Bitcoin price started a slow and steady recovery above $7,600 against the US Dollar.The price is currently above $7,700, but the bulls could struggle near $8,000 or $8,140.There is a crucial bearish trend line forming with resistance near $8,120 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could correct higher, but it might struggle to clear the $8,080 and $8,140 resistances.Bitcoin price is slowly gaining pace above the $7,700 level against the US Dollar. BTC might continue higher, but the bulls are likely to struggle near $8,080, $8,140 and $8,200.Bitcoin Price AnalysisAfter a strong decline, bitcoin price found support near $7,440 level against the US Dollar. The BTC/USD pair traded as low as $8,441 and recently started an upside correction. There was a break above the $7,550 and $7,600 resistance levels. The price is now trading above the $7,700 level, and the 23.6% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low. There was a break above a connecting bearish trend line at $7,800 on the hourly chart.On the upside, there are many important resistances near the $8,000, $8,010 and $8,080 levels. The 50% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low is also near the $8,080 level to prevent gains. There is also a crucial bearish trend line forming with resistance near $8,120 on the hourly chart of the BTC/USD pair. Above the trend line, the 100 hourly simple moving average is near the $8,200 level to act as a strong resistance. Besides, the 61.8% Fib retracement level of the last decline from the $8,578 high to $7,440 swing low is at $8,140 to prevent gains.Therefore, the price is likely to face a strong resistance near the $8,080 or $8,140 level. Moreover, a successful break above the $8,200 level is needed for a solid reversal in the coming sessions. On the downside, an initial support is near the $7,700, below which there is a risk of a fresh decline.Looking at the chart, bitcoin price is showing a few positive signs above the $7,700 level. Having said that, if the price continues to rise, there are chances of it struggling near the $8,080 resistance. As long as the price is trading below the $8,080 and $8,200 levels, it is likely to trade in a range, with a few bearish moves.Technical indicators:Hourly MACD – The MACD is currently gaining pace in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently moving lower towards the 50 level.Major Support Levels – $7,700 followed by $7,600.Major Resistance Levels – $8,000, $8,080 and $8,140.
Archives for June 5, 2019
Social media giant Facebook is said to reveal its own cryptocurrency later this month.
According to a report from The Information on Wednesday, Facebook is poised to unveil its cryptocurrency to the public later in June, which is aimed to allow users to process transactions via the social media channel, and will be offered to Facebook employees who want to be paid in the form of the cryptocurrency.
The report added Facebook is also planning to have physical portals for users to purchase the cryptocurrency, which, according to previous reports, is called GlobalCoin.
In addition, Facebook is reportedly inviting external parties to participate in the network that will empower the cryptocurrency to act as “nodes” for a fee that could be as much as $10 million each.
The news comes amid recent reports that Facebook has begun conversations with global payments providers, crypto industry players, as well as global regulators regarding the opportunity and regulatory issues for its crypto project.
It was reported last month that Facebook will formally launch GlobalCoin in 2020 and is planning to start trials by the end of this year.
Facebook’s venture into financial services has long been anticipated since it hired former PayPal president David Marcus to oversee its Messenger app in 2014.
Marcus was then appointed as head of Facebook’s blockchain initiatives in May of last year.
