Bitcoin price is slowly declining and recently broke the $10,000 support area against the US Dollar.The price is facing an uphill task and it might continue to struggle near $10,250 and $10,300.There is a major bearish trend line forming with resistance near $10,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).The price could continue to slide as long as it is trading below the $10,400 pivot level in the near term.Bitcoin price is under pressure below $10,250 against the US Dollar. BTC may perhaps accelerate decline as long as there is no close above the $10,400 and $10,500 levels.Bitcoin Price AnalysisIn the last two analysis, we discussed the chances of more downsides in bitcoin price below $10,400 against the US Dollar. The price broke the $10,250 support area and the 100 hourly simple moving average. Moreover, the recent decline was such that the price broke the $10,100 support area. Finally, there was a downside spike below the $10,000 level and a new swing low was formed near the $9,938.Recently, there was an upside correction above the $10,000 level. Moreover, the price broke the 23.6% Fib retracement level of the recent slide from the $10,528 high to $9,938 low. However, the upward move was capped by the $10,200 and $10,250 levels. There is also a major bearish trend line forming with resistance near $10,250 on the hourly chart of the BTC/USD pair.Additionally, the 50% Fib retracement level of the recent slide from the $10,528 high to $9,938 low is acting as a resistance for the bulls. Above the trend line, the next key resistance is near the $10,350 level and the 100 hourly SMA. Having said that, a successful close above the $10,400 level plus the 61.8% Fib retracement level of the recent slide from the $10,528 high to $9,938 low is needed for more gains.On the downside, the $10,000 level is an immediate support. However, the main support is near the $9,950 level. Below $9,950, there are chances of further losses in the near term. The next key support is near the $9,800 level.Looking at the chart, bitcoin price is clearly under pressure and it could continue to slide below $10,000 in the coming sessions. If there is a bearish break below the $9,950 level, the price could head towards the $9,800 level. The main pivot level is near the $9,500 level.Technical indicators:Hourly MACD – The MACD is still moving in the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is well below the 50 level.Major Support Levels – $10,000 followed by $9,950.Major Resistance Levels – $10,200, $10,250 and $10,350.
Archives for September 10, 2019
After a nine-month delay and $3.8 million of investment, an upstart manufacturer is ready to produce its first batch of powerful new machines for mining cryptocurrencies ethereum and ethereum classic.
Linzhi, based in Shenzen, China, said Wednesday it had ordered 37 wafers from Taiwan Semiconductor Manufacturing Company, the main parts that will allow it to build about 200 application-specific integrated circuit (ASIC) miners.
These sample units will test whether the machines can mine as efficiently as they are designed to do using ethash, the proof-of-work algorithm used on ethereum and ethereum classic.
The testing units, if successful, would mark a major step toward mass production as Linzhi sets out to compete with makers of general-purpose computing chips, such as NIVIDA, as well as mining gear specialists Bitmain and InnoSilicon, which both make ASIC miners for the ethash algorithm.
Roughly five million ether (ETH), the native cryptocurrency on the ethereum network, is being mined every year, which, at its current price, is worth more than $800 million. Even for ethereum classic, which maintains the original ethereum ledger from before a hard fork in 2016, about nine million native ETC gets mined every year, worth more than $60 million.
Linzhi was founded in February 2018 by Chen Min, a former chip design head at Canaan Creative, maker of the Avalon bitcoin miner. Chen told CoinDesk the new company was completely self-funded with about $4 million as starting capital.
It announced the plan to produce ethash ASIC miners in September 2018 with an ambition to beat the efficiency of most existing equipment. Chen’s target specification for Linzhi’s ethash ASIC miner is set at 1400 mega hashes per second (MH/s) with an electricity consumption level of one kilowatt-hour.
To put those figures in perspective, NVIDIA’s GTX TitanV 8 card is now one of the most profitable piece of equipment on the ethash algorithm, able to compute 656 MH/s at an energy consumption level of 2.1 kWh, according to mining pool f2pool’s miner profitability index,
With ETH’s current price ($180) and network difficulty, as well as an electricity cost of $0.04 per kWh, each GTX TitanV 8 would bring home a daily profit of $7.35. Similarly, if one uses the same GTX TitanV 8 card to mine ETC, which has both a lower price and a lower mining difficulty than ETH, the daily profit would still be around $6.70.
The total computing power racing on ethereum and ethereum classic to compete for block rewards and to secure the two networks is around 160 and 13 tera hashes per second (TH/s), respectively.
Since the announcement of its plan, Linzhi has spent almost all of its initial capital on research and development of the chip design, the operations of its dozen-person team, and the order of the first batch of wafers, to bet the sample testing units will deliver the intended mining power.
Linzhi previously said it was aiming to order the first batch of wafers around December in order to have samples ready in April and mass production in June.
