Bitcoin [BTC]’s prices are significantly lower than its $13000-$14000 fair price, says Tom Lee

Fundstrat’s Thomas Lee aka Tom Lee, well-known for his predictions on Bitcoin in the crypto-community spoke about the current market for cryptocurrencies and more specifically about Bitcoin and year-end predictions.
As reported by CNBC, Thomas Lee, former J.P. Morgan Chief of Equity Strategist said:
“Given we are so close to year-end, we are not providing any updates to near-term price objectives—read this as, we are tired of people asking us about target prices.”
Lee, in his recent appearance in the crypto-community, said that he was done with giving out year-end predictions but instead updated his opinion on what the fair price for Bitcoin should be.
As per the International Accounting Standards Board, fair value is the price received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on a certain date, typically for use on financial statements over time.
To further simplify it, fair value is the rational and unbiased estimate of the potential market price of a good service or asset.
Lee calculated the fair price of Bitcoin with the number of active wallet users in mind and said that it is “significantly” higher than the actual price. Considering the number of active wallet users are 50 million, Lee thinks that the active wallet users have to be reduced to $17 million to justify the current price of Bitcoin.
Moreover, Lee thinks the fair price of Bitcoin should lie between $13,800 and $14,800, but the current price is hovering in the $3,300 range.
It might be true to some extent as the price of Bitcoin has collapsed vastly in the last two months breaking major supports at ~$6,500 and now at ~$3600. The prices are getting closer to $3,000 mark as the end of the year approaches.
If the Bitcoin wallet users approach 7% of the total number of users of Visa, which is at a massive $4.5 billion, then according to Lee’s regression model, the fair price of a Bitcoin would be $150,000.
Bitcoin has suffered a massive decline of 82% in its price and market cap since its all-time high in December 2017 and the total market cap of all-cryptocurrencies have also declined by an approximate of 87% and is currently hovering at $111 billion.
Lee said that investors will likely stay bearish until Bitcoin remains below the 200-day moving average and that technicals play an important role in cryptocurrency trading.
In his recent appearance on CNBC, Lee cut his year-end prediction for 2018 from $25,000 to $15,000 and substantiated it with the research done by the Fundstrat’s data science team which included calculating a break-even point. Lee later changed his prediction to $15,000.
A Twitter user J. Braunstein commented:
“A prudent speculator never argues with the tape. Markets are never wrong, opinions often are.” – Jesse Livermore
Another user BitHoncho replied:
“Oh well .. he was wrong about $ES targets as well .. But always called on cnbc .. It should be @winternomics who should be there”
Jersey replied BitHoncho saying:
“Value is scarce man, even if Kaz was up there, most wont take in the info and judge the mask or his grammar, look at the 99% nitpicking Musk’s tweets #RuleOfTheAtom”
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Source: AMB Crypto

Bitcoin [BTC] addresses blacklisting doesn’t really matter that much, says Litecoin Creator

In the latest episode of Magical Crypto Friends, Charlie Lee, the creator of Litecoin, Samson Mow, the CSO of Blockstream, Riccardo Spagni, the lead developer of Monero and Whale Panda, discussed the recent new regarding the backlist of two Bitcoin addresses by the Office of Foreign Assets Control [OFAC].
Recently, reports emerged that the OFAC blacklisted two Bitcoin addresses as they were linked to cyber crime. The owners of the addresses are believed to be Iranian nationals and these addresses have more than 7000 transactions, receiving approximately 6000 BTC. Additionally, anyone who interacts with these addresses could potentially be held responsible by the United States government and could face legal punishment.
Charlie Lee stated that backlisting two Bitcoin addresses does not really matter “that much”. However, according to him, exchanges are going to have a lot of work as they have to check thousands of addresses and keep a tab every time someone makes a transaction in order to ensure that none of the addresses belong to the OFAC list of addresses, adding that “this can be like so painful”.
Furthermore, Riccardo Spagni said:
[…] if your job is in exchange is to check that no funds that are being deposited are coming from those addresses and no funds that are being withdrawn are being withdrawn to those addresses, that’s easy. But because of the nature of Bitcoin it’s very easy to move funds like you know from one address pass it through ten addresses and then go and deposit it”
The lead developer added:
“so the question is how far back do you need a check now as an exchange and it seems to me that this is just like all it’s going to result in is some sort of magical number like okay guys we only need to check ten steps back or three steps back which apparently you have you told is the magical number and people are then just gonna watch the coins more than 10 steps or more than three steps this doesn’t seem to be a trivially solvable problem or an easy way to prevent anything from happening.”
This was followed by Charlie Lee stating that this is the same with coins “moving forward” as well, adding whether he would be banned if the coins are deposited to the terrorists address after three steps or whether the exchange would be keeping a track of the addresses even a year later.
Spagni remarked:
“Yeah like exactly so you move it to an intermediary address and then you move it to the banned address and now what the exchange is supposed to be responsible for monitoring that”
Following this, WhalePanda pointed out the possibility of a dust attack, stating, “they can send tiny amounts to other addresses and do some sort of dust attack and then every address is tainted because it’s coming from the blacklisted or the blacklisted addresses”.
To which, Spagni said:
“If you’re using a wallet that gives you coin control and it’s easy to prevent you being affected by a dust attack but let’s be honest I’ll be people using Bitcoin are, a) using wallets that have coin control b) are aware that a dust attack is even a thing and c) have the presence of mind to go and prevent all this stuff”
The lead developer further said:
“here’s another thing what happens if I pay a fee to a miner  from a tainted address is the new coinbase output now also tained? […] they’re ways within the Bitcoin blockchain to to wash outputs”
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Source: AMB Crypto

