In this short timeframe, IOTA’s trend is bullish/sideways. IOTA is currently resting at EMA50 and MA200 confluence point while gathering pace to attack the resistance zone at 6080 sats, a Fib50 of the March 21st -May 13th high low at 6000-6100 sats.
Breakout point for IOTA would be penetration of the Fib382 at 5600 sats and breakdown point is the 4950-5000 sats zone, a local bottom from couple of days ago.
Daily IOTABTC is picturing the struggle in more detail – IOTA has been clawing back up to enter the declining wedge again which it managed to do 4 days agod. Current mini resistance is the Fib236 at 5500 sats. It is still far away from its horizontal support at 6200 sats. It is right now hitting MA50 which needs to be pierced before moving further up to the major resistance at 6300 sats.
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IOTABTC is still in a major, long-term bearish trend. It is molding a falling wedge pattern, a bullish pattern that begins wide at the top and contracts as prices move lower. This price action forms a cone that slopes down as the reaction highs and reaction lows converge and is further confirmed with IOTA being oversold on the weekly CCI. However, considering this is the weekly chart, there is still some time to wait before this plays out. IOTA is currently sitting at 5220 sats and the wedge vertex is at 3200 sats and could be hit only in September, so it is going to be a long summer for IOTA.
Trading volume is low when compared to its market cap neighbors with only $36.7 million and “Real 10” volume being $21.1 mil. What is good, though, is the volume overstatement is relatively low, there is 1.7x discrepancy between the reported and the “Real 10” volume (trading volume on the exchanges that prevent wash trading). This means that IOTA’s liquidity is slightly inflated which is not the case with the majority of other coins.
Moreover, IOTA comparatively has a solid buy support, according to coinmarketbook.cc. Buy support is measuring sum of buy orders at 10% distance from the highest bid price. This way we can eliminate fake buy walls and whale manipulation and see the real interest of the market in a certain coin. IOTA currently has meager $3.4m of buy orders measured with this method, which sets IOTA buy support/market cap ratio at 0.40% which is faintly above average value. Bitcoin and Ethereum have a 0.27% and 0.28% ratios, respectively. This novel metric indicates there are a lot of manipulations, inflated liquidity and fake orders on all crypto trading pairs, including IOTA pairs.
All social metrics marked a noticable bump due to the Jaguar Land Rover news. You can see a huge increase in news articles, Twitter and Telegram posts. Sources for the data are DataLight and Predicoin.
Mid May Update: Fundamentals
To assess fundamental health of a project, we used the FCAS metric. FCAS is a comparative metric whose score is derived from the interactivity between primary project lifecycle fundamentals: User Activity, Developer Behavior, and Market Maturity.
There are a few sub components which provide data to each fundamental:
User Activity is comprised of Project Utilization and Network Activity
Developer Behavior is comprised of Code Changes, Code Improvement and Community Involvement
Market Maturity is comprised of Liquidity and Market Risk. Market Maturity has less than 5% impact on a project’s overall FCAS.
FCAS ratings are on a 0-1000 point scale with a corresponding letter grade. Break points are based on standard deviations in the underlying component distributions.
900 – 1000 is marked as S for superb. 750 – 899 is marked as A for attractive. 650 – 749 is marked as B for basic. 500 – 649 is marked as C for caution. And finally, below 500 is marked as fragile. You can read more about it here.
IOTA got an average C mark with this evaluation model. C stands for caution so IOTA is not looking good under this methodology for value assessing.
Below are some of the most important news around the project in the last 30 days.
- The IOTA Foundation (IF) has launched its first international IOTA academy program in close cooperation with the IOT1 Academy, a deep tech academy based in Berlin and Shanghai.
- Coordicide, the effort of removing the Coordinator from the IOTA networks, is well under way in its research phase. One step in the journey towards Coordicide is making the inner workings of the current network set-up fully transparent with an open-sourced version of the Coordinator running on Mainnet.
