Bitcoin, Ethereum and Ripple Display More Stability in Q3 2019 – ExoAlpha Report

The third quarter of 2019 saw a decline in Digital Assets Market capitalization. The total market capitalization fell down from its peak in July 2019 ($300bn) to nearly $200bn at the end of September. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) which represent more than 80% of the total market capitalization displayed a significant decline in their prices owing to the fall in the total market cap. A recently released report by ExoAlpha highlights the plight of the top 3 coins and how they shaped the market in the third quarter.
A Look At Market Stats of Top 3 Coins
The third quarter saw Bitcoin price declining by 23%. Ether also suffered a sharp 38% decline. Interestingly, the volatility of the top 3 most liquid Digital Assets was lower than over the previous quarter: 75% for BTC, 69% for XRP and 83% for ETH. Even the digital assets derivatives market witnessed a key event this quarter, with the launch of the Bakkt platform on the 23rd of September 2019, the first regulated, Bitcoin futures contract physically delivered exchange, backed by the Intercontinental Exchange (ICE) exchange. 
Bitcoin Volatility
Bitcoin’s volatility was marked at 74.5% in the 3rd quarter and it reduced by 13% from the Q2. Furthermore, the volatility decreased from a high in July of 99% to a low in September at 53.6%. Over the quarter the volatility of Bitcoin has been 4 times higher than the volatility of the S&P 500 or Gold. 
Source- ExoAlpha Report
Ethereum Volatility 
Ethereum displayed 82.8% volatility in the third quarter. The volatility stood at 89.7% at the end of the second quarter. During the third quarter, its volatility decreased from a high in July of 98% to a low in September at 79.4%. Over the quarter, the volatility of Ethereum has been more than 4 times higher than the volatility of the S&P 500 or Gold. Also, over the last 5 years, the volatility of Ethereum topped above 200%, in 2016 and 2017.
Source- ExoAlpha Report
Ripple Volatility
The volatility of XRP in Q3 was marked at 68.7%, lower than Q2 (96.4%). During the quarter, its volatility ranged between 54.9% and 76.5% with a low of 54.9% in August.  Over the quarter the volatility of XRP has been more than 3 times higher than the volatility of the S&P 500 or Gold. 
Source- ExoAlpha Report
Bitcoin & Ethereum’s Correlation to Traditional Assets 
It was also observed that while Bitcoin has not shown a correlation to traditional assets such as the S&P 500 index or Gold, its beta to these traditional assets has ranged between -2 and +3 at times. 
Source- ExoAlpha Report
Even, Ethereum’s beta to these traditional assets has ranged between -2 and +4 at times.
Source- ExoAlpha Report
Passive Index Volatility 
The volatility of the Passive Index in Q3 was fount to be at 57.7%, lower than at the end of Q2 (65.3%). During the quarter, its volatility decreased from a high of 90% in July to a low in September at 30%. 
Source- ExoAlpha Report
Will the leading crypto assets display more volatility trends in the Q4? Let us know, what you think in the comments below!
The post Bitcoin, Ethereum and Ripple Display More Stability in Q3 2019 – ExoAlpha Report appeared first on Coingape.
Source: CoinGape

Bitcoin Price Analysis: BTC/USD Miraculously Defends This Flag Pattern On Bybit Margin Trading

Bitcoin defends $7,800 averting the danger of a possible breakdown to $7,400.
In the long-term, Bitcoin remains bullish with a possible falling wedge pattern breakout.

Bitcoin has for the second time this month defended the at $7,800. However, this is not a cause for celebration as the majority of analysts believe that this year’s bottom will be around $6,000. On the contrary, it is good to celebrate small victories that eventually win the war.
The brief reversal seen yesterday saw Bitcoin reclaim its position above $8,000. Unfortunately, movement above $8,100 remained largely contained. This hindered upward movement leaving the bulls not only demoralized but also vulnerable to the jabs thrown by the sellers. Eventually, the support at $8,000 caved in allowing a short-lived dive towards $7,800.
BTC/USD daily chart
BTC/USD price chart by Tradingview, Bybit
On the brighter side, $7,800 a previous support (last week) had high congestion of buyers who immediately pulled Bitcoin above $7,900. This move defended the flag pattern support at $7,800. Twice Bitcoin bulls have attempted a breakout above $8,800 (flag resistance limit) but failed miserably. If the correction made it under $7,800, the chances of Bitcoin plunging to $7,400 would be great.
Bitcoin Long-term Outlook for Long Traders
As for Bitcoin’s long traders, the current movement is unfavorable. However, the forming falling wedge pattern dictates that a significant recovery is underway. A breakout above the range resistance will place Bitcoin in a trajectory towards $9,000 and $10,000 levels respectively.
Consequently, Bitcoin is heading into a death cross pattern. A pattern that occurs when the 50 MA crosses below the 100-day MA. This pattern is interpreted as bearish but history has seen Bitcoin bounce incredibly leaving the sellers trapped in what they thought was a downtrend.
Bybit Bitcoin contract last traded price currently stands at $7,958. They have a marked price of $7,953 at the time of writing while the index price stands at $7,953. The exchange has recorded 535,681,752 contracts in the last 24-hours.
Trade Bitcoin on Bybit ->
Bitcoin Technical Levels
Last price: $7,954
Support: $7,800, $7,700 and $7,400.
Resistance $8,000, $8,200, $8,400 and $8,800.
Trend: Bearish (short-term)
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Source: CoinGape

