The weekend brought a little hopium as Bitcoin prices topped $8,200 briefly, however the doom and gloom has returned on Monday morning as BTC has dumped back into the $7k region again. The longer term chart indicators are mounting up and they are all screaming bear market.Bitcoin Slides Below $7,800Following a weekend of relative stability above $8k BTC has started to slide again as we start another week in crypto land. According to Tradingview.com the decline to $7,760 a few hours ago marks a 5 percent loss over the past 24 hours.BTC prices one hour chart – Tradingview.comBitcoin has now retouched its five month low and the technical indicators are looking ominous. The weekly candle closed on a red doji as pointed out by Josh Rager, however the indecisive formation is likely to be overruled by the bears this week.$BTC – That weekly doji candle pic.twitter.com/8GSFtckyei— Josh Rager 📈 (@Josh_Rager) October 6, 2019The fourth red weekly candle in a row has not happened for two years as volumes continue to decline. Additionally, BTC is now firmly below the 200 day moving average and this does not look good for the immediate future.Trader ‘Cryptonaire’ pointed out that this is usually a sign of prolonged consolidation or further declines.“NEVER has $Btc gone above or below the 200 MA and had an immediate pullback. There’s a 20% minimum move before going in opposite direction even if it’s just a wick,”Fellow trader and analyst ‘Crypto Hamster’ made some similarities between the 2018 final dump into crypto winter.“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now,”It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now (the scale is different, of course).$BCT $BTCUSD #bitcoin pic.twitter.com/HFt0DfydlD— CryptoHamster (@CryptoHamsterIO) October 6, 2019While a dump to $3k is still a long way off, $6k is looking closer every day as the bears gather strength. The negative sentiment for Bitcoin has been reflected in its market dominance which has fallen back below 70 percent. As reported by NewsBTC yesterday, this could be good news for the altcoins but at the moment they too are falling back on red Monday.Altcoins Also in PainEthereum has dumped back below $170 as it blindly follows the declines of its big brother. The ETH and BTC charts have been virtually identical over the past week or so as the world’s decentralized computer fails to decouple from its leader.Ripple’s XRP is holding above $0.25 but it has shown nothing significantly bullish for most of this year and will take a monumental announcement or altcoin wide recovery to move higher.Tether has topped BCH to take fourth place in terms of market cap as it trades at a slight premium while altcoins are dumped. At the time of writing only Chainlink is in the green and altseason is still a long way away.Image from Shutterstock
Archives for October 6, 2019
Ripple price is gaining bullish momentum above the $0.2600 resistance area against the US dollar.The price is up around 5% and it recently broke the $0.2650 resistance area.There is a connecting bullish trend line forming with support near $0.2550 on the hourly chart of the XRP/USD pair (data source from Kraken).The price remains supported on dips and it could continue to rise towards the $0.2720 resistance.Ripple price is rallying towards $0.2720 against the US Dollar, while bitcoin and Ethereum are sliding. XRP price might continue to rise towards $0.2720 or $0.2750.Ripple Price AnalysisThis past week, ripple price made many attempts to surpass the $0.2620 and $0.2650 resistance levels against the US Dollar. However, the XRP/USD pair failed to climb above $0.2650 and traded in a range. Finally, the bulls had an upper hand and the price rallied recently after forming a base near $0.2550. There was a sharp rise above the $0.2600 resistance and the 100 hourly simple moving average.Moreover, the price broke the $0.2620 and $0.2650 resistance levels. It opened the doors for more gains and the price traded towards the $0.2700 level. A high was formed near $0.2691 and the price is currently retreating from highs. An immediate support is near the $0.2650 level. It coincides with the 23.6% Fib retracement level of the recent rally from the $0.2514 low to $0.2691 high.On the downside, there are many supports near the $0.2620 and $0.2600 levels. Additionally, the 50% Fib retracement level of the recent rally from the $0.2514 low to $0.2691 high is near $0.2600. More importantly, there is a connecting bullish trend line forming with support near $0.2550 on the hourly chart of the XRP/USD pair. Therefore, dips from the current levels might find bids near $0.2620 or $0.2600.The main support is near the $0.2550 level (the previous support base). On the upside, an immediate resistance is near the $0.2700 level. If there is an upside break above $0.2700, the price could test $0.2720 or even $0.2750 in the near term.Looking at the chart, ripple price is clearly surging with a positive bias above $0.2620. There are high chances of it extending gains above the $0.2700 and $0.2720 resistance levels in the coming sessions. Conversely, if there is a downside correction, the bulls might protect the $0.2650 and $0.2620 levels (the previous resistance levels).Technical IndicatorsHourly MACD – The MACD for XRP/USD is currently gaining pace in the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently well above the 60 level, with bullish signs.Major Support Levels – $0.2650, $0.2620 and $0.2550.Major Resistance Levels – $0.2700, $0.2720 and $0.2750.
