Bitcoin Price Analysis: BTC Liquidity, Pennsylvania, Texas Clarity

Bitcoin Price likely to bounce above $3,800
Pennsylvania DoBS clarifies that crypto exchanges don’t need MTA licenses to operate
Average transactional volumes expected to rise in the short-term

After yesterday’s higher highs, Bitcoin is poised to extend their gains today. Gains are low but up from yesterday’s lows meaning our previous BTC/USD trade plan is valid. If our projections are accurate, then we expect BTC prices to retest $4,500 and $5,000.
Bitcoin Price Analysis
Fundamentals
There is a changing wave across the US. First, it was Texas, then Wyoming and now The Pennsylvania Department of Banking and Securities (“DoBS”) is responding to inquiries on whether the Money Transmitter Act (MTA) and more specifically, if the Money Transmission Business Licensing Law, applies for entities keen on delving into the crypto exchange business.
While answering “multiple inquiries,” the DoBS started by defining what money is while remaining categorical that under the MTA, Bitcoin is not money. They further expounded that businesses must comply with MTA requirements whenever fiat currency is involved.
Virtual exchanges, they note, are unique because they are facilitators and are don’t in any way handle fiat currency—classified as money under the MTA. This is so because exchanges only permit buying and selling of assets. As a result, they are not money transmitters and need not apply for Money Transmitter Business license to operate.
Candlestick Arrangements

The current trajectory is upwards. After yesterday’s bull pin bar and a spike in participation levels, traders expect prices to surge. Nonetheless, today’s price action could trend in limited ranges after yesterday’s bounce off $3,500.
All these are projections based on hard figures. Moreover, from the chart, the rejection of lower lows from off a critical Fibonacci level mean there is underlying demand. Therefore, prices could snap back to trend and rally towards $4,500.
At the moment though, traders should exercise patience and note that even in the midst of this optimism, BTC is trending in a broader bear market and this short-term uptrend prints within a bear breakout pattern where ideal resistance or retest lies at $5,800–$6,000 level.
Technical Indicators
Transaction volumes are tight and even with yesterday’s improvement—18k versus 13k, the path ahead is tough for bulls. To repeat our stand, and lift off above $3,800 should be via high transaction volumes preferably above those behind Jan 10 losses at 35k. Such high-volume break and close above would shift momentum from bearish to bullish as price action aligns with Dec 17 gains.
The post Bitcoin Price Analysis: BTC Liquidity, Pennsylvania, Texas Clarity appeared first on NewsBTC.
Source: New feedNewsBTC.com

Bitfury Releases New Set of Tools Aiming to Push the Adoption of Bitcoin Lightning Network

CoinSpeaker

Bitfury Releases New Set of Tools Aiming to Push the Adoption of Bitcoin Lightning Network

Bitfury strives to tackle one of Bitcoin’s eternal issue, limited scalability, with the brand-new toolkit released to boost the user experience of Bitcoin’s lightning network.

Bitfury Releases New Set of Tools Aiming to Push the Adoption of Bitcoin Lightning Network

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin [BTC] could soon see an imminent breakout due to recurring bear pennant pattern