- Britain’s largest auto manufacturer announced yesterday that it has begun testing software that will allow drivers to be rewarded in cryptocurrency for sharing data. The Reuters report added that Jaguar Land Rover is developing a ‘smart wallet’ that will be installed into vehicles to enable crypto deposits. Drivers would be able to earn IOTA for sharing information such as traffic conditions, or potholes via automatic sensors connected navigation providers or local traffic authorities.
Below is our long-term forecast where we cover general market movements and sentiment shifts before delving deeper into the specific predictions for IOTA.
IOTA was started to provide distributed ledger technology for the machines and internet-of-things (IoT) space where small connected devices regularly share data.
Because these machines and devices are generally specialized to be low power and perform only specific functions IOTA does not use a traditional consensus mechanism like proof-of-work or proof-of-stake nor does it use a blockchain structure. It rather uses a different type of public ledger with a popular moniker “The Tangle”.
The goal of the project is to allow these devices to conduct micropayment transactions between themselves and potentially to securely transfer data. At the core of the project is what is referred to as the ‘Tangle,’ a directed acyclic graph (DAG) that acts as the public ledger system. The team believes that this structure will allow for feeless payments, lower compute cost, and the ability to connect to billions of devices.
Year in Review
IOTA expanded their team in 2018 with active talent acquisition, building an almost 100 man and woman army of researchers, developers, domain experts and ecosystem building enthusiasts.
IOTA’s holy grail is Coordicide – or the removal of the centralized server called coordinator that disqualifies IOTA as a decentralized ledger as long as it runs under a control of single entity (IOTA Foundation). Throughout 2018, IOTA have validated aspects of their earlier roadmap and come up with great improvements, but also started researching a potential breakthrough that if validated, would greatly accelerate the performance of Coo-less IOTA.
The IOTA Foundation officially signed an MOU with UNOPS. Through this collaboration, the IOTA Team will work with different units at UNOPS to increase transparency and efficiency, as well as safety and security for UN workers who are out on the field on a mission.
The IOTA and European Smart City Consortium +CityXChange received a green light from the EU Commission. The ENGIE Lab CRIGEN and the IOTA Foundation (IOTA) signed a Memorandum of Understanding to cooperate in experimentation with the IOTA Tangle in the Energy and related IoT domains.
The list of similar memorandums and partnerships is extensive and goes beyond the scope of this article.
The IOTA Foundation established the legal framework and internal governance model for the IOTA Ecosystem Development Fund (EDF) and they also announced the formation of a Research Council.
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During the last year we could see, for example, the development of the Trinity wallet and although it is still in a Beta stage, we can use it without major worries. Trinity is undoubtedly much easier to use and has more user-friendly functions.
IOTA Roadmap for 2019
The Foundation already has plans in place to make community engagement on development, research and adoption a lot more interactive and open in the new year, starting almost immediately.
IOTA Roadmap is very detailed and transparent and you can scrutinize their plans on this link.
What does the Icon (ICX) future look like?
In short, Coordicide will be the buzz word of the year for IOTA community and the last update we had on this project was the creation of a testnet without Coo to prove that the network can work without the Coordinator. Thus we arrived at CLIRI which is a fork of IRI (IOTA Reference Implementation) in which all trace of the Coordinator was removed. CLIRI is a test therefore it is not ready to be tested in the main network. Anyone who wants to research the CLIRI function can do so in the following GitHub repository https://github.com/iotaledger/cliri
How to evaluate fundamentals of a crypto project
We should consider crypto valuations like educated gambling, a ‘prediction market’ where we are betting on the odds of project and token success. There are some catalysts of success we can identify:
- Project success drivers (user traction, strong financial bottomline, good treasury management, network effects/synergies between users and token investors)
Real user traction is the most important driver of success, that is what most of holders call “adoption”. If people start using certain crypto project because they find it useful and it makes their life easier, that is a guarantee of success. So far, almost no crypto project can claim to have done so.
Strong financial warchest that will enable teams behind the project to develop their visions, incentivize other developers to join them and start using their product is also a crucial aspect of any project. Tied into it is treasury management – especially for the project that had big ICO proceeds. Temptation to squander all those millions into “conferences and events” (read hard-core partying on yachts and luxury hotels) was massive, especially if we consider that majority of token projects founders were no-names and ordinary employees that worked for a paycheck before the ICO fairy-tale happened to them.
