Crypto Use-Cases in Africa on the Rise, According to Luno

Crypto Use-Cases in Africa on the Rise, According to Luno

Twitter and Square CEO, Jack Dorsey recently said “Africa will define the future (especially the Bitcoin one!)” But was he right?

Crypto in Africa on the Rise

Earlier this year, Luno published The State of Crypto in Africa report in collaboration with Arcane Research. This was an attempt to understand where the future for crypto in Africa is headed. In this summary, we’ll highlight some of the key aspects of the research, including the catalysts for crypto adoption in Africa, obstacles to be overcome, and the latest trends.

Crypto in Africa

Despite being an incredibly diverse continent, African nations often share key similarities, ranging from socio-economic issues to a significant lack of infrastructure. The use of cryptocurrencies around the world has, to date, largely centred on investment, speculation and trading. This is not true of Africa, where applications for crypto and the scope of challenges it could help overcome vary far more.

This makes it a fertile breeding ground for crypto. As the report notes that “Africa is one of, if not the most promising region for the adoption of cryptocurrencies. This is due to its unique combination of economic and demographic trends. While the overall adoption is relatively low, the potential is enormous, the growth is rapid, and the development is likely to become defining for the cryptocurrency industry going forward.”

However, there’s currently a polarity to crypto adoption in Africa. On the one hand, researchers have identified high ownership rates in certain countries. Google Trend data indicates Uganda, Nigeria, South Africa, Kenya and Ghana all rank in the top 10 on the topic of cryptocurrency, which demonstrates the growing interest therein. South Africa actually ranked third-highest worldwide at 13% with Nigeria ranking 5th (11%) in a survey about crypto ownership. In terms of crypto infrastructure, though, it’s lagging behind. There’s still a distinct lack of nodes, mining operations and supporting merchants. Of the 10,267 Bitcoin nodes worldwide, just 20 (0.2%) are located in Africa. Furthermore, research from CoinShares indicates there’s almost no meaningful Bitcoin mining activity across Africa.

Crypto in Africa

Trading trends

Trading volumes across non-P2P (peer to peer) exchanges indicate there is generally less than $10 million in daily trading volume across African currency pairs. Luno contributes to the majority of this volume.

On the other hand, Africa accounts for a comparatively much larger share of the P2P trading market. Trading across Africa now accounts for more than 14% of LocalBitcoins’ and Paxful’s global weekly trading volumes, with activity focused in Nigeria, Kenya and South Africa. These volumes have seen a significant boost in 2020, surpassing $10 million in weekly volume across the two platforms.

Catalysts for adoption

Africa’s underdeveloped crypto infrastructure aside, there are a number of major catalysts that could be conducive to widespread adoption over the next decade. Many of these are unique to the African continent, showcasing a remarkable opportunity for projects that are able to leverage the potential.

Economic landscape: high inflation and financial instability

The majority of African nations suffer from high inflation rates – historically much higher than the global average. This drastically undermines purchasing power and the potential for wealth-gain. Bitcoin’s inherently disinflationary monetary model and decentralised governance therefore poses an attractive alternative.

In the same vein, many African countries suffer from depreciating and often volatile national currencies. For example, the South African Rand (ZAR) has lost over 50% of its value against the US Dollar, while also being one of the most volatile FX currencies.

Political instability and capital control

Most African nations suffer from vast political instability which exacerbates inflation and currency volatility. Data from the World Bank gives just nine of the 53 African nations with a positive score on the political instability index. Furthermore, 2019 registered the highest amount of civil conflicts since 1946. This type of vulnerability has an adverse knock-on effect on issues like forced migration, GDP collapse, and wealth confiscation.

Bitcoin and other cryptocurrencies are unique in that they combine the wealth preservation properties of hard assets, like gold and land, with the portability of digital currency, combined with an unparalleled degree of censorship resistance. These properties, in combination, make cryptocurrencies the ideal antidote to political chaos.

Financial infrastructure

The majority of Africa is underserved by traditional financial services. The number of commercial banks per 100,000 adults is 61% lower across Sub-Saharan Africa than the global average. As of 2018, 66% of those living in Sub-Saharan Africa had no access to a traditional bank account.

Inadequate banking services and limited access inhibit entrepreneurship, business growth, lending and saving. These all work to drastically undermine economic development. Cryptocurrencies and decentralised finance (DeFi) are poised to take on the challenge of providing individuals with a safe place to store and interact with their money.

