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Bitcoin Price Analysis: BTC Is Locked Inside a Bearish Descending Channel, $7000 Next Target?

Our previous price analysis had identified a tight range in which Bitcoin is trading inside. Over the past hours, this range is seemingly cracking down, to the downside.

For the past five days, Bitcoin was trading between $7300 to $7600. Despite a fake-out that reached the mentioned resistance area of $7700, Bitcoin was trading inside a descending channel, which can be seen on the following 4-hour chart.

Adding negative indication coming on behalf of the Relative Strength Index (the RSI), as of now, it looks like Bitcoin would like to retest the $7000 area once again.

Total Market Cap: $198 billion

Bitcoin Market Cap: $132.3 billion

BTC Dominance Index: 66.8%

*Data by CoinGecko

Key Levels to Watch

– Support/Resistance: As of writing this, Bitcoin had recently marked $7250 as the current daily low. Further below lies $7150 support (weak), $7100, and $7000 support. The last includes a critical ascending trend-line (marked on the daily chart), which started forming since April 2019.

Further down is the $6800 horizontal support, before the $6500 area, which is Bitcoin’s 6-month low.

In the case of a correction, the first resistance is the 4-hour marked descending channel. A little above lies the $7400 resistance, along with the mid-term descending trend-line. Further above lies the $7700 – $7800 horizontal resistance.

– The RSI Indicator: In our previous analysis, we had identified the 45 RSI level as a crucial resistance. Unfortunate to the Bulls, Bitcoin failed in breaching it, and over the past two days, the RSI is declining and losing momentum, in correlation with the price.

– Trading volume: Following low-volume days, Bitcoin finally has seen some price action. However, this is far from reaching near the top volume days of the past month.

BTC/USD BitStamp 4-Hour Chart

btc_dec10_4h-min

BTC/USD BitStamp 1-Day Chart

btc_dec10_d-min

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Source: Crypto Potato

Deloitte Survey: 83% Of Executives See Compelling Use Cases For Blockchain

Big four multinational professional services company, Deloitte, has conducted a 2019 survey regarding what executives from big organizations think of blockchain. The data shows that interest in blockchain-based technology is generally increasing.

83% Of Executives Believe In Blockchain

Deloitte published its annual survey showing what executives think about blockchain and its potential. It was conducted across 1,386 senior executives in large corporations from a dozen countries (The U.S., U.K., UAE, Switzerland, Singapore, Luxembourg, Israel, Hong Kong, Germany, China, Canada, and Brazil.)

83% of all participants have responded that they see compelling use cases for blockchain, which is actually a 9% increase from last year. A similar gain is noted among the executives who believe that if they don’t adopt blockchain technology, they will lose a competitive advantage – from 68% in 2018 to 77% this year.

Blockchain Usage. Survey by Deloitte.

Among all those executives, 53% have responded that blockchain technology has already become a critical priority for their respective organizations this year. This actually represents a 10% increase from last year.

Another essential part of the survey came when the executives were asked about their opinion regarding blockchain’s security and potential threats. This topic records a serious improvement, as well. For instance, 39% said that they think blockchain has regulatory issues, while this year, the percentage has dropped to 30. Moreover, in 2018, 35% believed that the technology could have potential security threats, and it drops to 29% this year.

However, it’s also worth noting that not everyone appeared to be fully on board. Only 23% have responded that their organizations have already begun applying blockchain in their regular activities, while last year, the percentage was at 34.

Further Takeaways From The Survey

The survey went into other directions as well, comparing this year’s results with what executives have responded last year.

For example, it also shows blockchain’s usage among different business fields. Fintech is still the leader, but other sectors are noting increased usage as well; technology, media, telecommunications, health care, and even governments.

Furthermore, this year’s survey reveals that more organizations are willing to invest $5 million or more in new blockchain endeavors within the next 12 months.

Overall, Deloitte’s survey concludes that blockchain is providing more diverse advantages, increased diversification of potential use cases, thus resulting in its rising maturity.

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Source: Crypto Potato

MATIC Crashes 70% Overnight Following Panic Selling According to CZ

One of the more popular projects that had their Initial Exchange Offering (IEO) on Binance Launchpad, MATIC, went through a sudden overnight drop. The token lost upwards of 70% of its value in a violent red candle. Rumors started to circle around the community that the CEO of the project is behind it, but Changpeng Zhao was quick to dismiss it, denying internal involvement and saying that it was panic selling that caused the plunge.

MATIC Drops 70% In A Day

Matic was among the first projects to have their Initial Exchange Offering (IEO) on Binance Launchpad. It generated serious returns for those who had the chance to participate.

