Litecoin’s Charlie Lee: Crypto Bear Markets Are a ‘Good Time to Get Stuff Done’

Litecoin creator Charlie Lee has dismissed short-term price fluctuations as the upshot of “speculation,” saying that long-term valuation is a truer measure of crypto’s success.

Litecoin (LTC) creator Charlie Lee has dismissed short-term price trends as the upshot of “speculation,” stressing that long-term valuation is a truer measure of crypto’s success, in a CNBC interview August 27.

When asked to what extent price is a meaningful metric for a given cryptocurrency, and whether or not it reflects the current state of its network, adoption, or viability, Lee responded that:

“In the long-term, [price] tells us the success of cryptocurrencies, but short-term it doesn’t really tell us much. For example this year, there’s been so much adoption in Bitcoin and Litecoin, but their price has dropped 60-70 percent. It’s because it’s so volatile, it’s all about speculation these days, but in the future the price will reflect the success of the currencies.”

Lee noted that it was “hard to predict” when 2018’s bear market would turn, saying that having been in the space for seven years, he has seen positive momentum at times return within half a year – at others, only within three or four years.

He emphasized, however, that bear markets are in fact a good moment for developers and the crypto community to buckle down and focus on technological development, reaching adoption, and tackling challenges such as scalability:

“I’d like to see more [talk around] Lightning Network and sidechains, ways of helping Bitcoin and Litecoin to scale. I think with the price depressed, it’s actually a good time for people to […] get stuff done. That’s what I’ve seen in the past few bear markets actually.”

Lee also responded to CNBC reporter Melissa Lee’s question about his own decision to sell off his Litecoin holdings, explaining that he chose to do so due to “conflict of interest,” and that, accordingly, he wouldn’t be buying the altcoin back – not soon, perhaps not ever.

In an interview with Cointelegraph this February, Lee had further characterized the move to sell as his “first step” away from the project, a stance he later reaffirmed as necessary in order to ensure that Litecoin would become a fully decentralized cryptocurrency, true to the spirit of Bitcoin’s anonymous character with its notoriously absent creator, Satoshi Nakamoto.

As of press time, Bitcoin (BTC) is trading at $7,045, down just a quarter of a percent on the day, with Litecoin (LTC) trading at $63, up a solid 3.1 percent over the same time frame.

Bitcoin Breaks Above $7,000 as Crypto Market Rallies Into Green

Crypto markets are seeing strong positive momentum, as Bitcoin breaks above the $7,000 price point and the top 10 coins see significant growth.

Tuesday, August 28: crypto markets are seeing strong positive momentum bolster a persuasive recovery, as Bitcoin (BTC) breaks above the $7,000 price point and all but 3 altcoins amid the top 100 cryptocurrencies post strong gains on the day. Growth among the top ten largest assets ranges between 4.5 to almost 20 percent, as Coin360 data shows.

Market visualization from Coin360

Bitcoin (BTC) is trading at around $7,016 at press time, up around 4.2 percent on the day, according to Cointelegraph’s Bitcoin price index.

The top coin has seen several days of recovery since its brief price dent August 22 in the wake of toughened anti-crypto measures in China and a fresh series of disapproval orders for several Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

Bitcoin’s 7-day price chart. Source: Cointelegraph Bitcoin Price Index

On the week, Bitcoin is up a strong 4.1 percent, with its monthly gains now around 9.1 percent.

Ethereum (ETH) is trading around $289 at press time, up a solid 3.4 percent on the day.

While, the coin has yet to reclaim the $300 price point — which it last held August 20 — today, August 28, has seen the first persuasive upswing in price performance after a jagged and tentative week range bound between $270-280. Ethereum is now up 3.4 percent on the week; on the month, losses are just slightly down and remain at a stark 37.8 percent.

Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index

Among the top ten coins by market cap, Cardano (ADA) is up over 9 percent to trade at $0.10 at press time, with Litecoin (LTC) up 7.64 percent and Ripple (XRP) up 7.3 percent to trade at $61.88 and $0.35 respectively.

The strongest top ten performer is IOTA (MIOTA), soaring a staggering 19.4 percent on the day and capping two days of rapid growth to trade around $0.71 at press time.

IOTA’s 7-day price chart. Source: CoinMarketCap

IOTA’s growth has skyrocketed since August 27’s announcement that Japanese ICT conglomerate Fujitsu is launching an IOTA-based proof-of-concept (PoC) for audit trail processes in the manufacturing industry.

Among the top twenty coins on CoinMarketCap, TRON (TRX) is up 14.5 percent on the day to trade around $0.03, NEO is up 15.77 percent at $21.18 and DASH, ranked 13th, has outstripped all the top 100 cryptos on the day by rising 27 percent to $186.54.  

Dash’s 7-day price chart. Source: CoinMarketCap

Total market capitalization of all cryptocurrencies is at around $230.55 billion at press time, up around $15 billion since the start of trading Monday 27th.

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

As the crypto spot markets rally, and Bitcoin reclaims ground above $7,000, fresh data from the U.S. Commodity Futures Trading Commission (CFTC) shows that bearish positions for non-commercial contracts of Bitcoin (BTC) futures are also on the decline.

As shown by the negative total tally on the CFTC’s latest Commitments of Traders (COT) report, the market is still overall net short, yet the new figure of -1266 indicates a sharp turnaround from the -1926 recorded earlier this summer.

Blockchain, meanwhile, has this week drawn the attention of two of the “Big Four” global audit firms, Deloitte and PwC, both of whose fresh reports revealed high percentages of enterprise executives convinced by technology’s potential.

In the banking sector, JP Morgan CIO Lori Beer has this week said that blockchain will “replace existing technology” within a few years, and today, Germany’s joint stock company Deutsche Boerse (DB) furthered its partnership with blockchain-based liquidity provider HQLAx by making a million euro investment to become a minority shareholder.

