Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS, Stellar, Litecoin, Cardano, Monero, ETC: Price Analysis, August 17

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.

The cryptocurrency market capitalization has risen above the $215 billion mark once again. A resilient Bitcoin was the main reason for the pullback. If the leader holds ground, the investors gain confidence and start entering the markets.

Crypto hedge fund Pantera Capital is looking to raise $175 million for its third venture fund. They had previously raised $13 million in 2013 for the first fund and $25 million for the second. This shows that the demand for cryptocurrencies and related investments is still alive.

While the decline was purportedly caused by the rejection of the ETF proposal by the SEC, some experts still hope to see a Bitcoin ETF in the near future. Others, however, are not keen on Wall Street money entering the crypto world. They believe that Wall-Street managed money will cause more problems.

Cryptocurrencies are currently pulling back from their lows. So, should the traders start buying at these levels or wait? Let’s find out.

BTC/USD

Bitcoin continues to trade within the range of $5,900.06—$6,617.5. Currently, the bulls are making another attempt to break out of this range. Above the range, the virtual currency can again face resistance at the 20-day EMA, at the downtrend line of the descending triangle and at the 50-day SMA.

BTC/USD

For the past seven days, the bears have repeatedly pushed prices down from the $6,617.5 mark. We believe that if the bulls finally scale it, the momentum will carry it above the 20-day EMA and the downtrend line of the descending triangle.

Therefore, we retain the buy recommendation provided in the previous analysis.

Our assumption of a bull move will be invalidated if the BTC/USD pair breaks down of $5,900. Another possibility is that the price remains inside the range for a few more days, forming a bottom.

As prices are in a range, false breakouts are possible. Hence, we have suggested buying only if we find the price holding for four hours. If prices retreat following a breakout and show weakness, the long positions should not be taken.

As always, traders should trail the stops higher if the position moves in their favor.  

ETH/USD

Ethereum is struggling to stay above the $300 mark. For the past two days, it has retreated from this level.

ETH/USD

Both moving averages are sloping down and the RSI is still in the oversold zone. This shows that the bears still have an upper hand. The pullback will face selling pressure at the 20-day EMA, which is close to the previous support of $358 that will now act as a resistance.

If the ETH/USD pair sustains above $358 for three days, it will signal a probable change in trend. We shall wait for a new buy setup to form before suggesting any long positions on it.

XRP/USD

Ripple was deeply oversold. It is currently in a pullback that can carry it to the downtrend line 2 where we expect a strong resistance.

XRP/USD

The XRP/USD pair is one the worst performers among the top cryptocurrencies. Hence, we don’t advise buying the first pullback from the lows. The trend remains bearish with both moving averages still sloping down.

It has a slew of overhead resistances that will act as a hurdle, attracting selling. Hence, it is suitable only for the very short-term traders who can enter and exit positions quickly.

The swing traders or long-term investors should wait for the pair to complete a bottoming pattern and then buy it. Until then, it is best to stay with the outperformers.

BCH/USD

After failing to climb above the $537.8221 level for the past three days, Bitcoin Cash is again attempting to scale the overhead resistance and the RSI is trying to exit the oversold zone.

BCH/USD

On the upside, the bulls will face strong resistance at the 20-day EMA. After this is crossed, the 50-day SMA and the downtrend line will act as the next roadblock.

On the downside, if the BCH/USD pair plunges below $473.9060, it can slide to $400. We will wait for the price to break out and sustain above both moving averages before turning positive.

Currently, we don’t find any buy setup, hence, we are not proposing any trade on it.

EOS/USD

EOS has finally made a move today, after struggling to move up for the past two days. However, both moving averages are sloping down and the RSI is still in the negative territory, which shows that the sellers have an upper hand.

EOS/USD

Any recovery will face resistance at the 20-day EMA and above that at the 50-day SMA. The bulls have not broken out of the 50-day SMA since June 9. Hence, a break out of it will indicate strength.

In April of this year, the EOS/USD pair picked up momentum only after breaking out of the 50-day SMA. Hence, we might suggest long positions after the price sustains above the 50-day SMA. If a new setup develops before that, we shall consider it.

XLM/USD

Stellar has extended its stay inside the range of $0.184—$0.25. The pullback on August 13 and August 15, both faced selling at the 20-day EMA.

XLM/USD

Previously, in mid-April and mid-July of this year, the XLM/USD pair picked up momentum after it closed (UTC time frame) above the 20-day EMA.

Currently, the 50-day SMA is flat and the 20-day EMA is sloping down. If the bulls break out of $0.25, the probability of a rally to the downtrend line at $0.32 increases. Therefore, we retain our buy recommendation provided in the previous analysis.

LTC/USD

The attempt to pullback on August 18 met with selling at higher levels but Litecoin has maintained above the $54 level for the past two days.