Over the past couple of weeks, MATIC has been on a serious uptrend, gaining more than 75% against BTC. However, almost all of that came to a swift end in the past 24 hours, as the token suddenly dropped, losing more than 70% of its value.

MATICBTC
MATIC/BTC. Source: TradingView

As it can be seen in the above chart, MATIC plunged from about 0.00000567BTC to 0.00000153BTC. Even though it has been recovering ever since the cryptocurrency is still down about 50%. The situation is almost the same when trading against USDT, as MATIC is down 54% at the time of this writing.

What Caused The Sudden Plunge?

Needless to say, sudden moves of the kind are almost always unexpected, especially given the token’s positive performance over the past couple of weeks.

The community was quick to react and start seeking possible causes. Rumors started to manifest, claiming that the Matic Network Foundation transferred about 15% of the total supply, worth more than $67 million at that time, to Binance for liquidation. Sundeep Nailwal, the COO and Co-Founder of the project, was the one who took the blame.

However, the high-ranked company official was quick to dismiss the blame, saying that his team is not behind it and that “some FUD accounts are trying to insinuate.” He also shared they will be publishing a detailed analysis, vowing that the project will “come out stronger than ever.”

Supporting Nailwal was the CEO of Binance, Changpeng Zhao. He said that it’s clear that the MATIC team hasn’t do anything to do with the drop, which was evidently caused by panic selling of big traders.

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AVALO-Energy: Friendly Use Of Renewable Energy And Blockchain Technology

[Featured]

Talks of climate and environmental change have been escalating throughout the past couple of years. Countries all around the world are taking measures to increase the usage of renewable energy sources.

AVALO-Energy is a project which aims to combine future-oriented blockchain technology with smart, as well as environmentally-friendly usage of renewable energy. It focuses on the price reduction of the energy which is generated by natural resources and stimulating their usage compared to conventional fuels such as coal, gas, or nuclear power plants.

AVALO-Energy: A Responsible Future

AVALO-Energy brings forward a concept for introducing future-oriented blockchain technology aiming to increase the smart and environmentally-friendly usage of renewable energy.

The main idea is to bring the cost of production down to the already low price levels of energy generated through conventional fuels, including coal, gas, and nuclear power plants.

The Initial Coin Offering (ICO), is intended to finance the project. The AVALO token, which will be issued in the process, will be implemented as a payment method used on certified energy platforms. This will supposedly lead to a cost reduction in the range of 15-20% as opposed to using fiat currencies such as the Euro or the US Dollar.

Decentralized Electrical Network

The whitepaper of AVALO-energy describes the tremendous demand for electricity across powerful economies such as the US, Europe, and China. One of the things that this leads to is the lack of foreclosure of potential competitors while, at the same time, establishing partnerships without intermediaries.

By opening its decentralized platform for partners, AVALO will be earning transaction fees for all of the transactions, even if AVALO doesn’t supply the customer. On another note, the network will bring all the benefits stemming from blockchain integration, including transparency, immutability, accessibility, and whatnot.

The team plans to develop an electricity marketplace where users will be able to buy and sell their excessive electricity. Additionally, the secondary electricity market is going to operate with AVALO Coins, which should empower users to purchase or to sell their electricity that’s generated with renewable energy.

Avalo Network

One of the main perks is that consumers won’t have to rely on centralized networks, which have proven many times that they can fail during pivotal moments.

The AVALO Box

The AVALO Box is a solution that allows every crowd member, as well as every customer, to participate in the decentralized network of AVALO-Energy throughout the entire world. Primarily, it serves as a node in the network, similar to other blockchains. This is what secures the decentralized inventory of the platform.

The transactions are stored decentrally, and they can be confirmed through the box. Besides, the AVALO Box could also be expanded with different applications that store their collected data in the blockchain in a manner that’s encrypted, anonymous, and decentralized.

Its features include:

  • POS module for processing payments
  • Mining of coins
  • Coin wallet
  • Network node
  • Smart Metering APIs

The AVALO Box allows its users to monetize by confirming transactions of invoices, credits, or customer-to-customer transfers. The coins for this will be automatically credited in the integrated wallet.

About The AVALO Token

The AVALO token is intended for peer-to-peer payments between energy supply platforms and consumers. All of the general costs of the existing fiat currency systems are eliminated.

In other words, the payments in the network will be simplified, while the transaction fees and processing times will be gravely reduced.

These savings can be passed on to the end-user, which will ultimately reduce the overall cost of green energy coming from renewable resources such as wind, solar energy, hydropower, and so forth.

