Investors in Davos Separate Bitcoin and Blockchain, Claim BTC Will go to Zero

As the World Economic Forum (WEF) Continues in Davos, Switzerland, and the who’s-who of finance and politics enjoy $40 hot dogs, there is a significant amount of negative commentary coming from investors and analysts regarding Bitcoin (BTC) and cryptocurrencies.
Most recently, one prominent investor drew a stark line between blockchain and Bitcoin, noting that he strongly believes in the future of the former, while disregarding the latter as a pseudo-currency that will likely “go to zero.”
Davos Not Bitcoin Friendly
The recent comments came from Jeff Schumacher, the founder of BCG Digital Ventures – a blockchain-focused investment firm – who told CNBC that although the Bitcoin as a technology is interesting, its value as a currency is null.
“I do believe it will go to zero. I think it’s a great technology but I don’t believe it’s a currency. It’s not based on anything,” he bearishly noted.
Another prominent investor who was on the CNBC panel, Glenn Hutchins, the chairman of North Island, shared a similar sentiment, claiming that his focus as an investor remains on Blockchain technology.
“I am much less interested in investing around bitcoin as a currency unit or a currency equivalent, or even the blockchain as an accounting ledger. I am thinking much more about the protocols. In other words, what is the underlying protocol going to do as a consequence of which, which tokens are valuable or not,” Hutchins explained.
Bitcoin and Blockchain are Thoroughly Intertwined  
Although these investors aren’t excited about Bitcoin, they are neglecting to recognize that Bitcoin and blockchain are largely intertwined with one another.
While giving a talk regarding the relationship between Bitcoin and blockchain, Andreas Antonopoulos said that blockchain cannot stand strong on its own without BTC, defining blockchain as “Bitcoin with a haircut and a suit you parade in front of your board.”
“Blockchain is one of the four foundational technologies behind Bitcoin and it can’t stand alone. But that hasn’t stopped people from trying to sell it. Blockchain is Bitcoin with a haircut and a suit you parade in front of your board. It is the ability to deliver sanitized clean comfortable version of the blockchain of Bitcoin to people who are too terrified of actually disruptive technology,” Antonopoulos explained.
Another popular figure within the cryptocurrency community, Joseph Young, referenced the recent Davos comments regarding blockchain being successful while Bitcoin fails, equating it to saying, “Airplanes will go to zero while engines have potential.”

Airplanes will go to zero while engines have potentialhttps://t.co/w0gzzPPVAi
— Joseph Young (@iamjosephyoung) January 23, 2019

Furthermore, many prominent financial analysts who are not heavily involved in the cryptocurrency industry have dismissed the “BTC will go to zero” thought line.
Mohamed El-Erian, the chief economic advisor at Allianz, discussed cryptocurrencies late last year, saying that cryptocurrencies will survive their current bear market.
“I think cryptocurrencies will exist, they will become more and more widespread, but they will be part of an ecosystem. They will not be dominant as some of the early adopters believed them to be,” he explained.
Although cryptocurrencies are still seen as “fake money” in much of the traditional financial industry, as they gain more widespread adoption they will also garner greater respect from the financial industry as a whole.
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Analyst: Recent Bitcoin Price Action May Confirm BTC is Nearing a Long-Term Bottom

Bitcoin (BTC) and the general cryptocurrency markets have stabilized following the recent bout of volatility they experienced this past weekend. Yesterday, however, Bitcoin’s price quickly dropped to lows of $3,550 on the aggregated markets before sharply surging back towards its current levels.
One analyst believes that this drop and surge, albeit relatively small, is the result of a confluence of factors that could suggest Bitcoin is nearing a long-term bottom.
Recent Bitcoin (BTC) Volatility Further Confirms Current Trading Range
At the time of writing, Bitcoin is trading down nominally at its current price of just above $3,600. After trading choppily yesterday, Bitcoin rapidly dropped into the low $3,500 region for an incredibly short amount of time before quickly surging to highs of $3,620.
Bitcoin has been bouncing in the low-$3,500 range for the past couple of weeks, solidifying this price level as a strong region of support. It is important to note, however, that the resulting bounce after BTC touches this price region becomes smaller each time it visits it, which could mean it is weakening.
Mati Greenspan, the senior market analyst at eToro, discussed Bitcoin’s latest price action in an email today, saying that the multiple factors likely behind BTC’s recent drop and surge could signal that BTC is nearing its price floor.
“What’s interesting about this graph is the role of the key level of $3,500. As we’ve been discussing, bitcoin has been trading in a tight range between $3,500 and about $4,100…So when the downside broke, it very likely took out a lot of stop losses, causing a chain reaction of stops and liquidations. What’s exciting about yesterday’s move is that the direction was quickly reversed and in the aftermath, we even saw a mini rally. This is a very positive sign and could very well indicate that we’re at or nearing bitcoin’s price floor,” Greenspan explained.
Although this sentiment may appear to be overly bullish considering that the cryptocurrency’s recent price movements are miniscule compared to months and years past, another popular cryptocurrency analyst generally agrees with Greenspan’s assessment.
Cred, a popular analyst on Twitter, discussed the sharp downwards move and resulting bounce, saying:
“$BTC Price finally traded to 3430 support and bounced. Reclaiming/establishing support above the blue level (3560s) is bullish IMO. This has triggered a long setup for me, I’ll jump out if the level rolls over.”