To cap it off, the South Korean government has just announced its state-sponsored blockchain hackathon to encourage the technology’s inroads into the public and private sectors.

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, August 27

Bitcoin is the only virtual currency among the top 10 that has been trading above the 20-day EMA for the past three days.

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

The market data is provided by the HitBTC exchange.

Can Bitcoin witness a scorching rally in the remaining part of the year? Tom Lee, Head of Research at Fundstrat Global Advisors certainly thinks so and he has his reasons. He is still hopeful that the leading digital currency can reach $25,000 by the end of the year.

We, however, have maintained throughout that the people who are hoping for a repeat of the previous year’s rally will be disappointed. With a number of traders reeling under huge losses, it will take a lot of effort to turn sentiment around.

A trade war between the top two economies of the globe, or a currency crisis could certainly provide a big boost, but we believe that the recovery in cryptocurrencies will be gradual and will take time. A few of the top cryptocurrencies are showing signs of bottoming out.

Let’s find the ones that look good to lead the recovery higher.

BTC/USD

Bitcoin is the only virtual currency among the top 10 that has been trading above the 20-day EMA for the past three days. On August 24, the price again broke out of the downtrend line of the descending triangle, which is a bullish sign. This shows that buyers are gradually returning at these levels. The 20-day EMA is slowly turning up while the 50-day SMA is flat.

The critical level to watch on the upside is $6,955.79. The 50-day SMA is also located close to this level. If this critical resistance is crossed, the BTC/USD pair will pick up momentum and move up to $8,566.40. If the bulls fail to scale the $7,000 level, the digital currency will spend some more time in a bottom formation. We suggest traders hold their long positions with a stipulated stop loss.

On the downside, the critical support zone to watch is $5,900–$6,000. If this breaks, lower levels of $5,450 and $5,000 will become a reality.

ETH/USD

Ethereum has been trading close to the $280 level for the past seven days. In the last two days, the intraday range has shrunk sharply. This low volatility phase is unlikely to sustain for long.   

Any pullback attempt on the upside will face a stiff resistance at the 20-day EMA and above that at the downtrend line. The ETH/USD pair will show signs of a change in trend if it sustains above $358.

We will wait for the price to break out of the 50-day SMA before suggesting a long position.  

XRP/USD

The range in Ripple has shrunk in the past three days. The market participants are interested in neither buying or selling at these levels. This state of equilibrium is unlikely to continue for long.

A breakout of the 20-day EMA is likely to carry the XRP/USD pair to the 50-day SMA at $0.40, with minor resistance at the downtrend line 2. Above the 50-day SMA, the downtrend line 1 is the next major resistance point. Short-term traders can piggyback on this pullback trade, but only with a smaller position size because the trend is still down.

On the downside, any break of the $0.30 line will result in a drop to the August 14 low of $0.24508. We will wait for a buy setup to form before recommending any positions.

BCH/USD

Bitcoin Cash has been trading in a tight range of $513.60–$544.5476 for the past four days. Such a small range bound action is unlikely to continue for long.

The BCH/USD pair will either break out or breakdown sharply within this week. On the upside, once above the 20-day EMA, the downtrend line will act as a stiff resistance. Once the bulls scale above the downtrend line, a rally to $900 is probable.

If the bears break below the support zone of $473–$500, a retest of the $400 level will be in the cards. We will wait for the price to close (UTC time frame) above the downtrend line before suggesting any long positions.  

EOS/USD

The bulls have held EOS above $4.50 for the past 10 days, but have been unable to break out of the 20-day EMA.

The zone between the 20-day EMA and $5.65 might offer stiff resistance, above which a rally to the 50-day SMA is probable.

We will turn positive on the EOS/USD pair after the bulls close (UTC time frame) above the 50-day SMA. As an early entry point, we might suggest initiating a small position if the bulls break out of $5.65 with force. Until then, we suggest to stay on the sidelines.

XLM/USD

Stellar continues to trade close to the bottom of the range. During the previous two instances, the consolidations ended with a breakout to the upside.

If the bulls succeed in breaking out of the current consolidation, a move to the downtrend line is probable. The up move will pick up momentum after breaking out of this resistance. The longer the XLM/USD pair remains inside the range, the stronger the breakout will be.

Therefore, we suggest initiating a long position at $0.25 if the price sustains the level for about four hours. The initial stop loss can be placed at $0.18, which can be trailed higher as the digital currency reaches close to the downtrend line.

We suggest to use only 50 percent of the regular allocation. The rest of the position can be added if the price sustains above the downtrend line for a couple of days.

Our bullish view will be invalidated if the bears sink the price below $0.184.

LTC/USD

Litecoin has been trading inside the range for the past 16 days. The previous attempt to form a bottom failed on August 7 when bears broke below the range of $74–$94.  

Bears benefit as moving averages continue to slope downward. Any up move will face stiff resistance at $62.319, at the 50-day SMA and the downtrend line.

The LTC/USD pair will show the first signs of recovery when it breaks out of the downtrend line. We will wait for the trend to change before suggesting any long positions.

ADA/USD

Cardano continues to trade inside the range of $0.083192–$0.111843. It has not seen a huge interest from buyers as it is still below the 20-day EMA, which is sloping downward.

The bulls face overhead resistances between the 20-day EMA and the 50-day SMA. Any of these levels can cause the price to turn down.

Therefore, we will turn positive on the ADA/USD pair only after it sustains above $0.13 for about three days. Until then, we suggest traders stay on the sidelines.

XMR/USD

Monero is attempting to rebound from the strong support level of $81. The 20-day EMA, the 50-day SMA and the downtrend line will act as stiff resistance on the upside.

