Price analysis 8/31: BTC, ETH, XRP, LINK, BCH, LTC, BSV, CRO, BNB, EOS – BTC Ethereum Crypto Currency Blog

Bitcoin and altcoins have bounced off their range lows, but they are likely to encounter resistance at higher levels.

The U.S. stock market is on track to clock its best August performance since 1984. Meanwhile, Bitcoin (BTC) is attempting a positive close for the month after having declined consecutively in August 2018 and August 2019. However, gold futures and the U.S. dollar index (DXY) have not been in favor, as both could end the month in the red.

Berkshire Hathaway disclosed a 5% stake each in five leading Japanese trading companies, and just a few days back, the company announced that it had a stake in a gold mining company.

Daily cryptocurrency market performance. Source: Coin360

Max Keiser of the Keiser report believes that these recent purchases by Berkshire are an indication that Buffett is diversifying away from the dollar. Hence, Keiser expects Bitcoin, gold and silver to make new all-time-highs in the near term.

While anything is possible in the markets, does Bitcoin’s chart show bullish setups that support the view of a sharp rally in the short term?

Let’s analyze the charts to find out!

BTC/USD

Bitcoin broke out of the 20-day exponential moving average (EMA) ($11,559) on Aug. 30, which is a positive sign. The bulls will now try to propel the price above the $12,113.50–$12,460 resistance zone.

BTC/USD daily chart. Source: TradingView

If they succeed, it will signal the possible resumption of the uptrend with the next target objective at $13,000 and then $14,000.

However, the 20-day EMA is flat, and the relative strength index is just above the midpoint, which suggests a balance between supply and demand. 

If the price turns down from the overhead resistance, the BTC/USD pair could remain range-bound between $12,113.50 and $11,000 for a few days. 

A break below $11,000 will indicate weakness, and the pair will turn negative on a drop below the critical support zone of $10,400 to $10,000.

ETH/USD

The bulls pushed Ether (ETH) above the 20-day EMA ($400) on Aug. 28 and followed that up with a strong up-move on Aug. 30, which brought the price above the $415.634 resistance.

ETH/USD daily chart. Source: TradingView

With this rise, the 20-day EMA has again started to slope up, and the RSI has broken out of a downtrend line, which suggests that the bulls are in command.

If they can propel and sustain the ETH/USD pair above $446.479, the uptrend is likely to resume with the first target at $480 and then $550.

Contrary to this assumption, if the pair turns down from the overhead resistance, it could spend some more time in consolidation. The momentum will weaken if the bears sink the price back below the critical support at $366.

XRP/USD

The bulls pushed XRP above the 20-day EMA ($0.28) on Aug. 30, which suggests strong buying at lower levels. The 20-day EMA has flattened out, and the RSI has risen above the 50 level, which suggests that the selling pressure has reduced. 

XRP/USD daily chart. Source: TradingView

If the bulls can sustain the price above the 20-day EMA, a move to $0.295 and then to $0.326113 is possible.

Contrary to this assumption, if the XRP/USD pair again dips back below the 20-day EMA, the bears will try to sink the price below the 50-day simple moving average ($0.26). If they succeed, the decline could extend to the 61.8% Fibonacci retracement level of $0.241068.

LINK/USD

Chainlink’s LINK broke above the symmetrical triangle on Aug. 29, which suggests buying at lower levels, but the bears are not willing to give up without a fight. They are currently attempting to stall the up-move at $17.6738.

LINK/USD daily chart. Source: TradingView

However, the 20-day EMA ($15) is sloping up, and the RSI is in the positive territory, which suggests that bulls have the upper hand.

If the bulls do not give up much ground, the possibility of a break above $17.6738 increases. Above this level, a retest of $20.1111 is likely. If the bulls can push the price above this level, the uptrend is likely to resume.

Contrary to this assumption, if the bears sink the LINK/USD pair below the 20-day EMA, a deeper decline to the 50-day SMA ($11.72) is possible. 

BCH/USD

Bitcoin Cash (BCH) has bounced off the $260 support but is facing resistance at $280. The 20-day EMA ($282) is also placed just above this resistance; hence, the bears will try to defend this level aggressively. 

BCH/USD daily chart. Source: TradingView

If the BCH/USD pair turns down from the current levels, the bears will once again try to break below the $260 support. If they succeed, a decline to $245 and then to $232 is possible.

Currently, the 20-day EMA has flattened out, and the RSI is just below the midpoint, which suggests a balance between supply and demand. However, if the bulls push the price above the 20-day EMA, a move to $300 and then to $326.30 is likely. 

LTC/USD

Litecoin (LTC) soared above the 20-day EMA ($59.24) and the downtrend line on Aug. 30, which suggests that the bulls are back in the game. However, the bears are currently attempting to stall the relief rally at the minor resistance of $64.

LTC/USD daily chart. Source: TradingView

If the LTC/USD pair turns down from the current levels, a drop to the 20-day EMA is possible. 

The 20-day EMA has started to turn up, and the RSI has jumped into the positive territory, which suggests a minor advantage to the bulls. If the pair rebounds off this support, the bulls will once again attempt to push the price above the $64–$68.9008 resistance zone.

This bullish view will be invalidated if the bears sink the price below the 20-day EMA. In such a case, a drop to the 50-day SMA ($54.72) is possible.

BSV/USD

The recovery in Bitcoin SV (BSV) is currently facing resistance at the breakdown level of $200. Both moving averages are placed just above this resistance; hence, the bears are likely to defend this level aggressively.

BSV/USD daily chart. Source: TradingView

The 20-day EMA ($201) is sloping down and the RSI is in the negative zone, which suggests that the bears have the upper hand.

If the BSV/USD pair turns down from the current levels, the bears will again attempt to sink the price below the $180 support. If they succeed, the decline could extend to $160 and then to $146.20.

Contrary to this assumption, if the bulls can push the price above the 50-day SMA ($203), a move to the downtrend line is possible. A break above this resistance will suggest that the bulls are attempting a comeback.

CRO/USD

Crypto.com Coin (CRO) broke above the $0.176596 overhead resistance on Aug. 30, which is a bullish sign. The bulls will now try to push the price to $0.191101, and if this level is scaled, a move to $0.20 is possible.

CRO/USD daily chart. Source: TradingView

The 20-day EMA ($0.169) is sloping up, and the RSI has broken above the resistance at 65, which shows that bulls have the upper hand. 

However, the bears are unlikely to give up without a fight. They will try to pull down the price back below $0.176596 and trap the aggressive bulls. If they succeed, a drop to the 20-day EMA is possible. A break below this support could result in a fall to $0.154322.

If the CRO/USD pair rebounds off the 20-day EMA, the bulls will once again attempt to resume the uptrend. Hence, this is the critical support to watch out for on any dips.

BNB/USD

Binance Coin (BNB) is currently facing resistance at the $23.91–$24.4588 zone, which shows a lack of demand at higher levels.

BNB/USD daily chart. Source: TradingView

However, if the BNB/USD pair rebounds off the 20-day EMA ($22.53), the bulls will make one more attempt to push the price above the $23.91–$24.4588 resistance zone. If they succeed, a rally to $27.1905 is possible.

Conversely, if the bears sink the price below the 20-day EMA, a drop to the $20.5710 support is likely. The bulls are likely to defend this support aggressively. If they succeed, the pair could consolidate between $23.91 and $20.571 for the next few days.

EOS/USD

EOS broke above the 20-day EMA ($3.22) on Aug. 30, which suggests that the bears are losing their grip. If the bulls can sustain the price above the 20-day EMA, a move to $3.4275 and then to $3.63 is possible.

EOS/USD daily chart. Source: TradingView

However, if the EOS/USD pair turns down from $3.4272, a few days of consolidation is possible. The flat 20-day EMA and the RSI just above the midpoint suggest a balance between supply and demand.

Contrary to this assumption, if the pair turns down from the current levels and plummets below the 20-day EMA, a drop to the 50-day SMA ($3.03) and then to $2.83 is possible. A break below this level will be a huge negative.

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

Price analysis 8/28: BTC, ETH, XRP, LINK, BCH, LTC, BSV, CRO, BNB, EOS – BTC Ethereum Crypto Currency Blog

Bitcoin and altcoins are holding key support levels, suggesting bulls will try to break above overhead resistance levels soon.

