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Venezuelan Petro Against US Sanctions: History and Use of the Crypto

Venezuela is leading the crypto peer-to-peer BTC trade market, despite government efforts to drive adoption of its oil-backed cryptocurrency, Petro.

For the entirety of cryptocurrency’s short history, Venezuela has been seen to be among the most striking example of the need for the utility. The South American country has hosted escalating political tension for years, as skyrocketing hyperinflation, electricity blackouts and shortages of vital food and medicine intensified popular discontent.

Venezuelan trade volume dominates P2P markets

Venezuelan peer-to-peer (P2P) markets have long been a leader in terms of volume, in part owing to widespread geo-blocking that targets Venezuelan citizens on the part of cryptocurrency exchanges. Recently, Binance announced that as of July 1, 2019, the residents of Venezuela and 28 other countries will be restricted from accessing Binance’s decentralized exchange platform.

Venezuelan trade has consistently comprised the second-largest market on P2P Bitcoin marketplace Localbitcoins, trailing only behind Russia. During the week of July 13, 2019, approximately 5,012 BTC changed hands — equating to 49,248,298,468 Venezuelan bolivar (approximately $5 million).

LocalBitcoins Volume in Venezuela

Origins of Venezuela’s economic crisis

Following former President Hugo Chavez’s death in March 2013, Venezuela’s current president, Nicolas Maduro, was elected to power in April 2013. The Democratic Unity Roundtable, an electoral coalition of Venezuelan political parties opposed to the policies of the United Socialist Party of Venezuela, claimed that the election was fraudulent. However, the Supreme Court of Venezuela ruled Maduro to be the country’s legitimate president. During 2013, Venezuela’s annual inflation reached a 16-year-high of 56.2%. Since Maduro’s election, hundreds of thousands of Venezuelans have taken to the streets to protest corruption, hyperinflation, a scarcity of basic goods and violent coercion. 

Oil prices slump during 2014

From the start of 2014, the price of oil dropped roughly 60% from more than $100 per barrel. With crude oil equating to approximately 80% of Venezuelan exports, the plummeting price of oil drove the Venezuelan economy to enter a recession. 2015 saw Maduro’s United Socialist Party of Venezuela suffer defeat during parliamentary elections. However, Maduro vowed to “stop by hook or by crook the opposition coming to power, whatever the costs, in any way,” and replaced the country’s entire Supreme Court the following day. The following month, President Maduro consolidated executive control over all three branches of government amid decreeing a national “economic emergency,” effectively preventing the National Assembly from legislating.

During 2015, Venezuela experienced the highest rate of inflation in the world, with inflation exceeding 100% for the first time in the country’s history. The following year saw annual inflation reach 274%, while the price of consumer goods in Venezuela rose by 800%. A study published by Diario Las Americas approximated that more than 15% of Venezuelans were then regularly consuming food waste that had been discarded by commercial establishments.

During 2017, Venezuelan inflation was estimated to have skyrocketed to 2,000% annually. Victor Torres, a chauffeur living in the Venezuelan city of Maracaibo, articulated the ordeal of attempting to make basic purchases under conditions of extreme hyperinflation to The Telegraph, stating: “The other day I went to buy a banana. In the morning it cost 1,900 bolivares and in the afternoon, 3,000. You can’t live this way. I am disappointed with politicians.”

Petro implementation timeline

Venezuelan inflation climbs to 130,000% in 2019

Following Venezuela’s May 2018 election, Maduro claimed to have won 67.8% of the ballot. However, the result was challenged by the governments of Argentina, Chile, Colombia, Brazil, Canada, Germany, France and the United States — which described the election as failing to guarantee a free, fair and transparent democratic process, and subsequently moved to recognize Juan Guaido of the Popular Will party as the legitimate president of Venezuela. During October 2018, Venezuelan annual inflation was estimated to have reached 130,060%.

Since 2015, the United Nations estimates that 4 million Venezuelans have fled the country — roughly 12.5% of Venezuela’s current population.

Since the establishment of the Corruption Perceptions Index in 1995, Venezuela has been ranked among the world’s most corrupt regimes. In 2010, the index ranked Venezuela as the 164th-least transparent government of 178 nations, with Venezuela ranking 166th of 178 countries in 2016, and 168th of 180 nations in 2018. The World Justice Project also ranked Venezuela 99th out of 99 nations according to its 2014 Rule of Law Index, with the index currently ranking Venezuela 126th of 126 nations.

Economic sanctions

In addition to struggling to persevere the degrading economy and rampant political corruption, Venezuelan citizens also bear the brunt of sanctions imposed on the Latin American nation by the U.S. and other countries.

At the start of 2019, Alfred de Zayas, the first U.N. rapporteur to visit Venezuela for 21 years, described U.S.-imposed sanctions as comprising “economic warfare.” The special rapporteur recommended that the International Criminal Court investigate the sanctions maintained by the U.S. as potential crimes against humanity under Article 7 of the Rome Statute, arguing that the sanctions are illegal due to their lack of endorsement from the U.N. Security Council. He stated:

“Modern-day economic sanctions and blockades are comparable with medieval sieges of towns. Twenty-first-century sanctions attempt to bring not just a town, but sovereign countries to their knees.”

Zayas’ findings were based on his late-2017 mission to the country that saw the rapporteur interview government ministers, members of the country’s opposing parties, nongovernmental organizations (NGOs) operating in Venezuela, and local academics, activists and church officials. The criticisms of the economic sanctions have been echoed by numerous NGOs, with the president of Fundalatin, Eugenia Russian, stating:

“We consider that one of the fundamental causes of the economic crisis in the country is the effect that the unilateral coercive sanctions that are applied in the economy, especially by the government of the United States.”

President Donald Trump has recently threatened to intensify the sanctions currently imposed on Venezuela, stating that he will “continue to use the full weight of United States economic and diplomatic power to press for the restoration of Venezuelan democracy” while announcing support for the recognition of Guaido as the country’s legitimate leader in January.

Petro

In a bid to circumvent the economic sanctions imposed on Venezuela, Nicolas Maduro announced plans to launch a cryptocurrency backed by the nation’s oil, gasoline, gold and diamond reserves during December 2017. The president claimed that the digital currency, named Petro (PTR), would allow the country to access “new forms of international financing.”

At the start of January 2018, President Maduro ordered the issuance of the first 100 million Petros, announcing that each Petro will be pegged to the value of one barrel of Venezuelan oil — equating the cryptocurrency’s capitalization to roughly $5.9 billion. Several days later, the opposition-run National Assembly criticized Petro, calling the digital currency “null and void.” Parliamentary Deputy Jorge Millan described Petro as fraudulent, stating: “This is not a cryptocurrency, this is a forward sale of Venezuelan oil. It is tailor-made for corruption.” He went on:

“We find ourselves before a new kind of fraud, disguised as a solution the (financial) crisis. This incompetent government wants to compensate for lack of oil production with these virtual barrels.”