Facebook image via Shutterstock
ETH price started a short term recovery from the $233 swing low against the US Dollar.The price broke the $242 resistance, but it is still well below the $252 and $255 resistances.There was a break above a major bearish trend line with resistance near $244 on the hourly chart of ETH/USD (data feed via Kraken).The pair is currently trading in range and facing many hurdles on the upside near $252 and $255.Ethereum price is currently recovering above key levels versus the US Dollar and bitcoin. ETH price is likely to struggle to move above the $252 and $255 resistance levels.Ethereum Price AnalysisAfter trading as low as $233, Ethereum price started a short term recovery against the US Dollar. The ETH/USD pair traded above the $235 and $240 resistance levels to move into a positive zone. There was a break above the 23.6% Fib retracement level of the downward move from the $270 high to $233 low. The price action is positive above $240, but the price is facing many hurdles on the upside.Moreover, there was a break above a major bearish trend line with resistance near $244 on the hourly chart of ETH/USD. The price is currently struggling to clear the $248 resistance. Above $248, the next major resistance is near the $252 level and the 100 hourly simple moving average. The 50% Fib retracement level of the downward move from the $270 high to $233 low is also near the $252 level. If there is a clear break above the $252 resistance, the price could attempt to gain pace above the $255 level.A proper close above the $255 level plus the 61.8% Fib retracement level of the downward move from the $270 high to $233 low is needed for more gains. Conversely, if there is a downside break, an initial support is near the $242 level. If the bulls fail to hold the $242 level, the price is likely to move back towards the $235 level. Any further declines may perhaps increase chances of a downside break below $233.Looking at the chart, Ethereum price seems to be trading in a range below the $248 and $252 resistance levels. On the downside, the main support are $242 and $235. If the price fails to move above $252 or $255, there is a risk of a downside extension below the $230 level in the near term.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly moving in the bullish zone, with a few bearish signs.Hourly RSI – The RSI for ETH/USD is currently moving lower towards the 50 level.Major Support Level – $235Major Resistance Level – $252
An experimental metric used to gauge the quantity and quality of activity on bitcoin’s network clocked a 28-week high last Saturday, signaling the cryptocurrency’s latest price rally may be more fundamentally driven than many expect.
The Transaction Amount to Active Addresses Ratio (TAAR), first proposed by CoinDesk Contributor and Pugilist Ventures Founder Chris Brookins, divides bitcoin’s 24-hour adjusted transaction volume (USD) by the number of its active addresses to identify how much each active address spends in transactions per day on average.
If TAAR is high, then it means each user (active address) is transacting in high notional values, in other words, the network “quantity” (how much is being spent i.e. transaction volume) is high per the “quality” (how many users are spending the funds i.e. active addresses).
When the quantity and quality of bitcoin’s network are high, then one would expect a positive reaction in bitcoin’s market and vice versa when the ratio is low.
Since April of 2013, the oldest data point available via Coinmetrics, this has proven to be the case as it has been made clear bitcoin’s price only enters sustainable trends when it is accompanied by a TAAR trend in the same direction.
Bitcoin’s TAAR and Price
As is shown above, bitcoin was only able to escape its bear market in 2015 once its network activity picked up pace, made evident by the TAAR finally failing to set new lows along with bitcoin’s price and beginning to trend upwards (highlighted in the red square).
This, in a sense, added fundamental validation to bitcoin’s price growth at the time, which often falls victim to pure speculation.
Interestingly, bitcoin’s TAAR is once again clearly rising along with its price in a similar fashion to that seen at the end of the previous bear market, potentially suggesting bitcoin’s latest price growth may be sustainable as long as the network activity continues to rise. Corrections in price should be expected, but according to this model, bulls should only be concerned when TAAR loses significant altitude.
Now, the sample size is small spanning just six years, so combining this metric in analysis with other metrics would be fruitful in order to avoid outlier signals, but nonetheless, the TAAR does show an increase in bitcoin’s network activity not seen in several months regardless of its connection to prices.
Disclosure: The author holds several cryptocurrencies. Please see his author bio for more information.
Bitcoin image via Shutterstock
Specifically, Longfin’s CEO, Venkata Meenavalli, is accused of inflating the company’s revenue by $66 million in order to fraudulently secure a listing on the Nasdaq in 2017.
Prosecutors Say Longfin Cooked the Books
The Securities and Exchange Commission also accused Longfin executives of insider trading, saying they illegally sold $33 million of stock in unregistered transactions.
While the screaming headlines suggest that the Longfin fraud is tied to bitcoin, in reality, the company has a tangential relationship to the crypto industry.
Longfin Pivoted to Crypto During Bitcoin Bull Market
Longfin was a fintech firm that went public in December 2017. In 2018, Longfin opportunistically pivoted to the crypto space amid the bitcoin bull market. The transition caused the company’s stock to spike 2,600% amid the bitcoin boom of the time.
In April 2018, a federal judge froze $27 million in assets owned by Longfin amid accusations of insider trading. Seven months later, the company shut down. At the time, the company’s CEO insisted that he had done nothing wrong (video below).
Because bitcoin mania was in full swing at the time, the media hyped Meenavalli’s shady dealings as crypto-centric. In reality, it was merely a run-of-the-mill financial crime (crooked accounting and insider trading).