The price of Bitcoin is currently in a consolidation phase after formation of a recurring pattern twice within the span of a month. The current price of Bitcoin, at the time of writing, was $3,580, with the market cap hovering at $63 billion.
1-hour
Source: TradingView
Bitcoin’s price action, as seen in the chart above, is the best example of history repeating itself. The overall trend of Bitcoin is a downtrend as it has consistently been forming lower lows as seen in the hourly charts.
Pennant
There is a clear formation of a pennant in the price action chart, which breaks out to the top and then moves in a sideways fashion before dropping to retrace the same pattern all over again. However, it will be in a slightly lesser proportion compared to the one before.
Pennants usually show how the price gets caught up between forming lower lows as they head towards the peak of the pennant, where they have no more room, thus causing a breakout.
The first pattern started its formation on December 27, 2018, and it proceeded to ricochet between the trend lines consistently. The price broke out of the pennant pattern caused a massive spike of 6.56% as the prices rose from $3,838 to $4,090, The spike was followed by a sideways movement, which caused a sudden collapse in prices.
Fibonacci Retracement
The sudden collapse in the prices took place in two distinct steps, which occurred at the 0.618 Fibonacci level. The 0.618 level or the 61.8% level is deemed as the most important level by most traders. The price drop happened from $4,026 to $3,618, making a pit stop at $3,812, which, in total, was a drop of 10.13%. By observation, it can also be noted that the second collapse was almost half of the first one.
The second pattern that formed, followed the footsteps of the previous pattern and the price broke out of the pennant at $3,625 and reached $3,728, which was a total percentage increase of approximately 3%, which is half of the previous breakout. This followed by yet another sideways/downtrend movement, which collapsed again at the same Fibonacci level as the previous pattern. The collapse took place from $3,689 to $3,514 with a stop at $3,587 at the 0.618 or 61.8% Fibonacci level. The total decline was 4.74%, which is approximately half of the previous collapse.
Moreover, before the formation of the second pennant, the sideways movement of the prices found support at 0.886 or 88.6% Fibonacci level of the first pattern which was eventually broken as the prices fell lower.
At the moment, the prices are being supported at the 0.86 or 88.6% Fibonacci level of the second pattern, which is at $3,514, a perfect correlation. If the prices ever decide to break below this support, there is going to be a collapse.
1-day
Source: TradingView
The one-day chart also shows a consistent downtrend with prices forming lower lows, indicating a strong bear trend for Bitcoin. Bitcoin’s fall into the abyss is currently being supported by two supports, the first and the imminent support is at $3,477, which was tested multiple times. The second support is the lowest that Bitcoin reached in 2018, which is at $3,139.
Volume 
The volume indicator shows a very important indication of decreasing volume that has been in play since mid-November, which confirms that the price will undergo a massive and sudden change in the future.
The change, as per the technicals, indicates that the price should move downwards, however, the prices could go either way.
The Relative Strength Index also shows a declining trend, indicating that the selling momentum for Bitcoin is increasing.
Conclusion
The one-hour chart shows a recurring pattern in which the prices are being supported at the 0.86 Fibonacci level. If the price ever decides to drop to below the current support it would face the next immediate support at $3,136. In a worst-case scenario, the price would go into a free fall until $1,900 and the price was last seen at this point on July 14, 2017.
If the breakout happens to the upside then the price would have no resistance until $4,422 to $5,000, where the prices will be tested before it moves up. However, the one-day chart shows a declining volume trend, which indicates a strong movement in price that might happen in a few days.
The post Bitcoin [BTC] could soon see an imminent breakout due to recurring bear pennant pattern appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin and other cryptocurrencies must migrate from PoW, says Bank for International Settlement in a research paper