ETH price is declining and it recently broke the $172 and $170 support levels against the US Dollar.The price is trading in a bearish zone and it could slide further towards the $160 support.There is a major bearish trend line forming with resistance near $174 on the hourly chart of ETH/USD (data feed via Kraken).The pair might correct a few points higher, but upsides might be capped near $172 and $175.Ethereum price is showing bearish signs versus the US Dollar, while bitcoin is declining. ETH price might continue to move down and it could test $160.Ethereum Price AnalysisRecently, Ethereum failed to surpass the $180 resistance area against the US Dollar. As a result, ETH price started a fresh decline below the $175 support area. Moreover, there was a close below the $175 support and the 100 hourly simple moving average. The price even broke the $172 and $170 support levels. A new weekly low was formed near $167 and the price is currently consolidating losses.An immediate resistance is near the $170 level. It coincides with the 23.6% Fib retracement level of the recent decline from the $177 high to $167 low. The main hurdles for the bulls are near the $172 and $175 levels. Moreover, there is a major bearish trend line forming with resistance near $174 on the hourly chart of ETH/USD. An intermediate resistance is near the 50% Fib retracement level of the recent decline from the $177 high to $167 low.Therefore, an upside correction from the current levels might face sellers near the $172 and $175 levels. A successful close above the $175 level and the 100 hourly SMA could open the doors for a recovery towards the $180 and $185 resistance levels.If there is no recovery above $175, the price might continue to move down. An immediate support is near the $165 level. A downside break below the $165 support could set the pace for a drop towards the $160 support area in the near term.Looking at the chart, Ethereum price is clearly trading in a bearish zone below the $175 level and the 100 hourly SMA. To recover, the price must settle above the $175 pivot level. If not, there is a risk of a downside break below the $165 and $160 support levels. The main support is near the $155 and $154 levels.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly reducing its bearish slope.Hourly RSI – The RSI for ETH/USD is currently near the 40 level, with no major positive signs.Major Support Level – $165Major Resistance Level – $175
Despite the harrowing price drop seen in late September, institutions are expecting for the Bitcoin (BTC) price to soon head higher — at least for institutions involved in the Chicago Mercantile Exchange (CME) futures market.According to a recent Commitments of Traders report shared by Romano, traders that identify as either “asset managers” or “institutions” are currently 69.31% long on the CME’s Bitcoin futures, and 30.69% short by the number of contracts open.Romano noted that just two weeks ago, when Bakkt launched, the same report said that the aforementioned demographic was net short. Of course, Bitcoin crashed in the days that followed. This, he claims, is a sign that institutions “have a good track record for the right directional trade”.COT Report: Bitcoin CME
Futures Only Positions as of 2019-10-01
CFTC Code: #133741Asset managers/Institutional net long
69.31 % long and 30.69% short(They were net short at the day of the bakkt launch. They have a good track record for the right directional trade) pic.twitter.com/utohW7wMlD— [ Romano ] (@RNR_0) October 6, 2019It is important to note that while institutions and asset managers are net long on the CME’s Bitcoin futures contracts, leveraged funds, which use more aggressive investment techniques, are leaning in the opposite direction. Romano did not comment on that facet of the CME’s COT report.Related Reading: More Downside in Bitcoin Before Conservative Buying Opportunity, Say AnalystsBitcoin Bull Case Gains TractionAlthough Romano reminded his followers that institutions being net long isn’t a conclusive sign that Bitcoin will head higher in the near future, there is evidence to suggest that cryptocurrencies may soon rebound.As reported by NewsBTC previously, recent price action, especially the capitulation from $10,000 to $7,700, is structurally similar to what took place in November and December of 2018, during which Bitcoin fell from $6,000 to $3,000 in a short period of time. Crypto Hamster recently wrote:“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now.”What he is implying is that Bitcoin may soon break to the upside, having bottomed in the recent flash crash.Also, an analyst recently argued that Bitcoin’s four-hour chart looks “promising”, with there being an uptrend forming for both the Relative Strength Index and the Moving Average Convergence Divergence (MACD) — a sign that they claim is an indication that “we may have a bottom”.Related Reading: Too Obvious? Current Bitcoin Price Action Resembles $3,200 BottomFeatured Image from Shutterstock
