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Too fast, too furious: Some major altcoins failed to match Bitcoin’s rally

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Since then, the price of Bitcoin has suffered a correction, and most of the crypto market followed. Bitcoin is currently sitting at just over $35,000, and while traders suggest the pullback to be a healthy correction required for Bitcoin to maintain its bullish momentum, some believe the cryptocurrency may plunge below the $20,000.

The Bitcoin price action has also been reflected in the altcoin market as it usually does, with many popular cryptocurrencies surging alongside BTC. Noticeably, Ether (ETH), the native token of the Ethereum platform, has doubled in value in the last month and is currently sitting at over $1,300.

While Bitcoin has blasted through its previous all-time high, multiple coins in the top 100 have yet to do so despite seeing substantial price surges. This may suggest that a new alt-season may be coming, especially as multiple DeFi tokens break into the top 20 market cap even as the direction of Bitcoin’s price remains uncertain. Jonathan Hobbs, the author of The Crypto Portfolio and a former digital asset fund manager, told Cointelegraph:

“Bitcoin dominance has started to drop against altcoins. While not yet a full-blown ‘alt season,’ the signs are certainly there for one. I would like to see Ethereum break the $1,500 level for a final alt season confirmation.”

While the latest crypto rally has taken the global cryptocurrency market capitalization to the $1-trillion mark, there have been a few notable cryptocurrencies that have failed to keep up with Bitcoin’s growth for different reasons.

Ripple and the law

After some bullish action in November, XRP’s price began to drop heavily on Dec. 22, following reports that the U.S. Securities and Exchange Commission was preparing to take legal action against Ripple, its CEO, Brad Garlinghouse, and co-founder Christian Larsen. Since the company has overcome other issues with regulators in the past, many hoped that the news would not amount to anything.

However, by Dec. 23, XRP had plummeted by 41%, and exchanges began delisting the cryptocurrency. By the end of December, XRP was delisted from major exchanges such as Coinbase, Binance US and OKCoin, with a few exceptions like Uphold and GateHub leaving the crypto for trading until the court decision. Currently sitting at $0.28, XRP has dropped around 47% in the last 30 days.

Keeping up with Ether

As Bitcoin rallied throughout the month of December and January, Ether has rallied alongside it. Since Dec. 18, Ether has grown substantially, although so far, it has barely managed to reach its all-time high. However, other smart contract-centric projects have failed to follow along even with Ether’s rally. These include NEM, EOS and Tron, which are all in the top 30 for the biggest monthly value losers in the top 100 cryptocurrency list by market cap.

While NEM has lost 21.6% of its value in the last 30 days, it did so after a considerable price increase during the month of November. EOS and Tron prices have dropped 11.6% and 2.69%, respectively. Both Block.one, the company behind the EOSIO ecosystem, and Tron have faced issues with regulation in the past, with the former receiving a $24-million fine from the SEC in October 2019 and the latter currently facing a lawsuit pertaining to its 2017 initial coin offering.

However, it seems that a more plausible reason as to why these projects are failing to grow alongside Bitcoin is that they are seen as direct competitors to Ether, which has had a great run in the past month and hosts most of the DeFi industry. Hobbs told Cointelegraph:

“Bitcoin and Ethereum have already proven themselves with real-world use and strong network effects. Bitcoin is digital gold. Ethereum houses over 95% of all DeFi smart contracts. I think that makes them less speculative than other digital assets right now.”

Monero, Dash, Zcash and other privacy coins

Privacy coins also came under regulatory fire in 2020. On Jan. 1, U.S. exchange Bittrex announced that it would be delisting Monero (XMR), Zcash (ZEC) and Dash, the three biggest anonymity-centric cryptocurrencies on the market. While unlisting these cryptocurrencies was an initiative by Bittrex, it does not come as a complete surprise, especially as regulators continue to crack down on crypto.

On Dec. 23, the U.S. Treasury Department’s Financial Crimes Enforcement Network issued a proposed rule change, in which it stated that anonymity-enhanced cryptocurrencies, like those mentioned above, are becoming more popular and are believed to be more closely associated with illicit activity such as money laundering and ransomware attacks.

As frequent hacks on decentralized finance and other sets of crypto continue to occur, with the funds being disposed of in crypto exchanges, it also makes sense that the venues would want to disassociate themselves from untraceable money laundering and to comply with any upcoming regulation.

