Bitcoin is the single pioneer into digital assets and has attained high values of billions of dollars in virtual assets. The transaction system itself is still going through regulation processes in most of the global economies, where financial institutions advocate for governments to back digital currencies.
The delay in regulation opened up Bitcoin trading to incredible and innovative fraudulent activities. Also, the fact that the notion of digital assets was and still is fairly unfamiliar cripples a lot of ‘green investors’ and opens them up to losses through fraud. Another reason is the technology behind digital transactions. Basically, the value of Bitcoin is based on a technology that very few understand. Needless to say, all of Bitcoin fraud happens online and Cyber criminals use these innovative technological operations to serve their own purposes.
Majority of Bitcoin fraud victims are usually unsuspecting novices and occasional seasoned traders. I will highlight the most common ways in which Bitcoin scams are carried out and how to protect yourself.
1.Fraudulent Bitcoin Wallets
Fake wallets were the easiest way for scammers to defraud investors. These wallets first appeared as mobile applications on the Apple and Google Stores. Granted the majority of users are completely confident in the authenticity of the applications. And they do not engage in sale or purchase of coins. It’s difficult to detect fake wallets and investors should avoid using third party wallets without verifying the links and adverts of such wallets on the main websites.
If you are unsure of the wallet, ask for help from someone who understands Bitcoin and wallets specifically. Looking at the reviews might also be helpful but not guaranteed.
You can also Store your Bitcoins in an Exchange such as Bittrex.com
2.Non-existent Bitcoin transactions
Believe it or not, one can learn how to do fake Bitcoin transactions right from the internet: not because it’s the easiest thing to do, but Bitcoin greedy miners/scammers are very innovative in how they do these transactions. It’s practically ‘impossible’ to duplicate a Bitcoin transaction. This is because once you transfer Bitcoins from one your account to another, the distributed ledger network registers it as a submitted transaction and prevents you from doing it again and again.
The verification process alone is enough to discourage counterfeiting a Bitcoin transaction. Unfortunately Bitcoin transactions are not free of loop holes. In brief, it is a Bitcoin flipping trick, offering exchange of Bitcoins for cash and they are able to advertise the same offer to as many people as possible in a very short period of time. But the other end of the bargain is never held up.
Unsecured websites offering Bitcoin at discount prices
Temporary offers to sell Bitcoin for Paypal
3.Bitcoin phishing impersonators
Bitcoin fraud gave rise to one of the largest money laundering cases in 2017 when Russian citizen Alexander Vinnik was accused of laundering an estimated sum of $4 Billion in Bitcoin, part of which was obtained from a hacking scheme of a failed Bitcoin exchange Mt. Gox.
One of the easiest ways this is done is through running fake adverts on social media or impersonating the Bitcoin brand itself. The issue is that the scammers are so good at this that they even ask you to check your Bitcoin key on their website to confirm its existence. That is how Finish millionaire Aarni Saarimaa lost over 5,000 Bitcoins to fraudsters in Thailand, after falling victim to a casino project and the idea of an upcoming cryptocurrency.
4.Bitcoin Pyramid schemes
This is the oldest trick in the investment book. The working principle here is multi-level marketing. Selling an idea based on minimal investments for higher yields by signing up as many people as possible. Then like dominoes the original scammer always walks away with all the investment and the scheme collapses.
Bitcoin on Wednesday challenged new highs as price against the US Dollar surged 1.42 percent within a few hours.
The BTC/USD pair built upon the near-term bullish scenario after breaking above the interim resistance explained in our previous analysis. A breakout action above 6421-fiat started attracting long positions towards 6500-fiat as the primary upside target. The pair rallied and established a new intraday high towards 6515-fiat before retreating across the exchanges. It is now trading at 6507-fiat.
The Dollar meanwhile slumped very little ahead of the US midterm elections. As of now, the Democratic party has announced its victory after winning 218 seats to control the House. The results could particularly weaken the dollar further, allowing US stocks to breathe a bullish air after the markets open today. In parallel, Bitcoin – a 24/7 open market – is already showing signs of a strong bullish bias in near-term.