$BTC
Price finally traded to 3430 support and bounced.
Reclaiming/establishing support above the blue level (3560s) is bullish IMO.
This has triggered a long setup for me, I'll jump out if the level rolls over. pic.twitter.com/zt8Gpu04I5
— Cred (@CryptoCred) January 23, 2019

Altcoins Trade Mostly Flat
Bitcoin’s recent bout of volatility has carried over into the altcoin markets, and today the markets are experiencing a mixed trading session.
Altcoins are trading mostly flat today following the market’s recent bout of volatility.
At the time of writing, Bitcoin Cash is the best performing major cryptocurrency, as it is currently trading up over 4% at $134. Yesterday, Bitcoin Cash fell to lows of $120 before rallying towards its current price levels.
Ethereum has dropped slightly over a 24-hour trading period and is trading down nearly 1% at its current price of $118.3.
XRP has also dropped today and is presently down 0.6% at $0.3177.
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BOE Advisor: Crypto Fails Fundamental Tests, But Banks Face Growing Competition from FinTech Companies

It’s no secret that those who are heavily involved in the world’s traditional banking systems have a disdain for crypto, likely because of the many ways the relatively young technology challenges the traditional notions of banking.
While offering a somewhat cliché opinion about the cryptocurrency markets, Huw van Steenis, the senior advisor to the Bank of England Governor Mark Carney, said that cryptocurrencies fail fundamental tests that mark a solid and successful financial tool.
Although this assessment is dreary, the ever-growing innovation of FinTech companies is leading many traditional banks to see a growing amount of competition, much of which is coming from crypto-friendly companies like Robinhood and Revolut.
Van Steenis: I’m Not Worried About Cryptocurrency
Many proponents of cryptocurrency believe that it could one day drastically alter the way the world’s traditional financial systems, including banking, work. The nature of decentralized currencies, like Bitcoin, would shift a significant amount of power away from institutions and into the hands of individuals if they were to be widely adopted on a global scale.
That being said, Van Steenis told Bloomberg in a recent interview at Davos, Switzerland, that he isn’t worried at all about cryptocurrencies posing a threat to traditional financial institutions because they “fail the basic tests of financial services.”
“I’m not so worried about cryptocurrencies. They fail the basic tests of financial services. They’re not a great unit of exchange, they don’t hold value, and they’re slower,” Van Steenis explained.
FinTech Companies Becoming Competitors to Traditional Banks
Revolut was just recently granted a European Banking License by regulatory authorities.
Van Steenis further added that the Bank of England’s (BOE’s) biggest concern at the moment is how to regulate new, technology-based, entrants to the banking system.
Examples of FinTech companies that are entering the banking industry and are rapidly changing the way customers interact with banking services are Robinhood and Revolut, who are both rapidly expanding their offerings of traditional banking services with a digital twist.
Revolut was just recently granted a European Banking License by regulatory authorities, which will allow them to offer Europe-based customers a significant amount of digital banking services typically found at traditional institutions.
It is important to note that both Robinhood and Revolut offer users a gateway to purchase a variety of cryptocurrencies. Presently, Revolut offers users the ability to gain exposure to five cryptocurrencies, including Bitcoin, Bitcoin Cash, Litecoin, Ethereum and XRP.
As these digital banking services continue gaining traction and expanding their customer base, it will likely introduce a significant amount of investors to cryptocurrencies, which will further validate their usefulness as both tools and investments.
Van Steenis said that if traditional banks fail to innovate and digitalize as quickly as their FinTech-based counterparts, they could lose out on customers.
“What I love when meeting with Fintechs is their obsession with customers. The challenge is will they get customers before the traditional banks can innovate,” he said.
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Bitcoin (BTC) Climbs Slightly as Crypto Markets Experience Mixed Trading Session

The past several days have been particularly volatile for the cryptocurrency markets, with Bitcoin (BTC) surging to highs of nearly $3,750 on Saturday before fully retracing to lows of $3,550. Despite this volatility, Bitcoin has been able to hold $3,550 as a level of support and has led the entire crypto markets to rise slightly today.
Analysts are now saying that the market’s ability to hold above its recently established support levels may lead to further gains in the near future.
Bitcoin (BTC) and Crypto Markets Hold Steady
The recent volatility the crypto markets have experienced put their recently established support levels in jeopardy, but they have been able to stabilize above these key levels.
At the time of writing, Bitcoin is trading up less than 1% at its current price of $3,600. Over the past few weeks, BTC has bounced each time it entered the $3,500 region, signaling that buying pressure exists at this price level.
Similar buying pressure has been seen for most major altcoins, which have all established certain levels at which they see strong support.
Trading Room, a popular cryptocurrency analyst group on Twitter, discussed these support levels earlier today, noting that Bitcoin, Litecoin, and Ethereum could all see a bounce if they are able to continue holding steady above their respective levels of support.
“$BTC $ETH & $LTC are holding Key Support Area… Next Target 100 & 200 MAs on Topside (Moving Downwards)… Check #Bitcoin #Ethereum #Litecoin Targets if we get that bounce… I am not gonna speculate on topside breakout or downside breakdown. Will react based on Breakout/Breakdown,” they explained.
Furthermore, Trading Room said in a later tweet that they will only enter new long positions for the aforementioned cryptocurrencies if they are able to break above key price levels by the end of the day.
“All key levels holding across $BTC $ETH $LTC… Price tried to break below key support but violently rejected so far. However will re-enter Longs only after we get a daily candle close above: 3675 #Bitcoin… 123.50 #Ethereum… 32.15 #Litecoin… Trend is your friend, allow it to develop,” Trading Room said.

