The cryptocurrency market momentum has swung back to Bitcoin (BTC) recently as BTC dominance and trading volumes have been climbing along with its price. In that regard, the primary altcoin indicator, Ether (ETH), has not been doing well as ETH/BTC has dropped 30% in the last two months.
Now, many crypto traders are asking when the altcoins will bottom out and start to rally again. Let’s take a look at what the charts are showing.
Ether staying above 100-week and 200-week MAs
The weekly chart shows a precise range, as Ether’s price couldn’t break through the resistance zone at $450. However, some bullish indicators are also seen on the charts.
One of those bullish indicators is the breakthrough of the 100-week and 200-week moving averages (MAs). These MAs are often seen as a crucial indicator of bullish/bearish sentiment of the markets. Because the price of Ether broke through the MAs in the previous months, it can be said with confidence that this cryptocurrency is in bullish territory.
However, another bullish argument is the breakthrough above $270, which has been resistance for over a year and was only overcome in recent months.
An apparent breakthrough occurred, after which the price of Ether rallied toward $450. In this breakout, however, no clear support/resistance flip of this $270 zone occurred, which means a retracement toward this level will be relatively healthy.
Hence, a range between $270 and $450 is established based on the weekly chart. In other words, a likely retest of the $270 area is on the table.
Breaking the $450 to the upside means continuation toward $800 is very likely.
Ether resting on $368–$375 support
The daily chart shows a potential rising-wedge construction with decreasing volume. This rising-wedge construction is currently resting on the $368–$378 support level. This level is crucial for lower time frames.
If this area is lost, a sharp fall can be anticipated. In that regard, a test of the $315 level or even the $270 and potentially $250 levels are on the table. If the $368–$378 level is lost, the 100-day MA will also lose its support value, indicating more downside potential.
The four-hour chart indicates a slight upward move in the previous 24 hours. However, the push upward couldn’t break through the resistance zone at $400, which resulted in a significant drop afterward.
This drop was also caused by weakness on the Bitcoin markets and a significant inflow of ETH from a single entity to the exchanges, just minutes before the fall occurred.
ETH/BTC facing potential support zones
Historically, the fourth quarter is not the best period to hold ETH until it bottoms out in December. It doesn’t seem to be any different this year so far, as Ether’s price has fallen 30% since its recent high at 0.04 sats.
The Ether chart against Bitcoin is showing a clear view of the support and resistance levels.
On the higher timeframes, a potential support zone is approaching. Alongside the 200-week MA, support could be found at the 0.024–0.026 sats area, as that’s the previous resistance zone to flip for support.
The ETH/BTC daily chart of Ether shows a slight bounce in the last days as the 0.028 sats area served as support. However, there’s no sign of reversal yet, as the price of Ether still appears to be correcting.
Bullish arguments can be made once the upper resistance zone at 0.0315 sats breaks and flips for support. Other bullish signs include Ether bottoming out at 0.026 sats with a bullish divergence at the bottom. This would be the strongest indication of any bottom structure.
The views and opinions expressed here are solely those of the author 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.
Crypto Scam Watchdog Group Wants To Get Back At Vitalik Buterin
A crypto scam watchdog group wants to get back at Ethereum’s creator after he got rid of all of his SHIB token holdings. Now, the group created a token that dumps ETH for rival BNB as we can see more in our latest Ethereum news today.
The market for SHIB collapsed after Buterin got rid of all of his tokens and now one crypto scam watchdog group wants revenge. The Telegram group War on Rugs hates rug pulls but now they are trying to rug pull Ethereum. The group says it’s composed of developers and auditors that created the Rug Ethereum token in retaliation for the ETH co-founder Vitalik Buterin’s decisions o transfer millions of his SHIB tokens to charity while at the same time he crashed the market for the token:
“Vitalik rug pulled Shiba, innocent investors have been hurt. He should never be shown as a hero for this.”
@VitalikButerin rug pulled Shiba Inu $SHIB. Let’s rug Ethereum $ETH. Introducing Rug Ethereum $RETH on the Binance Smart Chain. A token that dumps ETH for BNB. The first @WARONRUGS token. #SellYourETHhttps://t.co/lZ7zckBqIG
— #WARONRUGS❌ (@WARONRUGS) May 14, 2021
Binance CEO Changpeng Zhao agreed to list the token on Binance’s Innovation Zone and called SHIB high risk. War on Rugs which looked at the smart contract said that this year Buterin had a huge stake in the token which meant it could be vulnerable. A rug pull is a type of scam where developers leave a project and take investors’ money with them. They are most common in the DeFi space where people can go to get crypto loans, earn interest, and trade assets without getting the help of a financial intermediary or insurance that intermediaries provide.
