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Bitcoin Forming Continuation Triangle From ATH, $50K+ Target

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Bitcoin loves to trade inside triangles. The leading crypto asset by market cap just broke down from a multi-month triangle and spent most of 2018 trapped inside a descending triangle that ultimately broke down.

However, all of this price action may be part of an even larger symmetrical triangle formation dating back as far as Bitcoin’s all-time high, that if confirmed could have a target of over $50,000.

Triangles Inside Triangles And Bitcoin’s Target of $50,000 or More

Bitcoin may currently be in a downtrend, as a result of a triangle that broke down in late December. Technical analysts were torn on if the triangle was a symmetrical triangle, which often suggests continuation is ahead, or a descending triangle, that often leads to a breakdown.

Bitcoin loves to trade inside triangles. The leading crypto asset by market cap just broke down from a multi-month triangle and spent most of 2018 trapped inside a descending triangle that ultimately broke down.

However, all of this price action may be part of an even larger symmetrical triangle formation dating back as far as Bitcoin’s all-time high, that if confirmed could have a target of over $50,000.

Triangles Inside Triangles And Bitcoin’s Target of $50,000 or More

Bitcoin may currently be in a downtrend, as a result of a triangle that broke down in late December. Technical analysts were torn on if the triangle was a symmetrical triangle, which often suggests continuation is ahead, or a descending triangle, that often leads to a breakdown.

The bottom support trend line is what caught the bottom of the bear market and prevented the price of the leading crypto asset from crashing further. It extends all the way back into Bitcoin’s 2017 bull run, months before the top was ever reached, and at the price level of roughly $1,800.

If the massive structure is a symmetrical triangle as the trend lines would suggest, then the target of the triangle pattern would be somewhere around $50,000. The bottom of the enormous symmetrical triangle would be somewhere around $4,200 – where Bitcoin first broke out from in April 2019, sparking a parabolic rally that only recently topped out.

The target also falls in line with Plan B’s highly cited stock-to-flow model, which suggests Bitcoin will reach a new all-time high of $55,000 by the crypto asset’s upcoming halving in May of 2020.

The only downside to this structure is that with so much room left until the apex of the triangle – where triangles most commonly resolve – a trip to the bottom support structure is likely before another retest of the top trend line occurs. A touch of the bottom trend line, depending on when it takes place, can range from $4,200 in the very near term, to as high as current price levels closer toward the apex. The apex of the triangle also extends will into 2021, suggesting that a new all-time high may be aways off. However, the triangle target would be somewhere above $50,000, so if the formation is valid, a new all-time high is just about guaranteed.

Source:newsbtc

Bitcoin

Greyscale Could Get The First Foot In The Door With A Bitcoin ETF

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  • Bitcoin exchange-traded funds (ETF) can be a long drawn out process and has seen the hopes of many of crypto commentators crushed over the past two years.
  • Multiple of these traded funds have already been shut down and rejected but even though they have attempted to be re-applied.

Bitcoin exchange-traded funds (ETF) can be a long drawn out process and has seen the hopes of many of crypto commentators crushed over the past two years.

Multiple of these traded funds have already been shut down and rejected but even though they have attempted to be re-applied, the securities and exchange commission in the United States keeps on turning them down. The Bitwise Asset Management’s revised submission is the latest ETF to reach such a denial.

Despite this, Ryan Selkis of Messari believes that a recent announcement with the securities commission and Greyscale could play a big role in seeing a Bitcoin ETF getting approved later this year.

Greyscale investments had a submitted registration statement on Form 10 with the securities commission a few months ago in November last year. Earlier this week though, the submission statement was actually given the green light and greyscales bitcoin trust became the first digital asset investment spearhead to become a reporting company for the US’s security commission.

The bitcoin trust is a crypto index fund

with the securities and exchange commission giving the organisation the chance to reach a wider audience and especially those of established investors.

Selkis has indicated that the SEC is in compliance with the Form 10 approval which will, in the future, be able to see a bitcoin ETF given the thumbs up. He went on to say:

“I’m at the point where I do believe we’ll finally see the much awaited bitcoin ETF within the next 12-18 months.“

For those that don’t know, Greyscales bitcoin trust is one of the biggest crypto asset managers in the world with two and a half billion dollars assets under management and the trust has got the longest existence in the market. 

This current approval as a reporting company is essentially the securities commission noticing the legitimacy in Greyscales trust. 

Selkis adds:

“All that’s left really is for the SEC to finally recognize that this quasi-public vehicle is already available, liquid, and widely coveted by retail investors, while at the same time, the Commission’s own foot-dragging on an “official” ETF approval is quantifiably hurting those same investors by perpetuating the premium that exists on the publicly floated shares.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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Bitcoin’s soft fork: Final proposal for integrating Schnorr, Taproot published

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Pieter Wuille, a Bitcoin Core contributor, announced on January 24, 2020, that the Schnorr/Taproot proposal was published as BIPs 340, 341, and 342. The proposal is said to have significant implicati

ons on scaling, fungibility, privacy and script innovation

Wuille, further commented on the proposal and added that barring significant issues found in the review, the authors did not intend to make any more semantical changes.

He stated,

“That means that these documents are our final proposal for integrating Schnorr and Taproot into Bitcoin. Whether it gets accepted by the ecosystem, and how, is up to you.”

Commenting on the same, Jake Chervinsky, general counsel at Compound and an adjunct professor at Georgetown University Law Center, tweeted that Schnorr/Taproot was not only a significant upgrade for Bitcoin but was also an important data point for the ongoing study of Bitcoin’s governance model.

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Bitcoin’s economies of scale make it harder to get involved in mining

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Source: Unsplash

  • Bitcoin’s constant deterrent towards true decentralization can be attributed to the centralization of mining, with several people expressing concerns over mining sector concentrating in China in particular. A move taken to make mining more decentralized was made by Blockstream – a bitcoin and blockchain technology firm.

Unveiling Blockstream mining and pool in August 2019, the blockchain firm revealed that they had started Bitcoin mining operations back in 2017. The official blog post stated the reason being:

“[…] parties involved in ASIC manufacture, hosting, and pool operations were becoming a centralizing force and holding back Bitcoin from reaching its full potential. Since then we have scaled up […] expanded our service to provide hosting to clients that include the Fidelity Center for Applied Technology and LinkedIn co-founder Reid Hoffma.”

Speaking on the topic in an interview with Brave New Coin, Samson Mow – Blockstream CSO – stated that the thesis behind this initiative was that “everybody should be mining,” particularly companies in the Bitcoin space.

“It

doesn’t really make sense to not be involved at some level because you have to secure the network, somebody has to secure the network. So either you’re outsourcing that completely or you’re taking part in the security of the network which is what mining is.”

Mow went on to state that the reason why the company stepped into the mining game was the “threats of attacks,” with mining pools and miners calling for a Bitcoin fork. He stated that this threat could be mitigated with Bitcoin companies and users controlling a certain amount of hash rate, adding that their mining initiative contributes to this.

“it’s always going to be hard for people to get involved in mining just because there are economies of scale, for setting up a large operation, being able to negotiate power deals, and just getting that infrastructure piece but the long-term goal is that we would be able to sell hosting to end-users with a few machines […] we would host that for them […]”

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