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The Sudden, Unexpected End of Crypto Tribalism

Republished by Plato

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“The lower the stakes, the more intense the dispute.” 

Sayre’s Law

The Narcissism Of Small Differences

Bitcoin and the crypto world have enjoyed a phenomenal decade. Despite the fact that Bitcoin is perhaps the most disruptive technology to the status quo since the printing press, the powers-that-be have mostly left us alone. Sure, exchanges have been obliged to perform KYC measures, there’ve been a few darkmarket arrests, China banned Bitcoin a few times and the U.S. Securities and Exchange Commission went after some ICOs. But these regulatory responses are the bare minimum, the same regulations are applied to the very scary antiques market. 

For a decade, we have been left largely to our own devices while enjoying the unprecedented luxury of a growth rate that has averaged thousands percent. To be extremely successful, all you had to do was buy some bitcoin and then do nothing. In fact, you didn’t even need to do that, you could have chosen the cryptocurrency you were going to buy by throwing darts while drunk and blindfolded and you still would have seemed like a genius for buying XRP. 

So, we did what people always do when they are free from any real troubles — we turned on each other. Bitcoin hated Ethereum. BCH hated Bitcoin. Monero hated Zcash. And everyone hated Ripple. We whiled away the hours of our idyllic age of innocence, by going to Twitter and telling people to “have fun staying poor… idiot.” It felt important. 

Undoubtedly there are important differences between Bitcoin and, say, Ethereum. There might also be a very real sense in which they are competing with each other. While we had no problems more important to attend to, the rivalry, and its intensity, perhaps made sense. 

End Of Innocence

This tribalism is soon going to come to a very sudden end. Bitcoin and crypto have become too big to ignore. Leviathan is stirring. Even in the minds of the most unimaginative of bureaucrats, the realization is starting to dawn: “This is not a toy, this is not some millennial fad. This is our control over the monetary and financial system that these kids are coming after…”

Monero is being delisted from exchanges. An Ethereum Core dev and the BitMEX CTO have been arrested. The Travel Rule is being adjusted special, just for us. In the U.S., in Europe, in Israel and soon everywhere, you must disclose your crypto holdings, not just when you sell but always. 

“First they laugh at you, then they ignore you, then they fight you…” 

Congratulations everyone, they are getting ready to fight us. No pretendsies anymore. This fight will be for keeps. Are you ready? They say you can’t fight City Hall. Well, how about fighting a global coalition of nations with nuclear weapons and interpol at its disposal that can make the financial rules up as they go along? 

We are going to need every ally we can get, even if they are an imperfect shitcoiner. 

New Battle Lines

It’s actually even worse than that. Those closest to us are going to be the ones to turn the knife. For a decade, we have been entrusting our funds to exchanges and relying on them as our on- and offramps. We have also been praying that this would be the “year the institutions come.” Well, the exchanges have built huge businesses that they now need to protect. They have shareholders to whom they must answer. They have precious regulatory licences that were expensive to acquire and are easy to lose. 

Coinbase is going to conduct an IPO. Kraken has become a bank. Banks were an invention of the free market. They have been co-opted into a quasi-arm of the government and have become the primary enforcers of the financial surveillance state. How long before Kraken has its tentacles in your finances, operating under instructions from the regulator? How long before we  begin to see all those institutions we summoned digest crypto companies in an orgy of M&A?

If you imagined that institutions getting interested in Bitcoin meant that they would begin to lobby on our behalf, you were mistaken. They will lobby on behalf of their own interests: to be mandatory middlemen, who must approve your every transaction and who take a cut for the trouble. The exchanges that served us so well over all of these years, who offered us great convenience in exchange for the mere trifle of controlling our keys — these exchanges run by Bitcoin OGs — they are no longer our friends. The age of innocence is over. 

See Also

Conviction that Bitcoin and an honest monetary system are fundamental to freedom can inspire cooperation between unlikely partners.

Together, We Shall Overcome

Nothing unites a community like a common foe. As large as the perceived differences between the different crypto tribes might be, they pale in comparison to the gulf between us and the nocoiners. Right now, we live in a nocoiner world. A fiat world of central authorities, financial surveillance and crony capitalism. The nocoiners have the power by default. We must choose to either unite, or allow them to succeed through a strategy of divide and conquer. 

