Connect with us

Bitcoin

Key Bitcoin Price Indicator Turns Bearish in First Since December

Published

on

View

  • Bitcoin could fall to the July 2 low of $9,614 and may break lower in the short-term, as the widely tracked MACD (moving average convergence divergence) histogram on the three-day chart has turned bearish for the first time since December.
  • Buyer exhaustion above $12,000, as seen on the weekly chart, also supports the case for a stronger correction.
  • Dips below $9,000 could be short-lived, courtesy of an impending golden crossover on the three-day chart.
  • A weekly close above $12,000 would indicate a resumption of the rally from April lows near $4,000.

A widely tracked bitcoin (BTC) price indicator has turned bearish for the first time in seven months.

The moving average convergence divergence (MACD) histogram – an indicator used to identify trend changes and the momentum of the bearish or bullish movement – has dropped below zero on the three-day chart for the first time since Dec. 21, 2018.

The histogram crossing below zero is considered a sign of bullish-to-bearish trend change, while a move above zero is taken as confirmation of the bull reversal.

Some observers may argue that the MACD is based on moving averages and tends to lag prices. While that is true, crossovers on the three-day chart MACD have proved to be reliable indicators of changes in trends in the past, as seen in the chart below.

As seen above, the MACD’s drop below zero in the first week of January 2018 marked the beginning of the bear market. BTC’s price then fell from $17,000 to $6,000 in the four weeks to Feb. 6.

The same year, prices recovered to levels above $11,700 by the end of February. The MACD, however, failed to cross above zero in the first week of March and began reporting bearish conditions, following which BTC fell from $8,300 to $6,400.

More recently, the indicator crossed above zero, signaling a bearish-to-bullish trend change, almost four months before bitcoin broke into a bull market with a high-volume above $4,236 on April 2, 2019.

So, there is a strong case to believe that the latest bearish turn by MACD may be followed by a notable price drop.

Again, seasoned traders would point out that MACD crossovers often end up as contrary indicators. For instance, in a strong trending market, a bearish crossover on the MACD usually marks an end of the corrective pullback (opportunity for bargain hunters).

Indeed, like every other technical indicator, the MACD can and does produce fake signals. Hence, it’s advisable to seek an additional confirmation from other indicators and the price action in general.

The latest bearish cross on the MACD looks legitimate on that basis, as there are signs of buyer exhaustion on the technical charts.

Weekly and 3-day charts

On the weekly chart (above left), the previous three candles printed highs above $12,000, as indicated by their upper wicks, but failed to close (Sunday, UTC) above the psychological resistance amid overbought conditions reported by the 14-week relative strength index (RSI).

That is a classic sign of bullish exhaustion. Further, the RSI is now beginning to roll over from overbought levels (above 70.00), indicating scope for a deeper correction.

On the three-day chart (above right), the RSI has dived out of an ascending trendline, signaling an end of the rally from December lows.

All-in-all, BTC looks likely to fall back below the recent low of $9,614 (July 2 low) and extend losses to $9,097 (May 30 high) in the short run.

It’s worth noting that the long-term outlook will remain bullish as long as prices are held above the 200-day moving average, currently at $5,961.

Moreover, any dip below $9,000 could be short-lived, as the 50- and 200-candle MAs are set to report a bull cross in the next few days. A similar golden crossover was observed at the start of the bull run in February 2016.

As of writing, BTC is changing hands at $10,670, representing a 3.8 percent gain on the day. Prices picked up a strong bid around the 50-day MA of $9,900 yesterday and produced a strong daily close above $10,700 yesterday, as noted by renowned analyst Josh Rager.

However, in the last 12 hours, the cryptocurrency has struggled to settle above $11,000 and seems to have created another bearish lower high around that psychological resistance, as seen below.

4-hour chart

The bearish lower highs and lower lows indicate the path of least resistance is to the downside. BTC, therefore, could fall back to $10,000 in the next 24 hours.

A high-volume break above $11,000 would invalidate the bearish lower-highs setup and could yield a rise to $11,500.

That said, a weekly close above $12,000 is needed to revive the bullish view.

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

Bitcoin image via Shutterstock; charts by Trading View



News Source

Bitcoin

Bitcoin: Crypto-Like Global Monetary System To Be a Boon For BTC

Published

on

On Friday, the Bank of England’s governor made a comment that was music to the ears of Bitcoin and crypto proponents.

According to reports from Reuters and Bloomberg, Mark Carney dropped a bombshell on a group fo central bankers and press at a meeting in Jackson Hole, Wyoming, stating that he believes that a Libra-like crypto asset is likely to replace the U.S. Dollar.

While he didn’t expound on the comment, he made it clear that the current system isn’t working in his eyes, saying that “in the longer term, we need to change the game”. Carney even explained that he believes the Dollar is playing a “destabilizing” role in the global economy.