In his speech on Aug. 27, U.S. Federal Reserve chairman Jerome Powell said that the central bank will allow inflation to stay above its 2% target level if the figure has been languishing below that level for a long time. Some analysts believe that this could mean no rate hikes for at least five years.  

In response to the speech, the U.S.dollar index (DXY) resumed its downtrend while gold is trading in the black. This shows that traders believe that the central bank’s change in strategy could debase the dollar further, hence, the demand for gold as a store of value remains intact.

Gemini co-founder Tyler Winklevoss believes that eventually, Bitcoin (BTC) will overtake gold as the store of value due to its inherent advantages. Bitcoin’s current market capitalization is just above $200 billion while gold’s market cap is roughly $9 trillion. That means Bitcoin will have to rise 45-fold to $500,000 to reach the desired target objective, according to Winklevoss.

Daily cryptocurrency market performance. Source: Coin360

Such a huge spike in Bitcoin’s price is unlikely to happen without the participation of the institutional investors. Fortunately, recent developments have shown that institutional demand has been picking up in 2020.

In order to attract large ticket buyers, Fidelity has filed the paperwork with the US regulators to launch a new Bitcoin fund dedicated to its institutional clients. Even if institutional investors only allocate 1% of their funds into Bitcoin, it could spark a sharp rally.

So, is this a good time for retail traders to consider buying, or could the crypto market enter a period of correction? Let’s study the charts to find out.

BTC/USD

Although Bitcoin had been trading below the 20-day exponential moving average ($11,530) for the past two days, the bears could not sink the price below the $11,000 support, which suggests that bulls are buying on dips. 

BTC/USD daily chart. Source: TradingView

The 20-day EMA has flattened out and the relative strength index is close to the midpoint, which shows a balance between supply and demand.

If the bulls can push the price above the 20-day EMA, a retest of the overhead resistance at $12,113.50 is likely. The next uptrend is likely to start after the bulls can sustain the BTC/USD pair above the $12,113.50–$12,460 resistance.

Conversely, if the pair turns down from $12,113.50, the bears will once again attempt to sink the price below the $11,000 support. If successful, a retest of the critical support at $10,400 is possible. A break below this level will be a huge negative. 

ETH/USD

The bulls are aggressively defending the $366 support, which is a positive sign. If they can sustain the price above the 20-day EMA ($392), Ether (ETH) can rise to $415.634 and above it to the $446.479 resistance.

ETH/USD daily chart. Source: TradingView

The 20-day EMA is flat and the RSI is just above the 50 level, which suggests a balance between supply and demand. A break above $446.479 is likely to resume the uptrend with the next target objective at $480. 

Conversely, if the bears defend the $415.634 resistance aggressively, the ETH/USD pair could drop to $366 levels. Such a move will be a huge negative as that could form a bearish head and shoulders pattern, increasing the possibility of a deeper correction.

XRP/USD

XRP broke below the $0.268478 support on Aug. 27 but the bulls purchased the dip to the 50-day simple moving average ($0.255), which suggests demand at lower levels. 

XRP/USD daily chart. Source: TradingView

Currently, the buyers are attempting to push the price back above $0.268478. If they succeed, a move to the 20-day EMA ($0.28) is possible. This level is likely to act as a stiff resistance but if the buyers can scale the price above it, a move to $0.326113 is likely.

However, if the XRP/USD pair turns down from the 20-day EMA, the bears will try to break the 50-day SMA support and if they succeed, a drop to the 61.8% Fibonacci retracement level of $0.241068 is possible.

With the 20-day EMA gradually sloping down and the RSI in the negative zone, the advantage is with the bears.

LINK/USD

Chainlink (LINK) has been hovering around the 20-day EMA ($14.56) for the past few days and has formed a symmetrical triangle pattern, which suggests indecision.

LINK/USD daily chart. Source: TradingView

If the bulls can push the price above the triangle and the $16 resistance, a move to the pattern target of $18.69 and then to $20.1111 is possible.

The 20-day EMA is rising gradually and the RSI has been sustaining in the positive territory, which suggests that the advantage remains with the bulls.

However, if the LINK/USD pair turns down and breaks below the triangle, it will be a huge negative and can result in a drop to the 50-day SMA ($11.13). Such a move will suggest that a short-term top has been made at $20.1111.

BCH/USD

The weak bounce off the 50-day SMA ($272) on Aug. 26 attracted another round of selling that pulled Bitcoin Cash (BCH) down to the first support at $260.

BCH/USD daily chart. Source: TradingView

Currently, the bulls are defending the $260 support but the recovery is likely to face stiff resistance at $280. The downsloping 20-day EMA ($284) and the RSI in the negative zone suggests that bears have the upper hand.

If the BCH/USD pair turns down from the 20-day EMA, the bears will again attempt to sink the price below the $260 support. If they succeed, a drop to $240 is possible.

However, if the buyers push the price above the 20-day EMA, a retest of the overhead resistance at $326.30 is likely.  

LTC/USD

Litecoin (LTC) has bounced off the 50-day SMA ($53.78), which suggests that the bulls are aggressively defending this support. They will now try to push the price above the downtrend line, which could extend the recovery to $63 and then to $68.9008.

LTC/USD daily chart. Source: TradingView

However, the 20-day EMA ($58.84) is sloping down and the RSI is just below 50, which suggests a marginal advantage to the bears.

If the LTC/USD pair turns down from the downtrend line, it will suggest that the bears are selling on rallies. If they can sink the price below the 50-day SMA, the decline can extend to the critical support at $51. 

BSV/USD

The bulls are currently attempting to defend the $180 support but any recovery in Bitcoin SV (BSV) is likely to face stiff resistance at $200.

BSV/USD daily chart. Source: TradingView

If the BSV/USD pair turns down from $200, the bears will attempt to resume the correction by pulling down the price to $160 and then to $146.20.

Conversely, if the bulls can push the price above the moving averages, the recovery can extend to the downtrend line. The bears are again likely to defend this resistance aggressively.

The pair is likely to pick up strength after the bulls can propel the price above the $227 overhead resistance. 

CRO/USD

Crypto.com Coin (CRO) has been trading above the 20-day EMA ($0.167) for the past three days, which is a positive sign. 

CRO/USD daily chart. Source: TradingView

The 20-day EMA has been gradually sloping up and the RSI is in the positive territory, which suggests that bulls have the upper hand. 

A breakout and close (UTC time) above $0.176596 will signal a possible resumption of the uptrend. The bears are likely to defend the highs at $0.191101 but if the bulls can push the price above it, a move to $0.20 is possible.

Contrary to this assumption, if the bears sink the price below the 20-day EMA, the CRO/USD pair could drop to the 50-day SMA ($0.158) and then to $0.154322.

BNB/USD

Binance Coin (BNB) broke above the downtrend line and the overhead resistance of $22.93 on Aug. 27, which suggests that the bulls are back in the game. 

BNB/USD daily chart. Source: TradingView

However, the bears are unlikely to give up without a fight. They will offer a stiff resistance in the $23.91–$24.4588 zone. If the BNB/USD pair turns down from this resistance, the bears will try to sink the price to $20.5710.

The 20-day EMA ($22.28) has turned up marginally and the RSI is in the positive territory, which suggests advantage to the bulls. If the buyers can push the price above the overhead resistance zone, a rally to $27.1905 is possible.

EOS/USD

EOS corrected sharply from the Aug. 16 highs of $3.95 and fell to an intraday low of $2.8577 on Aug. 27, which completed a 100% retracement of the entire leg of the rally that had started on Aug. 12.

EOS/USD daily chart. Source: TradingView

The bulls are currently attempting to start a relief rally, which is likely to face stiff resistance at the 20-day EMA ($3.23). If the price turns down from this resistance, it will suggest that the bears are selling on rallies. 

They will then try to sink the EOS/USD pair below the $2.83 support and if they succeed, a drop to $2.60 is possible.

Conversely, if the bulls can push the price above the 20-day EMA, the recovery could extend to $3.42 and then to $3.631.

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

Price analysis 8/26: BTC, ETH, XRP, LINK, BCH, LTC, BSV, CRO, BNB, ADA – BTC Ethereum Crypto Currency Blog

Bitcoin and altcoins are likely to remain range-bound in the short-term as the bulls and the bears attempt to assert their dominance.