Binance Bitcoin [BTC] Futures Daily Traded Volume Drops by Over 35% of ATH

Binance BTC Futures daily traded volume drops by over 35% from its all-time high trades

Binance bitcoin futures recorded the highest trading volume since its launch on Oct. 15.
The daily traded volume of Binance futures currently stands at $499million USD, representing 39% plummeting from the ATH volumes.
Binance Coin (BNB) drops over 50% since all-time high price of $38 USD.

Binance trading volume tops $800 million USD
The month-old Binance BTC Futures are breaking all kind of records when it comes to crypto derivatives trading. This follows an excellent start to the month of October in which the volume of futures traded exceeded the spot trading volume, daily traded volume broke the $800 million barrier placing the asset class second, only behind BitMex in the daily traded volume rankings, and also the exchange’s latest BNB coin burn.

 Source: Skew Markets
Despite the high volumes recorded, Binance only offers 20X leverage on its trading products, substantially low compared to its rival, BitMex’s 100X leverage.
A 30% drop in volume of futures
However, since reaching its peak, the daily volume of BTC futures has dropped by 30% in the past 48 hours, with a total of $499 million USD worth of futures traded today. BitMex leads the volume ranking with a total of $1.49 billion USD worth of trades with Huobi exchange recording a total of $890 million USD worth of BTC futures trades.
Source: Skew Markets
Binance just edges out CoinFlex on the third spot with $499 million USD worth of BTC futures trades in the past 24 hours with the latter recording $491 million USD worth of trades.
Binance coin price slows down in Q3
Binance coin (BNB) has experienced over 300% increase in price since January’s price of $6 USD per BNB token. However, during the third quarter of the year, the price experienced a sharp reversal in price from an all-time high price of $38 USD to a current price of $17.76 USD, representing over 53% decrease in price.
The fall of BNB prices comes amidst shock from Binance CEO, Changpeng Zhao, who believes the platform grew sufficiently in Q3 to prevent the plummeting of price. CZ Binance released a thread of tweets to his followers highlighting the exchange’s achievements in the past few days.
CZ Binance responds to criticisms on the fall of BNB price across Q3 (Source: Twitter)

In the last 24 hours or so:
– Reduced supply of $BNB by 2,061,888 (roughly $36m USD)– Cumulative revenue as (calculated by @lawmaster) hits $1b (and we didn't even know it).– Bermuda Government accepts $BUSD for paying taxes– LaunchPad @kava_labs1/2
— CZ Binance (@cz_binance) October 17, 2019

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Source: CoinGape

Bitcoin Slowly Forming A Bullish Pattern, Analyst Says $8,800 In View

Bitcoin recently broke the resistance at $8000 and the top cryptocurrency now barely rests above that level. After such a bullish breakthrough, the pace-setter cryptocurrency has continued to maintain a spot above $8k and according to analysis, further bullish pattern is slowly forming and Bitcoin may eventually get a spike to $8,800.
The Bullish BTC Analysis By CryptoWelson
According to cryptocurrency analyst and trader going by the name CryptoWelson on Twitter, there is a bullish possibility which may take the price of Bitcoin to the $8,800 level. The analysis identified a support level close to $8k which must be surpassed in order to continue on the bullish trajectory described by CryptoWelson. According to him, if BTC surpasses that support, then that will initiate a bull channel in which BTC is expected to gain about 10% before the end of the week.