Ethereum’s price action has been closely tracking that of Bitcoin and the aggregated crypto markets, but its recent downtrend may not have been simply the result of weak price action, as data suggests that ICOs have been selling a significant amount of their ETH in recent times.The treasury sale of ETH from ICOs could be a significant force that has been suppressing Ethereum’s price as of late, and these ICOs still hold a massive amount of the cryptocurrency – which could mean that the steady stream of selling pressure will continue for the foreseeable future.Are ICOs the Source of Ethereum’s Recent Losses? At the time of writing, Ethereum is trading down just under 1% at its current price of $173.70, which marks a notable drop from its recent highs of over $220 that were set in mid-September.While looking towards ETH’s year-to-date highs, it becomes even more clear as to just how bearish its recent price action has been, as it is currently trading down nearly 50% from its late-June highs of nearly $350.In a recent research report published on Diar, data elucidates that Ethereum’s 77% drop from its early-2018 highs has coincided closely with major ICO projects selling a notable amount of the ETH that they raised from token sales during the ICO mania in 2017 and early-2018.“Ethereum has dropped 77% in price from the start of last year when ICO treasuries saw massive activity with withdrawals being the highest they ever were this year,” Diar explained.They further noted that last November and December were the largest periods of ETH sales from major ICOs, which coincided closely with the bottom of the market.Will ICOs Continue Putting Pressure on ETH?It is important to note that although ICOs have already sold off a significant amount of their ETH holdings, data shows that they still hold nearly half of the Ethereum that was raised from their token sales, with their January of 2018 wallet balance sitting at over 4.6 million ETH, while their current wallet balance sits at over 2.2 million ETH.Assuming that the markets continue to express increased volatility, it is highly probable that projects will continue to sell off their Ethereum treasuries to attempt to preserve their capital, which could perpetuate any downtrend experienced by the cryptocurrency in the near-to-mid term.Featured image from Shutterstock.
Rachel-Rose O’Leary is a reporter at CoinDesk covering how cryptocurrencies are used in areas of economic, social and political unrest. This article is part of her series from Rojava, Syria.
As Islamic State (ISIS) sought to dominate large parts of Syria and Iraq, it used a subtle weapon to go with the car bombs and suicide attacks: money.
The self-declared caliphate aimed to unify the world under a militant interpretation of Islam. It created a highly efficient, hyper-violent society inside Iraq and Syria, coupled with an economic experiment – what I call “ISIS-coin.”
Consisting of 10 coins ranging in value from nearly a thousand dollars to pennies, ISIS sought to replace US, Iraqi and Syrian banknotes with purpose-built coins backed by the gold, silver and copper standard.
At the time, ISIS was sitting on 34,000 square miles of oil-rich territory. By trading oil using its own currency, the dinar, ISIS planned to destabilize the US economy by forcibly decoupling the dollar from the oil business. (The petro-dollar system, which ISIS refers to as America’s “Achilles heel.”)
The dinar were modeled on coinage from a medieval Islamic empire named the Umayyad Caliphate, the leader of which – a man named Abd al-Malik ibn Marwan – issued coins to economically connect Muslims who were scattered across the Middle East.
In 2015, the dinar was made compulsory for civilians living under ISIS control. At its peak, ISIS controlled 10 million people across Iraq and Syria – making the ISIS dinar among the most ambitious economic experiments in modern history.
While living in the autonomous Rojava, in northern Syria, I met with an ISIS prisoner, Mohammed Najjar, in a facility operated by the Syrian Democratic Forces in Northern Syria. Najjar refused to be photographed or filmed. He was nervous about my sound recorder, and asked me not to publish his name for fear of repercussions from the jihadist group (Mohammed Najjar is a pseudonym).
