As many of our readers may already know, there is currently a large-scale campaign underway that aims to see bitcoin “withdrawn its support” from third-party wallets so as to move exclusively towards private wallets. In relation to the matter, it is worth noting that over the course of the past few days many prominent crypto personalities (such as Nick Szabo) have have added the “[Jan/3 ]” logo their their Twitter handles— so as to show support for the above mentioned campaign.
More On The Matter
A few days back, respected altcoin proponent and financial analyst Trace Mayer launched a campaign to celebrate something he refers to as ‘Genesis Block Day’ by withdrawing cryptocurrency to non-custodial wallets.
On the subject, Mayer was noted as saying:
“I want to start a new cultural tradition where we declare and re-declare our monetary sovereignty every Jan. 3 as a celebration of the Genesis Block”.
Lastly, Mayer’s Genesis Block Day in many ways signals a homecoming for BTC— since the movement aims to bring Bitcoin back to its original roots (where users can only store their funds in the noncustodial Bitcoin-qt client, and not on some external wallet service).
What’s Causing All This Hoopla?
As things stand, a large number of cryptocurrency owners do not even realize that they are not really in control of their funds (since many of them still store their digital assets in wallets owned by an exchange or some other third-party entity). Thus, in order for investors to really take charge of their funds, they need to secure their alt-assets in a private wallet.
Proof of Keys Movement Continues To Gain Support
As mentioned earlier, a large number of prominent figures from within the Bitcoin community have recently added the “[Jan/3 ]” icon to their official Twitter profiles as a way of showing support for this grassroots movement. Some notable personalities include:
- Max Keiser
- Caitlin Long
- Giacomo Zucco.
- As a result of all of this, it now appears as though Jan. 3, 2019, is shaping out to be quite a monumental day for the Bitcoin community at large. If successful, the scheme will see a large number of onchain transactions recorded that day. This is because a sizeable upswell in the number of of BTC and BCH transactions can be used as a proof that the aforementioned Genesis Block Day campaign was able to resonate with the BTC/BCH community at large.Whether or not this campaign is able to flourish and spread all over the globe still remains to be seen, however, it now appears as though the PoK (Proof of Keys) protocol will become a regular feature of the Bitcoin calender for many years to come.
Bakkt Bitcoin Futures Will be Listed on ICE Futures Singapore
The impact of Bakkt’s Bitcoin futures remains to be determined. Despite the overall interest not being optimal, the company will expand its presence to Singapore.
Many people still believe Bitcoin futures trading will be beneficial to the cryptocurrency industry.
BAKKT BITCOIN FUTURES COME TO SINGAPORE
Others see it as another way for the naysayers to drive the value per BTC down when they feel like it.
Bakkt is one of the multiple Bitcoin futures trading providers today.
Their core product is very different, however, as these futures are settled in cash.
Despite a somewhat meager launch in the US, the company will receive a helping hand.
ICE Futures Singapore will begin supporting the Bakkt Bitcoin Cash Settled Monthly Futures Contract soon.
It is expected this trading vehicle will go live on December 9, 2019, barring any last-minute delays or mishaps.
This is another way for Asian investors to be exposed to the volatile Bitcoin price trends.
For ICE Singapore, it is another powerful investment vehicle capable of leveraging its regulated market.
The first question that comes to mind is how this will affect the value of Bitcoin in the weeks following this product launch.
Asia has seemingly been rather negative toward cryptocurrencies in many different ways.
It is certainly possible that the products by Bakkt will only drive the value down even further, at least under the current financial and geopolitical conditions.
It will also be intriguing to see if Bakkt can note a more proper trading volume in Singapore compared to its US launch.
Bitcoin Price Dumps Can Be Identified by One Simple Method, Notes Analyst
The Bitcoin price often creates repetitive patterns that can be identified to predict future price movements. One such pattern is created by a long bearish upper wick and a moving average (MA) rejection.