Speaking of the delay, the company said:
“We underestimated the complexity of the chip and how long it would take to grow the team and make the company functional. We are cautiously optimistic that we can just move forward the rest of the schedule, which would mean 12/2019 for sample machines and 02/2020 for mass production.”
One possible risk for the business is that the ethereum community has previously voted to activate the so-called ProgPow algorithm in order to remove the edge maintained by large miners that can afford expensive, specialized chips, although the timing for that switch is not yet decided. (Eventually, ethereum developers want to transition from proof-of-work to proof-of-stake, which would eliminate mining altogether.)
When asked if Linzhi has any Plan B if the switch happens, Chen said the company is, in fact, more active in the ETC community, adding:
“Our plan A is to focus on ETC mining. So if ETH will still be an option, that’s something good to have. In the ethereum community, the ProgPow plan still has some uncertainty. For the time being, we don’t see it as a market that we will obtain, so I don’t really care that much.”
In an arguably counterintuitive move, Chen said the company plans to adopt what it calls a “reverse discount” strategy when it starts to take in pre-orders if sample units prove to be successful. That would mean the more you buy, the more you are likely going to pay.
The reason is to discourage any single entity from buying too many machines and thus concentrating power over the network.
While Linzhi has not yet decided on final pricing for each unit to be sold at pre-orders, it says the goal is to achieve a payback period of four months for individual miners with a relatively small number of orders.
“This is our efforts and contribution to the idea of decentralization,” Chen said, concluding:
“Our sales will go to developers and community first, with a focus on geographical distribution, and potentially with a malus [reverse discount] for large orders. This means that small orders by individuals would be priced to hit the 4 month [return of investment] and larger orders would pay more.”
Mining equipment image via CoinDesk archive
ETH price is struggling to continue to move higher above the $185 resistance against the US Dollar.The price is likely to decline if bitcoin continues to struggle below the $10,250 level.There is a connecting bearish trend line forming with resistance near $182 on the hourly chart of ETH/USD (data feed via Kraken).The price remains at a risk of more downsides as long as the price is below $185.Ethereum price is struggling to gain strength above $185 versus the US Dollar since bitcoin is declining. ETH price could spike below the $180 support in the near term.Ethereum Price AnalysisIn the past two days, ETH price made two attempts to surpass the $185 resistance against the US Dollar. However, bitcoin price struggled to climb higher above the $10,350 and $10,400 resistance levels. As a result, Ether price also started showing a few bearish signs below the $185 resistance. On the positive side, the price is holding the main $178 and $180 support levels.The last swing low was formed near the $177 level. The price is currently correcting higher above the $178 and $179 levels. Moreover, there was a break above the 50% Fib retracement level of the recent decline from the $185 swing high to $177 swing low. On the upside, the $182 level is currently protecting gains. Additionally, there is a connecting bearish trend line forming with resistance near $182 on the hourly chart of ETH/USD.The 61.8% Fib retracement level of the recent decline from the $185 swing high to $177 swing low is also acting as a resistance. If there is an upside break above $182, Ethereum price could revisit the $185 resistance level. To continue higher and start a decent rise, the price must break the $185 and $186 resistance levels.On the upside, an initial support is near the $180 level and the 100 hourly simple moving average. The next key support is near the $178 level. If there is a downside break below the last swing low, the price could correct further lower towards the $170 support area in the near term.Looking at the chart, Ethereum price seems to be currently consolidating in a range below the $182 and $185 resistance levels However, if bitcoin price continues to slide, there are chances of a sharp downward move move in ETH below the $175 support area in the coming sessions.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is likely to move back into the bullish zone.Hourly RSI – The RSI for ETH/USD is currently above the 50 level, with a minor bearish angle.Major Support Level – $178Major Resistance Level – $185
Market data aggregator CoinGecko has upgraded its “Trust Score” metric in a bid to bring more transparency to the crypto trading environment.
The company’s re-tooled scoring system will evaluate global cryptocurrency exchanges using more complex metrics, beyond just liquidity.
Speaking on stage at CoinDesk’s Invest: Asia event in Singapore, CoinGecko co-founder Bobby Ong said the firm has significantly increased the number of exchanges it is tracking, going from 45 exchanges 18 months ago to 363 now – a growth of 706 percent.
CoinGecko first revealed the Trust Score system in May 2019 in order to combat fake trading volume among cryptocurrency exchanges.
The new upgrade to the scoring system, now called Trust Score 2.0, will look at four additional major measurements, including exchanges’ API technical coverage, scale of operations, estimated cryptocurrency reserves and regulatory compliance.
“With the launch of Trust Score 2.0, progress is being made to promote transparency amongst cryptocurrency exchanges,” CoinGecko co-founder TM Lee said in a statement. “We look forward to innovating further to better evaluate cryptocurrency exchanges based on a comprehensive set of data.”