The XMR/USD pair has not broken out of the long-term downtrend line in 2018. Hence, a breakout of this will indicate a probable change in trend. We may suggest a long position once the price sustains above the downtrend line.

Ideally, after such an extended downturn, we would like to see a few days of accumulation close to current levels. We will buy when the trend has changed from down to up.

IOTA/USD

After consolidating in a tight range for about 10 days, IOTA is trying to break out of the 20-day EMA. If successful, it should move up to $0.6872 and thereafter to the 50-day SMA.  

As the price has sustained above the range and the 20-day EMA for the past few hours, traders can buy the IOTA/USD pair at the current levels with the stop loss at $0.46.

On the other hand, if the bears sink the prices below $0.46, the pair can drop to $0.4037.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

Bitcoin Lost: The Heroic and Maddening World of Crypto Wallet Recovery

David Veksler of Walletrecovery.info has seen it all. News.Bitcoin.com caught up with the man many in the ecosystem call upon when the ‘you-know-what’ hits the fan. Lost seeds. Fires. Seemingly unrecoverable hard drives. Mr. Veksler views the impossible as an interesting problem, a puzzle to crack. As more folks onboard into cryptocurrency, and as prices inch up, there is a lot at stake when things go wrong with a wallet holding precious digital coins.

Also read: $1.1 Million Landmark Crypto Fraud Case Establishes CFTC Jurisdiction

Crypto Wallet Recovery Comes in Many Forms

News.bitcoin.com (BC): Let’s jump right into it. What are some instances where cryptocurrency recovery seemed doomed?

David Veksler (DV): The family of an early Bitcoin enthusiast who died in a farm accident asked me to recover his Bitcoin fortune. I had to [search] through the entirety of his digital life to find his Bitcoin wallet backup. Several of his laptops had been burned in a fire and the data on the drives had to be extracted from the burned out shells.

[In another instance a] customer forgot the password to his Doge wallet. All he remembered was that the password was a Doge meme.  I wrote a Doge meme generator which created a database of every possible Doge meme (over 8 million). This wasn’t especially hard, just a fun project.

Most cryptocurrencies based on Bitcoin Core use a BerkeleyDB database to store the wallet data. Many of my cases involve recovering private keys from a corrupt database. Sometimes my existing tools can directly export the keys from the database file. My most difficult recovery involved an especially corrupt Litecoin database. I had to compile a custom build of the BerkeleyDB tools to reconstruct the wallet enough for it to be salvaged.

David Veksler often has to grapple with damaged parts.

BC: Wow. How did you get into cryptocurrency initially?

DV: In 2013, I partnered with a friend in China to build a Bitcoin exchange. I was invited to join this project based on my software architecture and stock market trading experience, not because of any particular interest in Bitcoin. (I had briefly tried Bitcoin mining back in 2010 but left my gaming desktop behind when I moved to China.) Building an exchange was a rapid and deep dive into the crypto community. At the peak of the bubble in December 2013, I attended a Bitcoin meetup in Shanghai. I met a number of “crypto celebrities” such as Roger Ver and was inspired by their belief in the world-changing potential of Bitcoin. There were in it for the long haul, and not just out to make a quick buck.

BC: So, then, what eventually drove you to start a wallet recovery business?

DV: Jeffrey Tucker and I have worked on various projects together since 2003. He forwarded a request for help to me because he knew that I have a strong background in crypto. I offered to recover my first wallet on a whim. Once my client had sent me their wallet, I was able to complete the recovery within 30 minutes and the client was very happy.

The idea to turn my experience into a business came from my wife. Most recoveries are technically straightforward – the most the most difficult part is gaining the customer’s trust. I knew that my personal brand and marketing skill would give me an edge here.  I also discovered that my competitors did not offer a solid legal contract or in-person meeting with customers, and I could offer additional assurance by being the first to offer both.

More Secure Wallets Exist

BC: Is at least part of the problem in cases brought to you the fact wallets and general crypto software is just too clunky, not user-friendly enough? Do you think that’s going to change for the better?

DV: Yes, absolutely. We can view cryptocurrency development in three stages: discovery, infrastructure, and adoption. The discovery stage was from 2008-2013 when the community identified the basic concepts and tools of cryptocurrencies. The infrastructure stage started around the time that people realized the need to build alternatives to the failed Mt Gox exchange in 2013. Once the mature infrastructure is in place for cryptocurrencies, the stage will be set mass adoption. This infrastructure includes foolproof custody solutions for consumers, trusted intermediaries, and a diverse network of vendors who accept Bitcoin. That might drive me out of business, but on the other hand, when billions of people start using Bitcoin, some users will inevitably find ways to make mistakes.

BC: Can you recommend some wallets you find more secure than others?

DV: Yes.  Without a doubt, hardware wallets are far more secure than any software wallet. Both the Trezor and Ledger Nano are superior in safety to any software-based wallet. Generally, both these are fairly secure and foolproof to use. However, I have worked with many customers who nevertheless lost or had their coins stolen from these wallets, so it is important to use them properly and keep in mind that hardware wallets are only safe if used properly. One customer had printed out his seed words but was missing several due to incorrectly set page margins. Another customer’s funds had been stolen because the customer had entered his words into notepad on his computer to print them out, and promptly had his Bitcoin stolen due to a keylogger. A customer stored his recovery word card in his jeans. The card was destroyed when the jeans had been laundered, which he only discovered months later when updating his wallet firmware.

BC: I get the feeling you encounter many of the same scams over and over again. Can you reveal the most common scams to help readers steer clear?

