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Top 5 Cryptocurrencies to Watch This Week: BTC, ETH, LINK, NEO, XEM

A short-term bottom for Bitcoin and altcoins may be confirmed if the bulls do not allow the recent lows to be broken during the next fall.

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The U.S. stock markets, gold, crude oil, and crypto markets have all corrected in the past week, which shows that traders booked profits in most asset classes. The total crypto market capitalization corrected from a high of above $394 billion to a low of about $313 billion, which is roughly a 20% correction.

This decline also led to a sharp fall in Bitcoin (BTC) futures open interest, which was down by $653 million on Sep. 3, suggesting squaring up of positions by a few professional short-term traders.

However, even after the fall, the trend in several major cryptocurrencies has not turned bearish because they are still trading above their respective 200-day simple moving average. Professional traders watch this moving average closely and it is generally considered that if the price stays above it, the trend remains positive.

Crypto market data daily view. Source: Coin360

Crypto market data daily view. Source: Coin360

Usually, every sharp fall is followed by a rebound because aggressive traders use the dip to buy. However, the bears who could not sell in the first fall wait to sell on relief rallies. If the next drop breaks below the recent lows, then it will suggest the start of a deeper correction.

Conversely, if the bulls can defend the recent lows and sustain the rebound, it will suggest that the correction might be over. The cryptocurrencies selected in this analysis are all trading above their 200-day SMAs and are attempting a rebound off their recent lows.

As the correction has been sharp, traders should watch the price action carefully before initiating any long positions.

BTC/USD

Bitcoin has failed to rebound sharply from the $10,000 level in the past three days, which suggests that the bears are selling on every relief rally. This suggests that the sentiment has turned from buy on dips to sell on rallies.

BTC/USD daily chart. Source: TradingView​​​​​​​

BTC/USD daily chart. Source: TradingView

If the bulls fail to push the price above $10,400 and sustain it, the bears will make one more attempt to resume the correction. If the BTC/USD pair sustains below $10,000, a drop to the 200-day SMA ($9,078) is likely.

This is an important support to watch out for because if the price breaks and sustains below this level, the selling could intensify further. The next support on the downside is $8,000 and then $7,000.

However, if the pair rebounds off the current levels and rises above $10,625, a move to $11,000 is likely. This is an important level to watch out on the upside because if the bulls can push the price above this it will suggest that the downtrend has ended.

BTC/USD 4-hour chart. Source: TradingView​​​​​​​

BTC/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls have not allowed the price to sustain below the $10,000 level, which suggests that they are accumulating at lower levels.

If the bears do not break the $10,000 support convincingly within the next few days, the possibility of a sharp rebound increases because the aggressive bulls will buy expecting that a bottom has been made.

A breakout or breakdown of the $9,835–$10,625 range is likely to start the next trending move. Until then, trading inside the range is likely to remain volatile.

ETH/USD

Ether (ETH) plunged and closed (UTC time) below the strong support of $366 on Sep. 5, which is a negative sign. The altcoin is currently attempting to rebound off $308.392, which is just above the 100- day SMA ($304).

ETH/USD daily chart. Source: TradingView​​​​​​​

ETH/USD daily chart. Source: TradingView

The bears will try to stall the relief rally at $377.053, which is the 38.2% Fibonacci retracement level of the most recent leg of the fall from the 52-week highs.

If the ETH/USD pair turns down from this level and breaks below $308.392, a drop to $288 is possible. A break below this support will be a huge negative.

Conversely, if the bulls can sustain the price above $366 or if they can arrest the next dip above $308.392, it will increase the possibility that the bottom has been made. That is likely to attract further buying, which could resume the up-move.

The upsloping moving averages suggest that this is only a correction and the medium-term trend still favors the bulls.

ETH/USD 4-hour chart. Source: TradingView​​​​​​​

ETH/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the decline has been sharp and the bears have sold aggressively on a pullback to the downtrend line.

However, the bulls are currently attempting to push the price above the downtrend line. If they succeed, it will suggest that the short-term selling pressure has reduced and that could result in a rebound to $366.

If the bulls can push and sustain the price above the $366–$377.053 resistance zone, it will suggest that the correction might be over.

