These 3 Simple Factors Could Erase Bitcoin’s Current Signs of Strength

Ursprünglich erschienen auf: https://thebitcoinnews.com/these-3-simple-factors-could-erase-bitcoins-current-signs-of-strength/

Bitcoin is beginning to flash some signs of strength as it starts breaking out of the recently established trading range between $9,00 and $9,300
The crypto could soon make a move to test the resistance that sits towards the top of its long-held trading range
This resistance extends from $9,700 to $10,000
BTC’s tempered strength comes as altcoins begin rallying, with some even climbing as much as 100% yesterday
Analysts are noting that there are a few factors that suggest Bitcoin could be in for a notable decline in the coming days

Bitcoin is currently looking strong as it attempts to break above $9,300. This level has held as resistance throughout the past week, and buyers were previously unable to shatter it despite multiple tries.
As buyers now navigate the crypto past this level, it may continue rising until it reaches its high time frame resistance in the upper-$9,000 region.
This level has catalyzed countless rejections over the past few weeks and months.
For it to be surmounted now, buyers will have to garner massive support. The ongoing altcoin market rally could help create a tailwind that leads the crypto higher.
That being said, there do appear to be three factors that could stop the crypto dead in its tracks and lead it to decline further in the days ahead.
Bitcoin Approaches Crucial Trendline Following Overnight Surge 
At the time of writing, Bitcoin is trading up just under 1% at its current price of $9,350.
Although in percentage terms it hasn’t risen by much, its ability to break above the resistance that has been formed at $9,300 is significant.
Where Bitcoin trends next will likely depend on how it reacts to a crucial trendline that is rapidly approaching.
One analyst spoke about this level in a recent tweet, explaining that the trendline currently exists around $9,400, meaning that BTC is on the cusp of a major breakout.
“BTC Made this chart on July 6th, let’s see if the restest of support at $9200 is met by Bitcoin finally breaking above this trendline in the coming day. Make or break,” he explained.

Image Courtesy of Josh Rager. Chart via TradingView.
Three Factors That Could Slow BTC’s Ascent
Three factors that could stop Bitcoin from seeing any type of intense upwards movement in the near-term include its recent retest of support, slight signs of rejection at the aforementioned trendline, and its MACD indicator testing a bear cross.
One analyst spoke about these factors, saying:
“Retesting + getting rejected from resistance + MACD testing bear cross. Don’t let the euphoria blind you, manage your risk by raising your stop losses.”

Image Courtesy of Teddy. Chart via TradingView.
Although these trends are essential to be aware of, Bitcoin could quickly invalidate them should it continue pushing higher throughout the day.
Featured image from Shutterstock.
Charts from TradingView.

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Why the FB Libra Network Might Never Take Off

Ursprünglich erschienen auf: https://thebitcoinnews.com/why-the-fb-libra-network-might-never-take-off/

Facebook has demonstrated tremendous resolve in trying to launch its ambitious Libra crypto payment network. The plan, however, faces a few major hurdles.

The first is that Facebook has a long way to go before it can win back public confidence. It lost a great deal of it during the infamous Cambridge Analytica scandal. It exposed its data collection and mining irregularities.

As a result, Facebook has undergone intense regulatory scrutiny by legislatures in both the United States and Europe over the past few years. The platform is effectively banned in China because of its contentious data privacy practices.

Its troubles also seem to be piling up. Most recently, over 180 major companies, including Unilever, Patagonia, Verizon, and Honda, boycotted advertising on the platform due to its failure to curb hate speech and content used to promote violence. The move caused its shares to fall by 8 percent in 24 hours.

Major Jurisdictions Don’t Want a Facebook Payment Network  

India was the first nation to stop the launch of an elaborate FB payment network within its borders. Brazil is the latest country to resist such a move.

Facebook launched its WhatsApp Pay network in Brazil on June 15. The platform was forced to shut down just a week later after Brazilian authorities sounded the alarm on the new venture. Government officials said that significant regulatory scrutiny would have to be undertaken before the company can be allowed to launch the product.