All key levels holding across $BTC $ETH $LTC
Price tried to break below key support but violently rejected so far. However will re-enter Longs only after we get a daily candle close above
3675 #Bitcoin123.50 #Ethereum32.15 #Litecoin
Trend is your friend, allow it to develop https://t.co/xpT00k5CMx
— Trading Room (@tradingroomapp) January 22, 2019

Altcoins Rise Slightly
Most major cryptocurrencies have risen slightly in price today.
Most major altcoins are trading up marginally today.
At the time of writing, Ethereum is trading up over 1% at its current price of $119.1. Ethereum has climbed slightly from its recent lows of $115 that were set earlier today but is down from its weekly highs of nearly $126.
XRP is trading flat today at its current price of $0.3198. Earlier today, XRP dropped to lows of $0.314 before quickly bouncing back to its current price levels.
Bitcoin Cash is one of today’s best performing altcoins, as it is currently trading up just under 6% at $130. Bitcoin Cash clearly has strong buying support at $118, as this was the price at which it surged after touching it earlier this morning.
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Crypto Markets Near Weekly Lows Following Weekend Volatility

This past weekend was particularly volatile for the crypto markets, which surged on Saturday before fully retracing on Sunday. The resulting losses have carried over into Monday, with most major altcoins trading flat or down slightly today.
Most altcoins are closely tracking Bitcoin’s price action, and one prominent analyst thinks that most major cryptocurrencies are looking slightly bullish on lower time frames.
Crypto Markets Could Be Bullish in the Short-Term
At the time of writing, Bitcoin is trading down marginally at its current price of $3,580, which is just slightly above its weekly lows of $3,570.
On Saturday, the crypto markets surged as Bitcoin jumped to $3,750. Unfortunately, this surge was short-lived and fully retraced on Sunday when the markets sharply dropped to lows of $3,550.
Since then, the markets have been trading sideways, and most major altcoins are currently trading down. Despite this, one analyst thinks that most major cryptocurrencies are bullish in the short-term, which could mean that they will soon see a small relief rally.
In a recent tweet, Mayne – a popular cryptocurrency trade – noted that he is not shorting Bitcoin, Ethereum, or XRP at their current prices, and is going to wait until they reach their relative points of resistance before opening new short positions.
“$BTC $ETH $XRP Back to the charts… I am not shorting any of these pairs here, stop runs until proven otherwise. HTF is bearish and I will short a break down of the key support levels they are all sitting on. Until then, looking slightly bullish on the LTFs,” he explained.
Mayne later said that he is waiting for Bitcoin to reach the low-to-mid $3,600 region before he opens new short positions.
“$BTC Going to look for a short up at the grey block if we get there. Reaction after this weekend’s dump looks bullish on the LTF so no reason to short down here. Expecting a bit of bullish relief intra-week,” he said.
A similar sentiment was echoed by Hsaka, another popular cryptocurrency trader, who recently tweeted that he is neutral on Bitcoin’s price action following the recent drop, and that he is currently holding open positions in multiple altcoins including Cardano (ADA) and Bitcoin Cash (BCH).
“$BTC 1D (01/20/19) Yesterday’s sell the rally analysis played out like a beauty • Bounced before the 3430 support level • Took out lows (green dashed) of this consolidation Neutral here, not shorting into HTF support. Covered my BTC short, holding ADA and BCH.”
Altcoins Drop Slightly After Weekend Volatility
Most major altcoins have dropped slightly today and are closely tracking Bitcoin’s price action.
At the time of writing, Ethereum is trading down 1.6% at its current price of $117.5. This past Saturday, Ethereum surged to highs of over $125 before plunging to lows of $116. Ethereum is currently trading just slightly above its weekly lows.
XRP is currently trading down 0.3% at $0.319. XRP is down from its weekly high of $0.334, which was set this past Saturday, and is up slightly from its weekly low of $0.317, which appears to be a level of relative support for the cryptocurrency.
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Analyst: Bitcoin (BTC) Support Level at $3,550 Weakening After Volatile Weekend