Another adoption indicator – network effects, where every additional user of a good or service adds to the value of that product to others. When a network effect is present, the value of a product or service increases according to the number of others using it.
If you can objectively notice that your favorite token project has some of these traits happening for it, be happy – you might have found a winner.
- Token success drivers (favourable demand-supply dynamics, programmable incentives on token, aligned incentives with management team and consensus on token as common unit of value creation).
Token success is completely dependent on tokenomics. As defined by infloat.co, tokenomics involves the incentivization of certain stakeholders to ensure particular behavior.
So, tokenomics is essentially an incentive structure designed to ensure that a token has a purpose and utility within its native network. It is the study of how coins/tokens work within the broader ecosystem that can be considered as a sovereign micro-economy. This includes such things like token distribution as well as how they can be used to incentivize positive behaviour in the network.
For example, bitcoin is designed to ensure that bitcoin miners have a reason to mine new bitcoin. Miners validate bitcoin transactions and receive (or create) newly minted bitcoin in the process.
On the other hand, individuals, businesses and other bitcoin users pay a transaction fee for miners to include their transaction in the next block. This ensures that even when all bitcoin have been minted (to the tune of 21 million, which should happen in around 2140), bitcoin miners are still incentivized to keep ‘mining’ (i.e. validating transactions).
To paraphrase all of the above in the simplest terms: if you, after weeks of research and reading, can’t figure out why the project needs to have a token, it probably doesn’t.
So why does the token exist then?
– To make the project founders rich.
But there are some people on Twitter, Reddit, Telegram claiming otherwise.
-Yes, they are either: paid to do so by those same founders, they are desperate and delusional bad holders or they are just stroking their own ego with newly learned fancy economic terms and jargon.
Needless to say – stay clear of such projects.
General Market Movements and Sentiment Shift
The downfall of altcoins that were mainstream media darlings at the start of the year, IOTA among them, can be attributed, in part, to novice investors getting scared off once the bear market kicked in with a vengeance. Every resurgence of bitcoin in recent period, was met with the, for the most part, inability of altcoins to rally with it. Reason for that can be rookie investors learning from their mistakes, while smart money that was previously watching from the sidelines has begun to enter into bitcoin.
These entities weren’t about to buy BTC when it was trading at an all-time high, but they’ll take a look now, having missed the boat the first time around. None of them, it seems, are interested in altcoins however, despite the fact that many are trading at a 5x discount. Institutional investors may be cautious, but they’re not foolish.
Some altcoins will continue to have some speculative value for the foreseeable future. But just like the now infamous tulips, the hysteria will eventually subside. We are already witnessing the first phases of that slide and even though most of the bag holders react emotionally to articles that criticize their coins, I am just observing the developments on the market. You better start emotionally detaching yourself from your “great sounding” coin because if goes nowhere, ideas are worthless without execution and real users that see value in the project.
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2018 was a very interesting year overall for the broader DLT community, “ICO projects” came and burst in a similar fashion to the firework that painted the evening sky tonight.
While the mass death of barely-alive-in-the-first-place projects causes some uncertainty and skepticism among the newcomers, it is something veterans and pioneers of this space have been longing for.
In order for DLT to become established, we need quality over quantity, we need convergence on standards and consolidation of communities to bring to life what we’ve been working on for years. With less noise, 2019 will act as a Darwinian selection mechanism, much like that of which the IT companies post-dotCom Bubble experienced.
This is a good thing and absolutely necessary for the real maturation of the space.
Our IOTA Price Prediction for 2019
IOTA, as the rest of the market, is tied at the hip of bitcoin’s price action. If bitcoin embarks on another bull run, IOTA can hope for one as well. Since that is very unlikely, don’t expect much to change for IOTA price-wise in this year. So 2019 will be a year of boring sideways action with minor bitcoin ignited jumps and slumps.