Costly remittances and cross-border payments

Cryptocurrencies offer a much easier and often cheaper alternative to remittance payments. Remittances below $200 to Sub-Saharan countries cost an average of about 9% compared to the global average of 6.8%. These exorbitant costs are a combination of an inefficient uncompetitive banking market and a reliance on legacy financial communications systems, such as SWIFT.

Remittances are extremely important in Sub-Saharan Africa and make up a key component of economic income. It’s estimated that over 25 million people are expats from Sub-Saharan Africa as of 2017. This group remitted more than $48 billion in 2019.

Digital and mobile trends

Despite improvements to traditional finance infrastructure, more exponential growth would require significant investments. With almost 60% of the Sub-Saharan population living in rural areas, mobile and digital solutions are far more equipped to tackle issues to access. Unlike other regions, many African nations have leapfrogged traditional finance entirely, going straight to mobile banking. This trend is ideally suited to cryptocurrency adoption.

Mobile payments

M-Pesa’s success serves as one of the best examples of the growing dominance of mobile finance. Having debuted in 2007, it now has over 37 million active users, processing 11 billion transactions per year.

21% of Sub-Saharan Africans now use a mobile money service, with more users of mobile accounts than traditional bank accounts. A huge downside to mobile money services, though, is the hefty price tag with an average of 2% of a transaction’s total value. Crypto, on the other hand, offers far more competitive fees.

Unlike mobile money solutions, which are generally operable on basic devices, most cryptocurrency wallets only work on smartphones. Even though Sub-Saharan Africa lags behind the global average in terms of smartphone usage, the adoption rate is rapidly growing. While there were 250 million smartphone connections in 2017, accounting for 34% of total phone connections, this is projected to increase to 690 million in 2025, with smartphones accounting for 67% of phone connections

Obstacles to overcome

Along with the powerful catalysts expected to drive crypto adoption, there are a number of major challenges to be overcome. Some of the most prevalent are inadequate internet coverage, competition from mobile money services and hostility from governments.

Inadequate internet coverage

Unlike mobile money services, most cryptocurrency wallets require internet connectivity to send and receive transactions. Only 39.9% of the African population have some form of internet access, compared to 62.9% across the rest of the globe. Seven African countries have internet penetration rates below 10%. A UN report recently estimated that a staggering $100 billion of further investment over the next 10 years to increase coverage to a reasonable standard.

The lack of coverage can be attributed to a lack of infrastructure and resulting high costs. Sub-standard electricity supplies are additional contributing factors. Many African countries have dispersed populations, often with low average incomes, which means there’s less financial incentive for companies to invest in infrastructure development. This results in a vicious cycle of poor connectivity and economic underdevelopment. As a result, telecoms operators monopolise and collude on pricing, undermining African citizens. Across the continent, 1GB of data on average costs 7.12% of a person’s monthly salary, reaching as high as 20% in some nations.

Satellites as a solution

Over the past few years, the satellite industry has grown tremendously. Companies like SpaceX, Amazon, Viasat and OneWeb are building low-orbit satellite mega-constellations that aim to provide high-speed internet across the globe. These will be particularly handy in rural and remote regions.

Sending BTC without internet

There’s also an increasing focus on the transmission of crypto payments without internet connectivity. To date, Blockstream has been the pioneer in this area, creating a satellite network with global coverage that broadcasts the Bitcoin network for free.

Blockstream joined forces with another decentralised communications company, goTenna, which allows users to transmit transactions without internet via its mesh network. It’s expected that satellite internet could compete with more traditional methods in the coming years.

Poor electricity coverage

Beyond internet connectivity issues, poor electricity coverage presents another roadblock. A jaw-dropping 57% of the population across the Sub-Saharan region still lacks access to electricity.

Competition from mobile money providers

The success mobile money services have enjoyed in Africa is a double-edged sword to crypto adoption. Adoption may struggle in the face of such dominance due to the business moats and network effects that have developed. However, these services have made users more comfortable with and accustomed to digital and mobile payment solutions, which could pave the way for alternative and more cost-effective solutions like cryptocurrency wallets.

While mobile money services rely on a centralised business model to operate, extracting fees and revenue from customers, cryptocurrencies can compete with increased functionality minus the negligible costs.

Although Bitcoin and Ethereum blockchains may not be as competitive, other options like Ripple, Bitcoin Cash and Stellar can offer on-chain transactions for far less. Second-layer solutions like the Lightning Network also have the potential to offer almost-free transactions.

Mobile money solutions have an advantage in the breadth of services they offer (yield on deposits, insurance and loans) but developments in the DeFI space should allow crypto services some market share.