Bitcoin (BTC) is currently coming off of an incredibly volatile weekend where it surged to highs of $3,750 on Saturday before retracing to lows of $3,550 on Sunday. Although nothing fundamental drove this volatility, it is now becoming increasingly common to see volatility over the weekends, which is primarily due to the decline in trading volume.
This recent volatility has further confirmed Bitcoin’s current trading range, which analysts believe is gradually becoming weaker.
Bitcoin Drops Below $3,600
At the time of writing, Bitcoin is trading down 0.4% at its current price of $3,580. BTC is currently trading just a hair above its 24-hour lows of $3,570, which were set earlier this morning.
On Saturday, Bitcoin surged to highs of $3,750, which analysts believe was a significant move as it put BTC in a higher trading range between $3,700 and $4,100. Despite this, bulls were not able to muster up enough upwards momentum to propel the cryptocurrency any higher, which led it to drop significantly on Sunday.
On Sunday, BTC sharply fell from $3,730 to $3,590, from which it has experienced a choppy trading session. This recent trading activity has further validated $3,550 as a strong level of support for the cryptocurrency.
Mati Greenspan, the senior market analyst at eToro, previously speculated that BTC was caught in a trading range between $3,550 and $4,200, which was first confirmed on January 13th when Bitcoin fell to lows of exactly $3,550 before bouncing to $3,700.
“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200… Movements within a range can sometimes be sudden like we saw yesterday, but unless there’s a breakout of the key levels there really isn’t much to write home about,” Greenspan said in an email from earlier this month.
This recent drop has led the overall cryptocurrency market cap to shed over $6 billion from its weekend highs.
Analyst: BTC $3,550 Support Growing Weaker
The validity of this hypothesized range was further confirmed over this weekend, as Bitcoin has once again respected $3,550 as a level of support. However, DonAlt, a popular cryptocurrency analyst on Twitter, said that if this level is hit again it will likely be broken.
“$BTC update: Perfectly responded to the drawn level. 3500 has acted as support 3 times already if it is hit another time I’d expect it to break. Finally approaching a level (3400) that I might trade again. Until then still sitting tight fully hedged,” DonAlt explained.
It is important to note that analysts also believe that Bitcoin is currently caught in a much wider trading range over the long term between $3,000 and $5,000, so if $3,550 is broken it will likely lead to a move towards $3,000, where significant buying pressure currently exists.
“If we zoom out…we can see that the overall range that we’re in is from $3,000 to $5,000 per coin,” Greenspan further noted.
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Bitcoin: BTC Sinks Below $3,600, Nears Bottom of Recently Established Trading Range

Bitcoin (BTC) has failed to maintain its recently established position in the $3,700 region, which has led it to drop over 4% today. Bitcoin’s latest downwards leg has led the entire crypto markets to drop, and most altcoins are currently trading down around 4%.
Bitcoin is now nearing the bottom of its previously established trading range between $3,550 and $4,200, which, if the former price is to be broken, could lead to another, much larger, drop.
Bitcoin Plunges Over 4%
Yesterday, Bitcoin surged to highs of over $3,750, which appeared to many analysts to be an important price level that would lead to a further surge into the low-$4,000 range. Despite this, BTC’s bulls were not able to muster up enough buying pressure to push it higher, and the bears have taken control of today’s price action.
At the time of writing, Bitcoin is trading down 4.2% at its current price of $3,590, down from its 24-hour highs of $3,750.
Mayne, a popular cryptocurrency analyst on Twitter, discussed the cryptocurrency’s latest drop, noting that Bitcoin’s latest jump didn’t have a significant amount of buying pressure, which is why today’s full retrace was not entirely unexpected.
“$BTC… Discussed this one in the stream yesterday, to me Friday nights move looked just like that move to 4k Jan 6th. Thin and a liquidity grab that was fully retraced. BTC now back at the last HTF support before the lows,” Mayne explained.
Cheds Trading, another popular cryptocurrency analyst, also said in a recent tweet that if Bitcoin’s bulls fail to provide some buying pressure, things are going to get “ugly.”
“$BTC 12 hour – Bulls better show up quickly or this is going to get ugly,” he said.
BTC Nearing Bottom of Established Trading Range
Mati Greenspan, the senior market analyst at eToro, previously noted that he believes Bitcoin is caught in a relatively tight trading range between $3,550 and $4,200 within a much larger range between $3,000 and $5,000.
“As we’ve been discussing since mid-November, the current range is from $3,000 to $5,000… It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200,” Greenspan explained.
His theory regarding the smaller trading range was validated last Sunday when Bitcoin’s price swiftly bounced after touching lows of $3,550, but now Bitcoin is once again nearing this support level, which, if it is broken, could lead to a further move down towards the bottom of the larger trading range at $3,000.
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Crypto Markets Surge as Bitcoin Jumps Above $3,700