DV: Fake mining contracts: “mining contracts” which offered fantastic payouts, such as doubling your money in 10 hours. After sending the “mining company” Bitcoin, they would either disappear or usually ask for more money to unlock funds. Some “mining services” send a public address as proof of payment, or hold “mining profits” in a web wallet which cannot be withdrawn from. [See screenshot below]

Scam screenshot.

Malicious wallet software: wallet software that sends private keys to a central server, which steals the victim’s coins. “Electrum Pro” was a notorious example, as electrum.org is a real wallet, and electrum.com hosted a malicious wallet which stole victim’s Bitcoin.  

Fake forking services: these are services which promise to help users claim their forked Bitcoin Cash, Bitcoin Gold, Bitcoin Private, etc. Once the seed or private keys were entered, they disappear with the funds. Some customers had Bitcoin stolen from their hardware wallets because they did not realize that their recovery seed could be used to steal their Bitcoin.

Fraudulent exchanges: Many people are confused about where they store their legitimately purchased Bitcoin, or how Bitcoin is created and distributed. Malicious vendors take advantage of them by either claiming to sell cryptocurrency or simply announce that the recipient has coins which they forgot to claim. In some cases, they act like an advance-fee scam, where the victim has to pay upfront to collect their non-existent wallets. In other cases, the exchange takes payments (usually a credit card) for Bitcoin but makes withdrawing Bitcoin to a private wallet difficult or simply obscure. Many people are not aware of the importance of holding their own private keys, and leave their wallets with a third party for years until it disappears (as with Mt Gox).

Wallets for sale: scammers who sell cryptocurrency wallets with coins that are not spendable. Sometimes wallets are sold with the claim that the owners “forgot” the password for 5% of the value. (Many people assume that all cryptographic passwords can be broken if with enough skill, persistence, or hardware and ask me to do the hard work.) In other cases, wallets are sold to buyers who do not realize the proper way to transfer cryptocurrency to their personal address. Until very recently, Blockchain.info would reflect the watch-only (only the public address is stored) addresses in the total balance, which enabled the fraudulent sale of thousands of empty wallets with watch-only addresses.

Have you ever used a wallet recovery service? Share your thoughts in the comments section below.


Disclaimer: Bitcoin.com does not endorse nor support this product/service. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this interview.


Images via David Veksler.


Be sure to check out the podcast, Blockchain 2025; latest episode here. Want to create your own secure cold storage paper wallet? Check our tools section.

The post Bitcoin Lost: The Heroic and Maddening World of Crypto Wallet Recovery appeared first on Bitcoin News.

Bloomberg: More Than $500 Mln Tether Issued in August Is Not Impacting Crypto Markets

Bloomberg reports that Tether is not currently affecting crypto markets, after previously accusing USDT of BTC price manipulation.

New issuances of stablecoin Tether (USDT) are not currently affecting the prices of either major cryptocurrencies or smaller altcoins, Bloomberg reports August 24.

In the article, Bloomberg noted that the allegations that Tether has been used to manipulate or stabilize the price of Bitcoin (BTC) — previously put forward in a paper from the University of Texas — are not holding true for the crypto markets this August.

The paper, published in mid-June, had claimed that Bitcoin reached its all-time high of $20,000 due to price manipulation involving both Tether and sixth largest crypto exchange Bitfinex, which is reportedly “the only direct client” of Tether.

In a June article, Bloomberg had noted that the research paper used 87 examples of the largest purchases of Tether with BTC from March 2017 to March 2018, finding that although they accounted for “less than 1 percent of the time period examined, they amounted to about 50 percent of Bitcoin’s compounded return over that year.”

In this week’s article, Bloomberg noted that the findings made in a recent research paper by blockchain research firm Chainalysis claiming that Tether has been increasingly impacting the prices of smaller cryptocurrencies, such as EOS and NEO, instead of major cryptos such as Bitcoin, Ethereum (ETH), and Litecoin (LTC), are not true for August.

Chainalysis Tether Price Correlation With Crypto Markets Chart. Source: Bloomberg

Bloomberg writes that Tether has issued over $500 million worth in new tokens in August, according to Omniexplorer data. However, “not even more than half a billion” in new USDT has been able to make any impact on the price of EOS and NEO this month, Bloomberg stated, citing that the altcoins have dropped 37 and 44 percent this month respectively.

Bitcoin has also seen a drop of around 19 percent on the month, with Bloomberg noting that August’s Tether issuance is a “move that in the past would have often coincided with a rally in Bitcoin.”

In July 2018, Bloomberg had posted another article on Tether’s price manipulation, focusing on the Kraken crypto exchange and implying that daily tradings amounts on Kraken should be influencing the price of USDT. Instead, as author pointed out, the cryptocurrency remained relatively stable, which was considered by “experts on market manipulation” as a “red flag.”

Kraken refuted Bloomberg’s claims shortly after, stating that Bloomberg’s writers “fail to comprehend basic market concepts such as arbitrage, order books and currency pegs.”

Markets See Wave of Green, BTC Pushing $6,750, ETH At $280

Crypto markets are showing bullish sign of a persuasive recovery, as virtually all of the top 100 cryptocurrencies are in the green today.

Saturday, August 25: crypto markets are showing bullish sign of a persuasive recovery. Virtually all of the top 100 cryptocurrencies are in the green today, with solid growth of between 1 and 4 percent among the top 10 largest coins by market cap, as Coin360 data shows.

Market visualization from Coin360

Bitcoin (BTC) is trading at around $6,696 at press time, up around 2.5 percent on the day, according to Cointelegraph’s Bitcoin price index. The top coin has now seen several days of strong recovery since its steep plunge August 22 in the wake of toughened anti-crypto measures in China and a fresh series of disapproval orders for several Bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC).

