BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ADA, ETC – BTC Ethereum Crypto Currency Blog

The bears are attempting to stall the current rally but bulls are likely to defend the closest support levels, suggesting each dip represents a buying opportunity.

Morgan Creek Capital CEO Mark Yusko believes that Bitcoin should be a part of every investment portfolio. The performance analysis of the past five years shows that even portfolios that only held 1% of their total investments in Bitcoin managed to outperform their competitors. Bitcoin offers a ten-to-one downside capture, which makes it one of the most asymmetric assets that Yusko has ever seen.

The growing popularity of crypto derivatives indicates institutional players are gradually entering the space. The Chicago Mercantile Exchange group Managing Director and Global Head of Equity Index Alternative Investment Products, Tim McCourt, said: “CME Bitcoin futures have surpassed $100 billion in total notional value traded since their launch in December 2017.”

 Daily cryptocurrency market performance. Source: Coin360

Bank of Japan deputy governor Masayoshi Amamiya said in a seminar that the central bank should be ready to issue a central bank digital currency if the public demand for it increases. This shows that several major economies are exploring the possibility of launching a CBDC. 

As January comes to an end, multiple cryptocurrencies have risen sharply but can the bulls sustain the momentum? Let’s study the charts.

BTC/USD

Bitcoin (BTC) has turned down from the minor resistance at $9,600. However, with the 20-day EMA sloping up and the RSI in positive zone, the advantage is with the bulls. We anticipate the bulls to defend the dip to the 20-day EMA at $8,736, which is just below the 200-day SMA at $8,881.

BTC USD daily chart. Source: Tradingview

If the price rebounds off the 20-day EMA, the bulls will again attempt to clear the overhead resistance at $9,600. If successful, the BTC/USD pair is likely to move up to $10,360.89. 

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the pair will weaken and can plummet to $8,240.67. The pair will turn negative if the price drops below the critical support at $7,856.76. The traders can trail the stops on their long positions to $8,200, which can be tightened further if the price dips below the 20-day EMA. 

ETH/USD

Ether (ETH) surged above the $173.841 to $180 resistance zone on Jan. 30 but the bulls have not been able to build on the strong up move. The price has reversed direction from $186.969. 

ETH USD daily chart. Source: Tradingview

There is a strong support at $173.841, which is just below the 200-day SMA at $175. If this support breaks, we expect the bulls to defend the 20-day EMA at $166. If the price bounces off either of these support levels, the bulls will make another attempt to move up to $197.75.  

Contrary to our assumption, if the bears sink the price below the 20-day EMA, the next support to watch out for is the $157.50 to $150 zone. A break below this zone will be a huge negative. The traders can trail the stops on the long positions to $160.

XRP/USD

The bulls are struggling to sustain XRP above $0.2326. This is a negative sign as it shows a lack of buyers at higher levels. There are several supports between $0.2326 and the neckline of the inverted head and shoulders pattern. We anticipate the bulls to defend this support zone aggressively.

XRP USD daily chart. Source: Tradingview

If the price rebounds off the support zone, the bulls will make another attempt to scale above the resistance at $0.25401. If successful, a move to $0.31503 is possible. 

Contrary to our assumption, if the XRP/USD pair breaks below the neckline, a drop to $0.20041 is possible. As the pair is struggling to move up, we suggest traders reduce their risk by trailing the stops on the long positions to $0.21.

BCH/USD

Bitcoin Cash (BCH) came very close to the overhead resistance at $403.88 on Jan. 30. However, the bulls have not been able to scale above this level and the price has once again turned down from it.

BCH USD daily chart. Source: Tradingview

There is a strong support at $360 but if the bears sink the price below this support, a drop to the 20-day EMA at $335 is likely. We expect the bulls to defend the 20-day EMA aggressively. If the price rebounds off $360 or the 20-day EMA, it will increase the possibility of a breakout of $403.88.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $306.78 is possible. If this support holds, the BCH/USD pair might consolidate for a few days. The pair will turn negative on a break below $296.13. The developing negative divergence on the RSI warrants caution.

BSV/USD

Bitcoin SV (BSV) is currently at the support line of the symmetrical triangle. If the bears sink and sustain the price below the triangle, it will be a huge negative. This pattern has a target objective of $159.52 on the downside.

BSV USD daily chart. Source: Tradingview

However, we anticipate the bulls to attempt to stall the decline at $236. If successful, the BSV/USD pair will continue to consolidate between $337.8 and $236 for a few more days. The pair will turn positive above $337.80.

LTC/USD

Litecoin (LTC) broke above the overhead resistance at $66.1486 on Jan. 30, which completed a cup and handle pattern. This bullish setup has a target objective of $96.439. The 20-day EMA is sloping up and the RSI is in the overbought zone, which suggests that bulls have the upper hand.

LTC USD daily chart. Source: Tradingview

Currently, the bears are attempting to sink the price back below $66.1486. If successful, the price can dip to the 200-day SMA at $61.73 and below it to the 20-day EMA at $57.50. If the price rebounds off the 20-day EMA, the bulls will once again attempt to push the LTC/USD pair above $70.50.

However, if the price breaks below the 20-day EMA, a drop to $50 is possible. If the price sustains below $66.1486, it will invalidate the bullish setup. Therefore, we will wait and watch for a couple of days before suggesting a trade in it.

EOS/USD

EOS broke above the overhead resistance of $4.24 on Jan. 30, which was a huge positive. However, the bulls could not sustain the breakout and the price has again dipped back below $4.24. This suggests profit booking at higher levels. 

EOS USD daily chart. Source: Tradingview

The EOS/USD pair can now dip to the 20-day EMA at $3.68, which is likely to act as a strong support. If the price rebounds off the 20-day EMA, the bulls will once again attempt to propel the pair above $4.24.

However, we spot a developing negative divergence on the RSI, which is a bearish sign. If the bears sink the price below the 20-day EMA, a drop to the 200-day SMA at $3.3 is possible. 

BNB/USD

The bulls managed to push Binance Coin (BNB) above the overhead resistance at $18.50 on Jan. 30 and 31 but they have not been able to hold on to the breakout.  This shows a lack of buyers at higher levels.

BNB USD daily chart. Source: Tradingview

If the price sustains below $18.50, the BNB/USD pair will remain range-bound for a few more days. The pair will turn negative on a break below $16.50.

However, if the price rebounds off the 20-day EMA and breaks out of $18.50, a move to the 200-day SMA at $18.79 and above it to $21.8 is possible. For now, the stops on the long positions can be retained at $15.90.

ADA/USD

The bulls are struggling to scale above the overhead resistance at $0.0560221. This shows a lack of buyers at higher levels. Cardano (ADA) can now dip to the next support at $0.0461161. The 20-day EMA is also placed close to this level, hence, we expect the bulls to defend it aggressively.

ADA USD daily chart. Source: Tradingview

If the price bounces off $0.0461161, the bulls will again attempt to push the price above $0.0560221. If successful, a rally to $0.0652290 is likely.

As the ADA/USD pair has not been able to break above $0.0560221, partial profits can be booked at the current levels, if not done already, as suggested in our previous analysis. The stops on the remaining long positions can be kept at breakeven.

ETC/USD

Ethereum Classic (ETC) has turned down from $12.87278. The altcoin can now retest the breakout level of $10, as suggested in our previous analysis. If the price bounces off $10, it might offer a low-risk buying opportunity.

ETC USD daily chart. Source: Tradingview

However, if the retest of $10 fails to hold, the pullback can extend to the 20-day EMA at $9.15. We expect the bulls to defend the 20-day EMA aggressively. A bounce off this level or from $10 will increase the possibility of a move to $14.

Conversely, if the bears sink the price below the 20-day EMA, a drop to $7.7853 is possible. The developing negative divergence on the RSI is a bearish sign. Hence, traders should wait for the uptrend to resume before initiating long positions once again.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Original Article
Author: btcethereumadmin

Litecoin Price Gains 22% as Chart ‘Cup and Handle’ Targets $100 – BTC Ethereum Crypto Currency Blog

Litecoin price (LTC) led the crypto market with a 20% daily gain, leading traders to wonder if a triple-digit rally is in the making just like a year ago.