With the new scoring system now live, CoinGecko has identified the top five crypto exchanges, according to its metrics. They are:
- Coinbase Pro
In a blog post released Wednesday, CoinGecko explained that 50 percent of its Trust Score 2.0 is based on exchanges’ liquidity, with 20 percent on technical coverage and 30 percent on scale of operations.
“Cryptocurrency Reserves and Regulatory Compliance categories are not included in the overall Trust Score 2.0 calculations for now but are considered candidates for inclusion in future Trust Score algorithm updates,” the company said in the post.
For the estimation of cryptocurrency reserve and regulatory compliance, CoinGecko said it’s working with Bitfury and Coinfirm, respectively.
CoinGecko cofounder Bobby Ong speaks at Invest: Asia 2019, photo by Wolfie Zhao for CoinDesk
Join us live from the show floor at Invest:Asia, our premier crypto global investment event. For the next two days we’ll be talking to folks like Jocelyn Chang of MakerDAO, Jeremy Allaire of Circle, and Benjamin Soong of Ledger. You’ll be able to chat with us on YouTube, ask questions, and interact with our guests as we explore the booming Asian markets.
The show kicks off at 10pm Eastern/2am UTC and we will be streaming all day. You can click below to view all of our content from the show.
Although Bitcoin has had a stellar year thus far, 2019 has not been a strong year for the altcoin market. Only two out of the thousands of altcoins on the crypto market were able to outperform Bitcoin over the first half of the year.
Cryptocurrency entities based outside of the Netherlands may get the boot under new crypto regulations.
Following up a report by CoinDesk on the DNB’s recent registry mandate for cryptocurrency companies, DNB spokesperson Tobias Oudejans said the current legislation before the Dutch House of Representatives will not only force domestic companies to register with the central bank but that foreign entities will also not be allowed to conduct services within the country.
Foreign entities include all firms registered outside the of European Economic Zone, a block constituting most European countries.
When asked if foreign crypto companies will have to create offices within the Netherlands or Europe to gain access to the market, Oudejans gave no comment.
Oudejans said that the legislation, which addresses the fifth EU Anti-Money Laundering Directive (AMLD 5), is still under consideration. The central bank has already asked all Dutch crypto companies to register before the January 10 cut off date mandated by AMLD 5, however.
The legislation and central bank registration is based on anti-money laundering concerns. Like all financial firms, Oudejans said, crypto firms must register with the Dutch government. As a new industry, the regulations are very standard even if they seem draconian, he said.
Local crypto companies happy with regulation
A lack of clear regulation in the nascent Netherlands crypto market is an issue many Dutch crypto service providers are happy is being addressed, says one local crypto firm.
Crypto2Cash founder PJ Datema told CoinDesk bad actors won’t be able to live up to the DNB standards, helping mature the market with their exit.
“It’s a really nice step. I’m not saying they are embracing crypto. [But] we are finally moving forward after a long period of silence,” Datema said. “It’s good they are taking action. If we want the market to mature and the participants to evolve… you want anti-money laundering (AML) and proper know your customer (KYC),” he continued.
How international–or even other European–firms will operate under the crypto laws being drafted has yet to be understood. Datema said the regulation is good for local companies and, from his interpretation, has the potential to block out competitors in Germany, France, and elsewhere.
For now, questions abound such as how the final legislation will look, how the DNB will enforce it, and how international players can operate within the Netherlands.
“With one parliament in Brussel, you would assume you would role out one set of rules for Europe,” Datema concluded.
Dutch bitcoin image via Shutterstock
Blockstack has raised more than $20 million in a token sale approved by the U.S. Securities and Exchange Commission, the company announced Tuesday.
In a blog post, Blockstack co-founder Muneeb Ali wrote that the company’s Reg A+ compliant token offering concluded on Sept. 9, and combined with a strategic investment round led by Hashkey Group and SNZ, raised a total of $23 million.
“More than 4,500 individuals and entities participated in the 2019 token offerings,” Ali wrote. “Blockstack PBC has entered into agreements for more than $23M in these offerings (including both our SEC-qualified token offering and our offering to investors outside the United States made under Regulation S).”
According to a filing in the SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) system, Blockstack specifically raised $15.5 million through the sale of 74.3 million Stacks tokens through its Reg A+ sale in the U.S., and another $7.6 million through the sale (and delayed delivery) of 30.6 million tokens through its Reg S offering in Asia.
The Reg A+ sale is further divided into two lots: it raised $10.9 million by selling 36.4 million tokens directly, and another $4.6 million from 37.9 million tokens sold through a voucher program. The company expects another $66,000 for tokens sold, whose payments have not yet arrived.
