Bitcoin price remained in a bearish zone and recently declined below $7,600 against the US Dollar.The price retested the $7,500 support area and it is currently consolidating losses.There is a key bearish trend line forming with resistance near $7,820 on the hourly chart of the BTC/USD pair (data feed from Kraken).The pair could correct higher, but the bulls are likely to face resistance near $7,800 and $7,900.Bitcoin price declined recently below key support levels against the US Dollar. BTC is facing an uphill task and it is likely to struggle near the $7,800 and $8,000.Bitcoin Price AnalysisRecently, bitcoin price started a major decline below $8,000 against the US Dollar. The BTC/USD pair declined heavily and broke the $7,800 and $7,600 support levels. The pair even broke the $7,800 level and the 100 hourly simple moving average. Finally, there was a break below the $7,550 level and the price tested the key $7,500 support area. A swing low was formed at $7,502 and the price is currently correcting higher.It is currently testing the $7,700 resistance area and the 23.6% Fib retracement level of the last drop from the $8,131 high to $7,502 low. If there is an upside correction, the price could test the $7,800 resistance area. There is also a key bearish trend line forming with resistance near $7,820 on the hourly chart of the BTC/USD pair. The pair is clearly facing an uphill task near $7,800, $7,850, and the 100 hourly SMA. The next key resistance is near the $8,000 level. Moreover, the 50% Fib retracement level of the last drop from the $8,131 high to $7,502 low is near the $7,850 to act as a resistance.Therefore, a successful break above the trend line and $7,850 could push the price towards the $8,000 barrier. If there is an upside break above $8,000, the price could move back in a positive zone. Conversely, if there is a downside break below $7,600, the price could retest the $7,500 support area.Looking at the chart, bitcoin price is clearly under a lot of pressure below $7,800 and $8,000. As long as there is no close above the 100 hourly SMA, the price remains at a risk of more losses below $7,600. On the downside, the main support is near the $7,500. If there is a downside break, the price could trade towards $7,200.Technical indicators:Hourly MACD – The MACD is likely to move back in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level.Major Support Levels – $7,600 followed by $7,500.Major Resistance Levels – $7,800, $7,850 and $8,000.
Archives for June 9, 2019
Ripple price extended its decline below the $0.4000 support area against the US dollar.The price even broke the $0.3800 support area and traded close to the $0.3660 level.There is a major bearish trend line forming with resistance near $0.3950 on the hourly chart of the XRP/USD pair (data source from Kraken).The pair is likely to struggle near $0.3950 or $0.4000 if it corrects higher from the current levels.Ripple price is slowly recovering from lows against the US Dollar, similar to bitcoin. XRP might correct higher, but it won’t be easy for the bulls to clear the $0.3950 or $0.4000 level.Ripple Price AnalysisThere was a sharp decline from the $0.4110 swing high in ripple price against the US Dollar. The XRP/USD pair broke the key $0.4000 and $0.3950 support levels to move further into a bearish zone. There was also a close below $0.4000 and the 100 hourly simple moving average. Finally, there was a break below $0.3800 and the price traded close to the $0.3660 level. A swing low was formed at $0.3687 and the price is currently correcting higher.It is recovering above the $0.3800 level and the 23.6% Fib retracement level of the recent drop from the $0.4112 high to $0.3687 low. On the upside, there are many hurdles near the $0.3950 and $0.4000 levels. An initial resistance is near $0.3900. It coincides with the 50% Fib retracement level of the recent drop from the $0.4112 high to $0.3687 low. There is also a major bearish trend line forming with resistance near $0.3950 on the hourly chart of the XRP/USD pair.The 61.8% Fib retracement level of the recent drop from the $0.4112 high to $0.3687 low is near the $0.3950 to stop the current wave. To start a decent and strong recovery, the price must clear the $0.3950 and $0.4000 resistance levels. The next key resistance is near the $0.4110 level, above which the price might move back in a positive zone. On the downside, an initial support is near the $0.3800 level, below which the price might move back towards $0.3660. Any further losses could push the price towards the $0.3500 level.Looking at the chart, ripple price is currently recovering, but it could face a strong resistance near the $0.3950 and $0.4000 levels. If there is a clear break, the price could start a rise towards the $0.4200 level.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly moving back in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now moving higher and it is currently above the 25 level.Major Support Levels – $0.3800, $0.3660 and $0.3500.Major Resistance Levels – $0.3900, $0.3950 and $0.4000.