At the end of January 2018, Maduro announced that cryptocurrency mining was a “perfectly legal” activity. The president also announced that citizens targeted during the prior year’s police crackdown on mining operations would have any related charges dismissed. On Jan. 30, 2018, Maduro’s administration published the white paper for the cryptocurrency.

On Feb. 8, 2018, Jose Vielma Mora, Venezuela’s minister of foreign trade and international investment, told the state-sponsored news outlet TeleSur that foreign investors would be willing to conduct trade in exchange for Petro, claiming that Poland, Denmark, Honduras, Norway, Canada and Vietnam were among the trading partners preparing to accept the controversial cryptocurrency as a means of payment.

Venezuela launched the presale for Petro on Feb. 20, 2018. 82.4 million Petros were made available in exchange for select fiat currencies and cryptocurrencies. Three days later, Venezuelan media claimed that the presale had raised $1 billion. On Feb. 24, the Venezuelan government launched a free cryptocurrency training course aimed at improving digital currency literacy for ordinary citizens.

Trump administration bans U.S. citizens from purchasing Petro

On March 19, President Trump barred American citizens from purchasing Petro by executive order. At a G-20 meeting in Buenos Aires, U.S. Treasury Secretary Steven Mnuchin, stated:

“President Maduro decimated the Venezuelan economy and spurred a humanitarian crisis. Instead of correcting course to avoid further catastrophe, the Maduro regime is attempting to circumvent sanctions through the Petro digital currency — a ploy that Venezuela’s democratically-elected National Assembly has denounced and Treasury has cautioned U.S. persons to avoid.”

The U.S. Treasury Department described Petro as comprising an “attempt to prop up the Maduro regime, while further looting the resources of the Venezuelan people.” On March 27, Bitfinex announced that it would not support Petro in light of the U.S. sanctions against the cryptocurrency.

Venezuela promotes Petro adoption

During 2018, the Venezuelan government conceived several initiatives designed to bolster the adoption and perceived utility of Petro. In May 2018, Maduro announced the launch of a Petro-funded crypto bank that would support project proposals from the country’s youth. During July 2018, The Venezuelan minister of habitat and housing, Ildemaro Villarroel, announced a plan to fund the construction of houses for homeless citizens using the cryptocurrency. The following month, the president also announced that Petro would be used as a general unit of account in Venezuela, stating:

“As of next Monday, Venezuela will have a second accounting unit based on the price, the value of the Petro. It will be a second accounting unit of the Republic and will begin operations as a mandatory accounting unit of our PDVSA oil industry.”

Despite the announcements, during August 2018, Reuters reported that there was little indication of Petro’s presence in the oil-rich Venezuelan town of Atapirire. Despite comprising the sole town located in a region that the Venezuelan government estimates is home to 5 billion barrels of oil, Atapirire resident, Igdalia Diaz, told Reuters, “There is no sign of that Petro here.”

During the same month, the country’s former oil minister, Rafael Ramirez, estimated that Venezuela’s state-owned oil company did not possess the roughly $20 billion that he believed would be required in order to tap the nation’s oil reserves. Ramirez stated, “The Petro is being set at an arbitrary value, which only exists in the government’s imagination.”

Accusations of plagiarism

Ethereum Core developer Joey Zhou published a tweet on Oct. 2, 2018, asserting that the 11th page of Petro’s white paper contained an image plagiarized from the Github repository of Dash. Petro also opted to use the same X11 proof-of-work (PoW) mining algorithm as Dash. Zhou described Petro as comprising a “blatant Dash clone.”

On Oct. 5, 2018, Venezuelan Vice President Delcy Rodriguez announced that the fees for all passport applications would be exclusively payable in the form of Petro from Oct. 8 onward. The announcement was accompanied by a hike in the cost of passport applications, with new applications incurring a fee of 2 PTR and passport extensions priced at 1 PTR.

Venezuela launches Petro offering

Venezuela’s Ministry of Economy announced that Petro had been made available for purchase on Oct. 29, 2018. In an infographic published on Twitter, the token could be purchased from the Venezuelan Treasury from either the coin’s official website or from six government-authorized cryptocurrency exchanges: Bancar, Afx Trae, Cave Blockchain, Amberes Coin, Cryptia and Criptolago. The official Twitter account of the Petro indicated that investors were able to purchase the cryptocurrency using U.S. dollars, euros and Chinese yuan, in addition to Bitcoin, Litecoin, Ether and Dash. 

During November 2018, the National Assembly of Venezuela approved a bill containing new cryptocurrency regulation. The bill sought to legitimate Petro as a unit of commercial exchange within the country. The same month saw the National Assembly pass amendments to Anti-Money Laundering (AML) laws to pave the way for Venezuelan cryptocurrency exchanges to conduct foreign exchange operations using Petro.

Venezuelan government official Andres Eloy Mendez described the amendments as being intended to combat the “financial and commercial blockade” being maintained by the U.S. government, adding that the cryptocurrency would allow the evasion of sanctions and facilitate new transnational business relationships.

Venezuela raises bolivar-value of Petro

On Nov. 30, 2018, President Maduro announced that the fiat-value of Petro had been raised from 3,600 bolivars to 9,000 bolivars amid extreme inflation, alongside ordering an increase in the monthly minimum wage by 150% — the sixth wage hike of that year.

During December 2018, the Venezuelan government moved to automatically convert its pensioners’ monthly bonuses into Petro. According to Caracas Chronicles, pensioners’ government payouts were withdrawn and converted into Petro after initially being deposited into fiat accounts hosted by government web portal patria.org.ve on Dec. 7, 2018. 

On Dec. 28, 2018, Venezuela filed a consultation request with the World Trade Organization (WTO) making a complaint regarding the economic sanctions imposed by the U.S., describing five examples of “coercive trade-restrictive measures” that were imposed on the Bolivarian Republic of Venezuela. 

With regard to “transactions in Venezuelan digital currency,” the complaint alleged that U.S. sanctions violated the WTO’s General Agreement on Trade in Services by subjecting Venezuelan financial service suppliers to conditions “less favourable than that accorded to like services and service suppliers of WTO Member States not subject to the measures,” as well as conditions inferior to the treatment of “like domestic financial services and service suppliers.”

In February 2019, the Venezuelan government published a decree imposing regulations on cryptocurrency remittances within the country. The document revealed that the National Superintendency of Crypto Assets and Related Activities (SUNACRIP) would be responsible for taxation pertaining to cryptocurrency transactions. 

The new regulations established a monthly limit on cryptocurrency regulations and imposed a maximum fee of 15% on cryptocurrency transfers alongside a minimum fee of roughly $0.28. Remittances in the form of Petro were capped at 10 PTR per month (equating to approximately $600), however, individuals and entities will be permitted to conduct up to 50 Petros worth of monthly trade with SUNACRIP approval.

Petro-active

During March 2019, the United States Treasury Department added Moscow-based Evrofinance Mosnarbank to its sanctions list, accusing the financial institution of comprising the “primary international financial institution willing to finance” Petro. The department stated:

“This action demonstrates that the United States will take action against foreign financial institutions that sustain the illegitimate Maduro regime and contribute to the economic collapse and humanitarian crisis plaguing the people of Venezuela.”

