The year began with people hoping for a bullish Bitcoin market; there were some who thought that Bitcoin would be the one leading the bull run this year, considering that halving was just a few months away. There were others who believed that some of the popular altcoins such as BNB would be the ones that would run the bull rally.
What nobody foresaw was a BSV rally, apart from, of course, the BSV community. The cryptocurrency has been on an upward journey for the past 24 hours, which is certainly an unexpected turn of events. Interestingly, some have even attributed the reason for the cryptocurrency market being painted in green to the coin’s surge.
According to CoinMarketCap, at press time, BSV was trading at $368 with a market cap of over $6 billion. The cryptocurrency has recorded a rise of 59.74 percent in the past 24 hours and a massive rise of 221.35 percent in the past seven days.
This rally even resulted in a flippening, with the cryptocurrency overtaking the fourth position on CMC by beating its nemesis Bitcoin Cash [BCH]. The coin went from trading in the bottom of the top 10 to the top of the top 10 cryptocurrencies.
The Satoshi Affair:
Now, if anything, Craig Wright has stood out in the crypto-community for claiming to be Satoshi Nakamoto, the creator of Bitcoin. This claim, however, has been dismissed by a majority of noteworthy people in the cryptocurrency space, on the basis of not having enough proof.
While Wright did not give up on the Nakamoto title over the past years, the only hope the community clung onto was the Dave Kleiman estate lawsuit. The case that has been ongoing for years and involving billions of dollars saw an interesting turn towards the end of last week.
Wright filed a notice of compliance with the court on January 10, 2019, stating that “a third party has provided the necessary information and key slice to unlock the encrypted file,” adding that the infamous computer scientist had sent a list of “his bitcoin holdings” to the plaintiffs.
This was followed by Dave Kleiman’s estate replying,
“[Craig] provided Plaintiffs with the list of his bitcoin public addresses. The document produced by Craig is simply a list of 16,404 addresses. Craig, however, did not provide any information on the bounded courier, the company he/she worked for, when he/she came, or the message delivered.”
Now, the rise of the cryptocurrency came as a surprise because it is not only unfavoured by the majority of the space for its association with Craig Wright, the self-proclaimed Satoshi Nakamoto, but also by exchanges for making the said claim.
Months after the popular hash war, the coin was a part of a delisting spree in 2019, the aftermath of Craig Wright’s lawsuit spree [remeber the time he sued Peter McCormack and Hodlonaut]. It had to bid goodbye to leading cryptocurrency exchanges such as Kraken, Binance and Shapeshift, a direct hit to its adoption.
While the delisting move saw massive support in the market, with people asking other exchanges to drop the coin as well, now, there are some who claim that this was not a very smart move. The reason, it’s much easier to ‘pump’ the cryptocurrency on smaller exchanges. Joe007, a Twitter user, said,
“This pump was in no small part possible exactly because BSV was delisted from most major exchanges. Much easier to pump shitcoin on 3rd rate exchanges with low liquidity. #UnintendedConsequences”
The user went on to state that the move by Bitfinex was, in fact, the right one, with the exchange not only deciding to not delisting the cryptocurrency but also opening up its margin trading platform for the coin. The Twitter user had expressed,
“By NOT delisting $BSV and providing margin market for it, @bitfinex facilitated price discovery and made pumping $BSV more difficult and costly. Following
This statement was backed by the CTO of Bitfinex, Paolo Ardonio, who added,
“Also delisting a leveraged market would have caused harm to our customers, increasing their risk of liquidation immensely. A wise risk management is an key factor to protect our community”
With the coin recording a massive rise, the community’s attention also shifted to the exchanges that have the highest volume. According to CMC, the top three exchanges in terms of reported volume for the cryptocurrency are Huobi Global, Bibox, and OKEx. Some have suggested that the notable difference between the trade volume and liquidity, stating that low liquidity allows market manipulation.
Interestingly, Molly, Head of Marketing at HashKeyHub, posed a question if OKEx had anything to do with the “BSV price pump,” while posting a picture of the CEO with Craig Wright and nChain team. To this, Cyrus Ip, Research Analyst of OKEx, told AMBCrypto, “OKEx has been very transparent and open in meeting new project leaders, it is rather a common practice in communicating with different market players”
Cyrus Ip also commented on the cryptocurrency’s price surge stating,
“The bullish sentiment seems to remain intact on BSV despite the markets have seen some extreme price actions on the fourth largest cryptocurrency in recent days.“
OKEx’s BSV Long/Short Ratio has lowered to 0.98 on Wednesday, which could indicate that traders with long positions could have higher potential profit, although the edge might not be visible. Moreover, we expect some more FOMO trades would come, and that could make the price even more volatile.”
The Halving Season
Bitcoin is set to see a cut in its block reward this coming May, whereas Bitcoin Cash and Bitcoin SV will be going through halving before the king coin does. Some in the community believe that this could also be one of the factors that contributed to the rise of the cryptocurrency, along with the recent twist in the lawsuit. On 8 January, Certeris Paribus said,
“BCash & SV miners have made <$300 of combined fees over the past 24 hours. After their halvings, new issuance will be cut from a combined $600K to $300K. Miners are already “irrationally” mining these chains at a loss (h/t
@BinanceResearch). Both halvings will occur before $BTC”
The Great Community Reaction:
While the BSV community was seen rejoicing over the rise of the cryptocurrency, it has also received some skeptical response from the rest of the cryptocurrency.
Now, if there’s anything the cryptocurrency market history has taught, is that whatever goes up, will most definitely come back down. However, the factor that is yet to be determined is how long this rise and fall process would take.
