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CZ Tweets About a Significant Bullish Run… And Deletes It To Not Over-excite Market

The bullish sentiment seems to be awakening in many investors, resulting in a very positive effect for the community as they see how big names in the cryptomarket are optimistic about the future price performance of their favorite tokens.

The cryptocurrency market is undoubtedly one of the most volatile in the financial world. Scientific studies have shown that this community tends to react more to comments and rumors than to technical indicators used in traditional markets.

However, after a correction as important as the one experienced during 2018, a possible recovery may be in sight, and several analysts have ventured to comment that perhaps the bears’ power stage has come to an end.

CZ: A Bullish Man With an Important Voice

One of the ones who couldn’t contain his excitement was CZ, CEO of Binance, who in his personal tweeter said that crypto prices could be at the gates of a new bullish run of great importance:

A man with the level of influence within the community as CZ has a loud voice in the markets. His actions generate a strong expectation in the investors since he represents the most important Exchange of cryptocurrencies in the world.

Was a Deleted Tweet The Best Decision?

However, after a short time, CZ decided to delete the tweet. This caused considerable controversy, prompting the public to speculate on the reasons why he did it, especially since the tweet came from someone who “knows his stuff.”

To avoid unfounded speculation, CZ himself commented on why he deleted the tweet mentioned above:

“It was spreading too quickly, and some over read into it as a sign/hint/speculation/etc. So I took it off. I am always bullish, and think we are in a bull market. I look at the week chart. And hodl, for years.”

“CZ”: CEO of Binance

In other words, he didn’t change his mind, he didn’t think he was wrong, let alone changed his view of the market. He was merely trying to prevent his comments from being used as a basis for exaggerated conclusions.

While in reddit, users commented on the possible causes, most of the reactions were positive. Most users understood this thanks to CZ’s quick clarification that even after deleting such a controversial tweet, he managed to maintain optimism within the community.

CZ tweets ‘this bull run will be a significant one’ then deletes tweet from CryptoCurrency

Girl in a jacket

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We’ll Recover Just Like The Past, says veteran BTC Analyst Willy Woo

Willy Woo, a veteran digital currency analyst with a strong focus on Bitcoin (BTC), has correctly predicted BTC trends on two occasions as highlighted by Ethereum World News.

The first time he did so, was back in late May when he had doubts that BTC would hold its levels above $7,000. Mr. Woo would then predict a decline to levels of $5,500 – $5,700 before the end of June. Sure enough, we touched $5,800 on June 29th. His first prediction was as follows:

I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.

The second time was when he predicted on the 1st of August that Bitcoin would flash dump then moon. His full prediction was as follows:

Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.

‘Flash Dump and Moon’ was taken out of context

Willy Woo has since stated that his predictions of a ‘flash dump then moon’ were taken out of context, but the accuracy of his words were stunning. In a tweet explaining how it was never intended to be a prediction, Mr. Woo stated that:

I never predicted a flash dump. It was a discussion on price movements in the context of a hypothetical banking crisis similar to WFC 2008.

We’ll recover, just like the past

As part of his response to the ‘Flash Dump then moon’ discussion, Willy Woo also stated that the current bear market might not be as huge or historic as everybody thinks. He went on to elaborate it in the following way:

Nah. This bear market has strong fundamentals. We’ll recover just like the past. It’s never been stronger on the long view. The fact that the media and big institutional players are talking it down is amazing. BTC used to be laughed at.

It is 2014 all over again for BTC

Bitcoin (BTC) experienced a similar decline back in early 2014. The decline was due to the Mt.Gox saga that transpired from late December 2013, to around March 2014. Back then, BTC fell 82.3% in a period of 21 months up until August 2015. Returning to current events, BTC has fallen 71% since its peak in December 2017.

When the bottom of the decline was reached back in August 2015, BTC would then continue to gain in value, from $203, for 28 months till its recent peak of $20,000 witnessed in December last year. This was a magnificent run that was 9,800% in gains in that time period.

In conclusion, the current BTC and total crypto market decline is normal for it has been witnessed before in the past. What remains to be seen, if we have reached the bottom of the decline in preparation of an upward trend for the next several months.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Stellar Gives Some Interesting Bullish Signals after IBM Announcement

Stellar has had an excellent week at both the fundamental and technical levels. The platform, known as Ripple’s decentralized competition, has seen a considerable increase in its market cap as well as a growing credibility in the general business markets.

A few days ago IBM mentioned that they would be working on their own stablecoin based on blockchain technologies. Stronghold USD will be a cryptocurrency backed one-to-one by fiat US Dollars held at Prime Trust, a bank with which IBM has a solid partnership.

Being Stronghold a payment platform running on Stellar, it is safe to think it can boost no only Stellar’s credibility but also its institutional adoption.

After this news broke, Stellar started a bullish streak that took it to number 6 in the global market cap, overtaking Litecoin from its position.

Stellar Bullish Fundamentals.

IBM Logo

From a fundamental point of view, Stellar could represent a good investment option in the medium term.

IBM’s announcement gives the platform institutional credibility not previously held. Stellar can capitalize on IBM’s strong image to consolidate itself as an attractive option for institutional investors who are not familiar with cryptocurrency but are familiar with IBM’s business.