In May 2019, Venezuelan U.N. delegate Geneva Jorge Valero stated that Russia and Venezuela were discussing utilities for Petro amid agreements to settle trade using the Russian ruble. On July 4, 2019, President Maduro ordered the country’s leading bank, Banco de Venezuela, to open “Petro desks” and accept PTR at all of its branches.

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Price Analysis 15/07: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, XLM

Can Bitcoin again lead the next leg of the recovery? Let’s look at the charts.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

The sharp recovery from the lows led by Bitcoin was largely based on the pretext that institutional players had finally started to take greater interest in the asset class. The sharp uptick in Bitcoin futures volumes and increased demand for Grayscale Bitcoin Trust shares was thought to be indicative of this. 

However, Binance’s chief executive Changpeng Zhao, in an interview with Bloomberg, said that there has been an equal growth in both institutional and retail trading. The retail traders still account for about 60% of trading volume at Binance, which shows that institutional trading growth “has not increased that tremendously in 2019 yet.”

Strong opposition to Facebook’s Libra project and negative tweets by United States President Donald Trump gave reasons for bulls to book profits. Though some major altcoins have corrected close to their yearly lows, Bitcoin is still holding well above it. Hence, we are viewing the current fall as a buying opportunity. Should traders buy now or wait for lower levels? Let’s analyze the charts.

BTC/USD

Bitcoin (BTC) broke below the symmetrical triangle on July 14, which is a bearish sign. The 20-day EMA is flattening out and the RSI is just below 50, which suggests a balance between buyers and sellers. 

BTC/USD

Currently, the BTC/USD pair is attempting to bounce off the 50-day SMA. The bulls will face stiff resistance at 20-day EMA but if they succeed in pushing the price above it, a rally to the resistance line of the triangle is probable.

However, if the price reverses direction from the 20-day EMA and plummets below the 50-day SMA, it can drop to $8,900 and if that level also breaks down, the next support is way lower at $7451.63. As the pair has been strong and is still quoting above its 50-day SMA, we remain bullish on it. However, we will wait for the price to show signs of a turnaround before recommending a long position in it.

ETH/USD

The bulls could not push Ether (ETH) above 50-day SMA on July 12. The price turned down sharply and broke below the next support of $224.086. Currently, the digital currency is attempting to bounce off the uptrend line. 

ETH/USD

The moving averages are on the verge of a bearish crossover, which shows that bears are back in the game. A breakdown of the uptrend line will be a negative sign that can result in a deeper correction to $160.

Conversely, if bulls succeed in sustaining the price above $224.086, it will indicate demand at lower levels. Any rally will face stiff resistance at the 20-day EMA. We will wait for the price to trade above $224.086 for a few days before suggesting a long position in it.

XRP/USD

Ripple (XRP) has been among the worst-performing major cryptocurrencies. It did not participate in the recovery and has fallen sharply when the sentiment turned negative. The next supports on the downside are at $0.27795 and below it at the yearly low of $0.24508. 

XRP/USD

Both the moving averages have turned down and the RSI is close to oversold territory. This suggests that the bears are in command. A breakdown to new yearly lows will be a huge negative for the cryptocurrency.

However, the XRP/USD pair has not closed (UTC time frame) below $0.27795 since mid-December last year. Hence, we anticipate buying close to the support. Any attempt to recover will face stiff resistance at the 20-day EMA. We will wait for buyers interest to return in the pair before recommending a trade in it.

LTC/USD

Litecoin (LTC) has broken down of the ascending channel. It is currently bouncing off the next support of $83.65. The 20-day EMA is sloping down and the RSI is in oversold territory, which suggests bears are in the driver’s seat. If the digital currency breaks down of $83.65, it can drop to $66.

LTC/USD

Conversely, if the LTC/USD pair bounces off $83.650 and re-enters the channel, it will be a positive sign. Any recovery will face selling at the 20-day EMA. We will wait for the price to sustain inside the channel before suggesting a trade in it.

BCH/USD

Bitcoin Cash (BCH) is in a downtrend. It is trading inside a descending channel. The 20-day EMA is sloping down and the RSI is close to oversold territory, which suggests the bears are in command. 

BCH/USD

The bulls are currently attempting to keep the BCH/USD pair inside the channel. If successful, the price can move up to the resistance line of the channel. A breakout of the channel will be the first sign of a trend change. However, if the price breaks down of the channel, the next support is at $227.70. If this support also cracks, the correction can reach $166.98. 

EOS/USD

EOS plunged below the first support of $4.4930 on July 14 and has bounced off the support at $3.8723. Both the moving averages have turned down and the RSI has dipped into the oversold zone, which shows that sellers have the advantage. 

EOS/USD

If $3.8723 fails to provide support, the next stop might be $3. On the other hand, if the EOS/USD pair bounces off $3.8723, it can move up to 20-day EMA, which is likely to act as a stiff resistance. If the next pullback to $3.8723 holds, we might suggest a trade in it. Until then, we remain neutral on the cryptocurrency. 

BNB/USD

The pullback in Binance Coin (BNB) reversed direction from the 20-day EMA and broke below the critical support of $28.7168. Currently, bulls are attempting to hold the uptrend line. Both the moving averages have completed a bearish crossover for the first time in 2019. This signals a likely change in trend. 

BNB/USD

If the BNB/USD pair breaks down of the uptrend line and the descending channel, it will turn negative and can drop to the next support at $18.30. Conversely, if bulls defend the uptrend line, it will try to move up to the resistance line of the descending channel. A breakout of the moving averages will indicate strength. Though it has been one of the outperformers, we will wait for it to resume its up-move before proposing a trade in it.

BSV/USD

Bitcoin SV (BSV) broke below the descending channel and the critical support of $134.360 on July 14. When the price easily breaks through important support levels, it shows that sellers are in a hurry to get out and buyers are not willing to step in. This is a bearish sign. 

BSV/USD

Both moving averages have completed a bearish crossover and the RSI has dipped into oversold territory. This shows that bears are in command. 

There is a minor psychological support at $100 and below that at $93.680, which is the 78.6% Fibonacci retracement of the rally. If both these supports give way, the BSV/USD pair can plummet to $50.030, a full 100% retracement of the rally. Any attempt to recover will face resistance at the 20-day EMA, which is sloping down. 

TRX/USD

Tron (TRX) plunged below the trendline of the ascending channel on July 14. This is a bearish sign because this is the first instance when price has broken down of the trendline since the end of November last year. The 20-day EMA is sloping down and the RSI has dropped close to the oversold zone. This suggests bears are in command. 

TRX/USD

The next support is at $0.022 and if that breaks, the fall can extend to $0.017. However, before that, we expect a retest of the breakdown level. If the bulls can push the price back inside the channel, the current breakdown will be considered as a bear trap. Nevertheless, if the price fails to stay inside the channel and turns down, it will confirm a downtrend. We will get a clear picture within the next few days. Until then, we suggest traders remain on the sidelines.

