Bitcoin Price Analysis: Bitcoin Consolidation Forecasts $3,500 Move
Bitcoin Magazine
Bitcoin Price Analysis: Bitcoin Consolidation Forecasts $3,500 Move
A strong round of buys hit the market this weekend as unsubstantiated rumors began to circle surrounding Tether and Bitfinex’s potential insolvency. I won’t be going into the details surrounding the allegations because, like I said, they are nothing more than unsubstantiated rumors. However, the effects of the rumors did not go unnoticed.
Tether, a stablecoin and dollar-backed token, began to stack up a sizable premium from its normal 1:1, dollar-to-tether market rate. This deviation in price began to run massive premiums between Bitfinex and other large crypto exchanges. At one point, the price of bitcoin on Bitfinex hit a high of $7,800 while barely breaking $6,700 on most other exchanges. At the time of this article, the premium, although still modest, has closed significantly. The trend difference between Bitfinex and other exchanges tells a very different story than those of Coinbase, Gemini and Bitstamp:
Figure 1: BTC-USD, 12-Hour Candles, Bitfinex Premium and Break of Downtrend
One huge difference between Bitfinex and other exchanges is this clear and decisive break of the multi-month downtrend that has governed the market dynamic for the last 10 months. Currently, Bitfinex is consolidating outside this downtrend and saw the largest daily volume that its BTC-USD market has traded in over 6 months. However, if we take a look at Bitstamp, for example, we see a very different story:
Figure 2: BTC-USD, Daily Candles, Bitstamp Price Trend
Although Bitstamp also saw a sizeable round of buying pressure, it wasn’t enough to crack the downtrend (shown in black). I’m not going to attempt to speculate on the potential outcome of this whole Tether/Bitfinex debacle, but judging strictly from price action, bitcoin is looking very consolidated and ready for a very large move.
The current consolidation pattern is called a descending triangle and has a measured move of approximately $3,500. Whether that $3,500 move is upward or downward remains to be seen, but one thing is certain: The market is very tightly wound and ready for a move:
Figure 3: BTC-USD, Weekly Candles, Bollinger Bands
The weekly Bollinger Bands (bbands) have been consolidating since bitcoin topped at $20,000. If you are unfamiliar with bbands, you can think of them as an envelope of volatility: If the bands are expanding, they forecast a continuation of volatility, if they are contracting they forecast reduced volatility, and if they are squeezing (which is what we see right now) they forecast upcoming volatility.
Since the bear market began, bitcoin has been unable to break the midline of weekly bbands and volume has contracted. Currently, we are making a pivot for a fourth higher low as the volume and price volatility has continued its trend of consolidation. The first milestone, on a macro perspective, would be a break and close above the weekly bbands midline — which just so happens to also line up with the macro downtrend shown in Figure 2.
We have already wicked above the weekly midline, but the price is currently sitting just below the midline values. If we can manage to close the current candle above the midline, that would be a very bullish signal and will likely see the projected move of the descending triangle (shown in Figure 2) push the price to the low $10,000 range.
However, if we fail to break out upward we have an immediate support test in store in the low $6,000 range. This would mark our sixth test of this support — typically not a good sign as support tests tend to weaken with each test. If we break below support, I would fully expect to see, at minimum, a test of the macro 78% retracement shown in Figure 3 — the low $4,000 range. There is very strong support on these values which will likely stifle any significant round of selling. For now, we are basically in wait-and-see-mode until the bitcoin consolidation is broken.
Summary:Tether/Bitfinex insolvency rumors caused a massive tether premium to occur and, ultimately, resulted in a large price discrepancy across multiple exchanges.Currently, Bitfinex is sitting outside its macro downtrend while virtually every other exchange is sitting inside its downtrend.
We are in the process of testing the weekly bbands midline and are currently rejecting the midline values. If we can manage to close the weekly candle above the midline, that would be a very bullish signal.
Our currently consolidation pattern has a measured move of $3,500 and can break out in either the upward or downward direction. For now we are consolidating, so it’s very difficult to tell in which direction it will actually break out.
Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
This article originally appeared on Bitcoin Magazine.
https://www.coindebate.com/2018/10/bitcoin-price-analysis-bitcoin.html
Crypto Market Bounces, Ethereum (ETH) Surges Amid Short Seller Qualms
Crypto New Media
Crypto Market Bounces, Ethereum (ETH) Surges Amid Short Seller Qualms
Crypto New Media Press
Bitcoin (BTC) Stagnates Amidst Altcoin Surge As covered by Ethereum World News previously, the cryptocurrency market finally broke its weeks-long streak of non-action on Wednesday, as a majority of crypto assets tumbled by upwards of 10%. Bitcoin, for one, moved under $6,300 for the first time in weeks, while Ethereum (ETH), briefly spent some time under […]
The post Crypto Market Bounces, Ethereum (ETH) Surges Amid Short Seller Qualms appeared first on Crypto New Media.
https://www.coindebate.com/2018/10/crypto-market-bounces-ethereum-eth.html
Bitcoin [BTC] drops by 4% after Blockstream announces Liquid sidechain on Bitcoin |
Crypto New Media
Bitcoin [BTC] drops by 4% after Blockstream announces Liquid sidechain on Bitcoin |
Crypto New Media Press
Bitcoin [BTC] saw a sharp price drop today, erasing over 4% of its value in just a few hours as it saw a waterfall drop earlier today. However, this strangely coincided with the announcement of Liquid, a sidechain of the Bitcoin blockchain, by Blockstream.Only $2.50Bitcoin Rare 1oz. 999 Pre Solid Gold Plated Coin Collectiablehttp://topchaneloutlet.infoOnly $25.90 […]
The post Bitcoin [BTC] drops by 4% after Blockstream announces Liquid sidechain on Bitcoin | appeared first on Crypto New Media.
https://www.coindebate.com/2018/10/bitcoin-btc-drops-by-4-after.html
Blockstreamҳ Liquid Network for ӈigh ValueԠBitcoin Payments Is Live
Bitcoin Magazine
Blockstream’s Liquid Network for “High Value” Bitcoin Payments Is Live
The Liquid Network is up and running.