On Thursday, U.S. Federal Reserve chairman Jerome Powell is expected to deliver an important speech that will highlight a new strategy of targeting “average inflation.” This means that the Fed might allow inflation to overshoot the 2% target temporarily if it has spent a long time below that level.

If the Fed adopts this new strategy, it could keep interest rates near zero for five years or more, according to a Bloomberg report.

The abundant liquidity is likely to drive asset prices higher across the board and create bubbles that will eventually burst. If this occurs, investors are likely to lose complete faith in the central banks and fiat currencies.

Daily cryptocurrency market performance. Source: Coin360

Smart investors are likely to seek the safety of gold and Bitcoin (BTC) during this time of uncertainty. Larger investors have already started accumulating Bitcoin and this has pushed the number of addresses holding over 1,000 BTC to a new record high.

While this is all great news, traders will want to know if the crypto market will extend it’s current up-move or whether a period of extended consolidation is at hand.

Let’s study the charts to find out!

BTC/USD

Bitcoin plunged and closed (UTC time) below the 20-day exponential moving average ($11,554) on Aug. 25, which is the first indication that the bulls were losing their grip.

BTC/USD daily chart. Source: TradingView

The bulls are currently attempting to defend the $11,100–$10,900 support zone but are likely to face significant resistance at the 20-day EMA.

If the bulls fail to push the price back above the 20-day EMA, a drop to the 50-day simple moving average ($10,728) and then to $10,400 is possible.

Conversely, if the bulls can push the price above the 20-day EMA, a move to $12,113.50 is likely. The bears are likely to defend this level aggressively.

The 20-day EMA has flattened out and the relative strength index is just above the midpoint, which suggests a few days of range-bound action.

The next trending move is likely to start after the bulls push the price above the $12,113.50–$12,460 resistance zone or sink the price below the $10,400–10,000 support zone.

ETH/USD

The failure of the bulls to push Ether (ETH) above the $415.634 resistance on Aug. 24 attracted profit booking on Aug. 25 that pulled down the price to the critical support at $366.

ETH/USD daily chart. Source: TradingView

Although the bulls purchased the dip on Aug. 25, they are struggling to push the ETH/USD pair above the 20-day EMA ($393), which is a negative sign. This shows a lack of demand at higher levels.

A break and close (UTC time) below $366 could intensify selling and result in a drop to the 50-day SMA ($336). Such a move will suggest that a short-term top has been made at $446.479.

However, if the bulls can push the price above the 20-day EMA, a few days of range-bound action between $366– $415.634 is likely.

XRP/USD

XRP closed (UTC time) above the 20-day EMA ($0.284) on Aug. 24 but a lack of buying at higher levels again pulled down the price to the $0.268478 support.

XRP/USD daily chart. Source: TradingView

The bulls are currently attempting to defend the $0.268478 support but unless they sustain the price above the 20-day EMA, the advantage will remain with the bears.

If the bears sink the XRP/USD pair below $0.268478, a drop to the 50-day SMA ($0.25) is possible. This is an important support to watch out for because if it cracks, the decline can extend to the 61.8% Fibonacci retracement level of $0.241068.

Contrary to this assumption, if the pair rebounds off the $0.268478 support and rises above the 20-day EMA, then a few days of range-bound action between $0.326113 and $0.268478 is likely.

LINK/USD

The bulls failed to push Chainlink (LINK) above the overhead resistance of $16 on Aug. 23 and 24, which attracted profit booking that pulled the price back below the 20-day EMA ($14.49) on Aug. 25.

LINK/USD daily chart. Source: TradingView

However, the positive thing is that the lower levels are attracting buying by the bulls, which shows that the sentiment remains bullish. Currently, the LINK/USD pair has again risen above the 20-day EMA.

If the bulls can propel the price above $16, LINK will attempt to resume the uptrend and retest the highs at $20.1111.

On the other hand, if the pair again turns down from $16, the bears will try to sink the price to the 61.8% Fibonacci retracement level of $11.9281.

BCH/USD

The rebound from the breakout level of $280 in Bitcoin Cash (BCH) turned down from the 20-day EMA ($288) on Aug. 25, which suggests that the bears are aggressively defending this resistance.

BCH/USD daily chart. Source: TradingView

The bulls purchased the dip to the 50-day SMA ($271) on Aug. 25 but if they fail to push the price back above $280, it is likely to attract another round of selling that could sink the BCH/USD pair to $260 and then to $240.

The downsloping 20-day EMA and the RSI in the negative territory suggest that bears have made a comeback. 

This bearish view will be invalidated if the pair rebounds off the current levels and rises above the $280–$295 resistance.

LTC/USD

Litecoin (LTC) turned around and plunged below the 20-day EMA ($59) on Aug. 25, which suggests selling by the bears on minor rallies.

LTC/USD daily chart. Source: TradingView

The next support on the downside is the 50-day SMA ($53) and if this support also gives way, a drop to $51 will be on the cards. 

Conversely, if the LTC/USD pair rebounds off the current levels, the bulls will attempt to push the price above the downtrend line. If they succeed, a move to $64 and then to $68.9008 is possible.

The flat 20-day EMA and the RSI close to the midpoint suggest a few days of range-bound action.

BSV/USD

The bulls pushed Bitcoin SV (BSV) above the overhead resistance of $200 but could not clear the 20-day EMA ($206) hurdle on Aug. 24, which attracted selling on Aug. 25 that pulled the altcoin back below $200.

BSV/USD daily chart. Source: TradingView

The moving averages are on the verge of a bearish crossover and the RSI is in the negative zone, which suggests that the bears have the upper hand.

If the bulls fail to push the price back above $200 within the next few days, the BSV/USD pair is likely to slide to $160 and then to $146.20.

This bearish view will be invalidated if the bulls can push the price back above the downtrend line.

CRO/USD

Crypto.com Coin (CRO) turned down from the overhead resistance of $0.176596 on Aug. 25, which suggests that the bears are aggressively defending this level.

CRO/USD daily chart. Source: TradingView

However, both moving averages are gradually sloping up and the RSI is in the positive territory, which suggests that the bulls are at a minor advantage.

If the CRO/USD pair rebounds off the 20-day EMA ($0.166), the bulls will once again attempt to scale the price above $0.176596. If they succeed, the uptrend is likely to resume. The first target on the upside is $0.191101 and then $0.20.

Conversely, if the pair turns down and breaks below the 20-day EMA, a drop to the 50-day SMA ($0.157) is possible.

BNB/USD

Binance Coin (BNB) turned down from the overhead resistance of $22.93 on Aug. 25 and dropped below the 20-day EMA ($22), which suggests aggressive selling by the bears at higher levels.

BNB/USD daily chart. Source: TradingView

However, the bears could not capitalize on the opportunity and sink the BNB/USD pair below the critical support at $20.5710.

This has attracted buying from the aggressive bulls who are attempting to push the price above the downtrend line. If they succeed, a move to $22.93 and then to $23.91 is likely.

On the other hand, if the pair turns down from the downtrend line and plummets below $20.5710, a deeper correction to $19.10 is possible.

ADA/USD

Cardano (ADA) plunged to the $0.10–$0.11 support zone on Aug. 25, which is a negative sign. The moving averages have completed a bearish crossover and the RSI is in the negative territory, suggesting advantage to the bears.

ADA/USD daily chart. Source: TradingView

Currently, the bulls are attempting to defend the support zone aggressively. However, any recovery is likely to face stiff resistance from the 20-day EMA ($0.129). If the ADA/USD pair turns down from the 20-day EMA, the bears will attempt to sink the price below $0.10.

If they succeed, it will be a huge negative as the next support on the downside is way lower at $0.075.

This negative view will be invalidated if the bulls can push the price back above the 20-day EMA and the overhead resistance at $0.13.

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

Price analysis 8/24: BTC, ETH, XRP, BCH, LINK, LTC, BSV, CRO, BNB, ADA – BTC Ethereum Crypto Currency Blog

The bulls are aggressively defending the 20-day EMA in Bitcoin and select altcoins, which could result in the resumption of the uptrend.

The coronavirus pandemic has forced people to change several social behavioral habits. Along with maintaining social distance from one another, people are also averse to using notes, coins or cards as they might transmit COVID-19. 