Bitcoin’s search volume for the global market as a whole piqued in Q4 of 2017 when it’s price hit an all-time high of ~$20,000.
This search volume for Bitcoin far exceeded that of Gold, Silver, US Dollar. Much of the appeal/attraction for Bitcoin or other cryptocurrencies comes from the fact that there is no central controlling authority and the fact that one can be their own bank.
As exciting and promising Bitcoin sounds, a paper published by Bank for International Settlements says otherwise. The paper titled “Beyond the doomsday economics of “proof-of-work” in cryptocurrencies” mentions how Bitcoin’s Proof-of-Work [PoW] consensus mechanism has two flaws. The paper also touches on the economics of Bitcoin and PoW, whilst imploring what the future might hold for Bitcoin and other cryptocurrencies that are based on similar consensus algorithms.
The first limitation that the paper stated was that Proof-of-Work axiomatically requires high transaction costs to ensure payment finality.
As per Satoshi Nakamoto, double-spending is an attack by a large miner controlling a significant fraction of the network’s computational power. The paper stated:
“Nakamoto’s definition of payment finality (although not explicitly spelled out as such) is thus operational: the deeper a payment is buried in the ledger, the less likely an adversary with given computational resources will succeed in a double-spending attack.”
Double-spending on such a network of nodes would actually be more profitable than mining, hence, the blockchain for Bitcoin includes “economic payment finality” –  the instant that payment to another party is completed, at which point the receiving institution has irrevocable access to the money.
This can be avoided by incentivizing miners with a very high required ratio of income as compared to the transaction volume [the amount that can be double-spent].
Moreover, the paper provided a rough example that the mining income must amount to 8.3% of the transaction volume, which is a multiple of the transactions fees in today’s mainstream payment services.
The second limitation that the paper stated was that the system cannot generate transaction fees in line with the goal of guaranteeing payment security and that the system either works below capacity and users’ incentives to set transaction fees are very low or the system gets congested and suffers scalability issues.
Furthermore, the paper noted:
“Underlying this is a key externality: the proof-of-work and hence the level of security is determined at the level of the block one’s transaction is included in, with protection also being provided by the proofs-of-work for subsequent blocks… While each user would benefit from high transaction fee income for the miner, the incentives to contribute with one’s own fee are low.”
The paper concluded that PoW can only achieve payment security if mining income is high, but the transaction market for Bitcoin will not be able to generate an adequate level of income. As a result, the liquidity is set to deteriorate substantially in the future.
The paper stated:
“A simple model suggests that ultimately, it could take nearly a year, or 50,000 blocks, before a payment could be considered “final”.”
Moreover, the research indicated that the second-layer solutions for Bitcoin and other PoW-based assets like the Lightning Network or Sidechains can improve the economics of payment security but they in themselves still face scaling issues.
Due to the above-mentioned facts, the liquidity of Bitcoin and other digital assets that have forked from Bitcoin and PoW based cryptocurrencies will eventually need to migrate from PoW consensus algorithm to a more fitting and evolving consensus algorithm.
The post Bitcoin and other cryptocurrencies must migrate from PoW, says Bank for International Settlement in a research paper appeared first on AMBCrypto.
Source: AMB Crypto

Bitcoin Price Watch: BTC Runs Into Crucial Resistance, What’s Next?

Bitcoin price climbed higher sharply after diving below the $3,480 support level against the US Dollar.
Yesterday’s highlighted key bearish trend line is intact with resistance near $3,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is facing a crucial resistance near $3,600, above which it could rally towards $3,700 or $3,750.

Bitcoin price is showing positive signs above the $3,520 level support against the US Dollar. Having said that, BTC is struggling to clear the key $3,600 resistance level.
Bitcoin Price Analysis
Yesterday, we discussed the chances of more losses below the $3,500 level in bitcoin price against the US Dollar. The BTC/USD pair did decline below the $3,500 and $3,480 support levels. The pair spiked towards the $3,450 level and later bounced back. Buyers were successful in pushing the price back above $3,480 and $3,500. It can be considered as a false break since there was no hourly close below $3,480. The recent recovery was solid above $3,550 and the 50% Fib retracement level of the downside move from the $3,700 swing high to $3,465 low.
However, the price ran into a significant resistance near $3,600 and the 100 hourly simple moving average. More importantly, yesterday’s highlighted key bearish trend line is intact with resistance near $3,600 on the hourly chart of the BTC/USD pair. Finally, the 61.8% Fib retracement level of the downside move from the $3,700 swing high to $3,465 low is also acting as a hurdle. Therefore, there are two possible scenarios, with the pivot level at $3,600. First, the price breaks the trend line and $3,600 to start a solid upward move. Second, buyers fail to gain traction above $3,600, resulting in a drop back to $3,500.

Looking at the chart, bitcoin price seems to be trading near a crucial juncture at $3,600. There are high chances of more gains, but it won’t be easy for buyers to clear the $3,600 barrier.
Technical indicators
Hourly MACD – The MACD for BTC/USD is slowly moving back in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently placed nicely above the 50 level.
Major Support Level – $3,500
Major Resistance Level – $3,600
The post Bitcoin Price Watch: BTC Runs Into Crucial Resistance, What’s Next? appeared first on NewsBTC.
Source: New feedNewsBTC.com

Bitcoin Price Analysis: BTC Lift Off, Cross-Hairs at $4,500

Bitcoin Price recover, bulls bounce back
Market leaders set positives in Blockchain and crypto
There is a jump in market participation level. Volumes swell in the 4HR time frame