#Bitcoin could be forming a bullish channel. 🤑
If we can bounce from this support, we will be going to 8800$+ this week! 📈
A break below the green line would confirm the bearish scenario!
— CryptoWelson 📊 (@CryptoWelson) October 17, 2019

The Other Side Of The Coin
Although CryptoWelson sounded quite bullish about the short-term price movement of BTC, he also stated a condition that might cause a reversal of the bullish trend. Expressing the possibilities of a bear market in days to come, CryptoWelson predicted that a break below a supposed greenline ($8k level) would confirm the next bearish movement which will send BTC further downwards.
BTC 24-Hour Price Movement
BTC opened a 24-hour trading period at around $7,999.61. BTC slowly climbed the $8k level and maintained its price above the area hitting $8,091 within the next two hours. The momentum only grew as BTC pushed into the $8,100 region at the early hours of Thursday, gaining about 1.5% since yesterday. At the time of writing this piece, BTC is changing hands at $8,105.
Further Analysis On Bitcoin Price
There seems to be a wide bullish sentiment around the price of Bitcoin lately. With many analyses pointing to a bullish possibility in the short term, another bitcoin trader predicts that bitcoin will eventually take off towards $9k. Although the trader, simply known to run a Twitter account under the name Crypto Trading Africa presented a bearish outlook which, if actualised, may see bitcoin losing about 2% from its current price before the run to $9k.

Possible turn out of event on the BTCUSD 1H chart!.. I bet we may retest $7800 before taking off to $9k zone#crypto #altcoins #trading #btc $RVN $XRP
— Crypto Trading Africa (@Africa_BTC) October 14, 2019

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Source: CoinGape

Kucoin Announces Launch of Monthly Bitcoin Futures Contracts On Its Derivative Exchange KuMEX

The futures platform, KuMEX of popular cryptocurrency exchange, Kucoin has announced its intention to begin operating bitcoin monthly contracts in a few weeks’ time.
KuMEX To Offer Monthly Bitcoin Futures Contracts
According to an update that has gone up on their official twitter account, the futures platform revealed that their founder, Michael Gan, speaking at the blockchain life 2019 event in Moscow, unveiled the information that KuMEX will be launching monthly bitcoin contracts soon.

#KuMEX Bitcoin Monthly Contracts are drawing near!👏
Today at the #Blockchain Life 2019 Forum in #Moscow, our founder Michael @gan_chun disclosed that KuCoin’s Futures Platform KuMEX will be launching Bitcoin Monthly Contracts in a few weeks.#KuCoin #BUIDL
— KuMEX (@KuMEX_Official) October 16, 2019

Although much of the necessary information related to the highly anticipated monthly bitcoin contracts like the specific date of the launching is not public yet, we expect the platform to update its community as progress is made in the development of the same.
The news comes following an official announcement by Kucoin that the exchange has revised its exchange center. The revision, according to the announcement made major changes to the platform along basic lines like markets, platform display, and trading functionalities like orders and order books.
Bitcoin contracts have become the goose that lays the golden eggs among futures exchanges. Top crypto exchanges like Binance and other platforms like Bakkt recently introduced Bitcoin contracts to their customers. As this is expected to grow in the future, many smaller exchanges are venturing into the same endeavors to gain considerable market share.
KuMEX Initiates Trading Competition
KuMEX, which is the futures subsidiary of top crypto exchange, Kucoin has been in operation for a couple of months now. Since it was launched recently, KuMEX opened the Bitcoin Perpetual Contract (XBTUSDM) and offered up to 20x leverage. As a form of celebrating the kick-off, KuMEX initiated a trading competition in which 10,000 KCS were being offered as rewards for customers according to their return rate ranking. The platform currently supports three types of order: limit order, market order and stop order.
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Source: CoinGape

USA Adds 100+ Bitcoin ATMs in 2 Weeks; Miami International Airport Welcomes Its First Bitcoin ATM

Miami International Airport (MIA) was reported to have welcomed its first bitcoin Automated Teller Machine (ATM). The announcement was made by Bitstop, which is a Miami-based bitcoin technology software company.
Bitstop Installs A Bitcoin ATM At MIA
In an official announcement, Bitstop co-founder and chief strategy officer Doug Carrillo expressed his delight about collaborating with Miami International Airport –
“We are delighted to have this historic transaction with Miami International Airport,” More and more people like it, and Miami International Airport is the perfect place for customers to exchange dollars for Bitcoin when traveling domestically or internationally. ”
PR Global Newswire reported earlier this year that Bitstop was working earnestly to install several bitcoin ATMs at strategic destinations across the United States. The installation of a bitcoin ATM at the Miami International Airport will aid in easier exchange of cash into bitcoin for travelers. The airport has the Bitcoin ATM installed at the central hall G next to Gate 16.
At the moment, Bitstop has installed 130 bitcoin ATMs across the United States and has a short term vision of installing about 500 bitcoin ATMs worldwide before 2021.
Rising Demand For Bitcoin ATMs
As per statistics on Coin ATM Radar, the United States presently houses more than 3700 bitcoin ATMs of the total 5,756 located in 75 countries across 5 continents.
Recently, Coingape reported a rising demand in bitcoins ATMs. Since then, the number of global bitcoins ATMs installation has increased steadily, bringing the figure to 5756. The report stipulated that an average of 6 bitcoin ATMs are being installed on a daily basis. According to the report,

The total number of crypto ATM’s across the globe stands at 5756
There are 75 countries in the world that house a crypto ATM. The most installations are in USA (3714 locations), followed by Canada (708 locations) while Austria (191 locations) took third place.
There are 51 manufacturers of crypto ATMs across the globe.
There are 555 Bitcoin ATM operators around the globe.