BTC/USD Technical Analysis
The previous resistance at 6421-fiat is now taking up the role of a support after the BTC/USD rally. The pair is hinting a small bearish correction already, with its RSI and Stochastic Oscillator situated around the overbought area. The volume nevertheless has dipped as of now, meaning the new few hours could exhibit a stable price action before a downside correction attempt.
The BTC/USD pair is already trending inside a near-term rising wedge that is usually considered bearish for the same timeframe. The pair, now testing the upper trendline, should reverse and bring the lower trendline in view of the correction. That certainly is a decent short opportunity for day traders. Both the trendlines are almost parallel, so the price should start losing volume as they begin to converge. It could be the foremost signal of a breakdown scenario below the lower trendline. That also indicates that rallies taking place inside the rising wedge will prove to meaningless unless a sharp breakout above the upper trendline changes the technical dynamics overall.
BTC/USD Intraday Analysis
Our intraday analysis enables us to make profits regardless of the direction of the Bitcoin price action. The range we are watching today has 6513-fiat serving as interim resistance and 6421-fiat serving as interim support. The range is wide enough to apply our intrarange strategy. Therefore, a pullback from resistance enables a short position towards support and a retracement from support enables a long position towards resistance. It’s that simple.
Nevertheless, the real profits lie in the breakout targets. As we are already near the resistance level, a weak US dollar is allowing us to enter a long position towards 6640-fiat, our next upside target. Meanwhile, we are also maintaining a stop loss order just 3-pips below the entry point to exit the market on a small loss, in the event of a pullback action.
Looking towards the south, a break below 6421-fiat will have us enter a short position towards 6372-fiat, the bottom of the November 5 trading session. In this position, maintaining a stop loss order just 4-pips above the entry point would ensure that our risks stay lesser.
For techincal analysis beginner tutorials, click here
Bitcoin has been unusually stable in recent weeks, and the decrease in volatility has now reached historic levels in the futures markets.
Bitcoin Volatility Hits Record Level in Futures Markets
That’s according to Kevin Davitt, senior instructor for The Options Institute at CBOE Global Markets, who said that Chicago-based derivatives exchange saws record low volatility in its bitcoin futures market during the month of October.
Speaking on the subject during CBOE’s latest weekly bitcoin futures roundup, he said:
“Last week, which ended on October 26, saw the least volatility yet with a 3 percent weekly high-to-low range,” he said, “if we look at the weekly range over the course of October, it’s a mere 6.6 percent, which is far and away the lowest monthly average.”
CBOE’s XBT futures product had seen an average weekly volatility of 15.65 percent since their launch in Dec. 2017, more than double what the market saw in October. Remarkably, even bitcoin’s most volatile week during October saw a lead-month range of just 8 percent.
“The high settle was 6630, and the low settle was 6105. That move occurred in the second week of the month of October, between the 8th highs and the lows on October 11,” he said. “That works out to a lead-month range for the calendar month of less than 8 percent.”
Previously, Davitt had noted in his regular futures analysis that bitcoin’s 20-day historical volatility (HV) had become comparable to some of Wall Street’s most liquid stocks. At the time, bitcoin’s 20-day HV was below those of Amazon, Netflix, and Nvidia, and it was quickly approaching the HV of Apple, the world’s most valuable company.
Reflecting on this phenomenon, Davitt said, “Anyway you carve it, bitcoin volatility is relatively low and has been declining.”
Crypto Prices are Stable, But is That a Good Thing?
However, analysts disagree about whether the crypto market’s newfound stability is a positive sign. Tom Lee, one of Wall Street’s earliest and most well-known crypto advocates, said that he has been “pleasantly surprised” by how stable bitcoin has proven to be relative to the choppy equities markets.
BitMEX CEO Arthur Hayes, on the other hand, argued in recent market commentary that bitcoin would never see mainstream adoption unless volatility ramps back up.
“Contrary to popular belief, Bitcoin requires volatility if it is ever to gain mainstream adoption. The price of Bitcoin is the best and most transparent way to communicate the health of the ecosystem,” he wrote. “It advertises to the world that something is happening–whether that is positive or negative is irrelevant.”