Michael J. Casey is the chairman of CoinDesk’s advisory board and a senior advisor for blockchain research at MIT’s Digital Currency Initiative.
The following article originally appeared in CoinDesk Weekly, a custom-curated newsletter delivered every Sunday exclusively to our subscribers.
Advances in cryptography are converging to help developers bring blockchain applications closer to the core decentralizing principles on which this technology is founded.
Inventions such as atomic swaps, zk-SNARKS and Lightning-based smart contracts are allowing developers to realize the dream of true peer-to-peer transactions in which neither party, nor an outside intermediary, can act maliciously. Witness the rising number of non-custodial and decentralized exchange (DEX) services for trading crypto assets.
This is exciting. But it also shines a light on another big problem that has curtailed the widespread adoption of cryptocurrency and blockchain technology: secure key management.
For too long, the most reliable means of protecting the private keys that afford the holder control over an underlying crypto asset have been too clunky, insufficiently versatile, or difficult to implement on scale. User experience has been sacrificed in return for security.
Now, some big strides in another hugely important field of cryptography – secure multiparty computation, or MPC – point to a potential Holy Grail situation of both usability and security in a decentralized system.
A keyless wallet
Progress in this field was marked last week by Tel Aviv-based KZen’s public announcement of the specs for its new ZenGo wallet. ZenGo uses MPC, along with other sophisticated cryptographic tools such as zero-knowledge proofs and threshold cryptography, to share signing responsibility for a particular cryptocurrency address among a group of otherwise non-trusting entities.
The beauty of the KZen model is that security is no longer a function of one or more entities maintaining total control over a distinct private key of their own – the core point of vulnerability in cryptocurrency management until now. Instead the key is collectively derived from individual fragments which are separately generated by multiple, non-trusting computers.
The model draws on the genius of MPC cryptography.
With this approach, multiple non-trusting computers can each conduct computation on their own unique fragments of a larger data set to collectively produce a desired common outcome without any one node knowing the details of the others’ fragments.
The private key that executes the transaction is thus a collectively generated value; at no point is a single, vulnerable computer responsible for an actual key. (KZen’s site includes a useful explainer on how it all works.)
KZen is not the only provider of MPC solutions for blockchain key management. Unbound, another Israeli company, is going after the enterprise marketplace with its MPC solutions for crypto security.
Unbound’s prolific (if blatantly pro-MPC) blog offers different angles on the same argument.
It makes a repeated case for why MPC is superior to the two preferred approaches to crypto security of the moment: hardware security modules (HSM), on which hardware wallets like Ledger and Trezor are built, and multi-signature (multisig) technologies, which are favored by exchanges.
Attacking the trade-offs
If KZen and Unbound are to be believed, MPC solutions resolve both the hot-versus-cold trade-off in key management and the dilemma of self-versus-managed custody.
Cold wallets, in which keys are stored in an entirely offline environment out of attackers’ reach, are quite secure so long as they remain in that offline state. (Though you really don’t want to lose that piece of paper on which you printed out your private key.)
But bringing them into a transactable, online environment poses an overly cumbersome challenge when you want to use those keys to send money. That’s perhaps not a problem if you’re just a HODLer who transacts rarely but it’s a serious limitation to blockchain technology’s prospects for transforming overall global commerce.
On the other hand, hot wallets have, until now, been notoriously vulnerable.
Whether it’s the relentless “SIM jack” attacks on people’s phones that are emptying out both hosted (third-party custodial) wallets and on-phone self-custody holdings, retail participants’ horror stories are legion. And, of course, we all know the stories of custodial exchanges being hacked – from Japan, to Hong Kong, to Canada, to Malta.
At the same time, the solution that regulated institutional investors are currently seeking – that custodians and exchanges build Fort Knox-like “military-grade” custody solutions – inherently contain a compromise.
