Bitcoin Dominance Wanes In Crypto Recovery, But Researcher Says This Isn’t The Case

Recent reports seem to indicate that, believe it or not, Bitcoin (BTC)’s short-term prospects in this market are limited, as crypto analysts await the holy grail of trading sessions — the fabled “altseason.” With this phase of trading, analysts expect for Bitcoin’s hegemony over the broader industry to slip, as stakeholders flee to alternative digital assets in search of hefty profits. But a researcher claims that traders are getting this all wrong.

Bitcoin Losing Steam To Other Crypto Assets?

In recent weeks, cryptocurrencies, save for BTC, have posted stellar gains in and of themselves. Litecoin has rallied by 160% since its bottom in December, Cardano is up by 24% in the past weeks, and other assets are posting movements that resemble those seen in 2017’s rally.

This price action, which has come seemingly straight out of left field, has depressed the Bitcoin market dominance reading, which has struggled ever since the parabolic rally seen over yesteryear. Sure, the reading has recovered from a 32% bottom to 50% where it stands now, but it’s a far cry from the 58% seen in late-2018. And some expect for this to continue, as they see much more value in blockchains not only known for being a store of value, like Bitcoin.

Related Reading: Researcher: Bitcoin Will Easily Surpass Market Cap of Gold at $8 Trillion

One trader going by the moniker “Galaxy” remarked that he wouldn’t be surprised Bitcoin’s share of the cryptocurrency space falls to under 30%, citing the weak dominance uptrend to claim that the impending altseason will relatively pummel BTC.

No, Maybe Not

JP Thor, a leading industry researcher & Bitcoin diehard, argued that no, CoinMarketCap and similar data aggregators are getting their readings all wrong (as normal), along with those commentators quipping that BTC is rapidly losing traction.

In an extensive Medium post, titled “Bitcoin’s Market Dominance,” Thor remarked that the classical method of using market capitalization to weigh an asset’s dominance is flawed.

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Thor remarks that if you take volume (liquidity) into account, which he did through aggregating 12 months of trading activity, Bitcoin is far from dead in the water. The researcher writes that Bitcoin’s dominance in the form of liquidity is actually well above the 50% gauged by market capitalization. In fact, Bitcoin has a consistent dominance reading of over 80%, which has only trended higher in this downturn.

Ethereum, on the other hand, has a measly ~7%, while altcoins take up the rest of the proverbial pie.  And with that, it was concluded:

“In fact, just taking into account the Top 5 coins, Bitcoin (the 20%) captures over 85% of the market… CoinMarketCap’s ‘Market Dominance’ is flawed since it does not factor in liquidity and the reported 55% is significantly understated.”

Sentiment-wise, industry leaders seem to think that BTC will keep on this market for the rest of its lifespan. Phil Chen of HTC’s Exodus (crypto) division told NewsBTC that he thinks that Bitcoin is fundamentally the core of this industry, so it would thus be irrational to ignore it or cast it aside.

Featured Image from Shutterstock

The post Bitcoin Dominance Wanes In Crypto Recovery, But Researcher Says This Isn’t The Case appeared first on NewsBTC.

Bitcoin Dominance Wanes In Crypto Recovery, But Researcher Says This Isn’t The Case

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

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Analyst: Bitcoin (BTC) Reaching 5,500 is a Strong Likelihood, But Possibility of Drop to 3,000 Remains

Bitcoin has been experiencing a quiet weekend trading session and is currently firmly in the middle of its long-established trading range between $4,000 and $4,100. It is unclear how long this range will persist, but historically BTC has experienced fairly significant price swings after long bouts of sideways trading.

Now, analysts seem to concur that Bitcoin is posed to make a large upwards swing towards $5,500 in the near future, but it is important to note that the possibility of further downside still remains.

Bitcoin (BTC) Caught in Persisting Trading Range

At the time of writing, Bitcoin is trading down marginally at its current price of $4,020. Over the past several days, BTC’s volatility has been declining as its trading range grows tighter.

Although the upper bound of BTC’s current trading range will most certainly act as a level of resistance in the near-future, the key level that analysts and traders alike are closely watching to see how Bitcoin responds to is $4,200, which is where the crypto faced strong resistance and spiraled downwards from late last month.

Crypto Krillin, a cryptocurrency analyst on Twitter, recent discussed where he sees Bitcoin heading next, importantly noting that he believes the crypto will make an upwards swing towards $5,500 next, but further added that a downside target of $3,000 is still a possibility.

“The moment of truth for Bitcoin is very near. We fly straight through the cloud to 5500, or we visit 3000. I’m leaning bullish,” he explained in a recent tweet.

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$5,500 Becoming an Important Level For Bitcoin

Crypto Krillin is not alone in his belief that Bitcoin’s upside target currently exists around $5,500.

