Ripple price is struggling to gain momentum above the $0.2600 resistance against the US dollar.The price is currently declining and it could continue to move down below $0.2520.There is a connecting bearish trend line forming with resistance near $0.2545 on the hourly chart of the XRP/USD pair (data source from Kraken).The price could decline sharply below the $0.2500 and $0.2480 support levels in the near term.Ripple price is showing bearish signs below $0.2500 against the US Dollar, similar to bitcoin. XRP price is struggling to climb and it could accelerate losses below $0.2480.Ripple Price AnalysisThis week, XRP price made another attempt to climb above the $0.2650 resistance against the US Dollar. The price failed to remain in the positive zone above $0.2650 and later started a fresh decline. The bulls failed to keep the price above the $0.2600 level and the 100 hourly simple moving average. Ripple is struggling and is trading well below the $0.2580 level.The recent decline was such that the price even broke the $0.2550 support. A swing low was formed near $0.2510 and the price is currently correcting higher. It broke the 23.6% Fib retracement level of the recent decline from the $0.2636 high to $0.2511 low. However, the upward move was capped by the $0.2560 level. Moreover, there is a connecting bearish trend line forming with resistance near $0.2545 on the hourly chart of the XRP/USD pair.If there is an upside break above the trend line, the price could test the $0.2580 resistance. Additionally, the 50% Fib retracement level of the recent decline from the $0.2636 high to $0.2511 low is also near the $0.2580 level. If the price climbs above $0.2580 level, there are chances of it revisiting the main $0.2650 resistance area in the near term.Conversely, if the price continues to decline, it could struggle to stay above the $0.2510 and $0.2500 support levels. The main support is now near the $0.2480 level. If the price slides further, there is a risk of a breakdown below the $0.2450 level.Looking at the chart, ripple price is showing a lot of bearish signs and is trading well below the $0.2580 level. As long as the price is trading below $0.2580, there are chances of more losses. On the upside, the bulls might continue to face a strong selling interest near the $0.2650 level.Technical IndicatorsHourly MACD – The MACD for XRP/USD is about to move back into the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now moving well below the 50 level.Major Support Levels – $0.2510, $0.2500 and $0.2480.Major Resistance Levels – $0.2560, $0.2600 and $0.2620.
Archives for September 11, 2019
ETH price is slowly moving down and recently broke the $180 support area against the US Dollar.The price could soon test the $172 or $170 level before it starts a fresh increase.Yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD (data feed via Kraken).The pair is still trading in a positive zone as long as there is no close below the $170 support.Ethereum price is in a corrective decrease versus the US Dollar, while bitcoin is consolidating. ETH price might extend its decline to $172 before it could climb again.Ethereum Price AnalysisAfter forming a short term top near $186, ETH price started a downside correction against the US Dollar. It broke the $180 support level and the 100 hourly simple moving average to enter a negative zone. Moreover, the recent decline in bitcoin pushed Ethereum below the $178 level. The decline was such that the price tested the $175 support level and it is currently consolidating losses.It corrected above the $176 level plus 23.6% Fib retracement level of the last drop from the $186 high to $175 swing low. However, the previous support area near the $180 level is acting as a resistance. Besides, the 100 hourly SMA is also preventing gains near $179. More importantly, yesterday’s highlighted key bearish trend line is still active with resistance near $179 on the hourly chart of ETH/USD.Above the trend line, the next key resistance is near the $180 level. It coincides with the 50% Fib retracement level of the last drop from the $186 high to $175 swing low. If there is an upside break above the trend line, the 100 hourly SMA, and $180, then the price could start a fresh increase. The next key resistance area is near the $185 level, above which the price could accelerate higher.On the downside, there is a decent support forming near the $175 level. However, it seems like there could be a downside spike before the price starts a fresh increase above the $180 level.Looking at the chart, Ethereum price is clearly grinding lower below the $180 level. It seems like the price could test the $172 level before it attempts a decent upward move. Any further losses may perhaps push the price towards the key $170 support level. Overall, the price is likely to complete its correction near $172 or $170 before it could rise again.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is showing a few bearish signs.Hourly RSI – The RSI for ETH/USD is currently below the 50 level, with a bearish angle.Major Support Level – $172Major Resistance Level – $180
More than a year after he sold one of China’s longest-running bitcoin exchanges, Bobby Lee, co-founder and former CEO of BTCC, is back.
