- Bitcoin’s price consolidation in a tight range continues for the eighth day, as litecoin rallies to its highest level since May 2018.
- BTC’s 4-hour chart shows $8,053 is the level to beat for the bulls. A high-volume break higher could be followed by a rise to $8,500.
- LTC looks set to extend its recent rally as per the 3-day chart.
- LTC already rallied more than 100 percent in the last six weeks, so a pullback to $120 could be seen before further gains.
Bitcoin (BTC) is lacking a clear directional bias for the eighth consecutive day amid a continued rally in litecoin’s (LTC) price.
The price of a single bitcoin – the world’s leading cryptocurrency market value – has been restricted to a $600 range since June 5. While any drops to $7,500 have been consistently short-lived, buyers have also repeatedly failed to engineer a convincing break above $8,100.
As of writing, BTC is changing hands at $8,000 on Bitstamp, representing a 0.5-percent gain on a 24-hour basis.
With BTC so indecisive, major alternative cryptocurrencies like ethereum’s ether token, XRP, bitcoin cash and EOS are also struggling for clear direction.
Litecoin, however, is flashing 6.5 percent gains on a 24-hour basis, according to CoinMarketCap. The fourth largest cryptocurrency by market capitalization rose to $141 on Bitstamp earlier today, the highest level since May 2018.
More notably, at the current price of $136, LTC is up nearly 40 percent from lows below $100 seen just seven days ago. Meanwhile, BTC is up 4 percent on a weekly basis.
With the mining reward halving due on Aug. 8 – a process that could lead to a supply deficit and a resultant upwards pressure on prices – LTC is again leading BTC higher.
BTC 4-hour chart
As seen above, BTC has created a sideways channel inside a falling channel, so a break above $8,063 would confirm two channel breakouts and open the doors to $8,500.
It is worth noting that the breakout could be short-lived if trading volumes continue to remain low.
On the downside, the higher low of $7,713 is the immediate support. A violation there would expose the lower edge of the sideways channel, currently at $7,500.
LTC 3-day chart
Litecoin’s relative strength index is reporting a symmetrical triangle breakout – a bullish continuation pattern.
The 5- and 10-candle averages continue to trend north, indicating a bullish setup.
Further, LTC has consistently seen higher volumes on days of positive price action compared to days of negative price action. Therefore, the path of least resistance looks to be to the higher side.
That said, a pullback to the 5-candle MA support, currently located at $122, could be seen before further gains, as the cryptocurrency has rallied 118 percent in the last 6 weeks and the bulls often take a breather following such stellar rallies.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
Coinsource Adds Dai Stablecoin to Bitcoin ATM in Preparation of Remittance Roll-Out
Coinsource, a Texas-based bitcoin ATM operator, announced a partnership with the Maker Foundation to make the Dai stablecoin available on its machines this summer in preparation for the launch of a full remittance service.
Coinsource will be updating all of its 230 machines in 29 US states and the District of Columbia to allow customers to buy, sell, and store Dai stablecoins.
Phase two of the rollout will launch a remittance service allowing crypto ATM and Dai users to send cash from wallet to wallet, enabling recipients to instantly redeem funds at any Coinsource machine or supported location.
Like Facebook’s Libra, Coinsource is hoping to extend financial services to an underserved and unbanked population.
“By offering support for Dai, we can provide the benefits of crypto to customers who are without access to bank accounts, while at the same time allowing them to avoid the price volatility typically associated with today’s often fluctuating crypto markets,” said Sheffield Clark, CEO of Coinsource, in a statement.
MakerDAO limits the effects of market volatility through a 1:1 soft peg to the U.S. dollar, maintained with an underlying basket of crypto assets, Collateralized Debt Positions, and automated stability mechanisms.
Additionally, MakerDAO lets users lock up ethereum as collateral via a smart contract in exchange for Dai. Roughly 2 percent – equivalent to over $340 million – of all ethereum is locked in DAO’s decentralized finance application.
Steven Becker, COO of the Maker Foundation said this partnership will remove some of the barriers to enter the decentralized, permissionless economy.
The remittance service is currently only available in the U.S.