Bitstop ATMs Charge 13.5% Fees
Bitstop’s product is a Bitcoin-focused Automated Teller Machine that provides the services of exchanging cash into bitcoins across the United States. It requires users to register with an ID document or a mobile device for verification. Users, after completing the required verification will scan QR codes for deposits to be made.
It takes only about 3 secs for bitcoin to be bought with Bitstop ATMs, however, the downside of the affair is a 13.5% charge on using such machines. This is significantly higher than the transaction fees charged on bitcoin exchanges. Also, the high transaction fees are a norm across major ATMs which makes them a less favorable option for buying bitcoin.
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Source: CoinGape

Dr Doom Calls Bitcoin Cash [BCH] a Shitcoin in a Debate With Roger Ver

American economist Nouriel Roubini aka Dr Doom recently declared his contempt for Bitcoin Cash (BCH) in a debate with the promotor of the cryptocurrency, Roger Ver. The debate was a part of this year’s CC Forum – Blockchain and AI Investment Forum in London in which Dr Doom publicly announced that BCH is a “shitcoin”.
 Dr Doom Vs Roger Ver – Is Crypto a Store of Value or Not?
The topic of the debate was “Will cryptocurrencies fail or succeed?” Roubini began by refuting the opinion that cryptocurrencies are actually currencies on the grounds that they were not a sound, stable store of value and therefore, could not be used for payments. Bitcoin and thousands of other cryptocurrencies were not used for pricing goods and services. He also talked Bitcoin’s lack of scalability. Roger Ver responded to the Roubini’s points by reminding him that the market cap of cryptocurrencies had grown over $200 billion in just 10 years. About Roubini’s point on using crypto for payments, Ver cited the example of Bitcoin Cash, which, he said, could do more than a 100 transactions per second globally for free.
However, Roubini wasn’t convinced. To substantiate his point about crypto not being a stable store of value, he remarked that Bitcoin was 60% below the peak, whereas Roger Ver’s Bitcoin Cash was 95% below the peak this year, further saying that assets which lost 95% of their value in just 12 months were a joke. Ver, however, had an analogy to prove that even fiat lost its value. He cited the example of the Japanese Yen, saying that today, 10,000 Yen were equivalent to about 90 USD. However, not a long time, a single Yen could buy an ounce of silver. Today, the piece of paper which was worth about 90 USD, had a value of about 20,000 USD in the past.
Is Crypto Useful in the Event of Geopolitical Shock?
The moderator of the debate then pointed that crypto usage increased in the event of recession, citing the example of the Greek government debt crisis. Roubini, as expected, refused to acknowledge the same. Instead, he said that cryptocurrency usage, and the number of transactions and users had collapsed since the all-time high of crypto in 2017. Ver was quick in pointing out that Roubini was “cherry-picking” his data. Crypto usage today was much higher than it was even a year before the market cap had had hit its 2017 ATH.
Dr Doom then cited the example of the rise of the internet. From 1990 to 2000, it had garnered billions of users and websites, and some important applications like email. But with crypto, that has not been the case. Bitcoin only has 50 MM users officially and half of them are dead. When it comes to DApps, the most popular DApps are Crypto Kitties, Casino Games or Ponzi Schemes. Ver again quoted the example of how movement of money had emerged as the strongest use case of crypto – millions of users transacting with one another without any barriers.
McAfee Okay With Terrorist Activities Happening Through his Exchange
At a point during the debate, the moderator brought up John McAfee’s new decentralised exchange, which did not have any KYC requirements. He shared that McAfee, in an earlier session, was asked about his opinion on how would he feel if a terrorist was caught and it was proven that they had used his exchange to commit the terrorist act. To this, McAfee responded that he would be okay. In support of McAfee’s answer, Ver said that US dollar was the currency that being used the most in terrorist activities, but that did not mean that the world would stop using the currency.
“Your Shitcoin Collapsed 95% in a Year” – Roubini to Ver
The debate delved into the right and wrong of crypto with Roger Ver repeating that people should be allowed to have control over their money and Roubini stressing over and over again that the kind of financial anarchy that Ver talking about had never existed and never would. At one point, Roubini had an outburst where he had said that it had taken a 100 years for the dollar to collapse 95% whereas Roger Ver’s “shitcoin” collapsed in a year. He said –
“[It] took a year for your shitcoin to collapse 95%. It’s worth nothing.”
An infuriated Roubini further said that Ver did not believe in the government, but buying explosives on the internet was his idea of freedom. Roubini even personally attacked Ver by bringing up the point of him having spent time in jail. Ver used this point to his advantage and pointed out that Roubini was losing the argument as he had started “attacking the person rather than the arguments here.”
Bitcoin is Not Decentralised But the Traditional Financial System Is – Roubini
The debate shifted to the topic of centralisation and decentralisation. Roubini argued that the traditional financial system was decentralised as it had thousands of financial institutions and hundreds of banks and currencies involved in controlling it, whereas Bitcoin was centralised because 80% of mining was in the control of a few hands and 99% of cryptocurrency exchanges were centralised. To this, Ver said that decentralisation was not the main argument in favour of cryptocurrencies and its only purpose was to make cryptocurrency censorship-resistant.
The debate concluded with questions from the audience, and in this, Roger Ver, supporting cryptocurrencies because of the financial freedom they offered to users, was a clear winner.

