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Can Bitcoin go below $10K again? The ‘Trondicator’ may have the answer

The price of Bitcoin has been testing $10,000 support the entire weekend but did the futures gap finally get filled by a chart candle downwick?

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The markets are bleeding out. Ether (ETH) dropped from $500 to $300 in a matter of days, people are screaming that the DeFi bubble has burst already, and are crying about their favorite “[insert food name] coin” crashing in value after a one-month-old Twitter account rug pulled 38K ETH from investors.

Yes, it’s just another week in crypto, but did anyone else notice that Tron (TRX) was pumping amidst all this?

Might just be a coincidence, but the last time this happened so quickly the entire crypto market bled out in the long, cold crypto winter.

Daily cryptocurrency market snapshot, Sep. 4. Source: Coin360.com

Daily cryptocurrency market snapshot, Sep. 4. Source: Coin360.com

The Bitcoin “Bart” top

BTC/USD 4-HOUR chart. Source: TradingView

BTC/USD 4-HOUR chart. Source: TradingView

Bitcoin has shed 21% of its dollar value after dropping from $12,500 to sub $10K levels in just two weeks, leaving the popularized “Bart” pattern staring us in the face.

But when the leading digital cryptocurrency by market capitalization makes such a dramatic move, it pulls (for the most part) every other crypto asset down with it.

The top of this particular chapter in the history of Bitcoin was about $12,500, with many now questioning where the bottom could lie. So in this week’s analysis, I will look at three potential scenarios of how to identify the bottom.

The CME gap

BTC1! CME 4-hour chart. Source: TradingView

BTC1! CME 4-hour chart. Source: TradingView

Most seasoned Bitcoin traders are aware of the CME gap, for those yet to be exposed to this sorcery let me explain. Bitcoin is a 24/7 tradable asset. The CME, however, is only actually open 23 hours per day, beginning Sunday evening at 5∶00 pm Central Time and ending at 4∶00 pm CT Friday afternoon.

This means there are windows where gaps can occur, typically these occur on weekends when the market closes on a Friday and reopens on a Sunday evening. However, traders can still trade the asset 24/7 using what the CME refers to on their website as the following:

“Rule 526, and EFRPs (Exchange for Related Position), pursuant to Rule 538, may be negotiated/executed 24/7 and must be submitted for clearing during the appropriate clearing session.”

This means that orders can still be placed when the market is closed as far as the charts are concerned, which means orders can get left unfilled, and this is where the gap comes in.

The most recent gap occurred on Aug.13. This was a Thursday, so when the CME closed for one hour when Bitcoin was trading at $11,715, it reopened at a price of $11,765. This $50 move is what created the gap. So as Bitcoin rose to $12,635 on the CME chart, there may have been orders left unfilled from $11,715.

As the price fell past the gap price on Aug. 19, 2020, the gap is then considered “filled” and one can only assume that orders left behind at this level were then filled.

However, the price of Bitcoin has continued to bleed out, and we have printed a new local bottom of $9,905 on the CME chart, which is now just $240 shy of filling a gap left on July 24.

This is where it gets rather opaque. The gap range on July 24 is between $9,665 and $9,925, leaving the question of whether the gap must still be filled? Or whether the gap partially filled.

As the wick entered the gap range, it did not reach $9,965, thus not closing the gap entirely. Does this mean there are still orders waiting to be filled at $9,665?

We don’t know, and this leaves some speculators believing the gap has been filled, and another camp believing it is yet to be filled.

The weekly Fib paints $7K levels as support

BTC/USD 1-week chart Source: TradingView

BTC/USD 1-week chart Source: TradingView

Moving aside from the CME magic, technical traders are already eyeing up $7K areas as support. One analyst @officiallykeith (*ahem* that’s me btw) tweeted on Sep. 4: 

“Losing the .618 on the weekly of $7033 I will maybe realize my dream of owning nothing.”