XLM/USD

Stellar (XLM) dipped below $0.085 but found support closer to $0.080. Hence, it might remain range-bound between $0.08 and $0.145. Both the moving averages are sloping down and the RSI is close to the oversold zone. This shows that bears have the upper hand. 

XLM/USD

If the XLM/USD pair plunges below $0.080, it can retest the lows at $0.072545. A breakdown to new yearly lows will be very negative. However, with the $0.080–$0.085 support zone holding, bulls will try to keep the pair inside the range. The first resistance on the upside is at the 20-day EMA. A breakout of it will be a sign that the bulls are back in the game. Therefore, we suggest traders wait for the price to bounce off the support and rise above 20-day EMA before initiating a long position.

Market data is provided by the HitBTC exchange.

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Critics: Altcoins Like Litecoin Resorting To Marketing Than Developing Products

Marketing Litecoin Tron

Currently, Coinmarketcap, a cryptocurrency aggregation platform, lists over 2000 active cryptocurrencies. However, being active doesn’t translate to being valuable. As one critic notes, the high number of cryptocurrencies being developed has pushed developers to pull marketing stunts to keep them afloat.

On Reddit, the critic cited Litecoin (LTC) as one such altcoin with no compelling product.

“Miami Dolphins announced that LTC is their official cryptocurrency. It seems like the coin itself does not have a really good use in the future ecosystem, so the LTC Foundation has directed its attention to marketing as opposed to developing a useful product. Seems like the Richard Heart strategy is their hailmary. We don’t have a product that sells itself, so let’s just market the hell out of it and hope it catches some ignorant eyes.”

Since Bitcoin Is Gold, Litecoin Is
Silver

As part of Litecoin marketing, its co-founder, Charlie Lee, branded it as silver to contrast Bitcoin’s digital gold status. According to keen cryptocurrency enthusiasts, Lee flaunting Litecoin as silver was to sway investors to think that “silver is a precious metal worth own.”

Litecoin has been at the center of the marketing claims for some time now. It has almost the same code as Bitcoin with only a few changes. Additionally, the Litecoin community was virtually dead until the coin was listed on Coinbase. That’s besides non-development in the better half of 2018 as per GitHub commits.

Interestingly, the founder of Litecoin may have influenced the listing since he was an employee at Coinbase. The coin even implemented a Segwit upgrade which was seen as a marketing stunt since the platform had not exceeded its 4MB block size.

Immediately Litecoin was listed, Lee resigned from Coinbase to “focus on Litecoin.” After rallying investors, the price went up, and Lee liquidated all his Litecoins at $370, which was an over 9,000 percent increase.

In what seems suspicious, it’s after the LTC
spiked to an all-time high that Lee realized there was a conflict of interest.
Lee said:

“Some people think that I short LTC! So in a sense, it is a conflict of interest for me to hold LTC and tweet about it because I have so much influence…For this reason, in the past days, I have sold and donated all my LTC. Litecoin has been very good for me financially, so I am well off enough that I no longer need to tie my financial success to Litecoin’s success.”

Tron is on the same path

Unfortunately, Litecoin is not the only crypto
project that has pulled marketing stunts in the past. Tron has also been on the
same path.

In April, Justin Sun, the founder of Tron, announced that Tron would be signing a partnership with Liverpool Football Club.

In a tweet, Sun said:

“Thank you for the unique and innovative invitation, Liverpool! I am impressed, and I’m looking forward to exploring this Tron new partnership together.”

However, it later turned out that Liverpool
had no plans of partnering with Tron and Sun’s partnership rumors didn’t have a
solid base.

According to reports from Decrypt, Liverpool’s
spokesperson said:

“Liverpool Football Club has confirmed that it does not have a partnership with Tron. We regularly engage with lots of companies to better understand their business and we have extended an invitation to Tron—along with many others. To be clear, no discussions have taken place.”

But, Liverpool’s response was too late since
Tron diehards were already buying the rumor and probably filling up their bags.
As developers continue to develop coins with similar utility, marketing, or PR
stunts is the only way to keep their communities engaged and the coins afloat.

The post Critics: Altcoins Like Litecoin Resorting To Marketing Than Developing Products appeared first on Ethereum World News.

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Price Analysis 12/07: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, XLM

Bitcoin has risen after Trump’s negative tweets. Can it continue its move up or will it reverse direction? Let’s look at the charts.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

United States President Donald Trump bashed both Facebook’s Libra and Bitcoin in a series of tweets on July 11. However, the interesting thing is that unlike the U.S. stock markets, which respond sharply to Trump’s tweets, the crypto universe was unaffected. 

Many believe that the statement from Trump is a strong positive. According to them, it gave free publicity and also underlined the importance of cryptocurrencies. Coinbase CEO Brian Armstrong considered it an achievement and said that it showed how cryptocurrencies were resilient and refused to be brought down even by global powers.

While testifying before the Senate Banking Committee, Federal Reserve Chairman Jerome Powell said that cryptocurrencies were created to replace reserve currencies, but that has not happened yet. He said that Bitcoin was “a speculative store of value like gold.” 

On the other hand, Bank of England governor Mark Carney recognized the issues Facebook’s Libra is trying to address and also outlined the difficulties the project might face. Billionaire entrepreneur Mark Cuban, however, did not have much positive to say about Libra, calling it a “big mistake.” 

BTC/USD

Bitcoin (BTC) has formed a symmetrical triangle, which usually acts as a continuation pattern. It is currently attempting to take support at the 20-day EMA. If the support holds, the bulls will attempt to break out of the triangle. On a close (UTC time frame) above the triangle, the cryptocurrency can rally to $17,852.50. 

BTC/USD

On the other hand, if the BTC/USD pair breaks down of the symmetrical triangle, it can plunge to $6,047.50. However, it is unlikely to be a straight fall because there is strong support at $10,934.45 and below it at the 50-day SMA. A breakdown of the 50-day SMA will signal a deeper correction.

Currently, the 20-day EMA has flattened out and the RSI is just above 50. This points to consolidation for the next few days. We will suggest a long position after a breakout from the triangle.

ETH/USD

Ether (ETH) broke down and closed (UTC time frame) below the 50-day SMA on July 11, which is a bearish sign. The bulls are currently attempting to rise back above the 50-day SMA. A breakout of the moving averages can result in a rally to $320.840. 

ETH/USD

Conversely, if the ETH/USD pair reverses direction from the 50-day SMA or the 20-day EMA, it can correct to the next support at $226.58. The 20-day EMA has started to turn down and the RSI has dipped into negative territory. This suggests bears have an advantage. We will wait for the correction to end before recommending a trade in it.

XRP/USD

Ripple (XRP) has broken down of the critical support of $0.35660. This is a bearish sign. The next support is at $0.27795. The 20-day EMA is sloping down and the RSI is in the negative zone, which suggests bears are in command. 

XRP/USD

The XRP/USD pair is among the weakest major cryptocurrencies because it has quickly given back all the gains of the recent recovery. This shows a lack of buyers at higher levels. The bulls will now try to push the price above the $0.35560–$0.37835 resistance zone. If successful, the pair might enter a range. However, if the price turns down from the overhead resistance, we can expect a deeper correction. 

