Bitcoin’s recent market movements have thrown into contention consensus about its short-term price direction, with traders asking openly if demand is strong enough to fend off another bear market.
Such a question has emerged in the wake of the world’s largest cryptocurrency’s inability to set new highs above those seen in June and July, when optimism about a Facebook cryptocurrency launch pushed the price of bitcoin to $13,880 and $13,200 on June 26 and July 10, respectively.
Since then, bitcoin has largely failed to test these highs again, prompting speculation traders may be willing to push the market into a lower range, one that could be deepened by available futures options.
However, investors and analysts remain bullish based on the assumption that demand will continue its current course, helping to sustain prices around $10,000 until next year’s May halving takes effect. Then, investors will see the amount of new bitcoin introduced to the market daily cut in half, with each new block in the blockchain producing 6.25 BTC, down from 12.5 BTC.
As can be seen by the recent litecoin halving, events that increase the perceived scarcity of cryptocurrencies have proven to catalyze buying interest.
Further, Jeff Dorman, chief investment officer at Arca, an investment management firm focused on the asset class, argues that with the likes of Bakkt and Fidelity opening their doors to new money amid current global economic tensions, bitcoin looks attractive to large hedge fund managers seeking to offset risk in traditional markets.
Dorman told CoinDesk:
“Most macro hedge funds are contemplating using BTC as a better way to offset the systemic risks that are building globally. There seems to be too much interest and too much money on the sidelines for the market to really go lower in any meaningful way.”
Factoring Miner Demand
Analyzing the cryptocurrency markets remains an evolving science, but new metrics suggest that bitcoin may currently be priced favorably ahead of the halving event.
The Diffiulty Ribbon, created by influential market analyst Willy Woo, for example, was recently released. It helps illustrate how leading analysts believe miner selling pressure affects the price of bitcoin.
(As miners are believed to sell the BTC they receive from winning block rewards – to pay employees, electrical bills and other real-world costs – they are believed to influence market direction.)
The above chart shows bitcoin’s “network difficulty,” a function of how hard the software makes it to discover a new block and thus claim the new cryptocurrency it releases to the market.
When the rate of network difficulty increases slows, analysts believe this is a sign miners are shutting off their hardware (leaving only the strong miners who proportionally need to sell fewer coins to remain operational). It’s believed this leads to reduced sell pressure and more room for price increases.
The ribbon consists of simple moving averages of BTC network difficulty so the rate of change of difficulty can be easily seen. According to Woo, the best times to buy BTC are zones where the ribbon compresses.
“The timing of the last difficulty ribbon compression is very bullish, especially given we expect another compression at the halving, I don’t think we have time to come into a bear season before then.”
That said, less sophisticated investors may be using simple price charts to gauge entries.
The last two months have produced a series of lower highs putting a clamp to further growth. This can be observed in the amount of sell pressure bitcoin has seen when approaching upper resistances $10,800-$13,200.
Still, prices have held above $10,000 by the end of each daily closing period for nearly 30 days, suggesting that demand for bitcoin below that mark remains strong. As a result, some analysts believe BTC’s outlook would only change bias from bullish-to-bearish long-term should a firm close below $7,333 (200-day moving average) occur.
Still, the pressure is now mounting on the bulls to produce something significant in the short-term or else risk exposing lower supports at $9,600.
Whether or not short-term price action remains bearish, analysts agree that BTC is still bullishly bid based on its position above the aforementioned 200-daily moving average and current mining activity.
However, Dorman argues simple psychology may be the overriding factor so long as $10,000 remains a strong support and belief in the halving as a price catalyst remains strong.
“In general, across any asset class, when consensus is to buy lower… you rarely get that chance.”
Disclosure: This author holds no cryptocurrency at time of writing.
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Author: Sebastian Sinclair
Ripple price is following a bearish path below the $0.2800 and $0.2900 resistances against the US dollar.There are many supports on the downside such as $0.2640, $0.2580 and $0.2500.There is a crucial bearish trend line forming with resistance near $0.2700 on the 4-hours chart of the XRP/USD pair (data source from Kraken).The price could either climb above $0.2800 or decline heavily below $0.2500 in the near term.Ripple price is facing a lot of hurdles against the US Dollar and Looking at the chart, ripple price is clearly struggling to gain bullish momentum above $0.2750 and $0.2800. However, there are many supports near $0.2580 and $0.2500. Overall, the next key break is near and the price could either surge or decline heavily below $0.2500.Technical IndicatorsHourly MACD – The MACD for XRP/USD is slowly moving into the bearish zone.Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is currently below 50 and is moving lower towards 40.Major Support Levels – $0.2640, $0.2580 and $0.2500.Major Resistance Levels – $0.2750, $0.2800 and $0.2920.