A new report from the Bank for International Settlements suggested that social distancing procedures and the “government-to-person payment schemes” have accelerated the efforts towards launching central bank digital currencies (CBDCs). The paper shows that the public interest in CBDCs has exceeded that of Bitcoin (BTC) and Libra in 2020.  

However, the CBDCs will only be a digital version of the fiat currencies that will be controlled by the central banks. Hence, the problems that plague the U.S. dollar currently will even affect the digital version of the dollar. 

Therefore, after people familiarize with CBDCs and realize their ease of use, they are likely to warm up to cryptocurrencies due to their inherent advantages over fiat currencies.

Daily cryptocurrency market performance. Source: Coin360

Even with its numerous advantages, Bitcoin continues to have its naysayers. Ryanair CEO Micheal O’Leary painted a very bearish picture of Bitcoin and said it was “equivalent to a Ponzi scheme”. This shows how several institutional investors are still wary of cryptocurrencies but retail traders have been quick to embrace the new asset class.

BTC/USD

The bulls are defending the 20-day exponential moving average ($11,589), which is a positive sign as it indicates that the sentiment remains bullish. Bitcoin could now move up to the $12,113.50 resistance.

BTC/USD daily chart. Source: TradingView

The 20-day EMA is gradually sloping up and the relative strength index is in the positive zone, which suggests that the path of least resistance is to the upside. 

If the bulls can propel the price above the $12,113.50–$12,460 resistance zone, the uptrend is likely to resume with the next target at $13,000 and then $14,000.

However, the bulls are unlikely to give up without a fight. They will again mount a stiff resistance at $12,113.50. If the BTC/USD pair turns down from this zone, a drop to $11,000 and then to $10,400 is possible.

ETH/USD

Ether (ETH) repeatedly slipped below the 20-day EMA ($394) for three consecutive days between Aug. 21 to 23 but the bears could not intensify the selling and pull the price down to $366, which suggests that the bulls were accumulating at lower levels.

ETH/USD daily chart. Source: TradingView

Currently, the bulls are attempting to push the ETH/USD pair above the $415.634 resistance. If they succeed, a retest of $446.479 is likely. A breakout of this level will signal the possible resumption of the uptrend, with the next target objective at $480 and then $516.11.

However, if the pair turns down from either $415.634 or $446.479, a few days of range-bound action is possible. 

The flat 20-day EMA and the RSI just above the midpoint also suggests a consolidation for a few days. The trend will turn negative if the bears sink the price below the critical support at $366. 

XRP/USD

XRP is currently range-bound between $0.326113 and $0.268478. The 20-day EMA ($0.285) has flattened out and the RSI is just above the midpoint, which suggests a balance between demand and supply.

XRP/USD daily chart. Source: TradingView

This balance will shift in favor of the bulls if they can push the price above $0.326113. Above this level, a rally to $0.346727 and then to $0.40 is possible.

However, if the pair turns down from $0.326113, it will extend its stay inside the range for a few more days.

The advantage will shift in favor of the bears if the XRP/USD pair breaks below the $0.268478 support. If this level cracks, a drop to $0.24 is likely.

BCH/USD

The bulls have managed to defend the breakout level of $280, which suggests buying on dips. They will now try to push Bitcoin Cash (BCH) to the overhead resistance at $326.30. The bears are likely to defend this level aggressively.

BCH/USD daily chart. Source: TradingView

If the price turns down from $326.30, the BCH/USD pair could remain range-bound for a few more days.

However, if the bulls can push the price above $326.30, a rally to $353 is possible. A breakout of this resistance could result in a rally to $400.

This view will be invalidated if the pair breaks and sustains below the $280 support. The next target on the downside is $260 and then $245.

LINK/USD

Chainlink (LINK) dipped below the 50% Fibonacci retracement level of $13.4906 on Aug. 21 but the price rebounded sharply on Aug. 22, which shows strong buying at lower levels.

LINK/USD daily chart. Source: TradingView

The LINK/USD pair is currently trading above the 20-day EMA ($14.43), which is gradually sloping up and the RSI is in the positive territory, suggesting a slight advantage to the bulls.

If the bulls can push the price above $16, the pair is likely to pick up momentum and move up to $17.6738. A breakout of this level can result in a retest of $20.1111.

Contrary to this assumption, if the pair turns down from $16, the bears will again try to sink the price below the 20-day EMA. If they succeed, a drop to $12.89 is likely.

LTC/USD

Litecoin (LTC) broke below the 20-day EMA ($59.54) on Aug. 22 and 23 but the bears could not sustain the lower levels, which suggests accumulation by the bulls on dips.

LTC/USD daily chart. Source: TradingView

Currently, the LTC/USD pair has bounced off the 20-day EMA and the bulls will try to push the price above the $65.1573–$68.9008 resistance zone. If they succeed, the uptrend is likely to resume, with the next target at $80.

The moving averages are sloping up and the RSI is also in the positive zone, which suggests that bulls are at an advantage.

This view will be invalidated if the pair turns down from the overhead resistance and breaks below the $57.7736 support.

BSV/USD

Bitcoin SV (BSV) broke down of the $200 support on Aug. 21, which completed the descending triangle pattern. This setup has a pattern target objective of $142. 

BSV/USD daily chart. Source: TradingView

The 20-day EMA ($209) is sloping down and the RSI is in the negative zone, which suggests that the bears have the upper hand. If the bears defend the breakdown level of $200, the BSV/USD pair is likely to drop to $160.

However, if the bulls can push the price back above $200 and the 20-day EMA, a move to the downtrend line of the triangle is possible. A break above this resistance will shift the advantage in favor of the bulls.

CRO/USD

Crypto.com Coin (CRO) has bounced off the 20-day EMA ($0.165) and the bulls will now try to push the price above the $0.176596 resistance. If they succeed, the uptrend is likely to resume.

CRO/USD daily chart. Source: TradingView

The first target on the upside is $0.191101 and if this level is scaled, the next target is $0.20. The 20-day EMA is gradually sloping up and the RSI is in the positive zone, which suggests that the path of least resistance is to the upside.

This bullish view will be invalidated if the CRO/USD pair turns down from the overhead resistance and breaks below the 20-day EMA. Such a move will suggest that the momentum has weakened. A break below $0.154322 could start a deeper correction.

BNB/USD

Binance Coin (BNB) broke below the 20-day EMA ($22.16) for three consecutive days between Aug. 21 to 23, but the bears could not sustain the price below the $21.7628 support, which suggests that the bulls are defending this support aggressively.

BNB/USD daily chart. Source: TradingView

The bulls are currently attempting a relief rally. If they can push the price above $22.93, a move to $24.4588 is possible. If this level is also scaled, the up move can extend to $27.1905.

Contrary to this assumption, if the BNB/USD pair turns down from $22.93, the bears will once again attempt to sink and sustain the price below $21.7628. If they succeed, a drop to the 50-day simple moving average ($20.26) is likely.

ADA/USD

Cardano (ADA) decisively broke below the $0.13 support on Aug. 21, which points to a possible change in trend. The 20-day EMA ($0.132) has started to slope down and the RSI is in the negative territory, suggesting advantage to the bears.

ADA/USD daily chart. Source: TradingView

The first target objective on the downside is $0.11 and if that breaks, a drop to $0.10 is possible.

However, the bulls are unlikely to give up without a fight. They will try to push the price back above $0.13 and the 20-day EMA. 

If they succeed, it will suggest strong demand at lower levels but if the price turns down from the overhead resistance, the downtrend is likely to resume.

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

Grayscale’s Litecoin and Bitcoin Cash Trusts Trade for Tremendous Premiums – BTC Ethereum Crypto Currency Blog

This week data from Arcane Research shows there’s been massive demand for Grayscale’s recently launched publicly traded crypto trusts. Following the trusts getting DTC eligibility last monday LTCN (litecoin) shares have been selling for a 753% premium while BCHG (bitcoin cash) shares have sold for a 351% premium.

Grayscale Investments’ Litecoin Trust (LTCN) and Bitcoin Cash Trust (BCHG) are seeing intense demand since the official launch this past Monday.

According to statistics from Arcane Research, LTCN was selling for a 753% premium while the BCHG trust was selling for a 351% premium.

Trading of both trusts didn’t really pick up until the very next day and Arcane Research said LTCN “traded with a wild premium since the launch.”

