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Price analysis 1/22: BTC, ETH, DOT, XRP, ADA, LTC, LINK, BCH, BNB, XLM

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Aggressive profit-booking sent Bitcoin (BTC) spiraling below $29,000 on  Jan. 21 but was this a sign that institutional investors dumped their positions? This is one of the main questions bothering traders because large institutional inflows primarily led the run-up to $42,000.

Cointelegraph contributor Marcel Pechman analyzed derivatives data from various exchanges, which showed professional traders might have purchased at lower levels. The fall seems to have particularly hurt the excessively leveraged traders, resulting in $460 million worth of liquidations at derivatives exchanges.

Daily cryptocurrency market performance. Source: Coin360

Data from CryptoQuant shows that Bitcoin’s biggest mining pool, F2Pool, witnessed daily outflows of 10,000 Bitcoin for three days in a row, starting Jan. 17.

Although the outflows do not mean the miner has dumped the entire quantity, it shows a possible intent to reduce a portion of the inventory. This could have attracted selling from traders, fearing a sharp fall if the miners flooded the open market with BTC.

Currently, Bitcoin is rallying back toward $34,000 but is the current rebound a dead cat bounce or a resumption of the uptrend?

Let’s study the charts of the top-10 cryptocurrencies to find out.

BTC/USD

Bitcoin held the 20-day exponential moving average ($34,146) on Jan. 20, but the bulls could not push the price back into the symmetrical triangle, which shows a lack of demand at higher levels. The bears renewed their selling on Jan. 21 and broke the 20-day EMA support decisively. This is the first indication that the bullish momentum has weakened.

BTC/USDT daily chart. Source: TradingView

The BTC/USD pair has bounced off the 50-day simple moving average ($28,103) today, but the rise could face resistance at the 20-day EMA. If the pair turns down from the 20-day EMA, it will suggest the sentiment has changed from buy on dips to sell on rallies.

If the next dip breaks below the 50-day SMA, the correction could deepen to the 61.8% Fibonacci retracement level at $22,106.73. Such a move may delay the resumption of the uptrend.

Contrary to this assumption, if the bulls can propel the price above the 20-day EMA, the pair could rise to the downtrend line. A breakout of this resistance could result in a retest of the all-time high at $41,959.63.

ETH/USD

Ether (ETH) plummeted below the $1,300 support and the 20-day EMA ($1,142) on Jan. 21, but the bulls defended the uptrend line today. The buyers are currently attempting to drive the price above the $1,300 resistance.

ETH/USDT daily chart. Source: TradingView

If they succeed, the ETH/USD pair could retest the all-time high at $1,438. A breakout and close above this resistance will suggest the uptrend has resumed. The next target objective on the upside is $1,675.

However, if the price turns down from the overhead resistance, the pair could consolidate in a range for a few days before starting the next trending move. The bears will be back in the game if the pair turns down and breaks below the uptrend line.

DOT/USD

Polkadot (DOT) is currently consolidating in an uptrend. The bulls have not allowed the price to dip below the 38.2% Fibonacci retracement level at $14.7259, suggesting that the traders are not rushing to the exit as they expect the uptrend to resume.

DOT/USDT daily chart. Source: TradingView

The upsloping moving averages and the relative strength index (RSI) near the overbought zone suggest the bulls are in command. If the buyers can thrust the price above the $18 to $19.40 overhead resistance zone, the uptrend could resume. The next level to watch on the upside is $24 and then $30.

If the price turns down from the overhead resistance, the DOT/USD pair may remain range-bound for a few more days. The pair could turn negative if the bears sink and sustain the price below the 20-day EMA ($13.25).

XRP/USD

XRP slipped below the $0.25 support today, but the bears could not sustain the lower levels. The bulls purchased the dip and are currently attempting to push the price above the 20-day EMA ($0.29).

XRP/USDT daily chart. Source: TradingView

If they manage to do that, the XRP/USD pair may rise to the downtrend line, which has acted as a stiff resistance on two previous occasions. If the price once again turns down from this resistance, the bears will try to sink the pair below $0.25 and complete the descending triangle pattern. If that happens, the pair could drop to $0.169.

On the other hand, if the bulls can push the price above the downtrend line, the pair may rise to $0.385. A breakout of this resistance could start a new uptrend, but if the price turns down from this level, the pair may continue to consolidate between $0.25 and $0.385 for a few more days.

ADA/USD

Cardano (ADA) broke below the $0.34 support on Jan. 21 and the 20-day EMA ($0.30) today, but the bulls purchased at the support line of the ascending channel, which shows demand at lower levels.

ADA/USDT daily chart. Source: TradingView

The buyers are currently attempting to sustain the price above the $0.34 overhead resistance. If they succeed, a retest of $0.3971995 is likely. The upsloping moving averages and the RSI in the positive zone suggest bulls have the upper hand.

A breakout and close above $0.40 could resume the uptrend with the next target objective at $0.50. This bullish view will invalidate the price turns down and breaks below the channel. The next support on the downside is the 50-day SMA at $0.22.