The Crypto Markets May be in a Rout, But the Blockchain Job Market is in Full Swing

Although the crypto markets are caught in a persisting bear market, blockchain jobs are in a raging bull market, with blockchain developer job growth topping this year’s LinkedIn Emerging Jobs Report.
The report, which was released by LinkedIn on December 13th, analyzes the fastest growing jobs in the US, and notes that the blockchain industry was the fastest growing job market in 2018.
Crypto Crashed, But Blockchain Still Thriving 
Although the cryptocurrency markets have faltered throughout 2018 and are currently sitting at their lowest price levels since mid-2017, the blockchain development industry is thriving.
The LinkedIn report notes that in the United States, blockchain developer jobs saw 33x growth in 2018, significantly more than the second fastest growing job of machine learning engineers, which grew by 12x throughout the year.
The report notes that within the blockchain development sector, the most widely sought-after skills are knowledge and experience with Solidity (smart contracts), blockchain technology, Ethereum, cryptocurrency, and Node.js.
Within the market, most of the demand for workers with skills and a knowledge base in the aforementioned technologies stemmed from three main companies, including IBM, ConsenSys, and Chainyard, and three main cities, including San Francisco, New York City, and Atlanta.
Although the demand for blockchain developers is incredibly high, the crypto rout has undeniably stagnated this growth, as many companies in the blockchain sector have been impacted by the market crash.
ConsenSys, who LinkedIn notes as being one of the biggest blockchain employers, recently underwent a company restructuring that resulted in 13% of the company’s staff being cut.
The restructuring, which has been dubbed as “ConsenSys 2.0” by the company’s leaders, will result in more rigorous milestones and will lead to increased focus on the projects with the most long-term potential, while the more experimental and risky projects will be cut.
Blockchain Industry Not Going Anywhere
Although the blockchain industry may be starting to feel some pressure resulting from the cryptocurrency market crash, it still has a significant amount of growth ahead of it.
Recently, MouseBelt, a blockchain and ICO accelerator service, funded UCLA’s first accredited blockchain engineering course, which will start in January of 2019. The course will be for undergraduate students with an interest in computer engineering and will be considered by the university as a 4-credit special topics course.
In the past, students have had access to blockchain and cryptocurrency courses through the Anderson School of Management, but this is the first course that is actually being offered by UCLA to undergraduate students.
Although the cryptocurrency market’s current situation looks dire, the growth in the blockchain job market and the advent of new blockchain-centric courses from top universities signals that development in DLT tech, which is inexorably tied to crypto, continues pushing ahead and that the best is still yet to come.
Featured image from Shutterstock.
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Teen Bitcoin Millionaire: “Bitcoin is Pretty Much Dead”