What a difference a few months can make. It seems like a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin price could reach $50,000 in 2018. In fact, it has been less than six months, though the events that have occurred during that interlude have been sufficient for Hayes to slash his short-term crypto forecast by more than 95 percent.
Hayes, a former Citigroup trader, is now predicting that the bitcoin downtrend could last another 18 months, mirroring the “nuclear bear market” the crypto industry experienced in 2014 and 2015. Writing in Friday’s edition of the BitMEX Crypto Trader Digest, Hayes doubled down on that portentous outlook.
While chart-watchers often treat bear markets as beginning as soon as an asset dips below its cyclical peak, Hayes said that a better strategy may be to mark the beginning of the bear market as the date at which the bitcoin price falls below its 200-day moving average (DMA). By this metric, bitcoin entered bearish territory on March 12 when it was priced at $9,152 and has only seen a 37 percent decline since dropping below the 200 DMA.
Given that past bear markets have seen bitcoin break much further below its 200 DMA, he argued that it’s likely we still have a long way to go before the bears finish twisting the knife, potentially dropping BTC as low as $2,000 before the bulls regain their footing.
“How low can we go?” he asked. “A 75% fall from $9,152 takes us close to $2,000. $2,000 to $3,000 is my new sweet spot but don’t tell Michelle Lee just yet.” [Note: Hayes is likely referring to CNBC host Melissa Lee]
Hayes also cited the decline in bitcoin volatility as justification for his bearish outlook, taking a different tack from Fundstrat founder Tom Lee, who said that he was “pleasantly surprised” to see the decline in volatility given conditions in the broader equities markets.
“Contrary to popular belief, Bitcoin requires volatility if it is ever to gain mainstream adoption. The price of Bitcoin is the best and most transparent way to communicate the health of the ecosystem. It advertises to the world that something is happening–whether that is positive or negative is irrelevant.”
“The Bitcoin price volatility is the gateway drug into the ecosystem,” he continued. “If volatility stays at these depressed levels, the price will slowly leak lower. For those of us who lived through the 2014-2015 bear market, we all await that nasty ass candle that breaks the soul of the bulls. Then, and only then, will volatility and the price ratchet higher.”
In the meantime, Hayes said that the best traders could do is attempt to call the bottom, though they probably won’t have the fortitude to act when their instincts tell them that the floor is in.
“The key consideration to ‘calling the bottom’ is the price action around the last gasp of the bears. You will know it when you see it,” he concluded. “And the best part is, you probably will be too chicken to click that oh so scary Buy button.”
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space.
As such, bitcoin and altcoins now constitute a new institutional investment class since 2017, according to new research from major US bank Morgan Stanley.
In the report titled “Bitcoin Decrypted: A Brief Teach-in and Implications” and dated Oct. 31, the multinational investment bank’s research department gave an overview of the last six months of bitcoin and brought up insights about observable trends. This new report serves as an update to an earlier report published in December titled “Bitcoin Decrypted: A Brief Teach-in and Implications.”
The findings underscored the researchers’ observation of what the report described as the rapidly morphing thesis of the market, covering evolving perceptions of bitcoin since it was introduced into circulation as “electronic cash” in 2009.
Rise of Bitcoin & a New Financial System
In 2009, bitcoin came into reckoning as a viable alternative to the big banking cartels after it was first issued through open-source software. It attained a cult-like following, and by 2012, it was in the spotlight of mainstream news as the means of transaction in the online black market infamously referred to as the Silk Road marketplace. Its growing market capitalization drew the attention of entrepreneurs, tech-oriented individuals across the globe, activists, journalists, and blockchain-based crypto initiatives followed in their droves.
Bitcoin has been able to provide a decentralized payment mechanism which employs the use of a distributed ledger. While it appealed to some as a novel system capable of disrupting existing business models, it also proved to be a veritable tool for facilitating new economic relationships and linkages. As a digital currency, its distributed ledger makes it easier to process retail payment transactions such as e-commerce, person-to-person payments, and cross-border transactions with lesser costs and logistics attached when compared to what is obtained in financial institutions.