LTC/USD

The 20-day EMA will be the first hurdle, above which, the pullback can extend to $80. The 50-day SMA and the downtrend line are both close to $80, hence, we anticipate the bears to strongly defend this level.

The RSI is trying to exit the oversold territory, which is a positive sign. All these indications point to a corrective rally, but we don’t find any reliable buy setups, hence, we are not recommending a trade on the LTC/USD pair.

ADA/USD

Cardano is struggling to bounce off the lows. This shows that the bulls are in no hurry to buy even at these low levels.

ADA/USD

On the upside, the zone between $0.111843 and $0.13 will act as a stiff resistance. The 20-day EMA is sloping down but the 50-day SMA is flattening out. This shows that the ADA/USD pair might enter into a consolidation for the next few days.

If prices sustain above $0.111843, it shows that the selling pressure has reduced. We shall wait for a new buy setup to form before recommending a trade on it.

XMR/USD

Monero has pulled back for the past three days and is close to the 20-day EMA where it might face resistance.

XMR/USD

If the bulls scale above the 20-day EMA, the recovery can continue till the $120 mark. The long-term downtrend line is also close to $120; hence, we anticipate selling at this level.

The next decline to the $76.074 mark will confirm whether a bottom has been made or is the current pullback only a bear market rally.

Currently, we don’t have any bullish pattern on the XMR/USD pair, hence, we suggest traders wait for a few days.

ETC/USD

Ethereum Classic has found a place in our analysis by taking the tenth spot. While its price has not risen, it has declined less, compared to some other cryptocurrencies.

ETC/USD

The ETC/USD pair has been holding above the $13 level since April of this year. While the bears broke below this support on August 13, prices have quickly bounced back, after taking support close to the $9.5 mark.

This shows that the buyers are scooping up the digital currency on sharp dips. The 20-day EMA is sloping down, but the 50-day SMA has been flat since July. This shows that the virtual currency might remain range bound between $13 and the downtrend line.

We don’t find a strong buy setup, hence, we are not recommending a trade on it.

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

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in Malta

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in Malta

The Daily

Crypto exchange Binance is launching a fiat-to-crypto trading platform in Liechtenstein and you can find the details about the joint venture with LCX in The Daily. We’ve also got reports about ZB.com opening a new office in Malta, Coinsilium investing in crypto trading platform Bundle, and the rebranding of the Toshi crypto wallet as Coinbase Wallet.  

Also read: McAfee’s “Unhackable” Wallet Is Doomed, Coinbase Wants to Be Your ID

Binance LCX Launches Fiat-to-Crypto Exchange in Liechtenstein

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaBinance, the largest cryptocurrency exchange by volume, has announced it’s launching a fiat-to-crypto trading platform in Liechtenstein through a joint venture with LCX.

Binance LCX plans to build up a team of up to 15 professionals for its Liechtenstein office that will manage customer support, legal requirements, due diligence, KYC, AML and government communication, while the team at Binance will provide and maintain the platform.

According to a press release, the new exchange will offer trading for Swiss francs (CHF) and Euros (EUR) against major cryptocurrencies and add more trading pairs in the future. Commenting on the launch of the platform, Binance CEO and founder Changpeng Zhao said:

I believe Binance LCX will create a sustainable and reliable fiat-crypto gateway for professional and regular investors alike. I hope Binance LCX will drive new standards for usability and compliance for the blockchain industry, and we are very excited to bring the relevant experience and best practices to grow our team in Liechtenstein.

Monty C. M. Metzger, CEO of LCX, added: “Professional investors need a reliable fiat channel to invest into crypto assets. We are excited to launch the joint venture with Binance to establish new standards for the blockchain industry.”

Adrian Hasler, Prime Minister of Liechtenstein, welcomed the joint venture and said: “We are confident that Liechtenstein’s existing and future legal framework and practice provide a robust foundation for the Binance LCX and other blockchain companies to provide exceptional services here in Liechtenstein.” The tiny European nation is currently working on its Blockchain Act in order to implement a comprehensive legal framework for the crypto sector.

Crypto Exchange ZB.com to Open Office in Malta

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaZB.com, the fifth largest crypto exchange by daily trading volume, is planning to set up operations in Malta, also hailed the Blockchain Island for its efforts to create favorable conditions for companies in the industry. During the Malta Blockchain Summit, the company announced it will open a new office in St Julian’s. The exchange wants to start with crypto-to-crypto trading and intends to eventually offer fiat-to-crypto options as well. Jimmy Zhao, co-founder of ZB.com, said:

Malta is perhaps the world’s most progressive and forward-thinking nation in DLT, crypto and Fintech, and we are very excited to be part of the Blockchain Island. We are confident we will be able to announce our live operations soon.