LINK/USD

Chainlink (LINK) plunged to an intraday low of $9.10 on Sep. 5, which is just above the critical support at $8.90 and the 100-day SMA ($8.69). The sharp rebound off the support shows that the bulls have aggressively purchased at lower levels.

LINK/USD daily chart. Source: TradingView​​​​​​​

LINK/USD daily chart. Source: TradingView

Currently, the bulls are attempting to push the price above the 50-day SMA ($12.29). Above this level, the bears could again pose a stiff challenge at $12.89. If the LINK/USD pair turns down from either level, the bears will try to sink the price below the $8.90 support.

Conversely, if the bulls can push the price above $12.89, a move to the downtrend line is possible. A break above this level will suggest that the bulls are back in command and a rally to $17.7777 is likely.

LINK/USD 4-hour chart. Source: TradingView​​​​​​​

LINK/USD 4-hour chart. Source: TradingView

The long tail on the 4-hour candlestick that dropped to $9.10 shows that the bulls aggressively purchased at lower levels.

The bulls again stepped in to buy the next dip at $9.7155, which is a positive sign as it shows that traders are not waiting for lower levels to buy.

However, the bears are unlikely to give up without a fight as they will try to stall the recovery at $12.89. If the pair turns down from this level, the price might remain range-bound between $8.90–$12.89 for a few days before making a decisive breakout.

If the bulls can sustain the price above $12.89, it will be the first indication that the correction is likely over.

NEO/USD

The bears have not been able to sink and sustain NEO below the breakout level of $16.72441, which is a positive sign. This suggests that the bulls are not dumping their positions in fear.

NEO/USD daily chart. Source: TradingView​​​​​​​

NEO/USD daily chart. Source: TradingView

The 50-day SMA ($14.98) and the 100-day SMA ($12.89) are sloping up, which suggests that the medium-term trend remains bullish.

However, the bears are unlikely to give up without a fight as they will mount a stiff resistance at $18.75334 and again at $19.53099, which are 38.2% and 50% Fibonacci retracement levels of the most recent correction from the 52-week highs.

If the bulls again buy the next dip to the $16.72441 level aggressively, it will suggest that a short-term bottom might be in place.

Contrary to this assumption, if the bears sink and sustain the NEO/USD pair below $16.72441, the correction could extend to the 50-day SMA and then to the 100-day SMA.

NEO/USD 4-hour chart. Source: TradingView​​​​​​​

NEO/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that bears have been aggressively selling on any pullback to the downtrend line. If the pair turns down from this line once again, the bears will try to resume the correction by breaking below the $16.23586 support.

Conversely, if the bulls can push the price above the downtrend line, it will be the first sign of strength. This could attract buying from the aggressive bulls who will then attempt to resume the up-move.

XEM/USD

NEM (XEM) is attempting to rebound off $0.1023475, which is just below the 50% Fibonacci retracement level of the entire leg of the up-move that started in end-June. This suggests that the bulls are buying on dips, indicating positive sentiment.

XEM/USD daily chart. Source: TradingView​​​​​​​

XEM/USD daily chart. Source: TradingView

The rebound is likely to face resistance at $0.1413531, which is the intraday high of Sep. 5 but if the bulls can scale the price above this level, a retest of the recent 52-week high at $0.1690655 is possible.

Contrary to this assumption, if the XEM/USD pair turns down and breaks below $0.10, the correction could extend to the 61.8% Fibonacci retracement level of $0.0890120. A break below this support will be a huge negative.

XEM/USD 4-hour chart. Source: TradingView​​​​​​​

XEM/USD 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls did not allow the price to sustain below $0.105 levels but the relief rally is facing resistance at the 38.2% Fibonacci retracement of the most recent fall.

If the pair turns down from this resistance, the bears will once again try to sink and sustain the price below $0.105. If they succeed, the decline can extend to $0.0890120.

Conversely, if the bulls again buy the next dip aggressively, it will indicate strong demand at lower levels. If they can propel the price above the downtrend line, it will increase the possibility that the bottom might be in place.

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.