Blockstack announced its sale in July, after receiving SEC clearance to raise up to $28 million through its Reg A+ sale. The Stacks token, a utility token, will be used to pay developers on its Blockstack network, as well as by the token sale participants, Ali wrote.
“Finally, our SEC-qualified offering opened the door to expand our App Mining program,” he said, adding:
“Through this program, we can start distributing Stacks (STX) tokens to developers who are building high-quality applications on the Blockstack network. Blockstack now has more than 250 apps on the network, most of them built in the last six months. The App Mining program plans to pay developers up to $1M STX by May 2020 and can potentially accelerate the growth of the Blockstack network.”
The company initially sought to raise as much as $50 million through its regulated token sale, according to its preliminary filing.
William Mougayar and Blockstack’s Muneeb Ali, at Token Summit NYC 2019. Photo by Brady Dale.
Researchers at CoinCenter are in favour of a federal level regulatory framework to overlook intermediaries doing business with crypto assets in the United States. The non-profit organisation argues that the existing state-by-state regulations are a mess and that differing approaches in different jurisdictions limit the innovative potential of the industry.CoinCenter proposes an optional federal licence issued by the Commodities Futures Trading Commission. This would allow for greater oversight to prevent against manipulation and fraud.CoinCenter: Greater Regulatory Clarity Needed for CryptoThe CoinCenter cryptocurrency research organisation has published recommendations that it believes would make for a fair regulatory framework to govern intermediaries dealing with digital assets at the federal level. In the post, CoinCenter writes that the current state-by-state approach to regulation does not fit the cryptocurrency market:“… the lack of uniformity amongst state licensing laws, coupled with confusing language drafted long before cryptocurrency technologies existed, presents a real barrier to innovation.”Other nations, like Malta, for example, have been proactive in creating crypto asset-specific regulations and have benefited from an influx of digital currency startups setting up shop there. These have included the exchange giant Binance, for example.There are fears that the US risks driving innovation overseas if it does not come up with a system that promotes the kind of regulatory clarity cryptocurrency startups crave. For this reason, CoinCenter are in favour of federal-level regulation to provide greater clarity to firms doing business in the industry. The organisation also offers its services in helping lawmakers draw up the kind of legislation that would allow the United States to become a crypto industry leader.According to CoinCenter, such a regulatory framework should firmly define the role of regulatory agencies in relation to cryptocurrency. Under the proposals made by the researchers, the Securities and Exchange Commission (SEC), for example, would only have jurisdiction in cases involving new cryptocurrencies marketed as investment vehicles (ICOs). Meanwhile, the CFTC would be responsible for issuing optional federal licences.CoinCenter describes the potential benefits of such a federal licencing system running alongside existing state-level regulations:“This federal license should subject licensed entities to sensible spot market oversight for anti-manipulation, anti-fraud, consumer disclosure, and prudential (licensing, minimum-capitalization, etc.) regulations.”Cryptocurrency was recently catapulted to the forefront of global lawmakers’ minds. The social media giant Facebook detailed its plans to launch its own digital currency called Libra in June. The company’s announcement ruffled regulators’ feathers around the world and many of their responses to the plans mentioned Bitcoin and other cryptocurrencies as well as just Facebook’s intentions. Related Reading: Expert Claims Cryptocurrency Mining Requires Regulation To Stop Human TraffickingFeatured Image from Shutterstock.
Developers have disclosed a security hole in various versions of bitcoin’s Lightning Network software that could cause users to lose money if not updated.
It’s unclear how much bitcoin, if any, was lost, or how many users were affected.
Multiple Lightning node versions are vulnerable and should be updated immediately, Osuntokun warned a developer mailing list, adding:
“We’ve confirmed instances of the CVE being exploited in the wild.”
An experimental layer-two solution, Lightning aims to allow nearly costless transactions, making bitcoin feasible for mundane transactions such as coffee purchases.
But the bug shows the technology still has problems like any code-based financial product.
“Security issues have been found in various lightning projects which could cause loss of funds,” Russel said in the original posting. “Full details will be released in 4 weeks (2019-09-27), please upgrade well before then.”
Osuntokun emphasized that lightning is still in its infancy.
“We’d also like to remind the community that we still have limits in place on the network to mitigate widespread funds loss,” he wrote, “and please keep that in mind when putting funds onto the network at this early stage.”
Lightning Labs continued the warning on Twitter, reminding users that it’s still possible to lose funds on the network.
This is also a great time to remind folks that we have limits in place to mitigate widespread funds loss at this early stage. There will be bugs.
Don’t put more money on Lightning than you’re willing to lose!
— Lightning Labs⚡️ (@lightning) September 10, 2019
Versions affected include all LND releases 0.70 and below, C-Lightning 0.70 and below, and éclair 0.3 and below.
Olaoluwa Osuntokun image via CoinDesk archive