Najjar worked in oil: ISIS’s most lucrative export and the heart of the dinar experiment. He laughed as I placed a silver durham down on the table in front of him. It’s a wide coin, about a centimeter in diameter. I is decorated with Arabic calligraphy – a verse from the Hadith that praises hard work and charity.
“In Islamic State, this was a failure,” he said, grinning, “It didn’t work.”
In a 2015 propaganda film announcing its release, called the ‘The Return of the Gold Dinar,’ ISIS’s monetary experiment is described as a sequel to the 2001 attacks on the World Trade Center – and a new weapon in an all-out war against the US economy.
“You’ve seen the documentary, right?” Najjar asks with a twinkle in his eye. “The plan was to destroy the global economy.”
The sales pitch
Najjar joined ISIS in October 2013, months after its formation.
With a background in petroleum studies, he spent his days working among oil fields, the heart of ISIS’s economic strategy.
Controlling many oil-rich areas in Iraq and Syria, ISIS had a lucrative business in selling oil to neighboring clients, including Damascus, the Iraqi government, and Turkish-backed rebels, which, according to my source, would then smuggle the oil into Turkey.
“It was the boom,” Najjar said, “Islamic State was making about $60 million a month.”
The problem for ISIS was that all that trade was executed in US dollars. So in spite of the group’s declared war on US hegemony, its economy was actually facilitating US dollar dominance.
Enter the dinar – or, as ISIS propaganda describes it: “the return of the ultimate measure of wealth for the world: gold – as the [caliphate] surges into the financial sphere.”
First, it was introduced in the oil sector – ISIS’s most lucrative export. To buy oil from ISIS, countries had to exchange their dollars for dinar.
ISIS then introduced the dinar to civilians within the Islamic State, slowly at first, with merchants giving change in the new dinar as opposed to banknotes.
By late 2015, the currency became compulsory. “It was prohibited to use the Syrian government currency. It was prohibited to use anything other than the ISIS dinar in all the Islamic State areas,” Najjar said.
The Islamic State was littered with exchanges, he explained, which would swap ISIS dinar for dollars and other currencies, allowing people and businesses to trade with one another.
This came with other advantages for the Islamic State.
While the market price for a 4.25 gram gold dinar was around $160, according to Najjar, it could retail locally at $190. That meant a profit of $30 per dinar for ISIS: a colossal sum when its oil trade was peaking at 150,000 barrels a day.
The ISIS dinar wasn’t just a money grab.
It was also an attempt to create an economy based on Islamic principles. And that’s because, in Sharia law – the religious legal code underpinning Islam – certain kinds of economic practices are forbidden.
Sharia puts a ban on interest – what is called riba – which, according to some interpretations, rules out many conventional banking practices. Certain kinds of debt are also forbidden, because transactions must be backed by an underlying asset, like gold.
The dinar experiment had its roots in the teachings of Islamic scholars such as Sayyid Abdil A’la Mawdudi, who proposed a middle-ground alternative to capitalism and communism, and emphasized the importance of zakat, or charity. ISIS’s unique interpretation of zakat allowed them to fund much of their state-building effort through the contributions of civilians.
The New York Times reported that this tax formed the basis of the ISIS economy, stating that profit from zakat far outweighed oil sales.
But Najjar vehemently denied this point, calling it “lies” and stating that the people in ISIS occupied territories were too poor to contribute in any meaningful way.
That’s notable because, in propaganda, ISIS describes conventional banking practices as “satanic,” and proposes the dinar as an antidote to the “fraudulent and riba-based financial system of enslavement orchestrated by the Federal Reserve in America.”
US thinkers, such as noted goldbug Mike Maloney, conspiracy theorist Edward Griffin and libertarian politician Ron Paul are quoted directly in ISIS propaganda. In rhetoric not unfamiliar to bitcoin enthusiasts, the thinkers criticize the inflation of the US dollar, the abandonment of the gold standard, and the dominance of the dollar globally.
“The US is playing a game in controlling the world by using the dollars,” Najjar said. “Oil you have to buy using dollars. Internationally you have to buy everything using dollars. The dinar was more Islamic. Dinar has a real value, gold has a real value.”
Why it failed
Despite the successful launch of the dinar, ISIS remained vulnerable to economic attack. When, in 2016, the US began a bombing campaign against ISIS’s oil fields, the so-called state began to crumble because it was cut off from its most lucrative resources.