Resistance from regulators

The largest short-term hindrance for cryptocurrencies is unfavourable action from lawmakers and regulators. The legality of Bitcoin and other crypto varies significantly across Africa, with over 60% of African governments yet to clarify their position.

Crypto Use-Cases in Africa on the Rise, According to Luno

North African countries have taken the most hostile positions, with Alergia, Libya and Morocco having all issued bans against the use of cryptocurrencies. The most common position, though, is one of caution. Countries like Kenya, Ghana and Zambia have advised discretion without actively banning them.

Luno’s exchange

Luno appears to be the most popular centralised exchange platform with over 4 million customers. Launched in 2013, Luno has regional African hubs in Cape Town, Johannesburg and Lagos and processes approximately $4.5 million per day on average in 2020, mostly in the South African market. This is reflected in the overview of Luno’s fiat-to-crypto volume, where 75% of the trading volume has been in South African Rand (ZAR) so far this year.

Not only are the African countries dominating on Luno’s platform, a large portion of the users are also based in these countries (75%).

Looking to the future

By looking at cryptocurrencies not as an investment vehicle but as a global means of payment, it’s clear Africa is poised to embrace crypto as a solution to many of the persistent issues the continent faces. Most, if not all, obstacles to mass adoption can and will be overcome following investment in infrastructure and the creation of tangible applications that address issues unique to the African continent.

Education is an incredibly important aspect of the cryptocurrency space. If any new technology is to be adopted, users need to be empowered with the knowledge to make sound financial decisions for themselves. While the technological and economic benefits are there, without direct action and a firm grasp on the potentials, regulators and citizens alike won’t be equipped to adopt crypto in any meaningful way.


This is a sponsored post. Learn more on how to reach our audience here. Read dislaimer below.

The post Crypto Use-Cases in Africa on the Rise, According to Luno appeared first on Bitcoin News.

Source: Bitcoinnews.com

Bloomberg Analyst: Key Metrics Show Bitcoin Should Rocket Towards $12,000

Bitcoin price

It’s been a slow past few weeks for the Bitcoin market. The cryptocurrency has effectively been range-bound for two months, registering no concrete trend.
Despite this, blockchain analytics firms have observed an increase in usage of BTC. Santiment reported on July 2nd in reference to the chart below:
“Just two days after ETH recorded its highest network activity since 2018, the number of daily addresses interacting with BTC also surged to a 2-year high of 1.07M yesterday! The last time BTC’s daily address activity was this high was Jan. 17th, 2018.”
Chart from Santiment (@santimentfeed on Twitter) showing the number of daily active addresses on Bitcoin. 
That’s not all. As reported by Bitcoinist previously, an on-chain analyst observed that the number of new BTC addresses and the number of transactions also hit notable highs.
According to a Bloomberg analyst, this spike in on-chain Bitcoin usage warrants a higher BTC price.
Bitcoin Strengthening On-Chain Metrics Imply an Imminent Rally
On July 2nd, Bloomberg Intelligence’s Mike McGlone released the company’s latest crypto outlook. Entitled “A Resting Bitcoin Bull,” McGlone held his bullish sentiment that he has touted in these monthly reports since the start of 2020.
Core to his expectations of upside is the spike in the on-chain usage of Bitcoin.
Referencing similar data to that Santiment laid out, McGlone wrote:
“The number of active Bitcoin addresses used, a key signal of the 2018 price decline and 2019 recovery, suggests a value closer to $12,000, based on historical patterns. Reflecting greater adoption, the 30-day average of unique addresses from Coinmetrics has breached last year’s peak.”
The analyst added that the last time this metric exceeded its last high, Bitcoin rallied from the “depths of a bear market.”
As to where exactly this trend will take Bitcoin, McGlone implied a move towards $12,734 when he wrote:
“Unless advancing addresses abruptly reverse, history suggests Bitcoin may gravitate toward that level.”
Far From the Only Trend Signaling Upside
The strong on-chain usage of Bitcoin isn’t the only thing that has McGlone expecting cryptocurrencies to sustain a move to the upside.
The senior commodity analyst at Bloomberg identified the following confluence of trends as signals indicating BTC has room to grow:

From a macro perspective, BTC is still outperforming most of the “highly speculative crypto assets.”
The Bitcoin futures on the CME have continued to see adoption, confirming “Bitcoin’s maturation pace and higher-price tilt.”
Grayscale’s Bitcoin Trust has seen extremely strong demand from retail investors and institutions.
BTC has continued to trade more like gold, suggesting a maturing market and the cryptocurrency being influenced by macro factors.
And finally, the “unparalleled global central-bank easing and the rising price of gold” is likely to act as a boon for Bitcoin to move higher.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Bloomberg Analyst: Key Metrics Show Bitcoin Should Trade At $12,000

Source: Bitcoininst

Russian Court: Bitcoin Theft Not a Crime

Russian Court: Bitcoin Theft Not a Crime

A Russian district court has dismissed bitcoin theft as a crime since cryptocurrency is not regulated in Russia and there is no legal status for bitcoin. The accused were found guilty, sentenced to prison, and ordered to return only the fiat money stolen — not cryptocurrencies.