Governments Don’t Want to Cede Control of their National Currencies

The botched Brazil launch highlighted hurdles that the Libra network is bound to encounter when launching in other jurisdictions. The United States, the biggest economy in the world, has already said that there are other concerns besides user privacy, which require greater examination.

Money laundry loopholes are among the main issues that Facebook will have to address before launching Libra. The fact that the platform is set to allow cross-border payments using a basketcoin also means that strict currency regulation measures would also have to be adhered to.

This is because such a system would be able to bypass central banks and allow bad actors to manipulate currency demand and supply to a certain extent, and no nation wants that.

Major Partners Have Left

The Libra network was announced with much fanfare last year, and major payment processors and related companies quickly jumped on the bandwagon. The excitement died down after it became clear that Facebook would control the network’s digital currency wallets dubbed Calibra.

A major exodus ensued due to a lack of clarity on how network partners would monetize the platform since transactions were free.

With major payment processing firms such as PayPal, Visa, MasterCard, eBay, Stripe, and Mercado Pago leaving the project, Libra’s reach is likely to be limited once launched.

The post Why the FB Libra Network Might Never Take Off appeared first on CoinCentral.

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Binance CEO: 95% of Crypto Projects Are Unlikely to “Pump” This Cycle

Ursprünglich erschienen auf: https://thebitcoinnews.com/binance-ceo-95-of-crypto-projects-are-unlikely-to-pump-this-cycle/

Crypto altcoins have ignored Bitcoin’s inability to rally over recent weeks. Take the chart below, which shows that BTC has strongly underperformed some of the leading cryptocurrencies since the start of June.
Bitcoin vs. altcoins (Chainlink, Cardano, Dogecoin, Ethereum) since the start of June. Chart from TradingView.com
With the recent outperformance of altcoins, a select group of traders is expecting an “altseason.” The head technical analyst at crypto research firm Blockfyre commented:
“There are people that don’t believe it’s #altseason. Look at $DOGE. Look at $BTC Dominance. 3 year trend broken + Macro LH and LL for the first time in 900+ Days. Look at retail on Robin Hood and Tik Tok. Get ready. 2017 rehash is on it’s way. More and more interest is coming.” 
An altcoin season is when altcoins across the industry rally by hundreds of percent to strong outperform Bitcoin. The last such altseason was in 2017 and 2018, when BTC dominance fell as low as ~34%.
Changpeng “CZ” Zhao — the CEO of Binance — has suggested that the sentiment that all altcoins will rally may be too optimistic. And he’s not alone in touting that opinion.
Not All Crypto Assets Will “Pump,” Binance CEO Reminds Community
Multiple cryptocurrencies are in the midst of surging dozens of percent higher as of this article’s writing. It’s a list that includes Cardano, Dogecoin, Vechain, Icon, Cosmos, 0x, and more.
Not all altcoins will share this fate, though, says Changpeng Zhao. Responding to the frothy market conditions, the industry executive said on July 7th:
“Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then… A few that have consistently pushed development will thrive.”

Not all alts will pump during the next #altszn. If a project has been around for 3 years but not much to show for, then…
A few that have consistently pushed development will thrive.#BUIDL
— CZ Binance (@cz_binance) July 8, 2020

In a reply to his original tweet, Zhao remarked that 95% of projects are unlikely to sustain a pump during this upcoming cycle.

“More like 95%, crypto or not. Same number for internet / social / or even traditional industries,” the Binance CEO added.