One of the youngest cryptocurrency success stories has a rather bleak outlook for the leading digital asset, Bitcoin. Erik Finman became a millionaire in his teens by investing money that his grandmother had gifted him, starting as early as 2011.
At the height of the Bitcoin bull market of 2017, Finman’s stack was worth an impressive $4 million. There is no indication just how much much of this he still holds, however.
Erik Finman: Bitcoin and Litecoin Dying, Ether, BCH, and Zcash Show Promise
Erik Finman hit headlines this January for his remarkable story. Starting in 2011, the then 12-year-old was buying cryptocurrency with some money his grandmother had given to him. According to a report in Market Watch, by catching on to the technological innovation early, the teenager was able to turn just $1,000 into over $4 million.
Despite being the cause of his success, Finman is now of the opinion that Bitcoin is in trouble:
“Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last… It may have a bull market or two left in it, but long-term, its dead.”
Interestingly enough, much of the infighting within Bitcoin has actually died down since the August hard fork last year, which created Bitcoin Cash. This is because many of those arguing for scaling by increasing the size of the blocks themselves left the community to support and use the offshoot currency, evangelised by Roger Ver and Craig “Fake Satoshi” Wright.
Bizarrely, the teenage investor believes that Bitcoin Cash is actually a better bet than the original Bitcoin. He told the publication that it had great technology but had been marketed terribly. It seems strange that Finman would critique Bitcoin’s infighting and be more optimistic about Bitcoin Cash when it was the latter that has just undergone a far uglier hard fork than that of last August. This recent incident involved threats of 51% attacks and plenty of other mudslinging.
Perhaps Finman simply has not been paying the space quite as much attention as he once did since his portfolio exploded into seven figures. Perfectly understandable given his age but it still seems odd that he thinks he has any authority on the matter given how detached his statements are from reality.
As mentioned, Bitcoin’s infighting has calmed immensely over the last year and a half. Infrastructure development is occurring at an unbelievable pace too. This includes institutional offerings from the likes of Bakkt and Fidelity, as well as improvements to the protocol itself in the form of Lightning Network. This is literally night and day to what is happening over at Bitcoin Cash right now.
Other projects that Finman believes have a better chance of survival are Ethereum and Zcash. Meanwhile, he states that Litecoin is certainly all but toast:
“Litecoin has been dead for a while,” he said. “It’s like when the sun is going down and there’s that eight minute period just before it goes dark. Litecoin is in its seventh minute.”
Related Reading: Crypto Community Responds to Fake Satoshi’s “F**k You” Email to Roger Ver
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Bakkt and Intercontinental Exchange CEOs Weigh in About Bakkt

Bakkt CEO, Kelly Loeffler, and the Intercontinental Exchange chairman, Jeff Sprecher, recently spoke to MIT Media Lab’s Michael Casey at CoinDesk’s Consensus: Invest Conference. The chat was broadcast via the “Inside the ICE House” podcast earlier today.
The two CEO’s talked in depth about their plans for the much-anticipated Bakkt platform, including what makes it different to other products already out there today, and why it will only focus on Bitcoin to begin with.
Will Bakkt’s Federally Regulated Price Discovery be Good for Bitcoin?
The conversation between Loeffler, Sprecher, and Casey began with a simple enough question: Does price matter to you?
Loeffler responded first that it made little difference to the use of digital assets what they were priced at. The CEO went on to muse about the future of crypto more generally, particularly set within the context of the current bear market:
“When I think about what we’re doing at Bakkt what our peers in this space are doing, what all of you in this room are doing, I think about the headline’s today, ‘Will Digital Assets Survive?’ and I’d say the unequivocal answer is ‘yes’.”
This led smoothly on to perhaps the most oft-repeated topic of conversation during the presentation. Both Loeffler and Sprecher hold that the most important thing Bakkt would bring to digital currency was fully regulated price discovery for the first time ever. This, the pair agreed, was the primary focus of the platform. Sprecher stated:
“We develop systems where there can be transparent and competent price discovery.”
Loeffler added that institutions needed certainty before they would take the plunge into the world of cryptocurrency. One way of achieving such certainty was by being fully regulatory compliant at the Federal level – something that Bakkt is keen to achieve.
Another way to inspire confidence from the various institutions that the ICE networks with is by having a price discovery method that is free from manipulation. Since Bitcoin is the only digital asset currently recognised by the US government as a commodity, it is uniquely placed to be offered to institutions on such a regulatory compliant platform.
How is Bakkt Different From Other Products Around Today?
The conversation moved to addressing how the Bakkt platform would differ from other exchanges or financial products, such as the CBOE and CME futures contracts launched last December. Loeffler spoke first on the topic:
“At ICE, we’re the largest exchange operator in the world, we operate a dozen exchanges across US, Europe, Asia, Canada, clearing houses. So, we’re connected institutionally around the world to the largest traders of all asset classes.”
Sprecher added that the Bakkt exchange platform will also use its own clearing house. Since everything is going to be entirely pre-funded, there is expected to be far less leverage risk. This clearing house will has also have its rules set by a risk committee comprising of some of the US’s largest financial institutions. These are the same rules that will be taken for the approval of the US government. The hope is that the acceptance of the rule set from such prestigious names will encourage them to offer their approval. This in turn will inspire confidence in the Bakkt platform for investors.
The conversation then moved to Starbucks’s involvement in Bakkt. Loeffler stated that they were also highly interested in helping to put digital assets to use in the real-world. This is something Starbucks was interested in exploring too, so the partnership made a lot of sense. She added that other big names had expressed interest in working with Bakkt in a similar capacity too:
“Since that announcement we’ve heard from others that want to do that.”
Recommended Reading: BitPay CEO: Fidelity and Bakkt Will Drive Next Major Bitcoin Rally
Featured Image from Shutterstock.
 