Not only does this approach fail to resolve the dependence on a third-party, but there are serious doubts about whether any such solution can be forever safe from hackers, who are constantly improving their methods for getting over firewalls. In best-case scenarios, the constant IT upgrades becomes a massive money suck.
Alternative to HSMs and multisig
None of this is not to say that existing security technologies are useless.
Ledger and Trezor’s hardware devices – a more nimble form of cold wallet – are widely used by individuals who are uncomfortable with both external third-party custody and online, on-device self-custody wallets. And, separately, multi-signature (multisig) solutions, in which an m-of-n quorum of keys are required to execute a transaction, have proven robust enough to be used by most exchanges.
But in both cases, vulnerabilities have been exposed. And to a large extent those risks come down to the fact that, regardless of the surrounding security model’s sophistication, the all-important keys are always sitting at single points of failure.
Just last week, researchers demonstrated how they could hack into a remote hardware security module. The irony: the researchers were from Ledger, which relies on HSM to secure its customers’ keys.
Multisig models arguably offer protections across such attacks, because a breach requires simultaneous control of more than one key held in separate locations, but the fact is that multisig solutions have also failed because of both technical and human vulnerabilities (inside jobs).
What’s more, both solutions are inherently limited by the need to customize them to particular specifications or ledgers. Crypto developer Christopher Allen pointed out last week , for example, that HSMs are particularly constrained by the fact that they are defined by government standards.
And in each case, the ledger-specific design of the underlying cryptography means there is no support for the kind of multi-asset wallets that will be needed in a decentralized interoperable world of cross-chain transactions.
By contrast, KZen is boasting that its key-less wallet will be a multi-ledger application from day one.
Challenges and opportunities
To be sure, MPC remains unproven in a practical sense.
For some time, the heavy resources needed to carry out these network computing functions made it a challenging, costly concept to bring into real-world environments. But rapid technical improvements in recent years have made this sophisticated technology a viable option for all kinds of distributed computing environments where trust is an issue.
And key management isn’t its only application for blockchains, either. MPC technology plays a vital role in MIT-founded startup Enigma’s work on “secret contracts” as part of its sweeping plan to build the “privacy layer for the decentralized web.”
(An aside: Enigma CEO and founder, Guy Zyskind, is also an Israeli. Israel has fostered a remarkable concentration of cryptographic expertise in this space.)
It would be unwise to assume that MPC, or any technology for that matter, will provide a perfect, totally infallible solution to security problems. It is always true that the biggest security threats come when human beings complacently believe security is not a threat.
However, if you squint hard enough, and think about how this technology’s prospects for better key management can be married to Enigma’s vision for an MPC-based secret contract layer and to the broader march toward decentralized, interoperable asset exchanges, a compelling vision of true peer-to-peer blockchain-based commerce starts to emerge.
At the very least, you need to watch this space.
Keys image via Shutterstock
By CCN Markets: Bitcoin millionaire John McAfee — who’s a fugitive from the law for tax evasion — derisively taunted the U.S. government on Twitter. McAfee warned them to leave him alone or he will “bury” them.
In a dizzying weekend Twitter rant, McAfee claimed that the Department of Justice is compiling a bogus case against him for money-laundering, racketeering, and murder.
John McAfee: The Government Is Conspiring Against Me
McAfee warned that if the feds don’t leave him alone, he’ll drop several bombshells that will reveal mass corruption within the government. So they’d better back off — or else.
“From friends in the State Department: The DOJ trumped up charges against me for murder, money laundering and racketeering…A conspiracy is unfolding. Proof coming.”
“I’ve collected files on corruption in governments. For the first time, I’m naming names and specifics. I’ll begin with a corrupt CIA agent and two Bahamian officials…If I’m arrested or disappear, 31+ terabytes of incriminating data will be released to the press.”
Months Ago, McAfee Dared the IRS to Come After Him
It’s hard to make sense of McAfee’s incoherent tweets, but basically, he warned the U.S. government that he’ll fight back if they keep pursuing him.
If it’s true that federal agents are trying to hunt McAfee down, it’s presumably because he admitted that he hasn’t paid taxes for almost a decade.