“Currently, the premium of LTCN is at a whopping 753%,” Arcane tweeted. “High retail demand for LTC exposure generates lucrative returns for the early investors of the trust.”

Arcane said the main drivers of Grayscale premiums include investors buying directly into the trust [who] seek compensation for the lockup period, high retail demand for crypto exposure through 401k savings, with few other options. The researchers also added some investors might not be aware of the premiums.

“The Grayscale [Bitcoin Cash] Trust was also launched this Tuesday, and has also traded at a large premium,” Arcane’s Twitter post added. “The current premium of BCHG is at 351%.”

Arcane added that the BCHG premium has been dropping since the trust launched. After tweeting about the LTCN, BCHG, and the ETHE trust as well, Arcane said that the public demand for digital assets makes it a perfect time to deploy an exchange-traded fund (ETF).

“Overall, the premiums of the Grayscale products are far above what they should be, when taking the lockup compensation into account,” the researchers noted.

Arcane further said:

The premiums show that the public demand for crypto exposure is high, and that the market is ripe for an ETF.

When discussing the data for the Ethereum Trust (ETHE), Arcane wrote that trust has $837 million worth of assets under management (AuM ) or 1.8% of the ETH supply. Arcane noted that when the trust came out of the gate, the “premium soared above 800%” but it has since normalized.

“The publicly traded shares of the trust (ETHE) currently trade at a premium of 93.7% compared to the NAV,” the researchers said on Friday.

What do you think about LTCN and BCHG shares trading at well above the NAV? Let us know what you think about these trusts in the comments section below.

The post Grayscale’s Litecoin and Bitcoin Cash Trusts Trade for Tremendous Premiums appeared first on Bitcoin News.

https://news.bitcoin.com/grayscales-litecoin-and-bitcoin-cash-trusts-trade-for-tremendous-premiums/

Original Article
Author: btcethereumadmin

Price Analysis 8/21: BTC, ETH, XRP, BCH, LINK, LTC, BSV, ADA, BNB, CRO – BTC Ethereum Crypto Currency Blog

Bitcoin and several altcoins have formed bearish divergences, which suggests that the bullish momentum has weakened.

Rich Dad Poor Dad author Robert Kiyosaki believes that Warren Buffet’s recent closure of his bank stock positions is a warning sign that the world might be starting a “major banking crisis.” Therefore, Kiyosaki suggests traders buy safe haven assets such as gold, silver and Bitcoin (BTC) to protect themselves from the downward spiraling value of the fiat currencies.

Popular Bitcoin derivatives trader Tone Vays believes that Bitcoin could breakout to new all-time highs in 2021. He pointed out that historically, Bitcoin has tended to double in price after breaking out of its all-time high, especially if it took years to do that. Hence, if Bitcoin breaks above $20,000, Vays expects a rally to at least “$45,000 to $50,000.”

Daily cryptocurrency market performance. Source: Coin360

A report by Grayscale Investments suggests that the current market conditions are similar to the one seen in 2016 before Bitcoin began its stellar bull run. Grayscale highlights the growing dependence of the U.S. economy on expansionary monetary policy and believes that it will be very difficult to reverse it. This could stoke inflation, which will be bullish for Bitcoin.

While these are long-term projections, in the short-term, the total crypto market capitalization has slid from $380 billion on Aug. 17 to about $360 billion, which shows profit booking by short-term traders.

Investors will now want to know if the current correction will deepen or if the prices rebound in the coming days. Let’s study the charts to find out!

BTC/USD

Given that Bitcoin has been in a strong uptrend, traders have consistently purchased dips to the 20-day exponential moving average ($11,570) because they believe that the rally will resume and the price would not dip to these levels again.

BTC/USD daily chart. Source: TradingView

However, Bitcoin’s weak rebound off the 20-day EMA on Aug. 20 suggests that the bulls are not confident that the uptrend will resume, hence, they are not buying aggressively at this support.

The negative divergence on the relative strength index suggests that the momentum has weakened. If the price breaks and sustains below the 20-day EMA, the traders are likely to wait for the BTC/USD pair to find support at lower levels, before buying.

On a drop below the 20-day EMA, the decline can extend to the $11,100–10,900 support zone.

Contrary to this assumption, if the pair rebounds off the 20-day EMA, the bulls will make another attempt to push the price above the $12,113.50–$12,460 resistance zone. If they succeed, the uptrend is likely to resume.

ETH/USD

The rebound off the 20-day EMA ($395) on Aug. 20 fizzled out close to $415.634, which suggests that the bears are aggressively defending this resistance. They will now try to sink Ether (ETH) price below the 20-day EMA.

ETH/USD daily chart. Source: TradingView

If they succeed, a drop to $366 is possible. The bulls are likely to defend this support aggressively. A bounce off this support could keep the ETH/USD pair range-bound between $366–$415.634 for a few days.

The negative divergence on the RSI shows that the momentum has weakened. If bears sink the pair below $366, a drop to the 50-day simple moving average ($321) is possible.

Conversely, if the pair rebounds off the 20-day EMA, the bulls will make one more attempt to propel the price above $415.634–$446.479 resistance zone.

XRP/USD

The weak rebound off the 20-day EMA ($0.285) on Aug. 20 suggests a lack of buyers at higher levels. If the bears can now sink XRP below the 20-day EMA, a drop to $0.268478 is possible.

XRP/USD daily chart. Source: TradingView

The 20-day EMA has flattened out and the RSI has dropped close to the midpoint, which suggests a range-bound action in the short-term. A strong bounce off the $0.268478 support will signal strength and the bulls will try to push the price back to $0.326113.

Contrary to this assumption, if the bears sink the XRP/USD pair below $0.268478, a deeper correction to the 50-day SMA ($0.243) is likely.

BCH/USD

Bitcoin Cash (BCH) is struggling to stay above the 20-day EMA ($293), which suggests a lack of buying interest among the bulls. The altcoin can now drop to the $280 support.

BCH/USD daily chart. Source: TradingView

The flat 20-day EMA and the RSI close to the 50 level suggests a balance between supply and demand.

If the bears sink and sustain the BCH/USD pair below $280, it will be a huge negative as it would suggest a lack of buyers at higher levels. The next support on the downside is at the 50-day SMA ($266).

However, if the pair rebounds off $280, the bulls will once again attempt to carry the price to $326.30.

LINK/USD

Chainlink (LINK) formed consecutive inside day candlestick patterns on Aug. 19 and 20, which showed indecision among traders. This was resolved to the downside today when the altcoin broke below the $14.69 support.

LINK/USD daily chart. Source: TradingView

The bulls are currently attempting to defend the 20-day EMA ($14.12). If they succeed, the LINK/USD pair could rise to $17.6738. The bears are likely to defend this level aggressively.

The 20-day EMA has flattened out and the RSI is just above the midpoint, which suggests a range-bound action in the short-term.

However, if the bears sink and sustain the pair below the 20-day EMA, a drop to the 50% Fibonacci retracement level of $13.4906 and below it to the 61.8% retracement level of $11.9281 is likely.

LTC/USD

The bulls defended the 20-day EMA ($59) on Aug. 19 but they could not push Litecoin (LTC) to the overhead resistance at $65.1573, which suggests a lack of demand at higher levels. This usually happens when traders believe they will get a better entry opportunity at lower levels if they wait for some time.

LTC/USD daily chart. Source: TradingView

If the bears sink the price below the 20-day EMA, a decline to $56 and below it to $51 is possible. Such a move will suggest that the momentum has weakened and could result in a range-bound action for a few days.

The gradually rising 20-day EMA and the RSI in the positive territory suggest that bulls have a slight advantage.

If the LTC/USD pair rebounds off the 20-day EMA, it will suggest that the bulls are defending this support and this could attract buyers who will then try to push the price above the $65.1573–$68.9008 resistance.

BSV/USD

Bitcoin SV (BSV) is not finding buyers even at the $200 support, which is a negative sign as it suggests that the buyers expect lower levels in the short-term.

BSV/USD daily chart. Source: TradingView

If the BSV/USD pair breaks and closes (UTC time) below $200, it will complete a descending triangle pattern, which has a target objective of $142.

The 20-day EMA ($214) has started to turn down and the RSI has slipped into the negative territory, suggesting advantage to the bears.