The crypto markets are in the process of wrapping up a volatile week on a positive note, as virtually all major altcoins have surged today after Bitcoin jumped nearly 3% into the mid-$3,700 price region.
Although Bitcoin is currently leading the markets, if it is able to stabilize at, or above, its current price levels, it could mean that the crypto markets will see further gains as the week goes on.
Bitcoin Jumps Nearly 3%, Leading Crypto Market Surge
At the time of writing, Bitcoin is trading up just under 3% at its current price of $3,750. Last weekend, Bitcoin fell to lows of $3,550, which led to a sharp upwards move this past Monday to highs of just over $3,700.
Although Bitcoin surged to over $3,700, bulls were not able to gain enough upwards momentum to propel the cryptocurrency towards $4,000, and its price gradually drifted down as the week progressed.
Prior to this morning’s price surge, one popular cryptocurrency analyst on Twitter, called Cred, noted that he will be adding to his Bitcoin buy positions between $3,700 and $3,840 on the condition that it was able to break above $3,700, which had previously turned into a level of relative resistance.
“$BTC… Very compressed price action following the high set on Monday. My plan is straightforward: Price below & finding resistance at $3,560s I’ll look for sells targeting $3,430s. Breakout & price accepted above $3,700s I’ll be a buyer until $3,840s,” he explained.
If Cred’s assessment of Bitcoin’s current price trend is correct, another upwards move could be right around the corner.
Most Altcoins Surge 3% or More
Over the past week, most altcoins have been gradually drifting lower, which is partially due to the bout of sideways trading Bitcoin had experienced since its volatile trading session earlier this week.
Today’s price surge has allowed virtually all major altcoins to recover at least some of their recent losses, and most cryptocurrencies are currently trading up 3% or more.
At the time of writing, XRP is trading up 2.7% at its current price of $0.3325. Last Sunday, XRP fell to lows of $0.317 before quickly climbing to $0.337 on Monday. From here, XRP gradually drifted to lows of $0.322 before rising to its current price levels.
Ethereum is trading up over 3% at its current price of $124.63. Ethereum has seen a relatively volatile week, partially due to drama surrounding its highly anticipated Constantinople hard fork, which was delayed after a security flaw in one of the improvement proposals was discovered.
Litecoin is one of today’s best performing altcoins and is trading up 5.1% at its current price of $32.72.
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Analyst: Bitcoin Price Must Get Above $3,700 in Order for Crypto Markets to Surge

Although this week was off to a volatile start, as the days went on Bitcoin began finding increased stability in the $3,600 region. This stability has led to a bout of sideways trading for the entire crypto markets, which have drifted down slightly today.
Now, one prominent crypto analyst believes that Bitcoin needs to trade above $3,700 for an extended period of time in order for the entire market to climb higher.
Bitcoin Stuck Below $3,700
At the time of writing, Bitcoin is trading up nominally at its current price of $3,650. Ever since BTC surged to highs of $3,720 this past Monday, it has struggled to stay above this price, which may prove to be significant for future price movements.
Analysts have previously noted that Bitcoin is currently stuck in a trading range between $3,550 and $4,200, which has so far been validated by the crypto market’s recent price action.
Recently, Mati Greenspan, the senior market analyst at eToro, discussed this range, saying:
“As we’ve been discussing since mid-November, the current range is from $3,000 to $5,000… It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200…”
Luke Martin, another popular cryptocurrency analyst on Twitter, shared his thoughts regarding Bitcoin’s current price action in a recent tweet, noting that if BTC can break above $3,700, and trade above this price for an extended period of time, it will open the gates for another leg up to approximately $4,100, which is near the top of the aforementioned range.
“$BTC battling to reclaim the range all week. If price can get back above 3700 I’m more excited about alt positive momentum continuing,” Martin explained.
This sentiment is shared by another cryptocurrency analyst, John Pearlstone, who recently said that he believes BTC could soon see a price surge if it is able to continue trading above $3,500, which could lead to a price target in the $5,000 range.
If Bitcoin is able to surge above $4,000, it will likely lead to a rally in the altcoin markets.
Cboe Analyst: Bitcoin and Crypto Volatility Could be on the Rise
Although Bitcoin has been trading sideways for the past couple of days, Kevin Davitt, senior instructor at the Cboe, told MarketWatch that trends suggest that Bitcoin could start seeing some increasing levels of volatility, which he says is actively embraced by traders looking to profit from the markets.
“So, the New Year is underway and volatility appears to be percolating, which is off-putting to most passive investors. However, there are many market participants that understand volatility is a constant, and if volume numbers at Cboe are any indication, they are actively embracing the tools available to trade volatility and/or manage risk,” he said.
How the crypto markets, and Bitcoin in particular, trade as they enter the weekend will likely set the tone for how they will trend in the coming week.
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Ethereum Constantinople Hard Fork Scheduled for Late February Following Recent Delay