Similarly, such an adoption can generate an overall effect of “self-fulfilling prophecy.” After realizing about increasing trading volumes, many investors would be more willing to add Stellar Lumens (XLM) to their portfolios, helping to further promote an increase in the value of the popular cryptocurrency.

Stellar Lumens (XLM) Bullish Technicals.

From a technical point of view, Stellar Lumens (XLM) has performed well over the last few days. The drag that Bitcoin (BTC) exerts on the rest of the altcoins is somewhat obvious; however, the bullish trend seems stable, at least in the short term.

Heikin Ashi candles show a bullish trend with no indication of a change in the next few hours or days. In fact, it is possible to observe how a slightly bearish glimpse was quickly dissipated in a short time.

MACD stays high with no sign of a reversal yet. The indicators have no crossover prospects, so it may be worth buying for a small gain in a short time (riskier), or at least hodling until a change in trend occurs (safer).

RSI, of course, shows the enthusiasm of buyers, reaching record highs in 2018. This may have an explanation in the fundamental analysis, so following this signal, it is advisable to hodl, being riskier a token purchase at least at this time

Graphics Created Using Tradingview

With traditional candles, prices have broken the two clear patterns seen in prices, observing a clear break from the bearish trend that had until about 2 weeks ago

Graphics Created Using Tradingview

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Is Bitcoin (BTC) Down Because of Summer Vacations and the FIFA World Cup in Russia?

During one of the conversations in the numerous cryptocurrency chat groups on Telegram, a keen observer of trends pointed out that Bitcoin (BTC) and the crypto-markets are relatively week during the Summer months of the Northern hemisphere. According to National Geographic, summer in the Northern Hemisphere occurs every year from 1st June to August 31st.

He continued to point out that many Americans and Europeans are probably travelling and some are even in Russia to witness history at the World Cup that started on the June 14th to July 15th. The FIFA World Cup is held in the summer months once every four years. The previous tournament in Brazil (2014) was estimated to have welcomed over 6 million tourists in that year alone. The country of Russia has estimated close to 2 Million visitors during the tournament alone (14th June to 15th July).

It is with these two events – Summer, 2018 and the FIFA World Cup – that it is possible to have a theory that the lack of volume in the cryptocurrency markets, is due to individuals around the world enjoying the accompanying activities related to these two events. This means a lot of spending through travelling, eating out and generally having a good time. There were plenty of savvy crypto traders who made massive gains in the last bull run of 2017. They could be enjoying their profits at a beach somewhere before deciding to return to trading in September.

Looking at last year’s price chart for Bitcoin during the summer months, yields a similar observation of a stagnant Bitcoin price up until mid August. What then proceeded during that time period, was the amazing bull run we had in November, December and to some extent, January 2018.

BTC chart showing little activity in May, June and July. Activity started in mid August. Source, coinmarketcap.com

In conclusion, the summer spending habits of individuals in the Northern Hemisphere during this time period could be a factor as to why the current price of Bitcoin has stagnated from late May. BTC ended that month at a value of $7,140 which is not too far off from current levels of $6,587. Perhaps when the summer and the FIFA world cup are over, we will see more funds buying into the crypto markets and a possible bull run into the Holiday season.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Why China Will Drive The Next Crypto Bull Run

News out of China usually has a negative impact on cryptocurrency markets. The government has made its stance on cryptos very clear: it doesn’t like them and will not tolerate them. The people however, and there are a lot of them, are hungry for crypto and Chinese investors could spark the next big bull run.

Experts are predicting that cryptocurrencies are poised to continue higher in the fourth quarter of this year as investors shake off the collapses and sentiment of the first six months. These were the words of Sun Zeyu of Hong Kong based investment firm Genesis Capital in an interview with Tencent Technology according to Hacked.

Industry experts in the region have a strong belief that Chinese investors will have a big role in the ‘fifth wave’ of the market uptrend. This would result in a “crypto bull market may be far beyond our imagination” according to Gao Kangdi of Metropolis VC. All of this bullish sentiment comes despite the constant crackdowns by China’s draconian ruling party.

The reason could be massive inflows of capital from blockchain and crypto ecosystems already in place in friendlier nations like Singapore. The city state is now home to thousands of token investment fund foundations setup by Chinese nationals. Singapore has emerged as one of the more favourable nations for ICOs and regulators have lowered the requirements to setup blockchain based exchanges in the country.

China’s crypto analysts believe that growing global financial instability and the possibility of US incited trade wars in the region could be the catalyst for greater crypto investment. Bitcoin and cryptocurrencies are a natural alternatives to government regulated stocks and bonds since they are decentralized.

CEO of Noble Alternative Investments, Charles Thorngren, told Forbes that cryptos are attracting a new type of investor;

“The base of bitcoin has changed, in fact it has evolved, to a wider base of investors. People who have only invested in equities are now looking for options as the rumblings in the stock and bond market increase.This new investor helps to establish a stronger Bitcoin market and adds legitimacy to the Cryptocurrencies as a whole.”

Currently markets are down from their highs at the beginning of the year, however this cycle has been rinsed and repeated since Bitcoin’s inception almost a decade ago. If the Chinese crypto gurus are to be believe the next cycle is about to begin, and Asia will be leading the charge.

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