive month for the crypto markets, and Bitcoin’s ability to decisively surge into the $5,000 region without incurring any significant selling pressure has shifted the overall market sentiment to be slightly more bullish as many analysts expect BTC to see further gains in the near-future.One prominent analyst is now pointing out similarities between Bitcoin’s April monthly close and that seen in October of 2015, which was followed by a massive bull run.Bitcoin Approaches $5,400 as Recent Tether Fears Fade AwayAt the time of writing Bitcoin is trading up just under 1% at its current price of $5,375. Over a one-week period, Bitcoin has recovered from its lows of $5,100 that were set after news broke regarding the fiasco surrounding the New York Attorney General’s accusations that Tether and Bitfinex were defrauding investors.In previous years, news like this was ground for significant drops, but Bitcoin only shed a mere 10% after the news grew widespread, and it has since recovered much of its losses as it continues climbing back towards its recent highs of over $5,600.Furthermore, in addition to appearing to have growing strength from a fundamental perspective, Bitcoin also posted a green monthly candle that many analysts view as being bullish.DonAlt, a popular cryptocurrency analyst on Twitter, spoke about BTC’s monthly close in a recent tweet, explaining that his larger time-frame bias is currently bullish.“$BTC monthly: This is the first time in ages that BTC has broken resistance & closed above it. We’ve finally got support below us that might actually hold, turning my big timeframe bias bullish. I’ll stick with swing longs until that support fails. Buys in green would be juicy,” he said while referencing a BTC monthly candle chart.$BTC monthly:This is the first time in ages that BTC has broken resistance & closed above it.We’ve finally got support below us that might actually hold, turning my big timeframe bias bullish.
I’ll stick with swing longs until that support fails.
Buys in green would be juicy. pic.twitter.com/zczGMjmIhY— DonAlt (@CryptoDonAlt) May 1, 2019Analyst: Bull Run Similar to That Seen in 2015 Would Send BTC to Over $330kBecause this monthly close appears to be overwhelmingly bearish, discussion of the next potential bull run has abounded, and one analyst notes that there are striking similarities between Bitcoin’s April of 2019 close and its October of 2015 close, which was directly followed by a massive parabolic bull run.Galaxy, another popular cryptocurrency analyst on Twitter, discussed these similarities in a recent tweet, explaining that if the next bull run mirrors that seen in 2015 – which would require a massive influx of capital – BTC’s price would hit $330k in the next few years.“Observing structure similarities between the monthly candles of October 2015 and April 2019. October 2015 marked the start of most significant bull run in BTC history after a 6500% price surge in 2 years. Another similar bull run puts BTC at over $330K/coin, by the end of 2021,” he noted.Observing structure similarities between the monthly candles of October 2015 and April 2019.October 2015 marked the start of most significant bull run in BTC history after a 6500% price surge in 2 years.Another similar bull run puts BTC at over $330K/coin, by the end of 2021. pic.twitter.com/KTCRLd8jRH— Galaxy (@galaxyBTC) May 1, 2019Although it is unlikely that the next bull run will be identical to that seen in 2015, an influx of capital from corporations and institutions, which would in-turn lead to an inflow in consumer investments, may be enough to fuel another parabolic upwards move that many embattled investors are anticipating.Featured image from Shutterstock.