While it is still widely regarded as a speculative investment, it is already being used as a store of value and has been touted as a potential means of payment in the next decade. Dr. Zeynep Gurguc from Imperial College London has said that the criteria which need to be fulfilled for it to be fully incorporated into the payment systems include: scalability, usability, regulation, volatility, incentives, and privacy.
The report highlighted developments such as the recording of all transactions on a permanent ledger, the emergence of novel and cheaper technologies than bitcoin, volatility in the market, the volume of hacks, and hard forks as concerns which have affected the bitcoin ecosystem.
In view of this, the prevailing bear market coupled with the decline in price predisposes bitcoin and altcoins as a “new institutional investment class,” and this has been the trend in the last year.
The study cited the new crypto services division of Fidelity, investments in crypto firms such as Binance, and regulatory approvals as evidence of the increased participation of financial institutions lending credence to the market thesis.
According to the Morgan Stanley Research, some of the bottlenecks faced by clients who were interested in investing in the cryptocurrency industry include regulatory disparities, the absence of regulated custodial solutions, and the lack of formidable financial institutions operating in the industry.
Rise of Stablecoins
The report also recorded the gradual rise of fiat-pegged crypto stablecoins, which more or less began in 2017 but has quickened this year. The decline in cryptocurrency prices elicited an increase in the share of BTC trade volumes taken by USDT. Exchanges were used to trading crypto for crypto with relatively few involved in the trade of crypto for fiat.
The research, however, does not see all stablecoins surviving on the long-term. Those who would survive will most likely have relatively lower transaction costs, very high liquidity, and a clear regulatory structure.
The world’s largest bitcoin ATM company has finally received official approval to operate in New York. They had previously been operating in New York almost since the company’s inception via a provisional license. Last year, they received coverage in the New Yorker and have frequently been in the news with word of new ATMs across the country. Coinsource is creeping toward 200 machines, the majority of which are two-way ATMs — meaning that users can buy and sell bitcoin through them. Coinsource ATMs support transactions from $5 to a limit of $5,000 per day.
Coinsource believes that real-world bitcoin ATMs are important for the adoption of bitcoin as a whole. According to an external spokesperson, regulations are worth the wait in that they “legitimize” things. Speaking of their BitLicense being granted, she said:
“Coinsource has been operating with a provisional license within that state, so the approval of the license does not necessarily change the service, but further legitimizes the company as a whole. Being granted an official license is a huge step towards general adoption. […] This milestone demonstrates to both other crypto companies and the general public that if you remain compliant and play by the rules, you will be rewarded.”
Coinsource CEO Sheffield Clark added in a statement:
“From the onset, our goal was to provide millions of Americans with a reliable and convenient way to buy digital currency. Bitcoin is no longer a fringe currency, and in 2018, is increasingly being adopted by the mainstream. Today, with the issuance of the virtual currency trading license to a BTM operator, the bitcoin industry takes another step toward public adoption.”
Coinsource is the first and only bitcoin ATM operator to be granted a full BitLicense. New York being the hub of finance in the United States, it presents an important opportunity to expand the user base of bitcoin and later other cryptocurrencies as a whole.
BitLicense Frequent Source of Frustration to Bitcoiners
Whether or not the regulations will have a positive or negative impact on bitcoin companies remains to be seen. Regulation, in general, can have both positive and negative impacts on innovation, but in the case of the BitLicense, it can be argued that it discourages companies from operating in cryptocurrencies rather than another type of regulation which might encourage them to do so.
The BitLicense has been an intense subject of debate and worry since it was first proposed and later implemented by the New York Department of Financial Services. Several exchanges and other bitcoin service providers no longer work in New York State as a result of the licensing scheme, which many believe opens the door for favoritism and the picking of winners, among other problems.
It was ten years ago today that Satoshi Nakamoto first submitted the Bitcoin whitepaper to the Metzdowd cryptography mailing list and started a revolution in finance. A couple months before that, the domain Bitcoin.org had been registered. One of the first to interact with the world’s premier decentralized cryptocurrency – all new concepts at the time – was and still is a suspected Satoshi, Hal Finney, although Finney was not the first to respond to the post. Finney wrote:
I also do think that there is potential value in a form of unforgettable token whose production rate is predictable and can’t be influenced by corrupt parties. This would be more analogous to gold than to fiat currencies. Nick Szabo wrote many years ago about what he called “bit gold” and this could be an implementation of that concept.
