Bitcoin Bottom Close, Bulls Signal a “Strong” Reversal

  • Trading volume drops to just $120 million
  • MVRV, unrealized profits, and SSR paints a bullish picture
  • Investor momentum tracking indicator suggests bottom most likely in

Bitcoin is not seeing much action and is stuck around $7,500 for over a week now. However, the volume has taken a severe drop, falling to a mere $120 million. Such low volumes make it easier for a large amount of transactions to move the prices and the market.

Indicators Painting a Bullish Picture

According to the on-chain data analytics platform, Glassnode, the bottom of the market is “close” and when that will happen the “reversal will be strong.”

MVRV that historically has indicated the bottom of the Bitcoin market cycle is consolidating towards   1. The Market Value to Realized Value (MVRV) is the ratio between market cap and realized cap that gives an indicator of when the traded price is below fair value.

Another indicator pointing towards a similar bullish picture is unrealized profits. Relative unrealized profit is the total profit in USD of all coins in existence whose price at realization time was lower than the current price normalized by the market cap.

Now that investors have less profit to realize, the selling pressure on Bitcoin has started to diminish what is allowing for an upward momentum to build, notes Glassnode.

Another positive factor is SSR, the ratio between Bitcoin supply and that of stablecoins, USDT, TUSD, USDC, GUSD, PAX, DAI, and SUSD, denoted in BTC.

When SSR is low, that means the stablecoin supply has more “buying power” to purchase Bitcoin.

Currently, it is at 26.9, down from last month’s nearly 33 indicating high buying power which is “good in a bottoming market.”

“The more capital waiting on the sideline, the stronger the reversal once investor sentiment turns bullish again.”

Prominent analyst Willy Woo also pointed out that on-chain momentum is “crossing into bullish” and is advising to prep for the upcoming Bitcoin reward halving front running from here on.

As per the indicator that tracks investor momentum, the bottom seems to be most likely in, with “anything lower will be just a wick in the macro view.”

Long Target of $100k Intact but More Pain Expected Still

However, TraderXO shares his favored scenario where he sees Bitcoin price dropping further to $5.8 to $6k. This, however, is just one of his scenarios for BTC price and he says “nothing is certain,” but one should have a plan.

Veteran trader Peter Brandt is also expecting the Bitcoin to bottom soon but not before July 2020 when according to him BTC will complete ts 80% correction at $5,500.

This bearishness in the near term is because there have been four violated parabola since 2011 and massive capitulation by crypto bulls will lead to a bottom next year.

In the immediate term, however, he is bullish as the bottom of the multi-year channel will hold and “6-month bear channel on the daily chart will provide launch for renewed parabolic phase.”

As for the long term, the historic bull trend remains intact with a target of $100,000.

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Author: AnTy

Peter Brandt Considers Bitcoin Could Reach $100k During The Next Bull Run

Bitcoin could eventually reach $100,000, the main question is when and how. This is according to Peter Brandt, one of the most respected cryptocurrency analysts in the crypto market. He spoke on this in a recent video released a few days ago.

Peter Brandt Explains How Bitcoin Could Reach $100k

In this explanatory video, he said that Bitcoin is moving towards the $100,000 mark or even further in the long-term. He shared a chart in which Bitcoin is close to the bottom of a multi-year channel and the current bear channel in which Bitcoin is since June 2019 will eventually help the market gather enough strength to move higher.

At the same time, he explained he is not trying to get new signals every single day or week considering he based his analysis on possibilities rather than certainties. If Bitcoin is able to break out from the current bear channel, the next bull phase could start and help the leading digital currency reach a new all-time high.

However, things could not go as planned if Bitcoin continues the current bear trend and if it breaks the multi-year trend. Bitcoin could move down to as low as $5,324 in July 2020. That would mean a price decrease of around 30% from current values.

Nevertheless, he considers that Bitcoin will never go to zero because there will always be interest from the community at any price level. Indeed, the digital currency is currently being traded around $7,615 and it has a valuation of $137.79 billion.

In order to reach these price predictions, he explained that chart analysis is based on fractals. The main advantage of these analysis in the fact that it is possible to identify few opportunities each year with asymmetrical reward-to-risk ratio and in Bitcoin, it is possible to find these opportunities around four to five times a year.

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Author: Carl T

EOS Network Downgraded To C- On Weiss Ratings For Centralization And Potential For Faking Activity

EOS network’s governance issues continue to haunt them as Weiss Ratings recently downgraded the network from B category to C-. Weiss Ratings also posted a Twitter thread explaining why they had to downgrade the project which was once hyped as “Ethereum Killer.”