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Source: CoinGape

Bitcoin Price Analysis: BTC/USD Potential Breakdown Eying $7,600

Bitcoin falling wedge pattern break opens the Pandora box as target shifts to $7,600 and $7,200.
The temporary support at $8,000 has to hold if Bitcoin bulls desire to avoid a trip to $7,600.

It is apparent that Bitcoin and the majority of cryptocurrencies are yet to bottom. By Bottoming I do not mean it sliding to the levels experienced in November and December but to levels within the current trend. For a period of over three months from April to June, Bitcoin recorded incredible gains month-over-month. However, the barrier encountered at $13,800 opened the Pandora box; effects of which are biting the bulls at their backs.
Following the recovery from the lows at $7,700, Bitcoin ascended to the levels at $8,800. Higher movements became untenable as bears swung into action. The price is currently lethargic above $8,000. A brief correction to levels above $8,300 this week was a bull trap as a quick reversal ensued.
BTC/USD 4-hour chart
BTC/USD price chart by Tradingview
Looking at the 4-hour we see the ongoing bearish momentum as the aftermath of the broken rising wedge pattern. The pattern is usually interpreted as a reversal signal especially when its support is breached amid an up-trending market (similar to Bitcoin’s in the last couple of weeks.
From a technical perspective, the downtrend is likely to continue pressing down on key support areas including $8,000, $7,800 and the major support at $7,700. The Relative Strength Index (RSI) suggests that continued bearish action as it slides into the oversold region. Besides, the Moving Average Convergence Divergence (MACD) emphasizes the downside action with the increasing bearish divergence. The target to the south is set at $7,600 (a possible bottom for Bitcoin) while $7,200 is an overstretch.
Bitcoin Key Technical Indicators
Spot rate: $8,054
Relative change:
Support: $8,000, $7,800 and $7,000
Resistance: $8,200 and $8,400
Trend: Bearish
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Source: CoinGape

XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff as $7,000 Lingers – BitMEX Margin Trading

Bitcoin stares into a possible breakdown to $7,000.
Bitcoin bulls must defend $8,000 support and push for correction above $8,400.

Bitcoin price is inching closer to a breakdown amid the development of a rising wedge pattern. After the price found support from the overwhelming declines experienced since the highest in June around $13,800, Bitcoin bulls pulled towards $9,000. However, the momentum hit a snag at $8,800. The aftermath of the rejection is the ongoing bearish action likely to break the critical $8,000.
XBT/USD daily chart
XBT/USD price chart by Tradingview
The price is dancing at $8,161.5 after the break under the falling wedge pattern. Limited action downwards is expected in the current and coming sessions due to the low volume and low volatility. Besides as long as the Relative Strength Index (RSI) stays below 50 (average), the sellers’ grip will prevail. The RSI’s sideways movement means that Bitcoin’s price will continue ranging between $8,100 – $8,200.
The Moving Average Convergence Divergence (MACD) shows that bullish action is still present. The slightly positive divergence also shows that Bitcoin has enough strength to defend the short-term support at $8,100. The biggest and most important task is to keep Bitcoin above $8,000 because if losses extend towards $7,700, Bitcoin could diver towards $7,000.
XBT/USD 1-hour chart
XBT/USD price chart by Tradingview
The short-term one-hour chart shows Bitcoin having broken below short-term ascending trendline support. $8,200 is the immediate support while correction above the 100 Moving Average (MA) is likely to push the price above $8,400. The current trend is inclined to making losses despite a gradual upward slope with RSI.
XBT/USD Key Technical Levels
Spot rate: $8162
Relative change: +3
Percentage change: +0.03% on the day
Open: $8,161.17
High: $8,174.24
Low: $8,140.59
Trend: Bearish
The post XBT/USD Analysis: Bitcoin Dancing At The Edge Of High Cliff as $7,000 Lingers – BitMEX Margin Trading appeared first on Coingape.
Source: CoinGape

Bitcoin Price Analysis: Is The Surge To $8,800 Dependent On Overcoming $8,400 Zone?