St. Petersburg’s Petrogradsky District Court has announced the verdict in a theft case involving bitcoin filed in December, the joint press service of the judicial system of St. Petersburg announced on Tuesday.

The two accused, Peter Piron and Yevgeny Prigozhin, disguised as officers of the Federal Security Service of the Russian Federation (FSB) in 2018, forced the plaintiff to transfer cash and cryptocurrencies to them. Under the threat of torture, the cryptocurrency owner transferred five million rubles and cryptocurrencies, including 99.7035 bitcoins. The BTC was worth more than 48 million rubles ($680,640) based on the exchange rate on June 3, 2018, the court announcement details. Currently, this amount of BTC is worth about $908,024. The other cryptocurrencies amounted to approximately 7 million rubles, bringing the total loss suffered by the plaintiff to more than 60 million rubles.

The victim sought the return of all properties stolen. The court admitted that cryptocurrencies were transferred to the accused under threat. However, citing information from the central bank, the Bank of Russia, and the criminal code, the court concluded:

Cryptocurrency [theft] is not a crime against property. Due to the lack of legal status, it is not possible to recognize it as an object of civil law.

“This type of virtual money does not fall into any category and is not a recognized means of payment in the territory of the Russian Federation. The legislator has assigned it to surrogates of funds,” the court added.

Prigozhin was sentenced to eight years and Prion 10 years in a maximum-security prison. They have also been ordered to return the five million rubles, but the cryptocurrencies worth 55 million rubles at the time of the theft were excluded from the verdict.

Russia still has no cryptocurrency regulation even though a bill on digital financial assets was submitted to the State Duma back in March 2018. Recently, a bill was proposed to outlaw cryptocurrencies with a jail term, but several ministries do not support this bill.

What do you think about this Russian court’s decision regarding crypto? Let us know in the comments section below.

The post Russian Court: Bitcoin Theft Not a Crime appeared first on Bitcoin News.

Source: Bitcoinnews.com

DEX Volume Eclipses $5 Billion in First Half of 2020, 400% Up From Last Year

The trading volume of decentralized exchanges (DEX) has gone past the $5 billion milestone in the first six months of 2020, which is a significant increase from the 2019 performance.

June 2020 Sets DEX Trading Volume ATH

In a tweet on Wednesday, Dune Analytics informed that the DEX trading volume for the first half of 2020 totaled about $5.1B. This figure represents a five-fold increase from the same period in 2019, providing further evidence of the significant growth of DEX platforms.

Also, statistics reveal that tokens of decentralized exchanges have a greater return on investment (ROI) compared to their centralized counterparts. At the time of writing, the Kyber Network (KNC) token is up by over 650% since the start of 2020. 

KNC is currently the best performer, with its token price surging more than 18% over the last 24-hour trading period. The token is at its highest price level in two years. 

Other DEX tokens such as Loopring (LRC), AirSwap (AST), IDEX (IDEX), Bancor (BNT), and 0x (ZRX) also have impressive year-to-date (YTD) performances. Meanwhile, centralized tokens (CEX) like Houbi and Bitfinex (LEO) are struggling to regain their footing after the Black Thursday price crash. 

DeFi Dominating Crypto Discourse in 2020

The massive growth in DEX trading volume is only part of the decentralized finance (DeFi) ‘s domination of the crypto headlines in 2020. According to data from Defipulse, the total value locked in USD on the Ethereum-based DeFi market is more than $1.7B.

As reported by CryptoPotato in June 2020, COMP, the governance token for the decentralized lending platform, surged over 100%, with the platform crossing the $400 million mark in total value locked. A few days later, Compound overtook MakerDAO to become the number one platform by total value locked (TVL).

While Compound was still making waves, Balancer entered the fray as liquidity mining mania reached a fever pitch. The decentralized exchange launched its BAL governance tokens with its price soaring afterward. According to DeFi Pulse, Balancer is currently number four on the list with TVL at $135 million. 