 
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Bitcoin Sets Fresh 2018 Low at $3,200, Altcoins Plunge

Following its recent period of instability, Bitcoin has now plunged to new 2018 lows and has sent the altcoin markets spiraling downwards. Today’s drop has led the overall cryptocurrency market capitalization down to $102 billion, a level not seen since August of 2017.
At the time of writing, Bitcoin (BTC) is trading down nearly 6% at its current price of $3,230, down from its 24-hour highs of $3,430. Bitcoin’s previous 2018 low was set on December 7th when it fell to just under $3,300.
Analysts Expect Bitcoin to Fall Below $3,000
The market’s current instability is leading to a general consensus among analysts that it is only a matter of time before Bitcoin falls below the important psychological price level of $3,000.
While speaking about Bitcoin’s current price action, Nick Cawley, an analyst at Daily FX, said that based on his technical analysis, Bitcoin’s short-term price action is leading it towards $2,970.
“Bitcoin looks set to fall below $3,000 in the short-term with the $2,970 Sept. 15, 2017, swing-low the next target. Below here, horizontal support at $1,760 off the July 18 [2017] low comes into play in the longer-term.”
DonAlt (@CryptoDonAlt), a popular cryptocurrency analyst on Twitter, told his nearly-80 thousand followers that he also expects BTC to dip into the $2,000 region, with a good buy target being at the $2,700 level.
“As BTC is approaching the target of the 2014 fractal the targets of most people change from 3k to 1k and even lower. I still think 2.7k is an excellent place to buy if we should go there,” he said, further adding that right now is not the best place to add new short positions.
Altcoins Plummet Amidst Bitcoin Instability
Bitcoin’s instability has led the vast majority of altcoins to plummet, with Bitcoin Cash and Stellar Lumens leading today’s market plunge.
At the time of writing, Bitcoin Cash (BCH) is trading down 15% at its current price of $82, setting a fresh all-time-low. Ever since Bitcoin Cash’s hard fork event on November 15th, the cryptocurrency has been spiraling downwards, and is showing few signs of fundamental strength as it drifts lower.
BCH’s hard fork offshoot – Bitcoin SV (BSV) – also dropped significantly today and is currently trading down nearly 11% at its current price of $74.8. BSV is currently behind Bitcoin Cash’s market cap by over $100 million.
Stellar Lumens (XLM) is currently trading down over 11% at its current price of $0.098, and just set a new 2018 low around its current price levels.
XRP is currently trading down nearly 6% at its current price of $0.287 and is trading at levels not seen since this past September. It is important to note that XRP is still trading above its 2018 low, which was set at approximately $0.24 this past August.
Featured image from Shutterstock.
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Bitcoin [BTC/USD] Technical Analysis: Bull to remain silent as market deals more damage

Bitcoin [BTC] has taken down its altcoin mates on the chart with it as the bear market hit a few weeks back. At present, as the crypto-board is colored in red, BTC is down by 3.27%. At press time, the token was trading at $3,314 with a market cap of $57.7 billion. The total trading volume in the past 24 hours was recorded at $4.31 billion.
1-hour
BTCUSD 1-hour candlesticks | Source: tradingview
In the one-hour candlesticks of Bitcoin, the downward trend is extending from $3,830 to $3,449 whereas a strong support is suspended at $3,235. The possibility of a trend breakout does not seem to be likely as of now.
The Parabolic SAR is extremely bearish on the cryptocurrency. The dots are aligned above the candlesticks, resisting any speculative hike in the price trend.
The Aroon Indicator is showing a stronger downtrend wherein the green trend is crashing, losing all power over the market. Therefore, the indicator is bearish on the BTC market.
The Chaikin Money Flow is also bearish on the cryptocurrency as the reading line is traveling below the 0-mark.
1-day
BTCUSD 1-hour candlesticks | Source: tradingview
In the long-run, there is a steep downtrend that is ranging from $8,218 to $6,502 whereas a support set at $5856 was breached by the token to dunk further. Currently, BTC has broken all supports and is heading deeper into the bear’s den.
The Bollinger Bands is gradually diverging from the path of a uniform tunnel. As of now, the bands are predicting a higher volatility in the market.
The RSI has crashed into the oversold zone to depict the deadly clutches of the bear holding the crypto-market. However, a trend reversal could take place as the indicator is traveling inside the zone.
The Relative Vigor Index is also bearish on Bitcoin price trend. This can be seen as the RVGI is in a bearish crossover by the signal, traveling beneath it.
Conclusion
In the technical analysis, the majority of indicators have been observed to side with the bear in times of red figures and despair. However, a trend reversal is being suggested by the RSI and a higher volatility might enter the market soon, to contribute to, or fight against the crypto-winter.
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Source: AMB Crypto