No one in these early conversations lets on that they have any idea what is to come. Several concepts are still years away. The project is at first to create a form of digital cash. In December, the first version of Bitcoin lands on Sourceforge.net, at the time the most popular way to share open source code, Github having only been founded earlier that year. On January 98th, version 0.1 is released with a graphical interface, which aids those who speculate it could not have been built by a single person in such a short length of time.
First Block Mined
On January 3, 2009, the first block is mined by Satoshi Nakamoto himself. The rewards of this “genesis block” are unspendable. Nakamoto utilizes a feature the block’s which allows a miner to embed a tiny bit of data into a block, to include a headline of the day: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.” Satoshi also mines the next block, receiving the reward at the address 12c6DSiU4Rq3P4ZxziKxzrL5LmMBrzjrJX and many blocks after that. You might notice that people have sent that address nominal amounts of coin over the years, likely as a tribute to Satoshi.
Interestingly, most of Satoshi’s coins have never been spent, except to test out the software. Approximately 1,148,800 BTC remains unspent of his massive fortune.
Over the next nearly two years, a few parts of the early Bitcoin ecosystem grow up. Perhaps the most important part of said ecosystem at the time is Bitcointalk.org, where Satoshi frequently engages in important and sometimes heated discussions with other cypherpunks and people interested in digital money. Satoshi is the third registered user on the site, which is owned and operated by another early aficionado, Theymos or Michael Marquardt. Bitcointalk is where most of the philosophical and general discussion of Bitcoin place, as well as serving as one of the earliest trading hubs for the cryptocurrency, but developer talk is confined to an IRC channel, #bitcoin-dev on freenode, which is still used today.
Mt. Gox and The 10,000 BTC Pizza
2010 is an exciting year for Bitcoin, which has no functional exchange value associated with it until the establishment of early exchanges. The very first such market is called “The Bitcoin Market” but the first one, perhaps, that really matters is Mt. Gox, founded a few months later, which goes on to be legendary in a very negative sense for Bitcoiners the world over, with many losing fortunes and evidence that the price was manipulated. Also in 2010, the first Bitcoin transaction takes place – the legendary pizza purchase, in which Laszlo Hanyecz spent 10,000 BTC to buy some pizza. Another user had the pizza ordered online and received a $7 million fortune in today’s value for the equivalent of $25 worth of pizza. This would be the first real test of the currency and its value, though just a few months later the value would hit 80 cents a coin on some of the now-growing exchanges.
As with all new concepts, Bitcoin has its share of detractors in the early days and later on, when it starts to garner the attention of the mainstream media, becomes the subject of government scrutiny and criticism from traditional financial people. Then as now people at first struggled to grasp the idea of Bitcoin mining and the immutable, public ledger. Stories of Bitcoin itself being “hacked” were pretty frequent back then, and amongst Bitcoiners the term “FUD” (fear, uncertainty, and doubt) became common parlance in reference to such rumors.
However, it is important to note that in August of 2010, a bug was found and exploited to the tune of 184 billion false bitcoins. The system is designed to only ever have 21 million coins, and thus the decision was made to “hard fork” Bitcoin onto a new version of the blockchain which did not include these counterfeit coins. Few bugs of this significance have surfaced since then, as more and more developers have joined the project over time.
SatoshiDICE, Silk Road, and a Growing Exchange Market
2011 can be seen as the real establishment of the Bitcoin community, as it is around this time that people like Vitalik Buterin (then the founder of Bitcoin Magazine) and Erik Voorhees (current entrepreneur behind ShapeShift.io and at the time the owner of SatoshiDICE, which he later sold for more than 100,000 BTC at the first peak of the currency’s value). SatoshiDICE is the subject of some hyperbole when it becomes evident that some nodes do not want to process its transactions, calling them “spam” due to their often tiny size.