Earlier this week, the highly-anticipated Ethereum (ETH) hard fork event – dubbed Constantinople – was delayed just one day before its scheduled event time due to the discovery of a significant security vulnerability that, if it were to have been implemented, would have allowed nefarious actors to steal user’s funds.
On a conference call this Friday with Ethereum’s lead developers, it was announced that the hard fork is now scheduled to occur on, or around, February 27th on block number 7,280,000.
Security Flaws Lead to Ethereum (ETH) Constantinople Delay
Ethereum saw some decent price gains earlier this month that many analysts attributed to the Constantinople upgrade, which will reduce the new supply of ETH by 33%. Over the long run, analysts speculated that this supply reduction would lead ETH to see greater price stability and gradual gains.
Prior to the hard fork being delayed, Michael Moro, the CEO of Genesis Global Trading, spoke about the importance of the supply reduction feature, saying that it could be bullish for ETH’s price.
“Being that the inflation rate will drop by a third, it could potentially reduce selling pressure that could come from the miners’ reward,” he said.
Mati Greenspan, the senior market analyst at eToro, also spoke about the event in an email, saying that Constantinople will lead to a new version of Ethereum that is “faster, cheaper, and has 33% less inflation.”
Although the security flaw, which was discovered this past Tuesday by ChainSecurity – a smart contract security audit firm – did lead to a delay of the event, the supply reduction feature that analysts deemed as being bullish will still be implemented when the upgrade occurs next month.
Although it is hard to tell how much of Ethereum’s January price surge is directly the result of investors anticipation of Constantinople, its price did drop nearly 8% after the delay and security flaw were announced earlier this week.
Constantinople Security Flaws to Be Solved in Subsequent Hard Fork
Originally, Constantinople featured five Ethereum Improvement Proposals (EIPs) that were intended to be incorporated all at once. Now, the one EIP that contained the security flaw has been removed from the February hard fork, and will be incorporated at a later time after more thorough testing can be done.
Péter Szilágyi, an Ethereum developer, spoke about the new hard fork plan in a recent tweet, saying:
“Seems we’re going with block 7.28M for the #Ethereum Constantinople refork scheduled for the 27th of February! Will be a single fork on mainnet and a post-Constantinople-fixup fork on the testnets to get them back in line feature wise with the main network.”
As the new upgrade date nears, investors and traders trying to profit from the event will likely exercise increased caution, as it is possible that there will be further delays if more issues are discovered.
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Ethereum: Analysts Believe Upcoming Constantinople Fork Will be Bullish Despite Delay

Although Ethereum is currently seeing a price drop due to its highly-anticipated Constantinople hard fork being delayed, it will still likely prove to be a positive event for the cryptocurrency’s price once the security flaws are smoothed out and it is implemented. Investors will not know until Friday when the new scheduled date for the hard fork is.
The term “hard fork” is typically seen as being a negative event for cryptocurrencies, and this is in part due to previous forks that have badly burned investors, like the recent Bitcoin Cash hard fork that split the community and led the cryptocurrency’s price to plunge.
Despite this, prominent analysts seem to agree that Constantinople may have bullish implications for Ethereum in the long run, mainly due to its network improvements and its supply reducing upgrade that will reduce the new supply of ETH by 33%.
Ethereum Hard Fork Unlikely to Burn Investors Long-Term
One of the greatest risks posed by hard forks is when they split the cryptocurrency into two versions. This can greatly impact the crypto’s price action, and it can split the community while driving fearful investors out of their positions. It is important to note that this is not the case with the upcoming Constantinople fork, which will not be splitting ETH and should offer some great benefits to the network.
Mati Greenspan, the senior market analyst at eToro, discussed the contentions hard forks can cause in a recent email, saying:
“Sometimes, when there is a disagreement among the community about the upgrade, some members will choose to keep the old version of the blockchain alive and we see a split. The most famous cases of this was when Bitcoin Cash split off of Bitcoin on August 1st 2017 and when Ethereum split with Ethereum Classic back in 2016,” he explained.
Ethereum core developer Lane Rettig spoke to Bloomberg earlier today about the upcoming fork, noting that it is one of the least eventful the network has seen in its history.
“I really can’t imagine a less contentious hard fork, to be honest… Of all the hard forks in the history of Ethereum, it’s probably the least eventful one,” Rettig said.
Now, however, the fork is seeing increased drama and scrutiny due to the recently discovered security flaw that, if it had been implemented, would have allowed nefarious actors to exploit a loophole in the coding that would have essentially allowed them to continuously withdraw innocent user’s funds.
Analysts Believe Constantinople is Bullish for ETH Price
In addition to offering some simple improvements to the network, analysts do believe that ETH investors will see benefits incurred from the hard fork, specifically due to the block rewards reduction that will reduce the supply of new Ether output, possibly offering the crypto more stable growth in the long-run.
Greenspan bullishly concluded that once the fork is completed, the markets will have a new Ethereum that is “faster, cheaper, and has 33% less inflation.”
Michael Moro, the chief executive officer of Genesis Global Trading, also spoke optimistically about the fork, specifically citing how the reduction of supply will reduce selling pressure.
“Being that the inflation rate will drop by a third, it could potentially reduce selling pressure that could come from the miners’ reward,” he explained.
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Ethereum: ETH Price Plunges as Constantinople Fork is Delayed Due to Security Flaw