Announced Thursday at CoinDesk’s Invest: Asia event in Singapore, Lee’s new venture, Ballet, is rolling out a hardware wallet supporting multiple cryptocurrencies.
To differentiate its product and spur adoption outside crypto circles, Ballet will generate public addresses and private keys for users in advance.
Lee believes this design will make it easier for people who have no exposure to crypto to get hands-on experience with the asset without having to go through the set-up process most hardware wallets require.
“We wanted to create a wallet that is simple and elegant. And that is what we’ve done,” Lee said on stage Thursday.
The wallet, also dubbed Ballet, is a piece of metal the size of a credit card that prints a QR code associated with the cryptocurrency wallet address set up by Lee’s firm.
On each wallet, beneath the QR code, there is a string of printed encryption code. At the bottom of the card, there’s another string of encryption code that’s coated, which a user must scratch off in order to see.
Only the combination of the two through Ballet’s iOS and Android app, also launched Thursday, will allow the user to see the private key, which will be the same key to access all cryptos on different blockchains that Ballet supports.
“I’ve been working on this hard since January of this year,” Lee said during his presentation. “We’ve gone through six iterations of this hardware wallet design.”
Currently, the firm’s product supports native cryptocurrencies on the bitcoin, litecoin, XRP, and ethereum networks as well as tokens that have been issued on specific blockchains such as all ERC-20 tokens.
To further the goal of fostering mass adoption, Lee said the pre-order price of Ballet will be $29, less than what existing hardware wallets with more advanced cold storage security measures cost. The company now eyes October for shipment after taking in pre-orders.
In a fireside chat at Thursday’s event, Lee said the project started in late December and has raised an undisclosed amount of capital in a seed round backed by Ribbit Capital, a venture capital firm that has invested in crypto exchange Coinbase. Lee said Ballet has 20 staffers worldwide with a global headquarters in Las Vegas.
The company does the pre-setup for each wallet being sold to generate blockchain addresses and the associated private keys, but Lee said the firm deletes the data after production.
“We generated the keys for you in two locations thousands of miles apart,” he said. “[After that] we manufacture ourselves out of the process.”
Lee is mostly known in the crypto industry for running BTCC, one of the earliest crypto exchanges in China. He joined BTCC in 2013 as a co-founder and CEO, two years after the exchange was launched by Yang Linke, and helped the firm secure a $5 million Series A funding round backed by VC giant Lightspeed.
In January 2018, BTCC was sold to an unnamed blockchain investment fund based in Hong Kong, just months after China’s central bank issued a ban on initial coin offerings (ICOs) as well as fiat-to-crypto trading.
Bobby Lee image via Zack Seward 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 Bobby Lee of Ballet, Matt Roszak of Bloq, and Daniel Yan of Matrixport. 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 10 p.m. Eastern/2 a.m. UTC and we will be streaming all day. You can click below to view all of our content from the conference.
A small island country in the Pacific has plans to launch its own government-issued cryptocurrency called the Marshallese sovereign (SOV). It was revealed Wednesday at CoinDesk’s Invest: Asia event that the Republic of the Marshall Islands (RMI) would be introducing the SOV through a forthcoming token pre-sale.
Called the Timed Release Monetary Issuance (TRMI), RMI minister David Paul explained that anyone (regardless of location) can register for the pre-sale on the newly launched website of the SOV Development Foundation. Paul stressed that the actual pre-sale for SOV – in which users buy TRMI units that can later be exchanged one-for-one with SOV units – is not yet live and is still “a work in progress.”
But once launched, Paul estimated it would be 18 to 24 months, or even less, before the real SOV is made available to the public.
“It could be well-vetted enough right before the TRMI that we don’t need the full 18 to 24 months,” Paul said. “You probably only need six months if all the preparation is done beforehand.”