Bitcoin has since seen dozens if not hundreds of exchanges come and go, intense scrutiny from governments and rumors of the technology being banned in various regions, countless forks or altcoins being developed, and no story of Bitcoin is complete without two vitally important parts of its history included.
The Silk Road. The real value of Bitcoin was truly established when the world’s first dark net market called the Silk Road went online and chose Bitcoin as its medium of exchange. The market allowed for the sale of most goods, importantly illicit drugs, and for more than two years people could safely transact in such goods. There is valid speculation that the market rise of Bitcoin during the period of the Silk Road was fueled directly by demand which the market generated for the coin. In 2013, Ross Ulbricht was arrested in San Francisco. He had amassed a personal fortune – only a small portion of the exchange’s activity in the form of transaction fees – of 144,000 BTC, most of which was later auctioned by the US government to venture capitalist Tim Draper. Ulbricht eventually was given life in prison, and efforts to attain clemency for him remain in motion.
The Failure of Mt. Gox. Until its collapse, Mt. Gox had become the premier marketplace for Bitcoins for both buying and selling them. The exchange had a modern interface and allowed people to trade with little friction. Operated by French ex-pat living in Japan Mark Karpeles, the story of the exchange is a historical post all its own, but the basic facts are that at some point a bug in the code allowed the exchange to lose millions of dollars in coins, and it was later proven that the exchange covered up this fact and operated akin to a ponzi scheme for several months. The exchange’s eventual failure led to a severe decline in the value of Bitcoin beginning at the end of 2013 (when it had reached a high of over $1,000) and continuing all the way into late 2015, when it bottomed out at under $100. Confidence in the cryptocurrency as a whole was shaken by the events at Mt. Gox and Karpeles will forever have an important name in the history of Bitcoin.
The Block Wars
The polemics of this legendary technical debate eventually led to the first successful fork of Bitcoin, Bitcoin Cash, which can at least at first be seen as an effort primarily of Bitcoin millionaire Roger Ver and self-proclaimed Satoshi Craig S. Wright. Several other attempts were made prior to the introduction of Bitcoin Cash, including Bitcoin Classic by Gavin Andresen, without whom the story of Bitcoin is also not complete. Andresen was one of the earliest contributors to the code and participants in the community.
He later adopted the view that block size should be adjusted as technology had progressed since the introduction of Bitcoin such that blocks larger than 1MB could be processed by the vast majority of network participants. On the other side of the debate, a majority of Bitcoin developers backed by Blockstream, a firm founded by famed cryptographer Adam Back, believed that third-party efforts such as Lightning.network were the appropriate strategy to pursue. The debate even culminated in the resignation of Mike Hearn, who took issue with more than just the block size issue and declared Bitcoin was a failure.
At that time, it would have been insane to predict an average moving price of Bitcoin at more than $5,000, or that the premier exchange (today’s Binance) would be powered by an Ethereum smart contract token. Ethereum itself was not even heard of yet. How the times have changed – tokens provide as much news as anything else in today’s crypto world, and millions rather than than dozens of thousands of people have an active interest.
What will the next ten years bring? One thing has stood the test of time – Bitcoin’s dominance as the most valuable cryptocurrency or token on a blockchain. Will a Bitcoin killer ever truly emerge? Time will tell. The emergence of Ethereum and other smart contract platforms has brought about a whole new chapter in cryptocurrency, and as time goes on, we can only marvel at the breadth and artifice of the movement started 10 years ago today with a modest proposal on a little-known cryptography mailing list.
A combined effort by Kyber Network, Republic, Protocol, and BitGo, will soon be releasing a “wrapped Bitcoin” token with the symbol WBTC on the Ethereum blockchain which is directly tied to the value of Bitcoin. This token will have two very important effects on the digital currency.
First, it will allow Bitcoin to participate in Ethereum Smart contracts, which have previously been undertaken by coins like QTUM, which runs on the Ethereum virtual machine within the Bitcoin network. Another token by the name of Rootstock, mirrors features of Ethereum for Bitcoin which remains the dominant mode for smart contracts.
Second, it will allow the value of Bitcoin to be directly impacted on the Ethereum blockchain. Tokens will be backed by BitGo reserves while investors will be made aware of exactly what they are holding, for example, if one were to hold 1WBTC, this would be the equivalent value of 1BTC.