Bitcoin numerously defends trendline support forming a higher low pattern.
Correction above $8,400 and the 100 EMA likely to boost BTC/USD towards $8,800 hurdle.

Bitcoin is generally trending upwards. However, you can only appreciate this when you get a broader look. From the recent lows roughly at $7,700, BTC/USD has formed a relatively strong lower pattern. The ascending trendline has been tested severally each time, Bitcoin has bounced back up. Unfortunately, last week’s correction towards $9,000 was sabotaged at $8,800.
BTC/USD 4-hour chart
BTC/USD price chart by Tradingview, Coinbase
The granddaddy of cryptocurrencies is exchanging hands at $8,295. Bitcoin has made $8,300 the latest pivotal level. At the same time, the movement to the upside is capped under $8,400. Moreover, the price is trading below the 100 Exponential Moving Average (EMA). Correction above the EMA would give Bitcoin the much-needed boost to clear the resistance at $8,400.
From a technical perspective, Bitcoin is likely to remain lethargic between $8,400 and $8,200 in the near-term. For instance, with the Relative Strength Index (RSI) leveling around, sideways trading is the most likely direction of movement. Traders should be on the lookout for changes in the RSI either towards 70 or 30. The change in direction will signal upward movement in price or breakdown towards $8,200 support.
The Moving Average Convergence Divergence (MACD) is also horizontal at 0.000. This sideways movement mean that the bulls currently have the energy to defend short-term support areas. However, movement towards $8,800 depends on an improving technical picture as well as zoom above the seller congestion at $8,400.
Bitcoin Key Technical Levels
Spot rate: $8,292
Relative Change: -66
Open: $8,356
Low: $8,266
High: $8,417
Trend: Bearish
Volatility: Shrinking
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Source: CoinGape

BTC/USD Analysis: Impending Bounce From Resistance Line Targets $7,800 – Bybit Margin Trading

Bitcoin attempts breakout past the EMA 100 but a bounce is likely at the descending trendline resistance.
Short-term bullish bias prevails amid expanding trading volume.

Bitcoin is relatively pushing for consolidation within a wide range between $8,200 and $8,500. The sideways movement comes after Bitcoin was rejected at $8,800 last week. Support above $8,200 was strong enough to cut short the drop. However, the bounce that followed was sabotaged by increasing selling pressure under $8,500.
BTC/USD four-hour chart
BTC/USD price chart Tradingview,  Bybit
For now, Bitcoin is trading marginally above $8,330 amid a weakly building bullish momentum. The immediate upside is limited by the 100 Exponential Moving Average (EMA). Similarly, the descending trendline has been tested twice. Both of those times, it has resulted in reversal actions with Bitcoin slashing off most of the gains made. This trendline on the one-hour chart is still hindering growth and is likely to force a devastating drop in the price.
Consequently, the lack of a breakout could further demoralize the bulls who have been under high pressure in the past few days. It is important that the buyers defend $8,200 support as if it is the last one. Because once broken, instability coupled with panic could see Bitcoin disintegrate to test $7,800 (major support).
Meanwhile, the Relative Strength Index (RSI) signals bullish short-term momentum. The RSI is forming a higher low pattern which signifies an improving bulls’ grip. The expanding volume means that more action is likely to be stirred to the upside in the short-term.
According to the data from Bybit Bitcoin contracts trading platform, BTC/USD last price is $8,336. It has a lower mark price of $8,330.66 and an even lower index price of $8,329.65. Bitcoin contracts on Bybit have seen a 24-hour trading volume of 517,245,187 contracts.
Trade Bitcoin on Bybit ->
BTC/USD Key Technical Levels
Spot rate” $8,336
Trend: Short-term bullish
Support: $8,200, $8,100 and $7,800
Resistance: $8,400, $8,600 and $8,800
Volatility: Shrinking
Volume: Expanding
The post BTC/USD Analysis: Impending Bounce From Resistance Line Targets $7,800 – Bybit Margin Trading appeared first on Coingape.
Source: CoinGape