LTC/USD

Litecoin (LTC) is attempting to hold the support line of the ascending channel. Both the moving averages have completed a bearish crossover and the RSI is close to the oversold zone, which shows that bears have the upper hand.

LTC/USD

If the recovery stalls at $111.8994 or close to the 20-day EMA, bears will attempt to sink the LTC/USD pair below the support line of the channel. If successful, the next support is way lower at $66.

On the other hand, if bulls scale the pair above the moving averages, a rally to $140.3450 and above it to the resistance line of the channel is likely. We will wait for bulls to ascertain their supremacy before proposing a trade.

BCH/USD

Bitcoin Cash (BCH) plunged below the support line of the channel on July 11. This is a bearish sign. The moving averages have also completed a bearish crossover and the RSI is near the oversold territory, which suggests that the bears have the upper hand.

BCH/USD

We now expect bulls to attempt to push the price back into the channel. If the price rises above the moving averages, it will show that the current fall was a bear trap. However, if the price fails to rise into the channel, the BCH/USD pair is likely to correct to $280. If this support also cracks, the next level to watch on the downside is $227.70. 

EOS/USD

EOS is attempting to hold the $4.4930–$3.8723 support zone. It is currently trading inside a descending channel. The 20-day EMA is sloping down and the RSI is close to the oversold zone, which suggests that the bears have the upper hand.  

EOS/USD

A bounce from the current levels is likely to face resistance at the 20-day EMA. If that level is scaled, it can move up to the resistance line of the descending channel. Contrary to our assumption, if the bears sink the EOS/USD pair below the support zone, it can drop to $2.20. 

BNB/USD

Binance Coin (BNB) has bounced off the critical support at $28.7168. This is a positive sign as it shows that bulls are keen to buy at strong supports. The pullback will face resistance at the moving averages. 

BNB/USD

A breakout and close (UTC time frame) above the moving averages can carry the BNB/USD pair to lifetime highs. However, both the moving averages have completed a bearish crossover for the first time this year, which is a negative sign. 

If the pair fails to make a new high and reverses direction, it is at risk of forming a head and shoulders pattern that will complete on a breakdown and close (UTC time frame) below $28.7168. Hence, we will watch the price action for the next few days before suggesting a long position in it.

BSV/USD

Bitcoin SV (BSV) plunged below the first support of $172.910 on July 11. The price is currently attempting to take support closer to $152.015, which is the 50% retracement level of the recent rally. If the price bounces off the support, it will attempt to climb back above $172.910. Above this level, it might reach the resistance line of the descending channel. 

BSV/USD

Both moving averages are on the verge of completing a bearish crossover, which suggests bears are back in action. If the support at $152.015 cracks, the next support is way lower at $134.360. We will wait for the price to stop falling and signal a turnaround before suggesting a trade in it.

TRX/USD

Tron (TRX) held the trendline of the ascending channel on July 11 and is currently attempting to bounce off it, which is a positive sign. During previous instances, the digital currency stayed near the trendline for a few days before starting a move upwards, hence, we will watch for a couple of days before proposing a trade in it.  

TRX/USD

The recovery will face resistance at the 20-day EMA and above it at the downtrend line. If the TRX/USD pair breaks out of these resistances, it can rally to $0.040 and above it to the resistance line of the channel.

Our bullish view will be invalidated if the price turns down from the overhead resistance and plummets below the trendline of the channel. In such a case, a drop to $0.022 and below it to $0.017 is possible. 

XLM/USD

Stellar (XLM) has again made it to the top 10 cryptocurrencies by market capitalization, hence, it finds a place in our analysis. It is currently range-bound between $0.085 and $0.1450. The bounce from the bottom of the range will find stiff resistance at the 20-day EMA.

XLM/USD

A breakout of 20-day EMA will be the first indication that sellers are losing their grip on the XLM/USD pair. We will wait for the price to sustain above 20-day EMA before suggesting a trade in it.

Contrary to our expectation, if the pair turns down from the 20-day EMA, bears will again attempt to sink it below $0.085. If successful, a retest of the lows is probable. 

Market data is provided by the HitBTC exchange.

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BTC and LTC Halving ‘Shock’ May Be Mitigated by Merged Mining: Report

Block reward halving “shock” at Bitcoin and Litecoin could be mitigated by merged mining, according to Binance Research.

The effect of block reward halvings for both Bitcoin (BTC) and Litecoin (BTC) mining could be mitigated by merged mining, according to a report by a research arm of major crypto exchange Binance released on July 12.

Following Charlie Lee’s prediction that some miners may shut down Litecoin mining after the halving, which is expected to take place on Aug. 5, 2019, Binance Research analyzed the potential of so-called merged mining to retain incentives for crypto miners.

Merged mining is a practice of using the work done for one blockchain, or parent blockchain, on other smaller child blockchains by implementing Auxiliary Proof of Work (AuxPoW). To date, there are three major examples of merged mining, including Bitcoin blockchain-parented Namecoin (NMC), Litecoin-merged Dogecoin (DOGE), and Myriadcoin (XMY) which is merged with both LTC and BTC.

In the new report, Binance Research concluded that merged mining could “potentially provide and opportunity” to increase mining rewards in the light of future block reward halving scheduled for both Litecoin and Bitcoin. Alongside, other smaller chains could also potentially move to AuxPoW in order to support a higher level of network security while reducing the need for a separate mining set, the firm added.

At the same time, Binance Research warned about the potential shortcomings of merged mining from both a miner’s and a project team’s perspectives. Miners may not be incentivized to support child blockchains due to a significant level of operations costs as well as a potential decline in the given coin’s market price.

From the perspective of a project team working on a PoW crypto-asset, risks include dependency on the parent blockchain and new potential attack vectors.

In the report, Binance Research also considered Dogecoin, which has been operating for about six years to date, as the most successful example of merged mining. After Dogecoin adopted the merged mining model in August 2014, the coin’s mining hashrate increased by 1,500% while also showing correlation with Litecoin’s hash rate. According to the report, almost 90% of Dogecoin’s total hash rate derives from large Litecoin mining pools as of July 2019.

On July 5, Binance exchange listed Dogecoin on its crypto trading platform. On the same day, the exchange released its “2019 Q2 Crypto-Correlations Review,” stating that Dogecoin has become less correlated with other cryptos in Q2 2019, alongside with Bitcoin. However, the coin has continued to be significantly correlated with Litecoin, mostly due to the shared mining of two coins, the firm wrote.

On July 9, mining difficulty of bitcoin has reached a new all-time high by hitting a 9.06 trillion at an average hash rate of 64.85 quintillions per second (EH/s).

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Miami Dolphins to Endorse Litecoin as Team’s Official Cryptocurrency

The Miami Dolphins have partnered with Litecoin to support the altcoin as the team’s official cryptocurrency.

American professional football team the Miami Dolphins announced that Litecoin (LTC) is now the team’s official cryptocurrency, according to a press release on July 11.