Buterin didn’t develop the token so now the creators of the meme token sent trillions of the asset to Buterin who is reversed among ETH acolytes for his intellectual capacity and lack of concern for the things money can buy. Sending the funds to Buterin’s wallet lent the project a veneer of legitimacy while also decreasing the supply because he wouldn’t touch the funds. DeFi researcher Chris Blec said:
“If you consider a ‘rug pull’ to be quickly, without notice, removing a damaging amount of liquidity from a pool, then I guess that’s what Vitalik did. The fact that he never asked for the liquidity in the first place definitely changes things though.The SHIB token project was originally deployed with a specific set of risks and a whole lot of inherent problems. Vitalik didn’t change any of that. He simply exposed the token for what it was.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Bitcoinist Book Club: “The Bitcoin Standard” (Prologue and Chapter 1)
To lay the foundation for everything we’ll learn in the Bitcoinist Book Club, we had to start with “The Bitcoin Standard” by Saifedean Ammous. A fair amount of experts in the field recommend it as the first Bitcoin book people should read. Does that mean it’s too basic for the Bitcoinist audience? Not at all. Our readers might already be familiar with these concepts, but seeing them used as building blocks to construct a case for Bitcoin is a thing of beauty.
Here’s an introductory deep dive into The Bitcoin Standard and the first iteration of the Bitcoin Book Club.
About The Coolest Club On Earth
The Bitcoinist Book Club has two different use cases:
1.- For the superstar-executive-investor on the run, we’ll summarize the must-read books for cryptocurrency enthusiasts. One by one. Chapter by chapter. We read them so you don’t have to, and give you just the meaty bits.
2.- For the meditative bookworm who’s here for the research, we’ll provide liner notes to accompany your reading. After our book club finishes with the book, you can always come back to refresh the concepts and find crucial quotes.
That’s it. Let’s get into it.
“The Bitcoin Standard” – Prologue
The book is divided into three parts. The first one discusses the concept of money and everything it implies. The second part goes back in time and analyzes the use of “sound and unsound forms of money throughout history.” The third, finally, gets into Bitcoin and the possibilities it brings to the table, “and analyzes the possible uses of Bitcoin as a form of sound money.”
The prologue also provides a solid definition of what Bitcoin is:
In essence, Bitcoin offered a payment network with its own native currency, and used a sophisticated method for members to verify all transactions without having to trust in any single member of the network. The currency was issued at a predetermined rate to reward the members who spent their processing power on verifying the transactions, thus providing a reward for their work.
That means Bitcoin is, “the first demonstrably reliable operational example of digital cash and digital hard money.” This is huge. This is what the world needs. And, as we go through this book, we’ll find out exactly why.
The prologue cannot end without a familiar disclaimer: “This book does not offer investment advice.” Of course it doesn’t, and everybody involved resents the implication.
BTC price chart on Bitstamp | Source: BTC/USD on TradingView.com
“The Bitcoin Standard” – Chapter 1: Money
The main function of money is as a medium of exchange. The second is as a store of value, and the third is as a unit of account. We need money because barter is not an efficient enough system for a complex society. So, “A good that assumes the role of a widely accepted medium of exchange is called money.” It doesn’t matter what it is and it doesn’t have to be “government paper.”
What the market looks for in potential money is salability. That is, “the ease with which a good can be sold on the market whenever its holder desires, with the least loss in its price.” If that characteristic persists across time, then the asset displays an “ability to hold value into the future.” So, it becomes a store of value.
It therefore follows that for something to assume a monetary role, it has to be costly to produce, otherwise the temptation to make money on the cheap will destroy the wealth of the savers, and destroy the incentive anyone has to save in this medium.
If it’s difficult to produce new “monetary units,” that’s “hard money.” If it isn’t, then it’s “easy money.” Over time, people who use hard money will tremendously outperform people who use easy money. A constant increase in the supply will erode the purchasing power of the easy money, it’s as simple as that. The law of supply and demand never fails.
The ratio between the stock and flow is a reliable indicator of a good’s hardness as money, and how well it is suited to playing a monetary role.
With flow being the “extra production that will be made in the next time period.” These core concepts are the basis for PlanB’s Stock-To-Flow model. And this is the main reason that model works, “The higher the ratio of the stock to the flow, the more likely a good is to maintain its value over time.” Or to, you know… augment its value.
It’s time to talk about liquidity, “the more people accept a monetary medium, the more liquid it is.” And acceptance throughout a community is the characteristic that allows for pricing to be, “expressed in its terms, which allows it to play the third function of money: unit of account.”
So, money plays “the roles of medium of exchange to allow specialization; store of value to create future-orientation and incentivize individuals to direct resources to investment instead of consumption; and unit of account to allow economic calculation of profits and losses.”
So simple, and yet it eludes even the smartest of us.
Related Reading | A new year – new opportunities in crypto
A Critique, Because It Can’t All Be Positive
This sentence should’ve been heavily edited, it sounds like a bad joke:
Producers can specialize in producing capital goods that will only produce final consumer goods after longer intervals, which allows for more productive and superior products.