As a result, trust in privacy coins seems to be shaken. Monero and Dash rose 0.79% and 3.79%, respectively, in the last 30 days. While these numbers don’t seem bad, they pale in comparison to Bitcoin’s price action. According to Dr. Octavius, co-founder of DeFi protocol OctoFi, the growth of the DeFi space may help these types of coins survive any upcoming regulatory hurdles:

“For many of these projects, their days as a ‘product’ are likely numbered, but the opportunities to pivot toward existing as ‘features’ are certainly plentiful. […] Those who value privacy will go to great lengths finding it, and so long as there’s permissionless access to it, projects who enable it can still thrive.”

CeFi tokens

Another predominant type of token that seems to have stayed on the sidelines during the BTC rally was tokens issued by centralized exchanges, including Nexo, Unus Sed Leo (LEO) and Crypto.com Coin (CRO). While the fundamental value proposal for these tokens remains the same, they are somewhat tied into the success of the venues they are associated with, being used mostly for discounts on trading or lending fees or other perks.

With DeFi on the rise, it seems likely that people would rather speculate on DeFi-related tokens or invest in the yield farming protocols themselves, which could account for the slow price action on these assets. LEO has dropped 1.66% and Nexo has surged by 11.3% in the last 30 days.

What’s next for alts?

While it is unclear what the road holds for coins like XRP, Dash, Monero and ZEC, whose future seems to be heavily tied to upcoming regulation, it looks like there’s a general shift in interest taking place when it comes to altcoins, especially as multiple DeFi tokens begin to take their place in the top 20 market cap list.

As for smart contract platforms, it also seems unlikely that Ethereum will be dethroned soon, especially as the network continues to make strides toward the full release of Eth2. Not all Ethereum competitors are doing badly, however, as for example, the price of Near Protocol (NEAR) has recently soared 106% amid the current DeFi craze.

Some have noted that the current bull market is likely to do away with speculative coins, as more value is now concentrated on Bitcoin and Ethereum, a clear divergence from what was observed in the 2017 rally that took BTC to its previous all-time high.

On Dec. 16, Bitcoin’s price breached its previous all-time high of just over $19,500, previously reached on Dec.17, 2017, according to data from CoinMarketCap. Since then, Bitcoin (BTC) has seen an incredible bull run, which has led the cryptocurrency to new heights, having reached an all-time high of $41,941 on Jan. 8 and rallying by over 115% during this time.

Source: https://cointelegraph.com/news/too-fast-too-furious-some-major-altcoins-failed-to-match-bitcoin-s-rally

Blockchain

ETH Developers Calculated How To Defuse The Difficulty Bomb

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ETH developers calculated how to defuse the difficulty bomb because if they leave it untreated, they will slow down the network as we can see more in our Ethereum news today.

Ethereum’s encoded difficulty bomb is set to explode this summer and James Hancock as well as Tim beiko said that the ETH developers calculated the time needed to delay the bomb and this could the last time the developers need to take that action. Ethereum developers agreed on Friday how to delay the difficulty bomb ad if that is left untreated, the entire network could be slowed down. The difficulty bomb is an old piece of code that makes mining on ETH slower and less profitable over time by increasing the lag between the production of blocks.

Ethereum 2.0 switches the network from proof of work as a way of validating transactions with powerful mining computers to Proo of Stake which rewards the ones that pledge the coins to the network. It takes an average of 13 seconds to mine a block on ETH right now and without delaying the bomb, it could take more than 20 seconds to validate the block by the end of the year. Ethereum developers agreed on how many blocks were quite necessary to delay the bomb until December. The calculation for the delay was proposed by the ETH core developers James Hancock as he said:

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“The bomb’s always there, and we defuse it by turning the blocktime back just for the bomb.”

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The block time chart on Etherscan. Annotated by James Hancock for Decrypt.

He later said that the proposal will delay the bomb by 9,700,000 blocks. Tim Beiko, the ETH core developer also said that the developers dismissed a proposal to delay the bomb next spring but that won’t be necessary. The developers expected that by December, the network will update to allow the ETH 1.0 the network that relies on PoW to communicate with ETH 2.0 as the new network relies on PoS and this is known as the Merge:

“If the Merge is ready by December, we won’t need to do anything about the bomb because we will move away from mining entirely.”

If the merge plans remain unimplemented, the Shanghai fork is expected to go live and will delay the bomb once again. The Bomb has been delayed three times so far.

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]

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.dcforecasts.com/ethereum-news/eth-developers-calculated-how-to-defuse-the-difficulty-bomb/

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Blockchain

VeChain price prediction: VeChain prepares to move higher?