Contrary to this assumption, if the pair rebounds off $200, the bulls will try to push it above the $227 resistance. If successful, it will invalidate the bearish setup that can result in a move to $260.86.

ADA/USD

Cardano (ADA) closed (UTC time) below the $0.13 support on Aug. 19, which is a negative sign. The bulls tried to fake this move and push the price back above $0.13 on Aug. 20 but the bears aggressively defended the 20-day EMA ($0.136).

ADA/USD daily chart. Source: TradingView

This suggests that the sentiment has changed from buy on dips to sell on rallies. If the ADA/USD pair closes (UTC time) below $0.125, a drop to the next support at $0.11 is possible.

The 20-day EMA has started to turn down and the RSI has dipped into the negative territory, which suggests that the bears are making a comeback.

This bearish view will be invalidated if the pair turns up from the current levels and rises above the 20-day EMA. Such a move will indicate strong buying at lower levels.

BNB/USD

Binance Coin (BNB) is struggling to stay above the 20-day EMA ($22.15), which suggests that the bulls are not buying aggressively at this support.

BNB/USD daily chart. Source: TradingView

If the bears sink the price below the $21.7628 support, a drop to the 50-day SMA ($19.86) is possible. Such a move will suggest that the bullish momentum has weakened.

The 20-day EMA is flattening out and the RSI is just above the midpoint, which suggests a range-bound action in the short-term.

Contrary to this assumption, if the BNB/USD pair rises from the current levels and breaks above $24.4588, a rally to $27.1905 is possible.

CRO/USD

Crypto.com Coin (CRO) has been trading between the 20-day EMA ($0.1638) and the overhead resistance of $0.176596 for the past few days. This shows that the bulls are defending the 20-day EMA, which is a positive sign.

CRO/USD daily chart. Source: TradingView

Today, the bulls had pushed the price above $0.176596 but they could not sustain the higher levels, which shows selling by the bears on sharp rallies.

If the CRO/USD pair sustains above the 20-day EMA, the bulls will make another attempt to push the price above $0.176596. If the price closes (UTC time) above this level, a rally to $0.20 is possible.

Conversely, if the bears sink the pair below the 20-day EMA, a drop to $0.154322 is possible. A rebound off this support could keep the pair range-bound between $0.154322–$0.176596 for a few days.

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

Price Analysis 8/19: BTC, ETH, XRP, LINK, BCH, LTC, BSV, ADA, BNB, EOS – BTC Ethereum Crypto Currency Blog

Bitcoin and the altcoins continue to correct but lower levels are likely to attract buyers as the bullish macro trend has not changed.

Bloomberg Intelligence senior strategist Mike McGlone is bullish on Bitcoin (BTC) as he believes that “something unexpected needs to happen for Bitcoin’s price to stop doing what it’s been doing for most of the past decade: appreciating.”

However, with the S&P 500 hitting a new all-time high today, traders are booking profits in gold and crypto assets. As U.S. markets surge to new highs, Bitcoin price has corrected sharply in the last two days but this is likely to be a short-term blip in a secular uptrend.

Veteran investor Jim Rogers thinks that the U.S. stock market is in a bubble and the recent monetary measures by numerous central banks could result in the worst economic meltdown in his lifetime.

Daily cryptocurrency market performance. Source: Coin360

In other news, crypto investment firm Pantera Capital has seen strong inflows into its Pantera Venture Fund III over the past twelve months, which shows that cryptocurrencies are attracting new investors.

However, as the bull market progresses, greed takes over and some traders take excessive risk in order to earn quick returns.

Although a few traders might get lucky, most tend to give back their hard-earned gains due to reckless trading. Therefore, traders should be disciplined and stick to their trading principles to generate long-term wealth.

BTC/USD

Bitcoin completed the ascending triangle pattern on Aug. 17 when it closed (UTC time) above $12,113.50 but the bulls could not sustain the breakout and the price dipped back into the triangle on Aug. 18.

BTC/USD daily chart. Source: TradingView

The bulls are currently attempting to defend the 20-day exponential moving average ($11,515), which is an important level to watch out for because the bears have not been able to sustain the price below it since July 22.

A strong bounce off this support will show that the bulls continue to buy on dips and if they can propel the price above $12,460, the uptrend is likely to resume.

The moving averages are sloping higher and the relative strength index is in the positive territory, which suggests that the bulls have the upper hand.

However, if the bears sink and sustain the price below the 20-day EMA, a drop to $11,000 and then to $10,400 is possible.

ETH/USD

The failure of the bulls to sustain Ether (ETH) above $444.15 on Aug. 17 attracted profit-booking, which has pulled the price below the breakout level of $415.634.

ETH/USD daily chart. Source: TradingView

If the ETH/USD pair rebounds off the 20-day EMA ($392), it will suggest that the bulls continue to buy on dips and if they can push the price above $415.64, a retest of $446.479 is possible.

A breakout above $446.479 can result in a rally to the $480–$500 resistance zone. The upsloping moving averages indicate an advantage to the bulls but the negative divergence on the RSI suggests caution.

If the bears sink the price below the 20-day EMA, it will indicate that the momentum has weakened and a drop to $366 is possible. Below this support, the correction could extend to the 50-day simple moving average ($314).

XRP/USD

The bulls could not propel XRP above the overhead resistance zone of $0.326113–$0.346727 on Aug. 17, which attracted profit booking by the short-term traders. This has pulled the price down to the 20-day EMA ($0.285).

XRP/USD daily chart. Source: TradingView

If the XRP/USD pair rebounds off the 20-day EMA, the bulls will once again attempt to scale the price above the overhead resistance zone. If they succeed, the uptrend is likely to resume.

However, if the bears sink the price below the 20-day EMA, a drop to $0.268478 is possible. If the bulls defend this support, the pair could remain range-bound for a few days.

A break below the $0.268478 will be a negative sign that can result in a decline to the 50-day SMA ($0.238).

LINK/USD

Chainlink (LINK) corrected to $14.69 on Aug. 18, which is just below the 38.2% Fibonacci retracement level of $15.053. The bulls have purchased this dip and are currently attempting to resume the uptrend.

LINK/USD daily chart. Source: TradingView

If the buyers can push the price above $17.6738, a retest of the highs at $20.1111 is possible. A breakout of this resistance will signal resumption of the uptrend.

The moving averages are sloping up and the RSI is in the positive zone, which suggests advantage to the bulls.

However, if the bulls fail to push the price above $20.1111, a few days of range-bound action is possible. The LINK/USD pair is likely to signal a deeper correction on a break below the $14.69 support.

BCH/USD

The bulls could not propel Bitcoin Cash (BCH) above the $326.30 resistance on Aug. 17 and 18, which attracted profit booking. This has pulled the altcoin down to the 20-day EMA ($293) and has resulted in the formation of a symmetrical triangle.

BCH/USD daily chart. Source: TradingView

If the bears can sink and sustain the BCH/USD pair below the triangle, a drop to the 50-day SMA ($263) and then to $245 is possible. The 20-day EMA is flattening out and the RSI has dropped close to the midpoint, which suggests that the bulls are losing their grip.

However, if the pair rebounds off the current levels and breaks above the $326.30 resistance, a retest of $353 is likely.

LTC/USD

Litecoin (LTC) scaled above the overhead resistance of $65.1573 on Aug. 17 but the bulls could not sustain the higher levels. The bears are attempting to fake this breakout and have pulled the altcoin back below $65.1573.

LTC/USD daily chart. Source: TradingView

The negative divergence on the RSI suggests that the momentum has weakened. If the bears can sink the price below the 20-day EMA ($58), a drop to $51 is possible.

However, if the bulls defend the 20-day EMA aggressively, the LTC/USD pair will make one more attempt to rise above the $65.1573–$68.9008 resistance. If they succeed, a rally to $80 is likely.

BSV/USD

Bitcoin SV (BSV) turned down from $235.32 on Aug. 18 and broke below the 20-day EMA ($216), which suggests a lack of demand at higher levels.

BSV/USD daily chart. Source: TradingView

The bulls are currently attempting to defend the $200 support, which is just above the 50-day SMA ($198). If the BSV/USD pair rebounds off this level, the bulls will attempt to push the price above the $227–$235.32 resistance zone. If they succeed, a rally to $260 is possible.