On Jan. 30 Litecoin (LTC) lit up the charts in both it’s USD and Bitcoin (BTC) pars by rallying more than 20% to secure a spot as the highest daily gainer amongst the top-10 cryptos ranked by market capitalization. 

Crypto market daily price chart. Source: Coin360

Investors will recall that in 2019, Litecoin front-ran the Ether (ETH) and Bitcoin rally by pumping more than 350% from January to June. Thus, the altcoin’s most recent price action is sure to stir up some strong feelings amongst traders who may interpret the altcoin’s trend reversal as the beginnings of a wider crypto-market rally. 

LTC USDT daily chart. Source: TradingView

The LTC/USDT pair broke above the 200-DMA on the highest trading volume seen since April 2019 when the price moved from $59 to $99. In addition to breaking out of the descending channel, Litecoin also surged above a high volume node on the volume profile visible range at $55-$58 to set a weekly higher high at $69.89, a price not seen since September 2019. 

Although the moving average convergence divergence (MACD) flipped bullish on Dec. 21, 2019, it has taken some time for Litecoin price action to heat up and the most recent bull cross on Jan. 29 preceded Thursday’s 20% rally. 

LTC USDT daily chart. Source: TradingView

Traders will also note that Litecoin has completed a massive cup and handle pattern and broke out strongly from the handle. 

Typically, the cup and handle formation serves as a springboard for the continuation of the uptrend; and the projected target of the breakout is often predicted by measuring the distance from the right side peak of the cup and the bottom of the cup. 

In this case, traders that swear by the cup and handle pattern would cite a $90 to $100 target, but we all know the crypto market is driven by an incredibly complex set of ever-changing factors. 

Litecoin now joins the ranks of altcoins breaking above their multi-year descending trendlines and 200-day moving average resistance zones. As for the next steps, traders will need to turn $63 and the 200-DMA to support before the price can move higher.

LTC/BTC also turns bullish

LTC BTC daily chart. Source: TradingView

The price action on Litecoin’s Bitcoin pairing (LTC/BTC) also mirrors that of the LTC/USDT pair although the cup and handle pattern is much more shallow. The LTC/BTC pair broke above the 200-DMA and the high volume VPVR node and now approaches a long-term resistance at 0.007529 satoshis. 

Similar to LTC/USDT, the MACD histogram has flipped positive and the MACD crossed sharply above the signal line. The relative strength index (RSI) is also pushing into the overbought region suggesting the price may need to pull back to support at 0.006736 (sats). 

Traders playing the USDT pair and especially the BTC pair will need to keep a close eye on trading volume as today’s purchasing volume on both pairs set a nearly 7-month high.  

If the price can push above 0.007529 (sats) and 0.008086 (sats) the altcoin would be en-route to set a higher high at 0.009088 (sats). 

Litecoin weekly price chart. Source: Coin360

Currently, Litecoin’s dominance rate compared against all other cryptocurrencies is 1.5%. Bitcoin’s dominance rate now stands at 65.9% and the total cryptocurrency market cap is $258.4 billion. 

Aside from Litecoin, a few other altcoins posted notable gains. ETH rallied 4.02% to finally break above resistance at $175 and is now trading at $182.56. EOS also rallied 4.75% and TRON (TRX) gained 3.02%.

Keep track of top crypto markets in real time here

Original Article
Author: btcethereumadmin

ETFinance Review – Trade Currencies and Other Assets With a Regulated Broker

For both new and experienced traders in the financial markets, finding the right brokerage platform that matches their trading style and demands can be a significant challenge. This is true, even though the task of selecting a broker look simple for anyone who doesn’t understand what it involves.

For instance, even though there are thousands of brokers out there, some of them integrate a higher commission rate on trades than their competitors. There is also the chance that a broker offers account types that do not match the portfolio of a prospective client.

Another challenge could be the brokerage firm not offering a robust collection of tradable assets, or even in some cases, not having any regulatory background. The issue of regulation is especially vital since, in some cases, it gives the trader confidence that their funds will be fully refunded in the case of any unprecedented loss.

Putting the above factors into perspective reinforces our earlier statement that finding a reliable broker can be a significant challenge to those who wish to invest in the financial market. 

Happily, though, there are still a few brokerage platforms that could satisfy the needs of the different classes of investors and day traders. ETFinance, an EU-based broker, is one such broker, and in this article, we’ll review the platform and why it stands out among most of its competitors.

ETFinance Review

Advantages

Fully Regulated and Reputable Brand

While most brokers have a very shady background, especially with regulators, ETFinance isn’t. The platform is operated as a brand under Magnum FX Ltd, a company that is duly registered with the Cyprus Securities and Exchange Commission (CySEC). 

Clearly, obtaining such regulatory status is not an easy feat. Otherwise, every broker out there would do acquire the necessary license. But ETFinance likely took this step to instill confidence in their clients. 

Among other tedious requirements, the company would be subject to regular external audits, file regulatory reports, and maintain an operating capital not less than EUR 750,000. That amount shields the company from suddenly going bankrupt.

For customers, being a member of the Investor Compensation Fund for Customers of Cyprus Investment Firms means that ETFinance will also maintain a EUR 20,000 backup for client funds, to cover for unavoidable losses.

Lastly, trading on ETFinance means trading with a globally reputable firm as the company is an official sponsor of the Real Madrid Basketball team, one of the largest soccer establishments in the world.

Diverse Asset Trading

Traders can invest in nearly every kind of asset on the financial market using ETFinance. The platform offers the option to trade currencies, stocks, indices, commodities, ETFs, and even CFDs based on cryptocurrencies.

Therefore, instead of opening multiple accounts with different brokers to access these markets, you can have them all in one place using ETFinance.

User-Centric Account Options

With a clear understanding that different strokes go for different folks, ETFinance offers multiple account options for different classes of retail and professional traders.

For newcomers, a Silver plan is available, which includes 0.07 minimum spreads, leverage up to 1:30, and full customer support access throughout working hours between Monday to Friday.

Experienced traders can flex their muscles with the Gold plan that has a higher 0.05 minimum spreads and leverage between 1:400/1:500 for professionals. The plan also features, hedging, a dedicated account manager, and access to a plethora of educational tools.

As one would expect, the Platinum plan covers all the benefits of the lower plans and other benefits such as a Free VPS, swap discount up to 50%, and news alerts to monitor price-influencing developments.

Meanwhile, ETFinance also offers an Islamic trading account that caters to those of the Muslim faith, by ensuring that no kind of interest is charged on their trading positions even if they stay overnight. Although some other brokers also claim to provide this kind of account, they often breach customer trust by transferring charges to a different type of fee.

Metatrader 4 and Mobile Support

Both new and seasoned traders enjoy the numerous features of the Metatrader 4 trading platform. The experience does not change with ETFinance as the broker also integrates the popular trading interface.

Clients can also expect to use Webtrader or even the mobile app if they wish to trade assets on the go.

Excellent Customer Support

At the times where you’re encountering technical issues on your brokerage platform, the last thing you want is not having a customer support agent to attend to your inquiries promptly.

Well, it is likely that such technical difficulties will happen on ETFinance. Still, even when it does, users can expect prompt customer service feedback, either via email or the Livechat support feature on the website.

There is also phone support available between 8 to 20 GMT on weekdays, just in case you find that method more efficient.

Educational Tools

Knowledge is power, and the right knowledge is worth even more. On ETFinance, traders get access to a wide range of educational materials in different formats that include webinars, e-books, videos, tutorials, calendars, and full courses.

Note, though, that you must sign up for any plan higher than the basic package to get access to these materials.

Multi-Language Website Support

Unlike most competitors that offer their website content in only English, users can explore ETFinance in six additional languages aside from English. These supported languages include Spanish, Italian, Portuguese, Swedish, Dutch, and German.

Final Words

As we noted at the onset, finding a reliable brokerage service can present a significant challenge because of several factors. 

However, regulated and efficient brokerage firms like ETFinance are some of the most significant contributors to the continued existence and growth of the financial market. These brokers meet the need of traders of different calibers, ensuring swift and secure trade execution at all times.

BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ETC, ADA – BTC Ethereum Crypto Currency Blog

Bitcoin and a few other altcoins have broken above their 200-day SMA, which indicates the possibility of the start of a new uptrend.

Japanese consulting firm Nomura Research Institute, which is an affiliate of financial services giant Nomura Holdings, has launched a tradable cryptocurrency index in partnership with cryptocurrency investment solution provider Intelligence Unit. The index, which is meant for financial institutions, will track a basket of cryptocurrencies and can be traded in US dollars and yen. 

Though several financial companies have launched services for institutional investors, the inflow of money into the crypto space has been slow. Bitcoin options trading on Intercontinental Exchange’s digital asset platform Bakkt has been lackluster with nil volume reported for the past few days.    

Daily cryptocurrency market performance. Source: Coin360

German investment bank Deutsche Bank, in a series of reports on “The Future of Payments” has said that “a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method.”  The report also said that “non-sovereign cryptocurrencies pose a threat to political and financial stability.” However, Deutsche Bank forecasts that cash is unlikely to vanish in the near future.

The crypto markets are gradually picking up steam, which is a positive sign. Can the rally forge ahead or will it succumb to profit-booking? Let’s study the charts.

BTC/USD

Bitcoin (BTC) convincingly broke above the 200-day SMA at $8,893 on Jan. 28, which is a positive sign. The upsloping 20-day EMA and the RSI closing in on the overbought zone indicate that bulls are in command.

BTC USD daily chart. Source: Tradingview

However, the bulls might face minor resistance at $9,600 above which, the rally can extend to $10,360.89. Above this level, the next level to watch out for is the long-term downtrend line, which is close to $11,700.

Contrary to our assumption, if the bulls fail to sustain the price above the 200-day SMA, the BTC/USD pair might dip back to the 20-day EMA, which is likely to act as strong support. A break below $7,856.76 will be a huge negative. Therefore, stops on the long positions can be kept at $7,600.

ETH/USD

The bulls are attempting to push Ether (ETH) above the $173.841 to $180 resistance zone. If successful, the next stop is likely to be $197.75. Therefore, traders can retain the stop loss on the long positions at $150. 

ETH USD daily chart. Source: Tradingview

The price had previously reversed direction from $197.75 on two occasions (marked via ellipse on the chart). Hence, we anticipate this level to act as a stiff resistance once again. The traders can book partial profits at $195 and trail the stops on the remaining position to about $170.

Contrary to our assumption, if the bulls fail to scale and sustain the price above the overhead resistance zone, the ETH/USD pair might dip back into the $173.841 to $157.50 range.

XRP/USD

XRP scaled above the overhead resistance at $0.2326 on Jan. 28. The price can now move up to the minor resistance at $0.25401. We anticipate the bears to defend the zone between $0.25401 and the 200-day SMA at $0.258

XRP USD daily chart. Source: Tradingview

If the price turns down from this zone, it might again dip to $0.2326. However, if the bulls push the price above the resistance zone, a rally to $0.34229 will be on the cards. The 20-day EMA has started to turn up once again and the RSI is in the positive zone, which suggests that the bulls have the upper hand.

The XRP/USD pair will turn negative on a break below $0.20041. Therefore, traders can protect their long positions with stops at $0.1995

BCH/USD

Bitcoin Cash (BCH) is facing profit booking close to the overhead resistance at $403.88. This shows that bears are aggressively defending this level. If the price turns down from this level, it might trade in a large range of $306.78 to $403.88. 

BCH USD daily chart. Source: Tradingview

However, with the 20-day EMA sloping up and the RSI close to the overbought zone, the advantage is clearly with the bulls. If the buyers can push the price above $403.88, the BCH/USD pair might move up to $480 where it is likely to hit a wall. 

Our bullish view will be invalidated if the bears sink the pair below the recent low of $296.13. However, we give it a low probability of occurring.

BSV/USD

Bitcoin SV (BSV) continues to trade inside the $337.8 to $236 range. However, the range has shrunk further and we spot a symmetrical triangle, which usually acts as a continuation pattern.

BSV USD daily chart. Source: Tradingview

It is not advisable to take a trade inside the triangle because it is difficult to predict which way the breakout will happen.

If the bulls can push the price above the triangle and the overhead resistance at $337.8, a rally to $458.74 is possible. On the other hand, if the bears sink the BSV/USD pair below the triangle and the support at $236, a drop to $158 is likely. 

LTC/USD

Litecoin (LTC) is again facing selling close to the 200-day EMA at $62. This shows that the bears are defending this level. If the price turns down from the current levels, it might dip to the 20-day EMA at $55, which is likely to act as a support.

LTC USD daily chart. Source: Tradingview

If the LTC/USD pair bounces off the 20-day EMA, we expect the bulls to make another attempt to clear the overhead resistance at the 200-day SMA and above it $66.1486. If successful, it will complete a cup and handle pattern, which has a target objective of $96.439.

On the other hand, if the bears sink the price below the 20-day EMA and the support at $50, the pair will turn negative. 

EOS/USD

The bulls are facing resistance at the overhead resistance at $4.24. However, the positive thing is that they have not given up much ground. If EOS consolidates near $4.24, it will increase the possibility of a breakout of this level. 

EOS USD daily chart. Source: Tradingview

With the 20-day EMA sloping up and the RSI in the positive zone, the advantage is with the bulls. Above $4.24, a rally to $4.8719 is likely.

However, if the price turns down from the current levels and breaks below the 20-day EMA, a drop to $3.3555 is possible. A break below this support will turn the EOS/USD pair negative.

BNB/USD

The bulls are struggling to push Binance Coin (BNB) above the overhead resistance at $18.50. However, with 20-day EMA sloping up and the RSI in the positive territory, the advantage is with the bulls.

BNB USD daily chart. Source: Tradingview

If the bulls do not give up much ground and the BNB/USD pair consolidates close to $18.50, the possibility of a breakout increase. Above $18.50, the next level to watch out for is the 200-day SMA at $19.89 and above it $21.80.

Contrary to our assumption, if the bears sink the price back towards $16.50, the pair will extend its stay inside the range. A break below $16.50 can turn the tables in favor of the bears. Therefore, traders can keep the stop loss on the long positions at $15.90.

ETC/USD

Ethereum Classic (ETC) is in a strong uptrend. It has easily scaled above $12.04 from where it had reversed direction on Jan. 17. This shows that the bulls are firmly in the driver’s seat. The next level to watch out for is $14 and above it $16.60.

ETC USD daily chart. Source: Tradingview

However, after rallying sharply for the past four days, the ETC/USD pair might take a break and pullback towards the breakout level of $10. A successful retest of this level will give a low-risk buying opportunity

Our bullish view will be invalidated if the bears sink and sustain the price below the breakout level of $10. In such a case, a drop to the 20-day EMA is possible.

ADA/USD

Cardano (ADA) has again entered the top 10 list. The bulls scaled above the overhead resistance at $0.0461161 on Jan. 27, which triggered our buy recommendation given in an earlier analysis. 

ADA USD daily chart. Source: Tradingview

With the sharp rally of the past three days, the ADA/USD pair has reached the overhead resistance at $0.0560221. If the bulls fail to push the price above the resistance, the traders can book partial profits and raise the stops on the remaining position to breakeven.

Conversely, if the bulls easily carry the price above $0.0560221, the next target is $0.0652290. Our bullish view will be invalidated if the pair turns down from the current levels and slips below $0.0461161. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Original Article
Author: btcethereumadmin

BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, ETC, XLM – BTC Ethereum Crypto Currency Blog

Most major cryptocurrencies have risen sharply from their recent lows which shows that bulls are building positions on every dip.

Investors are rushing into various safe haven assets as the coronavirus death toll in China rises and the virus spreads in various Asian countries, the US, parts of Europe and Australia. Usually, the initial reaction to any crisis is to dump all asset classes but gradually, the investors start to differentiate between asset classes as they analyze the effect the crisis can have on them.