One of the primary reason for doing this pre-sale, according to Paul, is to get a sense of the levels of liquidity and market interest in the SOV cryptocurrency.
“TRMI is really another way of doing an [initial coin offering] but in a more responsible and methodical manner. That’s really the TRMI. You have to look at how to establish liquidity. When you do TRMI, you’re looking at the appetite for the product and how it’s going to [behave] in the markets.”
This is a doubly important concern for government officials in the Marshall Islands given that the launch leaves no room for failure.
“For us, it’s really the reputation and integrity of a country on the line. We’ve got one shot at this,” said Paul.
Apart from gauging market interest, Paul and his team at the non-profit SOV Development Foundation are also focused on addressing regulatory concerns surrounding the SOV raised by other countries and international organizations.
Last September, the International Monetary Fund (IMF) advised against the SOV project saying that the introduction of a cryptocurrency as legal tender in the country could “increase macroeconomic and financial integrity risks.”
Even the U.S. Treasury had told the RMI government “point-blank,” according to Paul, that it didn’t like the SOV. However, following nearly a year of internal discussions, Paul affirmed that U.S. officials are saying this project could work.
Getting the regulators on board is a key prerequisite to launching the TRMI, Paul said, adding:
“A nation cannot rebrand [like a company can]. That’s why we have to do this in such a way that’s different. It has to be transparent. It has to be inclusive. We need to make sure that we work with regulators to ensure that once we launch, they don’t go back and say, ‘Oh, you haven’t done this. You should have done that.’”
David Paul image via CoinDesk LIVE at Invest: Asia 2o19
Ethereum continues to languish against bitcoin. Here’s what it needs to break the downward spiral. | Source: Shutterstock
To say that Ethereum is weakening against the king of cryptocurrencies would be a huge understatement. The ETH/BTC pair is down by nearly 50% year-to-date as it languishes in bear territory for 17 months and counting. The sentiment is so overwhelmingly bearish that some traders are happy to short the crypto pair.
— Suprematic Wassie (ex_hermit) (@GothBtcSinner) September 10, 2019
Nevertheless, big accounts in the Crypto Twitter community are starting to feel that the worst is over for the pair. If you’ve been HODLing, you may want to listen to what the widely-followed DonAlt has to say.
Analyst: Ethereum/Bitcoin Fractal ‘Playing Out Magically So Far’
On July 10th, DonAlt shared on Twitter a chart of the ETH/BTC pair illustrating a fractal that involves one dump to support at 1,500,000 satoshis before a “mega moon” to 20,000,000 satoshis.
I posted this a few months ago but can’t find the post anymore.
Playing out magically so far.
The ETH fractal – dump it into mega moon. pic.twitter.com/UZHZ5Xa8zY
— DonAlt (@CryptoDonAlt) July 10, 2019
The trader then provided an update on August 15th. At the time, the cryptocurrency was hurling towards support of 1,500,000 satoshis. In the tweet, the analyst wrote,
This is starting to get spooky now. 0.015 (1,500,000 satoshis) is really good support for ETH.
$ETH hopium update:
This is starting to get really spooky now.
0.015 is really good support for ETH either way, the fractal is just there for additional confluence.
There is a decent chance we set at least a short/midterm bottom there in my opinion. pic.twitter.com/COsQwarUSr
— DonAlt (@CryptoDonAlt) August 8, 2019
Recently, the trader provided another update. It appears that the pair is respecting support of 1,500,000 satoshis. However, the analyst noted that even though the patterns look similar, a shakeout would be ideal. In the tweet, the trader noted,
How funny would it be if the meme fractal actually played out?
$ETH hopium update:
How funny would it be if the meme fractal actually played out?
Slim chance for that, I’d personally like to see a shakeout to call a bottom.
That said it still looks very similar. pic.twitter.com/8e0RNR9zAO
— DonAlt (@CryptoDonAlt) September 7, 2019
DonAlt is not alone to have a bullish stance on the cryptocurrency. “Trader Max” (also known as Bitcoin Jack), the lead analyst at Bravado Trading, supports DonAlt’s sentiments. The trader spoke to CCN. He said:
Ethereum has found a bear market bottom with an ending fifth wave diagonal. Demand sits in the 0.0141-0.0163 range and near term targets are 0.0240 and if broken 0.028, 0.0312 and 0.035.