CoinShares Exec: China Crypto Plan Could Make Dystopian Future a Reality

Bitcoin was designed in the wake of the 2008 global economic crisis as a way to take control over money away from central authorities such as governments, banks, and other traditional systems. The decentralized design could also prevent communist countries like China from establishing control over their citizen’s money.
However, the very technology powering crypto may be arming central authorities with even more control over the population and their money, which CoinShares Chief Strategy Officer Meltem Dimirors says may “slowly” be making her “dystopian nightmares” a “reality.”
Government Control Undermines Crypto’s Original Intention
In a tweet this morning, CoinShares Chief Strategy Officer and Head of Treasury Meltem Demirors shared her fears that recent moves by governments like Venezuela and China, could be bringing her “dystopian nightmares” closer to “reality.”
Related Reading | Venezuelan President Orders Banks to Adopt Petro
Demirors is referencing both Venezuela forcing its citizens to transact with the country’s native, oil-backed cryptocurrency token, and China’s plan to introduce its own digital currency that it will use to monitor and control the usage of its citizens.
China To Eliminate Cash, Control The Public Through Digital Currency
Not only will China begin using their own digital currency, but according to Fan Yifei, the deputy governor of China’s central bank, the People’s Bank of China (PBoC), the new digital currency will also entirely replace cash. Without fiat paper currency Chinese citizens will have every transaction closely monitored and will be subject to the government’s control.
Former PBoC governor Zhou Xiaochuan set the project in motion before retiring earlier this year, as a means to avoid China relying on Bitcoin or other current cryptocurrency protocols. Since then, the PBoC has registered nearly 80 patents related to the native cryptocurrency they are developing.
Related Reading | China Could Destroy Bitcoin to Make an Ideological Statement
Patents suggest that both businesses and individuals alike will have to convert all of their yuan into the new native digital currency using a mobile wallet. Yifei published an article earlier in the year that outlined that banks would be required to submit a daily log of transactions, which would allow the Chinese government to keep tabs on every transaction every individual or business makes, even capping the amount of transactions any individual could make on a given day.
China’s control extends beyond their own native cryptocurrency as the country has outright banned cryptocurrency exchanges, events, and more.
China has even been said to have “strong motive” and “capabilities” to destroy Bitcoin entirely. In a frightening report, researchers from Princeton University and Florida International University called China the “most powerful potential adversary to Bitcoin.”
Since Bitcoin is in “ideological opposition” to China’s communist policy, the country could be motivated to attack it. Worse-yet, much of the Bitcoin network’s hash power is centralized in China due to the abundance of miners there taking advantage of low energy costs.
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Bitcoin Price Losses 47% Value in a Month, “Stay Away from Longs” says Trader

Bitcoin has dropped again and trading around $3,300, having lost over 47 percent of its value in just a month. Experts say this crash is healthy for the market while crypto traders are still bearish on Bitcoin price in the short term. But Bitcoin bull Tom Lee emphasizes it is currently undervalued.
Bitcoin Price Crash is Actually Healthy But Short-Term View Bleak
After seeing greens briefly, Bitcoin has yet again taken a hit dropping down to $3,200. In just a month, Bitcoin has fallen from about $6,360 to the current $3,311 and lost more than 47 percent of its value. The leading cryptocurrency is currently managing the daily trading volume of $4.35 billion.

Source: Coinmarketcap
However, pain might not be over as the constantly dropping prices are signaling towards more red incoming.
Crypto investor and trader, DonAlt is short on bitcoin as he says, “stay away from longs”. Popular crypto trader, The Crypto Dog is also bearish as he asks people who are feeling particularly bullish on Bitcoin to zoom out while saying,
“BTC lowest daily close year to date. Is there still a chance of recovery before more lows? Well, maybe. But I am not betting on it.”
According to Eric Ervin, the CEO of crypto and blockchain investment firm Blockforce Capital, this sell-off is healthy for the market,
“We think this is actually healthy. This really just takes us back to where we were in March or June of 2016 – about eighteen months ago – we had this big run-up and then this big blow-off, and now we have real people in the space building technology, building those on-ramps.”
According to Jani Ziedins of CrackedMarket, the hesitancy of buyers means slow chances of growth as he explains,
“Bitcoin continues to muddle along in the mid-$3K range. The longer we maintain these levels, the less likely it becomes that prices are oversold and poised for a pop. The public has largely written cryptocurrencies off as a fad and no new money is coming in. The lack of demand will continue to be a big liability.”
But Bitcoin bull Tom Lee who has now moved onto “We are tired of people asking us about target prices,” sees the prices as undervalued as he shares his Bullish view,
“Fair value is significantly higher than the current price of Bitcoin. In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
 