Grayscale Investments, a crypto asset fund overseen by Barry Silbert, has announced that it will launch an advertising campaign in a few weeks that takes aim squarely a gold investors. The advert compares the futuristic investment vehicle of Bitcoin and other digital currencies with the historic store of value gold.Although the advertisement is for Grayscale Investments and not specifically promoting Bitcoin, Barry Silbert has stated that he wants the #DropGold hashtag to become the crypto community’s go to rallying cry. He claims that the main aim of the TV campaign is to start a narrative about the similarities between gold and Bitcoin, and highlight the overall superiority of the latter.Gold vs Bitcoin: Are the Gloves Ready to Come Off?Bitcoin has been compared to gold many times before. In the advertising campaign announced earlier today, in 30 seconds, Grayscale Investments attempts to portray the historic store of value as a dated, inferior, cumbersome relic versus the asset of the future, Bitcoin.In the fast-paced advert broadcast earlier today on Grayscale’s website, we see young investors frantically chasing after something through a metropolitan centre. These individuals are free to move at breakneck speeds, whilst ancient bankers lug wheelbarrows full of gold around. Evidently, such imagery is supposed to indicate the convenience of Bitcoin over gold.#DropGold TV commercial coming to TVs all over the U.S. Check it out here first:https://t.co/gH0kHGovdd https://t.co/IokCIiiT8R— Barry Silbert (@barrysilbert) May 1, 2019Silbert himself gave some commentary on the advert to a panel hosted by Yahoo! Finance earlier today. He first describes gold as an “easy target to go after”, before stating:“Bitcoin is nothing more than our generation’s version of gold. It’ll be a huge success.”He did go on to admit that the technology could be used as a payment rail and for other applications, before outlining the goals of the advert:“The objective of the ad campaign is to start an honest conversation about gold and why it may not be a great investment long-term and then talk about why Bitcoin is going to outperform gold as our generation of investors inherit tens of trillions of dollars over the next 25 years… Will it all go to Bitcoin? No. But Bitcoin will be a beneficiary.”The Case for BTC as “Digital Gold”Natyrally, the format of a 30 second TV advert is poorly suited to outline just why so many analysts believe that Bitcoin is a better version of the shiny precious metal coveted for centuries. That, as demonstrated by Saifedean Ammous in his book The Bitcoin Standard, would take many hundreds of pages to begin to get to the heart of.However, here are a few of the key points for anyone wondering why Bitcoin is so hotly championed by those in the know to eventually replace gold.Firstly, the absolute quantity of Bitcoin is already established and this total will be released at a known rate until there are no more of the 21 million original coins left to issue. Gold was typically used as a store of value because it was notoriously difficult to recreate (i.e. to inflate the supply artificially), and it was not in abundance. This made it superior to other materials for monetary use since people couldn’t devalue the gold held by others by creating more for themselves.In the twenty-first century, gold looks increasingly like a less-than-perfect form of sound money. If there is a scientific breakthrough in mining technology, there are literally thousands of tones of the stuff that could be hauled out from deep within the earth and completely crash the market. Bitcoin, by contrast, has its supply enforced by the largest network of computers on the planet. To cheat this system has proved to be impossible thus far. With ever-rising hash rates securing the network too, this will only get more difficult in the future.Likewise, Bitcoin trumps gold when it comes to ease of transportation. Compare how much it would cost to send $1 million worth of gold to the other side of the world with that of a similarly sized Bitcoin transaction. You are talking tens of thousands of dollars difference. The same can be said about securing Bitcoin. There is no need for vaults, security personnel, and custodian solutions with Bitcoin. You are the master of your own monetary sovereignty with crypto.This point extends when we consider that anyone prepared to threaten enough physical violence can take an individuals’ gold. It is there for all to see and it can be physically lifted out of a vault if there is no one there to protest. With Bitcoin, even if the holder of a private key dies, the Bitcoin cannot be stolen by anyone.Gold doesn’t fare any better when it comes to divisibility either. Expensive machinery is needed to melt down the metal and recast it into the smaller units needed to make everyday purchases. Bitcoin, of course, is hugely divisible. If fees weren’t an issue, you can even make payments of less than a cent using the payment method. Imagine trying to divide a gold bar into 1c worth. Impossible.In fact, if you consider every quality that has made gold a historic store of value, Bitcoin beats it across the board. There is only one thing that continues to make gold the favourite investment vehicle of the two and that is its historical precedence as a store of value. Being as it has been a fixture of human history for literally thousands of years, attitudes towards the asset are well and truly entrenched.Although we have no historical data confirming it, we can only presume that the transition to each new form of monetary technology was accompanied by many naysayers who originally scoffed at the latest innovation. When gold replaced seashells and other primitive currencies, people presumably dismissed it and would continue to prefer to accept the older currency for many, potentially thousands even, of years. Likewise when paper money became the norm in favour of actual gold. People outright rejected it. After all, how could this piece of paper be worth anywhere near the same as a lump of shiny yellow metal?Each of these new monetary technologies offered something new that the previous didn’t. It might have been portability or a more sound monetary policy but eventually people began to see the benefits of using the new technology and the old ways were phased out. This process will likely occur once again with Bitcoin. However, in the crypto asset’s corner is the most powerful data sharing platform ever known to humanity – the internet. That should speed things along nicely. Related Reading: Messari CEO: Killer Use Case For Bitcoin Is Still Money, Digital GoldFeatured Image from Shutterstock.
