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Bitcoin Below $10,000 Could Start A Medium-Term Downtrend: Here’s Why

Bitcoin price declined over 15% in the past few days and it tested $10,000 against the US Dollar. BTC must stay above $10,000 to avoid more losses and a medium-term downtrend. Bitcoin is trading well below the main $10,800 and $10,500 support levels. The price even spiked below $10,000 and settled below the 100 simple […]

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Bitcoin price declined over 15% in the past few days and it tested $10,000 against the US Dollar. BTC must stay above $10,000 to avoid more losses and a medium-term downtrend.

  • Bitcoin is trading well below the main $10,800 and $10,500 support levels.
  • The price even spiked below $10,000 and settled below the 100 simple moving average (4-hours).
  • There is a steep bearish trend line forming with resistance near $10,250 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a recovery wave above $10,250 or it could dive below $10,000.

Bitcoin is Testing Important Support

This past week, there was a sharp decline in bitcoin from the $12,000 resistance against the US Dollar. BTC broke the $11,200 and $11,000 support levels to move into a bearish zone.

The decline gained pace below the $10,800 support and the bears took charge. They were able to push the price below the $10,500 support, with a close below the 100 simple moving average (4-hours). The price even spiked below the $10,000 level and a new monthly low is formed near $9,850.

Bitcoin is currently correcting higher and trading above $10,000. There was a break above the 23.6% Fib retracement level of the downward move from the $10,640 high to $9,853 low.

Bitcoin

Bitcoin price breaks $10,000. Source: TradingView.com

The first key resistance is near the $10,250 level. There is also a steep bearish trend line forming with resistance near $10,250 on the 4-hours chart of the BTC/USD pair. The trend line coincides with the 50% Fib retracement level of the downward move from the $10,640 high to $9,853 low.

A successful break above the trend line might start a decent recovery wave above $10,300. The next major resistance is near the $10,500 and $10,600 levels, above which the price might turn positive.

Downside Acceleration Below $10K for BTC

If bitcoin struggles to climb above the $10,250 resistance, there are chances of more losses. An initial support on the downside is near the $10,050 level.

The main support is near the $10,000 level. A daily close below the $10,000 support may perhaps establish a medium-term downtrend. The next major support is near the $9,500 and $9,400 levels.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving into the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 40 level.

Major Support Level – $10,000

Major Resistance Level – $10,500

Source: https://www.newsbtc.com/2020/09/06/bitcoin-below-10000-could-start-a-medium-term-downtrend/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-below-10000-could-start-a-medium-term-downtrend

Blockchain

Prepare For Liftoff: Bitcoin Loses Bear Market Trendline Against Altcoins

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Aside from a few rare outliers, over the last several years, owning Bitcoin has been the better investment compared to other cryptocurrencies. Altcoins like Ethereum and others have only recently caught up, and BTC dominance has maintained the lion’s share of the crypto market cap.

However, dominance has lost an important trendline dating back four full years to the peak of the last bull market, and it could suggest a major turnaround is about to occur across the crypto market. Could this be the » Read more

” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin season crypto investors have been waiting for?

Bitcoin Dominance Loses Crucial » Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>Bear Market Trendline

At peak Bitcoin fever in 2017, interest turned to altcoins that were much cheaper per » Read more

” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin by comparison as investors searched for the next BTC.

Related Reading | Five Signs That Say Altcoin Season Hasn’t Even Started Yet

Those investors ended up learning the hard way that there is no replacement for Bitcoin. Altcoins plunged by as much as 99% in most instances, while Bitcoin wiped out only 84% of its gains by comparison. Both scenarios are now far in the rear view, and since then Bitcoin has a commanding lead.

bitcoin dominance altcoin season

BTC dominance has lost an important monthly trendline dating back to the top of the last bull market | CRYPTOCAP-BTC.D on TradingView.com

At the height of that fever, dominance reached as low as 35%, but has since remained around or above 63%. That key level was lost at the same time a pivotal trendline was, and now there could be no over-performance in Bitcoin for the next year or more.

The trendline in question dates back four years to the bull market peak, and has kept dominance supported ever since.

Altcoins Are Ready To Explode If Dominance Dives Further

Bitcoin dominance holds the key to unlocking the true potential of any » Read more

” href=”https://www.newsbtc.com/dictionary/altcoin/” data-wpel-link=”internal”>altcoin season, which thus far the leading cryptocurrency by market cap has kept locked away for many years now.

bitcoin dominance altcoin season 2

A zoomed in view shows how many times BTC dominance tried to reclaim the line | CRYPTOCAP-BTC.D on TradingView.com

Losing the previous long term trendline resulted in some short term consolidation followed by a large move lower. A bearish retest of 70% BTC dominance failed, sending the important crypto market metric falling back lower to the second ascending trendline.