Of course, this was not a recommendation to adopt Bitcoin, but it was an acknowledgment that traditional fiat monies are on their way out and digital assets are getting more and more viable.

Bullish for Bitcoin and Gold

According to Raoul Pal, the former head of Goldman Sachs’s hedge funds sales division and the chief executive of Real Vision, the implementation of a new monetary system is likely to be a boon for Bitcoin.

In a tweet published in the wake of Carney’s comment, the former Wall Streeter explained that while he doesn’t believe Libra will be the cryptocurrency to become the world’s next reserve currency, something similar will take its place.

The implementation of this system, he claims, will be “good for Bitcoin and gold”. In a sub-tweet, Pal further explained his thoughts, responding “exactly” to a comment claiming that a fiat digital asset will as an on-ramp for the cryptocurrency market.

Pal isn’t the first to have mentioned this theory. In a tweet, Jeremy Allaire, the chief executive of Circle, wrote that the launch of Libra (whitepaper) will be a “massive inflection point in [the] global adoption of cryptocurrency.”

It is important to note that this isn’t the only reason why the former Goldman Sachs executive is bullish on the leading cryptocurrency. As reported by NewsBTC previously, Pal claimed that today’s most popular asset classes make no sense for millenials with ten- to 20-year outlooks.

He claimed that with equities and real estate pushing extreme valuations, and bonds posting “virtually zero yields”, the best alternative is something like Bitcoin, which he believes will be the backbone of an alternative/parallel financial system.

Pal added that buying Bitcoin now is like buying bonds and equities in 1982, which is prior to the absurd asset inflation bubble that has inflated since then.

News Source

Continue Reading

Bitcoin

Mining Hashrate on Litecoin’s Network Drops By 28% Since August 5

Published

on

Since the last Litecoin halving event, the Litecoin network has not remained the same. The Litecoin halving event 2019 took place on the 5th of August. The event saw the reduction of the mining reward on the network by 50%, from 25 LTC down to 12.5 LTC. Since the reward on the network was slashed, the mining hash rate on the Litecoin’s network has dropped by 28 percent.

Litecoin Mining Difficulty Has Dropped to 11.4 million from 15.93 million prior to the Halving – Litecoin News Today – Cryptocurrency News Today – Crypto News Update

The mining difficulty of Litecoin (LTC) was 15.93 million a day before the halving of the reward on the network – August 4. However, that number has gradually reduced to about 11.4 million as of August 22. This data was gotten from a BTC.com – a mining pool. According to the data from the mining pool, the hash rate of the Litecoin network has plunged by 28 percent since the block mining reward halving occurred.

Mining difficulty and hashing power are a measure of the amount of computing power being contributed to the network of a digital currency, including securing transactions on the blockchain. Mining difficulty and hash rate also give a snapshot of the rivalry involved for miners looking for the reward of a block.

Litecoin (LTC) Price Today – LTC / USD

NamePrice
Litecoin$72.84-3.17%

Litecoin (LTC) Is Feeling the Aftermath of the Halving – Litecoin News – Crypto News – Cryptocurrency News Update

After the Litecoin halving event, miners on the Litecoin network now receive only 12.5 LTC for mining a block. This reward value is half of what they used to receive prior to the halving event. In addition, LTC USD price has been on a downward trend since the beginning of this month. A few weeks to the halving, LTC to USD price was over the $100 mark. However, the beginning of this month saw LTC to USD price fall below the $100 level. On the day of the halving, the price of Litecoin (LTC) surged to a high of $107. However, the digital currency has plunged heavily below that level and it is now struggling around the $74 range.

Some crypto analysts predicted that the digital currency market would experience turmoil after the Litecoin halving event. The supply of Litecoin has reduced in form of regular block rewards. However, the uncertainty around profitability and mining has caused the price of Litecoin to dip. The founder of Litecoin – Charlie Lee – predicted that an event like this would occur. However, he also said that the readjustment in mining difficulty would smooth things out for Litecoin to a large extent.

News Source

Continue Reading

Bitcoin

Send Token Payouts With Ease Using Bitcoin.com’s SLP Dividend Calculator

Published

on

On August 23, Bitcoin.com released a new application called the SLP Dividend Calculator. The new platform allows users to build a transaction to make dividend payments to any Simple Ledger Protocol (SLP) token holder.

Testing the New SLP Dividend Calculator From Bitcoin.com

Over the last year, SLP tokens have been extremely popular among BCH proponents, and so far supporters have made thousands of unique coins on the BCH chain. As time has progressed, the SLP ecosystem has matured a great deal and there are many third-party solutions supporting the token infrastructure. This week, Bitcoin.com added a new platform to our Tools.Bitcoin.com portal called the SLP Dividend Calculator. The application provides users with the ability to make grouped dividend payments to specific SLP token holders. For instance, if you distributed fractions of an SLP token to a group of three people, then you could enter the token’s ID and send funds to all three holders at a specific point in time. With the ability to pay BCH dividend payments to SLP token holders, the new tool opens the door to all kinds of real-world use cases.