LTC/USD

Litecoin (LTC) has formed a head and shoulders pattern that will complete on a breakdown and close below $120. The strong rebound off the 50-day SMA ($122.80) today suggests the bulls are defending the $120 support.

LTC/USDT daily chart. Source: TradingView

The current bounce could face selling at the downtrend line. If the price turns down from this resistance, the bears will again try to break the neckline at $120 and complete the head and shoulder pattern. If they succeed, the LTC/USD pair could drop to $100 and then to $70.

This negative view will invalidate if the bulls push the price above the downtrend line. The momentum could pick up above $160 and result in a retest of $185.5821. A breakout of this resistance may resume the uptrend.

LINK/USD

Chainlink (LINK) rebounded sharply from just below the 20-day EMA ($18.18) today, which shows the bulls are actively buying on dips. The upsloping 20-day EMA and the RSI in the positive territory suggest bulls are in command.

LINK/USDT daily chart. Source: TradingView

If the bulls can sustain the price above $22, the LINK/USD pair could retest the all-time high at $23.767. A breakout and close above this resistance may resume the uptrend, with the next target at $27 and then $30.

Contrary to this assumption, if the price turns down from the overhead resistance, a few days of consolidation is possible. The trend will turn in favor of the bears if they can sink the pair below $17.

BCH/USD

Bitcoin Cash (BCH) broke below the uptrend line on Jan. 21, and the altcoin dropped close to the 50-day SMA ($375) today. The 20-day EMA ($459) has flattened out, and the RSI near the midpoint suggests a few days of range-bound action.

BCH/USD daily chart. Source: TradingView

If the bulls push the price back above the 20-day EMA, the BCH/USD pair could rise to $539. The bears are likely to mount a strong defense at this level. If the price turns down from this resistance, the pair may remain stuck between $539 and $370 for a few days.

On the contrary, if the current bounce turns down from the 20-day EMA, the bears will again try to sink the price below the $370 support. If they succeed, the pair may correct to $275.

BNB/USD

The bulls defended the 20-day EMA ($40.82) on Jan. 20 but renewed selling on Jan. 21 sent Binance Coin (BNB) tumbling to the support line of the ascending broadening wedge pattern.

BNB/USDT daily chart. Source: TradingView

The bears tried to sink the price below the pattern today but strong buying by the bulls has pushed the price to the 20-day EMA. If the bulls can propel the price above the 20-day EMA, it will indicate accumulation at lower levels. This could result in a rally to $44 and then to $47.2187.

Contrary to this assumption, if the price turns down from the current levels and breaks below the support line, it will suggest traders are selling at the 20-day EMA, which indicates a bearish sentiment. If the 50-day SMA ($35.95) cracks, the BNB/USD pair could correct to $30 and then to $26.7273.

XLM/USD

Stellar (XLM) plunged below the $0.26 to $0.325 range on Jan. 21, indicating the balance had shifted in favor of the bears. The sellers tried to sink the price to the 50-day SMA ($0.205) today, but the buyers arrested the decline at $0.228112.

XLM/USDT daily chart. Source: TradingView

The bulls are currently attempting to push the price back inside the range. If they succeed in sustaining the price above the 20-day EMA ($0.264), it will suggest the break below the range was a bear trap.

If the bulls can sustain their buying and push the price above $0.325, the XLM/USD pair could resume the uptrend and rally to $0.40

On the other hand, if the pair again turns down and breaks below $0.26, it will suggest the sentiment has turned negative, and traders are selling on minor rallies. This could pull the price down to the 50-day SMA.

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.

Market data is provided by HitBTC exchange.

Source: https://cointelegraph.com/news/price-analysis-1-22-btc-eth-dot-xrp-ada-ltc-link-bch-bnb-xlm

Blockchain

Ethereum EIP-1559 Targeting Gas Fee Challenges to be Implemented in July

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The contentious Ethereum Improvement Proposal (EIP) 1559, will be included in its codebase in July this year. This became clear during the All Core Developers call today.

EIP 1559: What Does it Mean for Fees?

Ethereum’s Improvement Proposal 1559 is aimed at improving the overall Ethereum’s user experience when it comes to transaction fees.

Typically, a user would have to send a gas fee to a miner for their transaction to be included in a block. What EIP-1559 proposes, however, is to send that gas fee to the network itself. Called basefee, this is a sort of a “burn” and there would only be an optional tip that’s paid to the miners. The burnt fee would be set algorithmically, supposedly improving the UX.

The proposal was originally submitted by Eric Conner and its summary provides an overall outlook at what it attempts to achieve:

A transaction pricing mechanism that includes fixed-per-block network fee that is burned and dynamically expands/contracts block sizes to deal with transient congestion.

During today’s All Core Developers call, it was decided that it will be included in the so-called London hard fork coming this July.

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Some Miners Disagree

Despite the potential improvements on the entire network that could come with EIP-1559, some of the largest Ethereum mining pools have openly displayed division on where they stand.