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Author: Aayush Jindal
ETH price is trading in a bearish zone below the $190 and $192 resistances against the US Dollar.The price is at a risk of more downsides if it breaks the $185 and $182 support levels.There is a key bearish trend line forming with resistance at $187 on the hourly chart of ETH/USD (data feed via Kraken).The pair might slowly move down towards the $182 and $180 support levels in the near term.Ethereum price is trading in a bearish zone versus the US Dollar and Looking at the chart, Ethereum price is trading with a bearish angle below the $190 resistance level. Therefore, there are high chances of more downsides below the $184 and $182 support levels. Similarly, bitcoin price could struggle to recover above $10,250 and it might decline below $10,000.ETH Technical IndicatorsHourly MACD – The MACD for ETH/USD is slowly gaining momentum in the bearish zone.Hourly RSI – The RSI for ETH/USD is currently holding the 40 level, with a negative bias.Major Support Level – $180Major Resistance Level – $190
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Author: Aayush Jindal
NASA Chief Jim Bridenstine – a politician who’s probably seen one or two episodes of “Cosmos” – has officially declared Pluto a planet again. His reasoning: that’s the way he learned it in high school.
My favorite soundbyte of the day that probably won’t make it to TV. It came from NASA Administrator Jim Bridenstine. As a Pluto Supporter, I really appreciated this. #9wx #PlutoLoversRejoice @JimBridenstine pic.twitter.com/NdfQWW5PSZ
— Cory Reppenhagen (@CReppWx) August 23, 2019
Bridenstine’s not just the head of NASA, mind you, he’s also a good friend of President Donald Trump’s. That friendship represents his only qualification for the job — typically you’d expect the person in charge of our national space program to be a scientist. He is not.
He is, however, a former climate change-skeptic and current critic of the government’s continued spending to combat the growing climate crisis. And he also feels as though the government should privatize space exploration – he’d likely make a killing as a consultant after he’s done doing his turn in the President‘s cabaret of “the best people.”
There are some scientists – the kind that actually perform research and study at least one scientific discipline, not the type appointed by a reality-TV-star-turned-politician who started out in real estate – who believe Pluto should still be considered a planet. But not because that’s the way they learned it 30 years ago. There’s still some ongoing debate over whether the bar was set too high when the International Astronomical Union voted in 2006.
The majority of astronomers who voted on the proposal decided that Pluto, like at least 44 other similarly-sized heavenly bodies near our solar system, was a dwarf planet. That matter’s been settled, but that doesn’t stop people from catching feelings over the littlest planet.
We love a good underdog, and Pluto‘s tale is a compelling one. But science isn’t a movie. There’s no disembodied voice growling “in a world, where a world, is no longer a world, one brave scient- err, politician dared to stand up against the planet-hating bullies of the science world” while we all settle in with our popcorn to watch “Bridenstine: Pluto’s Savior” (directed by Michael Bay).
At the end of the day, here’s hoping that the astronomy community holds strong against those who would have our youth learn the more than 50 planets in our solar system if we’re forced to count every asteroid with a gym membership as a planet. Think of the damn dioramas people, we’re talking a dozen wire hangers at least.
Pluto’s not a planet. But it’s easy to see why Bridenstine would empathize with the plight of an under-qualified object whose supporters hope to aid in its ascension to a position it absolutely doesn’t deserve.
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Author: Team E-crypto News
Jeremy Lin’s incredible run in the NBA is over. As the first American-Chinese or Taiwanese player in the history of the league, not to mention the first Asian-American to win an NBA title, the “Linsanity” superstar is taking his talents to Beijing. In China, the point-guard will discover – something he clearly didn’t realize after his rock-bottom comments – that he’s one of the most influential athletes in the world.
NBA Champion Jeremy Lin Departs For China
There was always something special about Jeremy Lin. It wasn’t just his ethnicity, though the media (and Jeremy) were quick to point out that his rise to the top of basketball was more difficult because of his race. It wasn’t his academic achievement either, though as a Harvard graduate he had the brains to match his skills on the court.
Jeremy Lin is a superstar because he was an American dream story-line in a sport where even first-round draft picks fade into obscurity. Lin wasn’t even drafted and yet here he was proving everyone wrong, destroying opposition teams almost single handedly.
Kobe Bryant’s Legendary Diss
Kobe Bryant did his legend a favor by disrespecting him shortly before he dropped 38 points on the Lakers. It was the most dramatic zero to hero performance in NBA history. Now, Lin looks to have regressed to zero, describing his situation as “rock bottom.” A little perspective will quickly show him how wrong he is.
In China, Jeremy Lin will cast a bigger shadow than any American athlete can throw in the saturated U.S. market. He already enjoys a cult-like status in the U.S., but in Asia, there is nothing niche about his support. While it seems plausible that Jeremy could one day return to the NBA, his time in China may well make him ask himself why he should bother.
China’s Love For Basketball Propels Lin to Godlike Status
The NBA disrespected him and rejected him where China will give him almost godlike status. China’s population is nearly four times bigger than the U.S., and the NBA is more popular than the three largest soccer leagues in Europe combined. Nations will always celebrate their own more fervently than foreigners, and in a new home in Beijing, Lin may find himself once again at the fever pitch of public interest.
If anyone will know what it’s like to deal with sudden, overwhelming fame, it’s Jeremy Lin.
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Author: Francois Aure