What does Tron future look like? See our TRX Price Prediction 2019
The main currency in cryptocurrency markets is Bitcoin and given this, altcoins tend to fuel Bitcoin runs and Bitcoin tends to do the same in return. Given this relationship, Bitcoin price movements (or lack thereof) tend to effect altcoin prices.
When Bitcoin goes up swiftly, it will likely:
- Suppress or depress altcoins as money flows into Bitcoin;
- Or, take altcoins along for the ride
In cases when Bitcoin plunges, it will likely:
- Depress altcoins as money flows into fiat;
- Or, cause altcoins to boom as money flows into them, but this is rarely the case.
When Bitcoin moves sideways, it will likely:
- Cause altcoins to mimic that as traders wait for a clear sign on the direction of the market;
- Or, cause altcoins to flourish as traders look for returns in altcoins and try to get favorable trades in terms of BTC pairs.
To summarize, Bitcoin is the focal point of the crypto market in many ways, and with BTC trading pairs on every exchange, the gravity of Bitcoin is hard to evade.
IOTA-BTC Price Correlation
The vast majority of trading that occurs in the crypto markets are between BTC and altcoin trading pairs. Since most altcoins do not pair with fiat currencies (and only a few are paired with stable coins like USTD), Bitcoin is the next best option. Therefore, when Bitcoin is stable, it forms as the ideal base currency for buying altcoins (which is why altcoins tend to do well when Bitcoin goes sideways).
Correlation is measured on a scale from -1 to 1. Values above 0 shows the degree to which altcoin is moving in the same direction as BTC prices (either up or down in tandem), and values below 0 shows the degree to which altcoin moves in the opposite direction of BTC prices (so when BTC goes down, altcoin goes up, or vice versa). Values around 0 shows that when BTC price moves, altcoins stays steady, or alternatively that when altcoin moves up or down that the BTC price is staying steady.
Based on the correlation analysis, BTC and IOTA have a strong positive relationship. The correlation coefficient of their prices is 0.62, which was estimated based on the previous 100-days’ price dynamics of both coins. Source – coinpredictor.io
The majority of projects will fail — some startups are created just to gather funds and disappear, some would not handle the competition, but most are just ideas that look good on paper, but in reality, are useless for the market.
Vitalik Buterin, co-founder of Ethereum said:
“There are some good ideas, there are a lot of very bad ideas, and there are a lot of very, very bad ideas, and quite a few scams as well”
IOTA (MIOTA) Future Outlook
As a result, over 95% of successful ICOs and cryptocurrency projects will fail and their investors will lose money. The other 5% of projects will become the new Apple, Google or Alibaba in the cryptoindustry. Will IOTA be among those 5%?
Highly likely it will.
Future of this world is data.And data is IOTA’s main target.IOTA targets IOT(Internet of Things). IOTA has even started data marketplace alongwith the partnership of Microsoft,Fujitsu, Bosch etc. You can check it here – The IOTA Data Marketplace.
IOTA now has not only many premium companies as official partners, but also two world renowned influential experts (Dr. Richard Soley and Dr. Rolf Werner) as members of their supervisory board.
But not all is bed of roses with IOTA. Tangle and IOTA approach to DLT is absolute cutting edge and highly experimental.
The team is, at times, pretty mullish in their decisions, like the one to use a balanced Ternarywhich is a numeral system that has 3 digits,-1, 0 and 1. Iota was made to be used with existing hardware, But all existing Hardware now is completely binary. This means that all of iotas internal ternary notation has to be encapsulated in binary, This will result in increased storage and computational overhead. Iota cannot be successfully implemented into the present hardware and even if it is it will cause a significant wastage of both storage and computation power.
Iota violates cryptography’s best practices i.e Don’t Roll Your Own Cryptoand this has resulted in a lot of vulnerabilities in the system and a team led by Neha Narula found many vulnerabilities in iota’s hash function curl and the one of iota’s co-founder (Sergey Ivancheglo) claimedthat they had deliberately added the flaws in the curl hash function as a ‘Copy Protection’. All of this summed up means one thing: IOTA might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Check out our Verge (XVG) Price Prediction for The Future
All of this summed up means one thing: IOTA might live through couple of orchestrated and, for a regular trader, completely unpredictable pumps but the majority of time will be murky sideways trading with small volume and no significant interest from the market.