Coinbase Pro Lists Ethereum-Based Chainlink (LINK) After Google ‘Name Drop’
Despite the fact that crypto assets are bleeding out against Bitcoin, the Ethereum-based LINK (Chainlink) has recently received the support of Coinbase. This comes amid BTC’s move to $13,400, marking a 333% rally from the cycle bottom of $3,150.
LINK Down 1.2% Despite Coinbase Listing
Announced Wednesday via a blog post, Coinbase Pro, the startup’s cryptocurrency exchange for professional traders, will soon be listing LINK.
Per the announcement, starting around an hour ago, the platform will be accepting inbound deposits for the Ethereum token. Once “sufficient supply” of LINK is established on Coinbase-owned wallets and 12 hours of depositing has elapsed, Coinbase will commence trading for the asset.
Trading will take place against U.S. dollars and Ethereum. And the asset on Coinbase Pro will be supported in all jurisdictions the exchange is available in, sans New York State due to regulatory concerns.
As normal, the launch of trading will take place in four steps: deposits, posting limit orders, matching limit orders, and then full trading.
Despite this listing, however, LINK is down in the past 24 hours. In fact, according to Coin Market Cap, the cryptocurrency is down 1.2%, and down nearly 20% against the market leader, Bitcoin. This confirms this outlet’s previous reports, which revealed that by and large, the so-called “Coinbase (Listing) Effect” is dead.
Google Lauds Chainlink
This news comes hot on the heels of a statement of support for the project from Google. Per previous reports from NewsBTC, Google Cloud, the firm’s cloud computing services platform, released an article titled “Building hybrid blockchain/cloud applications with Ethereum and Google Cloud”.
While this was big news in and of itself, the crypto community focused on the article’s mention of Chainlink, which is focused on facilitating data from the Internet to be translated to and verified for blockchain.
The Ethereum project’s claim to fame is its so-called “oracle” system, which is a recently-launched product meant to improve processes made via blockchain. For instance, if someone is betting on a real-world financial scenario with the Ethereum-centric Augur, an oracle can be used to make the outcome verification process much easier. In the recent post, Google’s Allen Day adds:
“Possible applications are innumerable, but we’ve focused this post on a few that we think are of high and immediate utility: prediction marketplaces, futures contracts, and transaction privacy.”
This recent integration will allow for Chainlink, and Ethereum smart contracts by extension, to interact with BigQuery, Google’s data analyzer and portal. What this does is allows for developers to build decentralized applications that can harness Google, theoretically improving the efficiency and viability of smart contracts.
Bitcoin’s surge past $12,000 unrelated to Facebook’s Libra, claims Susquehanna executive
The cryptocurrency industry shot back into the mainstream media’s spotlight on the back of Bitcoin’s phenomenal surge and Facebook introducing its cryptocurrency, Libra. The timing of the current bull run was attributed to Libra’s launch by some members of the community, while others vehemently disputed this fact.
One such critic is Bart Smith, Susquehanna’s Head of Digital Assets, who stated that Libra had nothing to do with the BTC’s price increase and credit had to be solely given to the world’s largest cryptocurrency.
Smith pointed out that Facebook had not yet confirmed whether Facebook’s connecting cryptocurrency wallet will actually support Bitcoin and unless that was proven, there was no way to congratulate Libra for BTC’s growth over the past week. Smith added,
“Unless details come out that Facebook will support BTC transfer, there is no reason to give Facebook credit. This is also a clear indication that the price rise is not driven by Libra but rather because of Bitcoin’s own attributes.”
According to Smith, once Bitcoin broke the $9000 barrier, it pushed through a psychological resistance point which allowed more investors to jump into the Bitcoin ecosystem. Another positive note is the fact that Bitcoin’s previous psychological resistance was in the $5000-$6000 range. However, the same was beaten by the king coin’s stellar rise over the past three months.
Bart Smith further pointed out that the Bitcoin futures market was trading at more than 100 dollars, when compared to the preceding day, with miners raking in profits. There was a general divide among BTC enthusiasts, with some claiming that miners were getting the short end of the stick when it came to profits. However, that has changed a bit right now. Smith said,
“The above-mentioned factors together contributed to Bitcoin’s growth and Libra’s association with it can only be seen as connecting nonexistent dots.”