After the initial sell-off in Bitcoin and other cryptocurrencies due to the coronavirus scare, the crypto markets have stabilized and are rising once again. The total market capitalization of the crypto universe has risen from a low of about $227 billion on Jan. 24 to over $243 billion. This shows that traders are buying cryptocurrencies.

However, the reaction to such a crisis is generally temporary. If the outbreak gets contained, the crypto markets might give up some of the recent gains as the focus shifts back to fundamentals.

Daily cryptocurrency market performance. Source: Coin360

Major Swiss banking firm Julius Baer has become the latest bank to offer crypto services to its clients. The bank announced the launch of digital assets trading and custodial service to cater to the increasing demand from its clients.

Can the bulls build on the current recovery in major cryptocurrencies and push the prices above their recent highs? Let’s analyze the charts.

BTC/USD

The bulls defended the 20-day EMA support at $8,371, which is a positive sign. Bitcoin (BTC) will now attempt to resume the up move and scale above the overhead resistance at $9,198.61. If successful, a move to $10,360.89 is possible.

BTC USD daily chart. Source: Tradingview

Both moving averages are gradually sloping up and the RSI is in positive territory, which suggests that bulls have the upper hand.

Our bullish view will be invalidated if the bears sink and sustain the price below the 20-day EMA. Below this level, the BTC/USD pair can drop to the critical support at $7,856.76. The 50-day SMA at $7,752 is just below this level. Hence we anticipate the bulls to defend this zone aggressively.

A breakdown of the 50-day SMA will be a huge negative. Therefore, traders can retain the stop loss on the long positions at $7,600.

ETH/USD

Ether (ETH) has rebounded off the 20-day EMA. It is likely to reach the overhead resistance at $173.841, which is again likely to act as a stiff resistance. However, with the 20-day EMA sloping up and the RSI in the positive zone, the advantage is with the bulls.

ETH USD daily chart. Source: Tradingview

If the bulls can sustain the price above $173.841, a rally to $197.75 will be on the cards. We anticipate a stiff resistance at $197.75, hence, the traders can book partial profits close to it.

Our bullish view will be negated if the price turns down from the overhead resistance and dips below the $157.5 to $151.829 support zone. Therefore, traders can hold long positions with stops at $150. We might suggest trailing stops higher after the ETH/USD pair sustains above $173.841.

XRP/USD

Although XRP dipped below the neckline of the inverted head and shoulders (H&S) pattern, the bulls defended the 50-day SMA at $0.21. They have pushed the price back above the neckline on Jan. 26, which suggests buying at lower levels.

XRP USD daily chart. Source: Tradingview

However, the rebound is facing resistance at $0.2326. If the price turns down from the current levels, the bears will again attempt to break it below the 50-day SMA and the $0.20041 support zone.

If the support zone holds, the XRP/USD pair might consolidate for a few more days. The flattish moving averages and the RSI just above 50 level also suggests a range-bound action.

Nonetheless, if the bulls push the price above $0.2326, a move to $0.25401 is likely. If this level is scaled, the rally can extend to $0.31503. The traders can hold their long positions with stops at $0.1995.

BCH/USD

Bitcoin Cash (BCH) has rallied sharply in the past two days and has broken out of the overhead resistance at $360. This is a positive sign as it shows that bulls used the recent correction below $306.78 to build long positions.

BCH USD daily chart. Source: Tradingview

Both moving averages are sloping up and the RSI is close to the overbought zone, which suggests that bulls are back in command.

The next level to watch on the upside is $403.88. If the bulls can push the price above this level, the BCH/USD pair can rally to $480. Our bullish view will be invalidated if the price turns down and breaks below $296.13.

BSV/USD

The bulls are attempting to carry Bitcoin SV (BSV) to the overhead resistance at $337.80. Both moving averages are sloping up and the RSI is in the positive zone, which suggests that bulls have the upper hand.

BSV USD daily chart. Source: Tradingview

A break above $337.80 will be a huge positive. Above this level, the BSV/USD pair can retest the lifetime highs at $458.74.

Conversely, if the bulls fail to push the price above $337.80, the pair might remain range-bound for a few more days. It will turn negative on a break below the strong support at $236.

LTC/USD

Litecoin (LTC) has picked up momentum in the past two days and is likely to move up to $66.1486. The 20-day EMA has started to turn up once again and the RSI is also moving higher in the positive territory. This shows that bulls are in the driver’s seat.

If the bulls can push the price above $66.1486, it will complete a bullish cup and handle pattern that has a minimum target objective of $96.439.

LTC USD daily chart. Source: Tradingview

Our bullish view will be invalidated if the price fails to break out of $66.1486. In such a case, the LTC/USD pair might remain range-bound for a few more days. The pair will turn negative if the bears sink the price below the critical support at $50.

EOS/USD

EOS has bounced sharply in the past two days, which shows strong buying close to the 20-day EMA at $3.47. The 20-day EMA has turned up once again and the RSI is in the overbought zone, which suggests that bulls are in command.

EOS USD daily chart. Source: Tradingview

The bulls will now attempt to propel the price above the overhead resistance at $4.24. If successful, a rally to $4.8719 is possible.

Conversely, if the bulls fail to scale above $4.24, the pair might consolidate for a few days. The EOS/USD pair will turn negative if the price turns down and sinks below the recent low at $3.3555.

BNB/USD

Binance Coin (BNB) remains range-bound between $16.50 and $18.50. The bulls purchased the dip to $16.50 and are currently attempting to carry the price to the resistance of the range at $18.50.

BNB USD daily chart. Source: Tradingview

If the bulls can push the price above $18.50, a rally to $21.80 is possible. On the other hand, if the price again turns down from $18.50, the BNB/USD pair will extend its stay inside the range for a few more days.

The pair will turn negative on a break below the critical support at $16.50. Therefore, the long positions can be held with the stops at $15.90.

ETC/USD

The sharp rally in Ethereum Classic (ETC) has again propelled it into the top ten list. The bulls have pushed the price above the stiff overhead resistance at $10. If the price can sustain above this level, it will signal the start of a new uptrend.

ETC USD daily chart. Source: Tradingview

The first level to watch on the upside is at $12.04 and if this level is crossed, the rally can reach $16.60. The upsloping moving averages and RSI in overbought territory suggests that bulls are firmly in command.

Our view will be invalidated if the price fails to sustain above $10. In such a case, a drop to the recent lows at $7.7853 is possible. The ETC/USD pair will turn negative if the bears sink the price below this support.

XLM/USD

Stellar Lumens (XLM) has bounced off the 20-day EMA. The bulls will now attempt to push the price above the recent highs at $0.066261. If successful, the altcoin can rally to the next overhead resistance at $0.088708.

XLM USD daily chart. Source: Tradingview

Conversely, if the price turns down from $0.066261 once again, the XLM/USD pair can remain range-bound for a few days.

The pair will turn negative if the price turns down and plummets below $0.054954. Below this level, a drop to $0.051014 is possible.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Original Article
Author: btcethereumadmin

Shopereum, empowering e-commerce with blockchain technology and AI

Cryptocurrencies have come along with us for longer than we believe, in fact, 11 years have gone by now since Bitcoin was created. During this time, the great challenge of those of us who are passionate this world has always been the same: adoption. And the path of adoption is slower than many of us wish. One thing is clear: the adoption will come from the hand of two great sectors: gamming and online commerce. All the experts agree about this point which removes any doubt on this question. Well, today we bring you the breaking news about online commerce with Shopereum.

What is shopereum?

Shopereum is a company that offers a wide range of potential solutions related to the e-commerce and cryptocurrency framework. Its commitment is based on a clear aim:accelerating the adoption of cryptocurrenciesto empower merchants and buyers throughout the world. Everything running with its own token (xShop) that works on the Ethereumblockchain.

This solution is largely supported by important portals of blockchain project analysis, as evidenced by its 4.2 / 5 ratio in ICObench. One of the great references of the sector.

Fundamental characteristic of Shopereum

Although it offers many different features, we could say that the Shopereum developer team is committed to being an integrating Marketplace of all kinds of techs related to e-commerce. As a result, the buyer can now access to various markets, regardless of his software and with transparency. On the other hand, the seller can also develop their markets without looking for it in thousands of platforms.