Shortly after the same levels were echoed by popular trader Scott Melker (@scottmelker), who said:

“Point to remember – from here, a retrace to the low $7000s would still be considered “healthy,” hitting a 61.8% golden pocket retracement before heading to new highs. That would actually be considered “normal” after the move from the March lows. Would scare everyone.”

Whilst the prospect of hitting the 0.618 Fibonacci level might frighten many people, the more seasoned Bitcoin hodlers amongst us such as @Davincij15 were quick to assure crypto twitter that this is all part of the game. He noted:

“9 1/2 years ago…

I got #bitcoin at $1 and kept buying up to $32, then watched it drop to $2! Also watched bounce between $5 and $7 for 2 years.

Still held, still bought, still here, still strong!”

A reminder to us all that neither hodling nor trading Bitcoin is going to be easy, but to date, it has seldom been wise to bet against Bitcoin. As such we now have two potential bottoms in sight, $9,665 or around $7,100.

However, there is a third less-conventional indicator that might hold the answer…

“The Trondicator”

TRX/ETH 1-week chart. Source: TradingView

TRX/ETH 1-week chart. Source: TradingView

So let’s talk about Tron for a second. My last 10x trade of the 2017 bull market actually happened at the beginning of 2018, and that was on TRX.

We all know what happened after January 2018. The crypto bear market was thrust upon us, and altcoins started heading toward zero. But what is interesting about Tron and, in particular, its chart history, is that whenever Tron prints a candle with a wick near enough the same size as the candle itself, strange things happen to the crypto space as a whole.

This isn’t immediately noticeable on TRX/USDT charts, as Tron started life as an ETH pairing. So when you look at the TRX/ETH chart on the weekly, you start to see a pattern clearer than the Bart we are looking at on today’s BTC chart.

The first time we saw this type of longtail pump candle, the bear market started. The second time it happened was the week commencing Jan. 7, 2019, followed by a longtail dump candle on Feb. 4, 2019 — the exact period that Bitcoin found its bottom around $3,300.

So here we are again, the Aug. 30 weekly candle is a green long-tail candle on Tron and the markets are all going to pot. So maybe, just maybe, the bottom will be signaled when Tron prints another candle with a wick equal to the size of its body again.

The bearish scenario for Bitcoin

If Bitcoin fails to hold the CME gap support of $9,665, I’ll be looking at the weekly Fibonacci levels for support. These lie at the following levels: the 0.382 at $9,190, followed by the 0.5 fib at $8,168, with the absolute safe correction level being 0.618 around $7,146.

Losing the 0.618 would pretty much signal that we’ve had our bull market, now it’s time to keep an eye on the Trondicator.

The bullish scenario for Bitcoin

The CME gap effect is very real. I have witnessed first hand an immediate price correction after the CME gap has filled. As such, since the gap has partially filled, we may have already seen the bottom. The first bullish sign would be closing above the 0.236, which is around $10,454. Should BTC hold this level, then I expect the bull market to resume.

The views and opinions expressed here are solely those of @officiallykeith and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/can-bitcoin-go-below-10k-again-the-trondicator-may-have-the-answer