The great underdog success stories have always required the revolutionaries to put aside their differences and unite. The squabbling Greeks came together to defeat the Persians and defend their democracy. The competing houses of England paused their fighting and forced King John to sign the Magna Carta. The States of America forgot their ideological and religious differences, defeated the Red Coats and won their independence.

This hour calls for us to unite. While I am sure we will struggle to do so, I am confident that as the battle lines become clear, we will rise to the occasion and focus on the mission we have in common. This is why I am excited to see projects like Sovryn and TBTC; mission-driven projects, true to our trustless values, bringing together the worlds of Bitcoin and Ethereum.

The higher stakes, the more intense the need for unity. 

At the Hot Gates, the Spartans were outflanked and massacred. At Marathon, however, they stood shoulder to shoulder with their arch-enemy, the Athenians. That day, free men won a victory for liberty that we benefit from to this day. Even the Spartans couldn’t HODL alone.

This is a guest post by Edan Yago. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Source: https://bitcoinmagazine.com/articles/the-sudden-unexpected-end-of-crypto-tribalism?utm_source=rss&utm_medium=rss&utm_campaign=the-sudden-unexpected-end-of-crypto-tribalism

Blockchain

Bitcoin sell-off over? Strong ‘buy the dip’ signal flashes for the first time in 5 months

Republished by Plato

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The price of Bitcoin (BTC) has dropped to the key $44,000-$45,000 support level on Feb. 28 for the third time in the past week.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

The BTC/USD pair briefly dipped below $44,000 on Bitstamp before paring some of the losses, bouncing back above $45,000 at the time of writing. 

‘Full rest’ for SOPR, funding rates

Some analysts have pointed out an uptick in miners’ selling as the reason behind the latest drop in price. 

Fortunately, the third retest of this key support level may have a silver lining for the bulls. Data analytics resource Glassnode noted that the daily Bitcoin Spent Output Profit Ratio (SOPR) has seen a “full reset.”

The SOPR essentially shows whether spent outputs are in profit or loss at the time of transaction. This key metric turned negative for the first time since September 2020. In other words, investors are now moving BTC at a slight loss on average, suggesting that profit-taking has abated, according to Glassnode. 

“In total, we saw an on-chain net realized loss of $243 million yesterday,” the analysts added.

“That is the lowest daily value since April 2020.”

Bitcoin funding rates. Source: Bybt.com

Meanwhile, popular trader Philip Swift, the co-founder of trading suite Decentrader and creator of the Golden Ratio multiplier method, also pointed out the SOPR crash.

He considers this a potentially bullish turnaround for BTC price in combination with last week’s reset of derivatives funding rates because such events have previously coincided with the start of new uptrends.  

“The SOPR has now reset (green on the chart) meaning that wallets selling are now selling at a loss,” he explained, adding:

“This is a strong ‘buy the dip’ signal in a bull market. This alongside derivative fundings having reset is bullish.”

BTC price vs. SOPR. Source: DecenTrader/Twitter @PositiveCrypto

The last time the SOPR flipped green was five months ago when Bitcoin was trading around $10,000. At the time, this was a key hurdle for BTC to trigger a new bull market. Since then, the price has surged more than five folds to new all-time highs of around $58,000. 

Nevertheless, many traders remain cautious as the market enters the month of March, which has historically been bearish for cryptocurrencies, and all markets in general. 

“I think March may be slow with a lack of confidence in traditional markets but overall I am bullish Bitcoin and expect significantly higher over the next three months,” said Swift in private comments. 

$44K-$45K remains the key level to watch 

In the meantime, Bitcoin traders are keeping a close eye on the $44,000-$45,000 level. Trader Willy Woo, for instance, says the $45K level is very strong support and expects any dips below this level to be bought up aggressively should they occur. 

Furthermore, researchers at on-chain analytics firm Santiment believe that the entire cryptocurrency market now depends on Bitcoin holding above this key level.

“It’s been a red weekend thus far, with most eyes on Bitcoin as it has rallied back vs. the climb altcoins were making,” they said, adding: 

Keep an eye on the $44k support level for BTC as an indication to monitor for all of crypto. As well as BTC’s on-chain activity. 