Amid the growing prominence of the DeFi market in the aggregated crypto collective, CMC created a dedicated DeFi section. CMC’s top four rankings on the DeFi section are different from the log provided by DeFiMarketCap, with Kyber Network and Ox being third and fourth on the former’s reckoning. 

The DeFi explosion has not been without a few mishaps with rogue actors taking advantage of bugs to drain protocols of substantial sums. CryptoPotato reported that Balancer lost $500,000 worth of tokens after a hacker exploited a vulnerability in two of the exchange’s pools.

The post DEX Volume Eclipses $5 Billion in First Half of 2020, 400% Up From Last Year appeared first on CryptoPotato.

Source: Crypto Potato

Cardano (ADA) Is Forming the Signal That Preceded a 75% Crash: Analyst

ethereum

Despite Bitcoin’s stagnation, Cardano (ADA) has performed extremely well over recent weeks.
Data from crypto research firm Messari shows that the leading altcoin is up 150% since the start of the year. This is a much better performance than almost all top-50 cryptocurrencies, save for a few outliers in the DeFi space.
Cardano vs. other smart contract cryptocurrencies since the start of 2020. Chart from Messari
A full-time trader, however, thinks that ADA’s outperformance won’t last for long. He shared a chart indicating that the cryptocurrency has formed the same bearish signal last seen at Cardano’s 2019 peak.
Cardano’s Bullish Trend May Not Last For Long: Trader
A trader shared the image below on July 1st, noting that Cardano’s performance charted against Bitcoin is forming a bearish divergence. The analyst’s indicator is trending lower while prices trends higher, suggesting underlying weakness:
“The reason I’m building the ADA short here. If we invalidate the divergence I’m happy to step out the way. Until then I’ll continue to slowly build this position until the div confirms, at that point I can ramp up,” he commented on the chart.
The divergence that has formed is especially pertinent as it formed prior to ADA falling ~75% against Bitcoin from Q2 2019 to Q4 2019.
Cardano (ADA) analysis by full-time trader Cold Blooded Shiller (@ColdBloodShill on Twitter). Chart from TradingView.com
Buy the Rumor, Sell the News?
ADA’s extreme outperformance over recent weeks has largely been tied to the asset’s underlying fundamentals.
As of the time of this article’s writing, the underlying Cardano blockchain is going through what is known as its “Shelly” upgrade.
Shelly is a phase of the blockchain’s development that will increase its performance while optimizing for decentralization. This will be done through a Proof of Stake system. As the Cardano Foundation explains:
“Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption… Come the end of the Shelley era, we expect Cardano to be 50-100 times more decentralized than other large blockchain networks.”
With ADA rallying off that implementation, the cryptocurrency could see a “sell the news” drop afterward. This is similar to what happened with Bakkt and Bitcoin in 2019 and the CME/CBOE futures rally in 2017.
Cardano’s Fate is Tied to Bitcoin
In some senses, the fate of ADA’s price trajectory is tied to that of Bitcoin. After all, Coin Metrics data shows that the two cryptocurrencies have a positive 180-day correlation of 0.84.
Fortunately for Cardano bulls, analysts are once again becoming optimistic about BTC.
As reported by Bitcoinist, Glassnode CTO Rafael Schultze Kraft observed that Bitcoin’s on-chain trends are stronger than they have been in months. He observed that the number of hourly new BTC addresses reached a two-year high while the hourly count of transactions reached a 10-month high.
There’s also the simple fact that more than 62% of all BTC hasn’t moved in a year. 
“Bitcoin 1yr HODL new ATH!! We have reached a new all-time high, with 62% of bitcoin not moving on-chain for at least 1 year. Strong hands from hodl’ers! Such high levels of HODL’ing have been present at the start of previous Bitcoin bull runs,” on-chain analyst Philip Swift recently wrote in regards to the image below.
Bitcoin 1 year+ HODL Wave indicator from on-chain analyst Philip Swift (@PositiveCrypto on Twitter)
Featured Image from Shutterstock
Price tags: adausd, adabtc
Charts from TradingView.com
Cardano (ADA) Is Forming the Signal That Preceded a 75% Bear Market: Analyst

Source: Bitcoininst

Bitcoin Price Falls But at $107 Billion, Realized Cap Hits New ATH

Bitcoin broke past its stagnant price trend dropping to sub-$9000 levels a few hours ago. But all is well as a V-shaped recovery quickly followed the fall, and Bitcoin’s realized cap hit a record of $107 billion today.