F2Pool, the third-largest ETH mining pool with over 10% hashrate share, shared a post, in which it supported the initiative, claiming that it would ultimately have a positive impact.

The publication says that “the general community along with core developers are siding with evolving Ethereum to include EIP-1559. It is important to side with the users and core contributors.”

F2Pool’s statement also argued that the potential EIP-1559 implementation could be factored in ETH’s price, which is more than 100% from the start of the year.

In contrast, though, the largest mining pool with nearly 25% share of the hashrate, Sparkpool, didn’t feel the same way about the integration as it could reduce the profits. They took it to Twitter to emphatically assert that the mining pool “opposes EIP-1559.”

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Source: https://cryptopotato.com/ethereum-eip-1559-targeting-gas-fee-challenges-to-be-implemented-in-july/

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Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

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Uniswap broke out past the $29.3 level of resistance, while Crypto.com Coin was in a phase of consolidation. Compound bounced off the $450 level of support to touch $500 but could see a pullback to $470.

Uniswap [UNI]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: UNI/USDT on TradingView

UNI broke out and went past the $29 area of resistance, where the 23.6% retracement level and the $27.3 level of resistance lay. The upward move had extraordinary volume as UNI touched $31.54 but some selling pressure was seen in the subsequent trading session.

The Doji candle represented short-term exhaustion from the bulls, and the breakout could see UNI pullback to test the $29.3 level to confirm its flip from resistance to support.

The MACD showed strong bullish momentum behind UNI. Bearish divergence on the hourly chart between momentum (MACD) and the price could be seen in the coming hours, which would likely see UNI pullback to $29.4. This can be used to enter long positions, with a stop-loss just at $28.7.

Crypto.com Coin [CRO]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: CRO/USDT on TradingView

The Bollinger bands showed that CRO was in a phase of consolidation at and around its 38.2% retracement level at $0.152. The RSI moved back above neutral 50 to indicate that momentum was swaying towards the bulls’ side.

The defense of the 50% retracement level at $0.127 and the immediate bounce-off was a show of strength from bulls – the $0.146-$0.152 region can be used to accumulate CRO in expectation of another move upwards. The $0.173 and $0.189 levels are levels of resistance to watch.

Compound [COMP]

Uniswap, Crypto.com Coin, Compound Price Analysis: 07 March

Source: COMP/USDT on TradingView

Compound saw a strong bounce-off at the $450 mark which represents a 23.6% retracement for COMP’s move from $205 to $573. At the time of writing, COMP faced some resistance at the $500 area.

Moreover, the Awesome Oscillator on the hourly chart displayed a bearish twin peak set up and gave a sell signal. This development, followed by the AO registering bearish bars on its histogram, is likely to see the price dip to $470. Bulls would need to show some strength at $470, or bears can drive the prices lower to $450 once more.


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Source: https://ambcrypto.com/uniswap-crypto-com-coin-compound-price-analysis-07-march

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Pakistan: Arrests made in Bitcoin extortion case

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The world of finance has never been able to protect itself from the fraudulent activities going around in the world. The cryptocurrency market, which itself is a growing space has also had its fair share of such fraudulent activity being associated with it. However, unlike traditional finance, regulators have been enforced stringent measures when it comes to tackling such offenses.

A recent case has been reported in Pakistan, where the police have arrested several people part of the country’s first extortion case via crypto. According to reports, the police arrested the owner of an outhouse where the complainants, two foreign nationals, were held hostage along with two other suspects.

One of the suspects was identified as Rana Irfan Mahmood and a case has been registered against him and an unidentified accomplice. The hostages were Swiss national Maria Spari and German citizen Stephen [last name remains unknown] who were kidnapped by three men in police uniform along with another person.

After threatening the hostages with a fake drug smuggling case, the victims paid 6,300 euros in cash and made an online transfer of 1.8 Bitcoin which was close to $9k. The suspects made a fake video demanding an additional Rs 300 million [$1.91 million].

According to SSP Investigation Abdul Ghaffar Qaisrani, the police have managed to recover the amount paid to the facilitator apart from the Bitcoin. The crypto has already been transferred to another account and the team was taking assistance from the intelligence agencies to recover it.

Although the regulators in Pakistan have been taking note of Bitcoin and crypto, illicit activities have been a growing concern in the region. In November 2020, the Central bank clarified that it was not banning crypto, contrary to the prevailing fear within many in the crypto-community.

In fact, Pakistan’s Securities and Exchange Commission [SEC] published a paper on the regulation of cryptocurrency trading platforms. This paper outlined the regulatory approach to crypto and included recommendations given by the Financial Action Task Force [FATF], as well as regulations presented by Malaysia, Hong Kong, and the U.S.

However, the police in the country have warned users and the government about the rising cases of ransom and extortion related to crypto. Bitcoin has been at the center of these cases and such fraud activities will only instill fear with the lack of regulation among crypto users in the region.


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Source: https://ambcrypto.com/pakistan-arrests-made-in-bitcoin-extortion-case

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