Although many traders and analysts alike are currently looking towards relatively small Bitcoin price movements for greater insight into where the crypto is heading next, recent data regarding BTC’s on-chain transaction volume may signal that the cryptocurrency is currently incurring greater fundamental strength.Although this growing on-chain volume certainly looks positive, it remains debatable as to whether or not this is simply the result of a stabilizing market, or if the cryptocurrency is truly finding greater levels of widespread adoption.Bitcoin On-Chain Activity Hits 14-Month High in AprilApril has proven to be a positive month for the crypto markets, with Bitcoin surging from the low-$4,000 region earlier this month to highs of well over $5,600 just last week.Although this massive upwards surge did lead to a bullish upwards momentum, recent news surrounding the Tether-Bitfinex imbroglio – where the New York Attorney General accused the two related companies of committing fraud – tempered this momentum and sent BTC reeling downwards to the $5,100 region, where it found support and continued climbing.In addition to incurring positive price action in April, the crypto’s on-chain activity also surged to a 14-month high, which some may view as a sign of improving fundamental strength.According to a recent Diar report that summarizes numbers from blockchain data provider TokenAnalyst, the volume of Bitcoin moved on-chain has risen consecutively three months in a row, which may be due to recent rallies that have allowed BTC to put distance between its current price levels and its 2018 lows.“Bitcoins moved on-chain outpaced dollar value hitting a 14-month high in April. With a value of over $130Bn, the transaction volume closes in on June 2018 levels when the price of Bitcoin averaged $7000 – 35% higher than today,” the report explains.Recent BTC and Crypto Rallies Likely the Cause of On-Chain Volume SurgeMany critics of the crypto markets are apt to point towards the massive volatility that is associated with the nascent markets, which is seen by some as being a factor that disqualifies digital currencies from ever being considered true currencies.Despite this, the markets have been expressing increased stability in the recent past as trading ranges begin to narrow, which – in combination with the multiple price surges that have occurred over the past several months – may be one factor leading to higher on-chain volumes.Diar also notes that quarterly totals for on-chain activity paint a slightly less positive picture than monthly totals, as activity has been on the decline since the height of the parabolic bull run in late-2017.“Whilst 1Q19 remains almost a whopping double the volume than that for the same period in 2017 in USD terms, quarter-on-quarter on-chain activity for Bitcoin has been in decline since the end of 4Q17,” Diar notes.So, to summarize, although the volume of Bitcoins being moved on-chain in April is at a 14-month high, quarterly Bitcoin volume and Bitcoin/USD on-chain volume is still quite low as compared to that seen in Q4 of 2017.Whether or not these figures will continue to shift as Bitcoin and the crypto markets begin to express greater stability and tepidly climb higher remains to be seen, but closely watching fundamental factors, in addition to price data, is certainly an important factor in determining if the persisting bear trend has truly come to an end.Featured image from Shutterstock.
In Canada, individual provinces are responsible for energy issues, and their interest in Bitcoin mining is growing as several provincial governments have already offered low-cost energy incentives to attract mining operations to their provinces.
Quebec, the largest Canadian province, wants in on the action and has overruled its energy provider Hydro-Québec’s request for a rate increase for Bitcoin businesses, in order to allow Bitcoin miners to have the same hydro rate as the largest industrial customers.
Bitfarms, the only major Bitcoin mining company in Quebec, will continue to be billed at the LG industrial rate (for high-power customers) of around CAD $0.05 per kWh.
Bitfarms founder and president Pierre-Luc Quimper told Bitcoin Magazine:
“This decision helps to secure our long-term operations in Québec as we enter a new era of operational growth. We are excited to continue our collaboration with Hydro-Québec, municipal energy distributors and municipalities.”