Weiss Ratings in its tweet claimed that although the public sentiment was right behind the project in its hayday and the platform was known for being a fast, efficient and most important a decentralized ecosystem. However, in the past year, there has been a continuous decline in the decentralization aspect where major whales control the majority of the token flow which could be of a deep concern.

Weiss Ratings claimed that the top 100 EOS token holders who represented a meager 0.01% of the total token holders on the platform, has a whopping 68% of the voting power on the network. This means these whales can easily manipulate the network as per their will.

One of the main reasons that the EOS network was lightening fast compared to the likes of Bitcoin or Ethereum because the platform has locked the number of block producers to just 21 which means any update on the leader had to go through these 21 block producers. Compare it to Bitcoin which has over 9,000 nodes, thus each transaction on the network has to run through all these leaders to verify the authenticity of the transactions.

However, this feature which was considered as a boon for the network soon turned out to be a bane as it leads to centralization in governance. The recent case where it airdropped EIDOS token, which led to great congestion on the network. The congestion led to a very high operational fee and thus the whales who had the EOS tokens were able to pay for high transaction fees and hoard the EIDOS tokens.

Whales could Diverge Resources to Fake Activity

The Weiss Rating tweet also speculated that since the resources and control of the network are concentrated in the hands of very few, they could easily fake activities like doing a series of fake ghost transactions to heighten activity on the network.

This was even proven during the EIDOS airdrop when the network was registering transaction activity as high as 43 million per day, most of which were done towards gaining more free EIDOS. The EIDOS airdropped required users to send a minimum amount of EOS to an EIDOS wallet address and in return, an unspecified amount of EIDOS was sent back to users’ accounts.

EOS was trading at $2.75 at press time and has lost most of its gains from its yearly highs of $6.0. Looking at the string of controversies surrounding the altcoin, the team behind it would really need to rethink their strategy for the long run.

All of Today’s EOS Price Analysis, Chart Forecasts and Industry News

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Author: James W

Experts Issue Warning On Crypto That Will ‘Increase In Value Faster Than Anything Else In History’

If something seems too good to be true, chances are it is.

A new cryptocurrency has entered the market that is “designed to go higher, faster, and retain its value.”

However, currently, it values at $0.00 and is listed on only EtherDelta and Bidesk exchanges and haven’t made it to the market aggregating websites like CoinMarketCap.

This crypto-asset called HEX which is making such a bold statement is a fresh experiment in the market that market commentators are warning people against, calling it a “scam” and comparing it with the Bitconnect.

In 2016, the open-source crypto project Bitconnect was released with a high-yield investment program, a Ponzi, where users were to lend the value of BCC coin in return for interest payments.

Users traded their Bitcoin for Bitconnect Coin on the lending platform, where the interest payout was determined by “trading bot” and payouts were calculated as a fraction of the open and close price of BTC.

After rising to nearly $500 value, the coin plummeted below $1 after the platform administrators closed the learning platform in January 2018.

But What is HEX?

Originally known as Bitcoin HEX, this cryptocurrency is the brainchild of serial entrepreneur and marketing expert Richard Heart. On Dec. 2, 2019, HEX completed the snapshot and is now in circulation.

According to the HEX website, the leading cryptocurrency Bitcoin can be mined, sent, and received but doesn’t allow to earn interest on unless you entrust your BTC to a “centralized third party.”

Here, you need to send your HEX, claimed by the BTC users — 10,000 HEX per BTC — or acquired in exchange for ETH, to the same smart contract that minted the HEX in the first place and it credits you interest.

HEX is a Certificate of Deposit (CD) and the more the holders’ stake, the less the interest. Users who lock up a greater amount of HEX, and for longer periods, get to earn the highest rewards. HEX’s FAQ claim it will always be able to make the payouts.

Unlike Bitcoin’s fixed 21 million supply, the primary factor behind the narrative of it being a store of value, “only guesses can be made” about HEX’s supply as it is a function of “how many coins are staked.” And bonuses will further increase it.

Another issue with this project is its “origin address” that earns as much of the rewards as other users do. Though Hearst says this address is not under his control, the lack of transparency is surely a matter of concern.

As for its long term goal, HEX aims to replace gold as a store of value and credit card and payment companies. However, Bitcoin is the only cryptocurrency that has gained a high level of adoption among retailers and institutions alike and no other cryptocurrency from thousands available in the market has come even close to its level.

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Author: AnTy

Nvidia Claims Investors’ Cherry-Picking Information, Not Misled about Crypto Mining Boom

  • Investors are relying on Morgan Staley analyst others who are clearly speculating – Nvidia
  • Nvidia misled about crypto mining demand & intentionally provided false information – investors

Nvidia has urged a California federal judge at a hearing on Friday to dismiss a case against it brought by investors who claim that the company misled them about cryptocurrency mining revenues.