Bitcoin (BTCUSD) forecast on January 27 — February 2, 2020
Cryptocurrency Bitcoin (BTC/USD) is trading at 8359.Cryptocurrency quotes are trading above the moving average with a period of 55. This indicates a bullish trend on Bitcoin. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator stripes.
Bitcoin (BTCUSD) forecast on January 27 — February 2, 2020
As part of the Bitcoin exchange rate forecast, a test level of 8000 is expected. Where can we expect an attempt to continue the growth of BTC/USD and the further development of the upward trend. The purpose of this movement is the area near the level of 10020. The conservative area for buying Bitcoin is located near the lower border of the Bollinger Bands indicator strip at 7800.
Bitcoin (BTCUSD) forecast on January 27 — February 2, 2020 implies a test level of 8000. Further growth is expected to continue to the area above the level of 10020. The conservative area for buying Bitcoin is located area of 7800. Cancellation of the cryptocurrency growth option will be a breakdown of the level of 7720. In this case, we can expect further the fall.
Venezuela Still Has the Highest Bitcoin Volumes
Cryptocurrencies are making waves in a number of problematic countries. However, Venezuela, which is notorious for its hyperinflation, is still topping the charts in terms of Bitcoin trading volumes.
In a recent tweet, Larry Cermak, one of the Block’s authors, revealed the top eight countries with the highest Bitcoin trading volumes, according to data from LocalBitcoin. Topped by Venezuela ($305,93 million), it also includes Colombia ($134,22 million), Peru ($45,54 million), Hong Kong (note: it’s not a country, it’s a special administrative unit of China, $21,73 million), Chile ($13,84 million). As well as Argentina ($11,94 million), Iran ($5,81 million), and Egypt ($1,40 million).
In a subsequent tweet, Cermak also showed the growth of LocalBitcoins volume in 2019 compared to 2018. The numbers show that the biggest surge occurred in Egypt (69,8%), Colombia (59,8%) and Peru (47,7%). Yet, Venezuela has also seen a tangible increase — 33,2%
What are the reasons?
Such impressive numbers grabbed the community’s attention. Consequently, assumptions flooded in as to the underlying reasons behind these developments.
A user that goes by the name santi.eth – devcon2020, hacktivist
@DemocracyEarth, believes that the drug cartels are playing a big role here. He writes, “that’s because it’s the money of Maduro’s cronies who launder coke revenue. they are the main users of LocalBitcoins and then later liquidate the BTC for renminbi with a little help from China.”
He adds, “Colombia and Peru in the second place pretty much proves my point.”
But not everyone agrees. Another user suggests that the numbers are high because of large volumes of remittances. He tweets, “Or they are being used by Venezuelan migrants to send money abroad. Colombia and Perú have been the countries to receive the most, so it would check out there as well.
@MattAhlborg might have more data to further this point.”
This view is more conventional, as it has now become clear that cryptocurrencies have become widely used for remittances. Just think of the Mexican case.
Besides, many have pointed out that cryptocurrencies are enticing because they alleviate the plight of citizens that live in hyperinflationary economies. Argentina is an exemplary case.
One does not rule out the other
On the subject of the underlying reasons behind the numbers, it should be noted that there is no right or wrong here. All of the mentioned explanations are perfectly viable and could be concurrently contributing to BTC’s popularity in these countries.
Besides, it’s evident from the list that another explanation should be factored in. It has to do with political turmoil. To remind, in 2019 Hong Kong saw a series of protests that were politically-driven. More recently, Bitcoin trading volumes went up following the US attack that killed a prominent Iranian top general.
Previously, Altcoin Buzz explained how BTC threatens the US dollar.
Bitcoin News Today – Headlines for January 26
- Bitcoin remains trapped beneath its previous support level
- Bitcoin finds strong support at the $8,200 level
- The major resistance of Bitcoin is near $8,500
Bitcoin News Today – The price of Bitcoin (BTC) has been relatively stagnant over the past day, after plunging from its year-to-date high. BTC started correcting lower from its 2020 high of $9,200 against the U.S. dollar. Nevertheless, the price of the digital currency is still in an upward trend and it could find buyers close to the $8k or $7,670 mark.
Bitcoin Finds a New Strong Support Level
After forming a 2020 high close to the $9,200 mark, Bitcoin has been on a downward trend. The price of the digital currency broke below the $9k and $8,800 support levels to enter a bearish zone. The bears were able to push the price of the digital currency beneath the 23.6 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191.
Bitcoin (BTC) Price Today – BTC / USD
The digital currency continued its downtrend and broke below the major $8,500 support level. There are several crucial support levels on the downside close to the $8,200 and $8k levels. However, the major support of the digital currency is close to the $8k level since
Moreover, the 50 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191 is also close to the $8k level. As such, the digital currency remains supported on the downside if the price corrects further.
On the upside, the major resistance of the digital currency is close to the $8,500 mark. There is also a formation of a bullish flag and declining channel with hurdles close to the $8,500 mark on the daily chart of the BTC/USD trading pair. Hence, the world’s most dominant digital currency needs to break over the $8,500 and $8,540 hurdle points to start a fresh increase. Furthermore, a break over the $8,600 mark would pave the way for more gains towards the $9k and $9,200 marks.
Will Bitcoin Break Below the $8k Level?
Bitcoin’s major support is the $8k level. The $8k mark is the major buy zone for the digital currency. If the digital currency breaks below the $8k level, the next major support is close to the $7,670 mark. The previous breakout area was close to the $7,670 mark and it now coincides with the 61.8 percent Fibonacci retracement level of the previous swing from the low of $6,836 to the high of $9,191.
As such, if the digital currency breaks below the $7,670 and $7,600 levels, it could negate the present bullish view. If this happens, the price of Bitcoin might return to the $6,500 support level.