However, if the bulls fail to push the price above $227, a few days of range-bound action between $200–$227 is likely. A break below $200 could signal weakness and result in a fall to $160.

ADA/USD

Cardano (ADA) slipped below the $0.13–$0.15 zone today but the bears have not been able to sustain the lower levels, which suggests some buying at lower levels.

ADA/USD daily chart. Source: TradingView

The 20-day EMA ($0.137) has flattened out and the RSI has dipped below the 50 level, which points to a possible consolidation in the short-term.

A breakdown and close (UTC time) below $0.13 will signal a possible change in trend. Below this support, a drop to the $0.11–$0.10 zone is likely.

The next leg of the uptrend is likely to start after the bulls push the ADA/USD pair above the $0.15–$0.1543051 resistance.

BNB/USD

Binance Coin (BNB) turned down from the $22.93–$24.4588 resistance zone on Aug. 17 and has dipped to the 20-day EMA ($22).

BNB/USD daily chart. Source: TradingView

If the BNB/USD pair rebounds off the 20-day EMA, the bulls will make one more attempt to push the price above the overhead resistance zone. If they succeed, a rally to $27.1905 is likely.

However, if the bears sink the pair below the 20-day EMA a fall to $20.50 is possible. Below this level, the correction could deepen to the 50-day SMA ($19.58). The negative divergence on the RSI signals a weakening momentum.

EOS/USD

EOS could not sustain above the $3.8811 resistance on Aug. 17, which resulted in profit booking by the short-term traders. The altcoin corrected to $3.3086 today, which is just above the 61.8% Fibonacci retracement level of $3.2766 and the 20-day EMA ($3.264).

EOS/USD daily chart. Source: TradingView

Usually, in a strong uptrend, the corrections end between the 38.2% and 50% Fibonacci retracement levels because the bulls are in a hurry to buy and they do not wait for a deeper fall.

However, a sharper fall to the 61.8% Fibonacci retracement level or below it suggests that the momentum has weakened. The critical support to watch on the downside is $3.2766 and the breakout level of $3.1104. A break below this support will be a huge negative.

If the bulls defend the 20-day EMA, the EOS/USD pair will again attempt to rise to the $3.8811–$3.95 resistance zone. A break above this zone will signal the possible resumption of the uptrend.

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

Market Wrap: Bitcoin Sinks to $11.6K as Ether’s Gas Keeps Rising – BTC Ethereum Crypto Currency Blog

CoinDesk 20 Bitcoin Price Index

Market Wrap: Bitcoin Sinks to $11.6K as Ether’s Gas Keeps Rising

Bitcoin traders are hitting the sell button. On Ethereum, DeFi is boosting fees again.

  • Bitcoin (BTC) trading around $11,658 as of 20:00 UTC (4 p.m. ET). Slipping 2.6% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $11,613-$12,100
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.
btcaug19
Bitcoin trading on Coinbase since August 17.
Source: TradingView

Bitcoin traded as low as $11,613 Tuesday. Traders continued selling the world’s oldest cryptocurrency after it hit a 2020 high of $12,485 on Monday. For the time being, it may struggle to break much higher from that. 

“Too much resistance at $12,000,” said over-the-counter crypto trader Alessandro Andreotti. “So it’s just going to go sideways for a while.” 

Katie Stockton, analyst for Fairlead Strategies, expects a weaker bitcoin market ahead. “There are signs of short-term upside exhaustion supporting continuation of today’s pullback over the next week or two,” said Stockton. Traders In the bitcoin options market don’t expect too drastic a pullback, however, as most strikes are well over $10,000. 

skew_btc_options_open_interest_by_strike_k-6
Bitcoin options open interest by strike price.
Source: Skew

Many traders remain bullish despite the recent price drop, seeing the decline as a bit of a respite before rising. “Last year’s high was $13,852,” noted Rupert Douglas of institutional crypto broker Koine. “We are going to test that, but whether we have a significant pullback to around $10,000 first is a tough call,“ Douglas added.

btcpsince2019
Bitcoin trading on Coinbase since 1/1/19.
Source: TradingView

First it must get over that $12,000 hurdle, and traders like Andreotti see that level as all that stands in the way of a return to bullish territory. “I believe that in the next attempt at breaking $12,000 we could have the next major support as high as $13,500,” added Andreotti.

Ethereum’s gas pain

The second-largest cryptocurrency by market capitalization, ether (ETH), was down Wednesday, trading around $398 and slipping 5.8% in 24 hours as of 20:00 UTC (4:00 p.m. ET). 

After jumping to an average all-time high of $6.68 on Aug. 13, Ethereum fees dropped briefly below $3. However, they are now rising again, currently at $3.59, according to data from aggregator Glassnode. The fees are required to make transactions on the network, including trading on decentralized exchanges, or DEXs. 

meanfees

Ethereum network average fees the past month.
Source: Glassnode

Peter Chan, a trader at firm OneBit Quant, says the network’s fee costs, also known as gas, are problematic for Ethereum’s DeFi market. “Everyone in DeFi was all over the place, including us, the last couple of days due to the insane gas cost,” he said. The bearish market trend, in addition to the fees, are problematic for the ecosystem’s cryptocurrencies, Chan told CoinDesk. “DeFi coins are going downhill now.” 

Other markets

Digital assets on the CoinDesk 20 are mostly in the red Wednesday. One notable winner as of 20:00 UTC (4:00 p.m. ET): 

Notable losers as of 20:00 UTC (4:00 p.m. ET):

Equities:

Commodities: 

  • Oil is up 0.66%. Price per barrel of West Texas Intermediate crude: $42.80.
  • Gold was in the red 3% and at $1,940 as of press time.

Treasurys:

  • U.S. Treasury bonds were mixed Wednesday. Yields, which move in the opposite direction as price, were down most on the two-year, in the red 2.6%.
https://www.coindesk.com/coindesk20
The CoinDesk 20: The Assets That Matter Most to the Market

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

https://www.coindesk.com/market-wrap-bitcoin-sinks-ether-gas

Original Article
Author: btcethereumadmin

What is Yield Farming? Exploring DeFi’s Recent Rising Star – CoinCentral


Yield farming is a method to harness idle cryptocurrencies such as coins, tokens, stablecoins, and put those assets to work in a decentralized finance fund, often generating interest rates that range between conservative 0.25% for less popular tokens and above 142% for some MKR loans.

Crypto lending rates on Defi Rate

A full list of interest rates and projects can be found at Staked.us and DefiRate.

Passive income from DeFi lending and staking isn’t guaranteed and actual returns will depend on each protocol’s approach. The risks run the gamut of missing out on the promised returns due to slow transactions or market volatility, or even losing your entire collateral.

To understand yield farming, we can draw comparisons from traditional finance: money is issued by a central bank, and then commercial banks lend those funds to businesses and individuals. Banks levy an interest rate on those loans, thus making a profit. 

In the cryptocurrency DeFi economy, a yield farmer plays the role of a bank, lending their funds to boost the use of coins and tokens. Thus, any cryptocurrency owner can hold their own funds while also participating in lending activity, essentially becoming a one-person commercial bank. This increases the flow of value within the decentralized ecosystem system, which in turn, generates returns for the lender.

“Farming” refers to reaping high annualized percentage gains while providing liquidity for various projects. In a way, yield farming resembles the more traditional practice of staking coins, where the user remains in control of their asset, but locks it temporarily in exchange for returns.

Yield farming has quickly become a point of interest for cryptocurrency enthusiasts and investors, often advertised for providing theoretical “fast gains” in the wake of high risk. 

Is yield farming worth it? Let’s dive into the mechanics of yield farming so you can become more educated on what yield farming and how it functions. 

In this article, we’ll explore:

  1. Yield farming’s relationship with DeFi
  2. How yield farming works
  3. Are your funds safe?
  4. The risks of decentralized lending
  5. The best DeFi projects for yield farming 
  6. The future of yield farming

Is Yield Farming DeFi?

Yield farming is a relatively new concept within the Decentralized Finance (DeFi) ecosystem, and the term entered the popular lexicon of the cryptocurrency world in 2020.

DeFi, an ambitious copy of the traditional finance system, is completely on decentralized Internet protocols. Instead of legal hassles and third-party intermediaries, DeFi offers a no-barrier entry to risk exposure. 