Source: https://cointelegraph.com/news/top-5-cryptocurrencies-to-watch-this-week-btc-eth-link-neo-xem

Blockchain

World’s First Bitcoin ETF Now Holds More Than 10,000 BTC

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World’s First Bitcoin ETF Records Stellar Growth, AUM Crosses Half A Billion Dollars

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The world’s first Bitcoin exchange-traded fund (ETF) has seen massive success in its first week. It has now surpassed the 10,000 BTC milestone for the first time as data from Glassnode shows. The on-chain data analytics firm has the ETF at 10,064 BTC at press time.

Canadian firm Purpose Investment Inc. became the first company to launch a Bitcoin ETF in the North American market. The ETF trades under the ticker symbol ‘BTCC’ and is trading at the Toronto Stock Exchange. It was an instant hit, recording close to $400 million on its first day. This ranked it as one of the top five ETF debuts in the North American market.

The great demand for Purpose’ BTC ETF is proof of pent-up demand in the market, the company’s chief investment officer believes. Speaking to Yahoo Finance, Greg Taylor claimed his company has an edge as it’s open to ordinary investors. Other similar products, including Grayscale’s Bitcoin Trust, are closed-end, only serving institutional investors. 

He stated, “A lot of people have wanted to get exposure to bitcoin but they haven’t really wanted to go through the hoops of opening up their own accounts or their own wallet to do so or trading some of the other closed-end funds. Having the ETF option I think has always been the holy grail out there and we’re happy to have it trading and we’re seeing some of the results of that pent-up demand.”

Taylor further revealed that the demand for BTCC is spread across jurisdictions. “It’s hard with an ETF to figure out exactly where the inflows are coming from, but we’ve had a lot of people reach out from around the world that want to get access to this product,” he remarked.

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World’s First Bitcoin ETF Now Holds More Than 10,000 BTC
Via Glassnode

First Bitcoin ETF Causing Ripples in the Market

Purpose’s Bitcoin ETF has already started causing ripples in the market, despite being around for just a week. One of the effects has been the cooldown in interest for Grayscale’s Bitcoin Trust. For the first time in five years, shares of the Trust traded at a discount.

GBTC shares plunged by 22% yesterday to close the day 3.8% below the value of the Trust’s underlying holdings. The shares have been trading at a premium since its launch in 2013. This premium shot up to 132% in May 2017 at its peak. As recently as mid-2020, this premium was as high as 40%.

Nate Geraci, the president of the advisory firm ETF Store believes this is due to the rise of competing products. He told Bloomberg, “Since the beginning of the year, we’ve seen the launch of multiple competing products. The unpleasant truth for GBTC investors is that competition erodes demand for the product, which can lead to a collapsing premium or even a discount.”

In Canada, the Purpose Bitcoin ETF’s popularity is forcing its rivals to drop their fees to compete. Evolve Funds Group was the second company to launch a Bitcoin ETF, with its product debuting just a day after that of Purpose. However, as Purpose has soared to over $600 million, Evolve Funds is at a mere $28 million. The latter has turned to lower the fees to attract investors.

Evolve lowered the management fee from 1% to 0.75%. Raj Lala, the CEO commented, “We are very pleased to provide investors with the most cost-effective bitcoin ETF today. Our bitcoin ETF allows investors to access physical bitcoin in a fully-regulated manner in their brokerage account.”


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DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Source: https://zycrypto.com/worlds-first-bitcoin-etf-now-holds-more-than-10000-btc/

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Token-based commodities DEX Mettalex launches on Binance Smart Chain and Ethereum

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Mettalex, a DEX focused on token-based commodities trading, announced today the launch of its decentralized commodities exchange on Binance Smart Chain and Ethereum’s Kovan testnet; with 20 available markets for traders to take tokenized long or short positions in using USDT.

Javelin Global Commodities, a leading trading firm of bulk commodities, will be among the first clients to use Mettalex’s platform to manage risk on commodities exposure.

“We understand firsthand the value that Mettalex can provide to derivatives trading in commodities. Mettalex provides a platform to bring transparency and liquidity to these markets which can be used by participants across the commodity value chain.”
– Peter Bradley, CEO of Javelin Global Commodities

On the Mettalex DEX, traders can use stablecoin collateral to open and close positions across eleven commodity markets, seven spread markets, Forex markets, and the top 100 publicly traded companies from the Financial Times Stock Exchange (FTSE) index.