More than a year after its conceptual introduction at the Blockchain Association of Canada's Government Forum in Ottawa, Blockstream’s bitcoin scaling solution made its public debut on October 10, 2018, after going live among its partners on September 27.
Described by its creators as “an inter-exchange settlement network,” Liquid is Blockstream’s complement to Lightning. However, whereas Lightning is designed for micropayments, Blockstream’s CSO Samson Mow told Bitcoin Magazine, “Liquid is designed to facilitate fast and reliable high value transfers.”
“Liquid allows parties to send funds to any destination, without the need to establish channels ahead of time. Funds in Lightning are ‘hot’ (private keys are online), whereas you can store Liquid Bitcoin in both hot or cold wallets. Liquid also has the ability to have Lightning added as a second layer as well, so we view these two technologies as complementary and both important for the ecosystem.”
Unlike its counterpart in Lightning, which is a secondary layer, Liquid was built as a Bitcoin sidechain. Though not exclusive to Bitcoin, you can think of a sidechain as an extension of the Bitcoin blockchain. It allows users to swap coins from the main blockchain to its sidechain in a 1-to-1 parity, usually to tap into a feature that the main network doesn’t provide.
For Liquid, that feature is fast transactions with a special emphasis on trading mass sums between exchanges, financiers and market makers. As such, Mow says that exchanges and members of the Liquid network will be the main providers of liquidity, since they will be the ones keeping a balance of L-BTC which, in turn, they would allow their users to swap for.
This design is a bit of a spin on the original ideation of a sidechain. The concept was initially pitched as an avenue for trustless swaps, but Liquid’s iteration, which requires intermediaries to execute these swaps, may be called a federated sidechain.
“The members of Liquid secure the network by running functionary servers that run the Liquid blockchain as well as maintaining the two-way peg to the Bitcoin blockchain,” he said. He drew the comparison that “Liquid functionaries are like miners” who “generate new blocks to add to the Liquid blockchain.”
To leverage sidechain’s features, users have to exchange mainnet BTC for Liquid Network’s L-BTC using peg addresses.
“When someone wants to move BTC to the Liquid sidechain,” Mow explained, “they send it to a unique peg-in address. When someone is ready to move their money back to the Bitcoin blockchain, they can make a peg-out transaction that will tell the [Liquid members] to send Bitcoin to the desired address.”
After Launch: Looking ForwardUpon launch, the project has 23 partners lined up to serve as Liquid members, namely Altonomy, Atlantic Financial, Bitbank, Bitfinex, Bitmax, BitMEX, Bitso, BTCBOX, BTSE, Bull Exchange, DGroup, Coinone, Crypto Garage, GOPAX (operated by Streami), Korbit, L2B Global, OKCoin, The Rock Trading, SIX Digital Exchange, Unocoin, Xapo, XBTO and Zaif.
Moving forward, Liquid hopes to expand its membership and build out its services. These services could include Issued Assets (IA), Mow explained, what amount to “native tokens within the Liquid blockchain.” These IA could be security tokens, tokenized commodities/real-world assets or even Ethereum.
More than IA, Mow stated that Liquid has “a lot of things coming down the pipe” following its launch. These include a Liquid Testnet that is anchored to Blockstream Signet (Blockstream’s testnet for Bitcoin), GreenAddress integration, a Liquid mobile wallet for mobile platforms, a user interface for Issued Assets, a Liquid Block Explorer and hardware wallet support. He expects these features to be fully functioning by 2018, with more coming in 2019.
In the short term, Blockstream will focus on building out these features to ease Liquid’s introduction to and use in the wider cryptocurrency community. In the long term, Mow said the the company hopes to see Bitcoin at the epicenter of a nexus of sidechains that allow for a seamless, interconnected exchange of the industry’s many assets.
“The end game is a platform for the trustless exchange of many assets, with Bitcoin at the center,” said Mow. “We knew that having a high speed inter-exchange settlement network with privacy features would be something the market would respond well towards, but we’ve seen an incredible interest from parties interested to issue tokens and assets on Liquid as well. They’ve just been waiting for a secure and reliable solution to do so.”
This article originally appeared on Bitcoin Magazine.
https://www.coindebate.com/2018/10/blockstreams-liquid-network-for-high.html
United Arab Emirates to Allow ICOs as Corporate Funding Option
CoinDesk
United Arab Emirates to Allow ICOs as Corporate Funding Option
The U.A.E. plans to introduce regulations that would permit initial coin offerings to be used as a means of fundraising for domestic companies.
https://www.coindebate.com/2018/10/united-arab-emirates-to-allow-icos-as.html