Najjar says the dinar worked better as a means of exchange in the oil industry than an everyday currency for ISIS residents and businesses.
“We used to get it in dollars. Then they changed it to the dinar and that’s when the problems started. Traders stopped bringing in products because they noticed the dinar was not working, so they started retreating from it,” he said.
With demand non-existent outside of the Islamic State, the currency began to exchange for less than it cost to produce.
“The problem was always in buying products. The value of the silver dinar in particular was so low. So when you go to a trader to buy anything they won’t accept this, they say ah, we’re not accepting this. Or he put the price higher,” Najjar said.
Because of its weight – the largest coin is worth nearly a thousand dollars at the time of writing – the gold dinar were coveted by traders, and were often melted down or resold on the market, effectively draining out the gold-based economy.
Not quite bitcoin
Given the restrictions of a Sharia-compliant financial system, including the prohibition on riba, cryptocurrencies have been touted as potential alternatives.
CoinDesk recently reported that the Ethereum Foundation, the non-profit that oversees the management of the ethereum platform, was courting investors from Wahhabist Saudi Arabia, for example.
But Najjar said that, while he had “heard of bitcoin,” he never heard of it being used by ISIS.
A SDF intelligence official confirmed that ISIS was dependent on the US dollar for international trade. Other terror organizations have experimented extensively with crypto.
ISIS lost its last territory to US-backed SDF forces in May. At the time, US forces are said to have collected some $2.1 billion worth of gold – and intelligence officials are hoping to discover more.
“Whenever I go to an interview like this they ask me ‘where is the gold? Where is ISIS hiding it?’” Najjar laughed.
In North Syria, the dinar has fallen out of circulation. Some are passed around between SDF fighters as war trophies. These are mostly copper and silver – the more expensive currencies like the gold dinar have largely been melted down. Reselling the currency is illegal and those in circulation are seized by authorities, aside from a handful kept as souvenirs.
According to Najjar, the failure of the dinar – and Islamic State more broadly – was because it failed to implement Sharia correctly.
“Islam says take from the rich and give it to the poor,” he said, “It was not properly done. It was not implemented properly, it wouldn’t fall. I see it like this.”
Images from ‘Return of the Gold Dinar’
After experiencing a long period of sideways trading within the lower-$8,000 region, Bitcoin (BTC) has once again extended its downwards momentum and has begun moving lower today as it has broken below $8,000 on most major exchanges.This extension of its downwards momentum has led most analysts to target lower-lows in the near-term, but BTC does still have one last level of near-term support before it posts a decisive break below the recently established trading range that it has been caught within for the past several days and weeks.Bitcoin Breaks Below $8,000 on Most Major Exchanges as Bulls Falter At the time of writing, Bitcoin is trading down roughly 1% at its aggregated price of $8,010 across all exchanges, although it is important to note that its price is already trading below $8,000 on many individual exchanges.Bitcoin’s bearish price action in recent times marks an extension of the bearishness that it incurred when it broke below $10,000 late last month, and BTC has failed to post any noteworthy upwards momentum in the time since this massive drop occurred.In the near-term, it is highly likely that BTC continues to see insurmountable selling pressure, as the crypto’s inability to garner any sustainable upwards momentum points to an underlying bearishness for the cryptocurrency.The Cryptomist, a popular crypto analyst on Twitter, told her over 40k followers that she expects the crypto to incur notable volatility in the week ahead, which could potentially lead to a leg up before it plummets to fresh multi-month lows.“$BTC: Been ranging this week but expecting action this upcoming week. I still think there is new lows coming but perhaps leg up first. Potential falling wedge here present on the 4hr. If valid we could see break sooner than later,” she explained.$BtcBeen ranging this week but expecting action this upcoming week
I still think there is new lows coming but perhaps leg up firstPotential falling wedge here present on the 4hr.