Five product-related words in a row? Come on! And, as a bonus, in the same paragraph:
The production of these tools stretches the duration of the production process significantly while also increasing its productivity.
Three more product-related words? That’s a total of eight in the same paragraph. Too much.
Stay tuned for the next installment of the Bitcoinist Book Club.
Coinsmart. Beste Bitcoin-Börse in Europa
Twitter CEO Jack Dorsey says he would forever work to make bitcoin better.
Twitter CEO Jack Dorsey expressed his support for the leading cryptocurrency bitcoin on his microblogging platform Twitter, in response to a tweet by the Square chief financial officer, Amrita Ahuja. “Our bitcoin strategy hasn’t changed. We’re deeply committed to this community, including working towards a greener future through our Bitcoin Clean Energy Initiative,” Ms Ahuja wrote on Twitter. These comments came a few days after Elon Musk’s Tesla suspended bitcoin payments.
#bitcoin changes *everything*…for the better.
And we will forever work to make bitcoin better. https://t.co/wssrF2U0P0
— jack (@jack) May 14, 2021
Square’s Bitcoin asset is valued at $410m.
Square is a digital payments company founded by Twitter chief executive and Jim Kelvey and launched in 2020. The company valued at over $100 billion in 2020 is evaluating Bitcoin as an investment opportunity. Square has purchased a total of $220 million Bitcoin to date. Its Bitcoin asset is valued at $410m. Bitcoin was trading at $48,523.20 on Saturday and is down 13 percent over the past five days since Tesla announced to drop the cryptocurrency as a payment method. “Square is doing exactly this for bitcoin with @SqCrypto,” Jack Dorsey had tweeted last year.
Tesla suspends the bitcoin payment option citing environmental reasons.
Less than two months after Elon Musk had announced to accept the leading cryptocurrency bitcoin payments for Tesla vehicles, the company discontinued its support. Elon Musk announced that the reason they are suspending bitcoin payments is because of environmental concerns. Bitcoin mining uses specialized computers that use massive energy for the process of mining. However, Tesla would continue to retain bitcoin holdings that it acquired sometime in January this year. The leading electric car maker had purchased $1.5 billion worth of bitcoins earlier this year, sending the price of the leading cryptocurrency to new highs.
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Billionaire Druckenmiller says ledger-based system could replace USD worldwide
Justin Sun Offers $50M Dogecoin For TRX And BTT SpaceX Satellite Launch
Bitcoin Vault inks major deal with ESE to co-produce Gaming & Esports Talent Show in five countries
XRP Lawsuit ramifications: Is the SEC hurting the same community it vows to protect?
Raze Network Kicks Off Testnet Phase With UI Community Voting
Sigmax.io introduces an innovative trading bot that simplifies arbitrage trading
First Spot: Coinbase’s App Surpassed TikTok, Instagram, and Facebook on iOS in the US
Binance Lists SHIB, Will It Become The Next DOGE?
Dfinity’s ICP token sees violent first day of trade on major exchanges
The challenges with designing a CBDC, explained
Data Agnostic Oracle Network ORAO Chooses TRON’s Blockchain Over Ethereum’s
dotmoovs Raises $840,000 From Strategic Investors and Partners
How did Internet Computer (ICP) become a top-10 cryptocurrency overnight?
Casper Network’s CSPR Spot Trading Now Open on OKEx
AI-powered crypto trading app BlockBank to use API3’s data feeds
Block.one and partners raise $10B to launch EOS-based crypto exchange: Bullish Global
When dollars meet the hype: The biggest NFT hits from celebrities
PARSIQ Integrated Into Polkadot For Smart Triggers Across the Relay Chain
Uniswap flips Bitcoin on daily revenue… and it’s more impressive than you think
Blockchain1 week ago
Major Law Firm CMS Adds Stratis (STRAX) to its Legal Accelerator Program
Blockchain1 week ago
Crypto Market Cap Added $300B in 7 Days as Altcoins Explode: The Weekly Recap
Blockchain4 days ago
Palantir Accepts Bitcoin for Payments and Considers Adding BTC to Balance Sheet
Blockchain7 days ago
Ray Dalio’s Bridgewater CFO leaves to work on Bitcoin full-time
Blockchain7 days ago
Ethereum price closes in on $4K as Shiba Inu (SHIB) steals Dogecoin’s thunder
Blockchain7 days ago
CFO of World’s Largest Hedge Fund Joins Institutional Bitcoin Firm NYDIG
Blockchain7 days ago
Ethereum (ETH) Hits $3800 ATH As Coinbase Premium Shoots With Institutional Interest
Blockchain6 days ago
Crypto Banter Will Give Away Over $500K To 10 Eligible Community Members