Price will heavily depend on what BTC will do and since many analysts think BTC will not be making big moves in this year, it is hard to expect IOTA will do them either. The price will probably stagnate and record slow-moving depreciation or appreciation depending on the team activity, potential technological breakthrough or high-level partnership.
Market prediction for IOTA – MIOTA Price 2019
With the market being completely unpredictable, forecasting the cryptocurrency price is really more of a gamble and luck rather than a data driven guesstimate.
Let’s throw a glance at the eminent publications and personalities, and their predictions regarding the IOTA price, which will give us another point of view to consider:
Walletinvestor is a popular website that does technical analysis-based price predictions of various cryptocurrencies and traditionally has a skeptical outlook for most coins. According to them, IOTA is expected to drop heavily to $0.05 per token in one year.
Trading beasts display that IOTA can climb to around $0.75 within a year which means it will essentially grow 2.5x in value in the next year.
Cryptoground predicts that IOTA might eclipse the current level by almost 3x and reach $0.85 by the end of 2019. They even added their version of IOTA price prediction 2024, where they stated that IOTA might reach $5.18 by 2024, a 20x increase to the current price.
Digitalcoinprice gave a neutral prediction saying that by 2019 end, IOTA might be worth two times more than now – around $0.5 per token.
IOTA Future: 2020, 2023, 2025
IOTA Price Prediction 2020
IOTA Price Prediction 2023
IOTA Price Prediction 2025
Realistic IOTA Price Prediction
British Politician Calls Bitcoin “A Right-Wing Nightmare,” Warns “Inevitable Crypto Crisis Lurking Around the Corner”
Alex Sobel, Labour and Cooperative MP for Northern English district of Leeds North West, has called Bitcoin, “…a right-wing nightmare which facilitates tax evasion, money laundering and environmental degradation.”
He has also warned that, “…the Left has continuously failed to engage with questions of finance, technology, and business…(and) Getting wise to the con-artistry and grift of the crypto movement, and countering its ideological appeal, is necessary…to deal with the inevitable crypto crisis that is lurking around the corner.”
Sobel, who sits on the Environmental Audit Committee, the Backbench Business Committee and who previously ran Social Enterprise Yorkshire, made the comments in an article called “The Bitcoin Scam” he penned for Tribune Magazine in late May.
In the article, Sobel says that, though neoliberalism and nationalism are commonly understood to be the “primary ideological opponent(s) of socialism,” “anarcho-capitalist” ideology has been boosted by the advent of Bitcoin:
“…(L)ibertarians or anarcho-capitalists…believe that the state should be abolished and replaced with a world of pure property rights…For much of its existence this ideology was relegated to subcultures and the political fringe. But, in 2009, it had a major breakthrough: Bitcoin…a digital cash or commodity system whose adherents promise an escape from banking surveillance, fiat currency, inflationary monetary policy, and taxation.”
Bitcoin proponents laud the invention for enabling “uncensorable” and “immutable” transactions via an expensive and energy- consumptive process called “proof of work.”
Bitcoin’s many network participants all maintain a heavily-encrypted copy of the entire Bitcoin transaction history and expend copious electricity competing for a prize of bitcoins.
Participants believe the network and transactions are maintained by “peers” and not by “venal bankers,” Sobel writes.
But the notion that cryptos have so far been used for anything other than criminal finance, Sobel writes, is “laughable.”
As well, crypto’s current bid for legitimacy shifts them “…ever closer to the worlds of politics and finance — the realms its early adopters argued they were escaping.”