Over the past several weeks, Ethereum has seen consistent price gains that can be largely attributed to investors anticipating its Constantinople hard fork. This fork was widely viewed as being bullish due to it reducing the future supply of ETH by 33%.
Now, Ethereum’s price is plunging due to Constantinople being delayed as a result of a security vulnerability that, if it were to be implemented, could result in a loophole that provides attackers with the ability to exploit the code and steal user’s funds.
Ethereum Constantinople Hard Fork Delayed
Earlier today, news broke that smart contract security audit firm, ChainSecurity, noticed a flaw within one of the proposed improvement upgrades included in the hard fork, which could allow funds to be easily stolen by nefarious actors.
In a conference call, Ethereum’s lead developers discussed the flaw, noting that the hard fork will be delayed for an unforeseeable amount of time while they fix the issue. The new date for when Constantinople will be implemented will be released in another conference call this Friday.
ChainSecurity discussed the fork’s vulnerability in a recent Medium post, calling it a reentrancy attack that allows bad actors to reenter the same function multiple times without the network updating to account for the actions they took, essentially allowing them to continuously withdraw funds.
“The upcoming Constantinople Upgrade for the ethereum network introduces cheaper gas cost for certain SSTORE operations. As an unwanted side effect, this enables reentrancy attacks when using address.transfer(…) or address.send(…) in Solidity smart contracts. Previously these functions were considered reentrancy-safe, which they aren’t any longer,” ChainSecurity explained.
ETH Price Drops on News of Delay 
Ethereum’s price plunged on news of the Constantinople delay, and it is trading down 6% at its current price of $121. ETH is presently trading just above its weekly low of $116, which was set this past weekend when the overall crypto markets dipped.
Ethereum has seen a relatively consistent price rise since it set its 2018 lows of $80 in mid-December, rising to highs of nearly $160 before dropping to its current price levels. It is unclear as to how much of this price rise is the result of expectations regarding Constantinople, as the entire crypto market has posted a decent recovery from its mid-December lows.
Although ETH dropped on the news of the delay, The Crypto Dog, a popular cryptocurrency analyst on Twitter, said that he is buying the relatively minor price dip, which he sees as being the result of an “emotional reaction.”
“Reasonings for buying this: It was at support, easy invalidation if I’m wrong… ETH is leading, dumping due to Constantinople delay – this is an emotional reaction that may be quite shortlived [sic],” he explained.
How Ethereum’s price responds to the fresh news regarding the delay in the coming hours and days will gage how important traders see Constantinople being for ETH’s price.
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History May Signal That Bitcoin is Nearing a New Bull Cycle

Since early-2018, Bitcoin and cryptocurrency investors alike have been caught in what seems to be a large sea full of endless waves comprised of price drops, fake news, accounts of fraud, and countless other examples of occurrences that have shaken out the weak speculators. This has left behind a community of investors who either ardently believe in the technology, or suspect that another wave of speculators will drive the markets back to, or above, their previously established all-time-highs.
Although the persisting bear market has been incredibly tough for neophyte investors, an analysis of historical trends may signal that another bull market is imminent.
Analyst: The Future of Bitcoin Lies in the Study of the Past
Recently, a theory regarding the future of Bitcoin – which will undoubtedly lead the direction of the entire cryptocurrency markets – has surfaced on various social media platforms that uses historical trends to predict the future of market movements.
Galaxy, a popular cryptocurrency analyst on Twitter, recently discussed the possibility of an imminent bull run based on Bitcoin’s historical trends, telling his nearly 50,000 followers that the “future lies in the study of the past.”
“We’re approaching the 420 day mark which ended the 2015 bear market and if history repeats itself, we’re moving towards several months of accumulation and a new bull cycle starting mid-late 2019,” he noted while referencing a chart that shows the 2014 bear market which lasted until 2015.
Although the 2018 bear market has not yet lasted quite that long, the patterns between the two markets do appear to be strikingly similar, which could mean, as Galaxy noted, that Bitcoin will enter into an accumulation period that will be proceeded by another parabolic bull market.
Technical Indicator May Support This Theory Regarding an Imminent Bitcoin Bull Run 
Recently, a widely used technical indicator gave traders a rare signal that Bitcoin could be on the brink of making a massive price move that could mean that Bitcoin will see significant buying pressure in the future.
A recent report noted that the GTI VERA Bands Indicator, which uses trend data over large time frames to give traders insight into future price movements, flashed a rare signal that the cryptocurrency is nearing an inflection point that could lead to a major price movement.
This was also supported by another widely used technical indicator, called the Directional Movement Index (DMI), which recently flipped positive for Bitcoin for the first time in several months, signaling that the digital asset is seeing growing buying pressure despite its relatively sideways movement over the past several weeks.
While speaking about the validity of the DMI’s trading signal, Mati Greenspan, the senior market analyst at eToro, said that Bitcoin has a long way to go before talk of a bull market can be validated, further noting that there remain multiple strong levels of resistance that the cryptocurrency must break through.
“In technical analysis this makes these levels very strong. But I think only once we see a strong break above 5,000, 6,000, if we get above 7,500, that’s when people start to turn really bullish,” Greenspan explained.
Although the validity of the aforementioned technical indicators and the theory regarding an imminent bull run remains to be seen, they do offer battered investors a glimmer of hope that a price rally could be on its way.
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Bitcoin Bounces to Above $3,700 Leading the Crypto Markets to Surge