The American technology company that designs graphics processing units (GPUs) says the plaintiff cherry-picked information and relied on a Morgan Stanley analyst and others who have been “speculating” Nvidia’s financials.

Crypto Woes Affecting Nvidia

The case was first brought in in Dec 2018 during the crypto winter when the leading cryptocurrency Bitcoin declined 84% and the crypto market lost a good chunk of its value. With this as one of the contributing factors in the company’s disappointing Q3 results, the company’s shares also recorded a significant drop in its price.

After the disappointing numbers in Q4 of the prior financial year and Q1 of this year however, for the three months ended 27 October, Nvidia reporting $3.014 in sales, up 17% on the prior quarter.

After struggling with weak demand in gaming and data segments since last year along with loss of demand from crypto, the company recorded upbeat earnings beating analysts’ forecast but disappointed investors caused the share price to fall.

Nvidia Rips into Analysts

Nvidia’s core business is the gaming sector but the popularity of the crypto mining sector pushed the demand for its GPU units and the company towards the digital asset industry.

As such the company produced mining specific processors called the Crypto SKU in 2017. Nvidia then recorded the revenues from the hardware in the general business segment. However, the crypto miners still preferred other gaming chips.

Investors claim that the company led them to believe that the higher gaming revenues were separated from that of the crypto mining boom. And it wasn’t until August 2018, that the Nvidia admitted the gaming segment involved crypto-related revenue.

Last year, investors sued the company claiming the company misled them about crypto mining demand. But Nvidia claims investors are cherry-picking the corporate statement, ignoring the information provided by the company about its revenue streams.

Also, the company says analysts including the one from Morgan Stanley used a flawed model that suggested static demand for gaming chips. Investors claim Nvidia was trying to intentionally provide false information on how much it was bringing through crypto-related sales.

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Author: AnTy

Ethereum’s Istanbul Hard Fork Goes Live After A Month-long Successful Upgrade

Ethereum network is currently undergoing a series of upgrades which is lined up to 2021 when the Ethereum network would completely move to Proof-of-Stake (PoS) consensus from its current Proof-of-work (PoW) mining consensus. The network has successfully completed its Istanbul upgrade, which has been a month-long process, finally commencing on December 8th at 0:25 UTC.

The Istanbul Hardfork was the 8th such major upgrade on the network since its inception and third in 2019, the previous two being February’s St. Petersburg and Constantinople hard forks. The hard-fork took place on Ethereum’s 9,069,000th block.

The Istanbul hard-fork was pegged to be a major milestone in the run-up to its main goal of making the Ethereum network faster and cheaper. The upgrades goal was implemented to improving six crucial Ethereum Improvement Proposals (EIPs), out of these six EIPs three namely EIPs 1108, 2028, 2200 were aimed at reducing the Gas cost of various operations on the platform.

The other EIPs improvement included Denial-of-service (DDoS) attack resilience on EIP 1344 and Interoperability with equihash-based proof-of-work (PoW) cryptocurrencies such as zCash on EIP 152.

Vitalik Buterin claimed Ethereum would support 3,000 tps after Istanbul hard-fork

Back in November, Ethereum co-founder Vitalik Buterin had claimed that Etheruem would be able to process 3,000 transactions every second after the Istanbul hard-fork.

Scalability has been pressuring issues for Ethereum for the past couple of years especially after it became a hub for dApps. In order to improve that aspect, the developers have planned an elaborate series of upgrades and finally changed its mining protocol, which for sure would help in mining blocks more efficiently.

The code upgrade also led to the breaking of 680 smart contracts on Aragon

The 8th hard-fork on the Ethereum network for sure improved upon many shortcomings of the network right from lowering gas costs, to an increase in the number of transactions and also giving more power to the developers of the smart contract. However, the upgrade in code also led to the breaking of almost 680 smart contracts on a decentralized governing platform Aragon.

Jorge Izquierdo, CTO of Aragon One said that even though they support the continuous development on the Ethereum network, the developers should also make note of other developers on the network. The hard changes in the code meant that the smart contracts currently in work running on previous network code have to be broken.

“Developers don’t want to build on a moving target, and backward compatibility should be taken seriously as well,” Izquierdo said in an email to CoinDesk Friday.

“Ethereum is not a toy anymore, it’s a platform with a sizable investment and a big reach, and as such changes like this need to be professionally measured before being taken.”