As a basic starting point, Shopereum offers us to buy using the main cryptocurrencies (BTC, LTC, ETH, XRP, etc.), the native xShop token (which offers 5% discount on your purchases) or fiat money. In consequence, Shopereum accelerates adoption and empower the client and seller, thanks to the transparency of the intermediary.

Joining the pieces

In recent years, the biggestproblem in the e-commerce for cryptocurrencies has always been the same: adoption and online stores are not linked, in other words, where we have online stores developed to accept cryptocurrencies, we have few users and small marketing budgets; and where we have a wide user base (Amazon, AliExpress, etc.) we have no option of payment with cryptocurrencies. So far, all the approaches in this regard are based on wallets and extensions or plugins for browsers that allowed you to pay with cryptocurrencies in some of these popular websites. Nevertheless, they are just stopgap measure, not anultimate solution.

The aim of Shopereum is to go one step further and make all that integration into a single Marketplace within the platform itself.

The business model

Therefore, Shopereum can be defined as theMARKET in capital, integrator of markets or second level Marketplace.

Under the umbrella of Shopereum, the owners of small online stores can easily integrate,thus allowing access to a much larger base of potential customers. In addition, apart from solving some technical problems thanks to receiving Shopereum technology, they can also set their payment platform to receive payments in anycurrency type. It is all the more advantageousas it converts all cryptocurrencies to fiat at the same time the purchase is made, applying the exchange rate in effect at that time.

Buyers have the advantage of having many markets grouped under the same portal and with the possibility of obtaining additional discounts (payment with xShop token) and using their cryptocurrencies to buy. Although we do not forget thatfiat money will also be accepted, considering the strategy of trying to reach the whole world.

In addition, Shopereum tells us that this drop-shipping strategy – which in itself would be a breakthrough on current cryptocurrency e-commerce options – will be complemented and improved with an Artificial Intelligence (AI) tool which will optimize searches to help us find the best products at the best prices within any of the integrated markets.

The xShop token starts trading

Technologically, Shopereum has developed its platform on the Ethereum blockchain. The operating token of the platform is the xShop token and will allow us to obtain discounts. These are its basic features:

  • Name: Shopereum token v1.0
  • Symbol: xShop
  • Technology: ERC-20 token
  • Total amount: 600,000,000
  • Free-float in circulation: 180,000,000

The developers estimate that the platform is running in August 2020, nevertheless the token starts trading on January 25!

So, xShop tokens can be bought and sold in the Coineal exchange on January 25, and Lukki exchange on February04. However it will not be until March when the tokens can be deposited and removed, when their implementation on the platform has been well tested. This is a very common defensive maneuver in cryptocurrency exchange houses.

To celebrate this launch, we have a trading contest on the Coineal platform itself. A total of 250 xShop will be distributed in a classification that will cover the first 10 of the contest (starting with 100 xShop for the first, 50 xShop for the second, 30 xShop for the third, and 10 xShop for those classified from 4 to 10).

Summary

We will have to be very attentive and closely analize the evolution of this project because it promises a great revolution. They have a very ambitious roadmap and a very well defined value proposal.

Official links

 

Litecoin Creator Proposes Miners Voluntarily Donate 1% for Development – BTC Ethereum Crypto Currency Blog

Litecoin creator Charlie Lee recently posited the concept of LTC miner pool donations to help boost funding.

Litecoin (LTC) founder Charlie Lee proposed mining pool donations as a new funding method for cryptocurrency development.  

“I think a better way to fund development is mining pools voluntarily donate a portion of the block reward,” Lee said in a tweet on Jan. 24, adding:

“How about Litecoin pools donate 1% (0.125 LTC) of block rewards to the @LTCFoundation? If every miner/pool does this, it amounts to about $1.5MM donation per year!”

With 1% donated on a consistent basis, Lee’s suggested solution would provide enough funding for Litecoin permanently going forward, Lee confirmed to Cointelegraph.

He explained:

“At current LTC price, 1% of block rewards is about 7x Litecoin Foundation’s yearly expenses. Even if a small percent of miners are generous enough to donate, the foundation would be able to put it to good use by funding developers to work on Litecoin Core, Mimble Wimble, LiteWallet, LN wallet, hosting the yearly Litecoin Summit, and pushing for adoption of Litecoin by merchants and users.”

Lee also confirmed such donations are voluntary, adding, “It wouldn’t be right if it wasn’t voluntary.” 

Funding issues

Garnering enough capital to run and operate a business can be difficult. The situation becomes more complicated when the business or project aims for decentralization. 

Rumors circulated in late 2019 regarding the Litecoin Foundation’s potential bankruptcy, which Lee denied in an Oct. 13 tweet. “Don’t listen to stupid fud and lies,” Lee said. “We have enough money to last 2 years.”

Lee’s 1% voluntary donation proposal comes after Bitcoin Cash (BCH) proponents Roger Ver and Jihan Wu suggested an “infrastructure funding plan,” requiring miners to pay 12.5% of block rewards to an operation in Hong Kong, Cointelegraph reported on Jan. 24. 

New concepts

In response to 51% attack concerns, Dogecoin merged its mining with Litecoin in 2014, enabling simultaneous mining of the two assets. Notably, this joint Litecoin and Dogecoin mining impacts Lee’s new mining pool donation concept. 

“Currently with merged mining of Dogecoin and other Scrypt coins, miners make 105%+ of block rewards,” Lee noted in a second tweet. “So 1% is a reasonably small amount to give back towards funding a public good.” 

Finally, Lee also toyed with the idea of miners choosing which Litecoin project their funds will go toward, asking the community for their opinions on his ideas as a whole.

“It’s important that miners can choose to support other Litecoin organizations as well,” he told Cointelegraph. “Miners should donate to the organizations that want to help out.”

Original Article
Author: btcethereumadmin

BTC, ETH, XRP, BCH, BSV, LTC, EOS, BNB, XLM, ADA – BTC Ethereum Crypto Currency Blog

The bulls have held the immediate support level on most major cryptocurrencies, which is a positive sign. This suggests that the sentiment is to buy the dips.

The International Monetary Fund chief economist Gita Gopinath said in a panel discussion at the annual World Economic Forum (WEF) in Davos that Facebook’s Libra was a major trigger that made people reconsider the status of the dollar as the reserve currency of the world. Brazil’s Economy Minister Paulo Guedes, who was also a part of the panel, said that “the Libra episode is just evoking a future digital currency.”

In order to help policymakers understand the central bank digital currency (CBDC) better, the WEF in collaboration with some of the world’s major central banks and experts from over 40 institutions have created the CBDC Policy‑Maker Toolkit. This will help the central banks understand the pros and cons of a CBDC and guide them through its design. 

The WEF also announced the formation of a Global Consortium for Digital Currency Governance, which will provide a framework to regulate digital currencies, including stablecoins. This shows how the central banks and regulators around the world are gradually gravitating towards the new technology. 

Daily cryptocurrency market performance. Source: Coin360

Ripple CEO Brad Garlinghouse meanwhile hinted at an initial public offering (IPO) within the next 12 months. He believes that many other crypto and blockchain firms are likely to go down the IPO route in 2020. Some firms believe that public listings on traditional stock exchanges might attract institutional investors who have been slow to enter the nascent asset class due to various regulatory concerns.

Though the crypto space is witnessing a lot of activity on the fundamental front, the price is yet to share the enthusiasm. Let’s see if we find any buying opportunity after the recent weakness.

BTC/USD

Bitcoin (BTC) dipped below the 20-day EMA at $8,350 today but quickly turned around. This shows that the bulls are buying on dips rather than panicking and dumping their positions, which is a positive sign.

BTC USD daily chart. Source: Tradingview

If the bounce sustains, the BTC/USD pair can move up to the 200-day SMA at $8,966, which is likely to act as stiff resistance once again. However, if the bulls can push the price above the 200-day SMA and $9,200 resistance zone, a rally to $10,360.89 is possible. 