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
To use the new Bitcoin.com SLP Dividend Calculator simply add an SLP Token ID, the desired dividend payment in BCH, and when you want the payment to be sent. After you are happy with the customization, press “Build Tx” to start the process.

After the new tool was released, I decided to test the service in order to highlight just how easy it is to use the new Bitcoin.com SLP Dividend Calculator. I tested the app with my cousin, Andrew Brow, because back in June I sent him some custom SLP tokens called “Andy Coin (ABC)” just to show him how simple it is to create tokens. At the time I created 21 million ABC coins and sent 10 million to my cousin’s Badger wallet. Last night I opened up the SLP Dividend Calculator and pasted the token’s unique ID number into the first window.

Then I decided to pay $1 to the Andy Coin token holders, which means it will be split in half between both of us, because we are both ABC token holders. The SLP Dividend Calculator can pay a lot more than just two addresses, but for this test two was enough. After making sure the SLP token ID and the number of funds I wanted to send were correct, I decided to make the funds available at the last confirmed block height. You can also choose to broadcast it as is in the latest mempool state or you can choose a custom block height as well.

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
After the dividend transaction is built the tool will display all the specifications tied to the payment alongside a QR BCH invoice that uses a unique Pay.Bitcoin.com URI. You can use the Bitcoin.com Wallet to pay the invoice or you can use any wallet that supports Bitcoin Payment Protocol for payments.

The service gives you two choices after the customization is complete: you can either press the button “Start over” or “Build the transaction.” After I chose to build the transaction, the application showed me exactly what would happen after I paid the unique payment invoice. The SLP balances were scanned at block height 597121 and I sent a dividend payment of 0.003176 BCH, which would be paid to the token holders of the Andy Coin token ID number. The platform also told me that two addresses would receive a BCH dividend payment after I paid the QR invoice code through Pay.Bitcoin.com. Any wallet that supports invoices, like the Bitcoin.com Wallet, can pay the invoice by copying the URI scheme or scanning the QR code. I used the Electron Cash wallet to pay the invoice, because I had some available funds in the wallet and I wanted to see exactly how the transaction was built and executed from the client perspective.

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
The Pay.Bitcoin.com invoice can be paid using a wallet that supports invoice payment features like the Bitcoin.com Wallet and Electron Cash.

Opening the Door to a Decentralized Stock Market, Trust Payments and Bearer Bonds

After paying the invoice, the transaction broadcasted and my cousin Andrew and I were both sent $0.50 in BCH each. The transactions confirmed in the following block and the entire test can be seen on Bitcoin.com’s Block Explorer or Simpleledger.info as well. The tool could be used for a variety of interesting dividend payment ideas. For instance, Bitcoin.com’s executive chairman, Roger Ver, recently sent BCH dividend payments to Cashgames.Bitcoin.com Dividend Test Token (CGT) holders for being Cashgames.Bitcoin.com patrons.

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
After pasting the URI code into the Electron Cash wallet you can then choose to execute the dividend payment.

A person with four children could create four separate non-fungible (NFT1) tokens with the kids’ names attached to them and call them Trust Tokens. After a specific block height, the Trust Tokens can be sent a BCH dividend payment in order to leave an inheritance to the children. Or a business could have people invest in the company by initiating an initial coin offering (ICO) and token holders could reap the profits in the form of dividend payments over time.

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
The Electron Cash wallet shows you the specific details of the dividend transaction.

The sky’s the limit when it comes to the variety of concepts that can derive from people using the Bitcoin.com SLP Dividend Calculator. Since the application was launched, a bunch of BCH supporters have tested the platform to send funds to certain token holders. “Fantastic,” one BCH enthusiast wrote on the Reddit forum r/btc. “[This] gives us decentralized stock market… dead easy to use.”

Send Token Payouts With Ease Using Bitcoin.com's SLP Dividend Calculator
This my transaction sending a dollar’s worth of BCH to my cousin’s address and my address.

“Holy crap the new SLP dividend tool is awesome. Just played around with it and sent all holders of the MIS token their share of .01 BCH just to test it out,” another BCH user said on Twitter. “This is magic internet money for reals.” If you have created SLP tokens you can try sending a dividend payment to token holders by using the SLP Dividend Calculator. The process takes less than two minutes to complete and you don’t need to be a tech wiz to use the new tool. Check out the platform at Tools.Bitcoin.com and send your first BCH dividend payment today.

News Source

Continue Reading
Open

Close