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Author: Hank Klinger

Is Bitcoin Mining the Solution to this Major Environmental Concern?

Denver-based company Crusoe Energy System Inc. to install data centers at shale drilling sites to take advantage of the excess natural gas supplies, and turn it into electricity with which it powers the data centers for mining Bitcoin.

The company has now has opened eight such operations across the US and is further planning to open 30 more in the first half of next year.

These centers are touted as a way to solve the growing problem of gas flaring. It is a popular but controversial way of eliminating unwanted gas, a byproduct of numerous industrial processes including landfill gas production, wastewater treatment, petrochemical process, and oil and gas recovery, which has become a major environmental concern.

The greenhouse gases it generates contribute to the burden of global warming. Gas flaring is running rampant that rose to a record in Texas this year.

Now, Crusoe is harnessing some of the surplus gas to turn it into electricity. Through this electricity, the company is powering the data centers that generate revenue by mining the leading cryptocurrency Bitcoin.

The company is planning to install 70 units next year, with a capacity of 1 megawatt each.

“It’s a very creative way to solve an environmental and economic problem for the oil and gas industry,” said Alex Urdea, the chief investment officer of Upper90 Capital Management LLC, which will be providing Crusoe with $40 million of project financing.

The business model, he said is attracting interest from large gas and oil producers. Earlier this year, Bitcoin billionaire Winkelvoss twins’ Winklevoss Capital Management LLC was also involved in an investment round where Crusoe raised $5 million of seed capital.

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Author: AnTy

The IRS Wants to Know If You Interacted With Cryptocurrency in Any Way in 2019

  • A new form has been released by the IRS looking to know whether you’ve acquired, exchanged, or sold a digital currency.
  • Earlier this year, the IRS sent a letter to taxpayers who’ve made transactions in cryptocurrencies to pay their taxes and file amended returns.

The Internal Revenue Service (IRS) has released a new Schedule 1 for 2019 tax season, putting out the details on above the line deductions, health savings account contributions, and tax break for student loan interest.

More notably, IRS has also thrown in a question regarding digital currencies, “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

This is the agency’s latest attempt to gather more information on taxpayers’ digital currency holdings.

“The biggest thing is that the IRS is asking this for a reason, and my question is how much have you increased your audit risk by checking ‘Yes’ in response?” asked Jeffrey Levine, CPA and director of financial planning at BluePrint Wealth Alliance in Garden City, New York.

As a matter of fact, the IRS has signaled that it would take a closer look at virtual currencies.

Earlier this year, the agency sent letters to over 10,000 taxpayers who made virtual currency transactions but may have failed to report income and pay taxes on what they owed.

Tax Basics on Cryptocurrency

Have you sold any of your cryptocurrency? Then, you need to report the transactions. And if you made capital gains on that, you need to pay the appropriate tax.

In case, you received cryptocurrency from your employer, it is subject to federal income tax withholding, just like wages and should be reported on Form W-2.

Independent contractors paid in cryptocurrency must pay self-employment taxes a well.

If you are involved in mining crypto, the fair market value of the virtual currency on the day of receipt should be included in your gross income, as per IRS guidance.

Failure to report these transactions can result in you getting audited and held liable for interest and penalties. One could also face a fine of up to $250,000 and prison time, in extreme cases.

“For tax purposes, the virtual currency is treated as property, similar to a security,” said April Walker, lead manager for tax practice and ethics at the American Institute of CPAs.

So, make sure you keep track of your transactions related to virtual currency along with the cost basis.

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Author: AnTy

6 Tailwinds that will Push Bitcoin Price to Double in 2020

  • The most widely traded BTC price provides good support, sustaining below this unlikely
  • In 2020, initial resistance would be at $10,000, but breaking this level should a “matter of time”
  • Declining volatility, limited supply, growing adoption, depreciating yuan, Tether dominance, mimicking gold to take us higher

After losing 16% of its value in November, the price of Bitcoin traded above $7,000 in the first week of December, going as high as $7,800. Currently, we are trading at $7,550, up by 2.80%, as per Coincodex.

Source: Coin360

Mike McGlone senior commodity strategist at Bloomberg Intelligence says 2019 was the year of Bitcoin’s transition towards the gold. This maturation process, he says would continue as volatility declines.

Just like with gold, Bitcoin is retracing a bear market, said McGlone in Bloomberg’s Crypto Outlook for December 2019 report. He sees $6,500 — the most widely traded price — as good support for the world’s leading cryptocurrency and sustaining below this “unlikely”.

Actually, he says, there are higher chances of it going to a 2019 high than to revising the $3,360 low. This is because Bitcoin has already declined 50% from 2019’s peak, “which will limit further declines.”