After Jan 20 drops, BTC is finding support at around $3,500—the lower limit of our support zone. As a result, there is a likelihood that Bitcoin prices will rally in coming days.
Bitcoin Price Analysis
Fundamentals
Jerry Yang has been a longtime fan of blockchain and cryptocurrencies. So, his recent comment at the Nikkei Innovation Asia Forum held in Singapore is nothing new. At the Forum, he said blockchain is a perfect fit for banks and trading.
Yang is particularly impressed by the type of infrastructure in progress saying it shall have a long-term implication. However, this is not the first time he has endorsed this nascent technology.
In a CNBC interview back in late 2017,  the Yahoo Co-founder said he was a firm believer in cryptocurrencies and the efficiencies it tags goes a long way in benefiting the society not only from transactions point of view but from it does create a transparent system.
As we know, banks’ operations are often opaque, and it is common to hear of large settlement after being held accountable for facilitating money laundering or defrauding customers.
Candlestick Arrangements

At spot rates, BTC prices are stable and positively hovering above the lower limit of our support zone at $3,500. From candlestick arrangement, this is bullish, and if anything, developments, especially in the 4HR chart, is exceptionally optimistic meaning aggressive traders can initiate positions at spot rates.
Behind this optimism is a bullish pin bar—clearer in the 4HR chart—bouncing off Jan 20 lows at the back of above average volumes—5k versus 2k. Increasing demand in lower time frames means there is a similar pattern in the daily chart, lifting investor confidence.
All the same, we shall interpret this as positive, but before we recommend risk-averse traders to buy, BTC prices first need to rally above $3,800 or Jan 14 highs. Only then will traders execute with first targets at $4,500 with liquidation level at around $3,500-700.
Technical Indicators
There is a rejection of lower lows and backing this resurgence is increasing demand for BTC as aforementioned. The double bar bull reversal pattern in the 4HR chart is at the back of high trading volumes—5k versus 2k. Because of this, risk-off traders can buy at spot rates, but it is ideal if there is confirmation as a spike in market participation drive prices above $3,800.
The post Bitcoin Price Analysis: BTC Lift Off, Cross-Hairs at $4,500 appeared first on NewsBTC.
Source: New feedNewsBTC.com

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

CoinSpeaker

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

Bitcoin has good chances to win a competition with gold and become the premier alternative economic option in the world.

Bitcoin Has All the Chances to Become the New ‘Digital’ Gold, and Here’s Why

Continue reading at Coinspeaker
Source: CoinSpeaker

Ripple Further Spreads Its Reach Joining Chinese University for Blockchain Scholarship Program

CoinSpeaker

Ripple Further Spreads Its Reach Joining Chinese University for Blockchain Scholarship Program

Ripple recently partnered with the Institute for Fintech Research, Tsinghua University to offer scholarships. They aim to sensitize the Chinese young leaders about blockchain’s international regulations.

Ripple Further Spreads Its Reach Joining Chinese University for Blockchain Scholarship Program

Continue reading at Coinspeaker
Source: CoinSpeaker

Exclusive Interview with TRON’s Founder, Justin Sun: We Return Power Back to Users

CoinSpeaker

Exclusive Interview with TRON’s Founder, Justin Sun: We Return Power Back to Users

In this exclusive interview, TRON founder Justin Sun explains what value the project proposes to its users, unveils how it stands out from other initiatives and shares TRON’s future plans.

Exclusive Interview with TRON’s Founder, Justin Sun: We Return Power Back to Users

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin [BTC] Technical Analysis: Bear weathers the coin down