If valid we could see break sooner than later pic.twitter.com/XYRVbIy4ke— The Cryptomist (@TheCryptomist) October 6, 2019Analyst: BTC Nears Range Lows as Sellers Build Strength Mitoshi Kaku, another popular crypto analyst on Twitter, explained in a recent tweet that BTC has been caught within a trading range between $7,900 and $8,250, with a break below its range-low support potentially leading to a period of capitulation.“Early in the week when I opened the doors of the W&P Group, the system signaled a range for $BTC, that gave us the opportunity for a few nice scalps! It was a long wait since 9/21, but as I always say: It is time to pay attention,” he explained in a recent tweet.Early in the week when I opened the doors of the W&P Group, the system signaled a range for $BTC, that gave us the opportunity for a few nice scalps! 🙌 It was a long wait since 9/21, but as I always say: It is time to pay attention”. #CryptoIkagi – https://t.co/vIq6PMYg2A pic.twitter.com/Jet1XpgUGp— Mitoshi Kaku 👨🏻🚀 (@CryptoSays) October 6, 2019The coming days and weeks will likely prove to illuminate how Bitcoin will trend throughout the rest of 2019, as an inability to post any strong bounce in the near-term could spell trouble for the crypto’s mid-term trend.Featured image from Shutterstock.
The past few months haven’t been kind to Bitcoin bulls. Since peaking in June, the cryptocurrency’s price has fallen from $14,000 to the $7,700 low set last week.While the macro backdrop is evidently different, as are the fundamentals of the cryptocurrency market, many analysts have argued that the recent collapse in the Bitcoin price was a microcosm or fractal of 2018’s bear market.Their assertion may actually have bullish implications for Bitcoin.Related Reading: Crypto Market Death Cross Inches Closer, Will The Bear Market Return?Reminiscent of 2018’s BottomIn late-September, the price of BTC tumbled off a proverbial cliff, falling from $10,100 to under $8,000 in a week, as bears finally won a multi-month tug-of-war against the bulls.While seemingly random, a number of analysts have noted that this seeming capitulation was similar to what took place in November and December of 2018, during which Bitcoin fell from $6,000 to $3,000 in a short period of time. Crypto Hamster recently wrote:“It is too obvious to be true, but I have to admit that the drop from 6k to 3k and the following price action indeed looks very similar to what we have now.”What he is implying is that Bitcoin may soon break to the upside, having bottomed in the recent flash crash.Dave the Wave has corroborated this fractal, recently posting the chart below, which shows that Bitcoin’s entire price action from the $14,000 top until now resembles all the price action that took place in 2018.Here is the whole movement mapped keeping the same proportions suggesting the bottom is in. Though an interesting comparison, I don’t think so useful here in predicting the bottom. pic.twitter.com/sv6kHlX2JC— dave the wave (@davthewave) September 30, 2019The above analyst, however, did mention that he believes that the 2018 bear market fractal isn’t so useful in predicting the bottom, making reference to his $6,800 Bitcoin price target still on the table.Related Reading: Analyst: Bitcoin Likely to Move Towards $7,600 as Bulls FalterBitcoin Price Reversal Starting?Regardless, there are technical analyses to suggest that a price reversal may be inbound off this seeming bottom. An analyst recently wrote that Bitcoin’s four-hour chart looks “promising”, with there being an uptrend forming for both the Relative Strength Index and the Moving Average Convergence Divergence (MACD) — a sign that they claim is an indication that “we may have a bottom”.That’s not all. Per previous reports from NewsBTC, the crypto market’s total capitalization recently printed a bullish divergence on its three-day chart.As he depicted in the tweet that can be seen below, the three-day Stochastic has started to trend higher, seeing higher lows, as the market cap has entered a brief downtrend, seeing lower lows — a bullish divergence that demonstrates that bears are losing control to bulls. Bullish divergences can often mark the end of a downtrend.Related Reading: Fractal: Bitcoin Price Likely to Hit $7,500 Before Rally to New HighsFeatured Image from Shutterstock
Bitcoin is better than the banking system for a ton of reasons. You go to your neighborhood ATM to take out money that belongs to you, but the bank that has kept your deposit to disperse loans charges you a fee for using the ATM. And that fee has only increased with time:
In the midst of all of this greediness of the banking system, cryptocurrencies such as bitcoin are our only ray of hope.
Banks have become greedier
The establishment might shun bitcoin for being an unregulated and speculative asset, but they seem to be forgetting that the flagship cryptocurrency is originally meant for executing peer-to-peer transactions quickly, unanimously, and at low costs.
Banks, on the other hand, have a different agenda of fleecing customers. According to a report by Bankrate, the average fee to use an ATM is inching toward the $5 mark. Two decades ago, that fee stood around $2.