Yesterday, Galaxy, another popular cryptocurrency analyst on Twitter, explained to his nearly 50k followers that BTC is currently nearing the end of an ascending triangle formation, which means that the crypto is, statistically speaking, likely to make a large upwards price swing towards $5,500 in the next month or two.

“According to Bulkowski’s study, more than 60% of ascending triangles with declining volume end up breaking upwards… with an average price rise of 35%. That gives us a target of $5500 BTC once the breakout is confirmed,” he noted.

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As the new week starts and trading volume begins to ramp up, the crypto markets will gain greater insight into just how strong Bitcoin’s current trading range is, and as to where it will head next.

Featured image from Shutterstock.

The post Analyst: Bitcoin (BTC) Reaching 5,500 is a Strong Likelihood, But Possibility of Drop to 3,000 Remains appeared first on NewsBTC.

Analyst: Bitcoin (BTC) Reaching 5,500 is a Strong Likelihood, But Possibility of Drop to 3,000 Remains

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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Trezor: Hardware Wallet
Binance: Exchange for Traders
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Is Ripple (XRP) Crumbling? ETH Gap Widens to $1.5 Billion

  • Ripple prices down three percent from last week’s close
  • Price surges depend on xRapid adoption
  • Participation levels low and almost half that of Feb 24

At third with a market cap of $12,861 at the time of press, Ripple (XRP)—like the rest is under pressure. However, this has been compounded by regulatory uncertainty which is likely to be clarified next year. If the SEC has reason to classify XRP as a utility with no central control, prices will surge towards Sep 2018 highs at 80 cents.

Ripple Price Analysis

Fundamentals

Ripple Inc promotes three of their central solutions to financial institutions and payment processors. Of the three, xCurrent is widely used. However, if XRP as an asset is to thrive, then banks must use the xRapid network. While offering the same end to end encryption, the solution uses XRP as a means of exchange.

To facilitate transactions, Ripple Inc is working with different exchanges across corridors of their interest. There is Coins.ph and Bittrex between the US and the Philippines. At the same time, there is Bittrex and Bitso between the US and Mexico corridor of which Mercury FX is dominating.

Even so, the lack of confirmation from regulators is forcing would be clients to postpone their plans allowing Stellar and IBM to narrow the gap. All the same, it is a good thing that IBM–with their history with banks, is demonstrating that despite blockchain being new; it can be efficient and cost saving.

Candlestick Arrangement

Ripple

A month after dropping from 34 cents, Ripple (XRP) sellers are clearly in charge. It is down three percent from last week’s close and pretty stable from yesterday. Regardless, we are net bullish expecting higher highs in the next few days.

However, all that is dependent on the reaction at 30 cents and how fast losses of Mar 21 are reversed—or confirmed. If the latter is the case and prices crumble below 30 cents, then bears of Feb 24 would cause a meltdown towards 25 cents canceling our stance. On the other hand, reversal effectively confirms gains of Jan 30.

Technical Indicators

Relative to Feb 24 bear bar—61 million versus 30 million averages, it’s evident that participation is shrinking. Today’s averages stand at 14 million which is less than half that of Feb 24.

All the same and as per our previous emphasis, buyers would only be in charge if there is a spike of volumes above 17 million of Mar 21. That will jolt bulls back in track solidifying our stand.

Chart courtesy of Trading View–BitFinex

The post Is Ripple (XRP) Crumbling? ETH Gap Widens to $1.5 Billion appeared first on NewsBTC.

Is Ripple (XRP) Crumbling? ETH Gap Widens to $1.5 Billion

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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Binance: Exchange for Traders
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Litecoin Boom Past $60 Could Set Bitcoin (BTC) Up For A Surge

Sure, Litecoin (LTC) has been receiving some flak as of late, but there’s no denying the surge the cryptocurrency has undergone in recent months. One analyst argues that the rally in that specific asset could be setting Bitcoin (BTC) up for an eventual recovery, citing eerie similarities in the two assets’ price action.

Related Reading: Crypto Bull Returns, Predicts Targets For Bitcoin, Ethereum, Ripple, Litecoin

Litecoin Rallies Into Halving

In mid-December, LTC was trading at a mere $23. But since that December 14th, which many saw as the bottom for this budding market, the asset, often deemed a silver to Bitcoin’s gold, has decidedly surged. Litecoin now sits at a hefty $60 — up 160% off its lows from a U.S. dollar standpoint, and up 110% BTC-wise.

Many have chalked this jaw-dropping price action to Litecoin’s impending block reward reduction event, which will reduce the emission rate of LTC by half and improve the cryptocurrency’s supply-demand economics. In fact, per previous reports from NewsBTC, popular trader Moon Overlord explained that the so-called “halving” will be the catalyst pushing Litecoin closer and closer to its $350 peak over time. He wrote on Twitter:

“The Litecoin halving is quickly approaching… the crypto bottomed approximately 200 days before it’s halving in 2015… We are almost exactly 200 days away from the next LTC halving… LTC peaked 2+ years after its halving, If it follows a similar path this time the peak will be in 2021.”