However, if bears defend the overhead resistance level, the pair might remain range-bound for a few more days. The flattening 20-day EMA and the RSI just above the midpoint also suggest a consolidation in the near term.

The pair will turn negative if the bears sink the price below the 20-day EMA and $7,856.76 support zone. Therefore, traders can keep the stops on their long positions at $7,600.

ETH/USD

Ether (ETH) has bounced off the strong support at $157.50. The 20-day EMA is placed just below this level. Hence, we expect the bulls to defend this support aggressively. The biggest altcoin is now likely to move up to $173.841.

ETH USD daily chart. Source: Tradingview

The 20-day EMA is flattening out and the RSI is slowly dropping towards the 50 levels, which suggests a range-bound action for a few days. The ETH/USD pair will pick up momentum after it breaks out of the $173.841 and $180 resistance zones.

Contrary to our assumption, if the bears sink the price below the 20-day EMA, there is minor support at $151.829. If this support also cracks, the ETH/USD pair will turn negative. Hence, traders can retain the stops on their long positions at $150.

XRP/USD

XRP had dropped below the neckline of the inverted head and shoulders (H&S) pattern today, which is a negative sign. The failure of the bulls to defend the critical support at the neckline shows a lack of buyers at these levels.

XRP USD daily chart. Source: Tradingview

The bulls are currently attempting to push the price back above the neckline. If successful, it will indicate that the current break below the neckline was a bear trap. The XRP/USD pair will pick up momentum on a break above the 200-day SMA.

Conversely, if the price fails to sustain above the neckline, a drop to $0.20041 is possible. If this support also cracks, the pair can decline to $0.18339. Traders can set a stop-loss on their long positions at $0.1995.

BCH/USD

Bitcoin Cash (BCH) turned down sharply on Jan. 23 and broke below the 20-day EMA at $303 today. However, buyers stepped in at $296.13, which is just above the 50% Fibonacci retracement level of the recent rally.

BCH USD daily chart. Source: Tradingview

The sharp bounce off the intraday lows indicates strong demand at lower levels. The bulls will now attempt to carry the price to $360. This level is likely to act as a stiff resistance once again. The 20-day EMA is flattening out and the RSI is just above the midpoint, which suggests a consolidation for a few days.

On the downside, there are a few support levels between $306.78 and $270.15. However, if these break down, and the bears sink the BCH/USD pair below $270.15, it will be a huge negative. We will wait for the current bounce to sustain before recommending taking a trade in it. 

BSV/USD

Bitcoin SV (BSV) turned down from the overhead resistance at $337.80 on Jan. 22 but bounced off the support at $236. This shows that the bulls continue to accumulate on dips to $236.

BSV USD daily chart. Source: Tradingview

The bulls will now attempt to carry the price to $337.80, which is likely to again act as a stiff resistance. If the price turns down from $337.80, it will remain range-bound for a few more days.

Contrary to our assumption, if the bears sink the pair below $236, a drop to $200 and below it to $173.66 is possible. We will wait for a reliable buy setup to form before proposing a trade in it.

LTC/USD

The failure to scale above $66.1486 dragged Litecoin (LTC) back to the critical support at $50. The long wick on the candle shows buying by the bulls at lower levels. This is a positive sign as it shows that buyers are keen to jump in at lower levels.

LTC USD daily chart. Source: Tradingview

We spot a developing cup and handle pattern that will complete on a break above the overhead resistance at $66.1486. This pattern has a target objective of $96.439.

However, if the bulls fail to push the price above $66.1486, the LTC/USD pair might remain range-bound for a few days. The pair will turn negative on a break below $50. We will wait for the price to sustain above the 20-day EMA before recommending a trade in it.

EOS/USD

The bounce from the 200-day SMA on Jan. 19 was short-lived, which is a negative sign. It shows a lack of demand at higher levels. EOS again dipped back to the 200-day SMA, which triggered our stop-loss on the remaining long positions kept at $3.4. 

EOS USD daily chart. Source: Tradingview

However, the bulls have again defended the 200-day SMA and are attempting a rebound. If successful, the buyers will attempt to carry the price to $4.24.

Conversely, if the bears sink the price below the moving averages, the EOS/USD pair can dip to $3. We will wait for a new buy setup to form before proposing a trade in it once again. 

BNB/USD

Binance Coin (BNB) continues to trade inside the $16.50 to $18.50 range. The bulls again bought the dip to $16.50 today, which shows demand at lower levels. This is a positive sign. The price might once again move up to $18.50, which is likely to act as a stiff resistance.

BNB USD daily chart. Source: Tradingview

A break above $18.50 is likely to push the price to the 200-day SMA at $20.23 and if this resistance is crossed, a move to $21.80 is possible. The longer the price stays inside the range, the stronger the eventual breakout will be. 

Conversely, if the bears sink the BNB/USD pair below $16.50, a drop to the next support at $14.5201 is possible. The traders can retain the stops on their long positions at $15.90.

XLM/USD

Stellar Lumens (XLM) has dipped to the 20-day EMA. This triggered our suggested stop-loss on the long positions at $0.056. If the altcoin bounces off the 20-day EMA, the bulls will attempt to push the price above the 200-day SMA.

XLM USD daily chart. Source: Tradingview

A move above $0.0665 is likely to attract further buying that can propel the price to $0.088708. On the other hand, if the bears defend the 200-day SMA, the XLM/USD pair might remain range-bound for a few more days.

The pair will turn negative on a break below the 20-day EMA. Below this level, a drop to $0.051014 is possible. We will wait for a new buy setup to form before suggesting a long position once again.

ADA/USD

Cardano (ADA) turned down from the overhead resistance at $0.0461161 on Jan. 23, which shows that the bears are defending this level aggressively. However, on the downside, the price is attempting to bounce off the 20-day EMA, which suggests accumulation by bulls at lower levels.

ADA USD daily chart. Source: Tradingview

If the buyers can push the price above $0.0461161, the ADA/USD pair is likely to pick up momentum and rally to $0.0560221. Therefore, we suggest traders initiate long positions as suggested in our earlier analysis.

Conversely, if the price again turns down from $0.0461161, it can dip to $0.040 and remain range-bound in this range for a few days. The pair will turn negative on a break below $0.040. 

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Market data is provided by HitBTC exchange.

Original Article
Author: btcethereumadmin

Litecoin ‘Digital Silver’ Narrative Is Proven Wrong, New Data Shows – BTC Ethereum Crypto Currency Blog

Data shows Litecoin is not “digital silver” but a slight correlation between LTC and silver can provide insight into the digital asset’s future returns.

The start of 2020 has seen considerable gains in the cryptocurrency market as a whole. Recently, Bitcoin (BTC) price reached a 2-month record high crossing above the $9,000 mark as well as other cryptocurrencies such as Litecoin (LTC) reaching $62.80 which is the highest price seen since mid-November 2018.

Cryptocurrency market weekly overview. Source: Coin360

Cryptocurrencies’ volatile behavior is one of the main concerns raised by researchers and it complicates the argument that Bitcoin should be classified as a traditional investment asset and that it is a reliable store of value.

Amid those discussions, Bitcoin has been closely compared to gold, while Litecoin has been associated with being “the silver to Bitcoin’s gold.”

As reported by Cointelegraph, new data suggests that the actual correlation between Bitcoin and gold is not significant, as well as gold’s explanatory power of Bitcoin returns. Nevertheless, Bitcoin is still frequently compared to gold, particularly as a potential safe-haven asset.

Since October 2019, silver prices have approached new record-highs. But does the latest data support the argument that Litecoin is the silver of cryptocurrencies? Could Bitcoin instead of Litecoin be closer to silver than to gold?

Silver prices since October 2019. Source: BullionVault

Is Bitcoin or Litecoin price action closer to silver?

Our data — from May 2013 until December 2019 — shows that Bitcoin and Litecoin returns are very positively correlated (0.67) with 1 implying a strong positive correlation and 0 meaning that the assets are not correlated. A reading of -1 shows that the assets are completely inversely correlated.

Meanwhile, the correlation between silver and Litecoin returns is close to zero (0.026), which is similar to Bitcoin’s correlation with silver (0.0025).