According to the whitepaper, the team is already in negotiations with international energy platforms that source their electricity from certain renewable energy producers and have demonstrated their positive attitude towards the project.

Conclusion

It’s only natural for renewable energy sources to grow in popularity as the debate concerning climate change rages on.

AVALO-Energy introduces a modern approach, a decentralized network that handles a lot of the issues that existing systems face. Moreover, it also delivers a reward mechanism which benefits the users directly, while also reducing the overall cost of the energy.

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Source: Crypto Potato

Ukraine Set To Legalize Cryptocurrencies As Means Of Payment And Investment

Good news came from Eastern Europe as the legislative arm of Ukraine, the Verkhovna Rada, has adopted an amended draft law that seeks to introduce cryptocurrencies as a legal means of payment and investment within the country, according to a Monday report

This development is an effort to work in accordance with the Financial Action Task Force (FATF) global standard for cryptocurrencies, which requires participating countries to provide guidelines for their individual crypto space. 

The original bill, which focused on the “prevention the legalization of proceeds from crime and the financing of terrorism and weapons of mass destruction proliferation,” was amended to include digital assets after its first reading. 

The amended draft described virtual assets as both property and a digital representation of value, which can be transferred, traded, or used as a medium of exchange for goods and services or investments. 

Not Without Caution

While Ukraine has welcomed cryptocurrencies with open arms, the country did not throw caution to the wind. Following the guidelines of the FATF, Ukraine also prepared an Anti-Money Laundering (AML) policy to oversee the operations in the cryptocurrency sector in the country. 

The Ministry of Digital Transformation will be responsible for regulating the circulation of cryptocurrencies within the country while ensuring that every participant in the crypto sector of Ukraine is fully compliant with the AML regulations. 

Crypto transactions will be monitored at different levels, depending on the amount involved in them. For example, as per the guidelines, sending below 30,000 hryvnias ($1,300) per transaction will require only the sender to submit their public key to the government for financial monitoring while transactions above that amount would require both the sender and recipient to verify their Identify as well as their business relationship. 

Just One More Step

Although the bill has passed its second reading, it still has to be adopted officially by the Verkhovna Rada and currently “being prepared for signing.” Once the President of the country signs the bill, it will be enacted into law. 

Meanwhile, Valdis Dombrovskis, former president of Latvia and nominee for the next Finance Commissioner of the European Union (EU), said last month that he would propose a unified cryptocurrency regulatory framework to regulate cryptocurrency activities among EU members. 

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Source: Crypto Potato

Ripple Price Analysis: XRP Goes Back Up To $0.23, Can Christmas Come Earlier?

Summary

  • XRP has seen an increase of 4.25% this week as it reaches $0.23.
  • The cryptocurrency broke above a steep descending channel that was apparent in November.
  • It continues to remain above the strong 3000 SAT support against BTC.

Key Support & Resistance Levels

XRP/USD

Support:  $0.2150, $0.20, $0.1850 

Resistance: $0.2345, $0.2520, $0.27

XRP/BTC:

Support: 3000 SAT, 2900 SAT, 22853 SAT

Resistance: 3200 SAT, 3325 SAT, 3500 SAT

XRP/USD: A Break Above The Descending Price Channel 

xrpusd-dec9

The daily chart shows XRP bouncing from the strong support at $0.2150 toward the start of December. The cryptocurrency had been trapped within a steep descending price channel for the entire period of November and broke above this after rebounding at $0.2150.

XRP now faces strong resistance at $0.2345 and must break above $0.24 to see an intermediate bullish run. The support at $0.2150 can be expected to hold moving forward, but a break below would turn the market bearish.

XRP Short Term Price Prediction

If the buyers continue to push XRP above $0.2345, immediate higher resistance is expected at $0.24. Above this, resistance is located at $0.2520, $26.50 (100-days EMA), and $0.27 (bearish .618 Fib Retracement). On the other hand, if the sellers push the market lower, support is expected at $0.215. Beneath this, support lies at $0.205, $0.20, and $0.185.

The RSI is trading at the 50 level which shows indecision within the market. However, the Stochastic RSI is in overbought conditions and is primed for a bearish crossover signal which would send the market lower.

XRP/BTC: Stron Above 3000 SAT

xrpbtc-dec9

Against BTC, XRP continues to remain above the 3000 SAT support as it trades at 3050 SAT. 

For the cryptocurrency to turn bullish against BTC, XRP must break above the resistance at 3325 SAT (November highs). If it was to fall beneath the 3000 SAT support, the market would be considered as bearish.

XRP Short Term Price Prediction

Looking ahead, if the buyers push the market higher we can expect immediate strong resistance at 3115 SAT and 3185 SAT (100-days EMA). Above this, resistance lies at 3325 SAT and 3500 SAT. Alternatively, toward the downside, initial support lies at 3000 SAT. Beneath this, support lies at 2900 SAT (.618 Fib Retracement), 2850 SAT, and 2752 SAT.

The RSI has poked above the 50 level to show the bulls are weakly in charge of the momentum. Furthermore, the Stocahstic RSI recently produced a bullish crossover signal which helped XRP bounce higher from the 3000 SAT support. 

The post Ripple Price Analysis: XRP Goes Back Up To $0.23, Can Christmas Come Earlier? appeared first on CryptoPotato.

Source: Crypto Potato

Bakkt Launches The First CFTC-Regulated Option on Bitcoin And Cash-Settled Futures

Bakkt, the Bitcoin Futures trading platform of the Intercontinental Exchange (ICE), has just announced that it’s rolling out cash-settled Bitcoin futures and monthly options. The platform sees an increasing volume over the past week, signaling further institutional involvement.

Bakkt’s Cash-Settled Futures Contract

According to an official publication by Adam White, COO at Bakkt, the platform has rolled out a cash-settled Bitcoin futures contract.

So far, Bakkt was only offering physically-delivered Bitcoin futures. The difference is that when trading with the latter, the users receive an actual bitcoin at the end of the expiry period and not its cash equivalent, which is the case with cash-settled contracts.

The new contract will be available on ICE Futures Singapore. This is an approved exchange which allows Asian and international traders to gain exposure to Bitcoin’s price, without owning the underlying asset.

It’s also worth noting that this specific contract leverages the settlement price of the benchmark product of Bakkt – it’s physically-delivered Bitcoin futures contract.

Bakkt’s Regulated Monthly Bitcoin Options

The other product that the platform now supports represent monthly Bitcoin options. Interestingly enough, this is the first option on a futures contract for bitcoin that is regulated by the Commodity and Futures Trading Commission (CFTC) in the US.

The option settles two days before the expiry on ICE Futures U.S. Additionally, the price discovery happens within a federally regulated market, and it doesn’t have exposure to bitcoin’s yet unregulated spot market.

This move should, in theory, increase the overall turnover that Bakkt sees. As CryptoPotato reported earlier, Bakkt’s volume is continuously rising, and it appears to continue doing so. The platform’s products are oriented towards institutional investors, and that’s why it could be a signal that their interest in the field is growing stronger.

Of course, it’s also important to note that Bakkt will have serious competition when it comes to cash-settled Bitcoin futures because CME Group’s products are generating volumes much higher than that of Bakkt, as of yet.

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Source: Crypto Potato

Ethereum Price Analysis: ETH Claims $150 But Can It Go Any Higher?

  • Ethereum finally broke above the $150 level but now struggles at the resistance at $152.
  • ETH broke beneath the lower boundary of the symmetrical triangle as expected.
  • The bulls are attempting to gain control over the momentum but have failed to break above the 50 level on the RSI so far.

Key Support & Resistance Levels

ETH/USD

Support:  $145, $138.80, $133.50

Resistance: $152, $158.60, $165, $170.

ETH/BTC:

Support: 0.0196 BTC, 0.019 BTC, 0.0185 BTC

Resistance: 0.020 BTC, 0.021 BTC, 0.0215 BTC, 0.0223 BTC

ETH/USD: Ethereum Fails To Go Past $152  

ethusd-dec9

Since our last analysis, Ethereum continued to rise higher above the $150 level but has struggled to make any ground above the resistance at $152.40. The bulls attempted to break above the 50 level on the RSI but started to point downward as it reached 50. Furthermore, the Stochastic RSI has also reached overbought conditions and is primed for a bearish crossover signal that will send the market lower.

Ethereum Short Term Price Prediction

The sentiment for ETH could be classified as bearish. For it to continue it has to drop beneath the $133.50 support. To turn bullish in the short term, a break above $158 could see ETH reaching the $170 level.

For Ethereum to continue higher, ETH needs to break above the resistance at $152. For this to happen, we must see the volume begin to increase as it has been very low during the entire period of December 2019. Above $152, resistance is located at $158, $165, and at $170 (upper boundary of long term descending price channel). Alternatively, if the sellers step back in, we can expect immediate support at $145. Beneath this, support lies at $138.80, $133.50 (November lows), and $130 (lower boundary of price channel).

ETH/BTC: Ethereum Breaks Below The Symmetrical Triangle

ethbtc-dec9

Against Bitcoin, Ethereum broke beneath the 2-month old symmetrical triangle that we have been tracking. After that, it managed to find support at the 0.01966 BTC level where the cryptocurrency bounced slightly higher into the 0.02 BTC level.

The RSI remains in the favor of the bears, however, the Stochastic RSI has recently produced a strong bullish crossover signal which could be the initial sign of an incoming bullish press higher.

Ethereum Short Term Price Prediction

Ethereum still remains in a neutral market against Bitcoin. For it to turn bearish, we would need to see it dropping beneath 0.019 BTC. To turn bullish, ETH must break above the November highs.

If the bulls can continue higher from the 0.02 BTC level we can expect immediate resistance to be located at 0.0204 BTC and 0.021 BTC (100-days EMA). Higher resistance then lies at 0.0218 BTC (November highs). On the other hand, if the sellers regroup and pressure the market lower, we can expect immediate support at 0.01966 BTC. Added support is then found at 0.019 BTC (.618 Fib retracement) and 0.01847 BTC.

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Source: Crypto Potato

Bitcoin Trading Volume in Argentina Hits New ATH As The President-Elect Announced New Cabinet

Bitcoin trading volume in Argentina has broken the all-time high record again at the start of December. It comes just after the new president-elect has chosen a new cabinet seeking the Peronist agenda and possibly going against IMF’s involvement in the country.

Bitcoin Trading Volume At ATH

According to the popular monitoring resource Coin.Dance, the volume of Bitcoin traded on LocalBitcoins, has surged to a new all-time high during the first week of December 2019. In the past seven days, upwards of 22 million Argentinian Pesos (ARS) worth of BTC changed hands in the country.

BTCARSATH
BTCARSATH. Source: Coin.Dance

Interestingly enough, the notably high Bitcoin trading volume is not a one-time event. As can be seen in the chart above, the previous record of 20 million was spotted at the beginning of last month. Furthermore, the overall volume is increasing consistently. The number of BTC, however, is decreasing, because of the high inflation rate in the country.

However, Bitcoin’s acceptance is not restricted only to Argentina. As Cryptopotato reported this year, other Latin American countries, currently struggling with economic problems, are noting increased Bitcoin trading volumes.

New Presidency In Argentina

It’s safe to say that Argentina has seen better days when it comes down to the political and economic situation in the country.

Some of the issues include the increasing inflation rate, the recent food crisis, and protests against the involvement of the International Monetary Fund (IMF). Argentinian citizens appear to have spoken their will by electing Alberto Fernandez as the new president, who will be sworn-in tomorrow.

It’s also worth noting that Fernandez has chosen the former president, Christina Fernandez de Kirchner, to be the new vice-president of the country. Additionally, he has named Martin Guzman as an economy minister, and both moves are seen as the new cabinet will pursue the Peronist agenda.

Martin Guzman is a well-known critic of the International Monetary Fund and its involvement in the country. He has reportedly recommended a “possible path to restore debt sustainability” by delaying debt payments on capital and interest for two years.

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The US IRS Wants To Know How You Got Your Bitcoin

The Internal Revenue Service (IRS) of the US has long been trying to figure out the best way to single out and tax cryptocurrency holders. The authority has issued a new draft form which aims to obtain essential information regarding the acquisition, exchange, and sale of Bitcoin and other virtual assets.

Do You Own Any Bitcoin?

Cryptocurrency taxation has long been one of the hot topics amid regulators throughout the entire world. When it comes to the US, in particular, when an investor profits from the increase of Bitcoin’s price, he has realized a capital gain, and he bears a tax liability that has to be reported.

On the other hand, if the price goes down after the purchase, the investor would realize a capital loss that will save him money on the tax bill. However, it still needs to be reported.

The IRS, though, has recently introduced a new form that, despite still being just a draft, could raise more questions as to how cryptocurrencies were acquired, exchanged, and sold.

The form asks directly:

“At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”

It’s unclear whether it will be put into exploitation, but it goes to show that the efforts of the revenue service towards obtaining more information regarding cryptocurrency ownership and usage are increasing.

Rising Concerns Amid Regulators

The new draft form could have been somewhat expected. According to the new Criminal Investigation Annual Report 2019, cryptocurrencies pose a serious risk for the financial and tax system. This is expressed by Deputy Jim Lee.

“Cryptocurrencies are undermining the financial & tax system. Companies pay employees in crypto/receive crypto for goods/services. They don’t pay taxes & entities shift income to offshore exchanges with no reporting.”

Moreover, Chief Don Fort has stated that the Criminal Investigation (CI) department has a lot of open cases that are related to cryptocurrency crimes. Supposedly, the information on these should be made public fairly soon.

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Source: Crypto Potato