Meanwhile, while processing relatively few transactions, Bitcoin’s energy consumption is equivalent to that of “medium-sized nations”:
“You may find it helpful to think of the process of bitcoin mining as akin to millions of computers expending ever-increasing amounts of energy buying quintillions of lottery tickets with one winner every ten minutes. The amount of power wasted on useless duplication of effort is staggering. At times, power demand for bitcoin alone has surpassed that of nations the size of Ireland or the Netherlands. You don’t have to be an environmentalist for this to strike you as less than ideal.”
As the general public’s taste for a carbon-heavy network that enables criminal finance may have faltered, calls for “blockchain, not Bitcoin” have concurrently increased.
But Sobel notes that “blockchain” and cryptocurrencies have been conflated in order to ensure a continuous flow of investor cash into cryptocurrency projects of questionable worth:
“The accidental (and often intentional) effect of all this earnest blockchain noise is to sustain interest and hype in the adjacent technology of cryptocurrencies. From the perspective of the grifters, charlatans, and scammers, it adds a much-needed veneer of respectability that functions to disguise more nefarious activities.”
Meanwhile, Sobel joins a growing list of detractors, including David Gerard (who fact-checked Sobel’s article), claiming there’s no-there-there when it comes to blockchain:
“…(T)heir advocates would argue, while cryptocurrencies might be flawed and wasteful, the underlying technology — blockchain — is a world-changing innovation. This, sadly, is also untrue. Blockchain is a solution in search of a problem. Google ‘blockchain uses’ and you’ll discover a huge list of test cases. Upon closer inspection, few will have moved beyond trial phase and those that have often do not make use of distributed consensus at all.”
Sobel gives as an example, “One frequently-championed blockchain project involved organising aid for a Jordanian refugee camp.”
Many firms have looked into how blockchains might be cost effective in places otherwise lacking in infrastructure.
In the case of the Jordanian project, Sobel writes:
“The claim was that the company, Building Blocks, was surpassing the inefficiency of food aid distribution by creating a system that allowed refugees to easily purchase food. Instead of issuing tokens or pre-paid cards to track family purchases, the scheme tracked individual spending by uploading biometric data to their blockchain. To purchase goods, residents of the camps had their iris scanned.”
Turns out this project was just doing a regular database, Sobel claims:
“But, despite the hype, it was later revealed that the system ran on a ‘permissioned blockchain’ with a central authority who controlled use of the network — and who could rewrite the database…The refugees in the Jordanian camp were not ‘on the blockchain’; they were merely listed in a centralised database.”
And while well-intentioned libertarians have envisioned a cryptocurrency-underpinned Utopia, their prized currencies appear to be majority-owned by a set of elites, Sobel writes:
“The libertarians may cry freedom and equality, but their world is the opposite. A Citigroup analysis of Bitcoin from 2014 found that ‘47 individuals held about 30%, another 900 held a further 20%, the next 10,000 about 25% and another million about 20%.’ No country on earth has such an unequal distribution of assets and wealth.”
The MP ends by advising politicians to be wary of crypto-lobbyists door-knocking for the sector:
“So, when the crypto lobbyists show up in parliament with a PR budget, the Labour Party should be paying attention. What they’re selling is an expression of political reaction, thoroughly intertwined with offshore tax avoidance, indelibly linked to black market activity, and implicated in environmental degradation. As for blockchain, in every proposed implementation, the merits of the technology are invariably oversold — with cheaper, more robust, database solutions readily available.
Korean Crypto Exchanges Update Terms to Accept Liability for Hacks
A number of South Korean cryptocurrency exchanges have been forced to update their terms and conditions to accept liability for potential hacks and service issues.
According to a report by the Yonhap News Agency, South Korea’s antitrust watchdog, the Fair Trade Commission, said Monday that five exchanges in total had made the change after it issued a corrective recommendation.
Bithumb, an exchange that has been hacked twice in a year, is included in the five exchanges, the report says. Last June, the platform lost roughly $31 million in cryptocurrencies, and, in May 2019, a possible insider job saw around $20 million in the company’s holdings of XRP and EOS disappear.
Previously the exchanges’ T&Cs had stated that they would not compensate users if not found to be willfully or grossly negligent.
After it’s 2018 hack, Bithumb pledged to refund users that lost cryptos, despite its T&Cs.