Blockchain

Mark Cuban Backs Ethereum-Based Data Marketplace dClimate

Mark Cuban Ethereum

Rate this post Dallas Mavericks owner, Mark Cuban is betting big on Ethereum’s future. The billionaire investor is joining Ethereum-based data project dClimate, a decentralized network for climate data, forecasts, and models based on the Ethereum blockchain and powered by the oracle network Chainlink Mark Cuban to Join Ethereum and Chainlink Data Project dClimate  Cuban has been advocating for crypto investments and adoption in the last few years. The tech entrepreneur has shown a great deal of interest in Ethereum in particular. During an interview, Cuban discussed the blockchain’s potential to disrupt banking, healthcare, and software companies. He also claimed that Etherem has a “greater long term” value as compared to Bitcoin. Following that, he invested in an Ethereum scalability startup Polygon. With his latest investment, Cuban is set to unleash Ethereum’s disruptive capabilities in a sector that ripe for a change: data. dClimate connects businesses and entities in need of climate data with publishers who can fulfill their needs. The company uses blockchain to eliminate middlemen and ensures transparency with an in-built mechanism to score the data quality. It also employs Chainlink — an Ethereum-based project that delivers information in and out of a blockchain network — to fetch the climate data. Chainlink is designed to connect blockchains with data in the real world in a secure manner. Over the last year, Chainlink has benefitted immensely from hundreds of partnerships with crypto-related projects, resulting in a 1000% surge in the value of LINK, its native token. Cuban’s Expertise is Invaluable to dClimate According to dClimate co-founder Sid Jha, Cuban’s understanding of blockchain and smart contracts could evolve and add transparency to the climate data industry. Furthermore, he stated, “His insights and expertise will be an invaluable asset to the dClimate team as we build a platform that can be leveraged by the many stakeholders who need reliable and secure weather data to build climate resilience.” Apart from Ethereum, Cuban has also expressed an interest in Dogecoin, a meme-currency that has a market cap of over $40.7 billion. His professional basketball team, Dallas Mavericks is also supportive of the crypto revolution and started accepting Bitcoin for payments two years ago.

The post Mark Cuban Backs Ethereum-Based Data Marketplace dClimate appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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Dallas Mavericks owner, Mark Cuban is betting big on Ethereum’s future. The billionaire investor is joining Ethereum-based data project dClimate, a decentralized network for climate data, forecasts, and models based on the Ethereum blockchain and powered by the oracle network Chainlink

Mark Cuban to Join Ethereum and Chainlink Data Project dClimate 

Cuban has been advocating for crypto investments and adoption in the last few years. The tech entrepreneur has shown a great deal of interest in Ethereum in particular. During an interview, Cuban discussed the blockchain’s potential to disrupt banking, healthcare, and software companies. He also claimed that Etherem has a “greater long term” value as compared to Bitcoin. Following that, he invested in an Ethereum scalability startup Polygon.

With his latest investment, Cuban is set to unleash Ethereum’s disruptive capabilities in a sector that ripe for a change: data.

dClimate connects businesses and entities in need of climate data with publishers who can fulfill their needs. The company uses blockchain to eliminate middlemen and ensures transparency with an in-built mechanism to score the data quality. It also employs Chainlink — an Ethereum-based project that delivers information in and out of a blockchain network — to fetch the climate data. Chainlink is designed to connect blockchains with data in the real world in a secure manner. Over the last year, Chainlink has benefitted immensely from hundreds of partnerships with crypto-related projects, resulting in a 1000% surge in the value of LINK, its native token.

Cuban’s Expertise is Invaluable to dClimate

According to dClimate co-founder Sid Jha, Cuban’s understanding of blockchain and smart contracts could evolve and add transparency to the climate data industry. Furthermore, he stated, “His insights and expertise will be an invaluable asset to the dClimate team as we build a platform that can be leveraged by the many stakeholders who need reliable and secure weather data to build climate resilience.”

Apart from Ethereum, Cuban has also expressed an interest in Dogecoin, a meme-currency that has a market cap of over $40.7 billion. His professional basketball team, Dallas Mavericks is also supportive of the crypto revolution and started accepting Bitcoin for payments two years ago.

READ  Diginex Is the First Crypto Exchange to Go Public on Nasdaq

#DClimate #Ethereum #Ethereum and Chainlink #Mark Cuban

Source: https://www.cryptoknowmics.com/news/mark-cuban-backs-ethereum-based-data-marketplace-dclimate/