Longfin Execs Accused of Multi-Tier Fraud
In a June 5 statement, the SEC accused Longfin’s CEO of conducting a fraudulent public offering of stock stemming from misrepresentations about its finances.
“Longfin and Meenavalli engaged in an accounting fraud, recording more than $66 million in sham revenue.”
The agency also accused Meenavalli of lying when he claimed in SEC filings that the company operated principally in the United States when its operations and management were actually offshore.
The individuals named in the SEC lawsuit include:
- Venkata Meenavalli (CEO): Still being prosecuted.
- Andy Altahawi (consultant): Settled with SEC.
- Dorababu Penumarthi (associate): Settled with SEC.
- Suresh Tammineedi (associate): Settled with SEC.
Justice Department Also Lowers the Boom
In a separate, parallel action today, federal prosecutors in New Jersey filed criminal charges against Longfin CEO Venkata Meenavalli.
In the DOJ lawsuit, prosecutors accused Meenavalli and his associates of engaging in a “multi-pronged fraud” involving fake revenue, misrepresentations to the SEC, and false statements to Nasdaq.
Faced with this barrage of lawsuits, three Longfin executives agreed to settle with the SEC by returning their allegedly ill-gotten gains and by paying penalties. However, the CEO is still being prosecuted, presumably because he was the mastermind behind this fraud conspiracy.
SEC Is in the Midst of Sweeping Crackdown of Crypto Market
All this is happening against the backdrop of a sweeping SEC crackdown on the cryptocurrency industry. On June 4, the SEC sued Canadian mobile-messaging company Kik for allegedly conducting an illegal, $100 million ICO.
As CCN reported, Kik reacted by launching a legal-defense fund called Defend Crypto. Kik’s affiliated foundation, Kin, seeded the fund with $5 million and is soliciting donations. The crypto industry has since contributed about $4.3 million.
Many companies settle to avoid a protracted and expensive legal war. However, Kik is digging in its heels, saying it wants to fight the SEC in court so the agency would finally issue some regulatory clarity. In court, Kik will argue that its Kin token is not a security and therefore should not be regulated by the SEC.
Bitcoin and the aggregated crypto markets are currently coming off of a period of large volatility that appears to have put the entire market’s recently established upwards momentum in danger of being lost. Since incurring significant selling pressure over the past couple of days, however, Bitcoin (BTC) has been able to stabilize in the upper-$7,000 region.Despite this short-term stability, analysts believe that Bitcoin is still vulnerable to further losses in the near future.Bitcoin (BTC) Slows Downwards Descent After Finding Support Around $7,500At the time of writing, Bitcoin is trading down roughly 4% at its current price of $7,683, but is still up slightly from daily lows in the $7,500-region, which is where the cryptocurrency found some levels of support that helped slow its descent that was sparked a couple of days ago.Although Bitcoin has not incurred any selling pressure that is massive enough to lead to a linear drop, it has been on a slow decline ever since it rapidly surged to $9,000 before incurring enough selling pressure to put its bullish momentum in jeopardy.In its current state, BTC can be characterized as fragile, as any notable increase in selling pressure could snowball and lead to further losses.Despite this, the latest dip may have simply been a follow through of a bearish technical formation that was formed previously, which may mean that the crypto will soon retest its next notable resistance level around $8,500.Big Cheds, a popular cryptocurrency analyst on Twitter, discussed this possibility in a recent tweet, saying:“$BTC #Bitcoin – This move down to $7500 took care of that bearish divergence (from $8700+) and now the slope of OBV matches price. If you believe in the rising wedge break, then no reason this can’t back test and get rejected at $8500.”$BTC #Bitcoin – This move down to $7500 took care of that bearish divergence (from $8700+) and now the slope of OBV matches price. If you believe in the rising wedge break, then no reason this can’t back test and get rejected at $8500 pic.twitter.com/iQh7hOJn3U— Big Cheds (@BigCheds) June 5, 2019Analyst: BTC Still Vulnerable to Significantly Further Losses Despite finding support around its current price levels, analysts are still quick to note that Bitcoin may continue to drop lower before hitting a price that provides enough buying pressure to send its price surging higher.Alex Krüger, a popular economist on Twitter who focuses primarily on cryptocurrencies, shared his thoughts in BTC in a recent tweet, noting that it will be primed for a move up if it is able to climb above $8,000, but it may first drop lower.“$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400. 6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level,” he explained.$BTC still vulnerable. Longs once above $7900-$8000 (higher) or on panic flushes (lower). Next support: 7600-7435, 7200, 6800, 6400.6800 is major, determined by all three price action, moving averages (50DMA) and fibs (Dec lows to 2019 highs). 6400 is the bull market level. pic.twitter.com/x7qfk5Ojgr— Alex Krüger (@krugermacro) June 5, 2019As the week continues on and Bitcoin’s price action continues to unfold, it is not unlikely that traders and analysts will soon gain a better idea of whether or not BTC is still in a firm uptrend, or if it is entering a period of consolidation.Featured image from Shutterstock.