Quimper added, “With green hydroelectricity at a competitive price, innovative universities and this recent decision by the Energy Board that clearly supports the industry, Québec has all the ingredients to become a blockchain hub,”
The Energy Board decision ordered Hydro-Québec to set aside an extra 300 megawatts for the crypto industry, on top of 368 megawatts already committed, and rolled back Hydro-Québec’s plan to make crypto businesses compete in an auction.
As with some other parts of Canada, a cool climate and abundant hydroelectric power make Quebec a natural fit for Bitcoin mining.
Bitfarms operates one of the largest vertically integrated mining operations in North America and has four computing centers located in different locations in Quebec: a head office in Brossard, a microelectronics laboratory in Saint-Jean-sur-Richelieu and an electrical contracting company in Bromont (Volta électrique), in addition to an expansion currently underway in Sherbrooke.
The company told us they have built 36 megawatts of capacity, with another 125 megawatts in their pipeline, and have approximately 220 PH/s of installed hash power. The new Sherbrooke facility will add another 30 megawatts to their capacity.
Wes Fulford, CEO of Bitfarms, told us:
“The LG rate remains one of the most competitive in North America and will allow Bitfarms to continue its expansion in Québec, particularly Phase 1 and Phase 2 of our new modern computing centre within the municipality of Sherbrooke.”
A Sustainable Approach to Mining
On their website, Bitfarms emphasizes the importance of green, sustainable energy use, saying, “We prioritize a sustainable approach just as much as a healthy bottom line.”
Bitfarms president Pierre-Luc Quimper was an active participant in government energy hearings held in the summer and fall of 2018 and has been a leader in proposing green energy solutions, including load-shedding agreements during peak consumption periods.
The company is also working on a project evaluation grid to determine hydro use and economic spin-offs.
“The decision of the Quebec Energy Board is a major victory for Bitcoin miners in Quebec but also for Bitcoin in general. It’s a clear demonstration that Bitcoin-related businesses are operating within the scope of the law of the land.”
He pointed out that, initially, Hydro-Québec was in favor of accommodating the demand of large-scale mining operations, but they reversed course when the situation got political.
“The former provincial government (defeated in October 2018) imposed a decree forcing the Bitcoin mining industry to accept a 300% rate increase and a potential price auction for future energy block allocation. This ruling is promising because it legitimizes the Bitcoin mining industry on a national scale.”
Reacting to the Hydro Quebec announcement, Francis Pouliot, a Quebec native and Bitcoin entrepreneur, expressed his disappointment with the previous government:
If Quebec had kept electricity rates low for Bitcoin miners 5 years ago with clear regs/guarantees (it’s the now) we’d currently be top 3 Bitcoin producers and perhaps top exporter of bitcoins worldwide. With gas, hydro and cold Canada🇨🇦 is poised to become the Bitcoin El-Dorado.
— Francis Pouliot 🐂 (@francispouliot_) April 30, 2019
Payments company Square reported its first-quarter earnings today, revealing strong growth in bitcoin sales through its Cash app.
Founded by Twitter co-founder Jack Dorsey, Square reported $65.5 million in bitcoin revenue for the first quarter of 2019. Bitcoin costs, however, are listed at $64.7 million in the unaudited quarterly report, for a bitcoin profit of roughly $832,000.
Those figures top previous all-time highs for Square: The fourth quarter of 2018 saw $52.4 million in bitcoin revenue and $490,000 in profit.
Still, bitcoin remains a niche product for Square. Transaction-based revenue in Q1 topped $656 million, according to the report.
The company sells bitcoin to users through its Cash app, a service that expanded to all 50 U.S. states in August 2018.
Jack Dorsey image via CoinDesk archives
In recent months, Bitcoin price has been following an uptrend ever since the leading crypto by market cap retested bear market lows at $3,350 where it bounced off support at the 200-week moving average. Even new Tether FUD or fears over Bitfinex’s insolvency have not been enough to cause a major pullback aside from a quick drop that Bitcoin quickly rebounded from over the weekend.