Bitcoin price jumped above the $9,550 resistance to invalidate a key head and shoulders pattern against the US Dollar. It seems like BTC is primed for a massive rally above $10,000.Bitcoin bears failed to push the price below the main $9,150 support against the US Dollar.The bulls gained control, resulting in a fresh increase above $9,500.There is a connecting bullish trend line forming with support near $9,280 on the hourly chart of the BTC/USD pair (data feed from Kraken).On the upside, the $9,500 and $9,580 levels hold the key for the next major rally.Bitcoin Stuck In a RangeIn yesterday’s weekly analysis, we saw a Bitcoin priceThe main support is still near the $9,150 level, below which there is a risk of a larger downside correction to $8,800 or even $8,600.Major Hurdle for BTCThe $9,500 and $9,550 resistance levels are very important. A successful close above the mentioned levels is must for upside continuation towards the $10,000 resistance area.Any further gains above the $10,000 handle may perhaps lead the price towards the $10,400 resistance level in the coming sessions. Conversely, if bitcoin continues to struggle near the $9,500 and $9,550 resistance levels, there is a risk of a strong decline below the $9,240 and $9,150 support levels in the near term.Technical indicators:Hourly MACD – The MACD is likely to move back into the bullish zone.Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently rising and it is just above the 50 level.Major Support Levels – $9,240 followed by $9,150.Major Resistance Levels – $9,500, $9,550 and $10,000.
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Author: Aayush Jindal
The owners of the Gemini cryptocurrency exchange, the Winklevoss brothers, have won a flurry of U.S. patents for stablecoin technology they say could be issued by commercial banks.
Six patents, awarded between August 2019 and January 2020 to Tyler and Cameron Winklevoss’ intellectual property company, outline a system, similar to the collateralized token model already used by tether and the brothers’ Gemini dollar (GUSD), that allows users to directly swap fiat currency for their digital equivalents.
The stablecoin system needs “trusted entities” charged with generating, exchanging and destroying the stablecoins, as well as holding the fiat currency collateral on a 1:1 ratio with the number of tokens issued.
A trusted entity could be the Gemini exchange itself, the patent says, but “other types of trusted entities (e.g., banks, trusts, etc.) may also be used to issue, administer, redeem, and/or otherwise manage” the stablecoin as well.
One of the patents, awarded Jan. 21, describes a means by which entities, like banks, could create and issue new tokens to users quickly and efficiently. Trusted entities could also be allowed to charge users a “processing fee” for minting stablecoins.
The patents also detail a means by which stablecoins could be used as collateral “in financial transactions that are executed via smart contracts.” Another suggests dividends from securities and other such instruments could be paid out in the stablecoin.
Last summer, Gemini applied for U.S. broker-dealer license that would allow customers to buy digital securities and receive dividends, all in GUSD. The stablecoin, which launched back in September 2018, has been approved by the New York Department for Financial Services (NYDFS).
Stablecoin providers already use banks to hold onto customer funds. Boston-based State Street acts as the custodian for the dollar collateral backing the Gemini dollar. In December, the bank announced it would work with Gemini to examine reporting scenarios for cryptocurrencies.
“Our patent covers the unique way in which the Gemini dollar smart contract interacts with the Gemini exchange,” Carolyn Vadino, Gemini’s head of communications told CoinDesk. “Our patents protect the investments we make in the research and development of our products.”
Given the patents’ embodiments, it may be possible the system is being considered for licensing it out to banks or other financial institutions. It’s also not apparent if Gemini would use the existing GUSD coin or custom tokens based on the same tech. CoinDesk has reached out to clarify.
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Author: Paddy Baker