Institutional Interest in Bitcoin Futures On A High Says ICE Executive

In an interview with The Edge Markets, ICE Vice-President Jennifer Ilkiw said that a larger number of institutional investors are taking interest in trading Bitcoin Futures. 
Exchanges Lack Risk Management Procedures
Ilkiw said that institutional investors are unable to trade the same on existing exchanges as they continue to be unregulated entities. Furthermore, many of the exchanges lack risk management procedures and comprehensive market surveillance and supervision system to spot market manipulation.
“We have a lot of high-frequency traders who are interested in it. There are also institutional fund managers and brokers calling us to say that they want to trade bitcoin futures,” 
In March, the CBOE had announced that it was reconsidering its approach of offering Bitcoin futures contracts.
ICE is Trying to Fill Gaps
A CNBC news report then suggested that said the CBOE’s decision to stop offering the product could possibly be due to a drop in demand in the retail market last year. This was when Bitcoin prices crashed to about US$13,000 from a peak of about US$20,000.
“In general, there is a lack of institutional infrastructure and platforms to trade [bitcoin] with. That is why we are trying to fill the gaps,”
said Ilkiw.
She then mentioned that this was primarily the reason why ICE, together with other investors, set up the Bakkt Trust Company LLC to offer institutional investors Bitcoin custody services and “physically delivered” Bitcoin Futures contracts
These are offered through a partnership between Bakkt, ICE Futures US. ICE Clear US.  The former provides futures and options trading whereas the latter handles confirmation, settlement, and delivery of transactions.  
She further added that Bakkt bitcoin futures contracts allow investors to trade one Bitcoin per contract. Also, users can trade up to 100,000 contracts. Bakkt offers investors two types of bitcoin futures contracts – daily and monthly futures contracts. The settlement date for its monthly contracts is on the third Wednesday of the month and the delivery of bitcoins takes two days. 
ICE Offers Adequate Protection Measures
Furthermore, Ilkiw suggested that ICE has sound protection measures in place as it has a large pool of investors and the amount of money involved in a single case of fraud could be huge. 
“The existing exchanges are relatively small and may only offer cryptocurrency futures contracts to retail investors. An investor may lose a lot of money trading with them, but the counterparties will still receive their money while the exchange continues to operate,” 
she added.
Future Prospects
When questioned on if major exchanges would adopt a ready approach before getting involved with Bitcoin, she said that ICE launched Bakkt to position itself for the future trends of digital assets, including other asset-backed and non-asset-backed cryptocurrencies.
Will Bitcoin Futures continue to create the same hype in the near future as well? Will we see more exchanges rolling out Futures products? Let us know, what you think in the comments below!
The post Institutional Interest in Bitcoin Futures On A High Says ICE Executive appeared first on Coingape.
Source: CoinGape

BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months

Saturday turned out to be the slowest day for crypto markets as total Bitcoin Futures volumes on the BitMEX platform was recorded to be a minor $948 Million. 
Are Bitcoin Futures Trading Low? 
Source- Skew Markets
While the leading derivatives exchange BitMEX only traded futures worth $948 Million, Binance Futures recorded a trading volume of 16k BTC in an hour. Also, recently the 24-hour trading volume of Binance’s futures markets was seen to have crossed 30,500 BTC.
Denominated in USDT, the equivalent of this would come to over $250 MM. Further, the figures were also said to have exceeded those of Binance spot trading which recorded a relatively lower 24-hour trading volume of 219,868,241 million denominated in USDT.
Source- Binance
On the 9th of October, the trading volume of Bitcoin (BTC) futures on the Intercontinental Exchange’s (ICE) Bakkt platform reportedly soared to 224 contracts on Oct. 9, recording an increase of 796%. However, the start of trading on Bakkt showed poor volumes – merely 72 BTC on the first day. Interestingly, the situation has turned for the better and seems to have picked up a relatively healthy pace.
Source- Bakkt Bot
The low trading volume noted on the BitMEX platform could be one of the several instances of a bad trading day and it might gradually pick up.
Furthermore, despite the decline in Bitcoin prices, customer interest in CME Bitcoin futures remained strong during Q3 with daily Open Interest (OI) of over 4.6K contracts, up 61% vs Q3 2018.
Source- Twitter
As the market continues to garner more opportunities for Bitcoin Futures, it is predicted that Bitcoin prices will gradually increase as futures contracts continue to have a healthy trade volume. 
Bitcoin Perpetual Funding Rates in Positive Territory
All Bitcoin perpetual funding Rates are currently in positive territory. A Perpetual Contract is a derivative product that is similar to the traditional Futures Contract.
Source- Skew Markets
The Funding Rate comprises two main parts the Interest Rate and the Premium / Discount. This rate aims to keep the traded price of the perpetual contract in line with the underlying reference price.  Thus,  the contract mimics how margin-trading markets work as buyers and sellers of the contract exchange interest payments periodically.
Will Bitcoin Futures continue to intrigue investors and traders in the long run? Let us know what you think in the comments below!
The post BitMEX’s Bitcoin Futures 24 hr Volume Drop Below $1 Bn, Records the Lowest in Months appeared first on Coingape.
Source: CoinGape

CFTC, FinCEN, and SEC Issue Warnings to Crypto Firms on Regulatory Compliance

The Chairman of CFTC and SEC, along with FinCEN director issue a joint statement to firms engaging in digital assets to follow their guidelines.
Emphasis was laid on obligations under the Bank Secrecy Act (BSA), anti-money laundering and countering terrorist funding through cryptocurrencies.