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Source: CoinGape

Bitcoin Price Analysis: BTC Could Side To $3,120 or $3,020

Bitcoin price remained in a downtrend below $3,390 and declined below $3,300 against the US Dollar. BTC/USD could accelerate losses towards $3,120 or $3,020.
Important Points:

Bitcoin price is currently trading below the $3,390 and $3,440 resistance levels.
BTC/USD is following a major bearish trend line with resistance at $3,360 on the 2-hours chart.
BTC price may continue to decline and it could test $3,120 or $3,020.

Bitcoin Price Analysis
There is a clear declining pattern from the $3,660 swing high in bitcoin price against the US Dollar. BTC/USD traded lower and formed a couple of swing highs near the $3,500 and $3,440 levels, and it recently declined below $3,40.
The 2-hour chart indicates that the price topped recently near the $3,480 and $3,500 resistance levels. More importantly, there was a break below the 76.4% Fib retracement level of the last leg from the $3,223 low to $3,660 high.
Chart Source By TradingView, Binance
The price recently broke the $3,300 support level and it seems like there could be more losses below the $3,240 level in the near term. An initial support is near the $3,223 low, below which the price may slide towards the $3,120 level.
The $3,120 level represents the 1.236 Fib extension level of the last leg from the $3,223 low to $3,660 high. On the upside, there is a major resistance is around the $3,380 level.
There is also a major bearish trend line with resistance at $3,360 on the same chart. Therefore, a break above the $3,360 and $3,390 resistance levels is needed for a successful upward move. More importantly, there is a crucial barrier near $3,440 and the 100 simple moving average (2-hours).
Should there be a successful close above $3,440 and the 100 SMA, the price may move into a positive zone. On the flip side, the price could accelerate losses below the $3,223 low towards the $3,120 or $3,020 level.
Overall, bitcoin price remains at a major risk of a breakdown below $3,223. The MACD is gaining pace, which is a strong bearish sign below $3,360 and $3,390.
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Source: CoinGape

Instead of Bitcoin [BTC] death spiral, “we should be talking about EOS,” says Investment Analyst

Corey Miller, a member of the investment team at BlockTower in his recent tweets revealed his views on how the EOS ecosystem might be operating at a loss wherein the block producers [BPs] look forward to turning off operations. There were six tweets in total, justifying the standpoint. The genesis tweet read:
“1/ Instead of discussing a BTC mining death spiral, perhaps we should be talking about EOS Block Producers turning off their operations. Although the narrative is that EOS BPs are financially well-off, many are currently underwater…”
He subsequently posted a survey that was filled out by block producers of EOS, mentioning the break-even cost at $4 per token. However, Miller pointed out that this figure of the break-even cost looks frail as the cryptocurrency is currently trading at a depreciated price of $1.8.
In the next tweet, the blockchain space enthusiast wrote that if the EOS ecosystem does not have a difficulty adjustment mechanism, the block producers will have the obligation to operate at lower costs or shut down at once. In his words:
“3/ Given there is no difficulty adjustment mechanism in EOS, BPs are going to be forced to either downsize their operations/cut costs or, in some cases, completely shut down.”
Here, Miller admitted that the latter is a greater possibility at this point. In his opinion, approximately 10% of the 81 BPs who receive the rewards are currently inactive. Furthermore, in an efficient market, people would stop voting for these block producers but that does not seem to be the case, claimed Miller.
As a solution to this situation, the investment expert gave a quick opinion stating that the problem can only be solved if the price of EOS jumps up again or the BP reward is increased.
On these tweets, a Twitter handle called EOS New York commented:
“How are you determining that around 10% are shut off?”
Corey Miller reverted by explaining:
“I admit that it’s not really possible to tell, but I’m assuming that at least some of the BPs who’s endpoints are down are shutting down.”
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Source: AMB Crypto