We further analyzed the correlation between the lagged silver returns and the two assets. In other words, the correlation between yesterday’s silver returns and today’s Litecoin and Bitcoin returns were compared.

However, the results are even more discouraging, since both show negative correlations with the lagged silver returns. Bitcoin’s correlation was -0.03 while Litecoin’s was -0.05.

April 2013-December 2019 correlation between silver, Bitcoin and Litecoin returns and silver’s lagged returns

Analyzing the rolling correlations provides a wider view and each data point in the diagram above refers to the correlation of silver and Bitcoin returns (BTC/silver), and between silver and Litecoin returns (LTC/silver) over the last 30 days.

One can see that the correlation between Bitcoin and silver, and Litecoin and silver, is very similar across time during both negative and positive periods.

Rolling correlations between Bitcoin/silver, and Litecoin/silver from May 2013-December 2019

Hence, both Bitcoin and Litecoin have a small correlation and similar relationship with silver. Thus, the Litecoin as “digital silver” narrative is challenged by these very low correlation values. Moreover, it’s no surprise that Bitcoin has surpassed both Litecoin and silver as the best investment option over the past ten years.

Cumulative Bitcoin, Litecoin and silver returns from investments made between May 2013 and January 2020

The relationship between digital assets and commodities from 2018 and 2019

For investors, a closer look at these relationships over the short-term can help draw better insights for future investment strategies. In 2018, the correlation between silver for both assets is slightly higher than the first results from May 2013 to December 2019, albeit still very low. Bitcoin is correlated at 0.05 with silver and Litecoin is correlated at 0.09.

Whereas in 2019, Bitcoin and Litecoin had opposite correlations to silver with Bitcoin and silver correlation being 0.03 and the Litecoin and silver correlation being negative at -0.02. Even the correlation between Bitcoin and Litecoin returns is lower than in other samples (0.74).

Nonetheless, both results are very close to 0, which leads us to believe that the correlation between these assets is not representative enough to draw reliable strategies for investors.

Correlation in 2019 between Silver returns, BTC returns, and Litecoin returns 

Is silver a useful predictor of Litecoin and Bitcoin returns?

The data, however, suggests that silver returns may work as a predictor for future Litecoin returns. From the model employed, if silver’s return rose by 1% yesterday, we can expect that Litecoin returns may decrease by -0.232% today. This statistically significant result can lead investors to assume that silver returns may work as a predictor for future Litecoin returns in a negative way. Similar outcomes were not found in the case of Bitcoin, however.

The ability to predict prices has been the holy grail of financial markets, hence the importance of this relationship between returns. Even though both crypto assets show a very low correlation with silver, the results for the lagged returns shed some light on the relationship between silver and future Litecoin returns.

Looking forward, investors may want to look at silver returns to draw strategies when buying/selling Litecoin based on this past silver return’s analysis. However, any strategy has to consider the fast-changing crypto market environment and careful analysis over different time periods, which can cause different conclusions.

Nevertheless, these findings can help us to conclude that Litecoin as the digital equivalent of silver is far-fetched due to the low correlations. However, we do highlight the value of investigating the digital silver narrative by establishing a new connection between returns, which is crucial for investors.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Original Article
Author: btcethereumadmin

6 Blockchain Startups Taking on the Freelancer Economy


Freelancing is an excellent starting point for the discussion about the impact of technology on the evolution of a highly active and entrepreneurial microcosm within the grand professional workforce.

A decade ago, freelancing was seen as somewhat of an island of misfit toys – people who were otherwise barred from the larger corporate workforce either by job qualifications, geographic location, or discriminations such as tattoo sleeves, or those crazy few that decided to start their own business.

Today, the blossomed freelancing ecosystem has shaken up the traditional professional itinerary.

Instead of working at the local restaurant or bar, college students are opting to monetize their nascent professional skills by programming or writing web content for $20-$45 an hour. It’s no shocker that many in their early 20s are jumping on the digital nomad rocketship and traveling the world and making a full year’s salary at their own pace and hours.

A 2017 study by Upwork and Freelancers Union estimates that 57.3 million Americans (roughly 36% of the U.S. workforce) are freelancing in some capacity, and add $1.4 trillion to the economy every year, a jump of nearly 30% since 2016.

Extrapolating this current growth rate puts the majority of the U.S. into the freelance spectrum by 2027.

Skilled professionals are entering the freelance economy to soften the blows of of post-gentrified San Francisco and New York City rent, if not to at least make a few extra dollars at $65-$150+/hour.

Internet-savvy labor-seekers all over the world is also able to earn a much higher wage in comparison to their native wages. Take this writer’s motherland of Bulgaria, where the monthly minimum wage is about $290 USD (235.20 EUR). A simple web content gig that averages around $15/hour at a typical 8-hour workday puts this employee at 12x the minimum wage line at $3,600/month (2,900 EUR). That’s a lot of shkembe chorba and Kamenitza beer.

63% of freelancers stated they freelance by choice, an 18% jump from 2014 to 2017. Additionally, 63% freelancers noted that they prefer the security of a diversified portfolio of clients rather than a single employer.

Upwork infographic

Image from Upwork

The rise of the freelance economy and the seismic shift of talent gave birth to intermediaries that are able to make an absolute killing connecting freelancers and clients.

Intermediaries such as Upwork, Toptal, and Fiverr act as talent marketplaces, escrow agents to release payment when the freelancers and clients mutually agree on the completion of work, and as a sort of search engine to place the “Top Rated” freelancers at the top of the new job listing suggestions.

Upwork: Target Practice for Blockchain Startups

To put this opportunity in perspective, let’s take a look at Upwork, one of the world’s most popular freelancing platforms.

Upwork home page

Upwork’s home page.

Upwork as we know it today was born in 2015 as a rebranding from the merge of Elance (founded 1999) and Odesk (founded 2003). With an estimated over 9 million registered users (much fewer active) in 180 countries with over $1 billion in annual freelancer billings, Upwork is largely regarded as a pioneer of the freelance economy.

Upwork makes for excellent target practice for blockchain startups because it has been able to accomplish what few freelance platforms have failed to do: create a trusted platform with a bustling ecosystem of active and satisfied users. For every Upwork, there are dozens of terrible and scammy platforms charging higher fees without offering nearly the same experience as Upwork.

Upwork acts as an intermediary and escrow agent and charges freelancers a fee on every transaction (20% up to $500, 10% from $500 to $10,000, 5% $10,000+, and clients a payment processing fee of 2.75%.) Upwork earns an estimated revenue of around $68,826,417 per year, the majority of which comes from these fees.

A single user making $65,000/year from multiple clients on the Upwork is making Upwork anywhere from $3,250 to $13,000 every year with very little upkeep – not too shabby for an algorithm!

Whatever human upkeep required for mediation and customer support happens via chat through Upwork’s support staff, which is most likely a network of inexpensive scripted virtual assistants from around the world.

Thousands of full-time freelancers with active rosters of clients and steady streams of work will happily express gratitude to Upwork for getting them started on their journey. The platform presents utopia for ambitious skilled talent with a penchant for taking full agency of their livelihood, setting their own hours and contract terms, and working wherever they choose – whether that be on a beach in Thailand or the coffee shop down the street from Mom’s house.

Unfortunately, all that glitters is not gold. Thousands of freelancers that put the full weight of their subsistence on the platform have complained of having the floor pulled from underneath them by unfair account freezes, reputation-shattering negative feedback from bad apple clients, as well as notoriously bad customer support.

Even a pleasant experience with Upwork doesn’t guarantee loyalty. Freelancing is not without its expenses. Rent, food, health insurance, co-working spaces, plane tickets, and the vices that come with an essentially self-ostracizing career path add up.

With freelancing also comes the imminent threat of one of your core clients falling through, leaving you staring down mounting fixed expenses and scrambling to make up the difference.

At some point, freelancers need to make the business decision of whether having 10% to 20% of their paychecks going to an intermediary is worth it. That 10% to 20% could be the difference between a new car, a down payment on a home, or health insurance. 