ATM withdrawals have been getting costlier as banks get greedy. | Source: Bankrate
But that’s not the only way banks are burdening their customers with higher charges. The monthly service fees for maintaining an interest-bearing account has increased to $15.05, up from less than $10 back in 1998. Similarly, the cost of maintaining a non-interest paying account is also inching up.
The cost of maintaining accounts in banks is going up. | Source: Bankrate
So, while banks are probably making merry with the money you have deposited by lending it to big companies, the fees that you pay are eroding your wealth. The fee for other services such as remittances is even higher.
According to The Simple Dollar, banks in the U.S. charge a minimum of $20 for a domestic wire transfer. Some banks are known to charge as much as $40 for a single transfer. What’s more, many banks will charge you a fee for receiving money in your account. So how do we save ourselves from paying such a big cut to the banks from our hard-earned money? The answer is cryptocurrencies such as bitcoin.
Bitcoin is the hero we need
Banks charge you a bomb for wiring money, but using bitcoin will help you avoid that. The average bitcoin transaction fee has been dropping over the past few months and sits well below $1, as per BitInfoCharts.
The average transaction fee of bitcoin transfers has come down. | Source: BitInfoCharts
According to Longhash.com, a wire transfer of $1,000 from the U.S. to Hong Kong could cost $56 and take a few days to go through. Doing the same through bitcoin will cost $18 and the transaction will be through in an hour. Not to mention that in Hong Kong, locals can’t withdraw any cash whatsoever from ATMs that have run dry.
So it is clear why bitcoin is the need of the hour as banks nowadays have only one agenda – to have our cake and eat it too.
Last modified (UTC): October 6, 2019 5:00 PM
The bitcoin price fell below $8,000 during a low volume weekend as traders foresee a steeper drop to lower support levels.
When the bitcoin price was initially hovering at around $8,500 following a strong recovery, technical analysts anticipated a rebound to the $9,000 area.
However, subsequent to a noticeable dip in volume, the bitcoin price failed to demonstrate a short term trend reversal to the upside.
Sub $7,000 possible for Bitcoin says trader
According to a cryptocurrency technical analyst and trader known as DonAlt, the current price trend of bitcoin is demonstrating a lack of momentum and little resistance to building sell pressure.
In the near term, the trader said that bitcoin temporarily dropping below the $7,000 support level is a possibility as bulls have struggled to show a significant reaction to important support levels being breached.
“Looks anemic to me. Wouldn’t be surprised by another leg lower wicking into the green zone. I would be surprised by a wick into the $9000s but technically that’s the next best resistance. Currently in a tight range, without any major reaction to the lows being hit,” he said.
Scott Melker, a trader at Texas West Capital, similarly said that bitcoin has to swiftly show a reversal to the mid-$8,000 region in the short term to maintain the hopes for a relief rally alive.
Otherwise, Melker noted that the “channel” of bitcoin is likely to bottom, indicating a further pullback from sub $8,000.
“2 days later, channel is strong. Have not even looked at the chart in 48 hours. Price did go up to the top and was rejected, with a hidden bear div to boot. There’s a div for most tops and bottoms of these local moves. Uneventful price action on low weekend volume.
Price has flipped blue demand into resistance and is now struggling with the EQ of the descending channel. That is also resistance. Both of these areas need to be reclaimed and flipped back to support for further bullish momentum. Otherwise, watch the channel bottom.”
Volume tends to dip during weekends
The daily volume of bitcoin and other major cryptocurrencies tends to drop during the weekend.
Historically, low volume in the markets has left bitcoin vulnerable to sharp minor correction on weekends as bulls fail to respond to abrupt sell-offs.
Based on the data from Messari and OnChainFX, the Real 10 daily volume of bitcoin is estimated to be around $212 million as of October 6, which is relatively low compared to the asset’s volume from June to August.
In the past several hours, as the bitcoin price slipped from around $8,100 to $7,900, around $16 million worth of long contracts on margin trading platform BitMEX were liquidated.
Long contract liquidations could intensify a downside movement in the next 24 to 48 hours, especially considering that the volume in spot markets often dip on the weekends.
The bitcoin price remaining below $8,000 by Sunday evening would lead to four red weekly candles in a row, increasing the likelihood of a deeper pullback in the upcoming weeks.
Click here for a real-time bitcoin price chart.