The Miami Dolphins and Litecoin have also partnered with Aliant Payments, a crypto merchant services and payment processing firm, to enable crypto payments for the team’s upcoming 50/50 raffle, which reportedly donates half of its revenue to charity.

Cryptocurrency users will reportedly be able to buy raffle tickets with LTC and Bitcoin (BTC), and can do so online or via in-stadium kiosks at Hard Rock Stadium.

LTC and BTC are cryptocurrencies with similar technical underpinnings. Bitcoin remains the number one cryptocurrency by market cap with a total MC of over $201 billion at press time, while Litecoin clocks in at fourth with a cap of over $6.37 billion, according to data provided by Coin360.

In addition to playing a role in the aforementioned raffle, Litecoin will reportedly be appear in Dolphins in-game branding and an array of advertisement opportunities.

Charlie Lee, the creator of Litecoin and managing director of the Litecoin Foundation, hopes to use this partnership as a way to educate the public on LTC and cryptocurrencies in general:

“This collaboration propels Litecoin in front of an audience of millions of people around the world at a time where adoption of cryptocurrencies continues to gain momentum and the ecosystem is able to support real world use cases in ways previously not possible. We see this as a powerful way to raise awareness and educate people about Litecoin and cryptocurrencies on a tremendous scale.”

As previously reported by Cointelegraph, Portuguese sports club SL Benfica opened up payments via cryptocurrency for tickets and merchandise in June. The club partnered with cryptocurrency service Utrust to facilitate this new payment option. SL Benfica now accepts Utrust’s native token (UTK) as well as BTC and Ether (ETH) as payment options.

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Price Analysis 10/07: BTC, ETH, XRP, BCH, LTC, EOS, BNB, BSV, TRX, ADA

Bitcoin is facing profit booking at higher levels. Is this a warning sign of an impending correction? Let’s study the charts.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

CEO of BitMEX Arthur Hayes believes that Facebook’s Libra could make central and commercial banks irrelevant. It will be interesting to note whether this will force the commercial banks to walk down the crypto path. Investment banking giant Goldman Sachs certainly seems to be taking the first step. It has advertised a position for Digital Asset Project Manager, which points to the bank’s intention to pursue digital asset development.

Responding to a query on Twitter, the European Central Bank said that Bitcoin is “not a currency.” It termed Bitcoin as a volatile asset and denied that it had any plans to add it in its reserves

However, fund managers and investors view Bitcoin differently. Chamath Palihapitiya, CEO of VC firm Social Capital believes that the leading digital currency is the best hedge against the traditional financial system. With risks of a recession rising, will Bitcoin continue its march northward? Let’s analyze the charts.

BTC/USD

Bitcoin (BTC) easily broke out of the $12,000–$12,500 resistance zone earlier today but did not manage to sustain above it. This shows profit booking at higher levels. If bulls fail to return the price above the resistance zone, the cryptocurrency might enter into a range.

BTC/USD

Both the moving averages are sloping up and the RSI is close to the overbought level, which suggests that bulls have the upper hand. If the BTC/USD pair slips below $12,000, the first support on the downside is at 20-day EMA. If the pair bounces off this support, the bulls will again attempt to rise above the recent highs of $13,973.50. Above this level, the target to watch is $16,249.42.

Contrary to our assumption, if the pair breaks down of the 20-day EMA, a drop to the recent low of $9,727.55 is possible. The trend will turn down on a break below this support.

ETH/USD

Ether (ETH) faced resistance close to $320.840 before heading south. The failure to propel the price above the overhead resistance resulted in profit booking. The bears have broken down of 20-day EMA and the price is likely to drop to the support at 50-day SMA.

ETH/USD

A breakdown of the 50-day SMA will signal weakness because the ETH/USD pair has not broken below this support since February 18. Below $270, the correction can extend to $226.538.

Both the moving averages are flattening out, which points to range-bound trading in the near term. If the pair bounces off the 50-day SMA, it can consolidate between $270 and $320.840. We withdraw our buy recommendation given in the previous analysis. We will wait for the price to sustain above $320.840 before suggesting a trade once again.

XRP/USD

Ripple (XRP) turned down from the 20-day EMA on July 9 and has plummeted below the first support of $0.37835. The bulls are currently attempting to defend the support at $0.35660. A breakdown and close (UTC time frame) below this support will indicate weakness and can result in a fall to $0.27795, which is a negative sign. The 20-day EMA is sloping down and the RSI is in negative territory, which shows that bears are in command.

XRP/USD

However, if the XRP/USD pair rebounds from $0.35660, it can move up to the moving averages. A breakout of $0.415 can propel it to the critical resistance of $0.45. The pair has repeatedly failed to break out of $0.45. Therefore, we will wait for it to sustain above $0.45 before turning positive. 

BCH/USD

Our buy recommendation in Bitcoin Cash (BCH) did not trigger as it could not close (UTC time frame) above $423. The price has turned down from the moving averages and is at the support line of the channel. This is a critical support below which the trend will turn in favor of bears.

BCH/USD

If the BCH/USD pair breaks down and closes (UTC time frame) below the support line of the channel, it can fall to $280. Both the moving averages are close to completing a bearish crossover, which suggests that bears are back in the game.

Contrary to our assumption, if the bulls defend the support line of the channel, the pair might move up to the moving averages, above which a rally to $450 is probable. We will watch the price action closer to the support line of the channel before proposing a trade in it.

LTC/USD

Litecoin (LTC) turned down from the 20-day EMA on July 9 and has plunged below the support at $111.8994. This is a negative sign. It now can correct to the support line of the ascending channel, which is the critical support to watch out for. The moving averages are close to completing a bearish crossover, which indicates that bears have the upper hand. A breakdown of the channel can drag the price to the $66–$71 support zone.

LTC/USD

However, if the LTC/USD pair holds above the support line of the ascending channel, the bulls will attempt to push it above the previous support-turned-resistance of $111.8994. If successful, it can move up to the moving averages where it is likely to face resistance. The pair will indicate strength if it sustains above the 20-day EMA. We will watch the price action at the support line of the channel before recommending a trade in it.

EOS/USD

The failure of EOS to rise above the 20-day EMA has attracted selling. It has resulted in a breakdown of the immediate support at $5.550, which is a bearish sign. The next support on the downside is $4.4930. We anticipate strong buying in $4.4930–$3.8723 zone.

EOS/USD

The 20-day EMA is sloping down and the RSI continues to trade in the negative territory, which shows that bears have the upper hand. Any pullback will find stiff resistance at the 20-day EMA. We will wait for the correction to end and for a new buy setup to form before suggesting a trade in the EOS/USD pair.

BNB/USD

Our buy suggested for Binance Coin (BNB) in our previous analysis did not trigger as the price turned down from $34.2918 on July 8. The bears will now attempt to sink the price back to the critical support of $28.7168. The uptrend line is just below it, hence, we expect buyers to step in close to the support. 

BNB/USD

However, if the BNB/USD pair plummets below the uptrend line, it will signal weakness and a change in trend. The next support on the downside is closer to $20. Both the moving averages are on the verge of completing a bearish crossover, which is a negative sign. The pair has been one of the strongest among major cryptocurrencies as it has repeatedly made new lifetime highs. When the leader starts showing weakness, it does not bode well for the rest of the pack. 