CEO: Crypto Plunge is Healthy, Bitcoin Remains a Great Investment

Since the bear market hit the crypto ecosystem head-on, investors exposed to this helter-skelter asset class have been deterred at large. Not only have the value of cryptocurrencies, such as Bitcoin (BTC), declined drastically, but hype and interest surrounding this market have largely been exhausted. Nevertheless, there remain many libertarian-leaning zealots that will hold on to cryptocurrencies, even until the bitter end. And as such, it should come as no surprise that Bitcoin’s fanatics have come to its defense at a dreary time.
Potential Payoff In Crypto Presents “Nice Opportunity” 
As bears have struck with no holds barred, Bloomberg TV has called upon a number of crypto’s eminent insiders to get an inside scoop. Most recently, the famed financial news outlet brought on Eric Ervin, the chief executive at U.S.-based Blockforce Capital.
Subjecting the CEO to answering run of the mill inquiries, anchor Emily Chang asked what Bitcoin’s 82% year-to-date drawdown has meant for crypto en bloc. Ervin noted that his firm, like many other crypto-centric asset managers, regards cryptocurrencies as a long-term opportunity, rather than the short-term money grab that crypto’s skeptics paint it to be. More specifically, the cryptocurrency proponent likened blockchain-based assets to the venture capital ecosystem, explaining that investing in cryptos should be addressed with a three-year time horizon. Ervin elaborated on crypto’s prospects as an investable instrument, stating:
“Because it is so inefficient, and there are so many operational risks that are yet to be solved, this creates an opportunity for investors that are willing to wade into the shallow end and start to invest in the asset.”
Echoing comments from a multitude of his fellow industry pundits, the Blockforce representative then touched on how cryptocurrencies accentuate the hallmarks of an asymmetric risk profile. Ervin added that this emerging asset class, often likened to the Internet in the 90s, has the potential for copious upside, before maintaining that cryptocurrencies provide a ‘nice opportunity” for investors who can play their cards right.
Just days ago, on two distinct mainstream media segments, Travis Kling and Mark Yusko, two institutional investors turned crypto diehards, also lauded Bitcoin as a viable medium of portfolio diversification, even for investors deemed conservative and pro-traditionalist. Kling, taking to the media network of crypto-friendly TD Ameritrade, told viewers that while BTC is a “multi-year, multi-decade” play, its return on investment proposition makes the cryptocurrency a compelling investment.
In a similar manner, Yusko, the founder of the overarching Morgan Creek brand, told CNBC’s Power Lunch that for investors pursuing asymmetrical exposure to assets, crypto assets are a prime vehicle to choose.
Bitcoin Crash Was “Healthy,” Brought In “Real People”
When queried about Bitcoin’s crash, Ervin made it clear that such price action was “healthy,” as the aggregate value of all circulating cryptocurrencies has only fallen to the levels seen in early to mid-2017 — not an apocalyptic crash, that’s for sure. The Blockforce chief also alluded to the belief that the crash weeded out bad actors, as he explained that “real people,” many of which are seeking to reinforce industry infrastructure, remain as crypto’s only survivors.
In closing, the Bloomberg host, attempting to glean knowledge regarding the Bitcoin exchange-traded fund (ETF) application from VanEck, SolidX, and Cboe Global Markets, asked Ervin on his expectation for the upcoming product. Almost as if he was poised for such a question, Ervin noted that although he expects for a crypto-backed ETF to go live eventually, the acceptance of VanEck’s appeal will likely fall a few feet short of its mark.
Related Reading: SEC Commissioner Warns Investors Against Putting Too Much Hope into Bitcoin ETF
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Amun’s Crypto ETP Volume Spikes: Sign Of Bitcoin Accumulation?