Bear market bottom scenario for ETH/BTC | Source: Bitcoin Jack
Fundamental Developments Could Catalyze the Mega Moon
The mega pump to 20,000,000 satoshis predicted by DonAlt will likely not happen unless there’s a strong fundamental driver. Big price movements should be propelled by big fundamental changes. This is where Ethereum 2.0 might come in.
According to the June 13th Ethereum Implementers call, the first stage of transition to version 2.0 should take place on January 3, 2020. Phase zero is the name of this stage.
According to a Consensys article, Phase zero would be the foundation of Ethereum 2.0. It will be the most complex part of the transition as it accounts for the management of the proof-of-stake (POS) protocol as well as the coordination of independent parallel shards.
Roadmap to Ethereum 2.0 | Source: Etherworld
The transition to the POS model will likely ignite an Ethereum arms race as validators will receive rewards in proportion to the coins they stake. More importantly, those who would like to become validators will have to deposit a minimum of 1,500 ETH. This figure is a strong catalyst for DonAlt’s mega moon scenario.
In addition, The Crypto Oracle spoke with CCN. The researcher thinks that Ethereum 2.0 can act as a driver of growth.
Ethereum 2.0 is set to release early next year. I’m sure that it will give Ethereum some momentum.
With just a few months before the release of Ethereum 2.0 and Bitcoin Jack calling for a bear market bottom, DonAlt’s mega moon fractal doesn’t sound so far-fetched.
Last modified (UTC): September 11, 2019 9:21 PM
Bitwise has tapped the Bank of New York Mellon to serve as the administrator and transfer agent for its proposed bitcoin exchange-traded fund (ETF).
The company filed an amendment to its Bitwise Bitcoin ETF S1 form on Wednesday, listing BNY Mellon as its administrator and ETF custodian, Foreside Fund Services as its marketing agent and Cohen & Co. as an auditor. The company has not yet named a bitcoin custodian for the trust its ETF would be built on top of.
Bitwise chief operating officer Teddy Fusaro told CoinDesk that “an ETF’s service providers play a critical behind the scenes role in supporting any fund,” adding:
“We’re pleased to disclose experienced and professional service providers from the traditional ETF ecosystem we intend to work with to support the proposed product.”
BNY Mellon has taken an active role in the cryptocurrency space, particularly in recent months. The bank has partnered with Bakkt, the Intercontinental Exchange (ICE) subsidiary warehousing ICE’s bitcoin futures contracts, to provide “geographically-distributed” private key storage, and was more recently tapped to act as the administrator and transfer agent for shares of the VanEck SolidX Bitcoin Trust being sold to institutions.
Bitwise also filed an opinion on Wednesday which says the ETF should be taxed like a Grantor Trust (similarly to the SPY and gold ETFs). In other words, the trust would be taxed similarly to the underlying asset – bitcoin – and therefore be taxed as property.
This opinion was supported by Vedder Price P.C., a New York law firm.
Bitwise filed for the ETF with NYSE Arca in January 2019, hoping to provide the first such fund to U.S. customers. However, the Securities and Exchange Commission (SEC), which oversees such products in the country, has long been hesitant to approve ETFs based around cryptocurrencies.
A decision on Bitwise’s proposal has been postponed a number of times, with a final decision expected by Oct. 13.
“We continue to work towards answering all of the significant questions that the SEC needs answered before they are ready to approve a bitcoin ETF,” Fusaro said.