BTC’s Realized Cap Clocks New High, Tops $107 Billion

As per data from Glassnode alerts, the company’s Twitter account for on-chain crypto alerts, Bitcoin’s realized cap hit an all-time high of $107 billion.

btc_realized_cap
Bitcoin Realized Market Cap Hits $107 Billion, Source: Glassnode alerts

This comes two weeks after the metric registered its earlier high on June 19.

Bitcoin Realized Cap (1d MA) just reached an ATH of $107,264,291,327.14.

Previous ATH of $107,263,226,837.97 was observed earlier today. – Reads the statement.

Unlike Bitcoin’s market cap seen on crypto ranking sites, the realized cap differs in perception as well as calculation.

Market cap is calculated by multiplying the current circulating supply by the latest market price. It does not rule out lost or unretrievable coins. The realized cap does that.

As per Glassnode, “realized cap values different part of the supplies at different prices (instead of using the current daily close). Specifically, it is computed by valuing each UTXO by the price when it was last moved.”

What Appreciating Realized Cap Actually Means?

Bitcoin’s realized cap achieving new highs on the same day when price registers a near $300 drop can mean only one thing. Investors are bullish and have a firm conviction in BTC’s long term growth.

Consummate cypherpunk, and one of Satoshi’s associates, Nick Szabo, said this when the realized cap metric touched the $100 billion mark last year in August:

The long-term chart reflects the superior deep safety, global seamlessness, and monetary soundness of Bitcoin.

Other On-Chain Metrics Show Bitcoin’s ‘Fundamentally Strong’

As reported by CryptoPotato, Bitcoin’s on-chain activities pertaining to transaction counts, new addresses, active addresses, and spent outputs reached new highs on July 1.

Glassnode CTO, Rafael Schultze-Kraft, pointed out four BTC statistics in a tweet. All these metrics charted new highs.

Also, according to the latest update by the on-chain analysis firm, the number of Bitcoin addresses holding more than 0.1 BTC touched an ATH of 3,092,315.

Amidst all the institutional investment frenzy, this shows that retail investors are not staying behind.

Such impressive growth in on-chain metrics corroborates the aforementioned affirmation of investor trust in Bitcoin. Strong demand is paving the way for strong fundamentals.

The post Bitcoin Price Falls But at $107 Billion, Realized Cap Hits New ATH appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin Flashes Same “Consolidation” Fractal That Sent Its Price to $20K

bitcoin, btcusd, cryptocurrency, xbtusd, btcusdt

Bitcoin price is trending inside a lengthy consolidation pattern after rallying by up to 170 percent in the second quarter.
As calls for a breakdown move grow, independent market analysis firm TradingShot has released a bullish outlook for the cryptocurrency.
It expects the BTC/USD exchange rate to break bullish, citing two eerily similar fractals that resulted in explosive price rallies.

Bitcoin may have enough fuel left to resume its much-awaited bull run even as it trades inside an overstretched consolidation range. So sees an independent market analysis portal.
TradingShot said on in its Thursday analysis that the BTC/USD exchange rate could head higher in the coming sessions. The portal reached an optimistic conclusion after pitting the pair’s ongoing weekly trend behavior with the ones logged during the 2011-2013 and 2014-2017 bull cycles.
Triangle Consolidation, Golden Cross
A chart published by TradingShot’s analysts highlighted near-perfect similarities between the current and old price trends. The most accurate among them was Bitcoin’s tendency to consolidate near a 0.5 Fibonacci line and to undergo a bullish breakout after a crossover between its 100 and 200-weekly moving averages.
For instance, the end of ‘Cycle 1’ in the chart follows Bitcoin’s test of its 100-WMA (black wave) as support. The price later consolidates until the Fib 2 time extension level (the orange vertical line). Meanwhile, the consolidation pattern appears to make a Triangle with a support level near the 0.5 Fib line holding the bullish bias.
Old Bitcoin fractals hint a breakout session ahead for the cryptocurrency. Source: TradingView.com, TradingShot
Then by the time the 100-WMA crosses above the 200-WMA, Bitcoin breaks to the upside and undergoes a parabolic bull run towards its all-time high near $20,000.
The ‘Cycle 2’, meanwhile, sees Bitcoin crashing towards $3,200 in December 2018. The price again reaches the 100-WMA. It consolidates above the 0.5 Fib line until the COVID-induced sell-off of March 2020 sends it back below the support. Nevertheless,  Bitcoin retains the level as its support all over again.
“We are currently on the way to reach the Fib 2 time extension level (orange vertical again),” wrote TradingShot. “[It is] where the price consolidated during the previous cycle.”
The portal noted a similar Triangle formation as Bitcoin consolidated sideways, further indicating the cryptocurrency’s 100- and 200-WMAs attempting to crossover. It added:
“Does this mean we are still going through a lengthy (Triangle) consolidation around the 0.5 Fibonacci retracement level that will start breaking upwards? Very possible based on that model.”
Don’t Expect an 8,000% Bitcoin Rally
TradingShot’s analysts reminded that traders should not expect an explosive rally out of the next breakout.
There will be diminishing returns, they confirmed, adding that lengthening cycles tend to become less volatile over the years.