DeFi sprung from one of the use cases for the Ethereum protocol. The possibility for cheap and borderless transactions pushed the creation of startups that tried to mimic banks and financial brokers. DeFi applications branched out in various directions including novel cryptocurrency trading algorithms, derivatives trading, margin trading, money transfers, and most importantly, lending markets. 

DeFi Pulse – the growth of DeFi in 2020

Cryptocurrency lending entered a phase of functional maturity largely due to two behemoth projects – Maker DAO, and Compound. 

Other important DeFi platforms combine cryptocurrency lending and cryptocurrency interest accounts into single user-friendly platforms, such as the Celsius Network and BlockFi. These two companies are leaders in an industry where offering more than 6% on BTC and 8.6% on stablecoins such as USDC and USDT is considered industry standard. 

Another important aspect of DeFi and yield farming are trading projects and decentralized exchanges. These projects also offer yield farming, but the liquidity is used for trading. Prominent projects include Bancor, Augur, and UniSwap.

So, where does yield farming come into play?

How Yield Farming Works

Yield farming depends on the inflows and outflows of a certain anchor asset, usually DAI, a dollar-pegged coin that originated with the Maker DAO protocol. As of August 2020, DAI is backed by ETH and BAT deposits, and is used for loans, arbitrage or algorithmic trades. The DAI dollar peg makes the system more predictable by setting an intuitive value for each token, $1. Yield farming depends on a collateral of ETH or another token, which are used for loans and generate passive income. 

A DeFi user will usually lock in the chosen coins by using the MetaMask browser plugin. Locking in funds means the wallet will communicate with a smart contract on the Ethereum network. Depending on the logic of the smart contracts, there are various ways to extract value, though the most traditional one is to levy an interest rate on a cryptocurrency loan. Users will pay fees to transact on the Ethereum network, and due to heightened interest, those fees may rise rapidly, or make the network too congested to be able to participate successfully.

In the middle of March 2020, ETH prices dropped sharply, creating a perfect storm of market panic and the triggering of multiple algorithms on the Maker DAO platform. The Ethereum network also slowed down transactions, not allowing the owners to increase their collateral. Multiple deposits (known as vaults) were liquidated, and DAI briefly lost its dollar peg.

In the case of falling prices, the 150% over-collateralization can help offset the risk partially. Projects like DeFi Saver can automatically increase the collateral to stave off liquidations. Liquidations happen when the minimum collateral requirement breaks down due to price volatility.

DeFi tends to work better in climate climbing asset prices, because the collateral locked for yield farming is safer. For example, if ETH prices drop by 33%, this would liquidate most deposits on Maker DAO. Smaller price fluctuations also mean holding ETH may, in the long run, be more profitable than yield farming.

Alexander Ivanov, the founder of the WAVES protocol, compares DeFi to the frenzy for initial coin offerings (ICOs). Ivanov is still optimistic about the future, only warning against another bubble due to irrational enthusiasm.

The difference between an ICO and yield farming is that coins can be taken out of the DeFi protocol at almost any time, whereas participating in an ICO meant exchanging ETH or BTC for a new token. 

The new token could be changed back only by trading, once it was listed on an exchange. In DeFi, tokens become immediately liquid as they get pairings on the UniSwap exchange, a decentralized, automated trading protocol.

Are Your Funds Safe While Yield Farming?

All types of cryptocurrency investing carry risks. 

In DeFi, the lender is always in control of their funds, as operations happen in automated smart contracts and do not require the oversight of third parties. Unlike token sales, a person can withdraw their collateral at almost any time. 

However, smart contracts can dictate how and when you can withdraw your collateral, so be aware of you’re getting into, in particular during the cases of liquidation. 

What are the Risks of Yield Farming?

Locking your funds in vaults and using smart contracts is inherently risky. Smart contract exploits, which abuse the logic of the contract to generate high returns, and liquidations are a major threat to collateralized funds. The other big risk is the peg of the DAI stablecoin, which must retain its $1 value. Breaking the $1 peg will diminish the value of loans, and create panic selling and quick removal of liquidity.

The boom of DeFi also brought multiple untested protocols, using new smart contracts that led to malfunctions. The YAM DeFi protocol drew in close to $300 million in funds, but due to unforeseen smart contract behavior, led to the printing of thousands of billions of extra tokens. Other projects also release untested smart contracts, which may lead to losses of funds.

Another major concern is a more recent development: the Compound DeFi fund shows more than 1.3 billion DAI in its lending and borrowing markets, while there are around 421 million DAI coins created as of August 14, 2020. This situation resembles a debt bubble, in which cryptocurrency assets are created via the process of lending, thus circulating value that is artificially amplified by yield farmers. 

This situation may put pressure on the DAI dollar peg, and create more serious fallout in case of liquidations. So far, as of August 2020, greed and a price boom allow for the rapid growth of Compound DeFi. 

What are the Best Projects for Yield Farming

Maker DAO is one of the earliest successful attempts at cryptocurrency lending. Initially, lending DAI backed by ETH drew the initial bulk of capital into DeFi. 

Compound, a similar lending platform, followed soon after. Compound also evolved beyond lending, launching its own incentive COMP token. This caused an explosion in DeFi funding between July 15 and early August, when the amount of funds locked in yield farming doubled, from roughly $2 billion to above $4 billion. 

Both Compound and Maker DAO competed for the top spot in DeFi, based on locked value and on their well-known brands. In terms of algorithmic trading, projects like Augur, Bancor, and dy/dx remain prominent in the crypto space.

Alternatively, and not particularly “yield farming” per se, decentralized lending platforms and cryptocurrency interest accounts such as BlockFi and Celsius provide upwards of 8.6% APY on stablecoins without many of the complications of the yield farming outlined in this article, so they’re worth checking out if that’s up your alley. 

Final Thoughts – What is the Future of Yield Farming

Things tend to happen very fast in the cryptocurrency world, and yield farming seems to have spiked into the mainstream foray in the blink of an eye.  

If one was compelled to cast a prediction for the future of Yield Farming, we recommend looking at all possibilities– both positive and negative. 

For example, yield farming can mobilize otherwise idle tokens, potentially generating passive income for their holders. 

On the other hand, negative possibilities range from crisis events such as price crashes or exploits that manage to trick the smart contract and reap gains from collaterals. DeFi isn’t regulated and doesn’t come with the legal protections that come with more centralized financial institutions. 

For instance, DeFi tokens are not considered securities, and the US Securities and Exchange Commission hasn’t taken any decisive actions against them. 

While some yield farming projects are well-established and draw in the bulk of collateral, new DeFi algorithms are constantly popping up. Some DeFistartups use copied and unaudited smart contracts, posing risks for unexpected operations and effects. The YAM yield farming project, for instance, has recently crashed, taking some of the market collateral with it. 

In August 2020, the WAVES platform expanded into DeFi. A long list of former ICO tokens that were repurposed for various forms of DeFi, starting with BAT, LINK, 0x, Kyber Network. A complete list of the most current and active DeFi tokens can be found at CoinGecko.

Yield farming is a mercenary-like approach to cryptocurrency, where risk-takers seek out the highest yields, causing token price volatility along the way. Many DeFi projects are still in their nascent phases and can be rather difficult to understand, yet many newcomers are rushing in to get a piece of the pie. We advise our readers to do their own research into the intricacies of each platform– don’t lock in any funds you can’t afford to lose.

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

Grayscale Brings Altcoins to Over-the-Counter Trading – BTC Ethereum Crypto Currency Blog

The company also happened to clear a Nasdaq and NYSE listing requirement in the process.

Grayscale Investments, the asset manager behind the world’s largest Bitcoin trust, announced that its Bitcoin Cash Trust and Litecoin Trust are eligible for deposit at the Depository Trust Company, the largest securities depository in the world.

The Depository Trust Company (often shortened to DTC) was founded in 1973 and is based in New York. It holds securities worth $54.2 trillion as of July 31, 2017. By clearing the bar to deposit here, Grayscale also happens to meet a requirement for being listed on major stock exchanges like the New York Stock Exchange and the Nasdaq.

Grayscale announced on August 17 that shares from the firm’s Bitcoin Cash Trust will be available on over-the-counter, or OTC, markets under the BCHG ticker. The Litecoin Trust’s shares will use the ticker LTCN.

Original Article
Author: btcethereumadmin