Just weeks ago, as Bitcoin (BTC) walked the fine line between a breakout and lower lows, Amun, a London-based fintech firm, suddenly divulged that it was slated to launch its “HODL5″ exchange-traded product (ETP) on Switzerland’s SIX exchange. Amun’s announcement instantaneously garnered attention from the bulk of the cryptosphere’s eyes and ears, with everyone and their mother discussing the”game-changing” vehicle, which put a spotlight on BTC, Ethereum (ETH), and XRP.
Speaking with Financial Times regarding the product, Amun CEO and co-founder Hany Rashwan explained that the ETP would be an enticing offering for both institutional players and retail traders alike, as it would provide secure and regulatory-compliant exposure to cryptocurrencies.  And with that in mind, HODL5 became the rallying cry for crypto’s bulls blinded by “hopium,” who stated that the SIX-listed instrument could catalyze a jaw-dropping reversal. Yet, upon its launch, the performance of Amun’s crypto foray was lackluster at best, dismal at worst.
Interest In Switzerland Multi-Crypto ETP Surges
As reported by NewsBTC, HODL5, while the most-traded ETP on SIX, saw little-to-zero interest during its first day on public markets, posting an insignificant $400,000 in volume. Such a figure was, of course, a far cry from the millions in volume that optimists were clamoring for. Many chalked up the fleeting interest to a number of factors, namely the fact that SIX has only been classified as Earth’s 13th largest stock exchange, posting a market capitalization of $1.6 trillion, a mere seven percent of the S&P 500.
Industry analysts and commentators looking to find a rationale behind the lack of volume aimed their scopes at other nuances. Some attributed the HODL5’s initially scant volume to Amun’s inability to captivate the business and wallets of SIX’s institutional clients, the vehicle’s targeted constituency. Moreover, these skeptics added that such market participants didn’t believe that the crypto market was poised to reverse its multi-month downtrend.
However, with a recent tweet from Su Zhu, the chief executive and investment officer at Singapore-based Three Arrows Capital, Amun’s fortunes may actually be turning for the better, despite the further decline in the Bitcoin price.
On Thursday and Friday of last week, as BTC freefell to establish a year-to-date low in the $3,200 range, Switzerland’s only ETP surprisingly saw record-breaking volumes, which followed weeks of relative inactivity and mundane action. In fact, Thursday saw traders exchange 53,233 HODL5 shares, and 62,986 on the following day, which amounts to approximately $1.3 million at current prices. This, of course, was a far cry from the 27,244 shares traded throughout the product’s inaugural session.

Last Thurs and Fri we broke volume records again on the Swiss HODL ETF with 53,233 shares and 62,986 shares traded respectively. That coincided with the dip in BTC to 3.2k and ETH to near 80. The correlation between volume and price continues to be very strong at (-68%). https://t.co/Meuaa9MXCV
— Su Zhu (@zhusu) December 11, 2018

In a subsequent tweet, the crypto-friendly Three Arrows Capital executive explained that there is a “very strong” correlation between volume in price, whereas HODL5 trading surges amid crypto’s incessant stream of strong drawdowns. Case in point, when ETH neared $80 and BTC neared $3,200 on December 7th, SIX processed record volumes as aforementioned. Drawing conclusions from this simple fact, Zhu, a bonafide crypto commentator growing in popularity, noted that “[ETP] buyers have firm levels in mind.”
Bitcoin Revisits Year-To-Date Low At $3,200 — Potential Level Of Accumulation
Just a week after HODL5 experienced its best day yet, BTC, after another bout of tumult and unpredictable price action, has found itself nearing $3,200 yet again. In fact, at the time of writing, the leading cryptocurrency trades for $3,250 a pop on Coinbase Pro, the essential benchmark of crypto exchanges. If Zhu’s analysis is accurate, and assuming that HODL5’s buyers are representative of the entire trading demographic, Bitcoin could potentially find a semblance of support at current values, as investors seek to cash-in on the crypto craze for the long haul.
Other reports indicate have confirmed that investors, are, in fact, scaling into cryptocurrency holdings en-masse. Extensive research recently completed by Diar, a leading crypto-centric data analytics unit, has revealed that the amount of ETH that Ethereum’s top 500 wallets have held has risen by 80% in 2018 alone. To put this growth into perspective, on January 1st, whales kept 11 million Ether under lock and key, as of November 30th, the same group of wallets held 20 million. Although conclusions cannot be drawn from this statistic, optimists have exclaimed that whales are heavily betting on a market turnaround.
Still, not all pundits are entirely convinced that this nascent market has found itself at a long-term bottom. Michael Bucella of BlockTower Capital recently told CNBC’s Fast Money panel that Bitcoin has yet to undergo its last leg lower, which will mark the end of crypto’s near-year-long “distress cycle.”
Related Reading: Interview: Stephen Innes Says Crypto, Bitcoin to “Grind Higher” Over Next Decade
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Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

CoinSpeaker

Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

According to cryptocurrency bull Tom Lee, Bitcoin is underestimated, and its fair price should be about $10,000 above where it is trading now.

Crypto Bull Tom Lee is Sure that Bitcoin Fair Price Makes at Least $13,800

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Source: CoinSpeaker

Bitcoin Price Showing Signs of Weakness, Loses $100 to Slip Below $3300

CoinSpeaker

Bitcoin Price Showing Signs of Weakness, Loses $100 to Slip Below $3300

Bitcoin price continues to slip further making new lows. On Friday, Bitcoin corrected over 3.5% to go below $3300 levels.

Bitcoin Price Showing Signs of Weakness, Loses $100 to Slip Below $3300

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Source: CoinSpeaker