As CCN reported in January, McAfee confessed in a stunning tweetstorm that he hasn’t filed a tax return in eight years. Why? Because he explained:
- “Taxation is illegal.”
- “I paid tens of millions already and received [nothing] in services.”
- “I’m done making money.”
- “I live off of cash from McAfee Inc.”
- “My net income is negative.”
McAfee then insisted that he’s a “prime target for the IRS” before defiantly challenging the agency to pursue him. “Here I am,” he goaded.
Before that, McAfee provoked the IRS, saying that he’s ready to fight them because “I have prepared my entire life for this battle.”
We declared our independence from Britain and fought a bloody war to escape burdensome taxes, yet here we are, less than 250 years later, being burdened by income taxes that are more crushing than anythung rhe British dreamed of. Free yourselves people!https://t.co/mYy6z06tHc
— John McAfee (@officialmcafee) January 4, 2019
McAfee to Feds Today: ‘Leave Me…Alone’
Now, it seems that John McAfee has had a change of heart and wants the government to leave him alone. Interestingly, McAfee posted the tweets while sailing around his yacht (which is his home) in Cuba.
“Leave me…alone, or go down with the corruption you have embraced, because I will…bury you if you continue. Doubt me at your own…risk.”
Reminder: McAfee Is Still Running for President
It’s unclear how McAfee reconciles his desire to be left alone with the fact that he’s running for president of the United States. In January, McAfee announced his presidential bid — several weeks after proudly declaring that he’s a tax evader.
Unlike his rivals, McAfee has an unexpected slogan: “Don’t vote McAfee.”
Like many bitcoin enthusiasts, McAfee is a libertarian who believes in small government, unfettered political freedom, and personal autonomy.
McAfee: ‘We Must Be Free’ from Government Control
McAfee candidly confessed that he has no solutions to the nagging problems that plague the United States. Moreover, he insisted that any politician who claims they have answers are lying.
“Do not ask me about immigration, foreign relations, education etc. I have no idea. Those claiming that they do are lying to themselves, or if not, they are purposely lying to you.”
McAfee underscored that his main goal is to spotlight the ingenuity of bitcoin and to urge people to rise up and free themselves from the oppressive yoke of government control.
“We must first be free. Freedom for The People is my only goal.”
And only then, he claims, can we find a solution to other problems.
When Bitcoin was first brought to the table, it was a revolution in crypto and programming. Satoshi Nakamoto proposed the first digital asset that was decentralized, codable, and not tied to any traditional asset.Since then, many entrepreneurs and technologists have tried to use Satoshi’s concepts to build new products. While many altcoins are spiritual descendants of BTC, sporting similar mining algorithms or cryptoeconomics, some are entirely different. EOS is one of these altcoins.Related Reading: Bitcoin Hitting $10,000 Will Kickstart Mass FOMO, Quadruple BTC in Months: FundstratThe blockchain, created by the Cayman Islands-based Block.one, uses a delegated proof of stake system rather than mining, disallowing anyone to run a validating node. This has understandably led to some controversy, especially in a community predicated on decentralization and disintermediation.Crypto Ratings Slams EOSIn a recent tweet, Weiss Ratings, an investment advisory/research group that has taken a liking to crypto assets, slammed EOS. As seen below, the agency stated that it believes EOS has “serious problems with centralization”, and thus it has been mandated to “severely degrade its technology score.” As seen on the company’s website, EOS’s technology score is now an A-minus.EOS DOWNGRADE: #EOS has serious problems with centralization, and their event last week did anything to alleviate that, so we’ve severely downgraded its technology score. It’s now up to #ADA to launch a truly decentralized #PoS #blockchain. No pressure.