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Blockchain

Bitcoin Struggles to Breach $40k After Fed Schedules Interest Rate Hike

Bitcoin Fed

Rate this post Bitcoin struggled to soar above $40,000 as investors unpacked the latest Fed announcement. On Wednesday, the Federal Reserve announced that it planned to increase interest rates twice in 2023, much sooner than the markets expected. The announcement incited fears that the banking system could also curtail its bond-buying program. Bitcoin Tumbles Amid Fed Announcement on Interest Rate Hikes in 2023 Bitcoin (BTC) prices are tumbling again after briefly showing signs of recovery. The currency was changing hands at an intraday low of $38,300, following its decline from the $40,000 mark. Meanwhile, in the stock markets, DOW and S&P 500 also recorded a drop of 0.77% and 0.54% respectively. The latest decision on interest rates comes in light of rising inflation in the United States. The country — currently experiencing a 13 year high in consumer prices — is projected to see its inflation rates spike from 2.4% to 3.4%. While Fed chair Jerome Powell has termed the projected rates to be “transitory”, investors are worried about the implications of ongoing inflation for a post-pandemic economy. In the meantime, investors tied to risky assets such as stocks and cryptocurrencies are also anticipating the Fed to roll back its $120 billion monthly bond purchase program, which could be winded down before the planned interest rate hikes. Current Bitcoin Price Activity is Normal Range-Bound Trading BTC prices briefly breached $40,000 but fell short of $45,000, as the currency traded at nearly $41, 350 on 15 June. But the digital asset couldn’t maintain this level longer and plummeted further. Even as BTC fell from $40,000 to $38,300, investors are confident about the primary cryptocurrency’s resilience. Some believe that Bitcoin’s price activity matches its range-bound trading. At this point, investors are hoping for BTC to hold at $37,000, which could represent its support level. Interestingly, major exchanges have recorded a continuous inflow of BTC over the last few days. Miner outflows have also been increasing according to the findings of CryptoQuant, which suggest that BTC inflows produce bearish results for the market.  Additionally, the currency’s 50 and 200-day moving averages are also on their way to convergence, leading to the formation of a bearish death cross. While they are not the strongest indicators of the current spot price action, they help understand the existing resistance for bulls. 

The post Bitcoin Struggles to Breach $40k After Fed Schedules Interest Rate Hike appeared first on Cryptoknowmics-Crypto News and Media Platform.

Republished by Plato

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Bitcoin struggled to soar above $40,000 as investors unpacked the latest Fed announcement. On Wednesday, the Federal Reserve announced that it planned to increase interest rates twice in 2023, much sooner than the markets expected. The announcement incited fears that the banking system could also curtail its bond-buying program.

Bitcoin Tumbles Amid Fed Announcement on Interest Rate Hikes in 2023

Bitcoin (BTC) prices are tumbling again after briefly showing signs of recovery. The currency was changing hands at an intraday low of $38,300, following its decline from the $40,000 mark. Meanwhile, in the stock markets, DOW and S&P 500 also recorded a drop of 0.77% and 0.54% respectively.

The latest decision on interest rates comes in light of rising inflation in the United States. The country — currently experiencing a 13 year high in consumer prices — is projected to see its inflation rates spike from 2.4% to 3.4%. While Fed chair Jerome Powell has termed the projected rates to be “transitory”, investors are worried about the implications of ongoing inflation for a post-pandemic economy.

In the meantime, investors tied to risky assets such as stocks and cryptocurrencies are also anticipating the Fed to roll back its $120 billion monthly bond purchase program, which could be winded down before the planned interest rate hikes.

Current Bitcoin Price Activity is Normal Range-Bound Trading

BTC prices briefly breached $40,000 but fell short of $45,000, as the currency traded at nearly $41, 350 on 15 June. But the digital asset couldn’t maintain this level longer and plummeted further.

Even as BTC fell from $40,000 to $38,300, investors are confident about the primary cryptocurrency’s resilience. Some believe that Bitcoin’s price activity matches its range-bound trading. At this point, investors are hoping for BTC to hold at $37,000, which could represent its support level.

Interestingly, major exchanges have recorded a continuous inflow of BTC over the last few days. Miner outflows have also been increasing according to the findings of CryptoQuant, which suggest that BTC inflows produce bearish results for the market. 

Additionally, the currency’s 50 and 200-day moving averages are also on their way to convergence, leading to the formation of a bearish death cross. While they are not the strongest indicators of the current spot price action, they help understand the existing resistance for bulls. 