The Bitcoin price has been known to be very volatile. Therefore, when trading, it is important to use several methods to reduce your risk — such as using stop losses, low leverage if you are margin trading, and proper trade sizing.
However, especially in the case of stop losses, significant fluctuations in the form of wicks can often trigger them. In this case, the price moves very quickly in one or the other direction before swiftly reversing. This effectively stops out traders from their current position.
However, wicks create several important patterns, which when used along with indicators can help in predicting future prices.
Cryptocurrency analyst and trader @cryptopeppa suggested that a pattern of upward wicks an a rejection once they reached the 100-hour exponential MA suggests that the Bitcoin price will decrease.
Let’s see if we can find more of these patterns and if they can be successfully used to predict the Bitcoin price.
Bitcoin’s Wick Movements
In the pattern, the Bitcoin price first initiates a downward move. After some consolidation, it begins an upward move — which is ultimately unsuccessful and leads to the creation of a long upper wick. The wick stops once it reaches the 200-hour moving average (MA) and an important Fib level. In the case below, it was the 0.5 Fib level.
Additionally, after the wick, the Bitcoin price made two more attempts at breaking out above the MA. However, both were unsuccessful. It is imperative that the price reaches a close above the MA for the reversal to be initiated.
Another similar pattern transpired on November 17. After a decrease, the Bitcoin price made an attempt to retrace upwards. The first attempt ended once the price reached the 100-hour MA and the 0.618 Fib level, similar to the previous move.
However, the Bitcoin price made another attempt, which retraced fully to the pre-breakdown prices. However, the movement also ended with the creation of a long upper wick.
Another full retracement occurred in September.
This time, after a decrease, the Bitcoin price made a double top at the 0.618 level. This was below the 100-hour MA.
Afterward, it made an attempt at moving above the MA, which ended in a similar wick. This decrease was more easily identified since it was combined with a bearish divergence in the RSI.
To conclude, wick rejections at a significant MA do not necessarily mean that the Bitcoin price will dump. Previous market structure plays a big role in determining if they will.
A rapid price decrease followed by an attempt at a reversal, in which a wick is created a significant Fib level and MA, very often leads to a dump. The potential for further decreases is strengthened by the presence of a bearish divergence in the RSI.
BTC/USD Technical Analysis: Nice bounce off the intraday resistance point
- In another heavy day for BTC/USD technical analysis still plays out.
- Bitcoin is now down 3.88% in the session after 7K was retaken to the upside.
BTC/USD 10-Minute Chart
On a day like this, it is hard to analyse Bitcoin on an intraday perspective but the support and resistance levels seem to be holding.
For the second day in a row, BTC/USD suffered from heavy losses and dropped another 3.88% adding to Thursday’s 5.77% fall.
7,501.46 was a support zone early in the EU session and as price moved higher toward the level the bears came back in and shorted Bitcoin.
Now bulls will be watching the consolidation high of 7,215.49 to see if the same thing happens to support upside trade.
On the daily charts, the trend is still heavily bearish but some Bitcoin analysts have noted there is often a downside flush out before a move higher.
This pattern was noted on both the 28th July and 23rd October this year.
|Today last price||7319.3|
|Today Daily Change||-296.49|
|Today Daily Change %||-3.89|
|Today daily open||7615.79|
|Previous Daily High||8114.54|
|Previous Daily Low||7393.27|
|Previous Weekly High||9137.8|
|Previous Weekly Low||8369.16|
|Previous Monthly High||10484.7|
|Previous Monthly Low||7300.54|
|Daily Fibonacci 38.2%||7668.79|
|Daily Fibonacci 61.8%||7839.01|
|Daily Pivot Point S1||7301.19|
|Daily Pivot Point S2||6986.6|
|Daily Pivot Point S3||6579.92|
|Daily Pivot Point R1||8022.46|
|Daily Pivot Point R2||8429.14|
|Daily Pivot Point R3||8743.73|