With data-feeds powered by Chainlink and Fetch.ai oracles in addition to the Davis Index, Mettalex ensures that its position tokens track the most accurate reference price in a long (L) or short (S) exposure at settlement.

“The ability to hedge the numerous recyclables grades and specialty finished products that make for most of the infrastructure around us has long been a need in our industry. The current system provides the industry with less than a handful of instruments and the basis risk and costs are just unworkable for most companies. Mettalex is finally answering the call for a decentralized exchange that can list any commodity. We look forward to providing our price benchmarks on the Mettalex platform to give the manufacturing, demolition, and alloy producing sectors the precise hedging instruments they need.”
– Sean Davidson, CEO of Davis Index

All trades on Mettalex happen within a predetermined price band based on the asset’s historical volatility. The band allows getting exposure at only a fraction of the cost of the traded asset, effectively enabling leverage. Unlike other exchanges, on Mettalex, users can create the markets they need.

The prerequisite is a reliable oracle that the platform plans to make fully customizable. At present, the reference asset price is periodically fed into the system from multiple reference exchanges, including 1,400 proprietary price indexes for free-market recyclable metals and secondary alloys will be made accessible to commodity market participants for the first time.

“A critical byproduct of the Mettalex platform is the transparency it will bring to the pricing data around the world’s most valuable commodities. By making this type of market intelligence and the ability to trade more readily accessible, Mettalex aims to bring one of the oldest forms of trade in human history into the present century. With Mettalex we aim to align the incentives of traders, stablecoin liquidity providers, and physical commodity holders to create a one-of-the-kind tool that is accessible to anyone on this planet, 24/7/365.”
– Mettalex CEO, Humayun Sheikh

The markets now on dex.mettalex.com include:

  • Commodities (butter, steel, copper, iron, aluminum, gold, silver, zinc)
  • The Financial Times Stock Exchange (FTSE) index
  • Synthetic CeFi/DeFi index
  • Synthetic AAVE/COMP and LINK/BAND
  • Crypto and traditional baskets like BTC/TSLA and BTC/XAU
Source: dex.mettalex.com

Source: https://www.cryptoninjas.net/2021/02/26/token-based-commodities-dex-mettalex-launches-on-binance-smart-chain-and-ethereum/

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Why Etsy will not accept Bitcoin as payment ‘right now’

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Etsy Inc., which reported a strong revenue growth last year, alongside a surge in e-commerce amid the pandemic, does not intend to accept Bitcoin as payments on the leading e-commerce website, at least for now. According to President and CEO of Etsy, Josh Silverman until more people buy and also use the digital currency, he does not think that the Bitcoin payment integration will be very useful for the website.

However, the chief executive who admitted that he has held Bitcoin for the past six to seven years, believed that the asset can be “an interesting” store of value. In a recent interview with CNBC Squawk Box, Silverman explained his stance on the asset:

I’ve held Bitcoin for 6-7 years now on the theory that I think it can be an interesting stored value. 

It could be an interesting tender some day. We need a whole lot more people to buy it and own it before I think it’s really useful  

Although Etsy does not accept Bitcoins currently, users seem to have found a way around to accept crypto payments. A popular crypto influencer pointed out how some users make use of the ‘Other’ payment method as means to connect with users who will accept Bitcoin. Customers usually mention in a note that they prefer to pay in BTC and contact the customer directly with a Bitcoin payment address and amount. 

This goes to show that if the company were to integrate the asset as a payment option on its website, it could tap into a new market.

Moreover, the user base of cryptocurrencies is only growing, with 106 million global crypto users as of January 2021. A surge in crypto adoption has already influenced some institutions to integrate the payment network. As in the case of one Massachusetts-based hospital that set up a Bitcoin wallet to receive a donation of $800,000 BTC recently. 

In fact, many believe that firms like Tesla, MasterCard and the BNY Mellon Bank, which have already pushed Bitcoin toward mainstream adoption will attract others to mirror the firms’ BTC investment strategies. 


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Source: https://ambcrypto.com/why-etsy-will-not-accept-bitcoin-as-payment-right-now

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