The Kyber Network intends on providing liquidity for WBTC tokens so that it can be exchange like any other supported ERC20 token. Together with Republic Protocol, these networks will ensure that KYC’d users can atomically swap between WBTC and BTC tokens.
The entire premise behind the project is to allow a seamless transition between Ethereum and Bitcoin. If the user is holding Bitcoin this will allow them to easily access the Ethereum network as a WBTC token. Users of the token can further cash back out to Bitcoin at any given time.
Several exchanges have already committed to the token listing. An interesting aspect, from a traders perspective, is whether the token will allow for arbitrage opportunities between WBTC and BTC or if WBTC prices will be locked into the BTC prices.
Over the past 24 hours, the cryptocurrency market has demonstrated the same trend it has shown throughout the past 12 days, with Bitcoin at $6,400.
The volume of Bitcoin has increased by nearly 20 percent from $3.1 billion to $3.5 billion, hinting a rise in trading activity in the cryptocurrency exchange market across major digital asset trading platforms.
The sudden rise in the volume of Bitcoin, which has been stagnant since mid-October, could lead to a potential short-term positive movement on the upside in the days to come.
Is Bitcoin Ready to Climb?
Various technical indicators of BTC suggest that the dominant cryptocurrency is building momentum to breakout of several minor resistance levels in the high $6,000 region.
Cryptocurrency trader and technical analyst Uzi stated that if BTC can surpass the $6,400 mark with ease, then it is possible for the asset to eye a breakout above the $6,500 mark.
“BTC looks ready to break out of the bull pennant on the 4H, price closed above the 50 & 20 day EMA today and MACD is bullish now, resistance is looking like 6417-6420 here, lets see if we can break it soon.”
The volume of BTC increased subsequent to the closure of a daily candle with lowest recorded volume in the past 10 months. During the weekend, the volume of the cryptocurrency exchange market tends to dip, alongside over-the-counter (OTC) markets that are said to process three times the daily trading volume of major cryptocurrency exchanges.
Hence, the rise in the volume of BTC on a Saturday is a positive indicator for the short-term trend of the asset. If the momentum of BTC above the $6,400 can be sustained throughout Sunday and continues on next week, the positive sentiment around the market will likely allow large market cap cryptocurrencies to rise in value.
Throughout the past week, in a sideways market, small tokens recorded decent gains against Bitcoin in the range of 5 to 10 percent. However, major cryptocurrencies like Bitcoin, Ethereum, Ripple, and Bitcoin Cash have not been able to demonstrate signs of recovery.
Von, another recognized crypto analyst, said that BTC is expected to hold $6,400 comfortably in the next 12 to 24 hours.
“BTC having a calm Sunday while kindly closing that Tether premium for us, currently $80 USD price very stable and Tether prices look likely to meet imminently I would expect $6,400 to hold and provide good territory for bounce, breaking that trés bearish.”
While the trading activity in the cryptocurrency exchange market increased over the past two days, the majority of traders are still waiting out for the market to demonstrate a major movement.
A potential increase in the price of Bitcoin to the $6,500 to $6,600 range is dependent on the ability of the market to sustain decent volume and momentum in the upcoming days.
As reported by the trusted news source in China, CnLedger, the country’s merchants can legally accept cryptocurrency as payment. According to reports by the Shenzhen Court of International Arbitration, Bitcoin is now officially recognized property, which allows individuals as well as businesses to transfer and own BTC without conflicting with current financial regulatory protocol.
Circulation of Bitcoin in China: Not Illegal
Crypto researcher, Catherine Wu, who also analyzed court documents by the Shenzhen Court Of International Arbitration, delved into the reason behind the decision by the courts.
Wu explained that due to the decentralized nature of BTC in which it can provide economic value and financial freedom to the owner, the asset is therefore recognized as personal property.
The court also emphasized that regardless of the legality behind the Bitcoin and other cryptocurrencies, the circulation and payment of BTC is not illegal. Bitcoin does not have the same rights as fiat currency, however that doesn’t mean that holding or paying with cryptocurrency is the illegal.