In 2020, the initial resistance would be at $10,000 but breaching this should be just a “matter of time” especially if gold continues to advance as expected.

According to McGlone, there are several tailwinds that makes flagship cryptocurrency capable of doubling in 2020.

Volatility Set to Decline

Bitcoin price volatility will continue to decline next year, marking the completion of the transition from a bear to a bull market. Last time, it signaled the inception of the parabolic rally to the 2017 peak.

“The all-time low in 180-day volatility (41% in October 2015) should be revisited next year,” it reads.

Increasing institutional interest and vehicle for exposure such as futures and options are meanwhile contributing to the market’s maturity process.

Limited Supply

The new quasi-currency store-of-value, the report says will continue appreciating because of the key Bitcoin price tailwind, limited supply. Bitcoin has a limited supply of 21 million and the upcoming third reward halving will further cut down the inflation rate from 3.70% to 1.80%.

The only primary bearish factor McGlone says is the BTC price has appreciated so far so fast. And the normal market maturation suggests, it will take longer to hit the 2017 peak.

Growing Adoption

Among the cryptocurrencies, Bitcoin is winning the adoption race that combined with the asset becoming increasingly scarce favors price appreciation. The fact that most altcoins are too volatile further enhances the allure of Bitcoin.

Moreover, while there are only 17% more BTC to be created, the number of tradable crypto assets has more than doubled in 2019 alone.

Bitcoin will Closely Mimic Gold

Bloomberg analyst believes Bitcoin trading will closely mimic gold’s. The yellow metal has an upward bias and the 52-week beta of the crypto asset-to-gold is also highest since 2010, about 2x.

“Bitcoin’s relative richness was last comparable to its 2017 surge.”

There is greater potential for continued climbs for Bitcoin in the long term and it shares similar factors with advancing gold.

Tether Dominance

Apart from Bitcoin, Tether is another leader of the crypto market. And Tether boosts Bitcoin as crypto standard, with little to dislodge either of them as the crypto asset leaders.

The report says while the popular stablecoin has positive implications for BTC, it has negative ramifications for most crypto assets. It increases the value of Bitcoin as an equivalent of gold while exposing the “fallacy of so-called cryptos.

“The rapidly increasing market cap of Tether is widening the disparity between Bitcoin and the most speculative digital assets (alt-coins).”

Depreciating Yuan

While Tether is appreciating Bitcoin, it is also depreciating Yuan. From 16th position by the end of 2017, Tether has grown to the fourth-largest crypto asset this year and that has been on the back of “an almost 8% decline in the Chinese yuan and 80% retreat in the Bloomberg Galaxy Crypto Index.”

The analyst also sees Bitcoin to keep on gaining recognition as the “standout independent store-of-value digital asset” just like gold.

Escalating trade tension, showing Chinese economic growth, depreciating yuan and unrest in Hong Kong are actually the “incentives” for currency diversification which would work in favor of Bitcoin.

Now as we march towards the end of 2019, 2020 has a pretty bullish picture to look forward to.

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Author: AnTy

Bank of International Settlements General Manager Now Says CBDCs Could Open New Opportunity

Agustin Carstens, the General Manager of Bank of International Settlement (BIS) who earlier believed Central Bank issued Digital currencies (CBDCs) were no good, has changed his stance. In his recent speech titled “The future of money and the payment system: what role for central banks?” Carstens seemed to emphasize that CBDC’s could open the gates for new opportunities.

In his speech publisher on 5th December, Carstens focused on the approach of central banks towards emerging technologies of blockchain and fintech.

CBDs could Pave way for the Future Financial System

The General Manager’s change of views is a great sign for the future of the payment systems as it shows that these banks have started to consider the inclusion of DLT based currencies. Carstens noted several advantages of the coming of CBDC’s as it provides a greater level of privacy, is considerably faster, cheaper and available for 24*7 round the clock.

2019 has seen a great rise in the level of crypto awareness and adoption, where several nations are pondering their decision on regulating crypto in the right way. Many analysts have also claimed that stable coins and CBDC’s are going to be the main pathway for crypto adoption. While China is all set to launch its national CBDC many other nations are pondering on the same decision as France and Ghana.

Carstens was not a Big Fan of CBDCs

Only this March, Carstens was not a very big fan of digital currencies issued by central banks and also advised against issuing such currencies. He argued that the digital currency would bring down commercial banking systems as people would transfer all their funds to these central banks for better services. He said,

“Central banks do not put a brake on innovations just for the sake of it. But neither should they speed ahead disregarding all traffic conditions.”

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Author: James W