BSV/USD

Bitcoin SV (BSV) rose above 20-day EMA on July 9 but bulls could not sustain the higher levels, which shows lack of buying interest. The 20-day EMA is flat and the RSI is in the negative zone. This points to a range-bound action in the near term. 

BSV/USD

The balance will tilt in favor of bears if the BSV/USD pair slumps below the support of $172.910. The next support on the downside is way lower at $134.360. However, if the bulls defend the support at $134.360, the pair might attempt to scale above the moving averages and remain in a range. We will watch the price action at $172.910 and then make a call. Until then, we remain neutral on the cryptocurrency.

TRX/USD

The pullback above the 20-day EMA hit a wall close to $0.03550 on July 7 and 8 and turned down from there. For the past two days, bulls attempted to keep Tron (TRX) above the 20-day EMA but a failure to secure a strong bounce attracted selling.

TRX/USD

The next support on the downside is at $0.030 below which the fall can extend to the trendline of the ascending channel. The TRX/USD pair has been trading inside the channel since end-November last year, hence, we anticipate strong support at the trendline of the channel. We will wait for the price to rebound off the support before suggesting a long position. 

ADA/USD

The pullback attempt in Cardano (ADA) fizzled out just below the 20-day EMA on July 8. Currently, the price has nearly broken down of the $0.077–$0.073 support zone. The next support on the downside is at $0.06. The 20-day EMA is sloping down and the RSI is in the negative zone, which shows that bears have the upper hand. 

ADA/USD

The failure of bulls to defend the support zone indicates weakness. If the next support at $0.060 also cracks, the ADA/USD pair might give up a large part of its recent gains. However, if the bulls defend the support at $0.060, the pair might consolidate in a large range for a few days. We will wait for the price to stop falling and a new buy setup to form before proposing a trade in it.

Market data is provided by the HitBTC exchange.

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Charlie Lee: Next Month’s Halving Will Be a ‘Shock’ to Litecoin Mining

Litecoin creator Charlie Lee has predicted that miners may shut up shop after the coin’s forthcoming halving this summer.

Litecoin (LTC) creator Charlie Lee has predicted that miners may shut up shop after the coin’s upcoming halving this summer. 

In an interview with Australian crypto news site Mickey on July 10, Lee reflected on the possible implications for litecoin’s mining ecosystem when the planned halving kicks in and current block rewards on the network are reduced by 50%. “It’s always kind of a shock to the system,” he said, explaining: 

“When the mining rewards get cut in half, some miners will not be profitable and they will shut off their machine. If a big percentage does that, then blocks will slow down for some time. For litecoin it’s three and a half days before the next change, so possibly like seven days of slower blocks, and then after that, the difficulty will readjust and everything will be fine.”

Given that the reduction of mining rewards reduces the cryptocurrency’s supply, anticipation of the halving is generally thought to be accompanied by a corresponding price appreciation — but Lee gave a more nuanced perspective of how supply, demand and market sentiment interrelate:

“In terms of the price, the halvening should be priced in because everyone knows about it since the beginning. But the thing is people kind of expect the price to go up. So a lot of people are buying in because they expect the price to go up and that’s kind of a self-fulfilling prophecy. So, because they’re buying in, the price does actually go up.”

As Mickey notes, litecoin’s last halving — back in August 2015 — saw the coin peaking in early July of that year, going on to lose almost 50% in value by the time of the block rewards reduction — and hitting a 75% in the halving’s aftermath.

To press time, litecoin is reporting an almost 36% gain on its 3-month chart, but remains almost 67% down from its all-time highs in December 2017, according to Coin360 data

LTC 3-month price chart

LTC 3-month price chart. Source: Coin360

Meanwhile, Anthony “Pomp” Pompliano — the co-founder of crypto asset management firm Morgan Creek Digital Assets — has recently predicted that one of the largest drivers of continued price appreciation for top crypto bitcoin (BTC) will be its halving, citing classic supply-demand economics as a major contributing factor to his $100,000 forecast by the end of 2021. 

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Price Analysis 08/07: BTC, ETH, XRP, LTC, BCH, EOS, BNB, BSV, TRX, ADA

Bitcoin’s rally continues to attract traditional investors. Will their entry propel the price to new highs? Let’s study the charts.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Market data is provided by the HitBTC exchange.

The bitcoin price surged more than $435 in a matter of 10 minutes early Monday morning (UTC time), likely due to short sellers covering their positions. The resilience of the leading digital currency and the sharp recovery in prices has forced Mark Mobius, founder of Mobius Capital Partners LLP, to change his earlier negative view on bitcoin. Though he does not own bitcoin, he said that if it continued to grow, he might have to add it to his portfolio.

Deutsche Bank has announced that it will shut down its equities sales and trading business and also cut back its fixed income business. This will lead to 18,000 job cuts. Analysts have pointed out that one of the reasons for this move is the ultra-loose monetary policy adopted by the central banks. However, money printing will benefit cryptocurrencies and bitcoin in particular as it has a fixed supply that cannot be altered. What do major cryptocurrency charts project? Let’s analyze the charts and find out. 

BTC/USD

Bitcoin (BTC) has rebounded off the 20-day EMA and the bulls are currently attempting to scale above the $12,000–$12,500 resistance zone. A breakout of this zone can retest the recent highs of $13,973.50. We anticipate stiff resistance at this level but if the momentum can break through it, short sellers will be forced to throw in the towel, which can propel the price to $16,249.42. Above this, a retest of the lifetime highs will be in the cards.

Both moving averages are sloping up and the RSI is in positive territory. This suggests that the bulls still hold the advantage in the short term. 

BTC/USD

However, if bears defend the overhead resistance zone, the BTC/USD pair might again dip back to 20-day EMA. A break of this support can drag the price to the 50-day SMA. We anticipate this support to hold and it can act as a good entry point for the traders. 

We suggest traders wait for the price to rebound off the supports before buying, because if 50-day SMA fails to hold, traders will be forced to liquidate their long positions. Nonetheless, with the bear market having ended, traders should view dips as a buying opportunity.

ETH/USD

Ether (ETH) has bounced back above the 20-day EMA, which is a positive sign. We like the way bulls have managed to keep the price above the 50-day SMA during this pullback. It shows that buyers are not waiting for a deeper correction to enter long positions.

ETH/USD

The bulls might face resistance at $320.840 and above it at $366. However, if the price breaks out and closes (UTC time frame) above $320.840, we suggest traders buy 40% of the desired position size. A stop loss for the trade can be kept at $270. Remaining positions can be added on a breakout above $366. 

We are recommending long positions on a breakout above $320.840 because the ETH/USD pair will complete a rounding bottom pattern that has a target objective of $557.43. There is stiff resistance close to $500, hence, we will keep it as our initial target. Our bullish view will be invalidated if the pair reverses direction from the overhead resistance and slumps below $270. 