Several hotels located in China have also started to accept cryptocurrency. One such hotel has branded itself as the “Ethereum Hotel” which provides discounts to those who pay for their services utilizing Ethereum.
China’s Optimistic Stance
China’s stance towards blockchain technology and cryptocurrency seem to be positive overall. It’s becoming more and more apparent that the Chinese government has temporarily placed a blanket ban on cryptocurrency trading only, in order to prevent the devaluation of Chinese Yuan. Overall, the government remains open to cryptocurrency usage as well as the implementation of blockchain to improve existing infrastructures as well as issues pertaining to software and data protocol.
This week, Bitcoin mining equipment manufacturer and blockchain software firm Bitfury secured a valuation of $1 billion from billionaire investor Mike Novogratz and Korelya Capital’s $80 million investment in the firm. The multi-million dollar funding round comes
Bitcoin on Wednesday challenged new highs as price against the US Dollar surged 1.42 percent within a few hours. CHART FROM TUESDAY NOVEMBER 7, 2018 | SOURCE: TRADINGVIEW.COM The BTC/USD pair built upon the near-term
Balaji Srinivasan, a prominent venture capital investor and the chief technical officer at Coinbase, said that crypto is entering the tech mainstream. “Sundar Pichai & Sergey Brin’s sons are both mining crypto; Facebook is doing blockchain; Square
It’s not Thursday, but this story sure feels like a throwback to headlines from last year’s cryptocurrency mania: crypto enthusiasts have begun using their tokens to take out real mortgages on virtual land. Decentraland &
Ripple (XRP) on Tuesday established a bullish setup after rising more than 10 percent against the US dollar. The pair broke above the October peak to set a new one-month high at 0.569-fiat. It was previously
Bitcoin has been unusually stable in recent weeks, and the decrease in volatility has now reached historic levels in the futures markets. Bitcoin Volatility Hits Record Level in Futures Markets That’s according to Kevin Davitt,
Andreas M. Antonopoulos, the author of “Mastering Bitcoin” and a self-proclaimed “computer geek” who has dedicated his career to bitcoin, has a bone to pick with Bitly, the web-link shortening service. Bitly has seemingly blacklisted cryptocurrency
LXDX, the high-speed cryptocurrency exchange founded by a former SpaceX engineer, has announced that it will issue stock through a security token offering (STO). Institutional Crypto Exchange to Issue Stock on the Blockchain LXDX, which
IBM has filed a patent for a blockchain-based system which will prevent players of augmented reality games entering physical spaces that are undesirable. They cite as examples “high-risk locations, culturally sensitive locations, locations marked by property owners.”
Recent times have seen banks hedging their bets or even fully integrating cryptocurrencies. The acquisition and filing of patents is how large organizations truly express their interest in a given field, and Bank of America continues
Bitcoin (BTC) turned ten on Oct. 31, but there were no fireworks to mark the celebrations: the cryptocurrencies continue to trade in a tight range. Arthur Hayes, CEO of BitMEX, believes that the current period of low volatility can
Coinbase has just announced that trading of the Basic Attention Token is soon to be enabled on the Coinbase Pro platform, and deposits of the token are now being accepted. Trading in the token — which runs on Ethereum
What a difference a few months can make. It seems like a lifetime ago that Arthur Hayes, CEO of cryptocurrency derivatives platform BitMEX, predicted that the bitcoin price could reach $50,000 in 2018. In fact, it has
There is a rapidly growing interest in bitcoin and other cryptocurrencies among institutional investors while there seems to be lethargy in the number of retail buyers operating within the space. As such, bitcoin and altcoins now constitute a new
Retired US Congressman Ron Paul, a one-time bitcoin skeptic, called for a tax exemption on all cryptocurrencies, saying the move could prevent an economic recession. Ron Paul, the father of current United States Senator Rand Paul,
Tether Limited, the issuer of controversial USD-pegged cryptocurrency stablecoin tether (USDT), has confirmed that it has established a banking relationship with a small financial institution based out of the Bahamas. The cryptocurrency firm, notorious for its opaque operations,
Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews