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Bitcoin Price Eyes Chart Pattern That Kicked Off Bull Market in 2015

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  • Bitcoin’s 50- and 100-candle moving averages on the three-day chart look set to produce a bullish crossover – a sign of bull market momentum. Back in October 2015, the same cross marked the start of a long-term bull market.
  • This time, BTC has already rallied more than 180 percent ahead of the bull cross. As a result, we may not see a big move to the higher side immediately following the confirmation of the bull cross.
  • Prices could rise to $8,400 in the next 24 hours, having witnessed a bearish channel breakout on Wednesday. A break below key 4-hour chart support at $7,910 would weaken the case for a rise to $8,400.

A long-term bitcoin (BTC) price indicator is about to turn bullish for the first time in nearly four years.

The 50-candle moving average (MA) on the three-day chart is trending north and could soon cross above the 100-candle, confirming a bullish crossover – the first since October 2015.

A bullish crossover, as the same suggests, is a strong indicator of bull market momentum, according to technical analysis theory.

In reality, however, both bullish and bearish crossovers tend to lag prices. After all, the MA studies are based on historical data.

Even so, the upcoming bullish crossover warrants attention due to the fact that bitcoin broke into a 2.3-year long uptrend with the bullish crossover of the same averages in 2015.

3-day chart (2015)

BTC’s bear market ran out of steam at lows near $150 in January 2015, following which the price remained largely trapped in $200-$300 range for nine months before confirming a bearish-to-bullish trend change with a move above the July 12 high of $318 on Oct. 28.

Notably, the 50- and 100-candle MAs had produced a bullish crossover on Oct. 16 – twelve days before BTC broke into a bull market.

The cryptocurrency then charted a steady stream of bullish higher lows and higher highs over the next two years to reach a record high of $20,000 in December 2017.

More importantly, lows near $220 seen ahead of the bull cross haven’t come into play till date.

3-day chart (2019)

The 50-candle MA could soon find acceptance above the 100-candle MA, confirming a bullish crossover.

This time, however, BTC may not immediately see a sharp rally as the cryptocurrency has already gained more than 185 percent in the last six months.

The relative strength index (RSI) has rolled over from overbought territory, signaling scope for a price pullback and is currently teasing a downside break of the trendline representing the uptrend from December lows. So, a temporary price pullback could be in the offing.

It is worth noting that the picture was somewhat different in 2015 with BTC stuck in a $100 range for nine months to October during which the averages bottomed out.

Further, the cryptocurrency was up just 67 percent from the bear market low and the RSI was reporting bullish conditions with an above 50-print when the crossover happened on Oct. 16, 2015. Put simply, BTC had room to rally on confirmation of the bullish crossover.

As for the next 24 hours, BTC may remain bid, having ended an eight-day long trading range of $7,500-$8,100 with a bullish breakout on Wednesday.

As of writing, the leading cryptocurrency by market capitalization is trading at $8,113 on Bitstamp, representing 1 percent gains on a 24-hour basis.

4-hour chart

BTC found acceptance above $8,100 in the U.S. trading hours yesterday, confirming twin bullish cues – a falling channel breakout and a sideways channel breakout on the 4-hour chart.

As a result, the cryptocurrency has scope for a rally to $8,400. So far, however, the upside is being capped by the 100-candle MA, currently at $8,188.

The case for a rise to $8,400 would weaken if the repeated rejection at the 100-candle MA ends up sending prices below the ascending trendline support, currently at $7,910.

Disclosure: The author holds no cryptocurrency assets at the time of writing.

source:coindesk.

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Coinsource Adds Dai Stablecoin to Bitcoin ATM in Preparation of Remittance Roll-Out

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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.

source:.coindesk.

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Coinbase Pro Lists Ethereum-Based Chainlink (LINK) After Google ‘Name Drop’

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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.

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Bitcoin’s surge past $12,000 unrelated to Facebook’s Libra, claims Susquehanna executive

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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.”

Source :ambcrypto

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