XRP/USD

Ripple (XRP) has held the first support of $0.37835. However, the subsequent bounce off the support could not break out of 20-day EMA on July 6. This shows selling at higher levels. The moving averages have completed a bearish crossover and the RSI is in the negative zone. This suggests that bears have the upper hand.  

XRP/USD

Currently, bulls are again attempting to push the price above the moving averages. If successful, the XRP/USD pair can move up to $0.45. However, if the bulls fail to propel the price above the moving averages, bears will try to sink the pair below $0.37835. If this support gives way, the next support is $0.35660. As the cryptocurrency has not participated in the recent recovery, we will wait for it to pick up momentum before suggesting a trade in it.

LTC/USD

Litecoin (LTC) has been trading in a tight range for the past three days. The bulls are attempting to keep the price above the 50-day SMA. If this support breaks down, the pullback can extend to $111.8994. This is a critical support, below which, the fall can extend to the support line of the ascending channel.  

LTC/USD

Both the moving averages are flattening out and the RSI is just below 50, which suggests a consolidation in the short term. We will wait for the price to bounce strongly either from $111.8994 or from the support line of the channel before recommending a trade.

Contrary to our assumption, if the bulls ascend the moving averages, a rally to $140.3450 is likely. The LTC/USD pair will pick up momentum on a breakout and close above $146.

BCH/USD

Though Bitcoin cash (BCH) has traded below the 20-day EMA for the past seven days, bears have not been able to take advantage of the weakness and sink the price to the support line of the channel. This shows a lack of sellers at lower levels. 

BCH/USD

We now expect bulls to attempt to push the price above the moving averages. If successful, a move to $448 and above it to $515 is possible. Hence, short-term traders can buy on a close (UTC time frame) above $423 and keep the stop loss at $375, which is below the recent lows. A breakdown below $375 will invalidate our bullish view, as it can result in a drop to $280. 

EOS/USD

Though bulls have held the support at $5.550, they have failed to propel EOS above 20-day EMA and into the channel. If the cryptocurrency re-enters the channel, it will be a bullish sign. We might suggest long positions if the price sustains inside the channel for a couple of days. The bulls might face resistance at the downtrend line, but once it is scaled, it can move to $7.6435 and above it to $8.60.

EOS/USD

Conversely, if the price reverses direction from the current levels or from the 20-day EMA and breaks below $5.550, it can correct to $4.4930. With the 20-day EMA sloping down and RSI in the negative zone, the path of least resistance is to the downside.

BNB/USD

After staying below the 20-day EMA for the past seven days, Binance Coin (BNB) is attempting to rise above it. If bulls can sustain the price above $34.50, it is likely to move up to $40 once again. A breakout and close (UTC time frame) above $40 will resume the uptrend.

BNB/USD

Conversely, if bulls fail to sustain the price above $34.50, bears will again try to sink it to $28.7168. The zone between the uptrend line and $28.7168 is likely to offer strong support. Hence, we might suggest long positions closer to the uptrend line because the long-term trend remains bullish. Our positive view will be negated if the BNB/USD pair breaks down and sustains below the uptrend line. If that happens, the slide can extend to $18.

BSV/USD

Bitcoin SV (BSV) has been struggling to move above 20-day EMA for the past five days, which is a negative sign. It shows a lack of demand at higher levels. The 20-day EMA is sloping down marginally and the RSI is just below 50, which suggests rangе-bound action in the short term.  

BSV/USD

The support of the range is at $172.910 while resistance is at $226 and above it at $255.620. After such a sharp move, a consolidation is a positive sign. If the consolidation resolves to the upside, the BSV/USD pair will pick up momentum and resume its uptrend. On the other hand, if bears sink the price below $172.910, a fall to $134.360 is possible. We are currently neutral on the pair.

TRX/USD

We have been waiting to buy Tron (TRX) close to the trendline of the ascending channel as it reduces the risk. However, on July 7, the bulls propelled the price higher, breaking out of both the moving averages. The price is facing a stiff resistance close to $0.036. If this level is scaled, the next level to watch on the upside is $0.040.

TRX/USD

However, if bulls fail to push the TRX/USD pair above $0.036, a fall to $0.030 is likely. If this support also cracks, the decline can extend to the support line of the channel. Both moving averages are flattening out and the RSI is close to the midpoint. This points to a consolidation in the near term. We do not find any buy setups at the current levels.

ADA/USD

Cardano (ADA) is range-bound between $0.073 and $0.10. The bulls have held the first support at $0.077 and are attempting a pullback. If the price breaks out of the moving averages, it can move up to $0.10, which is a critical resistance. The cryptocurrency will pick up momentum on a breakout and close above $0.10. 

ADA/USD

On the other hand, if the ADA/USD pair turns down from the 20-day EMA, bears will again try to break below the $0.077–$0.073 support zone. If this zone cracks, the next support on the downside is at $0.060. However, if the support zone holds, the bulls will attempt to scale above the moving averages. We will watch the next dip towards $0.077 and then suggest long positions.

Market data is provided by the HitBTC exchange.

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Litecoin (LTC) Price Analysis: Approaching Next Crucial Break

Litecoin Price Analysis (LTC)

Litecoin price is holding the
$115.00 support area, but it is facing many hurdles. LTC may soon make the next
move either above the $122.50 resistance or towards $112.00.

Key Talking Points

  • Litecoin price is currently consolidating above
    the $117.00 support area (Data feed of Kraken) against the US Dollar.
  • There is a crucial bearish trend line forming
    with resistance near $122.50 on the 4-hours chart.
  • LTC price could either break the $122.50 resistance
    or decline again towards the $112.00 support.

Litecoin Price Analysis (LTC)

In the past three sessions, there were mostly range moves in bitcoin, Ethereum, ripple, EOS and Litecoin against the US Dollar. Earlier, the LTC/USD pair declined below the $115.00 support area, but the $112.00 level acted as a strong support once again.

Litecoin Price Analysis (LTC)

Looking at the chart, LTC price traded as low as $112.21 and recently corrected higher. It broke the $115.00 resistance area and the 50% Fib retracement level of the last drop from the $136.59 high to $112.21 low.

The price climbed above the $125.00 level, but it struggled
to gain momentum above the $127.50 level and the 100 simple moving average
(4-hours). Moreover, there is a crucial bearish trend line forming with
resistance near $122.50 on the 4-hours chart.

The price even struggled to clear the 61.8% Fib retracement
level of the last drop from the $136.59 high to $112.21 low. The price is
currently trading below the $122.50 level, but it is holding the $117.00
support area.

If there is an upside break above the trend line and
$124.00, the price could continue to rise in the near term. The next key
resistance is near $128.00 and the 100 SMA, above which litecoin could jump
towards the $140.00 level.

Conversely, if there is no upside break, the price break the
$117.00 support area. In the mentioned case, the price could revisit the main
$112.00 support area.

Overall, litecoin price seems to be preparing for the next
crucial break, and it could either break the $122.50 resistance or decline
again towards the $112.00 support.

The market data is provided by TradingView.

The post Litecoin (LTC) Price Analysis: Approaching Next Crucial Break appeared first on Ethereum World News.