Source: Bitcoininst

No, I’m Not Building Anything on Ethereum: Elon Musk Denies Rumors

A year after the famous Hollywood actor William Shatner tweeted that Elon Musk and Vitalik Buterin were deciding what to build on Ethereum, the Tesla CEO refuted the rumor but said that he had nothing against the network.

Musk: Not Building On Ethereum

The Canadian actor, arguably most well-known for his role as Captain Kirk on Star Trek, has been quite favorable towards blockchain and cryptocurrencies in the past.

William Shatner (and his role as Captain Kirk). Source: Daily Mail
William Shatner (and his role as Captain Kirk). Source: Daily Mail

Aside from releasing his own non-fungible token (NFT) collection, he also tweeted over a year ago that “my friends Vitalik Buterin & Elon Musk were trying to decide what to build on Ethereum. I’ve been waiting and waiting.”

It may have taken Musk over a year to address these rumors, but yesterday he finally replied:

Thus, the CEO of two of the most popular companies, SpaceX and Tesla, denied any previous assumptions that he’s trying to utilize the Ethereum blockchain for future projects. He also said that he’s not “for or against it.”

Shatner later commented on the lateness of Musk’s response by saying, “that reply only took a year. I still love you even though you haven’t found blockchain technology fascinating!”

Elon Musk And The Cryptocurrency Space

The eccentric billionaire, who recently vowed to sell “almost all physical possessions,” has a somewhat intriguing history with the cryptocurrency field, particularly with Bitcoin.

One of the bizarre remarks he made earlier this year was in a tweet, saying that “Bitcoin is not my safe word.” While this statement remains unexplained until this day, the entrepreneur appeared in a podcast shortly after and offered more thorough views on the primary cryptocurrency.

Despite initially claiming that “I’m neither here nor there on Bitcoin,” he noted that when he first read the whitepaper, he thought it was “very clever.” Nevertheless, he didn’t see Bitcoin or any other cryptocurrency to serve as replacements for cash anytime soon but acknowledged that they will have a role during this digitalization phase.

Musk also revealed how much BTC he holds only recently when he commented on a post from the Harry Potter author – J.K. Rowling. While explaining that “massive currency issuance by govt central banks is making Bitcoin Internet (ghost) money solid by comparison,” the Tesla CEO said that “I still only own 0.25 bitcoins.”

Featured image courtesy of Barrons

The post No, I’m Not Building Anything on Ethereum: Elon Musk Denies Rumors appeared first on CryptoPotato.

Source: Crypto Potato

Binance Coin Price Analysis: BNB Follows Bitcoin’s Downturn Despite 7-Days Recovery, Charts 3% Daily Loss

  • Binance Coin lost 3% over the past hours following a quick drop in Bitcoin’s price.
  • The price continues to face rejection at a crucial resistance line after seven days of recovery.
  • After the breakout, BNB consolidated and dropped back inside a demand zone of 0.0165 BTC

BNB/USD: BNB Rejects At Resistance Line

Key Resistance Levels: $16, $16.7, $18

Key Support Levels: $15, $14.7, $13.6

bnbusd_chart
BNB/USD. Source: TradingView

Binance Coin decreased by 2.80% overnight following yesterday’s drop in Bitcoin’s price, although the pressure is a bit calm at the time of writing. It is now changing hands around $15.34 after the rejection around the yellow resistance ($16) line forming since June.

Looking at the market structure, BNB is technically bearish on the current 4-hours chart, but it is still trading within a bullish zone on the daily chart. Once the price drops below $14, intense bearish action would be considered.

But if the price manages to climb back above the falling resistance line – marked yellow – the mid-term bullishness is likely to resume. As it stands now, the bears are gaining control over a short-term perspective.

Binance Price Analysis

Even though the price climbed above this resistance line, Binance Coin would still need to push above the previous rejection level of $16 before confirming a further move to $16.7. The resistances above this level lies at $18 and $19.1 – the current yearly high.

After recovering from the grey-marked demand – $15, the BNB/USD pair paused bearish actions around $15.3 as it decides on the next significant move. The bears are slowly stepping back into the market. Meanwhile, it is currently relying on the support at $14.7. A break below this target could trigger a massive sell to around $13.6.