In January, only a third of inspected cryptocurrency exchanges got a full pass in a government security audit.
At the time, several government agencies inspected a total of 21 crypto exchanges from September to December 2018, examining 85 different security aspects. However, only 7 – Upbit, Bithumb, Gopax, Korbit, Coinone, Hanbitco, and Huobi Korea – cleared all the tests.
3 Reasons Bitcoin Is Rallying Above $9K
Bitcoin rose above $9,000 over the weekend, taking cumulative year-to-date gains to more than 150 percent.
The leading cryptocurrency by market value clocked a 13-month high of $9,391 on Bitstamp on Sunday and was last seen trading at $9,200, representing 22 percent gains on last Monday’s low of $7,524.
Cryptocurrency market experts and investors are associating the sharp price gains seen over the last six days with a number of factors, the most prominent being Facebook’s coming foray into cryptocurrencies.
Facebook to launch ‘GlobalCoin’
The social media giant is set to unveil its very own stablecoin, reportedly called GlobalCoin on Tuesday, June 17, with a launch to follow in 2020.
The project has reportedly already secured the backing of over a dozen companies and is seen boosting the pace of widespread cryptocurrency adoption by many including Barry Silbert, the founder and chief executive of Digital Currency Group.
Meanwhile, Spencer Bogart, General Partner at Blockchain Capital, believes Facebook’s crypto effort is among the most bullish external tailwinds for bitcoin in 2019/2020, as it will ease the friction in acquiring digital assets by creating a circular economy.
Further, there is a consensus in the investor community that Facebook’s crypto will create awareness that a private, non-central bank issued currency can exist, leading to increased adoption of bitcoin and other cryptocurrencies.
The hype garnered by GlobalCoin likely put a bid under the cryptocurrency over the weekend. That, however, makes BTC vulnerable to “sell the fact” trading following the expected white paper launch on Tuesday.
Binance.com bars US customers
The announcement led to a sharp sell-off in Binance’s very own native asset, Binance Coin (BNB). The price of BNB fell 12.8 percent to 25,209 satoshis (a satoshi being 0.00000001 of a BTC) on Friday, and hit a one-month low of 34,906 satoshis on Sunday.
The slide indicates that investors have rotated money out of BNB and possibly into bitcoin, pushing the top cryptocurrency higher, as discussed by Alex Kruger – a prominent Fundamental & Technical Analyst.
Litecoin approaches ‘halving’ event
The upcoming litecoin (LTC) halving, set to trigger on August 5, 2019, will cut the reward gained from mining the cryptocurrency by half, meaning LTC will become a more scarce asset overall.
”Halvings’ as they are known, typically result in an overall boost in value for the crypto markets, as the assets themselves become harder to obtain and therefore increase in value.
Litecoin has already rallied 353 percent this year and may have added fuel to the ongoing bitcoin’s price rally. It is worth noting that litecoin led the broader markets higher in the first quarter, with 100 percent gains over the period.
As noted earlier, bitcoin may see a pullback following Facebook’s announcement on Tuesday. The long duration charts, however, indicate that corrections, if any, could be short-lived.
Weekly and monthly charts
Bitcoin jumped 17.57 percent last week (above left), invalidating the bearish view put forward by the previous week’s close below $8,000.
Further, the 5- and 10-week moving averages are trending north, indicating a bullish setup, while Chaikin money flow is reporting the strongest buying pressure since December with an above-0.32 reading.
The bullish case looks stronger if we take into account the falling channel breakout on the monthly chart (above right).
As a result, BTC could rise to $10,000 over the next few weeks. In the short-term, a price pullback cannot be ruled out.
BTC printed 13-month highs above $9,300 on Sunday but failed to close above $9,097 – the high of the bearish outside reversal candle created on May 30.
Another failure to secure a UTC close above $9,097 may trigger profit taking on long positions, leading to a price pullback to the 200-hour moving average (MA), currently at $8,300.
Disclosure: The author holds no cryptocurrency at the time of writ:coindesk