CZ Isn’t Alone in Thinking So
Changpeng Zhao isn’t the first prominent executive and investor to suggest that a vast majority of cryptocurrencies are unlikely to perform well.
There are many other commentators that are coming out against a majority of altcoin projects.
Jason Calacanis, an angel investor in Robinhood and Uber, recently said that he thinks 99% of crypto projects have no merit. Calacanis’ comment was in reference to his opinion that most crypto founders have no vision or experience to be doing what they are doing and thus are doomed to fail.
His comment has been echoed by Kevin Rose, who said to TechCrunch in June:
“The problem is that 99% of the projects out there and a lot of the people who are behind them are just in this for the pure financial gain. And there’s a lot of garbage out there. And that’s unfortunate because it really drags down the high-quality projects, and it muddies the space quite a bit.”
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Binance CEO: 95% of Crypto Projects Are Unlikely to “Pump” This Cycle

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Wall Street “Fear” Indicator Puts Bitcoin Under Extreme Downside Risks

Ursprünglich erschienen auf: https://thebitcoinnews.com/wall-street-fear-indicator-puts-bitcoin-under-extreme-downside-risks/

Bitcoin has rallied by more than 150 percent from its mid-March nadir, but its growing exposure to a similarly booming US stock market remains worrisome.
The cryptocurrency risks paring a portion of its recent gains as macro analysts warn about a downside move in the S&P 500 ahead.
The warning came as the Cboe Volatility Index surged 41 percent above its historical average, indicating extreme uncertainty among stock investors.

Bitcoin is at risk of losing a portion of its recent gains as a so-called stock market fear indicator explodes above its historical average.
Dubbed as VIX, the Cboe-based indicator measures the S&P 500’s 30-day forward-looking volatility. Analysts interpret VIX readings to realize investors’ fears and risk tolerance. That said, a higher VIX increases the probability of highly volatile moves, eventually amounting to a period of panic selling.
Cboe S&P 500 VIX index up about 41 percent from its normal average. Source: TradingView.com
The S&P 500 has surged steadily since March 2020, helped by giant rallies in the share prices of Tesla and Amazon. But at the same time, the benchmark index’s VIX has jumped 41 percent above its average at nearly 29, according to Cboe. It points to potential shakeups in the stock market ahead.
Bitcoin-VIX Factor
On the other hand, Bitcoin traders are closely monitoring the S&P 500 to confirm their next directional bias. It is due to the cryptocurrency’s growing monthly correlation with the Wall Street index since March 2020. Data on Skew shows that it has hit a record high in July 2020.
Bitcoin-S&P 500 Realized Correlation Chart. Source: Skew
The positive correlation robs Bitcoin off its safe-haven narrative. That said, investors would be less likely to move their capital into the cryptocurrency on the next S&P 500 correction. With VIX further indicating a bearish outlook, the fears grow higher.
A rising VIX reading further validates its command over the Bitcoin market with its long-term negative correlation with the cryptocurrency.
Bitcoin and Cboe VIX are moving in opposite directions. Source: TradingView.com
The Cboe volatility index, for instance, printed a significant peak in March 2020. At that time, the S&P 500 was down by circa 35 percent. Needless to add, Bitcoin could have surged higher as fears and uncertainty rose in the US stock market. But the cryptocurrency fell, that too by more than 60 percent.
In 2018 also, VIX printing a peak of 36.1 in December coincided with Bitcoin’s drop to $3,120, its lowest level since September 2017.
Fed Stimulus
Kristina Hooper, the chief global market strategist at Invesco, noted that fears of a higher VIX reading also reflects in the bond markets. The yield on the US 10-year Treasury bond is close to a record low of 0.67, reflecting higher demand for safe-haven assets. Gold is also up by 18 percent on a year-to-date timeframe.
Ms. Hooper added that the stock market can survive the capital shift to haven assets if the Federal Reserve decides to extend its stimulus program. Without it, the S&P risks correcting lower (taking Bitcoin down alongside).
“The need for ongoing fiscal stimulus is critical,” she told FT.
Meanwhile, concerns over the rising number of COVID cases in the US, as well as poor corporate earnings reports after mid-July, would keep the S&P 500 under pressure. As stated, Bitcoin expects to face the same harsh conditions.
Photo by Roberto Júnior on Unsplash

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