Bitwise Global Head of Research Matthew Hougan image via CoinDesk archives
Bitcoin has once again dropped to its key support level of $10,000, although each minor dip below this level over the past 24 hours has been met with relatively strong buying pressure. If BTC is unable to surge from this level, however, it could once again revisit its historically strong support region that currently exists in the lower $9,000 region.Analyst are now noting that Bitcoin is likely to surge one more time before it drops decisively below $10,000, but if history repeats, the next drop could be met with significant buying pressure that sparks the next uptrend.Bitcoin Dips Below $10,000 as Sellers Build StrengthAt the time of writing, Bitcoin is trading down nearly 2% at its current price of $10,070, which marks a slight recovery from its 24-hour lows of just below $10,000.Over the past three months, BTC has been facing a bout of consolidation, with each dip towards $9,000 being met with strong buying pressure, while each movement towards $11,000 has resulted in strong and swift rejections.This wide trading range has shown no signs of breaking anytime soon, although some analysts are pointing towards the imminent release of Bakkt’s physically settled BTC futures product as a potential catalyst for future gains.The Cryptomist, a popular crypto analyst on Twitter, recently shared her thoughts on BTC, explaining that she expects it to break upwards towards $10,400 before facing another swift rejection that sends it to below $10,000.“$BTC: With the 1hr RSI forming a rising wedge, I expect perhaps one more touch on the rising wedge. With 2hr time frame RSI, I expect a move upwards towards breakout within 16 hours or so. My target remains the 10.4k region,” she explained.$BtcWith the 1hr RSI forming a rising wedge, I expect perhaps one more touch on the rising wedgeWith 2hr time frame RSI, I expect a move upwards towards breakout within 16 hours or soMy target remains the 10.4k region pic.twitter.com/NXSOFLwo8u— The Cryptomist (@TheCryptomist) September 11, 2019Could a Break Below $10,000 Spark the Next Bull Run? Although it seems counterintuitive that a break below $10,000 could ultimately spark the next massive upwards movement, one analyst is noting the BTC’s current descending triangle could result in a downwards break that is ultimately followed by a massive upwards surge – which is a pattern seen in previous years.B.Biddles, another popular crypto analyst on Twitter, spoke about this possibility in a recent tweet, pointing to a similar pattern that was seen in 2017.“$BTC Descending Triangle at the peak of a bull run, 01 June 2017 – 30 July 2017 (59 days). Not hopium, just showing that it’s foolish imo to think anyone has a clear sense of what happens next (very short-term movements aside),” he noted while pointing to the below chart.$btc Descending Triangle at the peak of a bull run, 01 June 2017 – 30 July 2017 (59 days).Not hopium, just showing that it’s foolish imo to think anyone has a clear sense of what happens next (very short-term movements aside) pic.twitter.com/m8TgrDfd61— B.Biddles (@thalamu_) September 10, 2019As the week continues on and BTC nears the apex of the massive descending triangle that it is trading within, it is highly likely that its fate for the rest of 2019 will soon grow increasingly clear.Featured image from Shutterstock.
The U.K. arm of cryptocurrency exchange Coinbase has reached a settlement with a digital asset fund manager whose stolen bitcoin worth over a million dollars was transferred to the exchange.
According to Law360, Coinbase U.K. struck a deal with the CEO of Alphabit Liam Robertson to discontinue the legal dispute that had been raging for about two months.
Liam Robertson, CEO of Alphabit
The legal dispute started after Robertson lost bitcoin worth over $1 million in an email phishing attack. This occurred after Robertson agreed to invest over 100 bitcoin in an algorithmic trading fund. However, hackers picked up on the plan before he could invest and tricked him into sending the bitcoin to their wallet address.
Blockchain Technology Saves the Day
A blockchain investigation after the theft was discovered found that 80 of the bitcoin had been routed to Coinbase. Another 15 were sent to peer-to-peer exchange LocalBitcoins while 5 were sent to an offline wallet. At the time, bitcoin was trading at over $11,000 meaning the total value of the stolen coins was over $1.1 million.
Robertson subsequently sought an asset preservation order and it was granted last month. The order prohibited Coinbase from transferring the stolen bitcoin. Additionally, Robertson obtained a Bankers Trust Order which allowed the cryptocurrency exchange to disclose who controlled the wallet containing the 80 bitcoin without flouting its client confidentiality agreements.
Precedent-Setting for Bitcoin?
Rulings made in the case, Roberts v. Persons Unknown, are likely to assist in setting legal precedents on cryptocurrency matters in the U.K. This is especially with regards to establishing whether bitcoin is legal property. It could also assist cryptocurrency fraud victims.