Digital assets firm has often avoided following specific rules riding on the ambiguity of the nature of the assets. The most common among them are bypassing registration as securities.
Nevertheless, the joint statement aims to keep no stone unturned. It explicitly defines the various financial instruments like derivatives, Money Services Businesses (MSB), mutual funds, etc., while directing the firms engaging with them to procure compliance soon.
The joint statement issued by the agencies states that the “financial institutions” must register with the specific agency. It is being done to counter the money laundering and terrorist funding via cryptocurrencies.
The firms must adhere to the Bank Secrecy Act (BSA) which promotes collaboration with the U.S. government in cases of suspected money laundering and fraud. The press release noted,
the AML/CFT activities of a futures commission merchant will be overseen by the CFTC, FinCEN, and the National Futures Association (NFA);
those of an MSB will be overseen by FinCEN;
those of a broker-dealer in securities will be overseen by the SEC, FinCEN and a self-regulatory organization, primarily the Financial Industry Regulatory Authority (FINRA)
Hence, the firms must clearly define their products and seek permission from these regulators. Therefore, a firm or asset sold by a firm meets the definition of “securities” under federal law must comply with federal securities law.
The firms engaging in finance are also “required to report suspicious activity and implement reasonably-designed AML Programs.”
The use of cryptocurrencies in illicit activities and cyber theft is not a surprising occurrence. Hence, the warnings issued by the Government agencies must be adhered to strictly by the firms to avoid security and economic threats to nations. The three regulators have also been considerably inclusive of activities around digital assets. However, their emphasis on the need for compliance was considerable.
What do you think about the warnings, and how will it affect the crypto markets? Please share your views with us. 
The post CFTC, FinCEN, and SEC Issue Warnings to Crypto Firms on Regulatory Compliance appeared first on Coingape.
Source: CoinGape

Bitcoin [BTC] Macro: Analysts See a Rising Wave of Investments among Millionaires

Gone are the days when Bitcoin used to trade only via cryptocurrency exchanges. In 2019, numerous institutional platforms started providing products and services on digital assets. The development was seen with Custody, Trust funds, trading portals, and derivates market.
Michael Novogratz, the founder of Galaxy Digital, recently reiterated his stand on the institutional interest. Earlier, he had expressed similar views saying they’re coming, but things take time. He stated that institutions tend to follow the funds like Yale, Harward, and Stanford endowments.
Willy Woo, an on-chain crypto analyst, supported the rising interest of high volume investors with credible data. The number of addresses with more than 1,000 Bitcoins has risen linearly since this time around last year.
Number of Bitcoin Addresses with more than 1000 BTC (Source)
Woo seemed to draw similarities between the geeks of Bitcoin’s early days and other high volume investors. He tweeted,
IMO we’re likely in a new renaissance of Bitcoin, this one is powered by capital influx of high net worth investors, while the early one was from the tech savvy who were bootstrapping the network.
Super Bullish.
Bitcoin’s Revised Value Proposition
Bitcoin’s proposition as a store of value is particularly attractive in the current macro-situation. The rising debt crisis and quantitative easing, devaluation of currencies, political tension in Hong-Kong, and even the threat from China’s digital currency. Novogratz said,
We’re in a very strange macro environment… When Greece is raising money at negative interest rates. I look back just in the last five years there 40 emerging market currencies that have devalued more than 40%.
Mati Greenspan has also spoken about Greece, a country which was at the brink of collapse 5 years ago is now raising money at negative interest rates. Greenspan said,
Watching economists on the television this morning try to pass this off as ‘normal’ and ‘sustainable’ is literally making me sick to my stomach.
Moreover, he also suggested that the US must be apprehensive of the Chinese digital currency and why it shouldn’t be totally dismissive of Libra. The Chinese and its counterparts already use Alipay and Wechat to conduct more than 90% of their transactions. A state-powered cryptocurrency could provide a lot of control and dominance to China.
According to him, the need of the hour is the growth of decentralized transactions, led by Bitcoin. He said,
Quite frankly when I look at change and Hong-kong, I see how its gonna end. It’s not gonna end with tanks rolling down the street. It’s gonna end with what they called white terror. That they’re slowly gonna say, you know, that guy doesn’t get credit anymore or that guy doesn’t get jobs anymore.
Do you see the need for decentralization as well? Please share your views with us. 
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Source: CoinGape