Bitcoin’s 7-day price chart. Source: Cointelegraph Bitcoin Price Index

On the week, Bitcoin is up a strong 3.5 percent, with its monthly losses remaining around 17 percent.

Ethereum (ETH) is trading around $279 at press time, up a solid 2.5 percent on the day.

Nonetheless, the alt has yet to reclaim the $300 price point — which it last held August 20 — and has seen a more tempered upwards momentum as compared with Bitcoin over the past several days. Ethereum is currently down 2.8 percent on the week; on the month, losses are a severe 40.6 percent.

Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index

Among the top ten coins by market cap, Stellar (XLM), Bitcoin Cash (BCH), Cardano (ADA) and Ripple (XRP) are all seeing gains of around 1.5 – 2.5 percent on the day.

Litecoin (LTC) and anonymity-oriented altcoin Monero (XMR) are also seeing strong growth, both up over 2 percent to trade at around $58 and $93 at press time respectively. Litecoin has now virtually closed its losses on the mid-week, and secured a gain on its weekly chart:

Litecoin’s 7-day price chart. Source: CoinMarketCap

Among the top twenty coins on CoinMarketCap, IOTA (MIOTA), VeChain (VET), and Zcash (ZEC) are seeing the strongest upswing on the day, up around 6.6, 8.7 and 4.9 percent respectively.

Total market capitalization of all cryptocurrencies is at around $217 billion at press time, vying to reclaim its mid-week high of $221.7 billion, and up almost $13 billion from its plummet to $204.3 billion August 23.

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

Mid-week, the markets saw a similar tumble to the one that came in response to July’s news that the Winklevoss twins’ high-profile BTC ETF proposal had also been rejected by the SEC, which then saw a comparable $12 billion wiped from total market capitalization.

The tumble has nonetheless proved to temporary in the immediate-short term. As crypto analyst Brian Kelly argued on CNBC this week, the fact that the “market didn’t sell off” on news of the most recent ETF denials is a bullish sign of “sentiment change” that suggests many nonetheless expect we are coming “incrementally closer” to eventual ETF approval.

This has been reinforced by news that the SEC plans to review its fresh spate of ETF rejections, as well as voices within the agency — notably SEC Commissioner Hester M. Peirce — who have officially dissented from the regulator’s prior BTC-related ETF rejections.

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, August 24

Amid a wave of negative news, the crypto markets remain relatively stable, indicating that the bears are losing their grip.

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

The market data is provided by the HitBTC exchange.

On August 22, the U.S. Securities and Exchange Commission (SEC) rejected 9 proposals for new Bitcoin exchange-traded funds (ETFs), but – perhaps surprisingly – the news did not result in a crypto market crash, like it did in similar instances before. This shows that very few purely speculative positions had been built expecting an ETF application to be approved.

Another negative piece of news about China further tightening its restrictions on cryptocurrency trading was also taken in stride by the traders. When an asset class holds on to its support levels even after several negative news, it shows that the bears are losing their grip. Some are even expecting a trend reversal on Bitcoin.

On August 23, the SEC said that it will review its previous decision on the ETF rejections. However, the probability of any different ruling is low. Brian Kelly, a crypto analyst with CNBC expects Bitcoin ETFs to see the light of the day only by February 2019.

Barring a dip on August 14, the total market capitalization of the cryptocurrencies has held above the $200 billion mark. This shows that the selling has subsided and the bulls have gradually started accumulating around the current levels.

So, is this the right time to start cherry picking? Let’s find out.  

BTC/USD

Bitcoin has been making lower highs in 2018, but it is yet to make a lower low. It has largely held the February 6 low of $6,075.04. A couple of breakdowns below this level were not sustained and prices bounced back quickly.

The bulls broke out of the descending triangle pattern in the end of July, but they could not sustain the higher levels and the price again slumped back into the triangle. Currently, the bulls are again trying to break out of the triangle but are facing a stiff resistance close to the $6,580 mark. The 20-day EMA is also located at this level.

If the bulls scale the $6,600 levels, the rally is likely to extend to $6,955.79. The 50-day SMA is located just above this level and has flattened out, hence it will act as a major resistance. The BTC/USD pair will turn positive and pick up momentum only above this resistance. Until then, a range bound trading between $5,900–$7,000 can be expected.

The cryptocurrency will turn negative if it plunges below $5,900. That will increase the probability of a fall to $5,450 and beyond that to $5,000.

As the $5,900 level haven’t been broken down this year, we suggest traders hold their long positions. If the bulls fail to break out of $7,000 next time, we recommend closing the position because we might get an opportunity to buy again at lower levels. We should get a better picture in the next couple of days.

ETH/USD

Ethereum has been struggling to bounce from the recent lows. It has not even pulled back to the 20-day EMA, which shows a lack of buying at the current levels.

Both moving averages are sloping down and the RSI is also in the negative territory, which shows that the trend is headed downward. If the bears break below $249.93, the downtrend can extend to $200.

The ETH/USD pair will turn positive if the bulls breakout and sustain above the 50-day SMA. We might propose a long position earlier if we find a reliable buy setup. Until then, it is best to remain on the sidelines.

XRP/USD

Ripple is an underperformer, having lost about 90 percent of its value from its all-time-high. Though it bounced back from $0.24508, it is struggling to find buyers at higher levels.

The XRP/USD pair will show some signs of strength if the bulls scale above the 20-day EMA, the downtrend line 2 and the 50-day SMA. The trend will change after the price breaks out of the downtrend line 1.

On the downside, $0.24001 is the critical support to watch out for. We believe the virtual currency will spend some time in a basing pattern, before moving up. The traders should wait for a reliable buy setup to form before initiating any long positions.

BCH/USD

Bitcoin Cash has been trying to cling on to the $500 level for the past ten days, but the buying keeps drying up above the $600 mark.