Stage Set For Bitcoin Run?

While Litecoin has done this all by its lonesome, trader Halo Crypto recently argued that LTC’s move past $60 could set a strong precedent for a Bitcoin run in the near future. He drew attention to the recent performance of the LTC/BTC pair, showing that there are clear similarities in how that chart precedes action in the Bitcoin-to-USD market.

With LTC/BTC recently breaking out drastically to the upside after trending higher for weeks, Halo confirmed that there’s a likelihood that Bitcoin could be in for a bullish reversal too, drawing a cartoon rocket ship to underline his point.

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CoinDesk’s technical analysis team once echoed this thought process that Litecoin leads Bitcoin, like a shepherd and his sheep.

The outlet’s analysis desk once explained that in a previous market cycle, which saw Bitcoin plateau at $1,200, LTC’s trend “became bullish well before that of” the market leader. In fact, following BTC’s drawdown, Litecoin surged out of nowhere, posting gains in the dozens of percentage points. Then, believe it or not, BTC followed, accentuating that the two assets likely are correlated.

Featured Image from Shutterstock

The post Litecoin Boom Past $60 Could Set Bitcoin (BTC) Up For A Surge appeared first on NewsBTC.

Litecoin Boom Past $60 Could Set Bitcoin (BTC) Up For A Surge

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
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Will Bitcoin Shine? After Ponzi Jab, BIS Boss Says CBDC Destabilizing

  • Bitcoin price under pressure
  • Carstens of BIS against central bank digital currencies (CBDCs)
  • Volumes low and drop below or above Mar 21 high-lows must exceed 13k

According to BIS’s Carstens, central banks shifting to CBDCs will destabilize the economy. However, that is not stopping some central banks from experimenting with them. Meanwhile, Bitcoin (BTC) is under pressure and could drop to $3,500—800 zone in days ahead.

Bitcoin Price Analysis

Fundamentals

True, we cannot ignore the effects of digitization. It is broad and profound. We expect the rate of digitization to pick up as millenials surpass baby boomers. Impressive as it is, regulators and central banks included are not hiding their heads in the sand.

The rise of global digital assets like crypto is a headache to many as they provide an alternative to government-issued fiat. Up against internal and external factors, these paper issued currencies have an infinite supply. Besides, the value depends on the state of the economy. A weak government means watered-down paper money. We need not look far. Venezuela, despite its richness and vastness in oil reserves, is struggling to stay afloat after years of mismanagement and sheer corruption. As its economy tank, the Bolivar is what it is—paper.

Surprisingly, even with all these evidence and trust links, senior BIS executive and a Bitcoin critic is against central bank digital currencies. In his view, CBDCs are faster and therefore possible facilitators a bank run destabilizing the system in the process. Apart from fears of a bank run, Carstens believes CBDC can affect interest rates thereby increasing the balance sheet of the adopting central bank.

Candlestick Arrangement

Bitcoin

All the same, Bitcoin (BTC) is wavy and undoubtedly under pressure. Days after collapsing on Mar 21, bulls are struggling to recover. It is likely that the week will close lower. However, a significant take away in days ahead is not the resilience of bulls but the source of this liquidation.

Regarding Feb 24 bar, a simple Fibonacci retracement tool reveals that Mar 21 weakness is at a key reaction level—the 6.18 percent mark. Even though liquidation is yet to be affirmed, any drop below Mar 21 lows reveals weakness increasing odds of a collapse to $3,500-800 zone.

Technical Indicators

Regardless of our BTC weakness, Mar 16—13k versus 7k anchors of analysis. Although bears of Mar 21 and the resulting double bar bear reversal pattern stands out, sellers will only be in charge once several trade conditions are live. Any drop below Mar 16 or 21 lows must have high volumes exceeding 13k of Mar 16 and 11k of Mar 21.

Chart courtesy of Trading View–BitFinex

The post Will Bitcoin Shine? After Ponzi Jab, BIS Boss Says CBDC Destabilizing appeared first on NewsBTC.

Will Bitcoin Shine? After Ponzi Jab, BIS Boss Says CBDC Destabilizing

A Blockchain is a growing list of records, called blocks, which are linked using cryptography. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries. Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank.

Blockchain 101 · Crytpo Currency Market
—————————————————
Trezor: Hardware Wallet
Binance: Exchange for Traders
Ledger Nano S: Hardware Wallet
Coinbase: Exchange for Investors
CoinSwitch: Wallet-to-Wallet Exchange