Bitcoin Price Struggles to Rebound at $6,350 After Big Fall, Corrective Rally Unlikely | ELEVENEWS
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Bitcoin Price Struggles to Rebound at $6,350 After Big Fall, Corrective Rally Unlikely

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Subsequent to a 5 percent drop in a 24-hour span, the bitcoin price has struggled to rebound from the $6,350 mark, despite optimistic momentum indicators.

Bearish Trend

While bitcoin has broken Relative Strength Index (RSI) trendlines and has demonstrated a neutral zone at 44.3 RSI, the overly strong downtrend of the dominant cryptocurrency led its value to drop continuously.

If bitcoin had rebounded to the $6,600 mark in the past 12 hours, a corrective rally could have occured, delaying or even preventing another drop in the short-term to the lower end of $6,300. However, after briefly recovering to $6,413, the price of bitcoin fell again to the mid-$6,300 region, reducing the probability of a bear trend reversal and corrective rally in the upcoming days.

On July 10, CCN reported that the crypto market lost $22 billion of its combined valuation as bitcoin dropped to $6,400. Normally, a corrective rally resulted by the weakening momentum of bears occurs, even if the volume falls below average.

However, throughout the past 24 hours, the crypto market has not been able to show any momentum that could enable a corrective rally in the next 24 to 48 hours. Based on the movement of the crypto market throughout the past three days, a move for bitcoin to below the $6,000 mark is more likely than a trend reversal.

Ether, the native cryptocurrency of the Ethereum network, had a particularly large drop on July 10, losing more than 10 percent of its value against the US dollar. Most digital assets, both major and minor cryptocurrencies, tend to follow the trend of bitcoin. But, the drop of ether could have been worsened by the MyEtherWallet (MEW) and Bancor scandal.

Yesterday, Bancor lost $12.5 million in a security breach and was forced to freeze funds to ensure hackers could not steal any more funds from the protocol. But, the controversial decision of Bancor to freeze remaining funds generated criticism from crypto experts.

Emin Gun Sirer, a professor at the prestigious Cornell University, said:

“This looks like a straightforward case of bad opsec at Bancor, instead of a more worrisome flaw in their core contract. Of course, the Bancor contract should not have been centrally controllable to this degree. And the core contract should probably have had some rate limits built into it to avoid sudden drains like this.”

Market is Actually Optimistic

Positive events and news have emerged regarding regulatory frameworks surrounding cryptocurrencies in leading markets like South Korea and Japan throughout 2018. Recently, the government of South Korea finalized its plans to acknowledge the crypto and blockchain sector as legitimate industries.

Major exchanges in the US such as Coinbase have established robust custodian solutions to lure in institutional investors from the traditional finance market.

Still, the market is showing a strong bear cycle and lack of volume, momentum, and demand. These positive developments will likely be portrayed in the next rally of the cryptocurrency sector, which experts predict to be in the fourth quarter of 2018.

Bitcoin

Roubini on BitMex: “95 percent of all bitcoin transactions are fake”

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Anti-crypto personality Nouriel Roubini has lashed out at BitMex exchange following the recent announcement that the exchange had achieved US$1 Billion open interest on the Bitcoin perpetual swap contract, for the first time.


Roubini, who always has a lot of negative things to say about the cryptocurrency industry, took to Twitter to express his discontent about the recent record set by BitMex. 

BitMex announced that the exchange had achieved US$1 Billion open interest on the Bitcoin perpetual swap contract, for the first time. Roubini commented saying “How can one believe ANY of these figures when 95 percent of all bitcoin transactions on a typical exchange are fake? Fake-coins, shit-coins, fake-transactions, fake-pricing. The only true thing in crypto space is manipulation, pump n dump, front-running, wash trading, etc…”

The two will be meeting in Taipei on July 3 at the Asia Blockchain Summit 2019, where they will have an open debate.View image on Twitter


Source.chepicap

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ErisX goes all hands on deck to launch a Bitcoin Futures market

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ErisX’s CSO, Matt Trudeau, detailed the company’s four important plans for the future, which includes launching a spot market, to secure a Bit License, DCO, and to launch a futures market.

ErisX currently has a DCM contract, which is a Derivative Contract Market that allows ErisX to run a CFTC-regulated futures exchange. However, ErisX aims to get a DCO [Derivatives Organization], which will effectively allow it to run a CFTC-regulated clearinghouse. A clearinghouse would mean that ErisX can take control of the custody of the assets and clear and settled trades.

The CSO explained the benefit of this, stating,

“There is some efficiency for firms like producers [like mining companies]; if they need to hedge their inventory or need liquidity on a spot market, they could do that conveniently on a single platform. “

Trudeau added that from the “post-trade standpoint” and “the collateral management standpoint,” ErisX would have cash, crypto, and the futures, all stored in their clearinghouse. This would boost efficiency since it would be available for all customers under a single platform. The CSO added,

“… so there is some efficiency in terms of managing collateral, if you don’t have assets on  multiple platforms, it can all be in our clearinghouse.”

Apart from the aforementioned plans, Trudeau added that the crypto-industry needs to mature more and that ErisX plans to make a significant contribution to that. He added,

“The market is professionalizing and we think that in terms of what institutions are expecting from a trading/custody experience, we will bring some of the solutions to the market and that’s really the foundational pieces that they are looking in order to build their businesses on top of us.”

Apart from ErisX, LedgerX has also received a go-sign from the CFTC to settle Bitcoin Futures in Bitcoins. Other exchanges include Intercontinental Exchange’s Bakkt and Seed CX.

Source :ambcrypto

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Bitcoin’s fantastic run contributes to a new milestone for BitMEX

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The cryptocurrency market has been rife with news about Bitcoin, the world’s largest cryptocurrency, and its massive bullish movement. In a matter of just 3 months, Bitcoin has recovered from the bearish zone near the $4000 market, to currently trade near the $12,000 zone.

This price rise has prompted popular figures in the cryptocurrency industry to voice their opinions about the king coin and where it could go from its current market situation. Alex Kruger, a popular economist and analyst, is one of them and he tweeted,

“The hourly bar that marked tonight’s bitcoin $12,972 top had the highest hourly volume in Bitmex’s history. When such high volume prints come after an extended run, they often mark a local top. One could appreciate an intra-day blow-off top on the 5 minute as well.”

Kruger’s tweet comes in the wake of information that suggests that Bitcoin’s trading volume on the popular cryptocurrency exchange had skyrocketed over the course of the past few months. It was spotted in January of this year, when the trading volume found it difficult to breach the $1 billion mark. However, the present price hike has contributed to the volume spiking by a factor of 9 to amass a trading volume of more than $9 billion.

Kruger’s tweet also had comments from other Bitcoin enthusiasts, with @rufus666, saying,

“Gonna wait for Friday when these CME shorters gonna dump the corns they had to buy on spot after weekend rallies to hedge their positions.”

BitMEX had touched another milestone recently after the exchange clocked in a trading volume of a whopping $10 billion. This feat was also marked with requests from the community, asking BitMEX to include margin trading to its fold like the Changpeng Zhao-led Binance.

At press time, Bitcoin was trading at $12,595, on the back of a significant 11.19 percent growth over 24 hours. The cryptocurrency held a market cap of $223.96 billion, and a 24 hour trading volume of 32.23 billion.

Source :ambcrypto

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