TL;DR Breakdown VET retests 0.618 Fib retracement level. Closest major resistance at $0.22. Closest support at $0.16. Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week.  The overall market trades in the red today as Bitcoin has […]

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TL;DR Breakdown

  • VET retests 0.618 Fib retracement level.
  • Closest major resistance at $0.22.
  • Closest support at $0.16.

Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week. 

VeChain price prediction: VeChain prepares to move higher? 1
Cryptocurrency heat map. Source: Coin360

The overall market trades in the red today as Bitcoin has lost almost 2 percent, while Ethereum trades with a 5 percent loss. Solana (SOL) is one of the best performers as it trades with a gain of 15 percent. Alternatively, Polkadot (DOT) is among the worst performers, with a loss of almost 9 percent over the last 24 hours.

VET/USD opened at $0.172 today after a bearish push yesterday. Over the past hours, VET/USD retested the local high at $0.19, from which the market moved lower once again and currently looks to set another higher low.

VeChain price movement in the last 24 hours

The VET/USD price moved in a range of $0.1701 – $0.1925, indicating a moderate amount of volatility. 24 hour trading volume has increased by 9.5 percent, totaling $1.7 billion. The total market cap trades around $15.5 billion, resulting in a market rank of 17th.

VET/USD 4-hour chart – VET consolidates in an increasingly tighter range over the past days

On the 4-hour chart, we can see bulls picking up any further selling pressure around the $0.175 mark, indicating that another slightly higher low will be set.

VeChain price prediction: VeChain prepares to move higher?
VET/USD 4-hour chart. Source: TradingView

Overall the market continues retracing from the $0.25 swing high set on the 7th of May. A total loss of 35 percent was seen over several days, indicating that further selling pressure is likely exhausted.

Currently, the VeChain price action builds a base from which to move higher over the next week. Both a higher low and a lower high were established over the past 24 hours, indicating an increasingly tighter range. Therefore, once VET/USD breaks above the $0.19-$0.195 mark, we expect the market to rapidly move forwards to the next major resistance target around $0.215 – $0.22. From there, bulls will likely pick up momentum and push the market towards the current all-time high resistance around $0.27-$0.28.

Alternatively, Vechain cannot move any higher and breaks below the current local swing lows around $0.17, we should see another push lower over the next 24 hours. In this scenario, VET/USD will likely continue moving lower next week towards the next major support area around $0.12-$0.13.

VeChain Price Prediction: Conclusion 

VeChain price prediction is bullish as the market continues to consolidate in an increasingly tighter range after a sharp drop earlier this week. Therefore, we expect VET/USD to push higher early next week to regain some of the loss.

While waiting for the Vechain price action to reverse, read our guides on other great altcoins – Monero, Ethereum Classic, and Ripple.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Source: https://www.cryptopolitan.com/vechain-price-prediction-2021-05-16/

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Blockchain

Bitcoin Price Analysis: BTC Breaks Long Term Trend As Tesla Ditches It

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Bitcoin has broken out of a long 3 month range of $10,000. After Elon Musk announced Tesla will no longer be accepting BTC due to environmental reasons, BTC broke its major support of $55,000 and quickly fell over 15%. BTC is now is now in scary waters. 

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While looking at the chart, BTC has broken a long term trend that has been held for nearly 6 months. This is not a good sign as there is much FUD spreading about Bitcoins environmental impact. BTC must hold major support range of $46,500-$48,000 or we can experience a large fall to $40,000. As of now, the 150MA has held the price of BTC as it touched this moving average for the first time in 6 months. 

Bitcoin Price Analysis: BTC/USDT 1 Day Chart

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If BTC can break above $48,000 and hold, there will be a decent revival to $51,400. In the case that BTC holds this resistance, next up is $54,400. BTC has grown over 1000% in a year. With this being said, there is a good chance more downside might occur before BTC resumes a bullish uptrend.

While looking at the Stochastic RSI, we can see that strength has reset to oversold levels. If the strength can bound above 30, expect a revival to minimum $51,400. The regular RSI also confirms a small bullish upswing as it has printed a bullish divergence. This occurs when price makes a Lowe low but RSI makes a higher low. 

BTC intraday levels 

  • Spot rate: $48,100
  • Trend: Bearish
  • Volatility: High
  • Support: $46,400
  • Resistance: $48,000

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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Source: https://coingape.com/btc-breaks-long-term-trend-as-tesla-ditches-it/

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