Following the crypto market’s recent downturn that sent many altcoins spiraling down 10% or more as Bitcoin fell to lows of approximately $3,550, the markets have regained some strength and bounced today, leading most altcoins to surge 5% or more.
Today’s upwards move after a volatile weekend seems to confirm that Bitcoin is in fact caught in a trading range between $3,550 and $4,200, as analysts previously expected.
Bitcoin Confirms Previously Suspected Trading Range 
At the time of writing, Bitcoin is trading up nearly 4% at its current price of $3,710.
On Saturday, Bitcoin plunged to lows of $3,550 from the mid-$3,600 region, which appeared to many traders as the continuance of a downwards momentum that Bitcoin has incurred after it failed to stabilize above $4,000 last week.
Today’s price surge, however, confirmed that Bitcoin does have support at $3,550, which is the price at which Bitcoin surged earlier today.
Mati Greenspan, the senior market analyst at eToro, previously noted that he believes Bitcoin is presently caught in a trading range between $3,550 and $4,200, an assessment that was validated by today’s move.
“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200… Movements within a range can sometimes be sudden like we saw yesterday, but unless there’s a breakout of the key levels there really isn’t much to write home about,” Greenspan explained in a market update last week.
The Trading Room, a popular cryptocurrency analyst group on Twitter, spoke about the market’s recent jump, noting that all key price levels held firm, which validated the crypto market’s recent lows as strong support levels.
“All key levels held firm & we are getting a perfect bounce so far. Will look for long entries on confirmation of trend change,” they said.
Altcoins Surge as Crypto Markets Recover from Recent Drop
The general crypto markets have recovered well from the recent drop that sent many altcoins down 10% or more.
At the time of writing, XRP is trading up nearly 5% at its current price of $0.336. This weekend, XRP fell to lows of $0.317, which appeared to act as a level of relative support. XRP is still down significantly, however, from its weekly highs of $0.38, which were hit right before Bitcoin broke below $4,000.
Ethereum has surged today and is currently trading up over 10% at its current price of nearly $130.
Ethereum’s positive price action today was not unsuspected, as DonAlt, a popular cryptocurrency trader on Twitter, aptly noted that Ethereum was nearing a buy target he had set for several months.
“Playing out nicely. The dip into the buy area was bought up entirely. I still think another visit there is very possible, that said I definitely am not looking for swing (longer term) shorts here. Zooming out & taking it slow makes trading tremendously easier,” he explained while referencing a long-term Ethereum price chart.
If Bitcoin’s price is able to climb into the low-$4,000 region in the coming days or weeks, the validity of $4,200 as a strong level as resistance will be validated.
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Bitcoin and Crypto Markets Face New Support Levels Following Today’s Drop

Bitcoin has failed to stabilize above $3,600, which is leading the crypto markets to now face new levels of support. Today’s downwards move has led many altcoins to plunge 6% or more, and they are showing few signs of major buying support near their current price levels.
Analysts have mixed opinions regarding exactly where the markets will find support, but there is a general consensus that Bitcoin will find some buying pressure in the low-$3,000 region, which, if this level is to be touched, could result in a bounce.
Bitcoin Drops to Bottom of Trading Range 
Currently, Bitcoin is trading down approximately 3% at its current price of $3,560, which is at the bottom of the trading range that Bitcoin formed earlier this week when it failed to stabilize above $4,000 for an extended period of time.
Mati Greenspan, the senior market analyst at eToro, discussed this range in a market update from last week, saying:
“It seems now, that bitcoin has opened a new mini-range within that from $3,550 to approximately $4,200.”
Bitcoin does appear to be respecting the bottom of this range as support so far, but the current lack of trading volume likely signals that further losses are imminent.
Crypto Markets Likely to Drop Further Before Finding Strong Support
In a recent tweet, Trading Room noted that Bitcoin’s next key support level exists between $3,292 and $3,396, which is approximately 5-7% lower than its current prices. If it does touch these prices, it will mark a nearly 10% drop from where Bitcoin began 2019.
They further noted that multiple altcoins are still above their support levels, meaning that they will likely drop further before stabilizing or possibly bouncing.
“ALTs market back to free fall. Waiting for majors to stabilize. Let’s see their reaction against major support before entering ALTs,” Trading Room cautioned, hinting that altcoins will face further losses in the near-future.
Josh Rager, a popular cryptocurrency analyst on Twitter, echoed a similar sentiment, noting that Bitcoin will likely find significant buying pressure at, or slightly below, $3,000. He further noted that the markets will likely range sideways for a while before dropping further.
“As the volume continues to slowly descend Bitcoin could see more sideways ranging… This could last for days or weeks until a decrease in buyers, currently holding up the market, at these levels… Nice support below $3,000 with lots of buyers waiting there,” Rager explained.
It is plausible that the crypto markets will find greater direction as their trading volume increases when the new week begins.
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