Any pullback will face a stiff resistance at the 20-day EMA and the 50-day SMA. The BCH/USD pair will show first signs of a recovery if it sustains above the downtrend line.

On the downside, if the bears break below $500, a retest of the August 14 lows will be on the cards. If this level breaks, the next stop is $400. We suggest traders wait for buying to resume before initiating any long positions.

EOS/USD

The bulls are trying to hang on to the critical support at $3.8723. However, they are not able to push EOS above the moving averages, which shows that the sellers are still in command.

From March to April of this year, the EOS/USD pair had spent a lot of time consolidating, after bouncing off the lows. It commenced its upward move only after breaking out of the 50-day SMA convincingly.

We shall turn positive on the digital currency only after it breaks out and sustains above the 50-day SMA. Until then, we suggest traders stay on the sidelines.

XLM/USD

Stellar has not broken down convincingly of the $0.184 level since mid-December of last year. It has revisited this level thrice in 2018 and the previous two occasions resulted in a bounce. So, until the bears break down and sustain below the support, we expect it to hold. Therefore, we retain our buy recommendation given on August 15.

The XLM/USD pair has been consolidating between $0.184 and $0.25 since August 5. A break out of the range has a pattern target of $0.3157505, which is also close to the downtrend line. Above this resistance, the next target is $0.36.

If the bears break below the range, the virtual currency can fall to the pattern target of $0.11812475.

LTC/USD

The bulls are trying to arrest the decline on Litecoin. For the past 13 days, the price has been stuck inside the range of $49.318–$62.319.

A breakdown of the range will resume the downtrend and has a pattern target of $36.317, with a minor support at $40.

If the bulls succeed in breaking out of the range, the LTC/USD pair can move up to its pattern target of $75.32. As the 50-day SMA has not been scaled since May 16 of this year, we shall wait for the price to sustain above it and the downtrend line before turning bullish.

Currently, the virtual currency is in a no-trade zone.

ADA/USD

Even after a 93 percent fall from its intraday high of $1.396281, Cardano is struggling to find buyers. The downward sloping moving averages and the weak RSI reading show that the sellers still have an upper hand.

The ADA/USD pair has been trading in the range of $0.083192–$0.112598 for the past ten days. A breakdown of the range can result in a fall to $0.078, though the pattern target is way lower.

On the upside, there are numerous resistances between $0.111843 and $0.14. We shall turn positive after the price sustains above the 50-day SMA.

XMR/USD

Though Monero is in a downtrend, it has reached the critical support around $81, which had held from August 23 to November 6 of last year, before the uptrend started. Therefore, we expect the bulls to strongly defend this level.

For the past week, the 20-day EMA has been acting as a strong resistance and the bulls are struggling to break out and stay above it. Below $87, the XMR/USD pair can retest the low of $76.074.

On the upside, the first sign of a change in trend will be when the bulls succeed in scaling above the long-term downtrend line. Until then traders should stick to the other cryptocurrencies that are showing strength.

IOTA/USD

IOTA is in a downtrend. Both moving averages are sloping down and the RSI is in the negative territory, which shows that the sellers still have the upper hand.

For the past seven days, the IOTA/USD pair has been trading in a range of $0.4628–$0.5750. The break down from the range gives it a pattern target of $0.3506, with a minor support at the August 14 low of $0.4037.

If the bulls succeed in breaking out of the range and the 20-day EMA, a rally to $0.6872 is probable. If this level is crossed, the upward move can extend to the 50-day SMA at $0.82. Therefore, we retain the buy recommendation given in the previous analysis. Only traders with a high risk appetite should attempt this trade.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.

Markets See Red Following BTC ETF Rejections, News of Anti-Crypto Measures in China

Virtually all of the top 100 cryptocurrencies are in the red today, with average losses of between 1 and 4 percent among the top 10 largest coins by market cap.

Thursday, August 23: virtually all of the top 100 cryptocurrencies are in the red today, with average losses of between 1 and 4 percent among the top 10 largest coins by market cap, as Coin360 data shows.

Yesterday evening’s news of the U.S. Securities and Exchange Commission’s (SEC) disapproval orders for 9 different Bitcoin exchange-traded fund (ETF) proposals from 3 applicants — which intersected with emerging reports of toughened anti-crypto measures in China — has apparently reversed yesterday’s short-lived market upswing.

Pointedly, multiple crypto commentators had attributed the markets’ evanescent green to bulls exploiting a maintenance window on leveraged crypto trading platform BitMEX to force a spike. Many had also argued that the negative announcements from the SEC had been widely expected, and were contributing to the alleged market action.

Market visualization from Coin360

Bitcoin (BTC) is trading at around $6,452 at press time, down around 1 percent on the day, according to Cointelegraph’s Bitcoin price index.

The top coin had been range bound around $6,400-6,500 for most of the week before sharply spiking August 22 and continuing to circle the $6,700 mark for most of that day. Breaking news from the U.S. and China then saw Bitcoin take a steep price hit, although the coin has since recovered back to hold its week-long levels.

Bitcoin’s 7-day price chart. Source: Cointelegraph Bitcoin Price Index

On the week, Bitcoin is up 0.8 percent, with its monthly losses at around 16.5 percent.

Ethereum (ETH) is trading around $274 at press time, dropping around 2 percent on the day.

While its losses have correlated with Bitcoin’s sharp descent, the leading altcoin has not since recovered to reclaim the earlier trading levels from its weekly chart, although it had notably been losing its hold on the $300 price point as of August 20. Ethereum is currently down 5.6 percent on the week; on the month, losses are at almost 40 percent.