BNB/BTC: BNB Fakes-Out Reversal

Key Resistance Levels: 0.00173 BTC, 0.001754 BTC, 0.00178 BTC

Key Support Levels: 0.001666 BTC, 0.0015 BTC, 0.0014 BTC

bnbbtc_chart
BNB/BTC. Source: TradingView

Binance coin is looking bearish on the 4-hours time frame, but the recent surge (fake out) above the white resistance line seems to have trapped a lot of buyers due to the latest losses in the entire crypto space.

However, the 9th largest cryptocurrency by market cap is trading around a demand area of 0.00169 BTC, and at the same time approaching weekly support established at around 0.00166 BTC. This support is likely to break if sellers continue to mount pressure.

On the other hand, a bullish action can be expected if the price recovers, especially above the grey horizontal lines, which is likely to set a reversal on the 4-hours chart. Inversely, the price would need to drop below the mentioned 0.00166 BTC support before a strong sell can be confirmed.

Binance Coin Price Analysis

The current price setup reveals that the sellers are showing interest again. But if the grey demand area can suppress selling actions, to form a W pattern, a new increase could send price straight to 0.0018 BTC in the coming days, after surpassing the 0.00173 BTC, 0.001744 BTC and 0.0001754 BTC levels simultaneously.

However, if the price slips below the 0.00166 BTC level, 0.0015 BTC and 0.0014 BTC are likely to hold as new support for the market. Binance Coin is currently subdued with choppy price actions, although it appeared that bulls are plotting a significant move against Bitcoin.

The post Binance Coin Price Analysis: BNB Follows Bitcoin’s Downturn Despite 7-Days Recovery, Charts 3% Daily Loss appeared first on CryptoPotato.

Source: Crypto Potato

Bitcoin Dips Below $9,000 as Altcoins Bleed Out: Friday’s Price Watch

After failing to reclaim the $9,300 mark yesterday, Bitcoin’s price went on a negative spiral down to $8,950 on some exchanges.

As it typically happens, most alternative coins followed the adverse move and have charted losses in the past 24 hours.

Bitcoin Dips Below $9k

As reported yesterday, the primary cryptocurrency made an indecisive attempt to reconquer the $9,300 level. Although it failed, the asset managed to hover around $9,200.

In just a few hourly candles, however, BTC went on a sharp move downwards and lost $300. Thus, Bitcoin registered its daily bottom at below $8,950 on Bitstamp.

BTCUSD 1m. Source: TradingView
BTCUSD 1m. Source: TradingView

Quickly after dipping below the psychological level of $9,000, Bitcoin recovered. Its price increased to about $9,100 – a level sustained at the time of this writing as well.

From a technical perspective, Bitcoin is currently situated between two significant support and resistance levels. The strong resistance at $9,260 that it tested prior to the sharp decline is the 50-EMA. The $8,950 mark to which BTC plunged yesterday, on the other hand, is the 500-EMA support level.

It’s also worth noting that while Bitcoin lost some of its value yesterday, it also decoupled from most stock market indexes. Contrary to BTC, the Dow Jones, Nasdaq, and the S&P 500 firstly charted increases of between 1-2% before retracing to the opening levels.

Altcoins Follow

Most large-cap altcoins generally follow their leader, and something similar has occurred during the past 24 hours. The second-largest cryptocurrency by market cap, Ethereum, lost about 3.5% of its value at one point by plunging from $231 to $223 in a matter of hours. It has recovered to $227 since then, but it’s still in the red.

Ripple (XRP) also went down from $0.177 to $0.172. Out of the first 15 coins by market cap, Binance Coin (BNB), and Tezos (XTZ) registered the most substantial price decreases. In the past 24 hours, BNB went down by 2.5% in total to $15.40, while XTZ lost 2% of its value and is now trading at $2.32.

Cryptocurrency Market. Source: Coin360.com
Cryptocurrency Market. Source: Coin360.com

Nevertheless, there are some exceptions in the altcoin market charting green. LINK, for instance, is up by 1.5% to $4,83 after receiving positive news from the popular cryptocurrency exchange Huobi that it will integrate its price data with Chainlink’s ecosystem.

From the top 25 digital assets, the one that stands out the most is VeChain. VET is up by 7.5% and has risen above the psychological level of $0.01.

The post Bitcoin Dips Below $9,000 as Altcoins Bleed Out: Friday’s Price Watch appeared first on CryptoPotato.

Source: Crypto Potato