The cryptocurrency market is seen to have a sideways movement, with the major coins seeing the vermillion side of the market mostly. Bitcoin [BTC], the largest-cryptocurrency in the market, is also seen to have a similar trend.
At the time of press, the coin was valued at $3,563.14, with a market cap of $62 billion. The coin registered a 24-hour trade volume of $4.8 billion, with a dip of 0.75% over the past day. The coin has registered a fall of 3.69% over the seven days and is still falling by 0.09% in the past hour.
1-hour
Source: Trading View
The one-hour chart of Bitcoin indicates that the coin had been falling from $3,599.12 to $3,514.04, the coin noted another significant downtrend from $3,690 to $3, 529.55. The coin failed to register any significant uptrend in the one-hour chart. The coin marked a resistance at $3,549.21 while strong support was provided at $3,519.52.
Bollinger Bands appear to have formed a tube-like formation, indicating lesser volatility in the market. The moving average line is above the candlesticks marking a bearish market.
Awesome Oscillator also marks a bearish market, but as per the recent trends, this might also be short-lived.
Chaikin Money Flow, on the other hand, points towards a bullish trend as the marker is above zero.
1-day 
Source: Trading View
The one-day chart of BTC also shows a massive downtrend from $6,146.01 to $3,380.01, with another downtrend marked from $6,293.38 to $3,703.39. Even the one-day chart could not trace a viable uptrend. The resistance is marked for the coin at $4,075.34 and the support is noted at $3,183.
Parabolic SAR indicates a bearish market as the markers have aligned above the candlesticks.
MACD line is under the signal line, pointing towards the bear’s stronghold on the market.
Relative Strength Index indicates that the buying and the selling pressures are evening each other out.
Conclusion 
The indicators Parabolic SAR, MACD, Bollinger Bands, and Awesome Oscillator point towards a bearish trend for the BTC market. However, Chaikin Money Flow predicts a bullish market. The coin has to fight the bear to take up any bullish trend.
The post Bitcoin [BTC] Technical Analysis: Bear weathers the coin down appeared first on AMBCrypto.
Source: AMB Crypto

Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

CoinSpeaker

Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

According to Huw van Steenis, senior adviser to Bank of England Governor Mark Carney, cryptos have no value and fail fundamental tests of financial services.

Davos 2019: Crypto is Not a Threat to Traditional Banks, Believe Bank of England’s Officials

Continue reading at Coinspeaker
Source: CoinSpeaker

Bitcoin Price Watch: BTC At Continued Risk of Weakness

Bitcoin price remained in a bearish zone below the $3,580 and $3,600 resistance levels against the US Dollar.
There is a major bearish trend line in place with resistance near $3,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The price is currently trading inside an expanding triangle with resistance near the $3,580 level.

Bitcoin price started consolidating losses above the $3,480 support against the US Dollar. BTC is likely to face a strong selling interest near the $3,580 and $3,600 levels.
Bitcoin Price Analysis
Yesterday, there was a significant downward move below the $3,650 support level in bitcoin price against the US Dollar. The BTC/USD pair even traded below the $3,560 support level and the 100 hourly simple moving average. It spiked below the $3,500 support and a low was formed near the $3,465 level. Later, the price recovered a few points above the $3,500 and $3,525 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the last drop from the $3,701 swing high to $3,467 low.
However, the previous support near the $3,550 and $3,560 levels acted as a strong barrier for buyers. The price even struggled to test the 50% Fib retracement level of the last drop from the $3,701 swing high to $3,467 low. There were a couple of swing moves near the $3,550 level, with no upside break. At the outset, the price is trading inside an expanding triangle with resistance near the $3,580 level. Moreover, there is a major bearish trend line in place with resistance near $3,600 on the hourly chart of the BTC/USD pair. Therefore, a break above the $3,580 and $3,600 resistance levels is needed for a decent recovery.

Looking at the chart, bitcoin price may continue to trade in a range below the $3,550 and $3,580 levels. The next move in BTC could be either above the $3,600 resistance or below $3,480.
Technical indicators
Hourly MACD – The MACD for BTC/USD is about to gain traction in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well below the 50 level, with a bearish angle.
Major Support Level – $3,480
Major Resistance Level – $3,600
The post Bitcoin Price Watch: BTC At Continued Risk of Weakness appeared first on NewsBTC.
Source: New feedNewsBTC.com

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.
Featured image from Shutterstock
The post Analyst: Bitcoin (BTC) Support Level at $3,550 Weakening After Volatile Weekend appeared first on NewsBTC.
Source: New feedNewsBTC.com

Coinbase Exec Unveils What 2019 Will Bring for Bitcoin Regulation Globally

CoinSpeaker

Coinbase Exec Unveils What 2019 Will Bring for Bitcoin Regulation Globally

The unfolding year is said to bring many changes to cryptos and an intense regulation framework is going to be one of them according to Coinbase’s lead counsel in the UK.

Coinbase Exec Unveils What 2019 Will Bring for Bitcoin Regulation Globally

Continue reading at Coinspeaker
Source: CoinSpeaker