Ethereum’s 7-day price chart. Source: Cointelegraph Ethereum Price Index

Among the top ten coins by market cap, Stellar (XLM), Bitcoin Cash (BCH), Cardano (ADA) and Ripple (XRP) are all seeing losses of around 2-4 percent on the day.

Among the top twenty, NEO’s losses are somewhat heftier, pushing 4 percent to trade around $17.12, after taking a tumble earlier today to as low as around $16.18.

IOTA’s 24-hour price chart. Source: CoinMarketCap

Ethereum Classic (ETC) is down 2.7 percent to trade at $12.40 at press time.

As ETC’s chart agains shows, the market-wide tumble aligns closely by time frame across all of the major crypto assets:

Ethereum Classic’s 24-hour price chart. Source: CoinMarketCap

Total market capitalization of all cryptocurrencies is around $208.5 billion at press time, down almost $13 billion from yesterday’s high of $221.4 billion.

7-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap

Today’s $13 billion market cap squeeze is similar the sharp market tumble that came in response to July’s news that another Bitcoin ETF proposal — this time submitted by the Winklevoss twins’ — had also been rejected by the SEC, which then saw a dizzying $12 billion wiped from total market capitalization.

The parallels extend beyond market response, as the regulator had in all of its disapproval orders reiterated its qualms over inadequate “resistance to price manipulation” and vulnerability to fraudulent practices in the insufficiently sized Bitcoin derivatives markets.

China, meanwhile, has this week moved to prohibit all commercial venues from hosting any crypto-related events in Beijing’s Chaoyang district, as well as targeting communication channels or “loopholes” through which Chinese investors can gain exposure to Initial Coin Offerings (ICO) and crypto trading.

As reported August 21, China’s leading social media platform WeChat has permanently blocked a number of crypto and blockchain related accounts that were suspected of publishing crypto “hype” in violation of regulations introduced earlier this month. New measures are also reportedly underway to toughen the “clean-up” of third party crypto payment channels, including those used by over the counter (OTC) platforms.

Away from the negative onslaught from the U.S. and China, crypto analysts have today suggested that Segwit adoption is on the rise for Bitcoin transactions, as the top crypto continues to trade within a relatively stable price range. EToro Senior Market Analyst Mati Greenspan today tweeted:

“Price stability is great for network development!! Here we can see the adoption rate of the Segwit solution skyrocketing shortly after the number of transactions fell. Not sure when the next #bitcoin bull run will be but I’m quite confident we’ll be ready for it.”

Bitcoin Segwit Adoption, January 2016-July 2018. Source: Woobull charts

US: Hawaii Representative Reveals Crypto Holdings of ETH, LTC After Rule Change

After the US required federal workers to disclose crypto holdings, Hawaii Rep Tulsi Gabbard revealed she purchased Ethereum and Litecoin.

Hawaii’s Democratic Representative Tulsi Gabbard has joined the list of U.S. politicians who have invested in cryptocurrency, having disclosed purchases of Litecoin (LTC) and Ethereum (ETH), Bloomberg reports Thursday, August 23.

Citing an income filing from August 14, the publication notes Gabbard purchased between $1,001 and $15,000 worth of the two assets at some point in December 2017.

At the time, both were highly volatile, rising steeply towards the end of the month after Bitcoin (BTC) hit all-time highs around $20,000.

Depending on the exact date of the purchases, Gabbard could have secured ETH and LTC for as little as $444 and $87 or as much as $814 and $344 respectively, according to data from CoinMarketCap.

The value of both has since sunk below the December minimums as part of an overall cryptocurrency market slump which has continued throughout 2018.

In June of this year, the United States Office of Government Ethics (OGE) had announced in a notice that politicians must disclose cryptocurrency holdings in filings as part of “property held… for investment or the production of income.”

According to the new guidance, those that file are “required to identify the name of the virtual currency and, if held through an exchange or platform, the exchange or platform on which it is held,” Cointelegraph quoted.

At the beginning of August, chair of the Judiciary Committee of the U.S. House of Representatives and Congressman Bob Goodlatte had also reported that he owns between $17,000 and $80,000 in digital currency in his annual Financial Disclosure Statement.

Cryptocurrency acceptance meanwhile remains a perennial issue among both current and prospective US politicians, with some candidates announcing their intention to take crypto campaign donations despite the unclear legal framework.

Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, IOTA: Price Analysis, August 22

Bitcoin left behind major altcoins to see a brief uptick Wednesday after scheduled maintenance at BitMEX caused a short squeeze.

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

The market data is provided by the HitBTC exchange.

On August 21, at 01:00 AM UTC time, Bitcoin prices surged, breaking out of the overhead resistance at $6,617.5. Within 20 minutes, Bitcoin spiked from $6,459.5 to $6,827.5, topping out at $6,888.32, an hour later.

The upward move coincided with the scheduled maintenance on BitMEX and looks to have been a short-term trade. However, a breakout above $6,617.5 is likely to have triggered stops on the short positions that had reached a four-month high on August 21. However, it is still too early to confirm if the trend has changed or not.

The Winklevoss twins have founded a self-regulatory organization, the Virtual Commodity Association, that aims to improve transparency among its members. Currently, it has four members, which will meet in September to set the rules and guidelines for the association.

This is another positive step that might allay some of the apprehensions of the U.S. Securities and Exchange Commission (SEC) regarding a Bitcoin exchange-traded fund (ETF). Two Bitcoin ETF proposals will come up for consideration this week and a few others in September. The SEC’s ruling will decide the next short-term trend for the cryptocurrencies.

Should the traders initiate long positions or should they remain on the sidelines? Let’s find out.

BTC/USD

On August 21, the bears attempted to sink Bitcoin but the bulls bought the dip to $6,000, which is a positive sign. Today, the breakout of the overhead resistance of $6,617.5 resulted in a spike to $6,888.32, which triggered our buy proposed in the previous analysis at $6,750. However, the bulls could not hold on to the higher levels.