#crypto #Cardano #BTC— Weiss Ratings (@WeissRatings) June 7, 2019This is seemingly in reference to the fact that at last week’s Block.one event, which was held to be the one-year anniversary of the launch of EOS, nothing was announced to increase decentralization. The blockchain developer also announced a new protocol, which they state will make the chain eight times faster than it currently is.The odd thing about this is that earlier this year, Weiss was all for EOS. As reported by NewsBTC previously, Weiss claimed in a report that EOS was challenging Ethereum to become the “backbone of the new internet”, citing the former’s countless applications and mass user base. And thus, it was given one of the highest scores, even ousting Bitcoin, Cardano, Litecoin, Stellar Lumens, and other projects.As a result, some have questioned this latest shift in rating.Related Reading: Crypto Tidbits: SEC Still Wary of Bitcoin ETF, Facebook Crypto Inbound, Binance to Launch StablecoinBlock.one Launches Voice to Drive AdoptionThis aside, Block.one has recently made a number of strides. Brendan Blumer, the chief executive of Block.one, remarked last week:“You just can’t read a house when the foundation is crumbling. Social media was created to use its users. Right now, it’s the companies, not the users that reap the rewards. They auction our data to the highest bidder and flood our feeds with hidden agendas… We’re leveraging the EOS blockchain to create a social media platform that is more aligned with the world… The value of good content gets circulated to sustain the community.”Launching shortly into beta, Voice will be a “truly self-sustaining” social media economy where both the platform itself and the users benefit. There will be no data collection, nor wanton advertisement targeting. To do this, Block.one is launching the fittingly-named Voice Token, which can only be created by interacting in the social ecosystem. The EOS-based crypto asset will allow users to “make their voice heard”, giving holders the opportunity to signal boost their messages and media.Featured Image from Shutterstock
Ethereum and the entire crypto markets have descended downwards over the past several days, primarily due to the fact that Bitcoin has been unable to advance past the upper-$8,000 region, which has sparked a widespread sell-off that has had a fairly significant impact on most altcoins, including ETH.Now, analysts believe that Ethereum’s current selling pressure could continue to perpetuate, which may lead it to extend its losses to as low as $200 in the near future.Ethereum (ETH) Faces Increasing Selling Pressure as Crypto Markets PlungeAt the time of writing, Ethereum is trading down over 5% at its current price of $234, down significantly from its daily highs of nearly $250.Ethereum has been slowly grinding lower over the past week, as it has fallen from weekly highs of over $270 and is currently trading at weekly lows.Importantly, ETH is currently trading up significantly from its one-month lows of $167, which were set roughly four weeks ago. When considering this, it is clear that the cryptocurrency is still in an uptrend over a longer time frame, despite its recent instability.Although the uptrend may still be intact, it is important to note that where Ethereum heads next will likely be determined by Bitcoin’s near-term price action, which is, likewise, also looking somewhat bearish.As for where Ethereum may land before the selling pressure lets up, one analyst believes it is heading for $200.“$ETH is going to $200 and only a miracle can save it,” Mohit Sorout, a cryptocurrency analyst on Twitter recently said.$ETH is going to $200 and only a miracle can save it. pic.twitter.com/faWP19GTjj— Mohit Sorout 📈 (@singhsoro) June 9, 2019Analysts Concur That ETH Has Significantly Further Room to Fall Sorout is not alone in his assessment that Ethereum may drop significantly further in the near future, as other analysts are currently expressing similarly bearish assessments.DonAlt, another popular cryptocurrency analyst on Twitter, noted in a recent tweet that he believes ETH could continue dropping until it finds support around its weekly support level that exists between $190 and $200.“$ETH upd: A few ups and downs later & this still looks terrible to me. I’m glad I jumped off the altpairs are looking good bandwagon at the right time, most of the recent drop is due to ETHBTC underperforming. Bad sign for alts in general. New invalidation = closes above $250,” he said.$ETH upd:A few ups and downs later & this still looks terrible to me.
I’m glad I jumped off the altpairs are looking good bandwagon at the right time, most of the recent drop is due to ETHBTC underperforming.
Bad sign for alts in general.New invalidation = closes above $250. pic.twitter.com/Kkp4JvqC02— DonAlt (@CryptoDonAlt) June 9, 2019As the weekend wraps up and the fresh week of trading begins, it is likely that analysts and traders alike will soon gain greater insight into whether or not Ethereum and the aggregated markets will continue to plummet lower before they find support.Featured image from Shutterstock.
My theory was that crypto whale traders swooped in late last year not merely because of the 85% decline in BTC but because of a key technical trading factor – and nothing more.