High fees are a huge reason why freelancing platforms like Upwork are seeing an exodus of their otherwise loyal users into off-site agreements where trust is hardly a factor with long-term clients they have become familiar with and from whom they can reliably expect work.

Without a need for Upwork’s core value proposition of trust, freelancers can shift their entire business to Gmail/Skype and Paypal or crypto. Clients also don’t mind using their own preferred methods of communication and saving on the 2.75% payment processing fee.

What attracts millions of freelancers and clients to the platform is the concept of trust and the enforcement of it, a value proposition that has become existentially threatened by a “trustless” blockchain.

While freelancing platforms are already caught in a vice with their user retention dilemma, dozens of blockchain-based competitors offering a smart-contract solution have come out guns-blazing.

The overhanging threat of disruption looms over any intermediary in a post-blockchain world, and the high traffic and easily monetizable freelancing economy is ripe for the taking.

Canya.io is the closest upcoming platform to Upwork. This blockchain-powered marketplace of services raised over $12m AUD in their November 2017 ICO and claims to have over 7600 users and 3,400 service providers.

CanYa's home page.

CanYa’s home page.

CanYa will offer essentially the same services as traditional freelance platforms with fees set around 1% carried out in the native utility token CanYaCoin. The CanYaCoin is used to power the network of transactions as well as incentivizing platform growth and user behavior.

What sets CanYa apart from online freelancer platforms (other than the advantages of blockchain and a decentralized network) is that it also aims to provide in-home services, such as hiring a plumber.

For more information, check out the CanYa website and whitepaper.

Although Steemit isn’t necessarily a platform for freelancers to connect with clients, it leapfrogs past the need for clients by offering content producers a means of monetizing their content.

The typical engagement between web content freelancers and is as follows: 

The traditional content monetization model involves leveraging content for traffic in hopes of generating advertising revenue or affiliate commission. Digital marketing savvy entrepreneurs with an understanding of what sorts of content performs well, how it should be written, how it should be optimized for search engines, etc. hire freelancers to create the content.

Freelancers receive a contract for something like “24 Benefits of CBD Oil to Cure Your Hangovers” and submit the article to the client for approval. If approved, the article goes live, and the clients utilize their skills to drive traffic to the content (or they hire someone that can). Hundreds or thousands of interested users read the article. The site owner gets paid by the advertising revenue from AdWords, a commission from the affiliate links on the site, or other sorts of partnership deals.

Steemit's home page

Steemit’s home page

Steemit essentially cuts out the need for the intermediary client and allows freelancers to post their content on https://steemit.com/, where users will read, comment, and engage with the content.

The content creators are then rewarded in Steem in proportion to the number of people reading and engaging with it based on the amount of “Steem Power Units” of that particular user.

The Steemit platform is architected to generate new units of “Steem” in order to keep the network running so that there will never be a need for third-party advertising or affiliate marketing to keep the lights on.

Ethearnal is a blockchain-based freelance platform that primarily focuses on tokenizing reputation as its main differentiator. It also provides the same money escrow and moderation services.

Ethearnal's homepage

Ethearnal’s homepage

The reputation of freelancers is calculated based on how much ERT they have. Freelancers then “stake” an amount of ERT set by a client in order to enter into the particular smart contract.

Employers must stake ERT to hire freelancers, and moderators must stake ERT to solve disputes.

Whenever a contract finishes without the need of arbitrage, the Ethearnal platform uses $ of the contract to purchase ERT tokens on the open market to reward both the employer and freelancer with 0.5%, allowing them to receive reputation boosting tokens in proportion to the contract value.

To learn more, check out the Ethearnal site and whitepaper.

The Origin Protocol seeks to decentralize the entire sharing economy and has the likes of Uber, Airbnb, Fiverr, and Getaround in its crosshairs. Although the scope of its mission is broader than the laser-focused freelancer model, it plays an arguably larger role in the conspiracy to undermine the entire sharing economy, which is estimated to grow to $335 billion by 2025.

Origin Protocol's home page.

Origin Protocol’s home page.

By using the Origin Protocol, businesses or individuals can conduct their operations on the decentralized web. CanYa, for example, is building their marketplace of services for the gig economy on the Origin Protocol.

Origin Protocol

To learn more, check out the Origin Protocol site and whitepaper.

OpenBazaar is the world’s largest decentralized marketplace and charges no platform fees.

Spun out of the winning idea of a darknet marketplace of a Toronto hackathon in 2014, OpenBazaar was made to be completely peer-to-peer with no central controlling organization.

OpenBazaar's home page.

OpenBazaar’s home page.

The founders then started a company called OB1 with $1 million of venture capital investments from Union Square Ventures and Andreessen Horowitz. OB1 received a second round of investment for $3 million in the fall of 2016.

OpenBazaar functions as a sort of global Craigslist that also allows freelancers to connect with new clients.

Users are able to pay with over 50 cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Zcash, and Fash, and sellers are able to receive payment in Bitcoin, Bitcoin Cash, or Zcash.

To find out more, check out the OpenBazaar site.

Moneo is a blockchain-based freelancer platform that vets and verifies its freelancers with a primary goal of providing an array blockchain experts for hire.

Moneo's home page.

Moneo’s home page.

To learn more, check out the Moneo site and whitepaper.

Blockchain Out the Woodwork

Soon after the popularization of the awareness of blockchain’s potential came a near commoditization of blockchain-based platforms.

Iterations upon iterations on the “blockchain-based smart contract freelance platform” concept started rolling out en masse with names that aren’t necessarily trying to compete in the Creativity Olympics.

Blocklancer is offering a Distributed Autonomous Job Marketplace (DAJ) run on the Ethereum blockchain. This platform aims to be entirely self-regulatory with minimal fees and a decentralized tribunal system to guarantee fair dispute settlements and minimize fraud.

Coinlancer does the same thing and is hardly anything more than a smart contract platform draped with a user-friendly experience.

As is in the traditional Silicon Valley tech entrepreneur world, countless companies will start seeking a product-market fit in a monetizable niche, but this time with blockchain as a competitive advantage over the old guard.

Final Thoughts – Are Blockchain-Based Freelancing Platforms the Future? 

Theoretically, a trustless blockchain appears to hold the keys to freelancer emancipation, or at the very least potentially an impetus to a substantial restructuring of the current king’s ransom high fee structure imposed by intermediaries.

However, the keyword is theoretically.

Platforms like Upwork have spent millions in simplifying the user interface and user experience for all parties, as well as educating the general population on the ease of use and benefit of the freelancer economy.

Sure, a startup can reverse engineer of the UI/UX of the reigning platforms, but the challenge of branding is real.

The lowest hanging fruit for new platforms is users who have the time, flexibility, and patience to test new options, which isn’t necessarily a large demographic.

Blockchain startups certainly have their work cut out for them on the user acquisition front, especially now since Facebook and Google have both taken hard stances against cryptocurrency advertising. And even then, these startups need to jump over the next hurdle of building a two-sided community that competes with the activity of digital metropolises like Upwork.

On the other hand, the incumbent freelance platforms are mired in their own problems. The leading solution to the problem of high fees, blockchain, requires the surrender of the intermediary’s core value proposition and surrender of its main source of revenue.

Should a platform like Upwork pivot to blockchain to reduce fees, they’d be gutting their near (estimated) $70 million in annual revenue. That might make meeting payroll for their 250+ employees a tad difficult.

So, the narratives being to reveal themselves.

Will small, nimble, and adequately funded post-ICO blockchain-based startups be able to successfully onboard massive amounts of freelancers and clients and create a self-sustaining ecosystem or will they prematurely exhaust and doom themselves to a tiny esoteric circle of cryptocurrency aficionados?

Will ailing old-guard platforms be able to stop the drain of their most valuable cash cows talented freelancers, or will they become another set of relics antiquated by the raging tide of technological innovation? 

Only time will tell.

However, one certainty has started to manifest: the booming freelance economy has yet another avenue to exercise optionality when it comes to monetizing experiences, skills, and labor, as well as connecting ambitious talent with potentially civilization-advancing projects.

This article is Originally posted on CoinCentral.com
Author: Alex Moskov