The bears have pushed prices back below the critical support at $6,617.5. This shows that the short sellers are pouncing on any short-term rise. The BTC/USD pair is likely to witness a few more days of range bound trading. The bears will make another attempt to break down of the critical support zone of $5,900-$6,000 within the next few days. If this support breaks, our assumption of a large range on the pair will be invalidated.

On the upside, $6,617.5 is the critical level to watch out for because the downtrend line of the descending triangle, the horizontal resistance and the 20-day EMA all converge at this point. If prices sustain above this level, the bulls are likely to make another attempt to break out of the 50-day SMA.

We suggest traders hold the long positions with the stop loss at $5,900. They can add the remaining 50 percent of the position after the cryptocurrency sustains above $7,000.   

ETH/USD

Ethereum is in a downtrend with both moving averages sloping down. It is struggling to even pull back to the 20-day EMA, which is a bearish sign.

If the bears succeed in breaking below the support zone of $249.93-$269.78, the ETH/USD pair can slump to $200.

On the upside, a breakout of the 20-day EMA can result in a rally to $358, which will act as a stiff resistance. The pair has not broken out of the 50-day SMA since May 24 of this year, hence, a break out of the 50-day SMA will indicate a change in trend.

The traders should wait for a buy setup to form before initiating any long positions.

XRP/USD

The pullback on Ripple is facing resistance at the 20-day EMA and the bulls are struggling to sustain above the moving average. If this level is crossed, the bulls will again face selling pressure at the downtrend line 2 and above that at the 50-day SMA.

Once the bulls scale above the 50-day SMA, the XRP/USD pair can move up to $0.5, where it will again face resistance from the downtrend line 1.

The bulls are defending the $0.31 level on the downside. If this level breaks, a fall to $0.27255 and thereafter a retest of the lows at $0.24508 is probable.

We shall wait for some buying to return before turning bullish.

BCH/USD

Bitcoin Cash has been trading between $500 and the 20-day EMA since August 15. If the bears sink the prices below $500, a retest of the $473.9060 line is probable.

On the other hand, if the bulls break out of the 20-day EMA, a rally to the downtrend line is likely. We shall turn positive if the BCH/USD pair sustains above the downtrend line for a couple of days.

Until then, it is best to remain on the sidelines.

EOS/USD

EOS broke out of the downtrend line but could not cross the 20-day EMA. The bears have again pushed the prices back below the downtrend line. On the downside, the support is in the zone of $3.8723-$4.1778.

The EOS/USD pair has not broken out of the 50-day SMA since June 10. Hence, it is likely to act as a strong resistance. Once the bulls scale the 50-day SMA, a rally to $9 and thereafter to $11.6 is possible.

Our buy recommendation made in the previous analysis stands cancelled. We shall wait for the price to sustain above the 50-day SMA before proposing any trades.

XLM/USD

Though the bulls have managed to defend the long-term support line of $0.184, they have not been able to push Stellar above $0.25 since August 5.

The XLM/USD pair has a history of consolidating near the bottom of the range before embarking on an upward move. We see a similar setup developing this time.

The probability of a rally will increase if the bulls push the prices above $0.25. Therefore, we maintain the buy recommendation made on August 15. Our assumption will be negated if the bears break below the critical support at $0.184.

LTC/USD

Litecoin has been consolidating in a tight range of $49.318-$62.319 since August 10. Both moving averages are still sloping down, which shows the advantage the bears have.

A breakout of the range will result in a rally to the downtrend line, which is just above the 50-day SMA. We expect a strong resistance at that level. The first sign of a change in trend will be when the LTC/USD pair sustains above the downtrend line.

If the bears break down of the range, the decline can extend to $40. As the virtual currency has been in a strong downtrend in 2018 so far, we shall wait for it to form a bottoming pattern before suggesting a long position in it.

ADA/USD

Cardano has been struggling to climb above the overhead resistance of $0.111843. It has been stuck in the range of $0.083192-$0.112598 for the past eight days.

If the bulls break out of the 20-day EMA and the $0.111843 line, a rally to the downtrend line is probable where it might face a stiff resistance. If the bulls sustain above the $0.15 mark, it will indicate a likely change in trend.

On the downside, if the bears sink the ADA/USD pair below $0.083192, a fall to $0.078 is probable.

We shall wait for the trend to change before suggesting any long positions on it.

XMR/USD

For the past five days Monero has been trading close to the 20-day EMA, which is a positive sign. If the bulls force a break out of the overhead resistance, a rally to the 50-day SMA, which is close to the long-term trendline resistance, is likely.

If the XMR/USD pair breaks below $91, a retest of the lows at $76.074 is likely. Though the trend remains negative, the flattening 50-day SMA points to a probable range bound action for a few days.

We shall turn positive on the cryptocurrency after it breaks out of the downtrend line at $120. We don’t find any reliable buy setups at the current levels, hence, we suggest remaining on the  sidelines.

IOTA/USD

IOTA has been consolidating in a tight range of $0.4628-$0.5750 for the past five days. The 20-day EMA is also placed just above the range.

A break out of the 20-day EMA can result in a rally to the 50-day SMA, which is close to $0.85. This offers an opportunity for a quick short-term trade.

Traders can buy the IOTA/USD pair on a close (UTC time frame) above $0.58 with the stop loss at $0.46. Profits can be booked closer to the $0.82-$0.85 range. We anticipate a strong resistance at the $0.9150 mark.

If the virtual currency breaks down of $0.4628, it can slide to the August 14 lows of $0.4037.

The market data is provided by the HitBTC exchange. The charts for the analysis are provided by TradingView.