Willy Woo confirms that the recent price rise was driven more by whales buying and trying to manufacture a short squeeze.
This is both good news and bad news for bulls.
Good News for BTC Bulls
The good news is that bitcoin will behave like most low-float illiquid stocks.
With low-float illiquid stocks, the limitation on share count means that the stock will always be subject to high levels of volatility and large spreads on the bid-ask.
It also means that any attempt to short the stock down comes with inordinate risk considering a sudden surge in buying will crush the short-sellers.
With bitcoin, there will always be a certain number of short-sellers, and that means short squeezes like this are going to be a more likely occurrence than not. That should theoretically provide a level of price support over time.
Bad News for BTC Bulls
The bad news is that bitcoin has a wrinkle that makes it more vulnerable than low-float illiquid stocks.
Willy Woo and other bitcoin bulls talk about “organic investment.” With even a low-float illiquid stock, an investor is actually buying something that produces a good or service and generates an earnings stream (assuming the business itself is profitable).
As long as that good or service is in demand, and the company itself is at all competitive, then it will receive true organic investment.
Bitcoin is neither a good nor a service. It is a vague investment commodity that produces nothing.
Bitcoin Is a Lousy Store of Value
It isn’t even a very good store of value for the very reason that Willy Woo points out – volatility.
Something isn’t a store of value when that value can fluctuate as much as 15%, or more, in a given day.
Over the past three years, bitcoin has an average annual return of 144%, plus or minus 197%.
Gold has an average annual return of 1.8%, plus or minus 21%.
While I wouldn’t call gold the most stable store of value, it’s a heck of a lot more stable a store of value than bitcoin is.
Eventually, speculation is going to die out. When that happens, perhaps then bitcoin will be an actual store of value.
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 Markets.
The Bitcoin (BTC) bull run has barely even started, but Fundstrat Global Advisors is absolutely euphoric. In a graphic published recently, the investment advisory firm suggested that the “Fear of Missing Out (FOMO)” is quickly materializing in the cryptocurrency markets, boding well for BTC’s performance in the short to medium term.We are apparently headed straight for LEVEL 10 FOMO in the #bitcoin market (via @fundstrat) pic.twitter.com/YzFkrazWz2— Adam Samson (@adamsamson) May 29, 2019Fundstrat’s Lee Bullish on BitcoinIn a recent research note, posted by Financial Times’ Adam Samson, the firm’s head of research Tom Lee explained that the Bitcoin market is currently experiencing “Level 5” FOMO according to Fundstrat’s “Degree of FOMO” scale. As seen above, this doesn’t mean that the cryptocurrency market has peaked though.Fundstrat notes that investors have yet to experience “full-blown” FOMO, marked by a reading of “Level 10”. It is unclear how Fundstrat came to such a conclusion, but the company’s analysts are known for using the Bitcoin Misery Index to determine overall investor sentiment and the market’s overall direction.Related Reading: Institutional FOMO to Drive Bitcoin Price Beyond $20,000 And To Unseen HeightsOnce Bitcoin reaches $10,000, “Level 10” FOMO will grace this market, which last occurred when BTC blipped above $4,500 in late-2017. If history is any guide, the cryptocurrency market will shoot even higher once $10,000 is breached. As Lee wrote on Twitter earlier this month, “[$10,000] will see FOMO from those who gloated about the 90% crash in BTC… and those who saw Bitcoin dead as forever.”While Fundstrat has long had its eye on the $10,000 price point, its analysts never indicated a price target — until now anyway.In a recent podcast with Binance’s chief financial officer, Wei Zhou, Lee explained that once $10,000 is breached, all hell will break loose for the cryptocurrency market. This corroborates the aforementioned analysis of this nascent market’s “FOMO levels”.Per CCN, which reported on this first, the Wall Street analyst stated that once $10,000 is breached, there will be a “fast and furious” move to $20,000. And from there, Bitcoin will double in the next five months, reaching $40,000 in a jaw-dropping move.Is $40,000 Possible? While $40,000 seems miles away — and it is — many are sure that this price point is within Bitcoin’s grasp, even in the medium term. Analyst PlanB, known for his use of the stock-to-flow