.@coinbase Settles Bitcoin Asset Freeze Dispute – settlement out of the UK .. the outcome “may help fraud victims reclaim their stolen property by establishing bitcoin as a specific asset or sum of money.” – @Law360 #fintech #cryptocurrency https://t.co/LUWInZiXGH
— Philip Rosenstein (@parosenstein) September 10, 2019
This comes at a time when it is estimated that of all cryptocurrency theft cases, around 13% of them were carried out using phishing attacks, per Investopaedia.
According to Ciphertrace, the first quarter of the year saw cryptocurrency thefts reach $356 million. This would translate to around $47 million being lost through phishing attacks.
Last modified (UTC): September 11, 2019 9:16 PM
The President of the United States has once again called on the Federal Reserve to significantly lower interest rates. For Dan Tapiero, of DTAP Capital, such a “debasement of the dollar” would benefit Bitcoin and other hard, store-of-value assets.Tapiero believes that Trump hopes to drive economic activity by effectively charging customers to hold money in the relative safety of banks or in bonds prior to the 2020 Presidential Election. However, such policies may also encourage more people to look for alternate means to store their wealth.Bitcoin Doesn’t Do Negative Interest Rates…When growth slows in an economy, an increasingly popular method used by central banks to encourage fresh spending is to cut interest rates. Typically, banks make interest payments to those storing cash with them. A high interest rate will encourage saving and a low one should encourage spending and borrowing, driving new economic growth.Negative interest rates were first used in the aftermath of the 2008 economic crisis in Europe. In 2014, the European Central Bank cut interest rates below zero for the first time. The move was a response to low inflation and a severe debt crisis. Since then, other central banks, including that of Denmark, Switzerland, and Japan have all introduced negative rates.Most economists predicted that Donald Trump would want lower interest rates going into the 2020 Presidential Election. However, he has today tweeted encouragement for the Federal Reserve to lower rates to below zero:The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term. We have the great currency, power, and balance sheet…..— Donald J. Trump (@realDonaldTrump) September 11, 2019Investor and Bitcoin proponent Dan Tapiero believes that the negative interest rates proposed by Trump to stimulate growth going into his election campaign may directly benefit Bitcoin.The rationale behind Tapiero’s argument is that people who were quite content to store their wealth at a bank are encouraged to do something else with their cash. Such a “debasement of the US dollar” may drive people towards “alternative stores of value”, says Tapiero.First President to call for negative interest rates. Medium term this is direct call for a debasement of the US dollar in an attempt to create excess growth into 2020 election. Federal Reserve “boneheads.” Gold and Btc should benefit as alternative stores of value. https://t.co/gdT0RXkn1P— Dan Tapiero (@DTAPCAP) September 11, 2019Tapiero mentions both Bitcoin and gold specifically in his Tweet. Although his position seems sound on a theoretical basis, it rests largely on confidence in Bitcoin that is probably still lacking.A central bank will usually introduce negative interest rates in response to an economy becoming risk averse. At the moment, it seems premature that US investors will see Bitcoin as a true safe-haven and start to pour money into the digital asset in response to any impending Federal Reserve attack on interest rates.Although Bitcoin possesses qualities necessary for it to be deemed an effective store-of-value asset, it seems far fetched to believe that there is enough collective trust for the asset to become a viable alternative to holding money at a bank just yet. In the eyes of the world (and rightly so), it’s still a huge risk asset. It offers something so radically different from any other form of money. Distrust and scepticism is natural. However, Bitcoin can overcome these hurdles by just continuing doing what it is doing.It’s important to remember that this is still very early days in the Bitcoin story. Provided the network continues to function as it has been doing, public trust in the cryptocurrency will grow. As trust grows, Bitcoin’s market capitalisation will swell. This will make it even more effective as a means of storing value. A larger market capitalisation will eventually mean that a lot more money is needed to move the price in the kind of swings synonymous with cryptocurrency markets today. Related Reading: Can Bitcoin Bulls Fend Off a BTC Drop to $6,000? Yes, and Here’s WhyFeatured Image from Shutterstock.