Related Reading | Altcoin Season Is Here: “Buy Crypto” Surpases Bitcoin Searches On Google

With the 63% level now lost also, BTC dominance should gravitate toward the mid-50% range, allowing altcoins to soar compared to Bitcoin for an extended period of time.

Altcoins could also theoretically hold up better in a wider correction, but that scenario is unlikely as the riskier assets typically are more volatile and react more sensitively to greater crypto market selloffs.

Featured image from Deposit Photos, Charts from TradingView.com

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-dominance-trendline-altcoins/

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Blockchain

John McAfee faces more charges connected to money laundering and wire fraud

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According to the United States Department of Justice, Manhattan Federal Court today charged John McAfee and his team’s executive adviser Jimmy Gale Watson Jr for fraud and money laundering conspiracy crimes. 

McAfee has been charged with securities fraud, touting, and wire fraud among other offenses stemming from the fraudulent promotion of crypto that federal law recognized as securities.

On 6 October last year, United States watchdog, Securities Exchange Commissions (SEC) charged the founder of the McAfee antivirus software firm for allegedly making over $23 million in the process of shilling seven initial coin offerings. Jimmy Gale Watson Jr. was also charged for violating Securities’ law in real-time on Twitter for shilling the ICOs along with McAfee. 

The ICOs reportedly raised $41 million in the process with half of those proceeds pocketed by McAfee. 

Manhattan US Attorney Audrey Strauss alleged that the duo exploited social media and “enthusiasm” among investors in the “emerging crypto market” to make millions through “lies and deception.” She further claimed: 

…[McAfee and Watson] allegedly used McAfee’s Twitter account to publish messages to hundreds of thousands of his Twitter followers touting various cryptocurrencies through false and misleading statements to conceal their true, self-interested motives.

The investors of these ICOs allegedly concealed the fact that they were compensating McAfee and his team for their promotional tweets through funds raised from public ICO investors.

While McAfee is currently detained in Spain on separate criminal charges filed by the DoJ’s Tax Division. Watson was arrested on 4 March in Texas and will be presented before a federal magistrate judge in the Northern District of Texas, today. 


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Source: https://ambcrypto.com/john-mcafee-faces-more-charges-connected-to-money-laundering-and-wire-fraud

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PAID Network exploiter nets $3 million in infinite mint attack

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Paid Network, a DeFi platform aimed at real-world businesses, has been exploited today in an “infinite mint” attack that has sent PAID token prices plunging upwards of 85%.

While the exploit netted nearly $180 million in PAID tokens at the time of the attack — what would have comfortably been the largest exploit of a DeFi protocol — the hacker’s payday will end up being far less. One observer noted that the attacker’s wallet only converted some of their tokens to wrapped ether, leaving the rest in rapidly-devaluing PAID tokens: 

The attacker’s wallet still has over 57 million PAID tokens worth $37 million. 

The exploit is conceptually similar to an attack on insurance protocol Cover that took place in late December last year. In that instance, the team took a “snapshot” of holders prior to the attack and issued a new token, returning the supply of the token to pre-exploit levels.

The team confirmed on Twitter that they are currently planning for a snapshot and restoration:

However, token holders anxious for a resolution may be out of luck. Some in the community are speculating that the attack on PAID wasn’t an exploit at all, but instead a “rugpull” — a colloquial term for an insider designing contracts to specifically make them exploitable and swiping user funds. 

Nick Chong of Parafi Capital noted on Twitter that Paid’s deployer contract, an externally controlled account, transferred ownership of the deployer to the attacker shortly before the mint, indicating that a member of the team either rugpulled, or errantly allowed the attack to take place with a security lapse:

Additionally, a DeFi risk analysis account @WARONRUGS warned of exactly this exploit in late January, noting that the contract owner can mint PAID tokens at any time:

An on-chain note sent to the attacker has ominously warned that “the LAPD will be in contact with Kyle Chasse very shortly.” Kyle Chasse is the CEO of Paid Network.

Paid Network did not respond to a request for comment by the time of publication. 

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Source: https://cointelegraph.com/news/paid-network-exploiter-nets-3-million-in-infinite-mint-attack

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