The inventor of the reality television programme “Big Brother”, John de Mol, has sued Facebook over its negligence in policing the advertisements it allows on its platform. The Dutch billionaire has been the face of a fake advertising campaign for a Bitcoin investment platform.De Mol is not the only celebrity to have had his image usurped to generate trust in a scam investment platform. The scam has become so rife that Dutch authorities estimated that it cost victims almost 2 million euros last year.John De Mol: Facebook Should be Doing More to Stop Bitcoin-Related Scams AdvertisingAccording to report in Reuters, social media giant Facebook is being sued by the Dutch creator of the “Big Brother” reality television series. John de Mol alleges that the company should have done more to stop a fraudulent campaign advertising a Bitcoin investment platform.An image of the billionaire entrepreneur was reportedly used alongside various advertisements for a scam Bitcoin investment platform. De Mol’s legal representation told an Amsterdam District Court judge that the company had not done enough to prevent the advertisements and that his complaints were not responded to quick enough.Jacqueline Schaap, of De Mol’s legal team, argued that her client’s reputation had been damaged since his face was used to lure victims into clicking the advertisement. Many were subsequently defrauded, besmirching the entrepreneur’s name in the process. Del Mol’s lawyers also state that a total of almost 2 million euros have been taken from Dutch investors who believed they were investing in Bitcoin or some other crypto asset-related business.The billionaire’s legal team states that De Mol was just one of numerous Dutch celebrities used for the Bitcoin-based scam. Previously, NewsBTC has reported on many different versions of the same scam. Often, they involve the use of some respected, high profile public figure with an interest in investment or entrepreneurialism. Common targets are individuals appearing on “Dragon’s Den” or “Shark Tank” style shows.Previously, Rob Leathern, a manager at Facebook, stated that the company took complaints like De Mol’s seriously:“We take the issue of misleading ads that violate our policy, and those that feature public figures, very seriously. These include the ads impacting Mr. De Mol.He went on to state that the company does its best to prevent such advertising but those behind it were persistent, well=funded, and always changing tactics to get around the preventative systems Facebook has in place.De Mol’s lawyers state that greater efforts by Facebook should have been made block such fraudulent Bitcoin investment advertisements. Schaap argued that the current self-reporting system that the social media website relies on was not enough:“I don’t know what reality Facebook lives in, but that doesn’t work.” Related Reading: Remarkably Basic Scam Nets Criminals $2 Million in Bitcoin and Other AssetsFeatured Image from Shutterstock.
By CCN: Facebook is further along with its cryptocurrency than it has let on. It turns out the digital currency is much closer to its debut than expected. The social media behemoth plans to debut its new stablecoin, seemingly GlobalCoin which will reportedly be backed by a basket of fiat currencies, this month, according to CNBC citing The Information. Not only that, but there’s reportedly a crypto ATM and employee compensation involved that had never been leaked before. Facebook is also planning to attach a hefty $10 million fee to partners of a new Foundation who are looking to run nodes for GlobalCoin.
In fact, the coin is so far along that Facebook employees will be given the option to be compensated in GlobalCoin. What could go wrong? Not only has Facebook suffered a series of privacy setbacks but Mark Zuckerberg is a blockchain novice. Fortunately, he’s been consulting with and has built a team around him of more seasoned crypto professionals, not the least of whom is David Marcus, a PayPal alum, who has been “exploring blockchain”-related initiatives since last year.