Source: https://cointelegraph.com/news/bitcoin-sell-off-over-strong-buy-the-dip-signal-flashes-for-the-first-time-since-september

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Blockchain

Ethereum, Tezos, Elrond Price Analysis: 28 February

Republished by Plato

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It was a bearish day for the crypto markets as Bitcoin dipped beneath the $45,000 mark. Ethereum, Tezos, and Elrond all registered losses over the past few hours as selling pressure mounted. Ethereum lost the $1437 level, while Tezos was on its way to test the $3.2 mark as support yet again. Elrond could see a bearish retest of $132, and a drop below $115 is likely to grind to a halt in the vicinity of $100.

Ethereum [ETH]

Ethereum, Tezos, Elrond Price Analysis: 28 February

Source: ETH/USD on TradingView

Ethereum dropped in value from $2040, bounced off $1437 to test $1691 as resistance before another drop past $1437. ETH was trading at $1330 at the time of writing and showed strong bearish momentum on the 4-hour chart.

On the 4-hour chart, the RSI stayed below neutral 50 to denote bearish sentiment remained strong. Losing the $1300 level will likely see ETH drop toward $1196.

It has been reported that Ether’s strong correlation to Bitcoin, Ethereum’s network congestion, dropping transaction number of transactions on the network, and transaction volume, are all contributing factors to the dropping value of Ether.

Tezos [XTZ]

Ethereum, Tezos, Elrond Price Analysis: 28 February

Source: XTZ/USD on TradingView

Tezos dropped below $3.76 over the past few days and repeatedly tested it as resistance while forming a range with its lower boundaries at $3.22. This range-bound trading activity for XTZ is likely to end with a move to the downside.

Bitcoin dropped beneath the $45,000 mark and over the next few days, the selling pressure could see BTC drop toward $42,000. This will likely see the altcoin market shed value as well, XTZ being no exception.

The OBV notes steady selling pressure and, even though $3.22 was defended multiple times, the sellers have been dominant. This is likely to result in XTZ dropping below $3.22 to visit $2.92 over the next few days.

Elrond [EGLD]

Ethereum, Tezos, Elrond Price Analysis: 28 February

Source: EGLD/USDT on TradingView

The 4-hour chart and fractals were used to give a better representation of the important points for EGLD over the past couple of weeks.  A descending channel pattern emerged, and recently the price attempted to break out above the channel.

However, it faced stiff resistance at $140 and was forced to drop beneath the $132 level of support- which is the 23.6% retracement for EGLD for its move from $26 to $216.

The Awesome Oscillator was above the zero line but, in the shorter timeframes, momentum was already rising in favor of the bears. A retest of $132 followed by a fall for EGLD can be expected over the next few days.


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Source: https://ambcrypto.com/ethereum-tezos-elrond-price-analysis-28-february

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How Bitcoin miners can help its price movement right now

Republished by Plato

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Following the massive drop in price over the past week, the Bitcoin market did hold on to the $47k price level for a while, but the support range eventually lost out to the bearish pressure and the coin currently trades around the $44k price range. From the peak of $58k, the largest cryptocurrency has fallen by over 17% in the past six days and despite the past few days’ increased bearish sentiment the coin may now be heading upwards as bullish momentum slowly creeps in.

Source: TradingView

The past week’s correction could have been the result of miners who were selling their Bitcoins since the end of 2020 when the digital asset was trading under $30k.

However, according to a market analyst, Lex Moskovski this selling from miners’ end has finally ended and accumulation was once again visible in the BTC market.

The above chart indicated that the miners were increasingly selling their Bitcoin for the past two months. The Miner net position change indicated long red bars until late January when the value of BTC hit close to $35k. However, as February kicked in and the market was seeing increased volatility in the price, the miners’ net position to sell had reduced and on 27 February it was showing a positive trend.

Apart from miners selling their BTC, the correction led to massive liquidations on exchanges and other platforms like Grayscale. The largest Bitcoin accumulator lost $2.6 billion in a single day when the correction set-in. Grayscale’s holdings of Bitcoin have now dropped from $32.832 billion to $30.724 billion, at the time of writing.

However, as the miners’ attitude towards the digital asset reverses we may the price of Bitcoin gain strength at the current level.


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Source: https://ambcrypto.com/how-bitcoin-miners-can-help-its-price-movement-right-now

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