READ  BCD Technical Analysis: Price Likely to Fall Below the First Support Level of $4.32

#Bitcoin price #Federal Reserve Bank #Federal Reserve Interest Rate

Source: https://www.cryptoknowmics.com/news/bitcoin-struggles-to-breach-40000-after-fed-schedules-early-interest-rate-hike/

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Shanghai Man: Economist says El Salvador ‘on road to death’, salaries paid in e-CNY …

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Our Man in Shanghai has refused to let recent regulations slow down the news coming from China. Enterprise blockchain, central bank digital currencies and start up projects continue to make a positive impact in a region hoping to grow economic value through technology.

Death march for El Salvador

The debate around El Salvador continued this week as media and officials tried to digest the adoption of Bitcoin as a national currency. JPMorgan stated that there was little economic benefit, and John Hopkins University professor Steve Hanke warned that the move could “completely collapse the economy” of the small nation. The former Bank of China deputy governor Wang Yongli took a very hardline approach, by stating that volatility and a lack of regulation or controls would put the economy on a “road to death.” This quote, appearing in state run media The Paper June 9, was an unusually direct and colorful statement on the issue.

Crypto innovation can be productive

Zhou Xiaoquan, a former governor of the People’s Bank of China, had a few positive things to say about cryptocurrency as a technology on June 11. He spoke at an economic summit in Shanghai and noted the cryptocurrency innovation in China can be productive when it serves the real economy. He also took some shots at other countries, stating that people would be mistaken if they thought other countries were taking the same approach towards building financial services. Zhou, who is one of the most often-quoted economists in the country, felt there was little emphasis on the relationship between financial services and economic value elsewhere in the world. Based on the wild displays at the Miami Bitcoin conference a few weeks ago, his position might be more sound than others would care to admit.

Paid in e-CNY

China’s e-CNY tests continued with the first reported mass payment of salaries in Xiong’an, a district near the capital Beijing. According to Cointelegraph, the pilot received support from a number of national banks and saw subcontractors paying workers their salaries from a digital wallet.

Industrial blockchain worth $22.6B

On June 3, a government organization issued a report entitled the China Industrial Blockchain Development Status and Trend Report. According to the report, in 2020, 222 industrial blockchain policies were issued, 12,059 new blockchain-related patent applications were approved, and 776 new blockchain enterprises were established. The report also claimed that the current market size of the industrial blockchain sector was around $22.6 billion U.S. dollars. Industrial blockchain is an area that China is eager to grab control in, leading to this explosive growth in recent years.

Only 5X the fun

Leading exchange Huobi surprised futures traders by limiting them to only 5x leverage on perpetual swaps and blocking new users from accessing the feature altogether. Futures trading, particularly highly-leveraged futures trading, had always been popular features on exchanges like OKEx and Huobi. It will be interesting to see whether these new decisions to limit risk will be damaging to these large exchanges that still somewhat adhere to regulator rules. It’s also possible that it’s a short-term solution in order to avoid scrutiny during periods of tighter control.

Futures of Singapore

While Huobi was tightening controls on futures traders, Singapore-based platform SynFutures was completing a Series A for $14 million. The round was led by Polychain Capital and included names like Framework Capital, Pantera Capital, Bybit, Kronos Research, WOO Ventures, Wintermute, and IOSG Ventures. SynFutures is creating a trustless derivatives market where users can take positions on assets or anything that has an accurate feed, including Bitcoin, the price of gold, or even the Bitcoin hashrate. What many people don’t know is that the SynFutures team is composed of members from Matrixport, a financial service app that was an offshoot of massive Chinese mining conglomerate Bitmain. Now you know the whole story!

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

Shanghai Man: Economist says El Salvador ’on road to death’, salaries paid in e-CNY …

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Source: https://blockchainconsultants.io/shanghai-man-economist-says-el-salvador-on-road-to-death-salaries-paid-in-e-cny/?utm_source=rss&utm_medium=rss&utm_campaign=shanghai-man-economist-says-el-salvador-on-road-to-death-salaries-paid-in-e-cny

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