Facebook Foundation’s Centralized GlobalCoin Nodes
To be taken seriously in the crypto ecosystem, Mark Zuckerberg was tasked with proving that GlobalCoin, unlike the company, would be decentralized. That is a Herculean task considering the control that the company wields over user data. They have reportedly been engaging with industry leaders ranging from venture capitalist and bitcoin bull Tim Draper to – shockingly – the Winklevoss twins for advice.
Zuckerberg is reportedly looking to partners of a new Foundation to validate transactions on the blockchain, relationships that the company has begun to secure. Bitcoin reportedly has 9,000 full nodes confirming transactions on the network. The Independent reports that Facebook is in talks with thousands of potential Foundation partners that would serve as nodes on the network including banks and technology plays.
Crypto Twitter wasn’t fooled by Facebook’s independent foundation. Some of the responses include:
“Right, another non-profit in search of seigniorage, but who are they kidding?”
“Let’s centralize it even more!!!!”
Globalcoin vs. Bitcoin
Globalcoin is not a bitcoin wannabe. Instead, it’s going to give some 2 billion users a taste of what it’s like to pay for something via cryptocurrency. But GlobalCoin, which is a pegged to fiat money, is more akin to JPMorgan’s JPM Coin. It’s a stablecoin of sorts that won’t exhibit nearly the same volatility as BTC. Bitcoin’s use case as a store of value is pretty solid while GlobalCoin will be limited to payments.
Facebook’s GlobalCoin is what it is, and it’s likely to attract new users to the crypto ecosystem – including the company’s own employees. It may be a back-door way to do it, but it’s one way. The thing about Zuckerberg is a zebra doesn’t change its stripes. So if he can somehow keep his hand in governing this cryptocurrency, he’s probably going to do it. There’s the rub with GlobalCoin, like it or not.
Disclaimer: The views expressed in the article are solely those of the author and do not represent those of, nor should they be attributed to, CCN.
Until recently, traditional investors have long viewed gold, silver, and other precious metals as the go to source of stability when the equities markets destabilize, although the advent of digital currencies, like Bitcoin (BTC), have ignited debates as to whether or not precious metals are still relevant tools of stability during times of market turmoil.This debate has become more pertinent in recent times due to the current instability in the global equities markets, which has mainly been sparked by investor’s concerns surrounding the United States’ current trade war with China, and declining trade relations with other countries, including Mexico.Bitcoin Bear: BTC Could Provide Traditional Investors With Insight into the Equities Markets In a recent interview with CNBC, Peter Boockvar, the chief investment officer at Bleakley Advisory Group and an outspoken critic of Bitcoin, recently explained that he believes BTC is increasingly finding utility as a safe haven investment, which means that its price action may convey important information to traditional equities investors, including himself.“I watch bitcoin as a signal, as an indicator, not because I want to own it. Over the last couple weeks, we’ve seen this sharp rise in bitcoin, and to me, that was saying something in terms of what markets were thinking about what the Fed was going to do [and about] the turmoil created by the threatened tariffs,” he explained.Although other investors may be flocking to digital currencies in an attempt to escape the volatility of the traditional markets, Boockvar still views gold and fiat currencies as his preferred safe haven trade.Today, gold prices surged to a 3 1/2 month high after news broke regarding somewhat weak job report, and as investors grow increasingly confident that the US Federal Reserve will cut interest rates in an attempt to bolster the economy.Is BTC’s Price Action Preceding That of Gold’s?While further providing evidence to his theory regarding Bitcoin possibly seeing increased utilization as a safe haven, Boockvar explained that the cryptocurrency’s recent price surge closely preceded that of gold, which to him may mean that the BTC price surge acted as a tip-off to the gold surge.“I still think it’s in its infancy, and I only bring it up here because we saw a short move over the past month that I was thinking, well something is causing this [surge]. I don’t recommend bitcoin in either direction because I don’t really care for it in terms of an asset, but I do care for it as a signaling mechanism that I think was a tipoff to this bounce in gold,” Boockvar noted.Although it still remains unclear as to whether or not BTC is a completely uncorrelated asset, or if it is increasingly being traded by traditional investors, it is clear its correlation with other markets will likely increase as more institutions begin investing in it.“From here on, can bitcoin be a safe haven as much as gold? I don’t know yet… But, again, I’d still rather own gold either way,” Boockvar concluded with what appears to be a hint of optimism.Featured image from Shutterstock