Maltese authorities have been trying hard to turn the island nation into a crypto-friendly jurisdiction. The parliament in Valletta recently adopted three bills designed to create a clear regulatory framework that will enable the establishment of crypto businesses on the island.

Chinese-run ZB.com is moving in the footsteps of other players in the field – Malta has already attracted crypto exchanges like Binance, which is exploring opportunities to launch a decentralized bank there, Okex, another Chinese exchange which announced in April it is setting foot on the island, and the Polish Bitbay which revealed its plans to move to Malta in May.

Coinsilium Invests in Crypto Trading Platform

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaBlockchain venture builder Coinsilium Group Ltd has announced an investment of $125,000 USD in Bundle Network Ltd, a company developing an online platform to facilitate cryptocurrency trading. As part of the deal, the investor will also receive an entitlement to an undisclosed number of Bundle Network tokens and its chief executive will join Bundle’s board of directors, Proactive Investors reported. Earlier this year, news came out that Coinsilium had been engaged by Bundle to provide advisory services for a token generating event. The company notes that the investment in Bundle is part of a strategy to support “foundational services in the blockchain ecosystem such as the buying and selling of cryptocurrency and tokens.”

Coinbase Was Signing Up 50,000 Users a Day Last Year

The Daily: Binance Launches in Liechtenstein, ZB.com Opens Office in MaltaLeading U.S., California-based crypto exchange Coinbase was signing up 50,000 new customers daily in 2017, its CEO Brian Armstrong announced during a tech summit in San Francisco, organized by Bloomberg. The chief executive also said the platform helped users trade $150 billion worth of cryptocurrency over the past year but did not reveal this year’s rate of new registrations. According to Armstrong, only about 10 percent of cryptos are currently used in real life, including online purchases. “I think it will be quite some time before you cross the street to Starbucks in the U.S. and pay with crypto,” he said. However, he is confident “it’s getting harder and harder to be a crypto skeptic.”

According to another announcement related to the San Francisco headquartered exchange, the crypto mobile wallet Toshi has recently been rebranded as Coinbase Wallet. The exchange posted on Twitter that “This is not just a new name, but part of a larger effort to invest in products that will define the future of the decentralized web and make that future accessible to anyone.” Users of Coinbase wallet can currently manage ethereum (ETH) and ERC20 tokens, with plans to add support for bitcoin core (BTC), bitcoin cash (BCH), and litecoin (LTC) already announced.

What are your thoughts on today’s news tidbits? Tell us in the comments section below.


Images courtesy of Shutterstock, Malta Blockchain Summit, Coinsilium.


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What is Bitcoin and Altcoin

Bitcoin is a form of cryptocurrency initiated in 2009 by Satoshi Nakamoto. Cryptocurrency, on the other hand, is a virtual currency. In other words, they are digital currencies that carry a monetary value. They use cryptography to safeguard transactions.  In summary, Bitcoin is a virtual currency designed upon creation.

Bitcoin

Bitcoin

This coin supports peer to peer transactions without a centralized authority. Bitcoin can be exchanged for good and services if traders are willing to accept them. Still, it can be exchanged for other electronic currencies.

How Bitcoin Functions as a Currency

Bitcoin is a unique token because it’s designed not depreciate in value. Regular currencies lose value when there is a lot of cash in circulation. In conclusion, inflation and deflation rules do not apply to Bitcoin. More than 20 million of bitcoin can go in a distribution. As of the publication of this post, 16 Million bitcoin had been released. Miners were, however, working to mine 6 million bitcoins to reach the 21 Million targets this year.

Creation of Bitcoin

Whenever Bitcoin is generated, a new block gets discovered. Each block contains a certain amount of bitcoin. This amount reduces after every four years. The discovery of a new block comes when a user solves hash encryption by the SHA256 algorithm. In other words, this is a complicated puzzle which is a string of characters that need to be decoded using high-end computing power. In the end, a user gets rewarded with bitcoin every time they add a block to the blockchain.

In 2009, if a user would add a block to the blockchain, he/she would get 50 bitcoins. As it stands, the number was revised, and a user would only get 12.5 bitcoins. Since more bitcoins are getting discovered, the mystery of solving the puzzle increases. Thus, mining bitcoin becomes difficult.

Bitcoin difficulty was rated at 1.0 when it first came out. The same strain was measured at 1.18 at the end of 2009. In 2017, eight years down the line, the difficulty was at 4.24 billion. This is an indication that bitcoin mining is becoming difficult than it was before.

In the early days, you only needed a desktop to mine a coin. Not anymore after more miners entered the race. Nowadays, you need a device with complex configurations, and still, the procedure takes long and consumes more power.

What is Altcoins?