ratio (SF), recently explained that the impending block reward reduction will give Bitcoin a fair valuation of $55,000.Per previous reports from NewsBTC, he explained that BTC abides by similar valuation rules than gold’s, in that you can use its inflation rate to determine a “fair” valuation. As it stands, Bitcoin has an SF ratio of around 25, implying an inflation rate of 4%. Once the halving hits, however, Bitcoin’s SF ratio will move past 50 to approach that of gold, giving BTC a lower inflation rate than most fiat currencies.With there being a “nice linear relationship” between SF and the market valuation of an asset, PlanB suggests that Bitcoin would be fairly valued at $1 trillion, giving each coin a price of $55,000.While $55,000 for each BTC seems irrational for most, PlanB writes that money from silver, gold, negative interest rate economies, authoritarian and capital control-rife states, billionaires looking for a quantitative easing hedge, and institutional investors will eventually flood into this space.This in and of itself may seem like a pipe dream, but some are sure that this is likely, especially with the increase in hyperinflation, fiscal mismanagement, and speculators looking for attractive alternative investment opportunities.Some have been even more optimistic, however, stating that $40,000 will be just the tip of the iceberg. In fact, many have looked to $250,000 or even $333,000 as long-term price targets. We’ll need to wait and see though.Featured Image from Shutterstock
Bitcoin and the aggregated cryptocurrency markets have faced increasing selling pressure as of late that appears to have put their recently established upwards momentum in jeopardy. Despite this, BTC and other cryptos have yet to incur any massive influxes of selling pressure that lead to the formation of a quick downwards leg.Although the recent influx of selling pressure does appear to be bearish, it may all be part of the current uptrend that the markets are in, according to one prominent crypto analyst.Bitcoin (BTC) Continues Slow Downwards GrindAt the time of writing, Bitcoin is trading down over 2% at its current price of $7,770 and is currently trading just a hair above its 24-hour lows of $7,750.Over a one-week period, Bitcoin has dropped significantly from its highs of nearly $8,800, which were set last weekend. It appears that the upper-$8,000 region remains a region of significant resistance for the cryptocurrency, as it has tried and failed on multiple occasions to break above this price level.Although BTC is currently trading well below its recently established highs, it is important to note that it is still in a firm uptrend, as it has surged over the past 90 days from lows of $3,900 to its recently established highs around $9,000.Even though the uptrend remains intact from a long-term perspective, over a shorter time frame it is possible that it continues to grind lower.Big Cheds, a popular cryptocurrency analyst on Twitter, discussed this in a recent tweet, concisely noting that it may continue setting lower lows in the near-future.“$BTC #Bitcoin 1 hour – Another lower high, on track for a lower low,” Cheds said while referencing the below chart.$BTC #Bitcoin 1 hour – Another lower high, on track for a lower low https://t.co/xGdN4ZZRlG pic.twitter.com/8Mk7kysd5E— Big Cheds (@BigCheds) June 9, 2019Latest Pullback May Be Part of the Current BTC UptrendThe latest drop has led many investors and analysts to turn bearish on BTC, but it may actually be part of a larger price movement that is bullish.Josh Rager, another popular cryptocurrency analyst, explained in a tweet from late-May that traders should expect Bitcoin to incur pullbacks of potentially 30% or more while still remaining in a firm uptrend.“$BTC: Still waiting on that 30%+ pullback? Bitcoin had eight 30%+ pullbacks last market uptrend but the average time between each pullback was 98 days. BTC had a serious 26.3% pullback on May 17th, which means the next major retrace could be a couple months away,” Rager noted.1/ $BTC: Still waiting on that 30%+ pullback?Bitcoin had eight 30%+ pullbacks last market uptrend but the average time between each pullback was 98 daysBTC had a serious 26.3% pullback on May 17th, which means the next major retrace could be a couple months away pic.twitter.com/SwsNMYWNKb— Josh Rager 📈 (@Josh_Rager) May 28, 2019So, if history rhymes, then traders shouldn’t be disconcerted by the recent selling pressure that has led Bitcoin’s price into the $7,000 region, as it may simply be part of the large uptrend that BTC is currently in.Featured image from Shutterstock.