Altcoin

Altcoin

Altcoins are digital currency similar to Bitcoins. Altcoins are a large group of cryptocurrency and the generic term used for the non-Bitcoin cryptocurrency. In other words, the alternative coin created after bitcoin are referred to as altcoins.

Many altcoins operate on the framework provided by Bitcoin. This means they are slightly different from Bitcoin, but the characters are similar. Features such as peer to peer and the ability to get mined are the primary elements to most of these alternative coins.

As it stands, there are more than a thousand cryptocurrencies in the market. Before investing in any of these currencies, users should investigate what these currencies stand for. Besides, they should familiarize themselves with the platform on which each operates. At the moment, the total market cap of all cryptocurrencies including Bitcoin stands at $133 Billion.

The Need For Altcoins

We’ve already seen that altcoins vary slightly to Bitcoins. The difference is that of distribution methods, transaction speed, and algorithm of hashing and more.  Some altcoins have a purpose despite some of them being there because the business decided to encash them.

Some of these alternate currencies solve some problems. For instance, there are coins which are used for purchasing domains and hosting. Others are for buying adult content.

Platforms like Ethereum are flexible and can change at any time depending on the wave of the internet. Some seem to have no value, and they seem to get wiped out of the market.

Altcoins should be created purposely to solve particular problems not to amass money. Irrespective of that, altcoins like Ripple, Neo, Ethereum among others have been doing exceptionally well.

Why Invest in Altcoins?

Altcoins have been in the market for several years now and the number as kept growing. Below are some reasons why people invest in altcoins.

The growth of Bitcoin from $0 to $4700 has led to many to believe that all cryptocurrencies will perform like Bitcoin.

The majority believe an introduction of a new coin will solve an existing problem. They also think many buyers will be willing to invest in the currency so they should too.

The cost of mining a new currency is less compared to the existing ones. The latest litecoins can be extracted fast, and one can purchase them at a lower rate. Still, one can hold them for few years and dispose of them at a profit of 400 times the original price.

Note that not all altcoins reach the intended goal. Some of them fizzle out too soon.

The Harsh Reality of Altcoins

Altcoins seem to be the preferred solution for most entrepreneurs to solve certain misfortunes. Be it as it may, creating an altcoin is easy but to manage them is a torturing task. In most cases, most cons have disappointed investors as they don’t live up to the hype. The majority of those who invest in these coins harvest losses.

In addition, most of these coins are created with evil intentions. Though they might look to have a clear vision, the aim would be to vanish once they gather enough ICO cash.

Pros and Cons of Bitcoin

Pros

Quick Transfer

It’s easier to send Bitcoin between two parties in different countries. It’s fast and simple as opposed to the bank option.

Quick Payments, Less Fee

Money transfer is fast as there is no third-party involved. Besides, the fee one pays in bitcoin transaction is less compared to bank charges.

Protection Against Payment Scam

You cannot reverse bitcoin payments. Still, chances of them to be counterfeit are zero.

Cons

Illegal Activities

The cash that Bitcoin generates is used to fund illicit activities. Hacking activities have also been on the rise in exchange for bitcoin.

Government Regulation

Bitcoin has not been accepted in some countries and in some, they have been banned. The majority of investors have purchased bitcoin using the black money. If the global government can decide to regulate the trade of bitcoin, it might become unstable and collapse.

Risk of Loss

You should invest the amount you are willing to lose. If you lose your stake, it won’t hurt. There are times when web exchanges go out of business. This time, forget all your investment as it is gone. Also, market fluctuations affect the crypto market too. With an investment of $6,000, today might be $3000 an hour later.

What to Consider before investing in Altcoins

Risk

Cryptocurrency market is full of uncertainties as much as it’s full of gains. Bitcoin, Ripple, Ether, and others have shown steady growth, but you can’t equate the trend to new altcoins. It’s a matter of time before altcoins can have a sustained track record. Still, not all will shimmer. Be vigilant when investing in altcoins.

Purpose

Ensure the coin you want to invest has a purpose for existence. If not, chances are it is going to stagnate. It’s that simple. Invest in altcoin that solves a particular problem.

The Team Behind the Coin

The team behind each coin should have a solid background in the industry. Don’t fall prey to a currency established by a group of dreamy-eyed entrepreneurs. Avoid altcoins that are entirely new.

Practical Case

The altcoin you want to invest should provide a solution to the problem it intends to solve. The answer should be reasonable in that, for example, if the problem is to replace the internet with a new blockchain based infrastructure, explain how you will implement it.

Final Thoughts

Cryptocurrency ecosystem is vast and before you invest your money, do a thorough analysis. In this article, we explained some essential facts of Bitcoin and Altcoin such as their functionality principles including their pros and cons. We hope you find this article to be useful and implement the above points in daily life.

Image Courtesy of Pixabay.

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